To: Cabinet Professor Steven Broomhead Chief Executive Town Hall Councillors: Sankey Street R Bowden (Chair), C Mitchell (Deputy Chair) Warrington J Guthrie, T Higgins, R Knowles, M McLaughlin, WA1 1UH H Mundry, H Patel, M Smith

Cabinet

Date: Monday, 9 September 2019 Time: 18:00 Venue: Council Chamber, Town Hall, Warrington WA1 1UH

Contact - Christine Oliver, Democratic & Member Services, Tel: 01925 442104, Email: [email protected]

Note – In line with The Openness of Local Government Bodies Regulations 2014 this meeting may be recorded. A guide to recording meetings has been produced by the Council and can be found at https://www.warrington.gov.uk/info/201104/council_committees_and_meetings/1003/access_to_council_m eetings

AGENDA

Part 1

Items during the consideration of which the meeting is expected to be open to members of the public (including the press) subject to any statutory right of exclusion.

1. Code of Conduct – Declarations of Interest Relevant Authorities (Disclosable Pecuniary Interests) Regulations 2012.

Members are reminded of their responsibility to declare any disclosable pecuniary or non-pecuniary interest which they have in any item of business on the agenda no later than when the item is reached.

2. Minutes 7 -16

Minutes of the meeting of the Cabinet meeting held on 8 July 2019. 3. Cabinet Decisions - Forward Plan 17 -26

Report of Head of Legal and Democratic Services and Monitoring Officer to the Council.

4. LGA Corporate Peer Challenge – Report and Action Plan 27 - 50

Report of the Leader of the Council, Councillor R Bowden.

5. Performance Report 2019/20 – Quarter 1 51 -74

Report of Councillor H Patel, Cabinet Member, Transformation.

6. Ofsted Inspection of Children’s Social Care Services 75 - 90

Report of Councillor M Smith, Cabinet Member, Children’s Services.

7. Budget Monitoring 2019—20 –Quarter 1 (Forward Plan No 070/18) 91 - 100

Report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources.

8. Capital Programme Monitoring 2019-20 – Quarter 1 (Forward Plan 101 - 140 No 071/18)

Report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources.

9. Risk Management and Insurance Annual Report 2018/19 (Forward 141 - 160 Plan No NKD-018/19

Report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources.

10. Green Energy Strategy (Forward Plan No 019/19) 161 - 172

Report of Councillor J Guthrie, Cabinet Member, Environment and Public Protection.

11. Local Housing Companies (Forward Plan No 067/18) 173 -180

Joint report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources and Councillor M McLaughlin, Cabinet Member, Housing, Public Health and Well-being.

12. Public Sector Social Impact Fund (PSSIF) (Forward Plan No 005/19) 181 - 186 Joint report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources and Councillor M McLaughlin, Cabinet Member, Housing, Public Health and Wellbeing.

13. Strategic Property Investment (Forward Plan No 012/19) 187 - 190

Report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources.

14. Garven Place Development (Forward Plan No 008/19) 191 - 194

Report of the Leader of the Council, Councillor R Bowden.

15. Direct Award of Contracts for the provision of day activities and 195 - 200 opportunities for adults with a learning disability (Forward Plan No 016/19)

Report of Councillor R Knowles, Cabinet Member, Statutory Health and Adult Social Care.

16. Tender for the provision of Residential Intermediate Care and 201 - 208 Accommodation (8 beds) (Forward Plan No 017/19)

Report of Councillor R Knowles, Cabinet Member, Statutory Health and Adult Social Care.

17. Energy Company Investment (Forward Plan No 020/19) 209 - 216

Joint report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources and Councillor J Guthrie, Cabinet Member, Environment and Public Protection.

Part 2

Items of a “confidential or other special nature” during which it is likely that the meeting will not be open to the public and press as there would be a disclosure of exempt information as defined in Section 100I of the Local Government Act 1972.

The following information comprises the formal notice under Paragraph 5(4) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 that a decision has been taken to hold this part of the meeting in private. Information is also provided against each item heading about the reasons for holding this part of the meeting in private, any representations received and the response to those representations. 18. Local Housing Companies (Forward Plan No 067/18)

Joint report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources and Councillor M McLaughlin, Cabinet Member, Housing, Public Health and Well-being.

Reasons for Considering in Private:

Exempt Information – Category 3, Schedule 12A, Local Government Act 1972.

Representations Received:

Nil.

Response to Representations:

Nil.

19. Public Sector Social Impact Fund (Forward Plan No 005/19)

Report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources.

Reasons for Considering in Private:

Exempt Information – Category 3, Schedule 12A, Local Government Act 1972.

Representations Received:

Nil.

Response to Representations:

Nil.

20. Strategic Property Investment (Forward Plan No 012/19)

Report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources.

Reasons for Considering in Private:

Exempt Information – Category 3, Schedule 12A, Local Government Act 1972. Representations Received:

Nil.

Response to Representations:

Nil.

21. Garven Place Development (Forward Plan No 008/19)

Report of the Leader of the Council, Councillor R Bowden.

Reasons for Considering in Private:

Exempt Information – Category 3, Schedule 12A, Local Government Act 1972.

Representations Received:

Nil.

Response to Representations:

Nil.

22. Direct Award of Contracts for the provision of day activities and opportunities for adults with a learning disability (Forward Plan No 016/19)

Report of Councillor R Knowles, Cabinet Member, Statutory Health and Adult Social Care.

Reasons for Considering in Private:

Exempt Information – Category 3, Schedule 12A, Local Government Act 1972.

Representations Received:

Nil.

Response to Representations:

Nil. 23. Tender for the provision of Residential Intermediate Care and Accommodation (8 beds) (Forward Plan No 017/19)

Report of Councillor R Knowles, Cabinet Member, Statutory Health and Adult Social Care.

Reasons for Considering in Private:

Exempt Information – Category 3, Schedule 12A, Local Government Act 1972.

Representations Received:

Nil.

Response to Representations:

Nil.

24. Energy Company Investment (Forward Plan No 020/19)

Joint report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources and Councillor J Guthrie, Cabinet Member, Environment and Public Protection.

Reasons for Considering in Private:

Exempt Information – Category 3, Schedule 12A, Local Government Act 1972.

Representations Received:

Nil.

Response to Representations:

Nil. Agenda Item 2

Minutes of the Meeting of the Cabinet – 08 July 2019

Present: Cabinet Members: Councillor:

Leader R Bowden Deputy Leader /Corporate Resources C Mitchell Children’s Services M Smith Environment and Public Protection J Guthrie Housing, Public Health and Well-being M McLaughlin Leisure and Community T Higgins Statutory Health and Adult Social Care R Knowles Transportation, Highways and Public Realm H Mundry

CAB 33 Apologies

Apologies were received from Councillor H Patel, Cabinet Member, Transformation.

CAB 34 Code of Conduct – Declaration of Interest

No Code of Conduct declarations of interest were made at this meeting.

CAB 35 Minutes

Decision: That the minutes of the meeting of the Cabinet meeting held on 10 June 2019 were received and signed as a correct record by the Leader of the Council.

CAB 36 Cabinet Decisions – Forward Plan

Cabinet considered a report of the Head of Legal and Democratic Services and Monitoring Officer to the Council on the contents of the Cabinet Decisions - Forward Plan covering the period 1 September – 31 December 2019.

Decision: The report was received and noted.

Reason for Decision – The report was submitted for information and comment.

CAB 37 Budget Monitoring 2018-19 Q4 (Forward Plan No. 062/18)

Cabinet considered a report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources which updated Cabinet on the forecast financial position for the 2018/19

Minutes issued on Thursday 11 July 2019. Call in expires midnight on Monday 15 July 2019. Decisions can be implemented from Tuesday 16 July 2019.

7 Agenda Item 2

financial year as at the end of March 2019. The report also highlighted the outcome on delivering the 2018/19 Medium Term Financial Plan (MTFP) savings targets.

Decision – That Cabinet:

(i) Noted the outturn after use of reserves and appropriations as at Quarter 4 of £0.316m overspend. (ii) Noted the progress on delivery of MTFP savings targets as at Quarter 4.

Reason for Decision –

(1) The report is a provisional outturn. After appropriations and agreed use of reserves, the outturn position for the financial year 2018/19 was an overspend of £0.316m. (2) The draft statement of accounts was signed by the Director of Corporate Services by the deadline of 31 May 2019 however, there may still be additional transactions to the accounts with final agreement with External Audit by 30 June 2019, too late for inclusion in this report. If there were any material changes from the current position these would be reported to Cabinet in September 2019. (3) It is important for Members to have a detailed view of the current budget position, and pressures to enable Members to play a full part in the decision making process and the implications that it brings, to ensure that the Council continues to deliver a balanced budget.

CAB 38 Capital Programme 2018-19 Outturn (Forward Plan No 063/18)

Cabinet considered a report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources which updated Cabinet on the 2018/19 outturn position for the Council’s Capital Programme and sought approval for new schemes to be added to the programme and provided updates on major schemes.

Decision – That Cabinet:

(i) Noted the report. (ii) Approved a five year extension to the £50m loan contract with the Council that expires in September 2019. (iii) Endorsed the schemes approved by the Deputy Chief Executive & Director of Corporate Services and Chief Executive under delegated powers (section 15). (iv) Agreed new schemes to be added to the capital programme contained within section 16 of this report and the associated borrowing costs.

Minutes issued on Thursday 11 July 2019. Call in expires midnight on Monday 15 July 2019. Decisions can be implemented from Tuesday 16 July 2019.

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Reason for Decision - To ensure that key information on the Capital Programme is noted by Cabinet.

CAB 39 Pre-Budget Outlook Report

Cabinet considered a report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources which –

(1) Presented Cabinet with the estimated level of budget savings required to balance the budget over the four year period 2020/21 to 2023/24 and the assumptions used to estimate Warrington Borough Council’s financial position over this period. (2) Noted additional challenges the Council was likely to face in setting the 2020/21 budget. (3) Highlighted Warrington’s funding position in relation to other authorities, particularly in relation to the level of Council Tax income received and the low levels of government funding.

Decision – That the Cabinet noted the present position on the delivery of a balanced budget over the four year period 2020/21 to 2023/24.

Reason for Decision - It is important for Cabinet to have a detailed view of the budget position and pressures to enable Members to play a full part in the decision making process and the implications that it brings, to ensure that the Council continues to deliver a balanced budget.

CAB 40 Change of Procurement Process to a Dynamic Purchasing System for the purchase of Speciality Community Equipment – (Forward Plan No 001/19)

Cabinet considered a report of Councillor R Knowles, Cabinet Member, Statutory Health and Adult Social Care which

(1) Advised of the change in procurement for the purpose of specialist community equipment. (2) Requested authority to use a Dynamic Purchasing System (DPS) as this procurement process was not covered by current Contract Procedure Rules (for the purpose of competition).

Decision – That the Cabinet: (i) Approved a change to a procurement whereby a Dynamic Purchasing System was commenced for the purchase of Specialist Community Equipment to ensure cost effective and quality specialist community equipment. (ii) Approved entering into contracts procured under the Dynamic Purchasing System which have a value greater than £250k without prior Cabinet approval.

Reason for Decision –

Minutes issued on Thursday 11 July 2019. Call in expires midnight on Monday 15 July 2019. Decisions can be implemented from Tuesday 16 July 2019.

9 Agenda Item 2

(1) A DPS is a wholly electronic procurement system which unlike a framework allows new suppliers including local and SMEs to enter the process at any point. (2) A DPS, unlike a framework, for the purchase of specialist community equipment will ensure the Council has access to any new equipment that becomes available to the market. (3) Establishment of a DPS requires will enable the Council to obtain the goods from a wide range of suppliers at the best possible cost. It will reduce the administration burden on staff and ensure the latest products are available in a timely manner.

CAB 41 Warrington Western Link Project Update and pre-construction funding (Forward Plan No 002/19)

CAB 45 Refers.

CAB 42 Loan to Cheshire and Warrington Local Enterprise Partnership for Enterprise Zone Investments (Forward Plan No 003/19)

CAB 46 Refers.

CAB 43 Regeneration Acquisition (Forward Plan No 061/18)

CAB 47 Refers.

CAB 44 Exclusion of the Public (including the press)

Decision: That members of the public (including the press) be excluded from the meeting by reason of the confidential nature of the following items of business to be transacted being within category 3 of Schedule 12A Local Government Act 1972 (Rule 10 of the Access to Information Procedure Rules) and the public interest in disclosing the information is outweighed by the need to keep the information confidential.

CAB 45 Warrington Western Link Project Update and pre-construction funding (Forward Plan No 002/19)

Cabinet considered a report of Councillor H Mundry, Cabinet Member, Transportation, Highways and Public Realm which updated the Cabinet on progress made in the development of the Warrington Western Link (“Western Link”) scheme. Following the decision of the Cabinet, then known as Executive Board in November 2017 (Decision Reference Number EB99), an Outline Business Case was submitted to the Department for Transport in December 2017. Subsequently, on 10 April 2019, the Council received confirmation that Ministers had agreed to confirm ‘Programme Entry’ for the Western Link into its Large Local Major Schemes Programme, with a grant award of up to £142.5m towards the estimated scheme cost of £212.7m.

Minutes issued on Thursday 11 July 2019. Call in expires midnight on Monday 15 July 2019. Decisions can be implemented from Tuesday 16 July 2019.

10 Agenda Item 2

The report also sought

(1) Approval for the Council to accept the Terms and Conditions of the receipt of this funding. (2) Approval to progress with the development of the final Major Scheme Business Case, which would be required in order to secure Full Approval from the Department for Transport to allow the scheme to be constructed. (3) Approval to underwrite the Council’s contribution for funding required to undertake all of the work required to secure Full Approval for the scheme. (4) Approval to continue discussions (prior to the Full Approval of the Full Business Case for the Western Link) with those properties ‘on-line’ of the proposed Western Link route, regarding the advance acquisition of those properties along with the capital funding required to support the acquisitions. Any properties acquired would be required to meet the statutory criteria for acquisition and be in accordance with an agreed Land Cost Estimate. (5) Approval to the principle of using powers of compulsory purchase, to be used as necessary in parallel with negotiations for private acquisition in order to bring forward the timely delivery of the Western Link, subject to a future Cabinet report seeking full resolution. (6) Approval to award and enter a number of contracts with external advisers, consultants and contractors all of which are integral to the further scheme development work required to secure Full Approval for the Western Link.

Cllr H Mundry referred to section 10.2 of the report and stated that the council was to underwrite a local contribution of some £70.24m towards the estimated cost of the scheme of £212.7m. It was important to note that the council would be looking to secure as much of this contribution as possible from developments which were enabled by the scheme. These developments include those contained within the Draft Local Plan, which had recently been consulted upon, and included Warrington Waterfront and the South West Urban Extension which were proposed for a mixture of housing and employment uses.

Decision – That Cabinet: (i) Approved the Council’s contribution of £16.85m towards the estimated total costs of £38.41m of the next stage of scheme development, noting the funding risks as set out in respect to the scheme not securing Full Approval and proceeding to the construction stage. (ii) Approved the allocation in the Council’s capital programme of a total of £70.24m to be profiled across the delivery life of the scheme and required as the match contribution to the Department for Transport’s grant funding award.

Minutes issued on Thursday 11 July 2019. Call in expires midnight on Monday 15 July 2019. Decisions can be implemented from Tuesday 16 July 2019.

11 Agenda Item 2

(iii) Approved and accepted the offer of Programme Entry made by the Department for Transport and accepted the terms and conditions associated with the offer of a maximum £142.5m contribution towards the funding required to deliver the scheme in full and noted that this is subject to the granting of Full Approval for the scheme, which will only be granted following the approval of a Final Major Scheme Business Case, and the securing of all of the statutory powers as per the grant award letter contained in Appendix B of the Part 1 report. (iv) Re-confirmed that as set out in the report to the Executive Board in November 2017 the primary route to secure all outstanding land interests will be via the use the Council’s Highways Compulsory Purchase Order powers. However, negotiations will commence and continue with the land owners concerned to ensure that the project can progress to programme and the associated costs of a contested CPO are minimised. (v) Approved the negotiated acquisition of all necessary legal interests required to implement the Western Link project within the scope of the total cost (worst case scenario) as detailed in the Land Cost Estimate shown in Appendix B and contained within Part 2 of this report. That the associated terms and conditions of acquisition (including the financial terms with a tolerance of 10% of the land cost estimate or £100,000 (whichever is the greater) be determined by the Directors of Growth and Environment and Transport in consultation with the Cabinet Member, Transportation, Highways and Public Realm, the Director of Corporate Services and Head of Legal and Democratic Services and Monitoring Officer to the Council. (vi) Noted the progress to date as set out in the Part 2 report in respect to acquiring property via the Blight process and re-affirms the Council’s position in respect to only considering statutory blight claims. (vii) Granted delegated authority to the Director, Environment and Transport, following consultation with the Cabinet Member, Transportation, Highways and Public Realm, the Director of Corporate Services and Head of Legal and Democratic Services and Monitoring Officer to the Council to authorise the award and entry in to all necessary Agreements with Balfour Beatty relevant to the delivery of the element of the project as set out in section 9 of the corresponding Part 1 report, up to a capped value of £8.54m. (viii) Granted delegated authority to the Director, Environment and Transport in consultation with the Cabinet Member, Transportation, Highways and Public Realm, the Director of Corporate Services and Head of Legal and Democratic Services and Monitoring Officer to the Council to authorise the award and entry in to all necessary Agreements with Mott McDonald and other named consultants relevant to the delivery of the element of the project as set out in section 7 of the Part 2 report, up to a capped value of £1.36m. (ix) Granted delegated authority to the Director, Environment and Transport in consultation with the Cabinet Member, Transportation, Highways and Public Realm, the Director of Corporate Services and Head of Legal and Democratic Services and Monitoring Officer to the Council to authorise the award and enter in to contracts relevant to the delivery of the Advance Works as set out in section 8 of this report, up to a capped value of £6.20m.

Minutes issued on Thursday 11 July 2019. Call in expires midnight on Monday 15 July 2019. Decisions can be implemented from Tuesday 16 July 2019.

12 Agenda Item 2

(x) Granted delegated authority to the Director, Environment and Transport in consultation with the Cabinet Member, Highways, Transportation and Public Realm, the Director of Corporate Services and Head of Legal and Democratic Services and Monitoring Officer to the Council to authorise the award and entry in to all necessary Agreements with Network Rail relevant to the delivery of the element of the project as set out in section 9 of the corresponding Part 1 report, up to a capped value of £2.535m. (xi) Granted delegated authority to the Head of Legal and Democratic Services and Monitoring Officer to the Council in consultation with the Director of Corporate Services and Director of Environment and Transport, to enter in to all necessary Agreements with various other external transport, engineering, legal and property expertise as is needed to successfully deliver this stage of the project and within the overall budget envelope set out. (xii) Approved the retention of a total of £ 4.00m of risk funding within the project budget, as a Warrington Borough Council contingency to cater for changes and unforeseen events encountered whilst undertaking the pre -construction phase. The drawdown of this risk funding to be delegated to the Western Link Programme Board to authorise.

Reason for Decision – (1) The ‘Western Link’ will tackle critical congestion points on the Warrington highway network by providing resilience and route choice, including mitigation of those traffic congestion issues caused by bridge swings associated with the Manchester Ship Canal. It will maintain the strong economic status of the borough and provide the capacity for growth. (2) The project will support the core elements of the Local Plan including delivery of residential and employment areas, whilst complementing other town centre highways, transportation and regeneration projects. (3) This project is the second and most ambitious step in the development of the overall Waterfront programme and indicates to our partners that the Council is capable of delivering strategic infrastructure aligned to the overall development of Warrington. (4) To meet and de-risk the current programme for the delivery of the Western Link project it is necessary to progress and have agreements in place to secure the acquisition of all necessary land and property interests at the earliest opportunity. (5) Contract Procedure Rule CR60 requires Cabinet to approve tenders greater than £250,000. The values associated with the various levels of funding, agreements and contract awards for which approval is sought is above this figure.

CAB 46 Loan to Cheshire and Warrington Local Enterprise Partnership for Enterprise Zone Investments (Forward Plan No 003/19)

Cabinet considered a report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources which sought Cabinet approval for the Council to enter into a loan facility with the Cheshire & Warrington Local Enterprise Partnership (LEP) whereby the Council, along

Minutes issued on Thursday 11 July 2019. Call in expires midnight on Monday 15 July 2019. Decisions can be implemented from Tuesday 16 July 2019.

13 Agenda Item 2

with Cheshire West and Chester and Cheshire East Councils, for £10m each, to fund development with the Warrington Enterprise Zone (EZ) to drive Business Rates increases.

Decision – That Cabinet: (i) Approved the Council entering into a £10 million facility with the Cheshire and Warrington Local Enterprise Partnership (LEP). (ii) Delegated to the Director of Corporate Services and the Head of Legal & Democratic Services, following consultation with the Deputy Leader and Cabinet Member, Corporate Resources the preparation, negotiation and completion of the legal agreement between the Council and the LEP in respect of the loan. (iii) Delegated to the Director of Corporate Services and the Head of Legal & Democratic Services the completion of all ancillary legal documents required to give effect to the loan. (iv) Delegated to the Director of Corporate Services and the Head of Legal & Democratic Services the preparation, negotiation and completion of all ancillary legal documents required to give effect to the loan. (v) Approved the scheme be added to the Capital Programme to be funded from Prudential Borrowing.

Reason for Decision – To provide funding for the LEP to develop Enterprise Zones and grow Business Rate bases within the EZ, and to receive interest on the loan.

CAB 47 Regeneration Acquisition (Forward Plan No 061/18)

Cabinet considered a report of Councillor C Mitchell, Deputy Leader and Cabinet Member, Corporate Resources which informed Cabinet:

(1) Of the opportunity to acquire a property in Warrington and to seek approval to acquire the property for regeneration purposes to support the objectives of the Council as outlined in the Warrington Local Plan, in the Warrington Means Business economic growth & regeneration programme and the Town Centre Masterplan. (2) That the acquisition and control of this site was potentially the first part of land assembly for the successful delivery of the southern phase of the Southern Gateway regeneration area of the Town Centre – a stated priority within the above strategies. Without the acquisition of this site, the ability to delivery this phase of the Southern Gateway will be compromised.

Decision – That Cabinet: (i) Approved the principle of acquisition of the property. (ii) Approved the purchase be funded from prudential borrowing and make provision in the Capital Programme to fund the acquisition at a total cost (inclusive of purchase price, professional fees and SDLT) of £7.475million.

Minutes issued on Thursday 11 July 2019. Call in expires midnight on Monday 15 July 2019. Decisions can be implemented from Tuesday 16 July 2019.

14 Agenda Item 2

(iii) Delegated to the Director of Growth, following consultation with the Monitoring Officer, Deputy Chief Executive & Director of Corporate Services and the Deputy Leader and Cabinet Member, Corporate Resources, responsibility for the final acquisition terms, based on the principles and costs set out in section 11 of the Part 2 report. (iv) Authorised the Monitoring Officer to enter into the contract and finalise any related documents to complete the transaction in accordance with the above.

Reason for Decision – (1) That Cabinet proceed with an acquisition of the property for the following reasons: • To bring another Warrington property asset into Council ownership and open opportunity for future regeneration • To enhance the Council’s position as a major land owner with the ability to influence the growth of the future development of the town • The Council is seen to be acting proactively and taking leadership, investing in the town to promote economic development (2) That the decision to proceed was based on satisfactory outcomes in respect of all the due diligence work, specifically the results of survey, valuation, financial and legal due diligence. (3) That, for this reason, responsibility for deciding whether or not to proceed with the acquisition was to be delegated to the Director of Growth, following consultation with the Monitoring Officer, Deputy Chief Executive & Director of Corporate Services and the Deputy Leader and Cabinet Member, Corporate Resources, together with responsibility for deciding the final acquisition terms in the event that the acquisition is to proceed.

Signed……………………………………

Dated……………………………………..

Minutes issued on Thursday 11 July 2019. Call in expires midnight on Monday 15 July 2019. Decisions can be implemented from Tuesday 16 July 2019.

15 Agenda Item 2

Minutes issued on Thursday 11 July 2019. Call in expires midnight on Monday 15 July 2019. Decisions can be implemented from Tuesday 16 July 2019.

16 Agenda Item 3

WARRINGTON BOROUGH COUNCIL

CABINET – 9 September 2019

Report of: Head of Legal and Democratic Services and Monitoring Officer to the Council

Executive Director: Steven Broomhead, Chief Executive

Senior Responsible Sharon Parker, Democratic Services Manager (Statutory Scrutiny Officer: Officer)

Contact Details: Email Address: Telephone: [email protected] 01925 442120

Key Decision No. N/A

Ward Members: All

TITLE OF REPORT: CABINET DECISIONS - FORWARD PLAN

1. PURPOSE

1.1 To consider the current Cabinet Decisions Forward Plan covering the period 1 October 2019 – 31 January 2019.

2. CONFIDENTIAL OR EXEMPT

2.1 The report is not confidential or exempt.

3. INTRODUCTION AND BACKGROUND

3.1 Key Decisions are cabinet decisions of the authority which are decisions of the Cabinet or an Officer under delegated powers which are likely to –

• Result in Warrington Borough Council incurring expenditure, making savings or vireing £250,000 or more having regard to the Local Authority budget for the service or functions to which the decision relates, or

• Be significant in terms of its effects on communities living or working within Warrington Borough Council’s area comprising two or more Wards.

3.2 To comply with the legislation 'Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012', the Council is required –

17 Agenda Item 3

(1) to give 28 days’ notice of key decisions.

(2) to publish a notice of its intention to discuss confidential or exempt items at least 28 days in advance of the meeting; and

(3) to publish a further notice at least five clear days’ before a private meeting which must include a statement of the reasons for the meeting to be held in private, details of any representations received and a statement of its response to any such representations.

4. THE REPORT

4.1 The current Cabinet Decisions - Forward Plan is attached at Appendix A.

4.2 The following amendments/changes to the Forward Plan are reported for information:

NEW ITEMS – 9 September 2019 012/19 Property Investment 013/19 Bus Depot Relocation 014/19 Time Square Development 015/19 Property Investment 016/19 Day Opportunities for clients with a learning disability. 017/19 Residential Intermediate Care and Accommodation Contract. NKD-018/19 Risk Management and Insurance Annual Report 2018-19. 019/19 Energy Strategy. 020/19 Energy Company Investment UPDATES – 9 September 2019 072/18 Warrington Means Business – Enabling Business Growth – item removed from the forward plan. REASON: Item deleted because the proposed acquisition now falls under the threshold required for Cabinet approval therefore it will now be designated as an Officer decision notice. 065/18 Warrington Means Business – item moved from 9 September to 14 October 2019 Cabinet meeting. REASON: item deferred to enable this item to run in alignment with the Local Plan Programme. 066/18 Town Centre Masterplan - item moved from 9 September to 14 October 2019 Cabinet meeting. REASON: item deferred to enable this item to run in alignment with the Local Plan Programme. 004/19 Property Investment – item moved from 9 September to 14 October 2019 Cabinet meeting. REASON: item deferred to enable further due diligence to be carried out. 006/19 Property Investment – item removed from the forward plan.

18 Agenda Item 3

REASON: Item deleted because the property investment no longer available. 007/19 Property Investment - item removed from the forward plan. REASON: Item deleted because the property investment no longer available. 013/19 Bus Depot Relocation – item moved from 9 September to 14 October 2019 Cabinet meeting. REASON: item deferred to enable co-ordination with the Council’s Capital Investment Planning Group (CIPG) programme. 014/19 Time Square Development – item moved from 9 September to 14 October 2019 Cabinet meeting. REASON: item deferred to allow for additional time for commercial negotiation. 015/19 Property Investment – item moved from 9 September to 14 October 2019 Cabinet meeting. REASON: item deferred to enable further due diligence to be carried out. NEW ITEMS – 14 October 2019 009/19 Risley Moss Observation Tower – Construction Contract Award UPDATES – 14 October 2019 004/19 Property Investment – item removed from the forward plan. REASON: item deleted because the property investment is no longer of commercial interest. 015/19 Property Investment – item removed from the forward plan. REASON: item deleted because the property investment is no longer of commercial interest. NEW ITEMS – 9 December 2019 010/19 Budget Monitoring 2019-20 –Quarter 2 011/19 Capital Programme Monitoring 2019-20 – Quarter 2 Information Performance Report 2019/20 Quarter 2 Item Information Strategic Risk Environment at Quarter 2 2019-20 Item

5. FINANCIAL CONSIDERATIONS

5.1 None.

6. RISK ASSESSMENT

6.1 N/A.

7. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

7.1 There are no specific equalities issues in relation to the content of this report.

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8. CONSULTATION

8.1 N/A.

9. REASONS FOR RECOMMENDATION

9.1 The report is submitted for information and comment.

10. RECOMMENDATION

10.1 That the Cabinet receives the contents of the Cabinet Decisions - Forward Plan and make comments as appropriate.

11. BACKGROUND PAPERS

Papers held within Democratic and Member Services about items for inclusion and changes to the Forward Plan.

Contact for Background Papers:

Name E-mail Telephone Christine Oliver [email protected] 01925 442104

20 Agenda Item 3

Updated 30 August 2019

CABINET DECISIONS – FORWARD PLAN

1 October 2019 – 31 January 2020

Report of the Head of Legal & Democratic Services and Monitoring Officer to the Council

This is formal notice under the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 of Key Decisions due to be taken by the Authority and that those parts of the Cabinet meeting identified in this Forward Plan will be held in private because the agenda and reports for the meeting will contain confidential or exempt information as defined in the Regulations.

Contact Information: Democratic & Member Services Town Hall Warrington WA1 1UH Email: [email protected] Tel: 01925 442104

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What is the Forward Plan? The Forward Plan contains all the key decisions the Council expects to take over the next four months. It will be refreshed regularly and will give at least 28 days’ notice of any Key Decisions and, if applicable, the Cabinet’s intention to discuss an item in private and the reason for this.

What is a Key Decision? Key Decisions are Executive decisions of the authority which are decisions of the Cabinet or an Officer under delegated powers which are likely to – • Result in Warrington Borough Council incurring expenditure or the making of savings of £250,000 or more, having regard to the Local Authority budget for the service or function to which the decision relates, or • Be significant in terms of its effects on communities living or working within Warrington Borough Council’s area comprising two or more Wards.

For information, the Forward Plan also includes some other matters expected to come before the Cabinet or that the Cabinet is likely to recommend to full Council whether or not they may give rise to Key Decisions.

What does the Forward Plan tell me? The Plan gives information about: • what key decisions are to be made in the next four months; • the matter in respect of which the decision is to be made; • who will make the key decisions; • when those key decisions are likely to be made; • what documents will be considered; • who you can contact for further information.

Who takes Key Decisions? Under the Authority’s Constitution, Key Decisions are taken by the Cabinet or individual officers acting under delegated powers.

Most Key Decisions are taken at public meetings of the Cabinet. Cabinet meets once a month on a Monday at 6.30 pm (except August) at the Town Hall, Warrington.

Further Information and Representations about items proposed to be heard in Private Names of contact officers are included in the Plan and can be reached via (01925) 442104. If you are unsure, please contact Democratic & Member Services on the same number and staff there will be able to assist you. If you wish to make representations about an item proposed to be heard in private, you should contact Democratic and Member Services by no later than six clear working days before the meeting.

The areas of responsibility of the nine members of the Cabinet are:

Councillor R Bowden Leader Councillor C Mitchell Deputy Leader / Corporate resources Councillor J Guthrie Environment and Public Protection Councillor T Higgins Leisure and Community Councillor R Knowles Statutory Health and Adult Social Care Councillor M McLaughlin Housing, Public Health and Well-being Councillor H Mundry Transportation, Highways and Public Realm Councillor H Patel Transformation Councillor M Smith Children’s Services

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Last forward plan entry No. 020/19 If you have any questions about any of the items listed please contact Christine Oliver on 01925 442104.

Decision Date added to Item £s to be spent/saved Statement of Reason why the Wards Affected Lead Cabinet List of Policy/Reference Directorate and Key Reference the Forward Plan /vired item of business is private Member Documents Contact for Further Decision Number Information (Y/N) Key Decisions – 14 October 2019 065/18 30/04/2019 Warrington Means Business >£250k N/A All *Cabinet (see above) Growth Yes Councillor R Bowden Steve Park Leader Tel: 01925 443940 [email protected]. uk 066/18 30/04/2019 Town Centre Masterplan >£250k N/A All *Cabinet (see above) Growth Yes Councillor R Bowden Steve Park Leader Tel: 01925 443940 [email protected]. uk 009/19 09/07/19 Risley Moss Observation Tower – >£250k *Part 2 confidential (see note Birchwood *Cabinet (see above) Environment and Yes Construction Contract Award below) Councillor R Bowden Transport Leader Tom Shuttleworth Tel: 01925 442353 013/19 11/07/19 Bus Depot Relocation >£250k *Part 2 confidential (see note *Cabinet (see above) Growth Yes below) Councillor C Mitchell John Laverick Deputy Tel: 01925 444096 Leader/Corporate jlaverick@warringtonan Resources dco.com 014/19 11/07/19 Time Square Development >£250k *Part 2 confidential (see note *Cabinet (see above) Growth Yes below) Councillor R Bowden John Laverick Leader Tel: 01925 444096 jlaverick@warringtonan dco.com Non Key Decisions – 14 October 2019 Nil.

Information Items – 14 October 2019 Nil

Key Decisions – 11 November 2019

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Nil

Non Key Decisions – 11 November 2019 Nil.

Information Items – 11 November 2019 Nil

Key Decisions – 9 December 2019 010/19 13/05/19 Budget Monitoring 2019/20 – N/A All *Cabinet (see above) Corporate Services Yes Quarter 2 Councillor C Mitchell Lynton Green Deputy Tel: 01925 443925 Leader/Corporate [email protected]. Resources uk 011/19 13/05/19 Capital Programme Monitoring N/A All *Cabinet (see above) Corporate Services Yes 2019/20 – Quarter 2 Councillor C Mitchell Lynton Green Deputy Tel: 01925 443925 Leader/Corporate [email protected]. Resources uk

Non Key Decisions – 9 December 2019 Nil.

Information Items – 9 December 2019 Performance Report 2019/20 N/A All *Cabinet (see above) Corporate Service No Quarter 2 Councillor H Patel Gareth Hopkins Transformation Tel: 01925 443932 Ghopkins1@warrington. gov.uk Strategic Risk Environment at N/A All *Cabinet (see above) Corporate Services No Quarter 2 2019-20 Councillor H Patel Jean Gleave Transformation Tel: 01925 442354 Jean.gleave@warringto n.gov.uk Key Decisions – 13 January 2020 Nil

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Non Key Decisions – 13 January 2020 Nil.

Information Items – 13 January 2020 Nil

*Note: Part 2 confidential Exempt Information – Schedule 12A, Local Government Act 1972: It is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during that item, confidential information would be disclosed to them in breach of the obligation of confidence

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26 Agenda Item 4 WARRINGTON BOROUGH COUNCIL

CABINET – 9 September 2019

Report of Cabinet Leader of the Council, Councillor R Bowden Board Member:

Chief Executive: Professor Steven Broomhead, Chief Executive Director: Lynton Green, Director of Corporate Services/Deputy Chief Executive

Senior Responsible Gareth Hopkins, Assistant Director – Customer and Business Officer: Transformation

Contact Details: Email Address: Telephone: [email protected] 01925 443932

Key Decision N/A

Ward Members: All

TITLE OF REPORT: LGA CORPORATE PEER CHALLENGE – REPORT AND ACTION PLAN

1. PURPOSE

1.1 This report presents Cabinet with the report from the LGA Corporate Peer Challenge which took place between in March 2019. The Peer Team was made up of senior officers and from other councils along with a Peer Elected Member. Following a week of intensive work the Peer Team provided feedback on their findings on Friday 29 March 2019, making nine key recommendations.

2. CONFIDENTIAL OR EXEMPT

2.1 The report is not confidential or exempt.

3. ABOUT THE CORPORATE PEER CHALLENGE

3.1 Corporate Peer Challenge is not an inspection. Warrington Borough Council invited the LGA to carry out the Peer Challenge, recognising that they are improvement focused and tailored to meet individual Council’s needs.

3.2 The LGA Peer Team were on site from Tuesday 26 March 2019 to Friday 29 March 2019. In completing their work they met with over 90 people through more than 35 meetings

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and completed additional research and reading totalling more than 260 hours to determine their findings.

3.3 The standard LGA Corporate Peer Challenge is based around five key components which are considered to be critical to a council’s performance and improvement.

• Understanding of the local place and priority setting: Does the council understand its local context and place and use that to inform a clear vision and set of priorities? • Leadership of Place: Does the council provide effective leadership of place through its elected members, officers and constructive relationships and partnerships with external stakeholders? • Organisational leadership and governance: Is there effective political and managerial leadership supported by good governance and decision-making arrangements that respond to key challenges and enable change and transformation to be implemented? • Financial planning and viability: Does the council have a financial plan in place to ensure long term viability and is there evidence that it is being implemented successfully? • Capacity to deliver: Is organisational capacity aligned with priorities and does the council influence, enable and leverage external capacity to focus on agreed outcomes?

3.4 The Council also specifically asked the peer team to consider/review/provide feedback on the Council’s governance arrangements, corporate capacity and financial resilience.

3.5 The report produced by the Peer Challenge Team, along with the council’s improvement action plan created in response, was published on the Council’s web-site in August, and is included with this report. As well as the report highlighting a number of the Council’s strengths, and noting that good and significant progress is being made, nine key recommendations were made for further improvements which should be implemented to further embed the council’s positive work.

4. FINANCIAL CONSIDERATIONS

4.1 There was no additional cost to the Council for the delivery of the Peer Review, which is included as a service as part of membership of the LGA.

5. RISK ASSESSMENT

5.1 The council’s risk management arrangements are embedded and working well within the Directorates and a separate report on strategic risks is provided to Cabinet on a six monthly basis, which align with a number of the areas highlighted within this report.

6. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

6.1 Not relevant.

7. CONSULTATION

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7.1 A wide range of key stakeholders and partners were included and met with as a significant element of the review.

7.2 The report and improvement plant will be discussed with our partners including our Trade Union colleagues as well as considered as part of the Organisational Improvement and Development policy committee’s work programme for 2019/20.

8. REASONS FOR RECOMMENDATIONS

8.1 The delivery of the LGA Peer Review has been an important contribution to ensuring the council continues to reflect and improve upon its performance, and to ensuring we continue to deliver good services. The creation, delivery and monitoring of its improvement action plan by Cabinet is an important part of that process.

9. RECOMMENDATION

9.1 Cabinet is recommended to:

(i) Note the LGA Corporate Peer Challenge report and its key recommendations.

(ii) Endorse the LGA Peer Challenge Action Plan which has been created in response to the report’s findings and recommendations.

(iii) Agree that progress in delivering the Action Plan is incorporated into the quarterly corporate performance management reports it receives.

10. BACKGROUND PAPERS

N/A.

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Corporate Peer Challenge

Warrington Borough Council

26 th – 29th March 2019

Feedback Report

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1. Executive Summary

Warrington is a distinctive borough in the North West and is home to 210,000 residents. Over a number of years Warrington has been known for strong economic growth built on high skill levels and good transport links to the rest of the North West. The Council has played a key role in driving forward local economic growth including the ongoing regeneration of the town centre. One example of particularly innovative practice is the approach taken in forming ‘Warrington and Co.’ which is the Council’s development and regeneration arm. It has been successful in repositioning the Council in its relationship with local businesses.

Since 2010 government funding to the Council has reduced by £137m and in recent years the Council has applied a commercial mindset in response. The Council has had success in generating substantial returns on investment, which have been reinvested into local frontline services. In 2019/20, the Council’s Medium Term Financial Plan (MTFP) forecasts that income of £20.5m will be received as a result of the Council’s commercial efforts. The Council’s commercialisation achievements are well known and they have shared their learning from this with others in the Local Government sector.

Whilst the Council’s additional commercial income has limited some of the effects of reduced public funding and increased demand, it has not been enough to protect the Council completely from the need for savings and efficiencies. Like most councils, significant year-on-year savings have also been a focus of each annual budget. In recent years however the Council has consistently overspent against the budget, often having to make up shortfalls through a combination of further additional income, financial changes or the use of one-off reserves. This has led to some budget pressures being carried forward into future years and a reduction in earmarked reserves. At quarter three, general fund and MTFP reserves sat at £6m (combined) with general fund reserves reported at around 3.5% of the 18/19 net revenue budget. Whilst the amount held in the general fund reserve has remained fairly static in recent years, the MTFP reserve is expected to reduce significantly by the end of the 18/19 financial year and further-still in 2019/20.

In recent years the Council has also taken a number of decisions which have provided one off savings, with spending pressures then returning in future years. This has on occasion been in place of some of the more difficult decisions which have been taken by councils elsewhere and have delivered ongoing efficiencies or savings.

While the Council is aware of the risk of continued overspend against the revenue budget and the wider consequences this can have for financial sustainability, it is the clear view of the peer team that the budget approach taken to date should be redesigned to ensure the Council is able to deliver services from a more sustainable financial footing. This should result in a new process that is fully understood, owned and delivered by all. This will need to be driven by the political and managerial leadership. This new approach will require collective responsibility to make this happen, but with clear accountability and consistent, robust challenge.

The Council is working hard to avoid a situation where it continues to overspend against its revenue budget and eat further into its relatively low levels of reserves. Whilst doing this, the Council should review the measures that can be taken in the immediate term to reduce

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short term pressures on net revenue expenditure. The Council should also continue to review any risks to the delivery of the MTFP and address these appropriately. These include but are not limited to delivery of savings, commercial income and the methods by which Minimum Revenue Provision (MRP) is accounted for. In the case of MRP specifically the Council should look to ensure that the risks are fully understood by all and are clearly articulated when informing decision making.

With a new Leader being appointed in the months leading up to the peer challenge, there is an opportunity now for the leadership to communicate a new political vision for the Council which has both the budget challenge and modernisation at its core. Officers will need to turn this vision into a clear strategy with meaningful priorities, milestones and measures to ensure it is delivered.

Good, open working relationships between members of all parties in Warrington were observed. This is a real asset which will help when meeting the financial challenge. An example of this is in how members appear to work together on the local Treasury Management Board.

Members across the Council hold senior officers in high regard and demonstrate respect and trust towards them. This respect is reciprocated back to members by officers. This is important and is an asset to now build on by refreshing the distinctly different roles of members and officers in Warrington. In refreshing the relationship it is important to consider the significance of increased challenge that members can bring to decision making and delivery. All officers, in all councils regardless of their experience and knowledge require an appropriate level of checks and balances that members can bring. Members of the Executive may now also wish to replicate the forward thinking leadership that has been applied in commercial investments to the wider set of Council services. There is an opportunity for members of the Executive to take a clear ownership of this as well as the financial and service performance of their portfolios.

An enhanced member development programme will be beneficial in helping members of the Executive in these refreshed roles. This member development programme should vary depending on roles but is not limited to the Executive and will require the involvement of all members. Whilst this is up to members locally to decide, this might include decision making, member/officer roles and relationships, performance, commercial, financial management and scrutiny.

In supporting members to hold the Executive to account, a review of scrutiny and the structures around it should take place to ensure that Overview and Scrutiny is fit for purpose. The Council may also wish to consider the parts of the governance system that could benefit from independent involvement, given the complexity of commercial investment in Warrington (the Audit and Governance Committee may be one example of this).

Such is the pace of commercial income growth in Warrington and the complexity that comes with it, the team believe that the Council should seriously consider commissioning an independent review of its approach to risk management and commercial decision making. This is to ensure that all members and officers have ongoing and informed, assurance in place in light of the growth of this work.

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Whilst the Council has been delivering significant growth of commercial investments, senior managers with responsibilities outside of this immediate field have been able to take a focussed approach to their own, specific service areas. However, the challenge of dealing with the financial pressures now being faced will require transformation and modernisation that goes across service areas, therefore requiring increased shared ownership. This will mean a change from a siloed approach towards collective strategic ownership of the key corporate priorities. The senior officer cohort has an essential, leading role in making this happen.

To deliver on a new political vision for the Council which is linked significantly to the pressing budget position and the wishes to modernise, consideration needs also to be given to how this can be achieved and the culture and structures required to make this happen. A ‘one council’ approach is required to deliver the scale of sustainable transformation required. One example is how the Council deploys the skills and expertise it has available to it. The Council has the potential to be innovative by looking at how this commercial skillset could be utilised more widely to support transformation in wider service areas. This is not necessarily to make an additional, immediate income return, but to help deal with some of the issues like demand reduction, cost reduction and alternative service delivery models (to name but a few). It is additionally about bringing different experiences together to broaden skillsets and develop the overall collective understanding of the whole Council’s business.

Another opportunity for the Council is how the gathering pace of digital transformation can be embraced more broadly across the organisation, building on the early successes demonstrated in making up ground with councils elsewhere. The Council is well placed to use digital in tandem with the opportunity presented by the majority of staff moving to new office space to bring the workforce more closely together under a ‘one council approach’. The visibility of senior members and officers throughout this transformation will continue to be important.

The frontline staff, middle managers and partners met by the peer team in Warrington demonstrated a strong public service commitment to “doing the right thing”, a real pride in Warrington ‘the place’ as well as the Council’s achievements. The budget position is now clearly pressing in Warrington but with a new political vision for the Council which has the budget challenge and modernisation at its core, the Council can meet this challenge by taking clear and decisive action now and owning it as ‘one council’.

2. Key recommendations

There are a range of suggestions and observations within the main section of the report that will inform some ‘quick wins’ and practical actions, in addition to the conversations onsite, many of which provided ideas and examples of practice from other organisations. The following are the peer team’s key recommendations to the Council:

1) Communicate to all a new political vision for the Council which is relevant to the challenges and opportunities facing the Council. This should then be translated into a clear strategy with specific priorities, measures and milestones. This needs to be collectively owned with suitable monitoring and 3

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accountability to ensure it is delivered at pace where needed. The priorities and actions will need to be reflected in all service plans to help make this happen.

2) Develop a budget implementation plan that will address the short term issues being faced. This will include ensuring suitably detailed, deliverable savings plans for each line of the MTFP are in place. This should make clear where there are risks involved in spending decisions and any potential shortfalls in the savings identified. These plans should also highlight early risks of slippage or non-delivery and where capacity for a fixed period may be required to ensure delivery of savings. The ‘budget implementation plan’ should then allow for accountability and monitoring including a clear and comprehensive ‘budget tracker’ approach, communication and considered equality impact assessments.

3) Re-design the budget process so that:

 It is genuinely medium term and includes the development of more considered savings options beyond the next 12 months.

 Is suitably informed by a full consultation with relevant stakeholders on spending proposals. These responses must be clearly evident when reporting to members.

 Includes detailed delivery plans and Equality Impact Assessments against all spending proposals as a matter of course.

 Has true corporate buy in and is jointly owned by the Executive and across the senior officer cohort with members of the Executive holding their senior officers to account over delivery.

 Is communicated to all members in a way that can be more easily scrutinised and challenged. This should also assist opposition members to more easily develop alternative shadow budgets.

4) Gain further assurance of any risks that exist in the current MTFP and address these appropriately. These include but are not limited to the delivery of savings, commercial income and MRP. Clarifying whether a further £6m of potentially unfunded pressures needs to be addressed in 2019/20 (in addition to the £22.1m of savings identified in the MTFP) will be crucial. The Council should also ensure it has a suitably resourced SEND budget delivery plan in place which is monitored and delivered. This will allow the Council to address the additional costs of a further £1m on a more sustainable footing.

5) Given the rapid growth and complexity of the Council’s commercial activity, a dedicated external review of governance, monitoring, reporting, capacity, capability, process and risk is necessary to give members and officers suitable ongoing assurance.

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6) Review, adapt and communicate the distinctive roles of members and officers to ensure these roles are clear, with specific responsibilities. This will help bring the necessary checks and balances all senior members and officers, regardless of their experience or skillset require.

7) Conduct a dedicated review of internal governance arrangements. This includes but is not limited to:

 Considering whether the structure and culture of scrutiny suffers from confusion with the various policy committees and how any obstacles to effective scrutiny of Council decision making (e.g. the budget) can be removed.

 Whether given the complexity of treasury management / commercial investment, there are parts of the local governance approach which would benefit from additional, suitably experienced independent representation to help bring added challenge (the Audit and Governance Committee may be one example of this).

 Where changes could be made to the call in procedure to ensure this important ‘holding to account’ mechanism can be triggered by fewer members from a broader constituency of non executive members

 Recognising the challenges now being faced, advises on an enhanced member development programme. This may include a range of different elements to be locally determined but should include financial and commercial awareness.

8) Consider whether the type and amount of capacity required is currently in place to deliver on the Council priorities. This includes the delivery of savings in the MTFP and the modernisation of services. The council should also consider whether the right type of core capacity (such as legal and financial) is also available to services – given the demands placed on these services particularly by the significant commercial programme.

9) There is now an opportunity for the Council to take the next step with colleagues at the CCG by starting the strategic conversation about greater integration both for the benefit of Warrington residents and financially for both organisations. This will require locally elected members coming together with the CCG Board to deepen the strategic conversation and explore how to evolve the relationships for the benefit of the mutual citizens you serve.

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3. Summary of the Peer Challenge approach

The peer team

Peer challenges are delivered by experienced elected member and officer peers. The make-up of the peer team reflected your requirements and the focus of the peer challenge. Peers were selected on the basis of their relevant experience and expertise and agreed with you. The peers who delivered the peer challenge at Warrington Borough Council were:

• Dawn Baxendale (Chief Executive – Birmingham City Council). • Cllr Rishi Shori (Leader – Bury Council). • Cllr Lucy Nethsinga (Leader of the Liberal Democrat Group - Cambridgeshire County Council). • Robin Porter (Deputy Chief Executive & Corporate Director Customer and Commercial - Luton Borough Council) • Chris Tambini (Director of Corporate Resources - Leicestershire County Council) • David Wilcock (Assistant Director for Legal Governance & Workforce / Monitoring Officer – Rochdale Borough Council) • LGA peer challenge manager: Dan Archer (LGA Programme Manager).

Scope and focus

The peer team considered the following five questions which form the core components looked at by all Corporate Peer Challenges. These are the areas we believe are critical to councils’ performance and improvement:

1. Understanding of the local place and priority setting: Does the council understand its local context and place and use that to inform a clear vision and set of priorities?

2. Leadership of Place: Does the council provide effective leadership of place through its elected members, officers and constructive relationships and partnerships with external stakeholders?

3. Organisational leadership and governance: Is there effective political and managerial leadership supported by good governance and decision-making arrangements that respond to key challenges and enable change and transformation to be implemented?

4. Financial planning and viability: Does the Council have a financial plan in place to ensure long term viability? Is there evidence it is being implemented successfully?

5. Capacity to deliver: Is organisational capacity aligned with priorities and does the Council influence, enable and leverage external capacity to focus on agreed outcomes?

In addition you have asked the peer team to provide particular observations and feedback on your approach to commercialisation.

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The peer challenge process

It is important to stress that this was not an inspection. Peer challenges are improvement focussed and tailored to meet individual councils’ needs. They are designed to complement and add value to a council’s own performance and improvement. The process is not designed to provide an in-depth or technical assessment of plans and proposals. The peer team used their experience and knowledge of local government to reflect on the information presented to them by people they met, things they saw and material that they read.

The peer team prepared for the peer challenge by reviewing a range of documents and information in order to ensure they were familiar with the Council and the challenges it is facing. The team then spent 4 days onsite at Warrington Borough Council, during which they:

 Spoke to more than 90 people including a range of council staff together with councillors and external stakeholders .  Gathered information and views from more than 35 meetings as well as additional research and reading.

 Collectively spent over 260 hours to determine our findings – the equivalent of one person spending over 7 weeks in Warrington.

This report provides a summary of the peer team’s findings. It builds on the feedback presentation provided by the peer team at the end of their on-site visit (29th March 2019). In presenting feedback to you, they have done so as fellow members and officers, not professional consultants or inspectors. By its nature, the peer challenge is a snapshot in time. We appreciate that some of the feedback may be about things you are already addressing and progressing.

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4. Feedback

4.1 Understanding of the local place and priority setting

There is a shared understanding between the Council and its partners of the challenges and opportunities facing Warrington ‘the place’. This was evidenced through references to the Council Plan, Warrington Means Business strategy and the Health and Wellbeing strategy. Partners are also clearly bought into the priorities of the Warrington Together partnership which brings together the main health and social care bodies who are working together to explore ways of delivering improved, integrated services to local people.

The Council has an ambitious approach to economic growth both across Warrington and notably within the town centre. This demonstrates a clear understanding of the economic strengths locally as well as the opportunities presented through Warrington’s geographical location. The Council is now taking steps to consult on a new Local Plan to further capitalise on its local assets.

The new Leader is keen that the Council engages in more depth, more proactively and more broadly with local residents in future and his signalled this by launching a series of Leader’s Forums in recent weeks. Engaging with other stakeholders more consistently and with increased depth will help the Council harness more insight that can be used when shaping future priorities and spending decisions. As part of this, the Council may also wish to review whether putting in place a regular, overarching resident satisfaction survey will now be of benefit in informing future decision making.

The new Leader has the opportunity to signal a fresh political vision for the Council which has been referred to elsewhere in this report. Once set, this should be communicated to all members, officers, residents, partners and businesses alongside a meaningful strategy which translates this vision into a clear and deliverable set of priorities for the Council. The priorities will need to be more specific than those used previously, to enable members and officers to challenge the delivery of them, building on the performance and business intelligence capability available at the Council. The delivery of these priorities should then be reflected in individual service plans, consistently across Council services as part of a ‘one council’ approach.

In setting a new political vision for the Council and the corporate priorities required to deliver this, the Council should consider how to most effectively communicate this, in light of the other tough decisions that will be required. This can however be a positive vision for the future of public service delivery in Warrington which includes a new relationship between the Council, residents and other local stakeholders.

In recent years, the Council has attempted to develop a new relationship between local residents and the Council under the banner of ‘Count me in’ which has not yet gained the traction that was hoped for. Whilst this has been used to an extent in specific service areas it does have the potential to form part of a positive vision for how public services in Warrington work with communities. This would require collective ownership and a consistency of application across all services. This can 8

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only really be achieved when it is truly understood by all and is used to inform decision making across all service areas.

Internally the Council recognises the need to reduce the gender pay gap that exists at the Council. This is a management development priority for the Council in 2019/20 and the Chief Executive has taken the personal step of chairing an internal group looking at the diversity of the workforce.

4.2 Leadership of Place

Partnership working in Warrington clearly has significant strengths which are very much valued by local businesses, the LEP, partners sub-regionally and the community and voluntary sector.

One example of particularly good practice, already highlighted in this report is the approach taken in forming ‘Warrington and Co.’ which is the Council’s development and regeneration arm. It has been successful in repositioning the Council in its relationship with local businesses. This has been a success and is recognised as a positive step forward for engaging with local businesses. Businesses in Warrington have reported seeing the Council as a real asset to the town. In particular the leadership and investment the Council has brought to driving forward the regeneration of the town centre is recognised and valued by residents, businesses and the local media.

On health, the Council has also taken positive steps in launching ‘Warrington Together’. Whilst this partnership remains in its relative infancy, partners are very much bought into this way of working and the potential opportunities it presents. Partners that the peer team were able to engage with commended the Council for embracing partnership working and identified pragmatic examples of this – such as including partnership representation (including CVS) on senior officer recruitment panels.

All of this is symptomatic of health partnerships more generally across Warrington being based on firm foundations. A further example being the strength of engagement through the Health and Wellbeing Board which has a range of local partners involved. The Health and Wellbeing Board in Warrington continues to be chaired by the Council Chief Executive who began chairing this board independently before commencing a second period as Chief Executive.

It is the view of the peer team that relations with health partners are stronger than the Council gave themselves credit for in the self-assessment. This is a real positive for Warrington and presents an opportunity now for the Council to take the next step with colleagues at the CCG by instigating a more strategic conversation about the potential opportunities available. This will require active engagement of senior politicians with CCG Board members to further develop relationships and explore tangible ways in which the integration agenda can be progressed, at pace, to improve outcomes for local residents and tackle shared financial challenges. Looking at the numerous examples of where this has happened elsewhere, this may include

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discussions about the opportunities presented by integration, pooled budgets and shared outcomes.

The Council should also consider opportunities where its commercial expertise could be connected with the efforts of all local stakeholders in improving outcomes for local residents. This could generate innovative new solutions locally and not necessarily where immediate or direct additional financial returns are an aim. Opportunities include health, skills and social care amongst others.

4.3 Organisational leadership and governance

Elected members clearly demonstrate a cross party commitment to making Warrington a place that works for all. Relationships between members of all parties are open and there is a consistent buy in across parties to the Council’s commercial income approach. Members across parties are supportive of the recently appointed Leader and his style of open engagement. Trade union relations also appear open and strong.

The respect shown between members is also evident between members and officers, with members demonstrating a significant amount of trust in the experience, abilities and decision making of the senior officer cohort, including the Chief Executive. As detailed in this report elsewhere, the scale of the budget challenge in the immediate and medium term means that the leadership now needs to take steps to set a new political vision for the Council with a new approach to dealing with the budget situation at its core. This will require refreshed, distinctive roles and relationships for both officers and members to help the Council achieve the improvements required. In order to achieve the sustainable transformation required to meet the budget challenge, as well as deliver on modernisation, members need to build on the respect they have for senior officers by introducing more of the necessary checks and balances includes a recognition of appropriate officer/member boundaries at all levels in the organisation.

This can also be done distinctively by each portfolio holder by bringing both the forward thinking leadership demonstrated in the commercial field to the wider service offer, as well as the support and challenge lead officers require (such as budget delivery, service performance, organisational health and modernisation milestones). As a collective, the Executive Board also has a crucial role in holding senior officers to account over the delivery of a new set of priorities for the Council which is informed by a new political vision.

To have the best chance of delivering a sustainable modernisation programme, senior officers will now be required to work more closely together than ever. This should be used to set the tone for all staff embracing a refreshed ‘one council’ approach and a positive learning culture. This requires consistent buy in to a revised set of corporate priorities and principles which are put in place to deliver on a new political vision for the Council. Once the priorities under this new vision have been set, and the implications for member and officer roles have been established, these

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should be clearly and consistently communicated in a visible, engaging way to all members, staff and partners.

Given the heightened financial challenge being faced and the rapid growth in the amount and complexity of the Council’s commercial income, members need to be assured that sufficient checks and balances are in place and strengthened where necessary so that they are able to suitably hold officers and the Executive to account.

To achieve this a dedicated review of governance arrangements is required which would include but is not limited to:

 Ensuring the structure and culture of scrutiny avoids confusion with the various policy committees. There may be obstacles to effective scrutiny of Council decision making (e.g. the budget) which can be removed.  Whether, given the complexity of treasury management in Warrington, there are parts of the local governance approach which would benefit from additional, suitably experienced independent representation. This can help bring added challenge and the Audit and Governance Committee may be one example of where this could help. Whether changes could be made to the call in procedure to ensure this important ‘holding to account’ mechanism can be triggered by fewer members from a broader constituency of non executive members.  Recognising the challenges now being faced, advises on a suitably enhanced member development programme. This may include a range of different aspects which must be determined and owned locally. It is the view of the peer team that this should include financial and commercial management.

4.4 Financial planning and viability

Since 2010 government funding to the Council has reduced by £137m. The Council is now in a position of a further £22.1m of savings / efficiencies / new income being required in 2019/20. This is a significant challenge given that the overall net revenue budget is set at £ £130.365m. This target equates to 16% of the 2019/20 budget. This is then followed by a further £23m being required by the end of 2022/23, including an extra £13m in 2020/21.

A significant part of the Council’s response to this reduction in public spending and increased demand for public services has been to try and off-set some of the decisions that other councils have been forced to take through the use of an ambitious investment strategy. This has moved the Council towards a commercially focussed model, based on acquisitions and investments. This has led to substantial additional income (which is forecast at £20.5m in 19/20). These investments have been mostly funded by external borrowing. These investments have included (but are not limited to):

 The £211m acquisition of a 123 acre science and business park in Warrington 11

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 £275m of loan facilities being put in place with 10 housing associations  The £30m purchase of a 33% share in the Redwood Bank  The planned £62m acquisition of two solar farms in the Yorkshire/Humber region. The Council continues to share their learning from the growth of this investment strategy with colleagues both regionally and nationally.

Given the rapid growth of the scale and complexity of investment activity in Warrington, a dedicated external review of governance, monitoring, reporting, capacity, capability, process and risk is necessary to give the Council ongoing assurance about their investment activity.

Despite the work the Council has done, this additional income and the separate one off savings and efficiencies taken by the Council have not been able to protect the Council from the need for difficult decisions.

In recent years Council service have consistently overspent against the budget and failed to deliver planned savings in full. At the time of the peer challenge, this was forecast to be the case for 25% of planned savings in 2018/19, with a forecast overspend of £5.2m at quarter three. At the same point in the previous year, the budget was also overspent by £3.9m. Overspending has required the Council to make up this budget shortfall through the use of further additional income, finance changes and the use of one-off reserves. This has led to some budget pressures being carried forward into future years which has reduced reserves. General fund and MTFP reserves are relatively low compared to similar councils elsewhere, at £6m or ‘around 3.5% of the net revenue budget’ for 18/19.

Quite simply, the Council can no longer afford slippages in the delivery of planned savings and efficiencies. The Council must now deliver on the planned budget in 2019/20, whilst at the same time redeveloping its budget approach for future years. A suitably detailed in year ‘budget tracker’ which is regularly reviewed by members and officers, allowing for challenge and remedial action to be taken as early as possible would also help to ensure savings are delivered more fully.

The Council should now also consider in more detail the measures that can be taken in the immediate term to reduce pressures on net revenue expenditure, which might include restrictions and spending gateways as necessary. A detailed ‘budget implementation plan’ to address short term issues is required. Underpinning this is the development of suitably detailed, deliverable savings plans for each line of the MTFP. This should make clear where there are risks involved in spending decisions, any potential shortfalls in savings and how savings from one area which may have a negative impact elsewhere (such as rising demand) will be mitigated. These plans should also highlight early risks of slippage or non-delivery and where capacity for a fixed period may be required to ensure delivery of savings. The ‘budget implementation plan’ should then allow for accountability, monitoring, suitable engagement and equality impact assessments.

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The Council should also gain further assurance of any risks that exist in the current MTFP and address these. This includes but is not limited to delivery of savings, commercial income and Minimum Revenue Provision. The Council is aware that the rules and guidelines governing investment have recently been tightened. There has been recent publicity and public interest around this issue, prompting professional debate in a number of related areas including the way local authorities account for and fund Minimum Revenue Provision. The council should keep its policies under review and satisfy itself that it is fully compliant with legislation and generally accepted accounting practice in the way it manages, finances and accounts for its commercial activities and MRP.

The Council continues to change - most obviously being in the investment portfolio and associated debt, with further investment planned. In addition to the ‘delivery’ risks mentioned above the Council also needs to further consider the wider risks associated with it changing role and responsibilities. Risks and the associated assessment of appropriate reserves must be kept under review.

Clarifying whether a further £6m of potentially unfunded pressures needs to be addressed in 2019/20 will be crucial. The Council should also ensure it has a suitably resource SEND budget delivery plan in place which is monitored. This will allow the Council to finance the additional costs of a further £1m on a more sustainable footing.

The Council will need to re-design its budget process so that:

 It is genuinely medium term and includes the development of savings options beyond the next 12 months. This will also require the Council to begin the budget setting process earlier, which will increase the likelihood of savings being delivered in full.  Suitably includes a full consultation with relevant stakeholders on spending proposals that is clearly evident when reported to members. Members must be sighted on consultation responses in the decision making process.  Includes detailed delivery plans and Equality Impact Assessments against all spending proposals as a matter of course.  Is jointly owned by the cabinet and across the senior officer cohort with members of the Executive holding their senior officers to account over delivery. A clear opportunity for meaningful engagement, development and challenge from the scrutiny and policy committees is also important.  Is communicated to all members in a way that is more easily scrutinised and challenged and helps opposition members to more easily develop alternative shadow budgets. Due to clear political and operational leadership around the commercial agenda which has resulted in additional income, coupled with a significant use of ‘one-off savings options’, the Council has not yet made some of the budget savings that other local authorities have had to. Given the financial challenges, it is now imperative that the Cabinet and wider group of members commit to a programme of savings and service transformation that will help meet these challenges. This will require tough political decisions, however is essential for the financial sustainability of the Council. 13

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At the time of the peer challenge a delay in the signing off of the 2017/18 accounts by the external auditor was being experienced. This is due to a challenge received from a local resident in relation to the Council’s investment in the Redwood bank.

4.5 Capacity to deliver

The Council benefits from a proud workforce characterised by the phrase given to the team on more than one occasion during the challenge of “doers not talkers”.

The Council employs 2,774 officers who are evidently committed to the borough with 72% living in Warrington. Staff morale overall is high when compared to a number of other councils with 87% of staff seeing that their work has a positive impact on the people of Warrington.

The Council has a middle manager cohort who are open to change and seek new challenges. The workforce the Council has available to it is also unique compared to most other councils in the range of skills they possess, in particular in the commercial income generation field.

When a new political vision for the Council is communicated, with clear priorities, and principles developed on the back of this, there is a capable and adaptable workforce who are ready to respond. Officers also appear comfortable in presenting challenge to other officers – including those more senior in the organisation. This is again an important characteristic to further encourage on the improvement journey. A revised organisational development strategy will help officers to adapt to new ways of working. Equally, the imminent move to new office accommodation for the majority of the workforce is another opportunity when embedding a ‘one council’ approach. Officers were not consistently convinced that this opportunity is being fully capitalised on.

As detailed elsewhere in the report, during the course of the peer challenge the Leader, Chief Executive and Deputy Chief Executive (s151) recognised the scale of the budget challenge presented. In order to meet this challenge, ensuring the right type of capacity at all levels is in place to deliver on the budget proposals in the MTFP for 19/20 will be important to avoid the type of slippage and non-realisation of savings which has been seen in recent years. The low level of general fund reserves now available and the increasing budget pressure means that there is now much less room for slippage than in previous years.

The Council reflected on the steps taken in previous years via one-off measures with the budget “to give four years to deliver transformation … but this didn’t happen as we hoped”. The Council needs to be clear on why this didn’t happen previously and what will make the difference now. A collective ‘one council’ approach to this key priority can make a difference, although it is worth reflecting on whether the Council has the type of projects/programme capacity available currently to do this and if not, how it can make sure this capacity is in place.

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In addition to the capacity to realise the savings required and modernise services, the Council may also wish to reflect on the demands placed on core functions such as legal and financial services by the significant commercial programmes the Council is dealing with. The finite amount of capacity these teams inevitably have is seen by some as now limiting their availability for more traditional Council work. Whilst their support for commercial work is clearly important, the Council may wish to consider whether the current amount of capacity is now sufficient.

In the Council’s self-assessment, there was a reflection that the Council is behind councils elsewhere on digitisation and is seeking to make up on lost ground. Whilst the peer team acknowledge that this is the case, the pace has quickened and individual examples are now bearing fruit locally. With a clear awareness of the ‘art of the possible’ evident and some early wins being seen, the pace here is quickening. The Council may wish to reflect on how visible support of senior members and officers can help promote these successes internally to help drive through this cultural and technological change.

Throughout this report there is reference to the distinctive roles of members and officers as well as the need for additional challenge to ensure the Council is able to stay on track when delivering its key priorities. The Council benefits from the fundamentals of business intelligence and performance management being in place to a level which is more developed than is seen in a number of other councils currently. Good quality performance management is a critical tool for all members and when done well, can help members and officers when maintaining appropriate member/officer relations. There is an opportunity to continue to build on these strong foundations when furthering empowering the Executive and scrutiny. Communicating the performance of the commercial portfolio more clearly is an area which would help members specifically.

The Council has identified an increase in sickness absence in the last year which is now at 12 days per FTE. This is at odds with the high levels of staff morale and includes a number of service areas where this is particularly high. Steps have started to be taken in addressing this, the impact of which will require ongoing monitoring and visibility at a senior leadership level. Officers and the trade unions spoke positively with the team about the various workplace wellbeing initiatives put in place and there are examples of particularly good practice here, including the British Heart Foundation funded ‘health check kiosk’.

5. Next steps

Immediate next steps

We appreciate the senior managerial and political leadership will want to reflect on these findings and suggestions in order to determine how the organisation wishes to take things forward.

Claire Hogan (Principal Adviser) is the Council’s lead contact at the Local Government Association (LGA). Claire will arrange a follow up meeting in the 15

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coming weeks to discuss support for the Council and provide further information and guidance on the issues raised in this report. Claire’s email address is: [email protected].

Follow up visit

The LGA Corporate Peer Challenge process includes a follow-up visit. The purpose of the visit is to help the Council assess the impact of the peer challenge and demonstrate the progress it has made against the recommendations identified by the peer team. It is a lighter-touch version of the original visit and does not necessarily involve all members of the original peer team. The visit is expected to take place within two years, with the exact timing decided in discussion with the Council.

Next Corporate Peer Challenge

The current LGA sector-led improvement support offer includes an expectation that all councils will have a Corporate Peer Challenge or Finance Peer Review every 4 to 5 years. It is therefore anticipated that the Council will commission their next Peer Challenge before March 2024.

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Issue Action Who/When

1. Publish report. Website and to all Members/ SB / RB / CM Staff/ Trade Union. On receipt of final report

2. Discuss with Trade Union Cabinet report. RB / SB at October JCC. Q3

3. New political vision and Cabinet / SMT via a joint event - RB / SB priorities. Trade Unions to be invited. Q3 4. Refresh our Council Key outcomes from joint event. RB / SB Corporate Strategy Ensure that is has specific Q3 (2019/2020). priorities and outcomes. 5. Integration of Health and Cabinet meet CCG Board to RB/SB Social Care. develop greater understanding Q4 and awareness in order to provide enhanced mutual outcomes. Health & Wellbeing Board report in May to increase pace and outcomes. LGA support to consider how to make more effective joined up policy and practice 6. Re-invigorate resident 1. Leaders Forum Ongoing - RB communication. 2. Prepare a new resident survey. Implement - Q4 RB/GH 3. New website. Q4 - GH 4. Reposition the council- Q4 - RB/SB customer relationship through ‘Count me in’. 7. Budget Implementation 1. New monthly monitoring and All Plan (BIP). tracking arrangements of the Q3 agreed savings / Republish Implement budget plans / Budget Transformational Agenda. Implementation Plan. 2. All Cabinet members Cabinet to be involved in the above. 3. Monthly report to H P and Cabinet/SMT Cabinet / SMT. 4. Service redesign. SMT/HP 5. Assess future reserves CM/LG position. 49 LGA Peer Assessment Action Plan August 2019

Issue Action Who/When

8. Review commercial Seek external consultation SMT/ CM strategy and governance advice to consider risk capacity Q3 and monitoring.

9. Develop new smart Simple KPIs to be reported on SMT / HP performance management on a monthly basis. LGA support Q3 arrangement to consider performance management analysis

10. Organisational structure Review current organisational SB/CM structure in relation to refreshed Q4 Corporate Plan.

Embed new staff culture and SB/GH modern working practices Q4 following move to new Council offices.

11. SEND Budget SEND recovery plan in place as MS/SP agreed with Schools Forum and Q3 SEND Strategic Board.

12. Membership of Audit and Review and consider LG/MC/HP Corporate Governance appointment of independent Q3 Committee external members.

13. Enhance new Member Develop revised programme to MC/HP Development Programme include financial and commercial Q4 awareness. LGA support for Cabinet/ Member development 14. Review internal To consider role and purpose of Q4 - CM/SB governance arrangements scrutiny and role of Policy Committee. Review ‘call in procedures’.

Key

Exec Board = Executive Board CM = Cathy Mitchell SMT = Senior Management Team MC = Matt Cumberbatch RB = Leader LG = Deputy Chief Executive SB = Chief Executive MS = Matt Smith HP = Hitesh Patel GH = Gareth Hopkins 50 Agenda Item 5 WARRINGTON BOROUGH COUNCIL

CABINET – 9 September 2019

Report of Cabinet Councillor H Patel, Cabinet Member, Transformation Member:

Chief Executive: Professor Steven Broomhead, Chief Executive Director: Lynton Green, Director of Corporate Services/Deputy Chief Executive

Senior Responsible Amanda Juggins, Deputy Head of Business Intelligence Officer:

Contact Details: Email Address: Telephone: [email protected] 01925 443207

Key Decision N/A

Ward Members: All

TITLE OF REPORT: PERFORMANCE REPORT - QUARTER 1 2019-20

1. PURPOSE

1.1 The Corporate Strategy 2018-20 vison for Warrington is:

“We will work together with our residents, businesses and partners to create a place that works for all.”

1.2 The strategy sets out four pledges:

Opportunities for the most vulnerable Grow a strong economy for all Build strong, active and resilient communities Create a place to be proud of

1.3 It also sets out how the council will work to deliver its vision and pledges (delivering our vision).

1.4 A set of key performance indicators has been developed by the Strategic Management Team (SMT) for 2019-20 to reflect their priorities for the year. SMT will also report any additional performance issues causing concern.

51 Agenda Item 5

1.5 This report aims to demonstrate what we are achieving against the targets and pledges in the corporate strategy, so we have included specific reference to our stated intentions.

1.6 Scrutiny Committee recently reviewed the quarter 4 Cabinet performance report and agreed to use the performance information as a basis to identify areas for further scrutiny as part of their work programme.

1.7 We will publicise the contents of this report on our website, in accordance with our stated aim of being open and transparent.

2. CONFIDENTIAL OR EXEMPT

2.1 The report is not confidential or exempt.

3. OVERVIEW OF DELIVERY OF THE CORPORATE STRATEGY

3.1 Details of performance against the council’s key performance indicators and projects can be found within the scorecard in Appendix 1. The scorecard provides details of performance against expected targets/progress for quarter 1 (April to June) and includes a summary of trend information.

3.2 The tables below provide a progress update against the corporate strategy pledges and priorities for quarter 1.

3.3 Opportunities for the most vulnerable

We said we would ensure the safety and wellbeing of our vulnerable adults and children The council, alongside the Clinical Commissioning Group (CCG) and school leaders have been successful in a joint bid for funds to build on an already successful mental health support offer to schools. The offer will develop models of early intervention on mild to moderate mental health and emotional wellbeing issues, as well as providing help to staff within schools. 95% of Warrington school Head Teachers are trained in Mental Health First Aid and every school has a named mental health lead. This is already established in Warrington’s secondary schools.

The council’s Early Help service redesign is underway to ensure a comprehensive Early Help offer. The recruitment and selection process commenced on the 6th June and will continue through to August in time for the final implementation on 1st September 2019. A number of Families First staff will transition over to Early Help Locality Teams in order to enhance the seamless support when families move in and out of the threshold of need and reduce those hand off points families may witness.

The council and its partners, through a specialist Panel, continue to gate keep the authorisation of Out of Borough (OOB) placements for vulnerable adults. The council has purchased a second Transition House and adapted it for client use. This continues to

52 Agenda Item 5 increase capacity within the borough and avoid the use of expensive OOB placements. The property is due to open in late Summer. This provision will be the home to young adults leaving OOB specialist colleges and avoids OOB placements.

The council works closely with partners, such as the Police, to tackle sexual exploitation of children and vulnerable adults. Work is progressing to ensure that there is an integrated approach to pathways for tackling hidden harm through a specialist post. A Hidden Harm Police Unit has been developed within the Local Policing Unit and positive collaboration is taking place through training to local businesses and Department for Work and Pensions around these topics and Modern Slavery.

The council’s children’s services have recently been rated as ‘Good’ by Ofsted, following a two week visit during July. Ofsted described the standard of care as ‘energetic, collaborative and highly committed. Warrington’s children’s services have come a long way since 2009, when Ofsted identified the service as ‘inadequate’ and then in 2015 as ‘requires improvement’. Particular praise within the report includes:

• Collaborative multi-agency delivery • Early help services • The ‘influential’ edge of care service • The multi-agency safeguarding hub (MASH) • Improved arrangements for vulnerable 16 and 17 year olds • Strong contextual safeguarding arrangements

We said we would support people to live as independently as possible Significant work continues to ensure sufficient capacity in both Learning Disability and Mental Health supported accommodation provision. Two new houses are being adapted for Learning Disability provision and the Complex Mental Health Project continues to ensure appropriate use of existing provision as part of a Mental Health Recovery Pathway. New provision for lower level support is being commissioned to provide a cost effective step down option. Capacity in Learning Disability provision remains challenging, particularly meeting the increase in demand.

Quarter 1 has seen an improvement overall in the number of people and hours, waiting for packages of care at home. There has been a corresponding reduction (improvement) in the number of delayed transfers of care from hospital attributable to social care. The first stage of the Extra Care Tender has now gone live. This tender is a specific agreement for the provision of care at three Extra Care and sheltered housing schemes; Harpers Road, Mosslands and Ryfields. There has been interest from 15+ organisations and the Extra Care Tender will conclude in early 2020.

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Warrington is part of a co-funded collaboration, including Halton Borough Council, which through a digital solution will tackle the increasing amount of time spent on medicine management, effectively tracking patients and their medicines. The administration of medication by domiciliary care currently involves multiple partners, a range of delivery systems and complex pathways, matched by an increasing number of people with complex needs and medication living in their own home and receiving care. Where people are unable to administer their own medication domiciliary care providers undertake this role. The current pathway poses significant challenges in relation to the timely administration of planned and unplanned medication. There are also challenges with medication wastage through the use of metered dosage systems. This collaboration will use a number of different methods to explore the issues that are faced by service users and their carers, domiciliary care agencies, GPs, pharmacies and hospitals and look at innovative technological solutions that could streamline processes, reduce errors, reduce wastage, leaving staff more time to provide direct care, supporting timely medication reviews and improve outcomes for users, including reduced safeguarding concerns.

We said that we would provide access to quality care, support, education and learning provision An Executive Head Teacher for School Improvement has been appointed for 2 days a week to work alongside the lead officer for School Improvement, ensuring a robust programme of support is delivered and monitored. 10 Associate School Advisors [ASAs], all existing Warrington Head Teachers have been commissioned from the system to offer bespoke support to schools in need or to lead on local authority statutory roles during the year.

The council is committed to ensuring that the current transport policy is in line with statutory guidelines and that it has a comprehensive, forward thinking and efficient transport offer. Improvements have recently been made to the level of detail now included within the policy. This updated version is now published on the council's website. No changes have been made to the Policy but it is now being applied robustly to all applicants. Independent travel training is currently being explored via a pilot scheme with colleagues at Sir Thomas Boteler and pupils have been identified to undergo case studies. The outcome of these case studies will then inform a range of possible options which could potentially be implemented (subject to funding availability) in order to take this forward as an offer to young people.

Three new mainstream fostering households have been recruited during quarter 1. Two of these households have transferred from agencies. These households can care for up to five children. One already has an 8 year old Warrington child in their care long-term and the other already has a 16 year old Warrington teenager in their care long-term. There will be significant savings on these children’s placements. The council aims to reduce the use of agency placements and during quarter 1 only 6 children were placed with agency carers. Two of these are parent and child placements.

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Since 2007, the council has been delivering child cycle training in schools paid for by a government grant, bid for annually. This training is the Bikeability Level 2 course and is suitable for 9 to 10 year olds. Level 2 assumes a basic level of bicycle handling, and teaches road skills at quiet junctions such as signalling, positioning and highway code through a series of 4 x 2-hour theory and practical sessions. We deliver this in primary schools by way of a contracted provider, and bid for enough grant annually to cover training for every Year 5 or 6 child in the borough. The Bikeability training is very popular and during 2018/19, 91% of grant funded places were delivered. During quarter 1 there were 452 year 5 and 6 children trained.

3.4 Grow a strong economy for all

We said that we would invest in, maintain and build the town’s economic and environmental infrastructure through the delivery of Warrington Means Business strategy The council continues to make good progress with Time Square Regeneration Scheme. The council took ownership of the Leisure Block in July. The new tenants can now begin the fitting out of their new space. The scheme is on track and is being delivered within budget.

A new digital hub for Warrington has been established at the Pyramid. Carpe Diem have established Opus, a co-working space and home hub for digital and technology businesses and entrepreneurs. Opus members pay a subscription for desk space, broadband and meeting rooms. The co-working space provides access to peers and the wider digital and tech community. Membership is forecasted to rise during the year with current members spanning social media research, website design and development, educational coding and robotics, cloud infrastructure and digital events.

The council concluded its consultation on the Local Plan during quarter 1. All responses are now being reviewed before confirming the Plan for independent examination.

Restoration works to the conservatory block at Walton Hall are progressing well, adding to the improvement works / investment already completed on the Estate. A full programme of events have also been developed for 2019. The delivery of the final phase of FCC Communities Foundation funded projects within Parks has commenced. These projects include play areas refurbishments, woodland management, Outdoor Gym equipment, skate park improvements and development of a replacement observation tower at the Risley Moss Nature Reserve. Warrington is developing a Local Cycling and Walking Improvement Plan alongside its review of LTP4 (Local Transport Plan 4). A revised network is to be proposed in LTP4 made up of Greenways, neighbourhood routes and core strategic routes which will also help to encourage more use of public open space.

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We said we would ensure the borough is well connected and accessible The council is successfully delivering a number of critical infrastructure projects. Details are provided in Appendix 1.

Bus Lane Enforcement was introduced on Leigh Street in April 2019 and Wilderspool Causeway in May 2019. There has been a significant increase in compliance with the bus lanes and positive feedback received from Warrington’s Own Buses on the impact on reducing delays to bus services. A Public Transport Information Strategy has been developed and agreed in partnership with the Cabinet Member.

The council continues to support external partners to encourage travel behaviour which reduces the reliance on the private car and increases residents' access to job opportunities. Particular success continues to be had around the Omega and Lingley Mere sites, with a strong cycling culture being created and successful public transport services like the B52 bus in place. Strong relationships continue to be maintained with businesses in Birchwood, with Birchwood Park funding a series of travel promotional activities which the council co- ordinate and deliver across the sites. The recruitment of a new Senior Travel Advisor funded by partner contributions and Section 106 funding will allow further work to continue.

Residential travel planning activities will start in September 2019 as a number of key sites are built out across North West Warrington area. During the year the council will start the development of an area-wide Town Centre Travel Plan using S106 contributions from residential developments. This work will involve the development of car share or car hire schemes, incentives for cycling and promotion of public transport services. The intention is to grow a culture in the Town Centre which is less car dependent and for new residential developments to be car free or car 'lite'.

We said we would work with businesses to promote inclusive growth, compliance and health and wellbeing The council’s Regulatory Code and Enforcement Policy sets out our commitment to protecting responsible businesses and the public. The council continues to take a number of high profile prosecutions against those businesses who deliberately seek not to comply and who prey on the vulnerable. We are currently working with the Local Growth Hub and Cheshire East and Chester West and Chester councils to promote business advice.

The council and partners are working with local businesses in Warrington to support health and wellbeing. Using external funding from British Heart Foundation, local businesses in Warrington are being given the opportunity to host a state of the art health kiosk. The kiosk enables self-administered checks for blood pressure, Body Mass Index (BMI), body fat, pulse and heart age. The check takes about 5 minutes to complete and provides real opportunities to improve health and lifestyle-related behaviour of working age people.

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Providing the opportunity for a quick and simple check-up in the workplace helps reach those people who might not otherwise get checked, or seek out information to help them improve their health or address lifestyle-related risk factors. Rollout of the kiosks to workplaces is due to commence in Autumn 2019.

3.5 Build strong, active and resilient communities

We said that we would ensure there is sufficient new homes and good quality affordable housing to meet local needs and to support growth The council was successful in a bid under the government’s Rough Sleeping Initiative to obtain grant funding of £137,000. This will provide specialist support for an additional 21 residents and in response to consultation has enabled the council to launch its first women only accommodation based project in Warrington.

A homelessness needs assessment was undertaken by an LGA advisor during quarter 1 and is now being used to further develop the Homelessness Strategy. Work with housing providers continues through the Housing and Homelessness Action Partnership which has considered the availability of social housing, housing delivery and the specific needs for residents with disability.

We said that we would promote and support healthy, prosperous and vibrant communities A new three-year Library Strategy for Warrington has been published following a consultation period during quarter 4. The strategy sets out the ambitions for Warrington’s libraries. The library business cases continue to be developed, albeit at different speeds, although all local working groups have been fully engaged. Library updates include: • Stockton Heath library refurbishment is underway and running to time. • A decision on Culcheth library is still to be determined and the council are currently assessing assumptions made on capital expenditure. • There has been no business case put forward for Westbrook. • At Lymm library there have been some challenges with progressing leases and other enabling services such as Wi-Fi.

We said we would support our residents to be healthy taking responsibility for their lifestyle, health and wellbeing Work is currently underway with the Gambling Commission (GC) to develop a harm reduction strategy. A working group has been established and insight and evidence available nationally from the Gambling Commission will be used to help develop the strategy.

A new Alcohol Joint Strategic Needs Assessment chapter is currently being developed with a first draft to be shared with key partners for comment by end of July. Once completed

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this will inform a new local Alcohol Harm Reduction Strategy, with a stakeholder’s workshop being planned for November 2019, during Alcohol Awareness Week.

A new Mental Health Strategy has been developed for Warrington within which prevention remains a key strand, and there is on-going implementation of the mental health promotion and prevention plan. Work is continuing with partners to develop a 'Time to Change' hub in Warrington. Time to Change is a social movement which supports people with lived experience to champion mental health within their communities and deliver community activities in order to challenge the stigma around mental health. The council is currently developing implementation plans for a Warrington Hub which will build on other mental wellbeing campaigns and programmes such as In Your Corner.

A comprehensive needs assessment for cancer has recently been completed and a draft will be consulted on in the autumn. In collaboration with Warrington CCG and NHS England, the cancer screening action plan has been refreshed for 2019/20. This outlines the key priorities to focus on locally to ensure good cancer screening uptake.

A new Tobacco Control Alliance is being established for Warrington, with the first meeting scheduled for September. The Alliance will help strengthen accountability amongst partners and will build on our partnership approach to addressing harm from tobacco and will work towards addressing the recommendations made by the Public Health England CLEAR assessors.

We said we would ensure our citizens are well educated and skilled with opportunities to progress into training, further/higher education and employment There has been another excellent set of results for Warrington’s Key Stage 2 pupils. Provisional results show that Warrington’s Year 6 children continue to outperform the national average for Reading, Writing and Maths by 7.2%. 72.2% of Warrington children achieving the expected standard of attainment compared to 65% at national level. Results have improved year on year since the new assessment framework was introduced in 2016. These results are a credit to our hardworking children, supportive parents and the dedicated teachers in our schools.

3.6 Create a place to be proud of

We said we would work with the community to ensure our streets are clean, safe and tidy The quarter 1 outturn for household waste recycled is 135 tonnes (provisional). This better than the target of 138.75 tonnes. The percentage of waste recycled during the quarter is 49% (provisional) and is slightly lower than the target of 50%. The 50% recycling figure is an EU target set for all local authorities to meet by 2020. There was a dip in quarter 4 due to a

58 Agenda Item 5

problem with Dry Mixed Recycling (DMR) which resulted in some waste being diverted to disposal for short period of time.

3.7 Delivering our vision

We said our resources will be well managed and reflect the priorities of residents and stakeholders The LGA Peer Challenge report and our action plan developed in response was published on our website in August, and the progress in delivering the action plan will be reported through this document.

The council continues to actively manage and monitor its existing portfolio of commercial and trading activity with a view to sustaining income generation and managing associated risks over the medium to longer term. The authority continues to seek appropriate opportunities to generate additional and sustainable revenue streams in line with targets set within the council’s agreed Medium Term Financial Plan.

The Warrington 20:20 digital transformation programme continues to make progress with a new E-Recruitment system (the council's first) delivered in quarter 1. Good progress has been made in Revenue and Benefits, Registrars and on delivering the new council web-site. The Contact Centre plan is slightly behind its original schedule due to resource and planning issues. Financial benefits for this year (19/20) are currently forecast to be slightly ahead of the business case.

The council’s Registrars service has achieved a high level of service during the past year which has been recognised by the General Register Office (GRO). The service has exceeded the national target for Medical Certificate of Cause of Death (MCCD) death registrations of 90% (Warrington performance was 93%). This is attributed to the robust management of the appointment system. Timeliness for birth (99%) and still-birth registrations (100%) also meet or exceed the national targets of 98% and 100% respectively. Additionally, the service have met or exceeded the performance targets for appointment availability for deaths (actual 98.02%), still-births (actual 100%) and notice of marriage and civil partnership (actual 100%).

The council’s mandatory learning modules are now well established for employees and new modules will be added in the near future. The Training prospectus has been reviewed and a full programme of training is delivered out of ‘The Warrington Training Hub’. Over 100 apprenticeships are in train – in excess of the targets set by central government - and we are about to launch opportunities for management and leadership degrees using the apprenticeship levy.

59 Agenda Item 5

4. FINANCIAL CONSIDERATIONS

4.1 A detailed report on Revenue and Capital spend is presented separately to the Cabinet.

5. RISK ASSESSMENT

5.1 The council’s risk management arrangements are embedded and working well within the Directorates and a separate report on strategic risks is provided to the Cabinet on a six monthly basis.

6. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

6.1 Equality and diversity implications are assessed in relation to each aspect of policy and its delivery within directorates. As this is a composite report, a further impact assessment is not necessary.

7. CONSULTATION

7.1 Consultation with key stakeholders has been undertaken in relation to the council’s strategy and plans.

8. REASONS FOR RECOMMENDATIONS

8.1 To ensure that Cabinet members are aware of the council’s performance position as at quarter 1 2019-20 in relation to delivery of the Corporate Strategy.

9. RECOMMENDATION

9.1 The Cabinet is recommended to:

(i) Note the quarter 1 2019-20 performance position.

(ii) Note that the relevant Cabinet Members will liaise with their Directors to discuss specific performance issues.

10. BACKGROUND PAPERS

Corporate Strategy 2018-20.

Contact for background papers:

Name E-mail Telephone Amanda Juggins, Deputy Head [email protected] 01925 443207 of Business Intelligence

60 Appendix 1

Council Performance Scorecard Quarter 1 2019/20

Produced by Business Intelligence

61 Corporate Strategy Performance Scorecard Service Measures 2018/19 2019/20 Percentage of registered providers meeting CQC standards in Adult Services 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: OMV (Q4) % of Adult Social Care Providers compliant with CQC standards 71% 70% 72% 72% 74% 75% % of Residential Adult Social Care Providers compliant with CQC standards 71% 69% 69% 69% 73% 75%

Two new measures have been included for this year to highlight the challenges faced in the quality of social care provision. 55 out of 74 (74%) Adult Social Care providers ( England and North West Average is 84%) at the end of June were rated by CQC as good or outstanding, slightly under the target of 75% but a better performance. 38 out of 52 9 (73%) residential homes (England Average 81% and North West Average is 79%) were also rated in the same way, again under the target of 75%. There are currently no services in Warrington rated as ‘inadequate’. The data set changes each time a home receives a new rating and overall this quarter there has been an increase in the percentage of beds rated good or outstanding for the third successive quarter, with 71% overall compliant. Three care homes which were previously rated as 'requires improvement' have received a 'good' rating this quarter. These were Twiss Green Lane, Summerville and St Oswald's. All of these services have received significant improvement support from the Council’s care quality team in achieving this. Two services that have been rated as 'requires improvement' are Care at Home and Radcliffe Meadows (WCL). The Councils care quality team have been working closely with the provider and CQC regarding concerns identified.

Number of household nights in Bed & Breakfast (B&B) 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: BSARC (Q4) 570 676 1117 778 200 309 168 (56 nights per month)

During quarter 4 2018/19, Warrington’s B&B night performance improved significantly compared to previous months. A main reason for this was emerging capacity in our temporary accommodation following people moving on after long term support (up to Number of household nights in bed and breakfast accommodation 6 months). As B&B clients moved on to more short/medium term accommodation, the requirement for B&B reduced. Although the (in month) requirement for B&B services is somewhat unpredictable, and demand is still high for housing services and quarter 1 2019/20 600 521 showed an average of 103 B&B nights per month. 500 437 451

400 298 265 300 209 229 202 201 180 200 157 113 130 115 133 96 88 55 66 56 47 100 27 37 36 29 20 41 0 Jul-17 Jul-18 Jan-18 Jan-19 Jun-17 Jun-18 Jun-19 Oct-17 Oct-18 Apr-17 Apr-18 Apr-19 Sep-17 Feb-18 Sep-18 Feb-19 Dec-17 Dec-18 Aug-17 Aug-18 Nov-17 Nov-18 Mar-18 Mar-19 May-17 May-18 May-19

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active62 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 Delayed Transfers of Care (DToC delayed days) BCF measure 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: OMV (Q4) 2083 2053 1523 2466 1556 1706 The full quarter 1 data has not yet been published however total delayed days in April (628 days) and May (498 days) has shown a steady decrease from the end of 2018/19 (March was 687 days). The DToC working group has been working on producing process Total Delayed Days 1500 maps which define and provide guidance on delay definitions, particularly in relation to legal processes. Prior to data publication, there is now an established process for sharing, validating and reporting 'acute delays'. A DToC report has been presented to both 1000 BCF and the DToC working groups which reflected a deep dive analysis into 5 months of acute DToC data. The findings highlighted that even though the majority of delays have been attributable to the NHS, a large portion often relate to the availability of 500 Intermediate Care services. Other reasons related to patient and family choice, with analysis showing that the refusal of transition beds and lack of engagement with family on the discharge planning, impacted on the volume of DToC reported. 0

NHS Delay Social Care Delay Both

Percentage of older people who were independent 91 days after discharge following re-ablement (BCF 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target (quarterly) measure) (Q4) Pledge: OMV 86% 83.9% 87.0% 87.1% 84.2% 86.1% 83.5% The Quarter 1 outturn (those that were independent during April – June) was 86.1% which is better than the target of 83.5%. There were 167 out of 194 clients successfully reabled during quarter 1. Of the remaining 27 clients, 15 passed away, 4 had to go back into Reablement performed consistently on or above target during 18/19 hospital and 8 went into residential care. Re-ablement continues to be a key service in ensuring the need for long term care and 100% support is reduced and people are able to be as independent as possible in the local community. However, the market does 80% continue to experience some pressures around domiciliary care provision which has prevented some patients transferring to 60% agencies for continued support after re-ablement. 40% 20% 0% Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Q1 19/20

% Independent 91 days after reablement Target

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active63 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 Primary and Secondary Outcomes 16-17 17-18 18-19 19-20 EA NW Target Pledge: BSARC Percentage children achieving the expected standard in Reading, Writing and Maths at Key Stage 2 (age 10 60% 70% 71.1% 72.2% 61% 65% 74% and 11) Provisional results published in July 2019 show that Warrington’s Year 6 children continue to outperform the national average for Reading, Writing and Maths by 7.2%, with 72.2% of Warrington children achieving the expected standard of attainment compared % children achieving the expected standard in Reading, Writing to 65% at national level. Results have improved year on year since the new assessment framework was introduced in 2016. These and Maths at Key Stage 2 results are a credit to our hardworking children, supportive parents and the dedicated teachers in our schools 72.2% 60% 70% 71.1%

16-17 17-18 18-19 19-20 % children achieving the expected standard in Reading, Writing and Maths at Key Stage 2 - (age 10 and 11)

Number of missing children as reported missing to Cheshire Police increased each quarter 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: OMV (Q4) 102 125 136 143 132 Trend 132 children in Warrington were reported as missing to Cheshire Police in quarter 1 (April - June 2019). This is a 29% increase on the 102 children who were reported at the same time last year. Although numbers have fallen slightly since quarter 4, the information No. of missing children as reported missing to Cheshire Police will be monitored to see if there is a further increase in numbers reported missing in quarter 2. increased each quarter in 2018-19

136 143 April - The 49 children reported as missing generated 83 missing episodes. 32 children had 1 missing episode and 8 children who 125 132 were reported as missing on 3 or more occasions generated 39% of all missing episodes. 102

May - The 45 children reported as missing generated 89 missing episodes. 27 children had 1 missing episode and the 9 children who were reported as missing on 3 or more occasions, generated 49% of all missing episodes.

June - 38 children reported missing. Breakdown is not currently available.

Ofsted have confirmed that children who go missing in Warrington and are at risk of harm and exploitation receive well- coordinated and proficient services to assess concerns and mitigate risks. Rate of Early Help Assessments (EHA) per 10,000 (cumulative) 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: OMV 181 200 181 197 187 186 178 In quarter 1 there were 210 children and young people subject to an EHA. This is above the preliminary expected rate of 178. The increase in performance is the result of a combination of factors including; a change in assessment practice which means all family Rate of early help assessments per 10,000 member needs are considered and included in one plan, a newly devised assessment training programme, which has been well 200 attended by both internal and external colleagues, and various promotions and meetings attended to showcase the value of whole 181 197 187 186 family working which is now well embedded into everyday practice.

Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Q1 19/20

Rate of early help assessments per 10,000 (projected to year-end) Target

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active64 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 Rate of Children in Care per 10,000 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: OMV 89.8 93.4 91.2 87.4 87.4 83.1 78 In June 2018 Warrington hit a peak of 417 children in care. Since this date we have seen a month on month decline. The number of children in care as of the 31st March 2019 being 385, falling to 371 at the end of June 2019, which is the lowest it has been over the Rate of Children in Care per 10,000 last 2 years. Rates of children in care have decreased from 86.2 per 10,000 in March to 83.4 per 10,000 in June. There is still a significant gap with National (64) & Statistical Neighbour rates (64). We are below/better than the North West average of 86. We have now turned the curve and numbers entering care are now lower than the numbers being discharged. 89.8 93.4 91.2 The Families First service was restructured on the 1st July 2019. This service is providing high levels of intervention early in the 87.4 87.4 83.1 process in order to prevent that escalation in risk (and the use of family group conferencing) and thus reducing the inflow of children into care. Benefits include:

- More ‘whole family’ working and ensuring that services work across all age groups and meet the needs of all family members, in line with the transformation agenda inherent in complex families. - A more seamless experience for children, young people and their families moving through the continuum of need as set out in the Thresholds document, reducing the hand-off points between services. 17-18 Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Q1 19/20 - Ensuring children, young people and their families have the opportunity to build relationships with professionals prior to services being stepped down from Child in Need to Early Help.

TS2 Rate of Children in Care per 10,000 Target

Percentage of domestic abuse incidents involving victims who have previously been a victim during the last 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target 12 months 34% 39% 40% 45% 47% Trend Pledge: OMV The latest available information is quarter 4 (January to March 2019). During this quarter there were 647 domestic abuse crimes. 305 of these crimes involved a victim who had been a victim in the last 12 months (47%). % of domestic abuse incidents involving victims who have previously been a victim during the last 12 months

The repeat rate for 2018/19 in Warrington was 42% which is the same as the Cheshire Force area as a whole but slightly higher than 100% Cheshire West (41%) and Cheshire East (41%) but lower than Halton (45%).

50% The volume of domestic abuse crimes in 2018/19 was 2982, a 32.7% increase on the 2017/18 volume of 2248. This increase has been the result in wholesale changes made to the Police's crime reporting processes, which domestic abuse features heavily as part of this. The police advise that should now be more consistency in the way that they record crimes and allow for better comparisons. 0% Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19

All Domestic Abuse Training has recently been reviewed and refreshed by the Domestic Abuse Partnership. This indicator is % of DA incidents repeat victim Trend reported a quarter in arrears.

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active65 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 Percentage of people who remain out of statutory services after 8 months following the end of Mental 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Health Outreach Intervention Pledge: OMV 68.7% 65.0% 65.4% 64.3% 66.2% 74.6% 66% During quarter 1 a total of 112 people have not come back into service out of 150 closures (74.6%) which is positively higher than the target of 66%. Whilst performance is good, the complexity of referrals has increased year on year and the team often have an Increased complexity of service users was been a challenge during 18/19 however unallocated caseload, meaning that there are occasions where individual needs have increased by the time the service are able to Q1 19/20 has shown improved performance. 100% engage. Following closure the team have no control over the issues that individuals may face. 80%

60%

40%

20%

0% Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Q1 19/20

% out of statutory services 8 months after intervention Target

Ofsted Compliance - schools 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: OMV Primary: 97% 97% 97% 97% 97% 97% 96% Secondary: 58% 58% 58% 67% 67% 67% 71% Special Schools: 100% 100% 100% 100% 100% 100% n/a In Warrington, 97% of primary schools, 66.7% of secondary (78% of secondary school pupils) and 100% of special schools are judged Ofsted compliance - % good and outstanding schools good or outstanding. 100% 80% 60% 40% 20% 0% 17-18 Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Q1 19/20

Primary: Secondary: Special Schools:

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active66 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 Corporate Projects : Transport Infrastructure 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: GSE (Q4) Trend Trend Trend Trend Green Green Green

Centre Park Link: All residual land holdings are now acquired via the Highways Compulsory Purchase Order process. Works have now commenced on site. Scheme will be completed by the end of 2020.

Warrington Rail Hub: Warrington continues to lobby for the development of a rail hub at Bank Quay. Warrington has been acknowledged as an important economic centre in the Transport for the North (TfN) Strategic Transport Plan with the potential for a stop on Northern Powerhouse Rail (NPR) within the borough. A Strategic Outline Business Case has been produced by TfN and Network Rail which confirms Warrington's aspirations for a NPR stop in the borough are included with options to be taken forward for further consideration. Warrington continues to press for the abandonment of the Golborne Link on HS2 in favour of upgrade of the WCML through Bank Quay and an interchange with NPR.

Warrington East Phases 2 & 3: All construction works are progressing to programme. Schemes are being delivered under budget. All works should be completed and open to traffic by December 2020.

Warrington South Infrastructure: There is continued liaison with Homes England and other landowners in South Warrington, plus colleagues in Warrington & Co to look to make the case for investment in strategic transport infrastructure which is needed to serve the planned Garden Suburb.

Warrington West Rail Station: Construction work continues to make excellent progress and is due to be completed in late Summer 2019 prior to the station opening. The opening of the station is likely to be delayed due to a prolonged entry in to service process, the programme for which is being driven by Network Rail and the train operating companies.

Warrington Western Link: Programme Entry secured from the Department for Transport on 10th April 2019 for the Warrington Western Link scheme. A report was presented to 8th July with Cabinet accepting the offer of Programme Entry and approving the next stages of the scheme.

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active67 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 Corporate Projects : Waste Programme 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: GSE (Q4) Trend Trend Trend Trend Amber Amber Green Green waste income has exceeded target for 2018. Planning permission for waste transfer station was not obtained, this has led to a change in procurement strategy for waste disposal contracts and reduced scope for service financial savings. Procurement process for Residual Waste and Dry Mixed Recyclate progressing with final tender submissions due at the end of August. Community Recycling Centre (CRC) infrastructure improvement are progressing, however the appointed contractor has gone into financial administration. Works at Woolston CRC are complete and works at Gatewarth due for completion in August 2019 .

Waste : Residual household waste per household 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: GSE (Q4) 137.0 134.6 132.0 125.1 132.8 135.0 138.75 The quarter 1 outturn for household waste recycled is 135 tonnes (provisional). This better than the target of 138.75 tonnes. Residual household waste Outturn Target 150 125 100 75 50 25 0 18/19 Q1 18/19 Q2 18/19 Q3 18/19 Q4 19/20 Q1

Waste : Percentage of household waste sent for reuse, recycling and composting 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: GSE (Q4) 42.8% 48.9% 45.0% 42.9% 38.9% 49.0% 50.0% The percentage of waste recycled during quarter 1 is 49% (provisional) and is slightly lower than the target of 50%. The 50% Household waste sent for reuse, recycling and composting recycling figure is an EU target set for all local authorities to meet by 2020. There was a dip in quarter 4 due to a problem with Dry 60% Outturn Target Mixed Recycling (DMR) which resulted in some waste being diverted to disposal.

40%

20%

0% 18/19 Q1 18/19 Q2 18/19 Q3 18/19 Q4 19/20 Q1

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active68 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 Corporate Projects : Parks & Open Spaces 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: GSE (Q4) Trend Trend Trend Trend Green Green Green

Restoration works to the Conservatory block at Walton Hall are progressing well very much adding to the improvement works / investment already completed on the Estate. A full programme of events have also been developed for 2019. The delivery of the final phase of WREN funded projects within Parks has commenced. These projects include play areas refurbishments, woodland management, Outdoor Gym equipment, skate park improvements and development of a replacement observation tower at the Risley Moss Nature Reserve. Warrington is developing a Local Cycling and Walking Improvement Plan alongside its review of LTP4 (Local Transport Plan 4). A revised network is to be proposed in LTP4 made up of Greenways, neighbourhood routes and core strategic routes which will also help to encourage more use of public open space.

Economic Performance 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: GSE (Q4) Trend Trend Trend Trend Trend Trend Trend Trend Trend Trend There has been an updated population estimate for Warrington (mid-2018 from the Office for National Statistics) and for the first time since 2004 the population has fell to 209,547 (from 209,704). The Economic dashboard is updated on a quarterly basis (measures are annual or quarterly) and focus on four themed areas; Business, Economy, Education and Employment. There have been updates for 'Business' 'Economy' and ''Employment'.

'Business' - the take-up of office and industrial commercial space has increased in 2018, following a fall in 2017, and are now at similar levels to 2016.

'Economy' - the year-end net cumulative figure for additional homes in 2018/19 was 503 net completions. The total number of economically inactive has increased, though those who want a job is falling both in terms of numbers and percentage.

'Employment' - percentage of the population in employment is falling and is worse than in previous years. The largest categories for those in employment is professional, technical and elementary occupations.

Town Centre Masterplan 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Pledge: GSE (Q4) Trend Trend Trend Trend Green Green Green

Time Square: Time Square Phase 4 is on programme and within budget. Warrington Borough Council took ownership of the Leisure Block in the development on July 8th 2019.

New Office: New Council Office opening is on programme and within budget. All project work streams are on track with huge progress being made in preparing the Council's services for the move. Strong governance is in place with monthly reporting through to SMT and the Times Square Programme Board.

Business Improvement District (BID): The BID is nearing its 1st year of operation and has appointed a board to direct activities towards its 4 key themes. A plan is also in place for the Council to recover the cost of winning the BID vote.

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active69 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 Customer 2018/19 2019/20 The average customer telephone wait time 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Delivering our Vision (Q4) 281 393 566 256 291 328 300 The average wait time during quarter 1 was 328 seconds (5 minutes and 28 seconds), which is an increase of 65 seconds from the quarter 4 outturn of 291 seconds (4 minutes, 51 seconds) and 28 seconds over the target of 300 seconds (5 minutes). Telephony - Average Speed of Answers 566 600 Council Tax training to upskill existing staff has proved successful. Work with back office teams on the wording on Council Tax bills 381 393 367 328 has seen a reduction of calls being offered. 400 255 281 256 291 200 0 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18 Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Q1 19/20

Actual Target

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active70 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 Complaints - volume and timeliness 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Delivering our Vision (Q4) Corporate Services: 76.50% 100.00% 76.00% 80.49% 77.70% 73.68% 82.40% E&T: 72.55% 64.71% 68.75% 70.54% 70.24% 71.43% 71.83% Growth: 72.55% 64.71% 68.75% 70.54% 70.24% 14.29% 71.83% Adult Services: 75.61% 79.17% 72.92% 72.06% 76.53% 94.44% 83.30% Children's Services: 78.85% 95.24% 84.44% 86.96% 82.02% 84.62% 82.73% WBC: 76.50% 79.60% 74.20% 76.20% 75.30% 74.12% 76.42% WBC: There have been 99 all stages complaints at quarter 1 (April to June), which is higher than quarter 1 last year (95). 74.12% of valid* complaints were responded to within timescales, which is lower/worse than the target of 76.42%. The majority of complaints are from members of the public (94.9%). (*Valid as recorded with a yes/no completion on the CRM). Quarter 1: Complaints Responded to Within Timescale (%)

The directorate breakdown is: 100% Corporate Services: 20 all stages complaints at quarter 1 (11 in quarter 1 last year). 73.68% of valid* complaints were responded to 90% within timescales (target of 82.40) and is lower/worse than quarter 4 (77.7%, with 21 all stage complaints). All complaints are from members of the public (100%). 80%

70% Environment & Transport: 28 all stages complaints at quarter 1. 71.43% of valid* complaints (20 out of 28) were responded to within timescales (target 71.83). The majority of the complaints are from members of the public (92.8%). 60%

Growth: 7 all stages complaints at quarter 1. 14.29% of valid* complaints were responded to within timescales (target 71.83). The 50% majority of the complaints are from members of the public (85.7%). The majority of the complaints are from members of the public 40% (85.7%). The previous year’s complaints figures for E&T and Growth are combined. There were 36 complaints across both directorates in 30% quarter 1 last year and 55 at quarter 4. 20% Adult Services: 28 all stages complaints at quarter 1 (26 in quarter 1 last year). 94.44% of valid* complaints were responded to 10% within timescales (target 83.30) which is higher/better than quarter 4 (76.53% with 31 all stage complaints). The majority of the complaints are from members of the public (96.4%). 0% Corporate E&T Growth Adult Services Childrens WBC Children’s Services: 16 all stages complaints at quarter 1 (22 quarter 1 last year). 84.62% of valid* complaints were responded to Services Services within timescales (target 82.73), which is higher/better than quarter 4 (82.02% with 22 all stage complaints). The majority of complaints are from members of the public (100%).

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active71 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 People 2018/19 2019/20 Average Days lost per FTE to Sickness Absence 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Delivering our Vision (Q4) Corporate Services: 8.06 8.57 9.08 9.45 8.85 9.24 E&T: 13.05 13.62 14.71 15.68 15.87 16.38 Trend Growth: 13.05 13.62 14.71 15.68 15.87 11.57 F&WB: 13.3 13.67 13.17 12.55 12.43 13.88 WBC: 12.19 12.61 12.66 12.60 12.48 13.33 12.00 WBC: The average days lost to absence at the end of Quarter 1 was 13.30 days per person. This is higher when compared to Quarter 1 performance over the last couple of years, 18/19 Q1 was 12.61 days per person and 17/18 Q1 was 11.03 days per person. 66% of the absence was across WBC was a result of long term absence. The highest levels of sickness is occurring in ASC and E&T services. Quarter 1: Average days lost per FTE to sickness absence Corporate Services: The average days lost to absence at the end of quarter 1 was 9.24 days per person which is higher than the 18 same period last year which was 8.57 days per person. This was also an increase from our quarter 4 position of 8.85 days. 50% of 16 the absence's were as a result of long term absence. 14 12 E&T: The average days lost to absence at the end of the quarter was 16.38 per person. This was an increase from 14.01 in the 10 previous year. 69% of the absence was as a result of long term absence. 8 Growth: The average days lost to absence at the end of the quarter was 11.57 per person. This was a decrease from 12.30 in the 6 previous year. 61% of the absence was as a result of long term absence. 4 2 FWB: The average days lost to absence at the end of the quarter was 13.88 per person. This was an increase from 13.64 in the 0 previous year. 68% of the absence was as a result of long term absence. Corporate E&T Growth FWB WBC Services Corporate Services DMT have agreed to draft a Recovery Action Plan for sickness and this will be shared and agreed with SMT.

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active72 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 Agency spend as a % of total salary 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Delivering our Vision (Q4) WBC: 3.1% 0.8% 2.5% 2.3% 2.7% 1.0% 3.3% Corporate Services: 0.51% 0.60% 0.98% 0.95% 0.99% 0.84% E&T: 3.43% 0.90% 3.04% 3.46% 3.96% 0.38% Trend Growth: 3.43% 0.90% 3.04% 3.46% 3.96% 4.87% F&WB: 3.64% 0.80% 2.78% 2.29% 2.73% 1.24% WBC: The quarter 1 outturn of 1.0% relates to April and May as June is not currently available. At present the figure is below the target of 3.3%. Agency spend as % total salary 3.5% Corporate Services: The quarter 1 outturn of 0.84% relates to April and May as June is not currently available. At present the figure is below target with most of the agency costs in the Customer & Business Transformation service. 3.0% 2.5% E&T: The figure provide related to April and May as June is not currently available. At present the figure is below the corporate 2.0% target with the costs largely based on work in Waste and Infrastructure delivery. 1.5% Growth: The figure provide related to April and May as June is not currently available. At present the figure is above the corporate 1.0% target and the costs are for work within Property & Estates. 0.5%

0.0% FWB: The figure provide related to April and May as June is not currently available. At present the figure is below the corporate Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18 Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Q1 19/20 target with most of the costs for work in social care teams. Corporate WBC

Increasing percentage of Apprenticeship Levy used 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Delivering our Vision (Q4) - 34.0% 33.3% 43.0% 50.0% 46.0% Trend WBC: % of the overall apprenticeship levy spent: % of Apprenticeship Levy Used - Corporate Services The quarter 1 figure of 46% of the levy has been spent (this figure includes schools). Of the 46% approx. 10% was allocated to 60.0% schools. 23% of the amount spent was in Corporate Services. 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Q1 19/20

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active73 and Resilient Communities; GSE = Grow a Strong Economy for All 2018/19 2019/20 Governance 2018/19 2019/20 Number of FOIs and response times (Directorate & Corporate) 17-18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target Delivering our Vision (Q4) WBC: 85.8% 85.2% 92.0% 90.4% 90.6% 86.1% Corporate Services: 84.2% 92.5% 92.3% 91.9% 94.6% 91.5% E&T: 77.4% 82.5% 93.5% 81.3% 69.0% 73.7% 95% Growth: 77.4% 82.5% 93.5% 81.3% 69.0% 83.3% Adult Services: 94.4% 88.4% 87.3% 91.9% 92.6% 85.1% Children's Services: 100% 97.8% 97.7% 91.7% 97.6% 90.6% WBC: 86.1% of FOIs answered within timescales, this is lower than the previous quarter (90.6%). This figure reports the cumulative % throughout the year. We have received 319 FOI requests as an organisation, which is lower than the last quarter (335). Quarter 1: FOI's Responded to in Within Timescale (%)

Corporate Services: 91.5% of FOIs answered within timescales, this is lower than the previous quarter (94.6%). This figure reports 100% the cumulative % throughout the year. Corporate services received 90 FOI requests, which is lower than the last quarter (119). 91.5% 90.6% 90% 86.1% 83.3% 85.1% E&T: 73.7% of FOIs answered within timescales, this is higher than the previous quarter (69%). This figure reports the cumulative % 80% 75.8% throughout the year. E&T received 73 FOI requests, which is higher than the last quarter (63). 70%

Growth: 83.3% of FOIs answered within timescales, This figure reports the cumulative % throughout the year. Growth received 7 60% FOI requests. 50% Adult Services: 85.1% of FOIs answered within timescales, this is lower than the previous quarter (92.6). This figure reports the 40% Q1 19/20 cumulative % throughout the year. Adult services received 97 FOI requests, which is lower than the last quarter (104). Target (95%) 30% Children's Services: 90.6% of FOIs answered within timescales, this is lower than the previous quarter (97.6%). This figure reports the cumulative % throughout the year. Children's services received 52 FOI requests, which is higher than the last quarter (49). 20% 10%

0% Corporate E&T Growth Adult Services Childrens WBC Services Services No. 90 73 7 97 52 319 FOIs

Pledge Key: OMV= Opportunities for the Most Vulnerable; BSARC = Build Strong, Active74 and Resilient Communities; GSE = Grow a Strong Economy for All

Agenda Item 6

WARRINGTON BOROUGH COUNCIL

CABINET - 9 September 2019

Report of Executive Councillor M Smith, Cabinet Member, Children’s Services Board Member:

Executive Director: Steve Peddie, Executive Director Families and Wellbeing

Senior Responsible Steve Peddie, Executive Director (DCS) / Amanda Amesbury, Officers: Operational Director (Deputy DCS)

Contact Details: Email Address: Telephone: [email protected] 01925 442900

Key Decision No. N/A.

Ward Members: All

TITLE OF REPORT: OFSTED ‘STANDARD’ INSPECTION OF CHILDREN’S SOCIAL CARE SERVICES IN WARRINGTON

1. PURPOSE

1.1 Under the Ofsted ILACS (Inspection of Local Authority Children’s Services) framework regime, Ofsted will undertake Standard inspections, supplemented by ‘focused’ inspections, SEND inspections, Joint Targeted Area Inspections, monitoring visits and activity outside inspection. Standard inspections (usually for local authorities judged ‘requires Improvement to be good’) involve two weeks on site by a team of inspectors, following a week of information and data sharing.

1.2 Having previously achieved ‘Requires Improvement’ in 2015 and two positive inspections (a ‘focused’ and a SEND inspection) published in February 2018 and February 2019, Warrington received a Standard inspection between 8 and 19 July 2019 and the result was published on 19 August 2019.

1.3 The purpose of this report is to communicate to Cabinet the result of that inspection as ‘Good’ in all areas. There is no decision to be recommended apart from the noting of the Ofsted judgement.

1.4 The attached Ofsted report sets out the rationale for the judgement.

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2. CONFIDENTIAL OR EXEMPT

2.1 The report is not confidential or exempt.

3. FURTHER DETAIL

3.1 Ofsted inspected Warrington’s Children’s Services in November 2009 and found performance to be ‘Inadequate’ Further inspections took place through 2010 and 2011 and by February 2011 the local authority was found to have made ‘adequate progress’ in addressing the serious concerns then identified. The local authority’s Fostering arrangements were inspected in 2013 and found to be ‘Good’ and in May 2015, although the overall judgement was ‘Requires Improvement’, the Council was judged good in the areas of ‘children looked after, adoption and care leavers’. The areas of children in need of help and protection’ and ‘leadership, management and governance’ still needing strengthening.

3.2 The recent Standard inspection has judged the following areas, with positive results in all areas:

Judgement Grade The impact of leaders and social work practice with children Good and families The experience and progress of children who need help and Good protection The experiences and progress of children in care and care Good leavers Overall effectiveness Good

3.3 The report highlights for praise all levels of the organisation, from ‘vibrant and inquisitive’ political leadership, to ‘energetic, collaborative and highly committed’ senior management, ‘mature strategic partnerships, ‘highly focused practice leadership’ and ‘skilled and well-trained frontline workers’. The excellent outcomes for children in most cases correspond.

3.4 Early help services and the ‘influential’ Edge of Care Services, as well as the Multi- Agency Safeguarding Hub (MASH), ‘improved arrangements for vulnerable 16 and 17 year olds’ and ‘strong contextual safeguarding arrangements’ are also highlighted.

3.5 There is always more to do, particularly as the Authority aspires to be ‘outstanding’ in all areas. The inspection team highlight three areas:

• Screening of repeat contacts for circumstances where children are living in neglectful circumstances

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• Decisive and early protective measures for children on child protection plans experiencing extended periods of neglect • The pace of reviewing and decision-making for children on care orders at home

3.6 In terms of what happens next, this judgement puts this Council on ‘pathway 1’, for authorities judged good or outstanding. As such we will receive a short inspection about three years after this inspection. If that short inspection results in the local authority being judged requires improvement to be good, it will move to ‘pathway 2’. In between inspections, the local authority will usually receive one focused visits or a JTAI (Joint Targeted Area Inspection – a multi-inspectorate inspection on a specific theme). If Ofsted holds intelligence suggesting a significant deterioration in performance before a short inspection, including any areas of concern identified at a focused visit, this may trigger a standard inspection.

5. FINANCIAL CONSIDERATIONS

5.1 N/A

6. RISK ASSESSMENT

6.1 N/A

7. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

7.1 N/A

8. CONSULTATION

8.1 N/A

9. REASONS FOR RECOMMENDATION

9.1 This standard Ofsted inspection is a significant milestone for Warrington Council. Ofsted is the regulatory agency for the inspection and assurance of local authority Children’s Services. Ofsted standard inspections are a judgement on the leadership of and practice standards in children’s social care. Ofsted checks that the government’s minimum standards are being met and takes proportionate enforcement action to ensure children are safe and well looked after. Ofsted’s inspection reports contain specific recommendations so that those providing services know what to do to improve. Ofsted draws on its findings to highlight what is working well, and shares good practice so leaders, including the Cabinet, can learn from inspection reports.’

4 RECOMMENDATION

4.1 Cabinet is recommended to:

(i) Note the published inspection report.

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(ii) Note that the action plan responding to the report will be completed and sent to Ofsted by 21 November 2019.

5. BACKGROUND PAPERS

None.

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Warrington Borough Council

Inspection of children’s social care services

Inspection dates: 08 July 2019 to 19 July 2019

Lead inspector: Nick Stacey Her Majesty’s Inspector

Judgement Grade

The impact of leaders on social work practice with Good children and families

The experiences and progress of children who need help Good and protection

The experiences and progress of children in care and Good care leavers

Overall effectiveness Good

Leaders and senior managers ensure that children and their families receive good- quality services that help to protect children and improve their day-to-day experiences of family life. Prioritising support to its vulnerable citizens is a core council priority. It achieves this through its energetic and ambitious senior leadership team, which uses this strong corporate support to concentrate on making continuous improvements at a lively pace. The operational director for children’s social care (who also holds the role of deputy director of children’s services) is highly focused on ensuring that frontline staff and managers understand what makes good practice, and is determined in her role as practice leader to see this exemplified in all interventions with children and families.

The effectiveness of help and support for care leavers is improving following the recent appointment of an experienced, permanent manager. Senior managers are actively considering adding further management capacity to services for care leavers to ensure that improvements to the areas identified are made at the required pace.

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The director of children’s services (DCS) is instrumental in promoting strong strategic partnerships. This results in widespread multi-agency involvement in effective and extensive early help and edge of care services. Consistently strong multi-agency engagement is also evident in the commitment to children who are the subjects of child protection and child in need plans.

A bedrock of good practice has been established. This encompasses assessments and plans and involves increasingly imaginative and intensive direct work that benefits many children and families.

What needs to improve

◼ The effectiveness of the multi-agency safeguarding hub (MASH) screening of repeat contacts for children living in circumstances in which they are neglected.

◼ Decisive and early protective measures for children on child protection plans who experience neglectful parenting for extended periods.

◼ The pace of reviews and decisions for children who live at home and who are subject to care orders.

The experiences and progress of children who need help and protection: Good

1. Children and their families are very well supported through an extensive range of early help services, provided by skilled and well-trained frontline workers. Consequently, the circumstances of many children substantially improve, and this avoids the need to step cases up to a higher level of statutory intervention. Early help and edge of care workers remain allocated to families when they ‘step in and out’ of thresholds of need. This provides children and their families with a continuous model of help. Assessments and plans are thorough, so parents understand what changes are needed and they engage with the interventions provided. Early help workers use evidence-based approaches, measuring the extent and impact of neglect and the progress towards reducing damaging effects on children. The demand for these services is high and a waiting list is managed well to ensure that children in greater need receive a quicker response.

2. The MASH includes many co-located partners. The multi-agency environment facilitates swift information-sharing, and largely prompt and appropriate decisions are made concerning contacts and referrals. Most screening decisions and timeframes for gathering information are congruent with local guidance, and social workers form well-considered recommendations for management oversight. Social workers routinely obtain consent from parents and carers to seek further information from other professionals.

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3. A small number of screening decisions concerning repeat contacts with the MASH are made without sufficient checks on children’s progress with all universal or early help services involved in their case. In some of these cases, services are already in place and decisions are made that are not fully informed by full and updated information. Consequently, a small number of children may not receive the right type of help at the earliest opportunity. Senior managers are fully aware of this issue and have recently introduced credible checks and balances to address it. However, limited positive impact of these was seen during this inspection.

4. Children at risk of harm are protected by timely and rigorous responses from the MASH and the out-of-hours service. Strategy meetings are used to share information quickly and comprehensively, and immediate protective actions are clear. Assessments are thorough and closely consider children’s and their parents’ histories. They convey a clear insight into children’s lives and evaluate information with balanced analysis. Interventions are arranged quickly, often while assessments are in progress, so that children do not have to wait for the help they need.

5. Most social work practice for children who are on child protection and child in need plans, including practice with disabled children, is of a consistently high standard and has a positive impact. A recently implemented service structure ensures that children can receive support from the same social worker, from the point of an assessment through to the stage when the case is stepped down to early help or closed. Although uninterrupted social work relationships with children are a cornerstone of senior managers’ improvement activity, at this inspection some children had experienced too many changes of social worker.

6. Child protection conferences prioritise enabling parents to share in the evaluation of risks and concerns about their children. This inclusive approach is further enhanced through using plain, accessible language in the meetings. Plans are written clearly and usually illustrate in straightforward terms for parents what needs to change, although timescales for priority actions are not always explicit enough. Partner agencies are well engaged, which is demonstrated in their involvement in regular core groups and child in need review meetings. Children’s progress is closely evaluated, and support is changed, if necessary, to ensure that it continues to both improve their circumstances and safeguard them.

7. A broad range of intensive interventions help children and families to address a range of complex difficulties, including neglect, domestic abuse and substance misuse. A large team of skilled workers from an edge of care service supports children across the thresholds of need, building continuous, trusting relationships with children and their carers. The level of support and intervention is increased during more difficult periods, providing the critical support to help parents rapidly develop the skills, routines and basic care

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required to provide a safe and nurturing environment for their children. Social workers see children regularly and are knowledgeable about their circumstances. They adapt their home visiting schedules to respond to periods of greater stress and risk. Most social workers are creative and curious in their direct work with children, and use pictures, play and numerous initiatives to explore the children’s worlds.

8. When standards of parenting do not improve quickly enough to ameliorate risks to children and address their unmet needs, most cases are appropriately escalated to the pre-proceedings stage of the public law outline through well- recorded legal planning meetings. Social workers and the edge of care service engage purposefully with families to explore and test all opportunities to help parents improve their care. For a small number of children, particularly those experiencing long-term neglect, authoritative measures are not taken soon enough. Senior managers recognised this shortfall and had implemented tighter checks and balances, including closer scrutiny of children on child protection plans for longer periods, and more frequent legal planning reviews. The effects of these initiatives is emerging through decisions to instigate legal proceedings sooner when improvements in children’s circumstances are either too slow or highly unlikely.

9. Responses to children with specific vulnerabilities are well managed. A small number of children who are notified as living in private fostering arrangements are promptly assessed and regularly reviewed, ensuring that their circumstances are suitable and that their needs are met. Allegations and concerns regarding unsuitable behaviours and potential abuse of children by professionals and volunteers are rigorously screened and closely tracked by an experienced designated officer. Older children aged 16 to 17 years of age who present at risk of homelessness receive timely, well-coordinated assessments and comprehensive support arrangements. Well-established pathways with housing partners result in prompt and thorough joint assessments. When necessary, the children are provided with a good standard of emergency and longer-term supported accommodation.

10. Children who are missing from education, and those who are electively educated at home, are efficiently tracked and monitored. Collaborative multi- agency oversight ensures that support is provided to improve the education provision for children educated at home. The missing education team diligently ascertains the whereabouts of children who are absent from school and the destinations of those who leave school. These efforts mean that most children’s whereabouts are known, and their well-being is safeguarded.

11. Children who go missing and are at risk of harm and exploitation in the community receive well-coordinated and proficient services to assess concerns and mitigate risks. Return home interviews are arranged promptly and care is taken to try and understand the underlying factors that lead to episodes of going missing and also what children do while they are missing. Children who

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go missing repeatedly, and for whom there are heightened worries, are considered at multi-agency monitoring and intervention meetings, which share intelligence effectively. Gaps in information are identified, and tailored multi- agency interventions are targeted for direct work with children and to disrupt, pursue and prosecute individuals of concern. These measures are regularly reviewed to test their impact, and the reasons for concluding monitoring and tracking are clearly documented. A small number of children identified as being at risk of female genital mutilation, forced marriage, honour-based abuse or radicalisation are safeguarded through effective partner arrangements and clearly understood and applied pathways.

The experiences and progress of children in care and care leavers: Good

12. Decisions to bring children into care are generally appropriate, timely and are based on well-written assessments. The pre-proceedings stages of the public law outline are used constructively to rigorously test, through intensive support, whether families can achieve and sustain safe and nurturing parenting for their children. If this is not possible, assessments are completed quickly, which prevents subsequent delays in court proceedings. Legal powers are used well to safeguard children through carefully prepared evidence and prompt completion of care proceedings.

13. Children’s permanent living options are considered through comprehensive planning as soon as they enter care. Strong efforts are made to consider whether children can safely live in their family networks, and the importance of this is exemplified in well-prepared connected persons assessments. Many children live with their relatives, or foster carers, under special guardianship order arrangements. Brothers and sisters are assessed and supported to live together. Careful assessment and planning precede appropriate decisions to return children home from care and ensure that most then receive the necessary support to successfully remain at home. Ongoing support is provided, particularly from the edge of care service, to help children resettle into their birth families.

14. Extensive efforts are made to find adoptive families for children who are unable to live with their birth families. Social workers diligently tackle obstacles to ensure that children are matched and placed with adopters who can best meet their needs. Consequently, an increasing number of children are placed in nurturing and loving adoptive families. Detailed plans support children’s successful transitions into their adoptive families, and adopters are provided with the right help to overcome difficulties they encounter as their children progress.

15. Social workers understand the children who they provide support to well. They visit children regularly in their placements and they record these episodes thoroughly. Many social workers engage in focused and creative direct work

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with children, helping them to understand their family histories and their feelings about being in care. Senior managers have appropriately recognised that this important work should be better collated, and they have recently introduced a ‘My Life’ framework to draw this together more coherently.

16. Social workers regularly update assessments of need for children in care. These are well written and provide an informative overview of children’s daily lives and the progress they are making. Consequently, care plans strongly reflect children’s current circumstances. The plans are detailed, but they do not always prominently record the overarching aim of the child’s care plan or include a clear summary of permanence objectives. Some actions do not have sufficiently clear timeframes. Senior managers have recently launched a new permanence policy, which includes an improved care plan template.

17. A significant number of children who are the subjects of care orders are placed at home with their parents. Some of these children have remained the subjects of statutory orders for unnecessarily long periods, and a very small number have continued to experience poor parenting. Independent reviewing officers (IROs) are not active enough in challenging drift and delay for these children and for a small number of other children in care. This is partially the result of their high caseloads. Senior managers are reviewing all children who are placed at home; however, the pace of this work has been too slow and lacks a sense of urgency.

18. IROs prioritise children’s participation in their reviews, and advocacy support is used well. Recommendations are clear and measurable and are checked at subsequent reviews. IROs’ reports are written directly to children, and the sensitivity with which they explain circumstances and decisions demonstrates excellent child-centred practice.

19. Most children thrive in well-matched placements that improve their circumstances from their starting points following entry to care. The local authority has a good range of available placements, and offers many children and social workers a choice of placements to consider. This provides opportunities to match children with carers who are best-placed to address their specific needs. Effective foster carer recruitment is increasing the numbers of local placements. Prospective foster carers are carefully assessed and trained and, following their approval, are well supported by their social workers. Foster carers offer a wide range of skills and experience to help children who are placed in their families. Many children can ‘stay put’ with their foster carers when they reach 18 years of age if they choose to, and a significant number do so.

20. Children enjoy and benefit from a wide range of leisure activities provided by their carers, although the take-up of leisure activities is less apparent for children placed at home on care orders with their parents. Contact with family members (referred to as ‘family time’) is carefully considered and strongly

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supported when it is in children’s best interests. Social workers and carers are keenly attuned to children’s physical and emotional health and well-being. Children’s health assessments and checks are largely up to date, and social workers consider emotional and mental health issues routinely. A social worker from the child and adolescent mental health service (CAMHS) is permanently based in the child in care service, offering social workers and children accessible advice and support.

21. Proactive measures are taken when children encounter difficulties in their placements, and there is a risk of the placement breaking down. Senior managers prioritise the importance of children retaining continuous care, and a designated edge of care service worker provides advice and support for foster carers. However, disruption meetings are not held routinely, and this omission is a missed opportunity to identify important learning themes to inform subsequent placement planning and matching. It also means that any critical learning points are not captured to use in additional training and support for foster carers.

22. The virtual school effectively supports children’s educational progress through strong leadership. Close attention is devoted to the impact of personal education plans (PEPs) and they are consistently scrutinised through a high standard of quality assurance. This ensures that PEPs are well informed by all involved agencies. They also assist professionals to better understand children’s social and emotional development in order to help them focus on their school work. As a result, outcomes at most key stages are improving, although more work is needed to support the attendance and engagement and to improve outcomes of children at key stage 4.

23. The small number of children in care who are placed at a distance from the local authority receive provision and support equal to that received by children who are placed in the local authority area. Some of these children have highly complex needs and additional vulnerabilities. The local authority responds quickly when these children go missing, and associated risks are considered carefully in strategy and other intervention meetings. Return home interviews for the children placed out of the local authority area are undertaken by local area services, and the quality and timeliness of these are variable. However, diligent safeguarding responses ensure that risks are explored and understood.

24. Many young people leaving care do well and make good use of the support offered by conscientious personal advisers (PAs). The percentage of care leavers participating in education, employment or training has increased and is now above the national average; the effective input of partners has helped with this. Most young people live in suitable accommodation in their preferred areas of the town.

25. Young people are supported to learn and practise independence skills and live in good-quality supported accommodation until they are ready to live

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independently. PAs are diligent in maintaining contact, and in re-establishing it when young people disengage. Caseloads are too high, which results in delays of several months in PAs’ introductions to some young people during their transition into the leaving care service. There are also significant gaps in management oversight of young people’s case records. Leaders and managers are actively addressing these shortcomings through a recent restructure of the team, including the recruitment of an experienced team manager.

26. All young people leaving care have up-to-date pathway plans (PPs) that are regularly reviewed. Plans do not always consider specific vulnerabilities closely enough, and actions and timescales are often not sharply aligned with young people’s identified needs. Senior managers have recently provided training for PAs to improve the quality of PPs. The local offer for care leavers is comprehensive, featuring clear, accessible information on their rights and entitlements. Care leavers in independent accommodation are exempted from paying council tax. Not all care leavers have full information on their health histories, but senior managers had imminent measures in place to provide these important summaries to all care leavers.

The impact of leaders on social work practice with children and families: Good

27. Leaders and senior managers are energetic, collaborative and highly committed to the continued improvement of services for vulnerable children. Political leadership is vibrant and inquisitive. A bedrock of good practice standards, and improving outcomes for children throughout the service, is already established. The service and structure have recently been redesigned to reflect a ‘systemic’ practice model. Senior managers are highly focused on the impact of all their initiatives on enhancing the standard of social work with children. The reflective approach used in senior management meetings is mirrored in much purposeful support and intervention with children.

28. Senior leaders’ goal of bringing team managers closer to frontline practice is already apparent in their detailed knowledge of children’s cases. Staff across all layers of the hierarchy are undergoing extensive and accredited training in systemic approaches and value the investment in their professional development. The operational director determinedly and prominently promotes and expects high standards from frontline staff and managers, and is instrumental in creating a favourable operational environment for good social work to thrive. Caseloads are manageable, and the service structure has been streamlined to minimise service-led changes of social worker.

29. Mature strategic partnerships have been forged and strengthened by the chief executive and DCS. Strategic intent and proficient, collaborative multi-agency delivery are clearly aligned throughout operational services. This is evident across early help services, in the effective and influential edge of care service; in children’s cases in the MASH and the cases of those on statutory plans; in

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improved arrangements for vulnerable 16- and 17-year-olds; and in the strong contextual safeguarding arrangements.

30. The corporate parenting panel has an active, ongoing constructive exchange with a small number of highly engaged children representing the children in care council. The panel chair and senior managers recognise that the range of voices from children in care needs broadening and active measures are underway to attempt this. There is no representation from young people leaving care on the panel, and their regular participation would help senior managers to address improvements, although the core service provided largely meets their support needs.

31. Senior managers look outwards to consider best practice from other local authorities and invite regular peer reviews across the range of services. This has helped to provide senior managers with a balanced self-assessment of progress and has identified areas where further improvements are indicated. Consistently good timeliness in completing care proceedings and a high standard of evidence preparation are recognised by both the family court judge and the Children and Family Court Advisory and Support Service.

32. Regular practice learning is embedded and closely linked to the ongoing quality assurance of frontline practice. These initiatives are rapidly evolving, as the recent restructure and introduction of the local authority’s preferred practice model gain momentum. A raft of measures, including reflective group supervisions, frequent learning circles and regular staff engagement sessions, extract key learning themes from both good and weaker frontline practice. Not all periodic thematic practice audits are sufficiently evaluative in balancing the importance of process compliance with critical practice learning. Regular dip sampling audits inform subsequent learning shared in staff engagement sessions. Staff value continuous senior management acknowledgement of effective practice with children and families at individual, team and service levels.

33. Senior managers have access to reliable and accurate performance information, which is regularly interrogated. Monthly performance clinics quickly spot trends, triggering explorations of underlying practice themes, which enables issues to be efficiently identified and tackled. This is demonstrated, for example, in recent measures leading to improved timeliness in holding initial child protection conferences, and in reducing nearly all overdue visits to some children on statutory plans.

34. Most social workers are permanent and experienced employees. This is complemented by a continuous supply of both recently qualified and qualifying social workers, who unanimously endorse the high standard of support and early career development provided by the local authority. Social workers’ morale across the service is high, and they are realising the benefits of smaller teams, continuous allocation to children, manageable caseloads and the

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considerable investment in their training and development. Social workers also appreciate the importance given to their emotional well-being and welfare through regular ‘check-ins’.

35. Most social workers receive regular case supervision, alongside group supervision and learning circles. The quality and extent of recorded supervision are mixed. While most recording is detailed, demonstrating reflective discussions about children’s daily lives and their progress, some records include descriptive updates and a simple set of tasks to action. A small number of case records for care leavers featured gaps in supervision of many months. Senior managers recognise that the quality and depth of supervision discussions are not always well evidenced in children’s case files. They are taking action to improve this.

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The Office for Standards in Education, Children’s Services and Skills (Ofsted) regulates and inspects to achieve excellence in the care of children and young people, and in education and skills for learners of all ages. It regulates and inspects childcare and children’s social care, and inspects the Children and Family Court Advisory and Support Service (Cafcass), schools, colleges, initial teacher training, further education and skills, adult and community learning, and education and training in prisons and other secure establishments. It assesses council children’s services, and inspects services for children looked after, safeguarding and child protection.

If you would like a copy of this document in a different format, such as large print or Braille, please telephone 0300 123 1231, or email [email protected].

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WARRINGTON BOROUGH COUNCIL

Cabinet – 9 September 2019

Report of Cabinet Councillor C Mitchell, Deputy Leader and Cabinet Member, Member: Corporate Resources

Chief Executive: Professor Steven Broomhead, Chief Executive

Director: Lynton Green, Director of Corporate Services

Senior Responsible Claire Harris, Head of Finance Officer:

Contact Details: Email Address: Telephone: [email protected] 01925 442766

Key Decision No. 070/19

Ward Members: All

TITLE OF REPORT: BUDGET MONITORING 2019/20 – QUARTER 1

1. PURPOSE OF THE REPORT

1.1 In February 2019 the Council approved a budget for 2019/20 of £132.998m which included savings targets of £22.2m.

1.2 The purpose of this report is to provide Cabinet Members with a forecast financial position for the year ending March 2020 and progress against the savings targets of £22.2m included within the current year budget.

2. CONFIDENTIAL OR EXEMPT

2.1 The report is not confidential or exempt.

3. 2019/20 BUDGET

3.1 In February 2019 the Council approved a budget for 2019/20 of £132.998m which included savings targets of £22.2m.

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3.2 Since 2010/11 the Council has achieved over £137m of savings as a result of reduced funding levels from Government. Over the current four year budget cycle it is required to achieve a further £45m.

3.3 Since the budget was approved some changes have been made to the allocation of budgets. The revised budget is shown in para 4.3.

3.4 Included within the 2019/20 budget were funded pressures of £18.3m. This was to cover increasing demand, legislative changes and a continued reduction in income. This provided for a more sustainable baselined budget for 2019/20, although further pressures continue to be identified as a result of legislative and demand factors. These challenges continue to be monitored on a monthly basis through the Council’s Outcomes Based Budgeting process.

3.5 The Outcomes Based Budgeting (OBB) approach is enabling the Council to move towards a sustainable financial future. This process identifies new or continuing pressures and evaluates savings proposals which go some way to offset the pressures. This process underpins a longer term preventative approach and promotes investment to achieve transformational savings and positive change as a result of providing services differently. This will help to ensure the sustainability of the Council’s financial position over the longer term.

3.6 The Council does have historical, well established and robust financial management procedures in place to monitor budgets and mitigate forecast overspends. This has been very successful in the past as an early warning indicator to identify where savings are at risk of not being achieved. In 2019/20 rigorous management and monitoring of the financial position will continue to ensure that all proposals are on track and the OBB Programme Board continues to oversee the delivery of savings.

4. 2019/20 FINANCIAL FORECAST

4.1 At the end of Quarter 1 the financial forecast outturn for 2019/20 is an overspend of £6.0m.

4.2 Generally the forecast at Quarter 1 represents a prudent position as a result of uncertainties that may occur during the year. In previous years a cautious assumption has been made for increases in demand and expenditure arising from anticipated pressures. The forecast for the same period last year was an overspend of £6.1m.

4.3 The ability to sustain a balanced budget in the current year is increasingly difficult with current levels of funding available. The Council is facing significant demographic and demand pressures already in year that are proving challenging to manage. Therefore, at this stage a pragmatic approach to reporting the forecast has been taken with Directors working to identify mitigating savings and cost reduction proposals to offset the overspend. Any mitigations or changes to

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current proposals would follow the OBB process and formal approval routes as required. The forecast position by Directorate is shown in Table 1 below:

Table 1: Forecast Revenue Outturn 2019/20

2019/20 2019/20 2019/20 2019/20 2019/20 Budget Full Year Variance Variance Direction of Directorate £000 Forecast to Budget to Budget Variance £000 £000 % Families & Wellbeing - Adults 41,652 43,964 2,312 5.50 Overspend Families & Wellbeing - Children 38,422 41,217 2,795 7.30 Overspend Families & Wellbeing - Public Health 7,991 8,052 61 0.80 Overspend Families & Wellbeing - Better Care Fund 18,658 18,658 0 0.00 Balanced Environment & Transport 19,738 20,234 496 2.50 Overspend Growth 3,610 3,250 -360 -10.00 Underspend Corporate Services 2,809 5,807 2,998 106.70 Overspend Corporate Finance & Cross Cutting 3,366 1,082 -2,284 -67.90 Underspend TOTAL 136,246 142,264 6,018 4.40 Overspend

4.4 The above represents the Directorates net core budget position and does not include a budget forecast overspend across Dedicated Schools Grant (DSG) of £2,085K. DSG is a ring fenced grant, so any overspend must be carried forward into the following financial year.

5. 2019/20 SAVINGS FORECAST

5.1 At the start of the year the annual savings target to meet the 2019/20 budget gap was £22.2m. These savings are grouped by theme. Each theme is led by a Director and savings progress is monitored monthly by the Outcomes Based Budgeting Board.

5.2 Table 2 shows expected performance to date against these targets. Appendix 1 shows expected performance to date by directorate and scheme. Performance is RAG rated (Red, Amber, Green), with those rated as Red being the least likely to be achieved. There is a high level of confidence in achieving those rated as Green.

Table 2: Forecast Savings Achievement 2019/20

Approved Expected Non Financial Financial Financial ALL THEMES MTFP Savings Achievable RED AMBER GREEN £000 £000 £000 £000 £000 £000

2019/20 Target (current year) 22,167 14,823 7,344 7,344 - 14,823

Percentage of Approved MTFP 67% 33% 33% - 67%

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5.3 Within the current year, £7.3m is anticipated to be unachievable as stated. The Outcomes Base Budgeting (OBB) Board reviews this information on a monthly basis and is reviewing alternative options for facilitating the achievement of required savings.

5.4 The OBB Board is working with officers to ensure that alternative savings are brought forward to ensure the Authority can achieve a balanced budget by the year end.

6. DIRECTORATE SUMMARIES

6.1 The forecast outturn by Directorate is summarised in more detail below:

Corporate Services

6.1.1 Corporate Services Directorate is forecasting a £2,998k overspend as at Quarter 1. A significant proportion of this overspend (£2,425k) relates to historic and current savings held within the Directorate awaiting identification and re-allocation to other Directorates. As savings are identified they will be re-allocated against the appropriate Council services.

6.1.2 The MTFP 2019/20 saving target for the Directorate is £2,005k, of which £430k (21%) is forecast to be achieved.

Corporate Finance & Cross Cutting

6.1.3 Corporate Finance Directorate is forecasting a £2,284k underspend against budget as at Quarter 1. Historic pressures within the Corporate Property heading are offsetting the surplus generated from beneficial investment strategies. This impacts on the significant surplus contribution that Corporate Finance usually makes to the overall Council position. The current forecast makes no allowance for any money to be set aside to reserve for property investments.

6.1.4 The MTFP 2019/20 saving target for the Directorate is £12,777k, of which £9,747k (76%) is forecast to be achieved. In reference to Corporate Finance Directorate savings, Cabinet is requested to approve the transfer (virement) of ‘The Base – B Plan Assumption’ saving line (£90k) to the ‘Strategic Investment’ saving line (£5,150k) for a combined saving of £5,240k. Additionally, Cabinet is requested to approve the transfer (virement) of the ‘Solar Farm’ saving line (£500k) to the ‘Local Authority Energy Company’ line (£1,000k) for a combined saving of £1,500k.

Families and Wellbeing

6.1.5 Families and Wellbeing Directorate is forecasting a net core budget overspend of £5,168k as at Quarter 1. This figure does not include a budget forecast overspend across Dedicated Schools Grant (DSG) High Needs block of £2,085k. DSG is a ring fenced grant, so any overspend must be carried forward into the following financial year.

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6.1.6 The most significant areas of overspend across the Directorate are within Adult Social Care, largely related to Care Purchase, and Children Services, predominately within the Children in Care division. Excluding the DSG overspend of £2,085k, Education and Early Help are forecasting a net core budget overspend of £833k, mainly in relation to transport.

6.1.7 The Better Care Fund (BCF) is forecasting a balanced position. The BCF is a pooled budget with the Clinical Commissioning Group (CCG). The revenue element of the fund is reporting a net nil position, which is reliant upon the CCG agreeing the funding required in respect of increased costs of joint funded packages. The Council has already transferred its share of the required resource to the BCF.

6.1.8 The MTFP 2019/20 saving target for the Directorate is £6,322k, of which £3,831k (61%) is forecast to be achieved. In reference to Families and Wellbeing Directorate savings, Cabinet is requested to approve the transfer (virement) of the ‘Virtual Reality Technology’ saving line (£50k) to the ‘Edge of Care’ saving line (£660k) for a combined saving of £710k.

Environment and Transport

6.1.9 Environment and Transport Directorate is forecasting a year-end overspend of £496k as at Quarter 1. The main areas of overspend are within Operation and Commercial Services (£484k), Development Management (£478k), Directorate (£194k) and Building Control Services (£93k). These overspends are offset by underspends elsewhere, notably, Infrastructure Highways and Engineering (£547k) and Transport for Warrington (£205k).

6.1.10 The MTFP 2019/20 saving target for the Directorate is £973K, of which £725k (75%) is forecast to be achieved.

Growth

6.1.11 Growth Directorate is forecasting an underspend of £360k. This is after costs for delivering the Local Plan of £380k have been deducted as it is assumed these will be met from the MTFP Reserve as agreed by SMT.

6.1.12 The MTFP 2019/20 saving target for the Directorate is £90K, of which the full £90k (100%) is forecast to be achieved.

7. RESERVES POSITION

7.1 The Council has a robust reserves positon to ensure its financial position is sustainable and any unforeseen items of expenditure do not impact on day to day service delivery. Some of these reserves are earmarked and can only be used for specific purposes e.g. Insurance Fund, joint Youth Offending Service, Local Land Charges. The full reserves position is monitored by and reported to the Audit and

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Corporate Governance Committee on an annual basis within the Statement of Accounts. A detailed biannual review is undertaken of all reserves at Quarter 2.

7.2 The Council are required to maintain a strategic reserve of between 3%-5% of its annual budget for unpredicted items of expenditure e.g. natural disasters. It is anticipated that the Council will be within this tolerance during 2019/20 as the reserve is around 3.6%.

7.3 The Council’s additional MTFP reserve was established following the anticipation of severe funding cuts arising from the Government’s Comprehensive Spending Review 2010, announced in 2009. The reserve has been used as a smoothing mechanism to manage sudden funding reductions or to enable savings proposals to be developed that would later allow the reserve to be replenished. The reserve also provides for pump-priming invest to save/cost avoid projects and viability costs for longer term transformational savings to enable them to achieve longer term savings. The value of the MTFP reserve at the end of quarter 1 is £722k. If the Council uses reserves to prop up non-achievement of savings it would reduce the amount of reserves available for transformational change and invest to save projects needed to deliver a longer-term sustainable budget.

7.4 The value of earmarked reserves that can only be used for a specific purpose as at Quarter 1 total £29m. The highest value reserves within the earmarked reserves category are the Insurance Fund, Loans and Investments and Business Rates Smoothing reserves.

7.5 As in previous years a biannual review of reserves will be undertaken and a full list of reserves and their forecast year end position will be reported in the Quarter 2 budget monitoring report to Cabinet in December.

8. FINANCIAL CONSIDERATIONS

8.1 This is a financial report that updates members on the current year budget position as at Quarter 1 2019/20.

9. RISK ASSESSMENT

9.1 There are currently significant risks associated with being able to report a balanced budget and ensure the Council’s long term financial position is sustainable. This is reflected on the Strategic Risk Register, Risk 18 ‘The Council's financial position becomes unstable because of a failure to deliver the planned transformation programme (demand management, commercialisation and digitalisation).’ This risk is reported on quarterly to SMT and Executive Board.

9.2 In preparing the MTFP for 2019/20, savings proposals put forward were risk assessed as to their viability for achievement during 2019/20 and presented to the Executive Board for challenge and scrutiny as part of the OBB process.

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9.3 The anticipated non-achievement of savings this year will have an impact on the use of reserves if these are not able to be mitigated via other means. Using reserves to balance the Council’s budget should only be considered as a short- term solution, and will be avoided wherever possible. Where reserves are being used to offset savings that are being delayed, it is expected that these savings will be fully achievable in the following year.

9.4 Effective governance processes are in place in monitoring the financial impacts of changes to the MTFP e.g. the budget statement, changes in legislation, and the expected NNDR baseline changes. These processes also extend to savings achieved as part of OBB which are overseen by the OBB Programme Board.

10. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

10.1 All Outcomes Based Budget and Service Challenge proposals were subject to an Equality Impact Assessment, and this is also reviewed as part of any formal consultation and implementation process for any savings projects. Any changes that emerge from the original proposals as a result of OBB are also subject to Equality Impact Assessments.

11. CONSULTATION

11.1 Relevant consultation was undertaken with statutory bodies as part of the 2019/20 Outcomes Based Budget process. Any statutory changes resulting from the OBB process will be formally consulted on.

12. REASONS FOR RECOMMENDATION

12.1 The Council is currently forecasting an overspend of £6.0m.

12.2 Historically a prudent forecast is reported at Q1 due to the uncertain nature of some expenditure which may or may not come to fruition as the year progresses. A pragmatic approach is taken in reporting a ‘worst case scenario’ to enable Directors to work up a full range of mitigating savings to ensure a balanced budget can be reported at the end of the year. However it must be noted that if Directorates are unable to mitigate the extent of the savings in year, this may result in service cuts.

12.3 It is important for Members to have a detailed view of the current budget position and pressures to enable them to play a full part in the decision making process and the implications that brings, to ensure a balanced budget can be reported at the end of the year.

13. RECOMMENDATION

13.1 The Cabinet is recommended to:

(i) Note the draft forecast outturn as at Quarter 1 of £6.0m overspend.

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(ii) Note the intention to continue to review other budgets, including those areas where savings have been delayed, and the possible need to use reserves to balance the budget.

(iii) Note that a full review of reserves will be undertaken and reported to Cabinet at Quarter 2.

(iv) Note the progress on delivery of savings targets as at Quarter 1.

(v) Note that Executive Directors will continue to look at ways to bring spend back into line with the approved budget.

(vi) Approve the transfers (virements) referred to in paragraphs 6.1.4 and 6.1.8 of the report.

14. BACKGROUND PAPERS

2019/20 Budget approved at Council on 25 February 2019.

Contacts for Background Papers:

Name E-mail Telephone Claire Harris [email protected] 01925 44 2766

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Appendix 1: Performance of Savings by Directorate and Scheme

CORPORATE SERVICES DIRECTORATE 2019-20 SAVINGS Savings Savings 2019-20 Financial Annual Achieved Scheme Actuals Achieved Via Forecast 2019-2020 Savings Description Target RAG Savings Via RAG Ratings To Date Alternative Shortfall Savings Ratings Forecast Original Methods Methods Business Transformation to deliver a new operating model for 2020 for back & R 1,500 R 0 0 0 0 1,500 middle office services ICT estate centralisation G 100 G 0 100 100 0 0 Capitalisation to new office project - one off G 100 G 0 100 100 0 0 Essential car user review G 100 G 0 100 100 0 0 Reduce cost to Authority of training through increasing income and reducing G 65 G 0 65 65 0 0 external spend Postage review G 50 R 0 30 30 0 20 St Werburgh's - one off R 25 R 0 0 0 0 25 Democratic Services R 25 R 0 0 0 0 25 Corporate Review of all Directorates Administration G 24 G 0 24 24 0 0 Financial Protection Team – increase weekly administration fee by £1 G 6 G 0 6 6 0 0 Officer Travel G 5 G 0 5 5 0 0 Change start time of Council meetings R 4 R 0 0 0 0 4 Legal Services subscriptions R 1 R 0 0 0 0 1 Total Corporate Services Directorate 2,005 0 430 430 0 1,575

CORPORATE FINANCE DIRECTORATE 2019-20 SAVINGS Savings Savings 2019-20 Financial Annual Achieved Scheme Actuals Achieved Via Forecast 2019-2020 Savings Description Target RAG Savings Via RAG Ratings To Date Alternative Shortfall Savings Ratings Forecast Original Methods Methods Strategic Investment G 5,150 R 0 2,950 2,950 0 2,200 MRP saving - use of capital receipts G 4,000 G 0 4,000 4,000 0 0 Loans to Registered Housing Providers G 1,500 G 0 2,000 2,000 0 -500 Local Authority Energy Company G 1,000 R 0 500 500 0 500 Solar Farm R 500 R 0 0 0 0 500 Housing company G 300 R 0 0 0 0 300 Parish Councils - Council Tax Support Allowance G 207 G 0 207 207 0 0 The Base - B Plan Assumption G 90 G 0 90 90 0 0 Corporate Review of all Directorates Administration R 30 R 0 0 0 0 30 Total Corporate Finance Directorate 12,777 0 9,747 9,747 0 3,030

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FAMILIES & WELLBEING DIRECTORATE 2019-20 SAVINGS Savings Savings 2019-20 Financial Annual Achieved Scheme Actuals Achieved Via Forecast 2019-2020 Savings Description Target RAG Savings Via RAG Ratings To Date Alternative Shortfall Savings Ratings Forecast Original Methods Methods Demand Management - Adult Social Care Culture Change / Year 3 A 2,000 R 238 1,500 1,500 0 500 ASC Contract review savings G 500 G 125 500 500 0 0 Assistive Technology & Telecare Project / Year 3 of 4 A 400 R 7 30 30 0 370 ASC Staffing restructure G 250 G 62 250 250 0 0 Out of Borough Adult placements project / Year 3 of 4 G 180 G 45 180 180 0 0 Reduce dependancy by growing reablement & provide service to people discharged R 174 R 0 0 0 0 174 from hospital with an increase in care packages / Year 3 of 4 Review of ASC Admin Support G 50 G 12 50 50 0 0 Review of support to the Safeguarding Board G 50 R 0 0 0 0 50 Total Adult Social Care - FWB2 3,604 489 2,510 2,510 0 1,094 Edge of Care / Recruitment & Retention implementation - Ext. Agency Placement A 660 R 0 0 0 0 660 Costs / Year 3 of 4 CSC restructure G 125 G 31 125 125 0 0 Use of Virtual Reality in social work assessments, training and foster care G 50 G 12 50 50 0 0 recruitment Total Children Social Care - FWB3 835 43 175 175 0 660 Educ, EH & SEN restructure G 125 G 31 125 125 0 0 Total - Education, Early Help & SEN - FWB4 125 31 125 125 0 0 Neighbourhood restructure - managed reduction in community based activities G 294 G 74 294 294 0 0 Police Community Support Officers G 167 G 72 167 167 0 0 Reduce Culture Warrington Management Fee G 130 G 32 130 130 0 0 Public Health - Senior management restructure G 100 G 25 100 100 0 0 Review support to public health delivery G 60 G 15 60 60 0 0 Remove dual diagnosis post and review detox/rehab framework G 50 G 12 50 50 0 0 Reduction in Community Initiatives Fund G 20 G 5 20 20 0 0 Total - Director of Public Health - FWB5 821 235 821 821 0 0 Corporate Review of all Directorates Administration A 937 R 0 200 200 0 737 Total - FWB Cross Cutting 937 0 200 200 0 737 Total Families and Wellbeing Directorate 6,322 798 3,831 3,831 0 2,491

ENVIRONMENT & TRANSPORT DIRECTORATE 2019-20 SAVINGS Savings Savings 2019-20 Financial Annual Achieved Scheme Actuals Achieved Via Forecast 2019-2020 Savings Description Target RAG Savings Via RAG Ratings To Date Alternative Shortfall Savings Ratings Forecast Original Methods Methods Corporate Review of all Directorates Administration R 209 R 0 0 0 0 209 Bus Lane Enforcement G 132 G 0 132 132 0 0 Increase Cremation Fees G 125 G 0 125 125 0 0 Capitalise further maintenance work G 100 G 0 100 100 0 0 Director of ERGE post removed from establishment G 80 G 0 80 80 0 0 Local Bus Revenue Support - General G 50 G 0 50 50 0 0 Review of operational structures G 50 G 0 50 50 0 0 Increase Green Waste charge G 40 G 0 40 40 0 0 Review of Service delivery G 35 G 0 35 35 0 0 Section 106 Finances G 32 G 0 32 32 0 0 Open Spaces maintenance G 30 G 0 30 30 0 0 Christmas lights - alternative funding - sponsorship R 24 R 0 0 0 0 24 Reduction in Dial-a-Ride support G 16 G 0 16 16 0 0 Agency Budget G 14 G 0 14 14 0 0 Decommission storage facility Sandy Lane G 11 R 0 6 6 0 5 Pay & Display Charges R 10 R 0 0 0 0 10 Business Support review of structure G 10 G 0 10 10 0 0 Green flag accreditation G 5 G 0 5 5 0 0 Total Environment and Transport Directorate 973 0 725 725 0 248

GROWTH DIRECTORATE 2019-20 SAVINGS Savings Savings 2019-20 Financial Annual Achieved Scheme Actuals Achieved Via Forecast 2019-2020 Savings Description Target RAG Savings Via RAG Ratings To Date Alternative Shortfall Savings Ratings Forecast Original Methods Methods Review contract for Mickeldore support G 50 G 0 50 50 0 0 Reduce staffing establishment G 40 G 0 40 40 0 0 Total Growth Directorate 90 0 90 90 0 0

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WARRINGTON BOROUGH COUNCIL

CABINET – 9 September 2019

Report of Cabinet Councillor C Mitchell, Deputy Leader and Cabinet Member, Member: Corporate Resources

Director: Lynton Green, Deputy Chief Executive & Director of Corporate Services

Senior Responsible Danny Mather, Head of Corporate Finance Officer:

Contact Details: Email Address: Telephone: [email protected] 01925 443925

Key Decision No. 071/18

Ward Members: All

TITLE OF REPORT: CAPITAL PROGRAMME MONITORING 2019/20 – QUARTER 1 (April – June)

1. PURPOSE

1.1 This report provides the current position and progress of the 2019/20 Capital Investment Programme and it’s financing as at 30 June 2019. It takes into account both financial and scheme progress monitoring undertaken with service area project officers. To aid Members understanding the programmes been split into the following categories:

• Borrowing Projects [Revenue Cost to the Council] • Grant/Contribution/Capital Receipts Projects [No Revenue Cost to the Council] • Invest to Save Projects [No Revenue Costs to the Council – a return is generated]

2. CONFIDENTIAL OR EXEMPT

2.1 The report is not confidential or exempt.

3. INTRODUCTION AND BACKGROUND

3.1 A summary of the Quarter 1 capital monitoring position is given in the table below. Appendix 1 provides a full breakdown of the programme on a scheme by scheme basis.

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2019/20 2019/20 2019/20 Total 2019/20 Approved Quarter 1 Spend at Commitments Variance Capital Programme % Spent (MTFP) Budget Quarter 1 £m £m £m £m £m Families & Wellbeing 14.893 18.511 1.649 2.335 - 14.527 22% Corporate Services 5.395 5.541 0.249 0.098 - 5.194 6% Environment & Transport 51.076 62.494 8.745 34.387 - 19.362 69% Growth 1.148 15.362 0.797 3.582 - 10.983 29% 2019/20 Capital Programme (excluding 72.512 101.907 11.439 40.402 - 50.065 51% Invest to Save) Invest to Save 35.133 29.673 9.211 18.110 - 2.352 92% Invest for Income or Return 296.653 401.409 87.373 0.119 - 313.917 22% 2019/20 Invest to Save Programme 331.786 431.082 96.585 18.229 - 316.269 27% 2019/20 Total Capital Programme 404.298 532.989 108.024 58.631 - 366.334 31%

3.2 In setting the Council’s 2019/20 – 2021/22 Capital Programme, the Council incorporated an ambitious set of schemes including £331.786m of Invest to Save schemes. Due to the size of the Invest to Save programme, if any slippage takes place in year this distorts the percentage spend and shows low level spend against budget. The above table differentiates the programme between the capital programme, both excluding and including invest to save schemes, which should give greater accountability.

3.3 The table shows committed spend for the capital programme, excluding ‘Invest to Save’ schemes, as 51% for Q1 this compares to 52% for Q1 last year. Including ‘Invest to Save’ schemes the committed spend reduces to 31%, which has slightly reduced from the comparable Q1 figure from last year of 34%. Please note that commitments included in the committed spend may relate to multi-year commitments thereby distorting the in-year comparisons.

3.4 The % graphs below show this is similar to last year’s comparable but a marked improvement from the 2017/18 financial year, both including and excluding ‘Invest to Save’ schemes. The graphs below the % graphs shows spend and commitments at Q1 on a year by year basis.

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3.5 All S106 projects (fully financed by S106 monies) that are currently in the capital programme are detailed in Appendix 2. S106 monies received have to be spent as per the S106 agreement and within timeframes to avoid returning the monies plus interest.

3.6 Variances from budgets to actual expenditure at Directorate levels are:

• Families & Wellbeing – currently showing 78% underspend against budget, this is due to low level of spend and commitments in Quarter 1. There has also been several new projects added for 2019/20.

• Corporate Services – currently showing 94% underspend against budget, this is due to low level of spend and commitments in Quarter 1 particularly in relation to the Corporate Redundancy Costs, which is an unknown cost until the end of the financial year and also the Transformation programme that’s dealt with in detail below. Major scheme update detailed below:

Warrington 20:20 Transformation Programme – HR work stream almost complete, with last releases scheduled over Summer 2019. Benefits taken from service budgets in line with planned targets. Contact Centre re-planning underway with Assistant Director and Head of Service. New proposal has regular releases, with key services prioritised for 2019, and will complete by Spring 2020. Benefits to be re-profiled when delivery plan is approved / baselined.

Discovery phase concluding for Revenue & Benefits, Complaints, FOIs, SARs and Registrars - recommendations produced in July & August 2019 and under review by Business Service Owners. Programme Board to validate costs, benefits and agree delivery priorities for 2019-20, across the programme. Families and Wellbeing (excluding Public Protection) currently paused.

Largest risks to the programme are still the ability to attract and retain skilled resources and overall affordability, due to some slippage in the baseline plan and organisational readiness to support and accept pace of change to people, systems and processes.

• Environment & Transport – currently showing 31% underspend against budget, this shows a high level of spend and commitments and that schemes are progressing well at Quarter 1. There has also been several new projects added for 2019/20. Major scheme updates detailed below:

Western Link – Pre construction phase funding and contract award delegations approved at Cabinet in July 2019, following DfT conditional funding allocation of £142.5m. Works to commission various suppliers/partners are underway as well as forming a new in-house delivery team. Provisional DfT grant allocation to this stage of the scheme - £21.560m

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Depot Amalgamation – Project on hold pending decision on site location and configuration.

• Growth – currently showing 71% underspend against budget, this is due to low level of spend and commitments in Quarter 1. There has also been several new projects added for 2019/20. Major scheme updates detailed below:

Great Sankey Hub – The hub is now complete and fully operational, with few reported issues and good usage. The July 2017 report confirmed the total project cost as £19.0m and the Council’s overall funding of all relevant aspects of the project being £14.731m. The current total project cost is now £20.8m and the Council’s overall funding of all relevant aspects of the project is now £16.531m.

The application of the contract provisions to the areas of dispute is nearly exhausted and it is expected that there will be a difference of opinion over the final contract value.

We are still in negotiation with Great Sankey High School to alter the basis of the leases between the Council and the school, which is subject to ESFA approval.

The delay in the completion of the pool has triggered the damages provisions within the contract, which are being applied in full and will have a significant effect on the overall outturn costs by reducing them. The extent to which the contractor disputes the damages provisions or makes additional claims will also affect this outturn and there is still a risk that this contract will enter formal dispute resolution and any award against the Council has the potential to increase the outturn costs.

Bewsey & Dallam Hub – Project is now on site and all groundwork complete together with initial casting of the pool base. Some contamination of the site had been found which was a WBC risk and this is currently being valued but is within contingency levels. Slight delay of a couple of weeks following adverse weather but this is expected to be recovered during steel erection stage. Project is currently within budget.

• Invest to Save Programme – currently showing 73% under-spend against Quarter 1 budget. Updates on major invest to save schemes are:

Time Square – The final construction phase for Time Square is progressing well, with a reported completion date from the contractor of 8th July 2019. Following this there will be a fit out period by both the Council and the occupiers before a phased opening between December 2019 and March 2020.

The Executive Board approved a final budget for the scheme of £142.5m and the estimated project expenditure is within this envelope. The scheme has

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The work required to make an effective transition between the two offices is now more fully understood and the transition between the current ways of working and the new ways of working is progressing well.

Housing Company – The Local Housing Companies were incorporated in February 2019. The companies (named ‘Incrementum’) have three officers of the Council as Directors, and an inaugural Board Meeting was held in April 2019.

The Development Company has accessed design and construction services for its two initial sites at Sycamore Lane and Chatfield Drive (‘Foxwood’) via the Scape Venture Framework Agreement. An initial master-planning and feasibility appraisal has commenced with Wates Construction. The local planning authority has provided comments on the initial proposals, and Business Plans for these first two sites are being progressed in parallel with the master-planning exercises. The Business Cases for the two sites are programmed to be taken to the September 2019 Cabinet for funding approval.

The Housing Companies have also been successful in attracting an offer of £1.8m of Accelerated Construction funding from Homes England.

Subject to the approval of the Business Plans from the Cabinet, planning applications for approximately 150 new houses on the Sycamore Lane and Chatfield Drive sites are expected to be submitted in late 2019/early 2020. Construction of the new housing is anticipated to commence in 2020.

Business cases for the first two housing developments are to be submitted to the Cabinet in September 2019. Subject to approval, full planning applications should be submitted in December 2019 with a view to commencing on site in June 2020, with the schemes fully complete by April 2022.

Feasibility work has commenced on three further sites in the Borough.

Commercial Property Programme:

Birchwood Park – The Council acquired the benefit of Birchwood Park (Business Park in Warrington) in September 2017. There is careful and detailed ongoing management of the Park through both a Council officer group and external professional bodies. The performance of the asset manager Patrizia is also being monitored on a weekly basis to ensure the Park continues to be operated on a commercial basis for the benefit of the Council.

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A three year Business Plan is in place that sets the standards of performance, income expectation and cost management through to 2021.

In recent months, new lettings at the Park have maintained with occupancy (currently over 95%) remaining higher than when the Park was acquired with annual gross income in excess of £14 million.

Further development of the Park for the purposes of economic growth and more rental income has commenced. Construction is underway for up to 169,785 square feet (15,773 square metres) of prime industrial accommodation to meet with current demand in the region.

Other Property Investment – Alongside Birchwood Park, the Council has carefully acquired a number of property investment assets to secure further net annual income. This small portfolio covers different business classes, locations and size of investment ensuring a balanced approach to spread and minimise risk to the Council. This portfolio is also managed by a professional team supported by external investment market expertise. The income in 2018/19 from these assets exceeded forecast.

Redwood Bank – Continues to operate well and to business plan. A resident of Warrington raised an objection to the Council’s 2017/18 accounts regarding Redwood Bank. The Council’s external auditor Grant Thornton (GT) has reviewed the objection and informed the Audit & Corporate Governance Committee at its meeting of 25th July 2019 that it will issuing its findings shortly. A new objection to the 2018/19 accounts has also been raised that GT are currently investigating.

Corporate Loans – The Council’s loans programme continues to operate well to policy and budget. Full update position is reported to the Audit and Corporate Governance Committee on a quarterly basis.

Solar Parks – The York Solar farm development got on site in April 2019 and progress is good, anticipated completion and commissioning in October with operation from November. Legal agreements for the Operation and Maintenance and the Energy Contract (PPA) are well advanced.

The Hull Solar farm received funder approval in June, anticipated on site in August with completion and commissioning December.

3.7 The Medium Term Financial Plan (MTFP) 2019/20 Capital Budget agreed by Full Council in February 2019 was £404.298m. Capital expenditure in 2019/20 is currently estimated at £532.989m, which is £128.691m higher than the MTFP agreed budget. The changes to the budget are detailed in Appendix 3 and are summarised as follows:-

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Changes to Capital Programme £m MTFP Approved Budget 404.298 Budget Changes: 2018/19 under/over spends 112.109 Re-profiling budgets 12.063 New Projects (grant/contributions) 2.136 New Projects (unsupported borrowing) 194.423 Re-phasing to latter years - 192.026 Removal of Project/Budget (saving) - 0.014 Current Projected Expenditure (Quarter 1) 532.989

4. STATUS OF 2019/20 PROJECTS

4.1 There are currently 246 schemes in the capital programme. All schemes have been reviewed into the following categories to identify the level of projected expenditure in 2019/20:-

• Already complete - £0.166m • Schemes on site/underway - £486.613m • Schemes Programmed in year - £21.102m • Not yet programmed - £25.108m

4.2 The first three categories give a good indication of the level of confirmed expenditure that will be undertaken during the year. Appendix 4 provides an analysis of schemes not yet programmed.

4.3 Regular monitoring is being undertaken to ensure schemes are delivered in accordance with current planned timescales.

5. CHANGES TO CURRENT CAPITAL INVESTMENT PROGRAMME

5.1 Projected expenditure for the year is £532.989m and is £128.691m higher than the MTFP budget. The table below gives a comparison of the current programme compared to the original programme approved in February 2019 and the Q1 budget.

2019/20 2019/20 Approved Quarter 1 Capital Programme (MTFP) Budget £m £m Families & Wellbeing 14.893 18.511 Corporate Services 5.395 5.541 Environment & Transport 51.076 62.494 Growth 1.148 15.362 Invest to Save Programme 331.786 431.082 2019/20 Capital Programme 404.298 532.989

5.2 The reasons for the increase in budget are summarised in Appendix 3.

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6. VARIANCES TO THE PROGRAMME IN EXCESS OF £100K

6.1 Variances to the Capital Programme in excess of £100k on a scheme by scheme basis are set out in Appendix 5 for noting.

7. FINANCING OF THE CAPITAL PROGRAMME

7.1 At Quarter 1 the Council has a fully funded capital programme, which is summarised in the table below:

2019/20 2019/20 Approved Quarter 1 Capital Programme Funding (MTFP) Budget £m £m Unsupported Borrowing - Corporate 39.971 57.994 Unsupported Borrowing - Invest to Save 331.786 431.075 Capital Grants and Reserves 17.545 24.424 Capital Receipts 3.350 4.566 Revenue Funding - 0.133 External Funding 11.646 14.797 2019/20 Capital Programme Funding 404.298 532.989

8. CAPITAL RECEIPTS FORECAST

8.1 Capital Receipts form an important element of the financing of the capital programme. The table below summarises the capital receipts position at the end of Quarter 1.

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CAPITAL RECEIPTS FORECAST Forecast Capital Receipts (Net Receipts after deductions) 2019/20 2020/21 2021/22 2022/23 Future Receipts £m £m £m £m £m Council Capital Receipts Brought Forward 3.250 6.819 2.233 0.398 - 1.475 Potential Future Year Receipts Lovely Lane Shops 0.240 - - - - Covenant Release Gemini 0.150 - - - - Miscellaneous PSPIc Review Disposals 0.150 0.100 - - - MRR & MTFP Adjustment 10.221 - - - - Garven Place/Bank House - 0.200 - - - Foxwood former school site - - 0.750 - - Sycamore Lane former school site - - 0.750 - - Corporate Property Review Phase 1 - Chester Road - - - - 2.000 Former Bewsey Old School - - - - 0.500 School Brow disposal - - - - 1.500 Grappenhall Hall former school site - - - - 3.000 GGHT/Torus HRA Transfer - VAT shelter 0.240 0.250 0.250 0.250 0.750 GGHT/Torus Future Right to Buy Sales 1.134 1.000 0.440 0.440 0.440 TOTAL Council Capital Receipts Available 15.385 8.369 4.423 1.088 6.715 Planned Use of Council Capital Receipts Families & Wellbeing 0.121 - - - - Corporate Services 4.223 2.000 2.000 2.438 2.000 Environment & Transport - - 2.025 0.125 - Growth 0.222 0.136 - - - MTFP Allocation 4.000 4.000 - - - TOTAL Capital Receipts Usage 8.566 6.136 4.025 2.563 2.000 TOTAL Council Capital Receipts Carried Forward 6.819 2.233 0.398 - 1.475 4.715

9. NEW SCHEMES SINCE MTFP

9.1 Since setting the capital programme in February 2019 the following scheme(s) have been incorporated into the 2019/20 programme under the Deputy Chief Executive and Director of Corporate Services delegated powers.

External Total No. of Capital Bid Description Total Funding Borrowing Description of Project Bids (New Bids 2019-22) £m £m £m Working in partnership with Great Sankey Parish Council develop proposals to improve the current public open space at Parsonage Way for the local 1 Parsonage Way Playing Field 0.160 0.080 0.080 community, including installation of a new children's play area, new footway link, improved drainage, new boundary fencing and access and various landscaping improvements. 0.160 0.080 0.080

10. ADDITIONAL BUDGET REQUEST

10.1 At the time of establishing the Council’s investment in Redwood Bank the option to capitalise the borrowing costs during the first years of operation (section 11.6 of the Bank Case report) was agreed by the Council’s Executive Board on 16 January 2017. In order to cover this capitalisation, a further capital allocation of £747k is required for 2019/20.

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11. FEASIBILITY PROJECTS

11.1 Appendix 6 provides a summary of all feasibility projects totalling £4.780m. This also shows the breakdown of funding identified and the borrowing element that will be requested when the project is considered for insertion into the capital programme.

11.2 Members need to be aware that the cost of the feasibility projects will become a revenue cost in the future, if capital projects do not materialise. This would then need to be picked up by the MTFP as a pressure.

12. FINANCIAL CONSIDERATIONS

12.1 Dealt with in the body of the report and the risk registers of individual schemes.

13. RISK ASSESSMENT

13.1 The major risks facing the capital programme include multiple funding streams, planning, procurement, delivery of the programme, capacity, supplier and inflation risks.

14. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

14.1 These are fully integrated into the Capital Programme.

15. CONSULTATION

15.1 All capital programme project officers, CIPG and SMT are consulted on the monitoring of the capital programme.

16. REASONS FOR RECOMMENDATION

16.1 To ensure effective corporate governance procedures are in place for the management of the capital programme.

17. RECOMMENDATION

17.1 The Cabinet is recommended to:

(i) Note the monitoring report.

(ii) Approve amendments to the 2019/20 capital programme.

(iii) Endorse the scheme approved by the Deputy Chief Executive and Director of Corporate Services under delegated powers (section 9).

(iv) Agree the cost of capitalisation of borrowing costs of £747k (section 10.1).

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18. BACKGROUND PAPERS

Capital Programme Model

Contacts for Background Papers:

Name E-mail Telephone Danny Mather [email protected] 01925 442344

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Agenda Item 8 Appendix 1 Detailed Budget Monitoring (by Project Funding Type)

Borrowing Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m It has been agreed by Executive Board that Warrington Borough Council will work with the Plans and designs are currently being drawn up charity On Side and Warrington Youth Club in which are expected to follow the design, height and progressing a Youth Zone within the Stadium 1 Warrington Youth Zone 2.999 - - - 2.999 - - - massing expectations for the Stadium Quarter as Quarter of the town. A site of up to 3,200 Square provided by the first phases of the development, Metres will be provided by Warrington Borough with the UTC and the Base. Council adjacent to the University Technical College for this development. The Community Asset Development Fund exists to Upgrading Community & Youth support the refurbishment of buildings managed 2 Facilities (deliver Community Asset 0.043 - - - 0.043 - - - Various projects complete. within the community. It supports community, Transfer) partner-owned and transferred assets. The refurbishment programme is underway. Oakwood Community Centre Oakwood Community Centre refurbishment of 3 0.038 - - - 0.038 - - - Birchwood Park will then redecorate the centre Refurbishment - Toilets & Flooring toilets and flooring. free of charge. To deliver quality CCTV systems within licenced Installation of the new CCTV systems within 4 CCTV Procurement 0.423 0.000 0.424 0.001 - - - vehicles to safeguard both drivers and passengers. vehicles has now commenced. Surveys been undertaken on all libraries in scope. Relevant business cases for reconfiguration being Warrington Public Libraries Library building refurbishment and 5 0.400 0.015 0.137 - 0.248 0.613 - - developed. Total spend level predicted is higher Improvement Programme reconfiguration programme. than allocated budget. Prioritisation process to be undertaken in July. Subsequent to the major investments in ICT infrastructure, carried out in 2010-11, known as the ICT Modernisation Programme, the following Network Services Improvement Programme and 6 Network Improvement Programme 0.032 0.007 0.005 - 0.020 0.046 - - projects are required to maintain the momentum Aruba HRP Project both expected to be completed of that initial investment in modernising the in this financial year. Council’s systems and to cater for growth changes since the 2010/11 capacity planning work.

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Agenda Item 8 Borrowing Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m

There is a hold on the Monitor replacement programme for the time being until decisions have been made regarding the transitioning to the new Council building. The Win 10 deployment continues, replacing out of warranty kit, the majority of which will be in this year - 2019/20. Continuing to replace with W10 devices. WIN 10 has been rolled out currently to 78% of the estate. Continuing the support of management systems to Need to complete the rollout by the end of enable the provision of all hardware as well as 2019/20. Surplus laptops are going back into stock upgrading, replacing, and rationalising hardware for reallocation so the stock is still being utilised. End User Computing - Management and software within the 'End User Computing 7 0.596 0.147 0.003 - 0.447 0.624 - - The cycle of replacing out of warranty kit will Systems & Technologies Environment (EUCE) to provide a consistent continue and a new capital bid will be submitted platform currently based on Windows 10 and for the next 5 year cycle. Office 2013 together with associated productivity Three Deployment Technicians are currently tools. employed for the Win 10 deployment. We are currently recruiting for a fourth to continue with the WIN 10 rollout and to assist with the transition to the new Council building. This capital money is also being used for Stock as replacing out of warranty or broken Kit, so stock levels have to be maintained to ensure the continuity of Service for all ICT items.

Extreme HRP Project has been completed at the Investment into the Council's ICT & Print Service beginning of this financial year. The Avaya Infrastructure. platform is being upgraded to CRM8 which is a - Replace hardware which is coming out of newly identified project, this is being funded by the support. remaining budget from the Extreme HRP Project 8 ICT & Print Service 0.484 0.021 0.042 - 0.421 0.520 - - - Upgrade or replace software which is aging and and the remaining budget from the Wireless HRP going out of support. Project which has also been closed this year. H&S - Increase capacity to meet our evolving business Risk Remediation for Schools is continuing and is need and growth and to address specific risks that currently expected to be completed at the end of are known to date. this year. Network Access Control and SIEM replacement projects are due to start this year.

To provide the Council with an audio visual system that will give it the facilities not only to ensure that attendees are provided with facilities that allow for the effective running of the meetings but The project is currently being re-evaluated. 9 Town Hall Audio Visual Equipment 0.145 0.074 - - 0.071 - - - also to allow the Council to meet the expectations Engaged Building Services Colleagues to help of a very social media aware public. Moreover, it assess the viability of the initial proposals. allows the Council to provide direct communication with the public, showing important debates and decision-making in full. A new committee management system to replace Procurement process and desired product to be 10 Committee Management System 0.060 - - - 0.060 - - - the existing CMIS product. determined. 11 Capitalisation of Potholes 0.528 - - - 0.528 0.500 0.500 0.500 Capitalisation of Pothole expenditure. Works progressing for financial year 2019/20.

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Agenda Item 8 Borrowing Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m This has two programmes running Footways (25 Schemes) and Unclassified Roads (43 Schemes) Additional road maintenance resurfacing and 12 Highways Maintenance Investment 5.000 0.848 2.579 - 1.573 5.000 2.109 - and A Class and other strategic roads (10 asset improvement works across the Borough. Schemes). Both programmes are on target by March 2020. Install a new land drainage system. This will Project is complete. Additional works have been Culcheth Village Green Drainage 13 0.010 0.005 0.013 0.008 - - - assist in managing surface water and to prevent identified but are delayed until the weather Scheme flooding to the Village Green. improves. Final account is being finalised. Major refurbishment of the Bus Interchange to New turnstiles on order, roofing work subject to Warrington Bus Interchange bring the facility back to a satisfactory condition weather profile (waterproofing needs periods of 14 0.443 0.026 0.107 - 0.309 - - - Refurbishment and to maximise compliance to Health & Safety dry weather). Benches to be confirmed ASAP. requirements for staff and other users. Lighting project being scoped. Warrington Allotments Improvement Update allotments with improved water/toilet 15 0.021 - - - 0.021 - - - Completion October 2019. Programme facilities and infrastructure. Alexander Park Developments Phase Refurbish the existing children’s play area and 16 0.034 0.000 0.004 - 0.029 - - - Completion winter 2019. 1 - Play Area Phase 2 - Pavilion enhance facilities within the site. Victoria Park Bowling Pavilion Second phase of Minor Parks Investments. 17 0.149 - - - 0.149 - - - Completion summer 2019. Extension Redesign of existing facilities. Second phase of Minor Parks Investments. Volunteer Support & Quick Win 18 0.037 - - - 0.037 - - - Parkland enhancements in partnership with Completion 2019. Projects friends groups. Lymm Dam Site Infrastructure Second phase of Minor Parks Investments. 19 0.022 0.053 0.055 0.086 - - - Completion March 2020. Refurbishment Upgrading of easy access trail and infrastructure . Birchwood Forest Park Ranger & Second phase of Minor Parks Investments. 20 Sports Changing Building 0.100 - - - 0.100 0.100 - - Completion Autumn 2020. Redesign of building facilities. Refurbishment To provide new accessible WC facilities on the 21 Lymm Dam WC 0.020 - - - 0.020 - - - former public toilet site. Once installed the unit New Project 2019/20. will be managed by the Parish Council. St Elphins Park Pavilion Re-design and upgrade the pavilions at St Elphins 22 0.100 - - - 0.100 - - - New Project 2019/20. Refurbishment Park. Four claims have now been accepted and Blight claims incurred as a direct result of the now properties at Baronet Mews acquired. A number of 23 Western Link Blight Claims 1.962 0.379 - - 1.583 - - - confirmed route of the Western Link. further claims have been received and are being reviewed by the Project Team. Initial stage of works (Phase 3a) contract awarded (continuation of widening of Burtonwood Rd) is now fully complete on site and delivered under Omega Local Highways Phase 3 - budget. Phase 3b construction contract award Lingley Green Avenue/Whittle A series of highway improvements to key junctions 24 1.912 0.465 0.846 - 0.601 3.997 0.851 - approved at Cabinet in May 2019, site works to Avenue/Burtonwood Road Junction around the Omega site. commence in November. Phase 3c design ongoing Improvements and on site for late 2020. Remainder of spend subject to further options testing, design and procurement, which is ongoing. Improve both vehicular and pedestrian linkages Springfield Street Public Realm 25 0.034 0.003 0.026 - 0.005 - - - and facilities allowing for increased legibility Project now complete. Improvements within the Cultural Quarter of the borough.

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Improve the surrounding road network Tanners Design works underway to support Stadium Lane, Dallam Lane, Winwick Street etc. are required 26 Stadium Quarter Improvements 0.158 0.006 0.047 - 0.104 0.956 0.050 - Quarter masterplan, construction likely to to support the revised Masterplan and to create a commence Q1 2020/21. gateway to the town centre for all highway users. Provide facilities for pedestrians and secondary Lymm May Queen Field Emergency access to address the safety concerns previously 27 0.034 - - - 0.034 - - - Project substantially complete. Access identified relating to the emergency access and evacuation of the field. Works to redevelop Woolston are complete with Gatewarth site redevelopment approaching Community Recycling Centres Works to improve Community Recycling Centre 28 0.651 0.021 0.640 0.010 0.035 - - completion. Short delay to programme due to Infrastructure Investment (CRC) sites at Woolston and Gatewarth. original contractor administration. Project remains within budget. Travellers transit site facility to ensure other sites 29 Travellers transit site 0.137 - 0.006 - 0.131 1.586 0.203 - Awaiting decision on site. are not misused. Restoration and regeneration works to the Walton Estate, including the indoor riding school, heritage 30 Walton Estate Old Riding School 0.020 - 0.010 - 0.010 - - - Project complete. yard, stable block and glasshouses to enable a subsequent education and events programme. Extension to scope of original scheme to bring forward the redevelopment of the Potting Sheds Works substantially complete and handed over to 31 Walton Estate Conservatory Range 0.250 - - - 0.250 - - - adjacent to complete the development and Council. increase the offer to partner organisations and potential income generation. The supply/installation/operation of a high/low Planning application lodged by the operator Jungle Walton Hall High/Low Ropes 32 0.010 - - - 0.010 - - - ropes activity course at Walton Hall & Gardens. To Parcs. Works to start on site in late 2019, subject Concession cover one off capital contribution to the scheme. to planning permission. Structurally improve the supporting river bank and Construction works well progressed, river wall wall that is situated to the rear surrounding the now fully complete, Cenotaph obelisk now back in 33 Cenotaph Riverbank Stabilisation 1.382 0.446 0.861 - 0.075 0.020 - - Cenotaph. Also look to upgrade the surrounding place as of 21st July, completion in late September public realm in the immediate vicinity of the 2019. Cenotaph as necessary. Co-locate two existing control rooms that manage Combined Control Centre building works the Town Centre CCTV and the Urban Traffic approaching completion, CT fit out and security Warrington Borough Council Management Control which are currently located 34 1.003 0.297 1.205 0.500 0.020 - - infrastructure investment at the Town Hall is Combined Control Room at different sites into one location, enabling underway, following a report to Cabinet in May benefits to be realised from a closer working 2019. Project to be complete in late 2019. relationship. Walton ‘Old Laundry’ building – Repair and preservation of the Walton ‘Old 35 prevention of failure and further 0.003 - 0.014 0.011 - - - Laundry’ building, enabling a reintroduction of Works now fully completed. deterioration productive use to benefit the estate. Vehicle & Plant asset replacement Replace fleet assets which are operating beyond Orders delivered for new assets in Q1 FY18/19. 36 programme (Environmental 0.356 - - - 0.356 - - - their specified economic life which are no longer Work in hand to full value of project with delivery Operations) fit for purpose. in Q1 & Q2 of 2019/20.

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Agenda Item 8 Borrowing Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m

Supply and delivery of new Refuse Collection First 6 vehicle orders were delivered within the Refuse Collection Vehicle Vehicles to replace those which are operating financial year 18/19. Future orders placed with 37 2.309 0.976 0.035 - 1.299 1.331 - - Replacements beyond their economical asset life and are no advanced delivery dates being in April 2019, longer fit for purpose to run an efficient operation. September 2019 and April 2020. The supply and delivery of new grounds Grounds Maintenance Plant maintenance plant and equipment assets, 38 0.651 - - - 0.651 - - - New Project 2019/20. Equipment Replacement inclusive of tractors and associated storage containers. Town Hall Golden Gates Refurbishment and repair of the Town Hall Golden Project completed successfully. Retentions due in 39 0.359 0.273 0.058 - 0.028 - - - Refurbishment & Repair Gates. 2020/21. Trial hole and structural engineer costs only. West & East Annexe - Structural West & East Annexe - Structural Investigation 40 0.026 - - - 0.026 - - - Further remedial works and costs to be identified Investigation Works Works. and funded separately. Partial completion in 2019/20, with further works 41 Town Hall Fire Alarm System 0.094 - - - 0.094 - - - Town Hall complex Fire Alarm. and payments in 2020/21 and retention held beyond that. To illuminate the refurbished gates, replacing the Town Hall Golden Gates Additional Work due on site in Autumn / Winter 2019. 42 0.125 - - - 0.125 0.010 - - old ineffective failing uplighters and to address Work Retention due in 2020/21. the condition of the pavement in front of the gates. Demolition of New Town House/Quattro for future Demolition due in 2020/21 following full vacation 43 NTH/Quattro Demolition 0.650 - - - 0.650 0.100 - - regeneration site. of NTH / Quattro. Required to bring roads up to an adoptable Committed costs to a number of secondary non- Maintenance Investment Estates 44 0.109 - - - 0.109 0.045 0.045 - standard. To prolong the life of the assets and adopted estates to support H&S and insurance Land (Roads and Footpaths) reduce the risk from third party claims. claim mitigation. Capital contribution for the building improvement Works approaching completion on site - no 45 Golden Square Improvements 0.522 - - - 0.522 - - - works associated on a Golden Square unit to let to payment due from WBC until works completed - bring into use. forecast payment in 2019/20. Unit 11 & 13 Sankey Bridges Roof replacement on investment property to secure Works completed 2019-20 - tenant happy, income 46 0.049 - - - 0.049 - - - Industrial Estate Works tenant rental income. secured. Hatters Row Shopping Centre Lift To replace the existing passenger platform lift at 47 0.034 - - - 0.034 - - - Lift and project completed June 2019. Replacement Hatters Row. Construction of a new neighbourhood hub with sports and community facilities to help regenerate Construction has commenced on site and is 48 Bewsey & Dallam Hub 3.876 0.241 3.278 - 0.357 - - - two adjoining communities that have the highest proceeding in an orderly fashion. deprivation scores in Warrington. Warrington Waterfront - Western Acquisition of land for Warrington Waterfront Some remaining works in relation to the release of 49 0.152 - 0.000 - 0.152 - - - Link (acquisition of land) West Link. restrictive covenants remains. Land has been acquired to enable the road Land Acquisitions, Relocations, Design and widening of Dallam Lane, design work is Stadium Quarter Highway & Infrastructure Delivery Works to improve safety 50 1.192 0.009 0.004 - 1.179 - - - progressing and relocations are moving forward to Infrastructure Improvement Works and enable the wider development of the Stadium allow for public realm and road improvements to Quarter. the Stadium Quarter area. To acquire property in Warrington for 51 Regeneration Acquisition 7.475 - - - 7.475 - - - New Project 2019/20. regeneration purposes. To fund redundancy and actuarial costs via Allocated at year end when the full costs are 52 Corporate Redundancy Costs 2.000 - - - 2.000 2.000 2.000 4.438 Capital Receipts. known. PSPlc partnership progressing land sales - some Marketing and selling property costs - all should up front disposal costs/fees/feasibility. Additional 53 Property Review Disposals 0.021 - - - 0.021 - - - be recoverable from property sales capital sales at Bewsey Dallam and Gemini involving "up receipts. front" costs. 117

Agenda Item 8 Borrowing Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m Demolition of Cabinet Works to remove Town 54 Cabinet Works Demolition - 0.052 0.024 0.002 0.077 - - - Centre blight and bring economic regeneration to Project complete. the Town Centre. Investment has been made in physical Refurbishment of the top floor of the Pyramid in 55 Town Centre Digital Hub 0.053 - - - 0.053 - - - infrastructure only to enhance the appeal of the order to establish a Digital Hub for entrepreneurs. building for potential Digital tenants. Works to identify and construct new operational Project on hold pending decision on site location 56 Depot Amalgamation 0.100 - - - 0.100 1.965 9.894 0.125 depot for WBC. and configuration. Refurbish the Fearnhead Community and Youth Refurbishment complete. Additional works Centre as the present configuration of rooms and Refurbishment of Fearnhead Cross identified to replace the roof, which are now 57 0.069 0.121 0.003 0.054 - - - services does not meet the needs of the users nor Community Centre complete with a successful WREN bid to offset the offer the community at large accommodation that cost. they are able to utilise to best effect. Woolston & Broomfields Leisure 58 0.002 - - - 0.002 - - - Roofing projects. Final payment in 2019/20 as forecast. Centres Various Sites - Structural & Chimney Various sites: structural repairs to make chimneys 59 0.030 - - - 0.030 0.005 - - Partial completion forecast within 2019/20. Works safe. Work was completed in previous years, with 60 Birchwood Tennis Centre - Roof - - - - 0.026 - - Birchwood Tennis Centre re-roofing. underspend to be moved to fund other works in the maintenance capital programme. 61 Museum - Roof 0.010 - - - 0.010 0.456 - - Museum re-roofing. Planned to be on site in summer 2020. Partial completion in 2019/20, with further works Various Civic Build - Fire Alarm Various civic buildings: replacing wireless fire 62 0.112 - 0.012 - 0.100 0.095 - - and payments in 2020/21 and retention held Systems alarms with wired systems. beyond that. St Werburghs Boiler & Heating Replace essential plant and machinery at Works to be completed in 2019/20 with a retention 63 0.118 0.001 - - 0.117 - - - System operational buildings - the training centre. value due in 2020/21. Works due on site in 2019/20, retention to be held, Replace essential plant and machinery at 64 Orford Youth Base - Boiler 0.072 0.006 0.001 - 0.065 0.008 - - currently forecasting a small underspend, but to operational buildings . be held as a contingency until works completed. Replace essential plant and machinery at 65 Various Changing Rooms - Showers - - - - 0.065 - - Planned to be on site in summer 2020. operational buildings. Replace essential plant and machinery at 66 Birchwood Tennis Ctr - Water Heater - - - - 0.013 - - Planned to be on site in summer 2020. operational buildings. Currently scheduled to complete and pay for the 67 St Kaths - Windows 0.014 - - - 0.014 - - - Window replacement project. works in 2019/20. Work completed in 2019/20s, with underspend to 68 Orford Jub Hub - Exit Doors 0.006 - - - 0.006 0.005 - - Door replacement project. be moved to fund other works in the maintenance capital programme. Work completed in 2019/20s, with underspend to 69 Hood Lane Rec - Emergency Lighting 0.006 - - - 0.006 0.004 - - Emergency lighting works. be moved to fund other works in the maintenance capital programme. Works to address significant roof and damp Full spend of Budget with Costs/Tender August 70 Walton Crematorium Building Works 0.080 - - - 0.080 0.020 - - related issues to prolong the useful life of the 2019. building. Work completed in 2019/20, with retention due in 71 Crosfields Club - Roof Drainage 0.006 - - - 0.006 - - - Roof and drainage works. 20/21 and underspend to be moved to fund other works in the maintenance capital programme.

72 7 Museum St - Repair & External Dec 0.017 - - - 0.017 - - - External works. Work completed and being paid for in 2019/20.

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Agenda Item 8 Borrowing Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m

Essential repair and decoration to the ventilation Works due on site in 2019/20, retention to be held, 73 Parr Hall Ventilation Tower Repairs 0.055 - - - 0.055 0.005 - - tower at Parr Hall, which is a Grade II listing, currently forecasting a small underspend, but to therefore Listed Building Consent is needed. be held as a contingency until works completed. Work completed in 2019/20, with underspend to Replace essential plant and machinery at 74 Woodleigh Hot Water Heater 0.033 - - - 0.033 - - - be moved to fund other works in the maintenance operational buildings - elderly care homes. capital programme. Replace essential plant and machinery at Planned to be on site in summer 2020. Some fee 75 Padgate House Boiler 0.118 - - - 0.118 - - - operational buildings - elderly care homes. charges this year only. Replacement of ICS Case Replace current ICS system with a system that is Costs expected 2019/20 for specialist build 76 Management for Children's Social 0.030 0.008 - - 0.022 - - - flexible, able to respond to changing needs and change. Work high usability. This spend takes into account the building Building handed over in 2012 but outstanding programme being 4 months behind on delivery due issues with defects remain and Making Good to settlement issues. These are now resolved and 77 Orford Park Sports village 0.011 - 0.006 - 0.004 - - - Defects still not issued and retention still held for works are now progressing on the revised Galliford Try (contractor). Negotiations ongoing programme. Building handover scheduled for 30th with Galliford Try to resolve issues/final account. April 2012. Grant application changed to be in sole name of Upgrade of Broomfields Leisure Centre Artificial Warrington BC, with LiveWire taking the Broomfields Leisure Centre Artificial Grass Pitch (AGP) to a competitive quality 3G pitch 78 0.542 0.024 0.001 - 0.517 - - - operational lead. Proposed works delayed until Grass Pitch and associated drainage issues. Football April 2020 - awaiting confirmation from Football Foundation providing 70% match funding. Foundation that this is acceptable. Highways CPO now implemented and Council has 79 Centre Park Link 8.800 0.095 13.894 5.189 5.605 0.250 - Centre Park Link new bridge and highways scheme. vacant possession of all land. Scheme has now started on site, to be complete in late 2020. Construction works nearing completion. Station Construction of a new railway station and car park opening currently programmed for late Autumn 80 Warrington West Station 4.714 1.573 1.736 - 1.405 0.250 - - in West Warrington. 2019, subject to Network Rail and Office of Road and Rail entry in to service approvals. Scheme complete. Budget retained for 3 year monitoring which would take place after the WEP2 81 Birchwood Pinch Point - 0.001 - 0.002 0.003 0.030 - - Junctions improvements in Birchwood. & WEP3 schemes are completed. All commitments can be closed. Works complete May 2018. Delivered on time and 82 Omega M62 Junction 8 0.234 - 0.255 0.021 - - - M62 Junction 8 improvements works. within budget. Committed to Warrington West Station, Funding available to support LTP Capital Burtonwood to Omega shared use path and aid 83 ITB Smaller LST Scheme - - - - 0.702 - - Programme and Priority Infrastructure Projects. smaller scheme delivery as part of the LTP Capital Programme. Increase in spend due to additional tasks on Local Development of a Multi-model transport model for Plan and LTP4. Require in year budget though there 84 Multi-modal Model 0.034 0.007 0.085 0.058 0.050 0.050 - the borough. will be income from the Local Plans budget and also third party income. Feasibility study completed. Design brief sent to 85 Chester Road Cycle Route 0.435 0.001 - - 0.434 0.450 - - Chester Road Cycle Route. IDS for development of the scheme. Trans Pennine Trail (TPT) upgrade between 86 Trans Pennine Trail Upgrade 0.517 - - - 0.517 0.230 - - Early feasibility work is in hand. Knutsford Road and Chester Road. Athletics Arena floodlight replacement to LED standard columns, refurbishment of arena Floodlight replacement nearing completion. 87 Victoria Park Improvement 0.090 0.005 0.008 - 0.077 0.376 - - grandstand, public toilets and operational storage Completion of wider project elements winter 2020. space. 119

Agenda Item 8 Borrowing Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m Woodland management completed, Stanners Pool extension brief developed with angling group and Woodland management, signage refurbishment 88 Sankey Valley Park Improvement 0.136 - 0.001 - 0.135 0.136 - - portfolio member. Awaiting Environment Agency and extension to Stanners Pool angling facility. confirmation to proceed. Completion summer 2020. Dallam/Bewsey Regeneration 89 0.016 0.002 0.003 - 0.012 - - - Tree management within parkland. Completion September 2019. Programme Phase 1 play area completed. Phase 2 fence line 90 Oakwood Avenue Park Refurbishment 0.066 - 0.007 - 0.060 - - - Park refurbishment. and parkland improvements completion summer 2019. Birchwood Forest Park Skate Area & WREN funding and additional capital contribution 91 0.122 0.098 0.022 - 0.002 - - - Skate and bike park improvements. Bike Pump Track confirmed. Completion July 2019. 92 Longbarn Park Refurbishment 0.058 - 0.045 - 0.013 - - - Play area and woodland improvements. Completion summer 2019. 93 Enfield Park Refurbishment 0.089 - 0.049 - 0.041 - - - Play area and woodland improvements. Completion summer 2019. 94 Mee Brow Play Area Refurbishment 0.070 0.000 0.070 0.000 - - - Play are and infrastructure improvements. Completion 2019. 95 Birchwood Brook Footpath 0.003 - - - 0.003 - - - Network development. Completion 2019. Second phase of Minor Parks Investments. 96 Shaw Street Recreation Ground Uplift - - - - 0.039 - - Completion March 2021. Parkland enhancements. Culcheth Village Green Play Area Second phase of Minor Parks Investments. Partial 97 - - - - 0.034 - - Completion March 2021. Uplift refurbishment of facilities.

98 Whitecross Park Play Area 0.124 - 0.090 - 0.034 - - - The third phase of Minor Parks Investments Completion July 2019. consists of a series of projects to develop, refurbish and improve facilities within identified 99 Causeway Park 0.132 - 0.120 - 0.012 - - - parks. Projects include play area development, Completion Autumn 2019. building asset refurbishment, infrastructure 100 Old Hall Park Refurbishment 0.190 0.000 0.120 - 0.069 - - - improvements and initiatives to support the Completion Autumn 2019. Councils growing number of volunteers who make a positive contribution to improving parkland Rixton Clay Pits Footpath Upgrade 101 0.030 - - - 0.030 - - - facilities for the benefit of the wider community. Completion March 2020. PROW to PFA Develop the Friends of Parkfields Park and 102 Parkfields Park Enhancement 0.048 - - - 0.048 - - - contribute to the future management of the park to New Project 2019/20. raise grounds maintenance standards. WBC contributing to the Mersey Flood defence project. Overall project value is of the order of Flood Risk (contribution to 28million with an outcome that over 2000 Works now substantially complete, payment plan 103 0.795 0.587 0.007 - 0.201 0.300 0.325 - Environment Agency scheme) properties and businesses will have increased agreed and being drawn down. protection from flooding from the Mersey in Warrington. Works now well progressed on site, being Delivery of four junction improvements along the delivered within budget and ahead of programme. 104 Warrington East Phase 2 5.080 0.862 3.403 - 0.815 0.150 - - A574 Birchwood Way Corridor. Completion currently programmed for Autumn 2019. Works now well progressed on site, being Dualling of A574 Birchwood Way between Moss 105 Warrington East Phase 3 (NPIF) 6.883 0.889 5.330 - 0.663 0.100 - - delivered within budget and on programme. Gate and M62J11 junctions. Completion currently programmed for late 2019. Consultation on preferred scheme option Omega Local Highways Phase 1 - Junction improvements at Lingley Green undertaken in March 2019. Detailed design 106 Lingley Green Avenue/Omega 1.300 0.011 0.275 - 1.014 4.969 0.075 - Avenue/Omega Boulevard (LGF3 scheme). ongoing. Scheme programmed to be on site in mid- Boulevard Junction Improvements 2020 for 9-12 months duration.

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Agenda Item 8 Borrowing Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m Omega Local Highways Phase 2A - Major improvements at signalised junctions of 107 - - 0.000 0.037 0.037 0.050 - - Works now complete, delivered under budget. Burtonwood Road/Kingswood Road Burtonwood Road/Kingswood Road. Major improvements at signalised junction Uncontested Highways CPO now implemented and Omega Local Highways Phase 2B - located at Lingley Green Avenue/ A57 Liverpool awaiting full draw down of land. Diversion of 108 Lingley Green Avenue/A57 Liverpool 0.750 0.016 0.162 - 0.571 1.459 0.035 - Road, linked to providing capacity to adjacent statutory undertakers plant is ongoing. Scheme on Road Junction Improvements developments. site in early 2020 for a period of 6 months. Pre construction phase funding and contract Pre construction works associated with brining award delegations approved at Cabinet in July forward the Western Link project through various 2019, following DfT conditional funding allocation statutory processes, resulting in the submission of of £142.5m. Works to commission various 109 Western Link Pre construction 3.685 - - - 3.685 8.650 11.539 14.535 a final business case to DfT to secure all scheme suppliers/partners are underway as well as funding approvals - provisionally in late forming a new in-house delivery team. Provisional 2022/early 2023. DfT grant allocation to this stage of the scheme - £21.560m. Phase 2 - To support the environmental Grey to Green Highways improvements that will see an improvement in 110 0.084 - 0.047 - 0.037 - - - Project now complete. Improvements roads, footpaths and public realm in Bewsey & Dallam area. Highways CPO made, with several objections Omega to Burtonwood Accessibility Delivery of a new shared use path between received. Discussions to remove objections with 111 0.400 0.011 0.013 - 0.376 1.162 0.035 - Improvements Burtonwood and Omega landowners ongoing, scheme on site early 2020 subject to potential Public Inquiry. The final account has now been agreed and final Victoria Park Regeneration Phase 2 - New changing room, playing pitch and grandstand 112 0.116 - 0.104 - 0.012 - - - payments being processed, following close out of New Sports Facilities at Victoria Park for community use. defects. Restoration and regeneration works to the Walton Project is approaching completion and remains Estate, including the indoor riding school, heritage within budget. Activity Co-ordinator role now 113 Walton Estate (Heritage Lottery Fund) 1.524 0.619 0.411 - 0.493 - - - yard, stable block and glasshouses to enable a appointed to. Partners due to move in to facility in subsequent education and events programme. late August 2019.

The third phase of Minor Parks Investments consists of a series of projects to develop, refurbish and improve facilities within identified Planning application submitted, detailed design parks. Projects include play area development, substantially complete, procurement due to 114 Risley Moss Tower Plus 0.497 0.017 0.000 - 0.479 - - - building asset refurbishment, infrastructure commence for a October 2019 Cabinet report to improvements and initiatives to support the seek approval to award construction contract. Councils growing number of volunteers who make Works on site early 2020. a positive contribution to improving parkland facilities for the benefit of the wider community. Working in partnership with Great Sankey Parish Council develop proposals to improve the current public open space at Parsonage Way for the local 115 Parsonage Way Playing Field 0.160 - - - 0.160 - - - community, including installation of a new New Project 2019/20. children's play area, new footway link, improved drainage, new boundary fencing and access and various landscaping improvements.

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Agenda Item 8 Borrowing Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m Funding to be used to purchase in-cab technology Project is fully committed with development work 116 Waste Project - Defra Grant 0.020 - - - 0.020 - - - to improve service delivery and link vehicles with is in progress with Bartec. Contact Warrington. Project complete. Note that there is an ongoing 117 Great Sankey Neighbourhood Hub - 0.002 0.244 0.228 0.474 - - - New build and refurbishment at Great Sankey Hub. dispute with contractor that may result in an additional budget requirement. Develop areas of the heritage yard that are under utilised in order to create another potential revenue stream for the estate. The project will refurbish the existing museum area to make it suitable for a retail offer that would complement 118 Walton Heritage Yard Developments 0.007 - 0.001 - 0.006 - - - Project complete. the cafe - such as a luxury food shop. A lift would be installed to the first floor and the room above the cafe refurbished in order to give access to all for a room that will be available for community use and small business hire for workshops. Total Borrowing Projects 77.879 9.533 36.951 - 31.395 44.912 27.961 19.598

Grant/Contribution/Receipts Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [No Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m

HR work stream almost complete, with last releases scheduled over Summer 2019. Benefits taken from service budgets in line with planned targets. Contact Centre re-planning underway with Assistant Director and Head of Service. New proposal has regular releases, with key services prioritised for 2019, and will complete by Spring 2020. Benefits to be re-profiled when delivery plan is approved / baselined. Discovery phase concluding for Revenue & Benefits, Complaints, FOIs, SARs and Registrars - Warrington 20:20 Transformation 119 2.223 - 0.048 - 2.175 - - - Warrington 20:20 - Transformation Programme. recommendations produced in July & August 2019 Programme and under review by Business Service Owners. Programme Board to validate costs, benefits and agree delivery priorities for 2019-20, across the programme. Families and Wellbeing (excluding Public Protection) currently paused. Largest risks to the programme are still the ability to attract and retain skilled resources and overall affordability, due to some slippage in the baseline plan and organisational readiness to support and accept pace of change to people, systems and processes.

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Agenda Item 8

Grant/Contribution/Receipts Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [No Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m 16 stairlifts fitted with 10 year warranty, 12 Adult Services - Better Care Fund 120 0.300 0.142 0.055 - 0.103 - - - Delivering the Better Care Fund at a local level. ceiling track hoists to enable single handed and 16 (BCF) ramps for wheelchair access. Children's Ramps & Hoists - Better 1 ceiling hoist for child adaptations and 1 ramp 121 0.020 - - - 0.020 - - - Delivering the Better Care Fund at a local level. Care Fund (BCF) for wheelchair access. 122 New School Project at Chapelford 0.010 0.010 - - - - - Complete with retention payments due. Retention to be paid 19/20. Additional primary places - St 123 0.005 - 0.016 0.011 - - - Increase school places at St Phillips. Project to be completed March 19/20. Phillips Additional primary places - 124 0.121 0.000 0.045 - 0.076 - - - Increase school places at Barrowhall. Project in discussion regarding outstanding works Barrowhall Primary School Priority Maintenance 125 0.003 - - - 0.003 - - - School Priority Maintenance Programme. Project to be completed end of March 2020. Programme 126 Alderman Bolton Primary - Heating 0.013 - 0.035 0.023 - - - Project transferred to 17/18 - Heating issues. Retention to be paid 19/20. Dallam Primary - External 127 0.044 0.014 0.046 0.016 - - - Playground & ground works. Retention to be paid 19/20. Improvements 128 Ravenbank Primary - Heating 0.009 0.001 0.004 - 0.004 - - - Heating works Retention to be paid 19/20. 129 Culcheth Primary - Roof Works 0.028 - 0.022 - 0.006 - - - Roof works. Retention to be paid 19/20. 130 Croft Primary - Roof Works 0.030 - 0.018 - 0.012 - - - Roof works. Retention to be paid 19/20. 131 Brook Acre Primary - Heating 0.007 0.001 0.004 - 0.002 - - - Heating works. Retention to be paid 19/20. The Cobbs Infant - Heating & 132 0.005 - 0.004 - 0.001 - - - Heating works. Retention to be paid 19/20. Pipework Additional primary places To provide additional pupil primary places in the 133 2.925 - - - 2.925 0.075 - - Works to be started to 19/20. Grappenhall Heyes area of south Warrington. 134 Grappenhall Heyes - New Roofing 0.230 - - - 0.230 0.010 - - New roofing. Works to be started to 19/20. 135 Statham Primary - Flat Roof 0.006 0.006 - 0.000 - - - Roof works. Retention to be paid 19/20. Oughtrington Primary - replacement 136 0.259 - - - 0.259 0.010 - - Roof works. Works to be started to 19/20. roof Twiss Green Primary - replacement 137 0.261 - - - 0.261 0.010 - - Roof works. Works to be started to 19/20. roof Newchurch Primary - replacement 138 0.190 - - - 0.190 0.010 - - Roof works. Works to be started to 19/20. roof 139 The Cobbs Infant - Flat Roof - - - - 0.221 0.010 - Flat roof works. Works to start 20/21. 140 Oughtrington Primary - Electrics - - - - 0.200 0.007 - Electrics works. Works to start 20/21. 141 The Cobbs Infant - Electrics - - - - 0.217 0.010 - Electrics works. Works to start 20/21. 142 Appleton Thorn - Flat Roof - - - - 0.121 0.010 - Flat roof works. Works to start 20/21. 143 Meadowside Primary - Heating 0.097 - 0.001 - 0.096 0.010 - - Heating Works. Works to be completed 19/20. Stockton Heath Primary - Roof 144 0.150 - - - 0.150 0.010 - - Roof repairs Works to start 19/20. repairs Devolved Formula Capital - Primary DFC funding for Primary Schools - grant is split 145 - 0.027 - 0.027 - - - On going project. Schools over all Primary Schools. DFC Additional Funding Primary 146 0.286 - - - 0.286 - - - Additional DFC capital grant received. To be received 18/19 and to be spent by 19/20. Schools Additional secondary places - South To provide additional pupil secondary places in 147 3.000 - - - 3.000 2.500 - - Works not to be started to 19/20. Warrington the area of south Warrington. Secondary Places in West Warrington - St 148 Secondary Places St Gregory's High 0.310 - 0.311 0.001 - - - Onsite. Works to be completed in 19/20. Gregory's replacing the mobile block. Great Sankey High - School 149 1.977 0.486 1.182 - 0.309 - - - Expansion to Barrowhall CP old site. Onsite. Works to be completed in 19/20. Expansion DFC Additional Funding Secondary 150 0.056 - - - 0.056 - - - Additional DFC capital grant received. To be received 18/19 and to be spent by 19/20. Schools 123

Agenda Item 8 Grant/Contribution/Receipts Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [No Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m Devolved Formula Capital - Special DFC funding for Special Schools - grant is split 151 - 0.022 - 0.022 - - - On going project. Schools over all Special Schools. DFC Additional Funding Special 152 0.035 - - - 0.035 - - - Additional DFC capital grant received. To be received 18/19 and to be spent by 19/20. Schools 153 SEND - Oakwood CP KS1 0.156 0.113 0.017 - 0.027 0.010 - - SEND provisions - Oakwood CP KS1. on site. Retention to be paid 20/21. 154 SEND - Bridgewater High ASD 0.042 - - - 0.042 - - - SEND provisions - Bridgewater High ASD. Works not going to start until 19/20. SEND - Dallam Primary Childrens SEND provisions - Dallam Primary Childrens 155 0.010 - - - 0.010 - - - New Project 2019/20. Kitchen Area Kitchen Area. SEND - Woolston CP Sensory Room & SEND provisions - Woolston CP Sensory Room & 156 0.011 - - - 0.011 - - - New Project 2019/20. Fencing Fencing. Children's Residences Maintenance Additional cost at St Kath's & Social Services 157 0.048 - - - 0.048 - - - Project on going. Works Properties. Contributions to various works in Children 158 Children Centres Works 0.073 - - - 0.073 - - - Project on going. Centres. 159 Healthy Pupil Capital - Kitchens 0.087 0.002 - - 0.086 - - - Kitchen works. Various schools. Works to start 19/20. Any invoices over £2k that relate to capitalised Schools Capital Works (revenue to 160 0.050 0.050 - - 0.000 - - - works. Income is received from schools to offset On going project. capital contributions) expenditure to nil balance. Funding of mandatory disabled facilities grants to Disabled adaptations to private 161 1.639 0.356 - - 1.283 - - - enable disabled people to remain in their homes On target to spend. housing (BCF) and access basic facilities. Financial assistance in the form of grants and loans to assist owner occupiers and landlords of tenanted properties [with below market rents] to carry out essential repairs to remove category 1 162 Private housing - renewal assistance 0.100 0.018 - - 0.082 - - - Project on-going. hazards [under the Health & Safety Hazard Rating System - HHSRS] or to meet the Decent Homes Standard and other functions included in the Council's Housing Renewals Policy. Planning permission granted 7th June 2018. CCTV 2 purpose built bungalows one as directed by survey identified that a sewer diversion required. Court of Protection and second for people with 163 Culcheth Bungalows 0.369 0.011 0.002 - 0.356 - - - 19th July technical approval for sewer diversion learning disability as part of the Demand approved by UU. Successful NHS grant funding of Management initiative. £362k. Ruskin Avenue acquired and minor works to be 164 S106 Newborough Close 0.199 - - - 0.199 - - - Acquisition of adapted property. carried out. Acquisition of 2 properties and contractor on site To acquire and adapt properties for those with a 165 Supported Housing Project 0.700 0.171 - - 0.530 0.277 - - carrying out works. Successful grant funding bid to learning disability. NHS for £410k. Three Schemes:- Low emission study , AQ All schemes now completed. Underspend remains 166 Air Quality 0.004 - - - 0.004 - - - equipment, Freight Eco stars. for other air quality work.

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Agenda Item 8 Grant/Contribution/Receipts Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [No Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m Current programme of 8 schemes on target for delivery before March 2020. 1 Scheme completed, 167 Road Maintenance 1.355 0.137 0.361 - 0.857 - - - 1 Scheme currently on site and 2 programmed to Asset Management focuses on our proposals for start in August. maintaining the physical transport assets which 168 Bridge Maintenance 0.383 - 0.113 - 0.270 - - - Works progressing and programmed to year end. make up our transport networks. The local Current Programme of 2 schemes, dual pedestrian highway network and associated infrastructure crossing at Kingsway/Nr Westy Ln and street forms the largest capital asset for many local furniture upgrade at Runcorn Rd/Chester Rd. Street 169 Traffic Signals - Maintenance 0.177 0.009 0.008 - 0.159 - - - authorities and includes roads, footways, furniture upgrade at Runcorn Rd/Chester Rd cycleways, bridges, street lighting, traffic signals, completed December 2018. Expect budget to be bus stops, street furniture and signs. Asset fully spent. Management is the process by which we seek to Additional stops for upgrade identified and being 170 Bus Stop - Maintenance 0.026 0.020 0.002 - 0.004 - - - ensure an optimal allocation of resources towards scoped. the management, operation, preservation and 171 Street Lighting Structural Works 0.399 - 0.037 0.000 - 0.436 - - - Works progressing and programmed to year end. enhancement of infrastructure in order to meet current and future needs. Budgets will be spent A package of footway improvement schemes with works progressing in the final quarter. outside 12 Primary Schools has been approved for 172 Footpath & Cycleway - maintenance 0.235 - 0.004 - 0.230 - - - delivery before March 2020, and the first of these will be starting in the Autumn School Holidays. Pothole Action & Flood Resilience Pothole Action and Flood Resilience Grant Works progressing and being programmed to year 173 0.252 - - - 0.252 - - - Fund awarded by Department for Transport (DfT). end. Works progressing and being programmed to year Highways Maintenance Highways Maintenance Efficiency Top Up Grant 174 0.128 - 0.010 - - 0.138 - - - end commitments are on Mayrise works ordering Efficiency/Incentive awarded by DfT. system. Works progressing and being programmed to year 175 S278 Walton Locks 0.012 - - - 0.012 - - - Remedial works to be completed by WBC. end commitments are on Mayrise works ordering system. Remedial works on Chapelford - work needed to Chapelford Street Lighting Works bring the infrastructure up to an adoptable Works Progressing as site transfers to WBC 176 0.060 - - - 0.060 - - - (commuted sum) standard. Street lighting element is to replace income and works to be completed in 2019/20. lighting columns, lanterns and bollards. Remedial works on Chapelford - work needed to Remaining balance to be used towards the Chapelford Highways Works bring the infrastructure up to an adoptable 177 0.191 - 0.033 - 0.158 - - - maintenance and upgrade of several assets (commuted sum) standard. Works undertaken in various phases associated with the new train station. over the previous 3 years. £96k bond allocation following the demise of the developer. £26k allocated to street lighting improvements with the remainder £70k available Briarswood Remedial Works - Briarswood remedial works - highways. Bond 178 0.069 - - - 0.069 - - - for Highway improvements. Highway remedial Highways allocation following the demise of the developer. works identified and expected to be delivered in 19/20. It is not expected that the full budget allocation will be required. Briarswood remedial works - street lighting Briarswood Remedial Works - Street Works progressing as site transfers to WBC 179 0.024 - - - 0.024 - - - element. Bond allocation following the demise of Lighting income and works to be completed in 2019/20. the developer. Spurling Road Flood Risk 180 - - 0.020 0.020 - - - Spurling Road Flood Risk Management. Scheme complete, final account paid. Management Myddleton Lane Flood Risk Due to start shortly full delivery expected before 181 0.001 - - - 0.001 - - - Highway Drainage improvement scheme. Management end of March. Watercourse Improvement Works - including Works progressing and being programmed to year 182 Watercourse Improvement Works 0.151 - - - 0.151 - - - Poulton North Flood Risk Management. end.

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Agenda Item 8 Grant/Contribution/Receipts Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [No Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m

Environment Agency led scheme to provide a 1 in 75 year standard of protection (SoP) by installing Works by the EA are ongoing with a planning pre- Penketh/Whittle Brook Flood Risk 183 0.210 - - - 0.210 0.210 - - and strengthening flood defences between Penketh application lodged. Site works are due to Management Brook and Whittle Brook, located in the Penketh commence in Spring 2020 and Cuerdley ward of Warrington. Application is currently being updated following feedback from UTMC. Further development is Journey Time Mobile Application Development as Co-operative Intelligent Transport (C- ongoing including improvements to the map 184 0.015 - 0.019 0.005 - - - part of the Warrington Intelligent Transport ITS) display as it was felt that it was inadequate for System (WITS). public release. Expected release date is March 2019. CPO powers in hand to acquire land. Detailed 185 S106 Omega (Walking & Cycling) 0.087 - 0.002 - 0.085 - - - S106 Omega (Walking & Cycling Improvements). design now complete. Programmed for early 2020 works start pending land assembly. To implement a comprehensive traffic management Consultation completed 12th October 2018 with scheme through the village of Burtonwood to deter Omega Burtonwood Village Traffic £80k spend expected on design and fees this year. 186 0.942 0.178 0.492 - 0.272 - - - through traffic and manage speeds along certain Management £80k contribution added to this code from the LTP sections of highway where there is a known LSS Programme. problem. Officers are currently progressing a TRO ('HGV' order) within the Burtonwood area, in accordance 187 S106 Omega (HGV Order) 0.024 - - - 0.024 - - - Signs and TRO in place. with the agreement. Works to be completed within next 6 months. Part scheme complete - Legal difficulties encountered that are hindering full completion; Construction/reinstatement of PROW following 188 S106 Saxon Park 0.123 - - - 0.123 - - - will hopefully resolve in 2018/19. Schemes development of Phase 2. identified for remaining funds and are currently being developed. Provision of 2 pedestrian crossings on Dewhurst Works completed. Remaining fees to be used Road, one to serve as a link between the 189 S106 Birchwood Shopping Centre 0.007 - - - 0.007 - - - towards re-lining carriageway markings in vicinity Development and the station, and the other near to of new pedestrian crossings. the junction with Benson Road. Potential measures identified - investigatory work 190 S106 Farrell Street South 0.312 - - - 0.312 - - - Pedestrian links to and from Kingsway Bridge. underway for delivery in 2019/20.

The introduction of junction protection (doubled yellow lines) parking restrictions at the junction of the proposed site access and Thelwall Lane and at Works cannot progress due to overly prescriptive the junction of Nook Lane and Thelwall Lane. wording of agreement and design changes to 191 S106 Eagle Ottawa - - - - 0.035 - - The introduction of a 20 mph speed restriction, development layout. Options being explored, traffic calming measures and street lighting delivery expected 2020/21 improvements on Nook Lane between its junctions with Thelwall Lane and Gaskell Avenue.

TPT Improvements identified and completed. 192 S106 Red Cott Farm - - 0.003 0.003 - - - TPT improvements with the vicinity of the site. Scheme overspend to be addressed via LTP funding as previously agreed. Works complete on site. Budget overages to be 193 S106 Gemini Retail Park - - 0.002 0.002 - - - New pedestrian and cycle facilities. mopped up by LTP (John Nichol). Currently agreeing final invoices with contractor.

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Agenda Item 8 Grant/Contribution/Receipts Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [No Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m Various highway improvements within a two mile 194 S106 Land Adjacent Farmers Arms 0.002 - - - 0.002 - - - Scheme complete. radius of the site. TRO contribution for parking restrictions and Parking restrictions implemented, speed limit 195 S106 Former Ship Inn (Chester Road) 0.004 - - - 0.004 - - - speed limit amendment. expected to be delivered in 2019/20. PROW improvements within vicinity of site. 196 S106 Walton Locks 0.013 - - - 0.013 - - - Infrastructure improvements. Scheme to be delivered in 2019/20 Provision of uncontrolled pedestrian crossings at Scheme complete. Budget overages to be addressed 197 S106 Marsden Avenue - - 0.003 0.003 - - - numerous locations within vicinity of site. via John Nichol / Ryan Dyson S106 Common Lane Pedestrian Provision of controlled pedestrian crossing on 198 0.029 - - - 0.029 - - - Scheduled for delivery in 2019/20. Crossing Common Lane, Culcheth.

Active Travel focuses on providing for walking and cycling as the main modes for making day-to-day journeys but also includes equestrianism and On track for full spend. Includes several cycling Public Rights of Way which are more likely to be 199 Cycling Improvements 0.260 0.000 0.004 - 0.256 - - - and walking projects such as the Phase 2 of related to leisure purposes. We have grouped Callands Roundabout shared use path. these modes together as users are often seeking similar characteristics in their choice of routes; attractive lightly trafficked and/or lower speed roads, facilities to help them safely use busier 200 Pedestrian Improvements: PRoW 0.087 - - - 0.087 - - - roads, or traffic free off-road routes. On track. Includes new path in Bennetts park. 201 General Accessibility Improvements - 0.010 0.000 0.019 0.029 - - - On track for full spend. Cycle training is funded by a government grant and is delivered in schools. The basic Level 1 and 2 is This budget is supported by a government grant for 9/10 year olds and more advanced Level 3 for claimed in arrears. It is on target for full spend but 202 Cycle Training - Bikeability 0.130 0.017 0.140 0.028 - - - 11-13 year olds. There are now also various other if it slips we will simply not claim for the full modules catering for younger children and more grant. strategic outcomes such as rides and transition to high school. Smarter Choices focuses on decisions people make about their journeys including if they need to travel, when and where, and mode of transport This budget is now on track to be underspent by used. The aim is to change individuals travel approximately £15k. This is due to a member of 203 Travel Planning and Marketing 0.051 0.004 0.000 - 0.047 - - - behaviour and encourage them to make more staff leaving and a reduction in resources required sustainable choices such as Active Travel, Public to support the capital programme. Transport or sustainable Motorised Travel such as car-sharing. Smarter Choices involves marketing and promotion of travel options.

Public Transport covers all forms of passenger transport services which are available for use by Bus Lane improvements at Tesco now completed 204 Bus Priority Schemes - 0.011 - 0.004 0.016 - - - the general public as opposed to private transport including bus lane enforcement. Budget is fully modes such as car, motorcycle or bicycle. Forms spent. of public transport currently available in Warrington include express coach, local bus and rail services and taxi/private hire vehicles. To be used to scope out further bus priority Notable projects include study work to inform the improvements on Wilderspool Causeway and at 205 Bus Stop Enhancements - 0.006 - 0.002 0.007 - - - upgrade of the Real-Time Passenger Information Parker / Sankey St. Replacement screens for Real System and the delivery of a successful bid to DfT's Time Passenger Information now also Access for all fund for lifts at Birchwood Station. programmed.

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Agenda Item 8 Grant/Contribution/Receipts Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [No Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m Managing Motorised Travel includes routes and facilities used by private motorised passenger modes such as cars and motorcycles and the Initial survey work and consultant fees for the transportation of freight goods by road, rail or upgrade of the Forge car park - full scheme to be 206 Parking Strategy 0.015 0.013 0.004 0.002 - - - water. The Parking Strategy work is now complete implemented via a CIPG bid. Expect budget to be and work is in hand on the implementation of the fully spent. strategy and procurement of a new Parking Services Contract. Most of the schemes within the programme are aimed at easing school time congestion and consequently making the route to school for children as pedestrians, as safe as possible. Hence most of the schemes within the programme The Safety and Security covers infrastructure will result in the provision of parking restrictions improvements to Safer Routes to school to to regulate traffic in the vicinity of schools. The encourage more walking and cycling on the school measures implemented are supported by 12 months of education and enforcement to 207 Safer Routes to Schools 0.050 0.001 0.002 - 0.047 - - - journey; changes to the highway environment to design out road traffic collisions as part of the encourage changes in travel modes and parking Local Safety Schemes Programme; introduction of practices. The programme has been running for 3 facilities' to aid pedestrian movements and years with the schools with the greatest known remove barriers to accessibility; changes to issues prioritised. Resources have allowed for 10 highway arrangements as part to the Traffic schools per year to be programmed. Several Management Minor Works programme to assist in schools have needed detailed investigations and the safe and efficient passage of all road users; complex solutions which has resulted in schemes and delivering the council's commitment of carrying forward from the previous years Safer introducing 20mph speed limits in the majority of Routes to Schools programme. residential roads in Warrington to promote wider travel options through providing a more attractive Small Scheme works substantially complete, £80k environment for pedestrians and cyclists. A expected for Golbourne Rd Scheme to hit in March, dedicated Schools Improvement programme will Works to begin November on A559 Northwich Road also be established as a result of an increase in Lower Stretton to ease HGV through Movement, the number of traffic related issues around larger scheme expected here in 2019/20. Works 208 Road Safety - Local Safety Schemes 0.101 0.003 0.021 - 0.077 - - - schools. also expected A57 Manchester Road Woolston to close Bus Lane accessing Bridge Ln Industrial Estate and on Warrington Road, Chapel Lane Junction to restrict right turning vehicles from the side road both in early 2019. These larger schemes will complete expected spend for LSS.

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Agenda Item 8 Grant/Contribution/Receipts Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [No Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m

All schemes identified within programme are at The Safety and Security covers infrastructure various stages but are scheduled for completion improvements to Safer Routes to school to within this financial year. 3No. Schemes have encourage more walking and cycling on the school been removed/deferred from this programme, journey; changes to the highway environment to namely Thewlis Street which is still to be design out road traffic collisions as part of the constructed but funded from Section 106 monies. Local Safety Schemes Programme; introduction of Cliff Lane Junction 20 lining which is awaiting facilities' to aid pedestrian movements and agreement with Highways England, however lining 209 Traffic Management - Minor Works 0.319 0.022 0.055 - 0.243 - - - remove barriers to accessibility; changes to work is dependent on suitable road surface highway arrangements as part to the Traffic temperatures and salt free surfaces for Management Minor Works programme to assist in satisfactory application so will be deferred to the safe and efficient passage of all road users; early next financial year once the winter salting and delivering the council's commitment of season is complete. Parksway Layby is dependent introducing 20mph speed limits in the majority of upon the agreement of a landowner who is not residential roads in Warrington to promote wider resident in the UK. That agreement is unlikely to be travel options through providing a more attractive sought in sufficient time to allow the scheme to be environment for pedestrians and cyclists. A completed within the current financial year. dedicated Schools Improvement programme will also be established as a result of an increase in Three zebra crossing schemes to be delivered by Pedestrian Improvements: the number of traffic related issues around 210 0.144 0.007 0.026 - 0.111 - - - March 2019 prioritised from the annual (Crossings) schools. Pedestrian Crossing Assessments.

Current Programme of 3 schemes this FY. 1 x Junction at M62J9 (works commenced Jan 2019), 1 x Pedestrian crossing at Manchester Rd/Fairfield St (works commencing Jan 2019) & 1 x Pedestrian crossing at Poplars Ave/Capesthorne Rd (works 211 Traffic Signal Enhancements 0.196 0.045 0.137 - 0.014 - - - commencing Feb 2019). Expect majority of budget The Network Management theme sets out how we to be spent. Additional funding of £313K approved propose to make best use of the existing highway to help deliver M62/J9 scheme is unlikely to be network and fulfil our Network Management Duty. fully utilised as scheme will not be completed this This duty established under the Traffic FY. Will be utilised FY 2019/20 instead. Management Act (2004) is to “secure the expeditious movement of traffic on the highway Ongoing scheme to migrate legacy systems to network, and to facilitate the same on other hosted systems to improve robustness/reliability. 212 UTMC Development 0.003 - 0.001 - 0.002 - - - authorities’ networks”. Maximising highway Quotation to migrate 47 sites awaiting approval. network efficiency for different users (Active Expect budget to be fully spent. Travel, Motorised or Public Transport) forms a key Schemes to install new CCTV camera at M62 J9 and part of Network Management. also migrate 3 existing CCTV cameras from 3G to utilise our own wireless communications to improve reliability and reduce operating costs. 213 Network Management Plan 0.301 0.003 0.001 - 0.297 - - - Some equipment has been procured but requires installing. Order has been approved for 2 x CCTV cameras at M62 J9 due to be installed March 2019. Expect budget to be fully spent. The funding is being used for a number of projects including: Local Sustainable Transport Fund Bid Programme of study and research on track for full Development, Transport Modelling, LTP 214 Monitoring & Strategic Studies 0.129 0.009 0.092 - 0.028 - - - spend. Main projects supporting cross boundary Monitoring, LTP programme development, Cross projects and LTP4 development. Boundary Transport strategy development & studies. 129

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Grant/Contribution/Receipts Projects In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates [No Revenue Cost to the Council] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m ERGE Consultancy Fees (Holding ERGE Consultancy Fees (holding code) - to be 215 - - 0.060 0.060 - - - N/A - cost cleared down to applicable project. Code) cleared down to individual project codes. 216 Brian Bevan Island 0.002 - - - 0.002 - - - Landscape improvements. Completion 2019. 217 S106 G J Greenalls - Causeway Park 0.001 - - - 0.001 - - - Wildflower establishment. Completion 2019. 218 Freshwater Close Play Area 0.002 - - - 0.002 - - - Play area refurbishment. Completion September 2019.

Completion of specific projects dependant upon 219 Risley & Rixton - 0.004 0.005 0.001 0.009 - - - High Level Stewardship and habitat development. individual funding allocations on an annual basis. Flood alleviation scheme to resolve historic 220 Culcheth Park Flood Alleviation 0.003 - 0.003 0.000 - - - Completion Summer 2019. waterlogging along footpath network. 221 S106 G J Greenalls - Morley Common 0.004 - 0.005 0.001 - - - Play area redesign Project completed. Greenspace projects across Bruche, Woolston & 222 Bruche S106 - Various Parks/Areas 0.014 - - - 0.014 - - - Completion 2019. Larkfield and Ecology Parks. Gym completed, footpath construction underway, Construction of 2 open age sports pitches, outdoor 223 Westy Park - G J Greenalls 0.057 - 0.001 - 0.056 - - - pitch construction commencing July 2018. gym facility and footpath network. Completion summer 2019. Seeking Legal view on options for delivery of S106 Gatewarth 104 (Omega Bericote 224 0.093 0.000 - - 0.093 - - - Gatewarth habitat improvements. scheme, including funding of specialist equipment. Land) Delivery summer / autumn 2019. S106 Wildlife Habitat Improvements 225 0.005 - - - 0.005 - - - Match funding for Carbon Landscape Project. Completion Autumn 2019. (Carbon) S106 Gatewarth 300 (Omega South 226 0.078 - - - 0.078 0.050 - - Gatewarth habitat improvements. Completion 2022. Zone 7) Acquisition of housing for use as Support the acquisition of up to 13 properties for 227 0.091 0.052 - - 0.039 - - - Purchased 7 properties. temporary accommodation temporary accommodation. Maintenance Incentive Fund Allocation for 228 Maintenance Incentive Fund 2019/20 0.535 - - - 0.535 - - - New Project 2019/20. 2019/20. 229 Freight 0.010 - - - 0.010 - - - LTP Freight Project. New Project 2019/20. 230 Cleaner Fuels 0.015 - - - 0.015 - - - LTP Cleaner Fuels Project. New Project 2019/20. 231 New Bus Priority Measures 0.050 - - - 0.050 - - - LTP New Bus Priority Measures Project. New Project 2019/20. 232 Westbrook Way Shared Use Path ------Footpath scheme on Westbrook Way. New project 2018/19. Total Grant/Contribution/Receipts Projects 24.035 1.906 3.450 - 18.678 3.976 0.037 -

Invest to Save Projects [No Revenue Cost to the Council - a In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates return is generated] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m Extend the LAMS scheme into shared ownership Shared Ownership Mortgages (Local mortgages, this allows joint mortgages given were 233 - - - - 1.000 - - Report forecast to go to Cabinet in Quarter 3. Authority Partnership Purchase) an individual would own 70% of the property and the Council 30%.

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Agenda Item 8 Invest to Save Projects [No Revenue Cost to the Council - a In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates return is generated] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m

The Council's loan portfolio to Housing The Council provides loans to Registered Social 234 Loans to Housing Associations 200.000 2.000 - - 198.000 200.000 172.822 - Associations is performing well and all operating Landlords to stimulate housing regeneration. with there financial and legal convenant. 235 Loan to Walton Lea 0.035 - - - 0.035 - - - Loan to Walton Lea. In progress. Loan to Local Enterprise Partnership (LEP) for Enterprise Zone (EZ) investment projects. Cheshire Currently negotiating and look to finalise in 236 Loan to Local Enterprise Partnership 10.000 - - - 10.000 - - - East and Chester West Council's are also Quarter 2. implementing corresponding loan agreements. The Bank is performing to business plan. There has been an objection to 2017/18 and 2018/19 accounts by members of the public, and accounts are waiting on the Council's External Auditors 237 Redwood Bank - 0.367 - - 0.367 - - - The Council to set up its own Business Bank. Grant Thornton to conclude report on the outcome of the objection. Regulars updates are given to the Audit and Corporate Governance Committee on this issue. To build 2 Solar Farms in York and Hull. With the Currently both on site. York expected to complete Hull Solar Farm electricity being used to power the 238 Solar Farm Projects 62.686 12.049 - - 50.637 17.178 - - November and Hull expected to complete Council, which will make the Council the first fully December. green energy supplied Council. Project progressing well for completion in 2018/19 for main roads and more complex Replacement of street lighting units and lanterns. Street Lighting Energy, Carbon & junctions requiring coordination with Highways 239 4.300 0.018 0.083 - 4.199 3.328 - - The project aims to mitigate future energy price Asset Improvement England regarding Traffic Management increases and improve the overall age profile . arrangements with final Ornamental Units being replaced in in 2019/20. The strategic property investment programme is now valued at over £350m and is performing as expected in delivering a new income stream for the Acquire property assets around strategic Council. Further opportunities for investment are Strategic Property Investment objectives - primarily regeneration, economic under constant review and are considered both on 240 Programme to support Regeneration 123.236 72.946 0.015 - 50.275 - - - development and the property investment portfolio a case-by-case basis and in terms of the impact on & Investment Portfolio to generate revenue income. the existing property portfolio. The allocated capital budget for 2019/20 supports the delivery of this programme and is not related to a single specific investment opportunity. Acquire freehold of New Town House/Quattro to support Town Centre Regeneration, reduce risk of Completed - minor statutory compliance works 241 New Town House & Quattro Purchase 0.043 0.000 0.011 - 0.032 - - - the Councils office accommodation and seek the being monitored. best financial position for the Council. Council to provide funding for the Regeneration of Project ongoing. Leisure phase progressing the Bridge Street Quarter site including provision according to programme. Some defect rectification of family leisure facilities (Cinema, restaurants), on multi-story car park and budget pressure 242 Time Square Project 25.373 9.193 18.027 1.847 7.343 - - New Market Hall, New WBC Office Block, large caused by interface between construction and scale public realm of the site and Bridge Street operations. Expect to be complete spring 2020. down to Mersey Street.

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Agenda Item 8 Invest to Save Projects [No Revenue Cost to the Council - a In Year Budget Monitoring - Quarter 1 Future Year Forecasts Narrative Updates return is generated] 2019/20 2019 2020/21 2021/22 2022/23+ Total 2019 Project Quarter 1 Spend at Forecast Forecast Forecast Project Description Commitments Variance Project Description Progress Ref. Budget Quarter 1 Budget Budget Budget £m £m £m £m £m £m £m Initial feasibility work conducted on first two Housing Companies ('Incrementum') incorporated sites. Business cases have been produced and will in February 2019 to create a long-term revenue be presented to Cabinet in September 2019, 243 Housing Company 4.000 - - - 4.000 18.000 9.620 28.272 stream for the Council through the construction seeking overall funding of £31.62m to bring and leasing of new housing. forward 158 no new houses. Other funding request are expected 20/21. Obtaining lease agreements with Hermes Ltd in 244 Solar Photovoltaic (PV) - Hermes 1.301 0.068 - - 1.233 - - - Installation of Solar Photovoltaic (PV) at Hermes. order to proceed. Solar Photovoltaic (PV) - Plastic Installation of Solar Photovoltaic (PV) at Plastic 245 0.469 0.302 0.090 - 0.077 - - - Project substantially complete. Omnium Omnium. Provide a landscaped garden with a central Santum Panorama, a water feature, several benches and a wall suitable for the installation of Crematorium Garden of memorial plaques. The exit from the Crematorium 246 - 0.001 0.008 0.002 0.011 - - Project complete. Remembrance will also be improved by the installation of retractable canopies to protect mourners from sun/rain when viewing floral tributes on exiting the building. Total Invest to Save Projects 431.075 96.585 18.228 - 316.262 246.849 182.442 28.272

Total Capital Programme 532.989 108.024 58.629 - 366.336 295.737 210.440 47.870

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Appendix 2 All S106 Capital Projects

2019/20 2020/21 2021/22 2022/23 Quarter 1 Forecast Forecast Forecast Project Description Budget Budget Budget Budget £m £m £m £m S106 Newborough Close 0.199 - - - S106 Omega (Walking & Cycling) 0.087 - - - S106 Omega (HGV Order) 0.024 - - - S106 Saxon Park 0.123 - - - S106 Birchwood Shopping Centre 0.007 - - - S106 Farrell Street South 0.312 - - - S106 Eagle Ottawa - 0.035 - - S106 Land Adjacent Farmers Arms 0.002 - - - S106 Former Ship Inn (Chester Road) 0.004 - - - S106 Walton Locks 0.013 - - - S106 Common Lane Pedestrian Crossing 0.029 - - - S106 G J Greenalls - Causeway Park 0.001 - - - S106 G J Greenalls - Morley Common 0.004 - - - Bruche S106 - Various Parks/Areas 0.014 - - - S106 Gatewarth 104 (Omega Bericote Land) 0.093 - - - S106 Wildlife Habitat Improvements (Carbon) 0.005 - - - S106 Gatewarth 300 (Omega South Zone 7) 0.078 0.050 - - All S106 Projects (fully financed by S106 monies) 0.996 0.085 - -

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Appendix 3 Changes to Capital Programme Budget (by Directorate)

MTFP Approved Budget 404.298 Budget changes: Families & Wellbeing 2018/19 under/over spends - 0.547 Re-profiling budgets 4.693 New Projects (grant/contributions) 0.171 Stockton Heath Primary - Roof repairs 0.150 SEND - Dallam Primary Childrens Kitchen Area 0.010 SEND - Woolston CP Sensory Room & Fencing 0.011 New Projects (unsupported borrowing) - Re-phasing to latter years - 0.697 Removal of Project/Budget (saving) - 0.002 Padgate Community Centre Car Park Resurfacing - 0.002 Corporate Services 2018/19 under/over spends 1.549 Re-profiling budgets 0.045 New Projects (grant/contributions) - New Projects (unsupported borrowing) 0.060 Committee Management System 0.060 Re-phasing to latter years - 1.508 Removal of Project/Budget (saving) - Environment & Transport 2018/19 under/over spends 8.888 Re-profiling budgets 4.278 New Projects (grant/contributions) 0.865 S278 Walton Locks 0.012 Maintenance Incentive Fund 2019/20 0.535 Penketh/Whittle Brook Flood Risk Management 0.210 Parkfields Park Enhancement 0.028 Parsonage Way Playing Field 0.080 New Projects (unsupported borrowing) 14.385 Depot Amalgamation 9.785 Parkfields Park Enhancement 0.020 Parsonage Way Playing Field 0.080 Lymm Dam WC 0.020 St Elphins Park Pavilion Refurbishment 0.100 Western Link Pre construction 3.685 Lymm May Queen Field Emergency Access 0.034 Walton Hall High/Low Ropes Concession 0.010 Grounds Maintenance Plant Equipment Replacement 0.651 Re-phasing to latter years - 16.991 Removal of Project/Budget (saving) - 0.007 Walton Hall Golf Course - 0.002 Walton Gardens CCTV Security Systems - 0.005

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MTFP Approved Budget 404.298 Budget changes: Growth 2018/19 under/over spends 1.756 Re-profiling budgets 1.147 New Projects (grant/contributions) 1.100 Bewsey & Dallam Hub 1.100 New Projects (unsupported borrowing) 10.888 St Werburghs Boiler & Heating System 0.118 Walton Crematorium Building Works 0.080 Parr Hall Ventilation Tower Repairs 0.055 Woodleigh Hot Water Heater 0.033 Padgate House Boiler 0.118 Town Hall Golden Gates Additional Work 0.125 NTH/Quattro Demolition 0.650 Hatters Row Shopping Centre Lift Replacement 0.034 Bewsey & Dallam Hub 2.200 Regeneration Acquisition 7.475 Re-phasing to latter years - 0.677 Removal of Project/Budget (saving) - Invest to Save Programme 2018/19 under/over spends 100.464 Re-profiling budgets 1.900 New Projects (grant/contributions) - New Projects (unsupported borrowing) 169.090 Strategic Property Investment Programme 159.090 Loan to Local Enterprise Partnership 10.000 Re-phasing to latter years - 172.153 Removal of Project/Budget (saving) - 0.005 Various Vans/Tippers - 0.005 Total Budget Adjustments 128.691 2019/20 Quarter 1 Budget 532.989

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Appendix 4 Projects Not Yet Programmed

2019/20 2020/21 2021/22 2022/23 Quarter 1 Forecast Forecast Forecast Project Description Budget Budget Budget Budget £m £m £m £m Warrington Youth Zone 2.999 - - - Upgrading Community & Youth Facilities (deliver Community As 0.043 - - - Broomfields Leisure Centre Artificial Grass Pitch 0.542 - - - Families & Wellbeing 3.584 - - - Corporate Redundancy Costs 2.000 2.000 2.000 4.438 Committee Management System 0.060 - - - Corporate Services 2.060 2.000 2.000 4.438 Maintenance Incentive Fund 2019/20 0.535 - - - Trans Pennine Trail Upgrade 0.517 0.230 - - Depot Amalgamation 0.100 1.965 9.894 0.125 Environment & Transport 1.152 2.195 9.894 0.125 NTH/Quattro Demolition 0.650 0.100 - - Warrington Waterfront - Western Link (acquisition of land) 0.152 - - - Regeneration Acquisition 7.475 - - - Growth 8.277 0.100 - - Loan to Walton Lea 0.035 - - - Loan to Local Enterprise Partnership 10.000 - - - Invest to Save 10.035 - - - Total projects not yet programmed 25.108 4.295 11.894 4.563

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Appendix 5 Variances to the Programme (in excess of £100k)

MTFP - Q1 Major Project Variances (over £100k) Variance Comments £m Adult Services - Better Care Fund (BCF) 0.300 Re-profiling budget - grant allocation for 2019/20 Stockton Heath Primary - Roof repairs 0.150 New Project - fully funded by capital grant DFC Additional Funding Primary Schools 0.286 Re-profiling budget Secondary Places St Gregory's High 0.242 Re-profiling budget Great Sankey High - School Expansion 0.777 Re-profiling budget SEND - Sandy Lane Early Years Centre - 0.167 Project removed SEND - Bridgewater High Key Stage 3&4 - 0.112 Project removed Disabled adaptations to private housing (BCF) 1.639 Re-profiling budget - grant allocation for 2019/20 Private housing - renewal assistance 0.100 Re-profiling budget S106 Newborough Close 0.199 Under/over spend from 2018/19 CCTV Procurement 0.173 Re-profiling budget Warrington Public Libraries Improvement Programme - 0.570 Under/over spend from 2018/19 & re-phasing to latter years Families & Wellbeing Major Variances 3.017 Warrington 20:20 Transformation Programme 0.978 Under/over spend from 2018/19 End User Computing - Management Systems & Technologies - 0.510 Under/over spend from 2018/19 & re-phasing to latter years ICT & Print Service - 0.357 Under/over spend from 2018/19 & re-phasing to latter years Corporate Services Major Variances 0.111 Pothole Action & Flood Resilience Fund 0.252 Under/over spend from 2018/19 & grant allocation for 2019/20 Highways Maintenance Efficiency/Incentive 0.128 Under/over spend from 2019/20 Maintenance Incentive Fund 2019/20 0.535 New Project - grant allocation for 2019/20 Watercourse Improvement Works 0.151 Re-profiling budget Penketh/Whittle Brook Flood Risk Management 0.210 New Project - approved by Cabinet Warrington Bus Interchange Refurbishment 0.374 Under/over spend from 2018/19 Cycle Training - Bikeability 0.124 Re-profiling budget - grant allocation for 2019/20 Road Safety - Local Safety Schemes - 0.179 Re-profiling budget Traffic Management - Minor Works 0.124 Re-profiling budget Traffic Signal Enhancements - 0.226 Re-profiling budget Network Management Plan 0.197 Re-profiling budget Centre Park Link 4.730 Under/over spend from 2018/19 & re-profiling budget Warrington West Station - 0.805 Under/over spend from 2018/19 & re-profiling budget Victoria Park Improvement - 0.362 Under/over spend from 2018/19 & re-phasing to latter years Sankey Valley Park Improvement - 0.129 Under/over spend from 2018/19 & re-phasing to latter years Birchwood Forest Park Ranger & Sports Changing Building - 0.100 Re-phasing to latter years Refurbishment St Elphins Park Pavilion Refurbishment 0.100 New Project - approved by Cabinet Parsonage Way - 0.300 Project removed Flood Risk (contribution to Environment Agency scheme) 0.266 Under/over spend from 2018/19 Western Link Blight Claims 0.722 Under/over spend from 2018/19 Warrington East Phase 2 1.451 Under/over spend from 2018/19 & re-phasing to latter years Warrington East Phase 3 (NPIF) 0.338 Under/over spend from 2018/19 & re-phasing to latter years Omega Local Highways Phase 1 - Lingley Green Avenue/Omega - 0.261 Under/over spend from 2018/19 & re-phasing to latter years Boulevard Junction Improvements Omega Local Highways Phase 2B - Lingley Green Avenue/A57 Liverpool - 1.338 Under/over spend from 2018/19 & re-phasing to latter years Road Junction Improvements Western Link Pre construction 3.685 New Project - approved by Cabinet Omega to Burtonwood Accessibility Improvements - 0.850 Under/over spend from 2018/19 & re-phasing to latter years Stadium Quarter Improvements - 0.548 Under/over spend from 2018/19 & re-profiling budget Community Recycling Centres Infrastructure Investment 0.606 Under/over spend from 2018/19 Walton Estate (Heritage Lottery Fund) 0.350 Under/over spend from 2018/19 Depot Amalgamation 0.100 New Project - approved by Cabinet Warrington Borough Council Combined Control Room 0.315 Under/over spend from 2018/19 & re-phasing to latter years Parsonage Way Playing Field 0.160 New Project - S151 delegated powers Grounds Maintenance Plant Equipment Replacement 0.651 New Project - approved by Cabinet Environment & Transport Major Variances 10.468

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MTFP - Q1 Major Project Variances (over £100k) Variance Comments £m Capital Building Maintenance Programme - 0.152 Under/over spend from 2018/19 & re-profiling budget Museum - Roof - 0.118 Under/over spend from 2018/19 & re-phasing to latter years St Werburghs Boiler & Heating System 0.118 New Project - approved by Cabinet Padgate House Boiler 0.118 New Project - approved by Cabinet Town Hall Golden Gates Refurbishment & Repair 0.329 Under/over spend from 2018/19 Town Hall Golden Gates Additional Work 0.125 New Project - approved by Cabinet NTH/Quattro Demolition 0.650 New Project - approved by Cabinet Golden Square Improvements 0.522 Under/over spend from 2018/19 Bewsey & Dallam Hub 3.470 New Project - approved by Cabinet Stadium Quarter Highway & Infrastructure Improvement Works 1.192 Re-profiling budget Regeneration Acquisition 7.475 New Project - approved by Cabinet Growth Major Variances 13.729 Shared Ownership Mortgages (Local Authority Partnership Purchase) - 0.500 Re-phasing to latter years

Loan to Local Enterprise Partnership 10.000 New Project - approved by Cabinet Redwood Bank - 10.367 Re-profiling budget Solar Farm Projects 0.206 Under/over spend from 2018/19 Street Lighting Energy, Carbon & Asset Improvement 0.800 Under/over spend from 2018/19 Strategic Property Investment Programme to support Regeneration & 123.236 New Project - approved by Cabinet Investment Portfolio Time Square Project - 6.260 Under/over spend from 2018/19 Housing Company - 18.000 Under/over spend from 2018/19 & re-phasing to latter years Solar Photovoltaic (PV) - Plastic Omnium 0.105 Under/over spend from 2018/19 Invest to Save Major Variances 99.220 Total Major Variances (over 100k) 126.545

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Appendix 6 Feasibility Projects

Feasibility - excluding Invest to Save Estimated Total External Total External Capital Project Costs Capital Annual Feasibility Funding Feasibility Funding Programme Project Description Identified Receipts Borrowing Budget Received Borrowing Identified Borrowing £m £m Costs £m £m £m £m £m £m Waterfront Western Link 1.934 0.999 0.935 - - - - - The Stadium Quarter, Warrington (Phase 2) 0.175 - 0.175 - - - - - Risley Moss 0.010 - 0.010 - - - - - Warrington South Strategic Infrastructure Phase 1 (HIF) 0.200 - 0.200 60.200 60.000 - 0.200 0.013 Walton Estate Strategic Infrastructure 0.089 - 0.089 - - - - - South East Urban Extension 0.135 - 0.135 - - - - - Birchwood Park Development 0.690 - 0.690 - - - - - Academy Way 0.070 - 0.070 - - - - - Sankey Canal (HLF Bid) 0.070 - 0.070 - - - - - Shed Theatre 0.150 - 0.150 - - - - - Waterfront Western Link Plan B 0.180 - 0.180 - - - - - HIF Town Centre Electricity Upgrade 0.260 0.100 0.160 - - - - - Town Centre Masterplan 0.175 - 0.175 - - - - - Relocation of Bus Depot (Southern Gateway) 0.175 - 0.175 - - - - - RFL 2021 Victoria Park Pitch 0.097 - 0.097 1.127 0.600 - 0.527 0.056 Western Link Phase 2 0.200 0.200 212.740 141.095 - 71.645 4.657 Total - excluding Invest to Save 4.610 1.099 3.511 274.067 201.695 - 72.372 4.726

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Feasibility - Invest to Save Estimated Total External Total External Capital Project Costs Capital Annual Feasibility Funding Feasibility Funding Programme Project Description Identified Receipts Borrowing Budget Received Borrowing Identified Borrowing £m £m Costs £m £m £m £m £m £m INVEST TO SAVE - John Street Multi Storey Car Park 0.120 - 0.120 14.032 - - 14.032 0.912 INVEST TO SAVE - Solar Farm Development 0.050 - 0.050 - - - - - Total - Invest to Save 0.170 - 0.170 14.032 - - 14.032 0.912 Total Feasibility Projects 4.780 1.099 3.681 288.099 201.695 - 86.404 5.638

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WARRINGTON BOROUGH COUNCIL

CABINET – 9 SEPTEMBER 2019

Report of Cabinet Councillor C Mitchell, Deputy Leader and Cabinet Member, Member: Corporate Resources

Director: Lynton Green, Deputy Chief Executive and Director of Corporate Services

Senior Responsible Jean Gleave, Head of Internal Audit, Risk and Insurance Officer:

Contact Details: Email Address: Telephone: [email protected] 01925 442354

Key Decision No. NKD-018/19

Ward Members: All

TITLE OF REPORT: ANNUAL RISK AND INSURANCE REPORT 2018/19

1. PURPOSE

1.1 The report provides an overview of the Council’s strategic risk management and insurance activity for the financial year 2018/19.

2. CONFIDENTIAL OR EXEMPT

2.1 The report is not confidential or exempt.

3. INTRODUCTION AND BACKGROUND

3.1 The risk and insurance service supports projects, directorates and senior managers to maintain appropriate risk management arrangements and ensures that insurance cover is in place to protect the Council from the risk of financial loss arising from its responsibilities as an employer, an owner and occupier of property, a highways authority and a provider of public services.

3.2 The service also facilitates the reporting process, to ensure that directorate management teams, the senior management team (SMT) and Cabinet have appropriate oversight of strategic risks and associated control arrangements.

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4. STRATEGIC RISK MANAGEMENT

4.1 Strategic risks are those which have the potential to impact on the Council’s achievement of its corporate pledges and strategic objectives. The strategic risk register therefore provides an overview of the most important risks facing the Council. Operational registers are also maintained at directorate, service and project level.

4.2 Systems of risk management typically include reference to risk tolerance and risk appetite. Risk tolerance identifies those risks which organisations are able to accept and manage, and those which are deemed unacceptable. Risk appetite can be thought of as the amount of risk an organisation is willing to pursue or be exposed to, in pursuit of its strategic and organisational objectives.

4.3 By virtue of its statutory responsibilities for public services and associated functions the Council often has limited choice in whether or not to accept or tolerate risk. Clearly there are some types of risks where the Council’s tolerance will be extremely low, or risk averse, for example, those that could impact the safety of service users, employees, members or the general public. However, it is not possible to articulate the Council’s appetite for every form of risk it may encounter or to predetermine which risks are acceptable or not acceptable.

4.4 The Council’s Policy and Strategy for risk management aims to inform and strengthen the decision making process, by ensuring that:

• Risks, as well as benefits and opportunities, are always considered, identified and reported. • Risks are assessed and recorded consistently. • Proposals which are likely to involve higher or more challenging levels of risk, are subject to a robust and detailed risk appraisal process. • Risks which are likely to impact the achievement of one or more corporate objectives or to carry significant financial implications are escalated to the senior management team and the Cabinet for review and approval. • Exposure to risks for which the Council’s tolerance is low is minimised.

4.5 The Council adopts a consistent approach to the assessment of risk, taking account of the potential impact of each risk, as well as the likelihood that the risk will materialise. This allows risks to be scored, ranked, and compared. Whilst not an exact science, the ranking of risks provides an indication of the Council’s tolerance, as summarised below in Figure 1 below.

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Figure 1

Acceptable •Limited impact and/or likelihood of occurrence •No additional controls or treatments required

Manageable •Some impact and/or possible likelihood of occurrence •Control or treat within usual arrangements

Significant •More serious impact and/or probable likelihood of occurrence •Will require specific control measures and reporting arrangements

Major •Most serious impact and/or probable likelihood of occurrence •Will require specific control measures and reporting arrangements

4.6 The strategic risk register for Q4 2018/19, reviewed by Cabinet in June 2019, is provided as Appendix 1 to this report. Figure 2 presents an overview of the Council’s strategic risk profile and specifically, the number of risks recorded against each ranking, at the end of 2018/19.

Figure 2

ASSESSMENT SCORE RISK ASSESSMENT

SEVERE 5 1 4 I M SERIOUS 4 10 7 1 P A MODERATE 3 1 1 C T MINOR 2 1

TRIVIAL 1

ALMOST ASSESSMENT RARE UNLIKELY POSSIBLE PROBABLE CERTAIN SCORE 1 2 3 4 5 LIKELIHOOD

4.7 The most highly rated risks for 2018/19 are summarised in Figure 3 below. Detailed control strategies are in place to manage each of these risks and progress is monitored closely by SMT and Cabinet.

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Figure 3

SRR 6 •Additional duties imposed by Homelessness Reduction Act 2018 Homelessness •Limited supply of affordable housing

SRR 9 •Additional pressure on key services Pandemic Flu •Impact on Council and other key partners and service providers

SRR 15 •Constantly changing cyber security landscape Cyber Incident •Increasing frequency of attacks

SRR 18 •Increasing demand for services Financial Position •Loss of central government funding

SRR 21 •Managing a complex and diverse organisation Corporate Governance •Managing relationships with key partners and suppliers

4.8 A review of changes to the strategic risk register over the course of the year, together with other intelligence including performance and finance reports to Cabinet, provides an indication of the effectiveness of the Council’s risk management arrangements.

4.9 At the end of 2017/18, there were 23 risks recorded on the register. Two of these, SRR 3 (safeguarding) and SRR 4 (inspection judgements) were split to provide greater clarity about the management of risks in adults’ and children’s social care services. One risk, SRR 8 (the risk of a complete failure in the health and social care system) was removed, because the risks were captured elsewhere. The risks involved in moving towards a more collaborative system of health and social care continue to be managed and monitored as part of the Better Care Fund and Warrington Together programmes.

4.10 Two new risks, SRR 22 and SRR 23, were identified, relating to the potential impact of the UK’s exit from the European Union and the migration of Council staff into the new offices being constructed as part of the Time Square development. Recognition of these risks did not mean that management arrangements were ineffective but has enabled more detailed oversight by SMT and Cabinet.

4.11 Over 80% of the risks recognised at the end of 2017/18 have remained stable during 2018/19. Risk scores have reduced for two risks, relating to the challenge of maintaining high standards of educational performance in the face of ongoing reforms (SRR 5) and delivery of the Great Sankey Neighbourhood Hub project (SRR 14). External factors have increased the assessment of risks associated with the stability of the local social care market (SRR 2) and a potential cyber incident (SRR 15).

4.12 A comparison of the strategic risk registers for 2017/18 and 2018/19 is presented in Figure 4 below.

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Figure 4

Strategic Risk Register 2017/18 to 2018/19 25

20

15

10

5

0 SRR 2 SRR 5 SRR 6 SRR 7 SRR 8 SRR 9 SRR SRR 1c SRR SRR 1a SRR 3a SRR 4a SRR SRR 10 SRR 11 SRR 12 SRR 13 SRR 14 SRR 15 SRR 16 SRR 17 SRR 18 SRR 19 SRR 20 SRR 21 SRR 22 SRR 23 SRR SRR 1b SRR 3b SRR 4b SRR

Q4 2017/18 Q4 2018/19

5. INSURANCE ACTIVITY

5.1 The Council contracts with Salford City Council to manage insurance and compensation claims on its behalf. In agreement with our liability and motor insurers, the Council has delegated authority to Salford to settle claims valued up to £25,000. In practice, settlements are agreed in consultation with the risk and insurance service.

5.2 Claims with an estimated total cost of more than £25,000 and claims not covered by this agreement continue to be managed by insurers with support from Salford and the risk and insurance service. The main exclusions to the handling agreement are complex claims and claims alleging libel or slander, error by officers in the performance of statutory duties, professional negligence in the provision of services to third parties and medical malpractice.

5.3 Insurance claims activity for the period April 2018 to March 2019 is summarised in Figure 5 below. The information presents the year end position for 2018/19. There are some minor differences between these totals and those reported at Q2 and Q4 which are the result of post period adjustments.

5.4 Should the Council be found liable for the totality of the outstanding caseload, insurers would meet costs over the excess for the relevant policies, currently estimated at £1.228 million. The balance of £1.960 million would fall to the Council and is provided for within the Council’s insurance fund.

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Figure 5 Insurance Claims Activity 2018/19 Number of Cost Estimates Claims £’000 Outstanding caseload at 1 April 2018 231 3,005 Claims opened during 2018/19 318 1,162 Claims closed during 2018/19 -294 -919 Revaluations of outstanding claims -60 Outstanding caseload at 31 March 2019 255 3,188

5.5 The total number of claims opened in 2018/19 includes claims which have been reported, investigated and closed in previous periods, and then re-opened after submission of additional information by claimants. Excluding these claims, 276 new claims were reported in 2018/19, compared to a total of 296 new claims for the previous year. This continues the trend, observed last year and demonstrated in Figure 6 below, of an overall reduction in the number of new claims being presented.

Figure 6

CUMMULATIVE NUMBER OF NEW CLAIMS REPORTED PER MONTH 600

500

400

300

200

100

0 APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

2014/15 2015/16 2016/17 2017/18 2018/19

5.6 Whilst it is not possible to be definitive about the reasons behind this trend, we believe that it is likely to be attributable to:

• Our proactive approach to risk management, which monitors claim activity and reports any developing trends or areas of concern to directorates and SMT for consideration and action. • The Council’s significant investment in highways maintenance, together with effective policies and practices for highways inspections and complaints. • Our robust approach to the investigation and management of claims, particularly where fraud is suspected. • External reforms which mean that low value personal injury claims are becoming less attractive to claims management companies and solicitors.

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5.7 Analysis of the year-end open caseload confirms that the majority of claims are highways related public liability claims. However, non-highways related public liability claims continue to account for the highest proportion of the caseload by value. Comparison with the equivalent data for 2017/18, as provided in Figure 7 below confirms that the composition of the caseload has remained relatively consistent, although we have experienced a small increase in more complex, non-highways public liability claims.

Figure 7

Open Claims 31 March 2018 to 31 March 2019 By Volume and Value 120 £2,000,000

100 £1,500,000 80

60 £1,000,000

40 £500,000 20

0 £0 Employer's Property Public Liability - Public Liability - Motor Liability Highways Other

Number of Claims March 2018 Number of Claims March 2019 Value of Claims March 2018 Value of Claims March 2019

6. FINANCIAL CONSIDERATIONS

6.1 Where there are high-level financial implications associated with particular risks these will be recognised in the impact scoring for that risk. For example, a significant breach of information governance or health and safety requirements could result in the Council being fined by the Information Commissioner’s Office or the Health and Safety Executive.

6.2 In consultation with the accountancy service, we have maintained the level of reserves and provisions established to meet the future excess costs of insurance claims at the same levels as in 2017/18. Total funds of £4.7 million, including an actuarial estimate of roughly £2.0 million for claims which have been incurred but not yet reported to us, have been set aside. Although claim numbers are reducing overall, and we have robust claims handling arrangements in place, our claims portfolio is potentially becoming more complex, as noted in section 5 above. The levels of reserves and provisions will continue to be reviewed annually.

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6.3 We also maintain reserves and provisions totalling just over £0.5 million to meet the cost of claims lodged against the Council’s former insurer, Municipal Mutual Insurance (MMI), which is now insolvent. Claims are currently being paid by MMI at a rate of 75%, with the Council required to contribute the remaining 25%.

6.4 Members will be aware that in recent years the Council has chosen to accept higher excess levels on its employer’s liability, public liability and motor policies to secure reductions in premium costs. A robust approach to the investigation of claims is therefore critical to ensuring the Council maintains effective control over claim settlements for which it is primarily responsible. To illustrate the impact of this, we have previously reported the total costs incurred to settle claims closed during the financial year. However:

• Year on year comparisons can be distorted by genuine variations in the claims profile. • Focusing on claim settlement costs does not take account of other risk management costs, such as policy premiums and claims handling costs.

6.5 This year, we have therefore compiled a Total Cost of Risk Analysis, to demonstrate that although the proportion of costs funded by the Council is increasing, costs are reducing overall.

Figure 8

Total Cost of Risk Analysis 2016/17 2017/18 2018/19 £’000 £’000 £’000 Insurance Premiums 960.2 915.5 994.2 Claims Handling Costs 167.3 135.0 115.0 Brokerage 12.5 12.5 12.5 Council Funded Claims Costs 298.8 601.3 250.9 Insurer Funded Claims Costs 729.3 283.1 251.9 Total Cost of Risk 2,168.1 1,947.4 1,624.5

Proportion Funded by Council 66.4% 85.5% 84.5%

6.6 We continue to adopt a robust approach to the investigation of spurious and suspect claims and Salford’s expertise has been particularly beneficial in this respect. Of the 294 claims closed in 2018/19:

• 228 were closed without settlement or cost, producing notional savings of just under £1,000,000. • 10 public liability claims were specifically investigated for fraud, resulting in notional savings of £67,000

6.7 Notional savings represent the difference between the amount which could have been paid to settle the claim (settlements plus costs) and the actual costs incurred in investigation.

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7. RISK ASSESSMENT

7.1 The Council must ensure that it has appropriate risk management arrangements in place in order to manage its risks and maintain a sound system of internal control. Failure to manage risks effectively can in some circumstances lead to an increase in insurance claims. Insurance cover is in place to manage the financial impact of this but as noted above, the Council now carries higher levels of excess on its employer’s liability, public liability and motor policies.

8. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

8.1 The matters discussed in this report do not give rise to any specific equality and diversity implications.

9. CONSULTATION

9.1 N/A.

10. REASONS FOR RECOMMENDATION

10.1 To ensure that the Council maintains an effective framework of internal control and continues to manage its key risks, and to ensure the continued review of the Council’s strategic risks.

11.2 To assist the Council in meeting its statutory responsibility to review the effectiveness of its systems of internal control and prepare an annual governance statement.

11. RECOMMENDATION

11.1 The Cabinet is recommended to note the annual review of risk management and insurance activity for 2018/19.

12. BACKGROUND PAPERS

(i) The Strategic Risk Register (ii) Risk Management Reports to SMT, Cabinet and the Audit and Corporate Governance Committee (iii) Analysis of claim data extracted from LACHS (may contain sensitive and/or confidential information which will require redaction before release)

Contact for Background Papers:

Name E-mail Telephone Alison Weir [email protected] 01925 442613 Risk and Insurance Manager

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150 STRATEGIC RISK REGISTER - QUARTER 4 APPENDIX 1 Reference / Ownership Risk Assessment Control Strategy Risk Description Existing Treatment / Controls Planned Treatment / Controls (to be Contingency Plans implemented during 2018/19) Q3 Q4

Score (arrangements you already have in place to (arrangements you plan to put in place to (arrangements which can be put into place if Travel

Impact Q4 Impact reduce the likelihood and/or impact of the reduce the likelihood and/or impact of the the risk was to materialise now) Direction of of Direction Lead Officer Lead Original SMT SMT Original Risk Number Risk Likelihood Q4 Likelihood Strategic Lead Strategic

Quarterly Score Score Quarterly Score Quarterly potential risk) potential risk) SRR 1a The Council is unable to manage the demand for 12 3 4 12 12 Adults Tranformation Board - Prevent, Reduce Delay - Adult Transformation Board - In year 2, the demand Depending on how the demand presents and for which SP adults social care services resulting in additional  monitoring of targeted projects to manage demand management transformation programme in Adult services group of service users - contingency includes: remains on target for the majoirty of Phase 1 deliverables by financial pressures. First Response Service - manage demand at the Front Prioritising and risk assessing need, use of local, Door . end of March 2019. This includes 12 month review of First regional and national Market options, multi-agency Response Service, further development of IAG offer, multi Monthly Contracts Board - oversight of all contracts and review of provision etc. utilise Warrington Together agency plan for roll out of strengths based approaches, takes account of such issues as risk, market resilience Programme, Provider Market Engagement Events, Cztherine Jones Transitions project. etc. Assisted Living Strategy drafted - 3 year plan to reduce establishing new provider forums that seek to Warrington Together - Frailty Hub at WHH established demand through assistive technology, self help , integrated understand market pressures better and work with skills to target elderly frail service demand approaches to delivery with health partners, single handed for care regarding external market workforce planning. care. Refreshed ASC Market Position Statement drafted to shape market provision to meet future need more effectively. Warrington Together Frailty Hub - service extended from 2 days to 4 days with plans to staff to 5 days in January 2019. 24 hour Rapid Intervention Service planned for Go Live January 2019 - supports people to return home from Frailty Hub and avoid admission to Hospital. Venn Consulting commissioned to analyse flow across the Health and Social Care system and identify where resources should be targeted. Integrated Community Teams Workstream established and continuing to develop the Locality Model and adopt a multiagency appraoch to targeting high end users of services to manage demand. Re-tender of Domiciliary Care Framework to shape delivery model to improve demand management across the borough. Review of AMHP service delivery model. Review of Safeguarding Team Model to manage increased referrals from care sector.

SRR 1b The Council is unable to manage the increasing 12 3 4 12 12 Children's Services continue to oversee need and Children's Serv ices will be linking into the benefits Depending on how the demand presents and for which SP demand for children's social care services,  'demand' on an operational level, with operational realisation work undertaken by Adult Services to ensure group of service users - contingency includes: resulting in additional financial pressures and activities to manage, prioritise and track fluctuations that there is a coordinated approach to demand Prioritising and risk assessing need, use of local, potentially unmanaged reductions in service and changes in demand effectively, whilst safely management across the directorate. regional and national Market options, multi-agency reducing the number of children in care. Reports are review of provision etc. provision. provided to the OBB Board. Families First - The Edge of Care Service are supporting this work by providing a Amanda Amesbury range of support to Warrington's in house residential children's homes. The Families First Service is also working to reduce the number of children on the Edge of Care and safely reduce the number of children subject to Child Protection Plans by providing a comprehensive range of support including a respite care offer. Early Help has established a first response team at the front door with the aim being that this service will direct referrals away from children's social care and into early help (where appropriorate) As we implement the local plan and see a population growth we will need to consider resourcing needs (more children moving into Borough will inevitably lead to increase in demand).

151 STRATEGIC RISK REGISTER - QUARTER 4 APPENDIX 1 Reference / Ownership Risk Assessment Control Strategy Risk Description Existing Treatment / Controls Planned Treatment / Controls (to be Contingency Plans implemented during 2018/19) Q3 Q4

Score (arrangements you already have in place to (arrangements you plan to put in place to (arrangements which can be put into place if Travel

Impact Q4 Impact reduce the likelihood and/or impact of the reduce the likelihood and/or impact of the the risk was to materialise now) Direction of of Direction Lead Officer Lead Original SMT SMT Original Risk Number Risk Likelihood Q4 Likelihood Strategic Lead Strategic

Quarterly Score Score Quarterly Score Quarterly potential risk) potential risk) SRR 1c The Council is unable to manage the demand on 16 4 4 16 16 Families First – The Edge of Care Service are A deficit reduction plan was presented to Schools DSG reserves could be used to reduce the deficit for SP the high needs budget leading to a considerable  supporting this work by providing a range of support to Forum in March 2018 and it was agreed to develop 2018/19, which will otherwise be rolled over to 2019/20 overspend. parents and carers alongside support to Warrington’s in eight of the proposals further as a way to mitigate the and will add to the existing burdens in the High Needs house residential children’s homes. The Families First overspend on the high needs block. A review of Block. service is also working to reduce the number of children external placements has been scheduled for 2019/20 to on the Edge of Care and safely reduced the number of assess and manage the demand for high cost

Paula Worthington children subject to Child Protection Plans by providing a provision. comprehensive range of support including a respite The application to the DfE to establish an ASD Free care offer. Early help has established a first response School in Warrington has been successful and once in team at the front door with the aim being that this place will reduce some of the need to place children service will direct referrals away from children’s social with these needs out of area. care and into early help (where appropriate). Work on 19-25 provision will continue to be developed and the transition service is working closely with Adults and Childrens to deliver alternative offers of support to reduce spend on external placements and improve the early identification of appropriate support to meet the needs of young people locally.

SRR 2 The local social care market, particularly services 16 4 4 16 16 This is a national issue and we monitor closely the Contracts Board Meetings Monthly - regular reviews of Depending on which sector is unstable affecting which SP for adults, becomes unstable, leading to difficulties  fluctuations and changes in need and capacity of the sufficiency and quality in the social care sector working group/s of service users - contingency includes: in meeting assessed need. local markets for domiciliary, residential, nursing, closely with partners and providers to create more Prioritising and risk assessing need, use of local, supported living and other services. sustainable arrangements. regional and national Market options, multi-agency Monitoring takes place at least weekly and in some Safeguarding and Quality Assurance team work closely review of provision, price review etc. areas daily. Multiagency Teleconference arrangements with contractsand commissioning to proactively Catherine Jones daily/weekly depending on pressures. idenytify and support providers who require There are a number of fora established including improvement. Improving the Qualityof Care action plan providers and partners to review and monitor how drafted sufficiency and quality is maintained in key areas. Refreshed Market Position Statement drafted to give When markets show signs of stress or difficulty there providers a full assessment of our market needs are efforts provide support, incentives and re allowing them to plan and develop services more commissioning to reduce pressure. proactively where we have gaps or shortages. Significant uplift in rates for domiciiary care providers to Review and refresh of Better Care Fund governance stabilise the market. and monitoring arrangements to ensure available Increased availabillity of EMI Nursing Dementia plus resources maximised placements which has been a particular area where capacity has been low.

SRR 3a A failure in safeguarding services results in the 12 3 4 12 12 Regular and effective management oversight and Maintenance of current controls Follow safeguarding adults pathway including SP death of, or significant injury to, a vulnerable adult,  supervision of caseloads and practice quality as per Implement Childrens recruitment and retention strategy notification to Safeguarding Board Chair. Decision policy including support and oversight from specialist in 2017/18 to ensure that caseloads are managable. making to commission Safeguarding Adults Reviews in staff. Review of Adult Safeguarding model 2018-2019 to order to understand cause and implement learning Establishment of full time Principle Social Workers for ensure resources targeted most effectively actions required to address issues and any failure. Adults and Children responsible for quality and Catherine Jones development of social work practice childrens's - systemic practice training commenced, to / Amanda amesbury Quarterly audits of children's casework undertaken by drive and improve practice, purpose to ensure both the local Adults and Children's safeguarding safeguarding is the priority boards and the Safeguarding Quality Assurance Implement recommendations of 12 month evaluation of Teams; and commissioning, procurement and contract First Response Team who respond to a significant management arrangements. amount of initial safeguarding concerns with support Robust arrangements in place via the Safeguarding from specialist services. Boards to commission SAR's and ensure learning from Adult Training Panel review of Safeguarding and DOLS incidents of significant injury or death are translated into training across the workforce practice improvement Teaching Partnership in place and continues to develop

152 STRATEGIC RISK REGISTER - QUARTER 4 APPENDIX 1 Reference / Ownership Risk Assessment Control Strategy Risk Description Existing Treatment / Controls Planned Treatment / Controls (to be Contingency Plans implemented during 2018/19) Q3 Q4

Score (arrangements you already have in place to (arrangements you plan to put in place to (arrangements which can be put into place if Travel

Impact Q4 Impact reduce the likelihood and/or impact of the reduce the likelihood and/or impact of the the risk was to materialise now) Direction of of Direction Lead Officer Lead Original SMT SMT Original Risk Number Risk Likelihood Q4 Likelihood Strategic Lead Strategic

Quarterly Score Score Quarterly Score Quarterly potential risk) potential risk) SRR 3b A failure in safeguarding services, due to failure to 12 3 4 12 12 Existing controls to mitigate a failure in safeguarding Maintenance of current controls, implementing Children's safeguarding arrangements follow a similar SP recruit and retain suitably qualified and  services include regular and effective management recruitment and retention strategy in 2017/18 to ensure pathway to adults. As of April 2019 we have launched experienced social workers, or a failure in oversight and supervision, workforce planning that caseloads are managable. Re-design of adult the new safeguarding partnership which we believe will partnership working results in the death of, or arrangements to ensure that caseloads are services creating a new first Response Team, who strengthen our safeguarding practice. manageable, quarterly audits of children's casework respond to a significant amount of initial safeguarding significant injury to, a vulnerable child. undertaken by both the local Adults and Children's concerns with support from specialist services should safeguarding boards and the Safeguarding Quality enhance responsiveness and consistency of initial Amanda Amesbury Assurance Teams; and commissioning, procurement assessments and interventions. Further developed and contract management arrangements. briefings in relation to reviews and learning from practice.

SRR 4a The Council receives notice of a significantly 12 3 4 12 12 Adults and Care Quality Team - robust performance Adults Dignity and Care Quality Team - Improving the Adults contingency includes: Prioritising and risk SP adverse inspection judgement from the Care  monitoring systems for care providers in place and Quality of Care Action Plan drafted for delivery in 2019 assessing need, use of local, regional and national Quality Commission or other regulatory body or strong networks with local CQC inspectorate enable the to improve standards of care in residential settings. A Market options, multi-agency review of provision, price severe adverse reputational damage. sharing of intelligence and proactive t argeted support focused inspection with good outcomes and a positive review etc. to weaker providers to prevent market failure. annual conversation gives cause for some optimism This could result in the loss of one or more key Internally regular performance and audit of activity is that inspection is less to be feared as progress is being Children's - urgent review of comments of inspectors Catherine Jones providers, impacting the Council's ability to meet benchmarked against targets and in the context of made. Additional strategic capacity has been would need to be considered and remedial action taken /Amanda amesbury assessed need and ultimately, the imposition of inspection standards. This is used to inform established in 2017/18 to lead the SEND reform external advisors to manage service provision on development and investment plans to maintain agenda and ensure compliance with the SEND code of behalf of the Council. standards. practice. An inspection preparation project board had For contracted services there are regular monitoring been convened around children's social care and arrangements and escalation processes where SEND inspections which will ensure readiness. standards fall below expectations. Due diligence financial checks are carried out for all providers prior to entering contracting arrangements. In the event of unsatisfactory CQC or Ofsted judgements there are processes of risk assessment and then action planning that range from support through to default and closure. a robust audit framework is in place in children's to assure ourselves of progress being made.

SRR 4b The Council receives a significantly adverse 12 3 4 12 12 Internally regular performance and audit of activity is A focused inspection with good outcomes and a Follow safeguarding adults pathway including SP inspection judgement from the Ofsted or other  benchmarked against targets and in the context of positive annual conversation gives cause for some notification of Safeguarding Chair and decision making regulatory body or severe adverse reputational inspection standards. This is used to inform optimism that inspection is less to be feared as regarding Safeguarding Adults Review in order to damage.. development and investment plans to maintain progress is being made. Additional strategic capacity understand cause and implement actions required to standards. For contracted services there are regular has been established in 2017/18 to lead the SEND address issues and any failure. This could result in the loss of one or more key monitoring arrangements and escalation processes reform agenda and ensure compliance with the SEND providers, imapcting the Council's ability to meet where standards fall below expectations. In the event of code of practice. An inspection preparation project

Amanda Amesbury Amanda assessed need and ultimately, the imposition of unsatisfactory CQC or Ofsted judgements there are board had been convened around children's social care external advisors to manage service provision on processes of risk assessment and then action planning and SEND inspections which will ensure readiness. behalf of the Council. that range from support through to default and closure. LGA peer review of permanence due to take place in April 2019 will offer challenge and support to our improvement activity across the service.

SRR 5 Ongoing educational reforms, including 9 3 3 6 9 The Education Services School Improvement Team There are ongoing discussions with individual schools Work is underway to explore an enhanced traded SP academisation and the national formula funding  identify vulnerabilities in educational performance via regarding academisation and their desire to convert. At services offer to schools, but if all schools did convert review, could impact on the Council's ability to the Keeping All Schools Under Review (KASUR) Forum this time this is managed by the Education Service as to academies the local authority would move to deliver support Warrington's schools and maintain high and respond accordingly to support the attainment of 'business as usual' activity. its statutory functions only. high educational outcomes and in readiness for Ofsted standards of educational performance. inspections. The LA is working closely with the

Paula Worthington Teaching Schools to develop a model of high improvement.

153 STRATEGIC RISK REGISTER - QUARTER 4 APPENDIX 1 Reference / Ownership Risk Assessment Control Strategy Risk Description Existing Treatment / Controls Planned Treatment / Controls (to be Contingency Plans implemented during 2018/19) Q3 Q4

Score (arrangements you already have in place to (arrangements you plan to put in place to (arrangements which can be put into place if Travel

Impact Q4 Impact reduce the likelihood and/or impact of the reduce the likelihood and/or impact of the the risk was to materialise now) Direction of of Direction Lead Officer Lead Original SMT SMT Original Risk Number Risk Likelihood Q4 Likelihood Strategic Lead Strategic

Quarterly Score Score Quarterly Score Quarterly potential risk) potential risk) SRR 6 Legislative changes are operational from 3rd April 20 5 4 20 20 Warrington Homelessness Strategy and Housing The changes in legislation have come with limited The new duties have resulted in queueing up in  Strategy. New duties for relief and prevention of additional resources to implement the changes. We temporary accommodation and increasing numbers of MAA 2018 and place additional demands on the Council to manage homelessness. Reduced number of homelessness have been operational from April 2018 have successfully bid for further grants to supplement families and individuals to whom we owe a duty. The affordable homes being built in the town under the Homelessness Reduction Act. We have the funding available to us for homelessness prevention Severe Weather Emergency Protocol arrangements

Dave Cowley implemented changes to the housing allocations policy. and to support move-on. We are preparing to tender all have been put in place, with further reliance on outstripped by right to buy, welfare reform, and low We have increased the numbers of temporary homelessness services to quality specification, and emergency bed and breakfast provision where that can turnover of social housing. accommodation, including New Start for rough sleepers prioritising intensive support to the most vulnerable. be accessed. Due to change in software systems and and working with RSLs. New Start is a package of The homelessness strategy will be refreshed in KPIs that came with the new legislative duties, we are support and accommodation for former rough sleepers. 2019/20. reliant on the quarterly figures produced by MHCLG - while council IT colleagues have been trying to arrive at a resolution that can extract local metrics from the new database.

SRR 7 The Council, working with its partners, is unable to 12 4 4 16 16 Warrington Health in Business Programme. Warrington Will require the following interventions across council The gap in employment rates for those with long term  Wellbeing hub. Central Area Neighboourhood Renewal departments and with health partners: Employer pledge condition or disabilitty has been widening year on year MAA reduce health inequalities across Warrington. Board and Masterplan. and health in business programme. Inclusive growth from 2013/14. Most recent data for 2016/17 confirm the Health in Business events, hosted through the programme. Social value in procurement. Warrington widening gap. StevePark Business Exchange. Active travel. Ongoing ESF Wellbeing in collaborative clusters/outreach community ESF projects to be enhanced and poverty reduction programme for careers and local people into jobs. activities. Need to enhance work with parish councils in initiatives to be considered. Muna Abdel Aziz the most deprived areas outside of Central. Health and Wellbeing initiatives will benefit businesses Workplace Wellbeing Charter commitment across for increased productivity as a result of lower absence organisations. Business engagement to introduce rates. physical and mental wellbeing initiatives, including health kiosk and Active travel. Propose to undertake an assessment of the supply/demand and access to employment opportunities.Work with schools on skills and careers. Skills for Care.

SRR 9 Warrington experiences a Pandemic Flu outbreak 20 4 5 20 20 Flu Pandemic remains one of the highest risks on the Corporate, Directorate and service level business A pandemic declaration would result in a Major Incident  national risk register. At a Resilience Forum level WBC continuity / flu pandemic plans have been reviewed declared, it would be a national emergency situation MAA which creates significant additional pressure on key services at the same time as limiting our ability works with its Cheshire partners to ensure multi agency and revised during 2018. Consideration will be given with full national command & control arrangements in response plans are in place and regularly maintained. to arranging an exercise to appropriately test plans in place. The WBC Major Emergency Plan (MEP) would Tracy Flute to respond to those pressures. Locally through the Health Protection Forum partners 2019. An internal audit review is proposed to consider be invoked which outlines the full response structures share planning and consider any potential gaps. Level business continuity preparedness in 2019/20. and would underpin the Councils response to a Flu

Theresa Whitfield of alert and preparedness remains high. The WBC Pandemic and the management of associated BC Corporate Flu pandemic plan has been reviewed and implications. Cheshire Resilience Forum has a Flu reflects the response arrangements and alert phases Pandemic response plan which reflects the multi- that would be implemented nationally which tie into the agency response structures outlined within the MEP. Resilience Forum response structures. Outbreak Health, social care and education integrated flu plan for Control Plans / response structure in place to provide Warrington has been developed to provide coordination immediate response during assessment phase. Despite and assurance in Warrington in the event of a the level of preparedness across the Council and all pandemic. partners, impact of a Flu Pandemic will be subject to the severity of the strain of influenza, which will only be known once an outbreak is detected. If clinical attack rates are at a higher level this will undoubtedly have an impact on continuity across all services / partners. For this reason, in the absence of any assurance of the type of strain that could emerge, the scoring remains the same.

154 STRATEGIC RISK REGISTER - QUARTER 4 APPENDIX 1 Reference / Ownership Risk Assessment Control Strategy Risk Description Existing Treatment / Controls Planned Treatment / Controls (to be Contingency Plans implemented during 2018/19) Q3 Q4

Score (arrangements you already have in place to (arrangements you plan to put in place to (arrangements which can be put into place if Travel

Impact Q4 Impact reduce the likelihood and/or impact of the reduce the likelihood and/or impact of the the risk was to materialise now) Direction of of Direction Lead Officer Lead Original SMT SMT Original Risk Number Risk Likelihood Q4 Likelihood Strategic Lead Strategic

Quarterly Score Score Quarterly Score Quarterly potential risk) potential risk) SRR 10 Warrington experiences a significant downturn in 12 3 4 12 12 Accountancy and Property officers regularly monitor the Officers are aware of the impact of the Carillion Service/project specific contingency plans are the economy, which could impact the Council in  current performance of the commercial estate and liquidation and the potential effect upon main and sub introduced wherever concerns are identified.

S Park various ways, including: report any major variations as part of the budget contractors supporting the wider regeneration - increasing the demand for services to support monitoring process. programme. A company/contractor risk register has The performance of the Birchwood Park estate and been established and is monitored and updated vulnerable people and other frontline services delivery of key regeneration projects is closely regularly to identify potential/emerging concerns. such as benefits, council tax support, contact monitored by programme specific boards. Where necessary, officers will work with contractors to Stephen Fitzsimons centre etc. The OBB managing demand workstream working ensure security of service provision and if necessary to - detrimental impacts for the performance of the alongside traditional management systems will look to introduce specific contingency plans. commercial estate; mitigate any potential impact of increased demand for - reducing the availability and/or increasing the services. cost of raw materials, component parts and other Greater focus on financial checks and ongoing due resources which in turn could affect the delivery of diligence as part of the pre-procurement process, the Council's major regeneration and infrastructure particularly for large regeneration projects and schemes. projects.

SRR 11 The Council receives a successful legal challenge 20 2 5 10 10 A formal Corporate Governance structure and project Following approval of the draft Plan for consultation, the The main risk for legal challenge is following the to the Local Plan which could result in a Plan being  planning approach for the Local Plan was introduced in Council will undertake a series of detailed public adoption of the Local Plan. The Local Plan Board will

S Park imposed. Q3 2017/18, overseen by a new Local Plan Board consultation events at the Halliwell Jones Stadium. therefore maintain a detailed risk register and develop comprising senior officers from across the Council. A The outcome of these consultations will be used to contingency plans well ahead of the adoption of the

Michael Bell Member Forum has also been established to facilitate update the Plan, prior to its submission for Examination Local Plan. ongoing liaison. in Public by an independent inspector. Barristers have been appointed to provide legal opinion Legal opinion will continue to inform each stage of the prior to each key stage of the Plan making process and process and formal Executive Board and Council the Council is engaging with the Planning Inspectorate, approval will be sought to proceed. MHCLG and Homes England to identify and address any potential issues. A detailed project plan, risk register and issues log has been established to ensure that the Local Plan Board can assess risks and agree mitigations.

SRR 12 Warrington experiences a major incident, which 16 4 4 16 16 Subject to the type of incident and the resulting A campaign to encourage additional volunteers to The Major Emergency Plan, risk specific plans are all in creates significant additional pressure on key  disruption, the impact on the organisation and its ability undertake roles such as Emergency Centre Manager place and tested in line with statutory timeframes. A to maintain critical services whilst supporting the and Rest Centre Manager will take place through Your test of the Evacuation & Shelter plan is to take place in

D Boyer services at the same time as limiting our ability to respond to those pressures. incident response could be significant, particularly in a Voice in the first quarter of 2019 with training for ECM / partnership with Halton Borough Council in September protracted incident and dependent on the consequence RCM being planned for later in 2019. This will hopefully 19. The statutory test of the COMAH plan for the one management issues arising. The Council has well increase resilience of the volunteer pool. Top Tier site within the Borough takes place in June 19.

Theresa Whitfield tested, maintained plans in place and all risk specific plans are reviewed in line with statutory requirements. Resilience of the organisation to support and sustain a protracted response is undoubtedly enhanced due to tiers 1-4 of the organisation being trained in specific roles linked to out of hours response arrangements. Training and exercising continues each year to build resilience and maintain competency and awareness of response arrangements. Updated Business Continuity Profiles have been reviewed and are on WINNIE. Whilst the Councils preparedness to respond to Major Incidents is at a higher level than in previous years every Major Incident is unique in circumstance and as a result consequence management will have different levels of demand subject to the type and severity of the incident. For this reason, impact / likelihood is difficult to reduce in scoring given the uncertainty around potential cause (deliberate or natural) therefore the score has remained the same.

155 STRATEGIC RISK REGISTER - QUARTER 4 APPENDIX 1 Reference / Ownership Risk Assessment Control Strategy Risk Description Existing Treatment / Controls Planned Treatment / Controls (to be Contingency Plans implemented during 2018/19) Q3 Q4

Score (arrangements you already have in place to (arrangements you plan to put in place to (arrangements which can be put into place if Travel

Impact Q4 Impact reduce the likelihood and/or impact of the reduce the likelihood and/or impact of the the risk was to materialise now) Direction of of Direction Lead Officer Lead Original SMT SMT Original Risk Number Risk Likelihood Q4 Likelihood Strategic Lead Strategic

Quarterly Score Score Quarterly Score Quarterly potential risk) potential risk) SRR 13 The Council's flagship regeneration project, Time 16 4 4 16 16 The regeneration scheme is run as a controlled programme by The multi-storey car park opened in November but still Both WBC staff and Warrington Market could remain in Square, is not delivered to time, budget or  experienced personnel, with a number of subgroups has some defects which we are currently dealing with existing locations should the scheme be delayed. addressing specific work streams of the programme all S Park specification. through the contract. The programme group continues Financial impacts from any failure to let would be reporting to the Programme Board. to monitor risks and identify mitigation measures as mitigated by finding alternative occupiers. StevePark The programme maintains a risk register which is updated required. quarterly. The minutes and risk register are shared with Risk and Corporate Governance, CIPG and SMT. Internal audit has an open and standing invitation to attend the There is a risk that failure to secure restaurant programme board and do so on a regular basis. operators prior to opening of the scheme would result in The major construction is now mostly complete and risk for a significant revenue pressure for the Council. this is reduced there is some minor slippage in programme but this is being accommodated. Budget pressure has been resolved and the project remains viable. There is a risk that failure to secure restaurant operators prior to opening of the scheme would result in a significant revenue pressure for the Council. This has been addressed by engaging specialists in the area and this has delivered results, most notably in the Botanist signing an agreement for Lease as anticipated that occupiers will start to take leases in the 12 months prior to opening. The uptake of occupiers is monitored and driven by a small group focussed on that task and reports through to the Time Square Programme Board. Although not a programme risk the successful transition of the Counciol offices is a critical factor in the success of the project and mitigation is now in place to ensure this, albeit with some residual risk.

SRR 14 The Great Sankey Hub project was taken over by 16 5 2 10 10 The Hub is now open and in use. The project is now complete but will remain on the The project is now complete but will remain on the the Council from Livewire in Summer 2017.  The project will remain under the control of Warrington register until commercial completion. register until commercial completion.

S Park Having taken on this responsibility, the Council is & Co until commercial completion.

StevePark unable to deliver the project to time, budget or specification.

SRR 15 The Council experiences a major cyber incident. 16 4 5 16 20 Security Incident Event Management System Our existing technical treatment and controls are Business Continuity and Data Recovery Plans. LG  (Logarithm) alerts to potential threats from both external deemed appropriate. They have so far withstood the and internal sources and is configured to assist with cyber-attacks we have been subject to and we are PSN/PCI DSS standards. constantly looking at new and changing guidance with PSN compliance with Code of Connection, verified by relevant authorities to understand new attack types and Heather Berry annual review, including password cracking tests and protection measures available: both preventative and penetration testing. detection/defensive. Quarterly external penetration testing undertaken by NCC Group was commissioned in December 2018 to CREST/CHECK approved third party. undertake and independent review of our operational Quarterly penetration testing for compliance with PCI cyber security measures and also our planned strategy. DSS undertaken by approved third party. Following review of the NCC recommendations and ISO 27001 accreditation in place for ICT service and other relevant assessments, a report is being prepared primary locations. Three year certification, verified by for SMT to provide an overview of the current cyber annual site survey and three day recertification visit. security landscape and to recommend improvement NCSC best practice guidance is reviewed and actions: considered when procedures, services and systems are - Further training and communications to raise designed and implemented. awareness of cyber risks and control measures The ICT Services engages with the Cyber Information - Strengthened reporting arrangements into SMT and Sharing Partnership (CISP) and receives the ICT portfolio holder alerts/notifications via this forum. - Tightened controls over the commissioning and procurement of technology.

156 STRATEGIC RISK REGISTER - QUARTER 4 APPENDIX 1 Reference / Ownership Risk Assessment Control Strategy Risk Description Existing Treatment / Controls Planned Treatment / Controls (to be Contingency Plans implemented during 2018/19) Q3 Q4

Score (arrangements you already have in place to (arrangements you plan to put in place to (arrangements which can be put into place if Travel

Impact Q4 Impact reduce the likelihood and/or impact of the reduce the likelihood and/or impact of the the risk was to materialise now) Direction of of Direction Lead Officer Lead Original SMT SMT Original Risk Number Risk Likelihood Q4 Likelihood Strategic Lead Strategic

Quarterly Score Score Quarterly Score Quarterly potential risk) potential risk) SRR 16 The Council experiences a significant breach of 12 4 3 12 12 While the Council has training in place via elearning, New data protection act 2018 course now availlable. Full incident reporting process in place in the event of a LG information governance through failing to maintain  supplementary face to face sessions and dedicated Working groups for the FOI reps and training sessions breach of the GDPR/DPA including scoring to ensure compliance with the General Data Protection Winnie IG pages, there are still information breaches on processing subject access requests are in place and that we can report within the required 72 hours. Regulations (GDPR) and the Data Protection Act and incidents occurring which could lead to a breach of ongoing. Meetings to go through individual ropas and the DPA. Numbers of reportable to the ICO breaches information queries/concerns available to all teams and Sarah Gallear (DPA) 2018. remain low and the ICO have closed all breaches planned in as and when they are required. without action or penalty due to the mitigating controls in place such as encrypted laptops and mandatory data protection training. The eLearning course has been replaced by a new course specifically for the Data Protection Act 2018. GDPR and DPA 2018 are now business as usual activities and working groups/specific subject groups/supplementary training are delivered as and when required. There has been in increase in the complexity of subject access requests and complaints about the use of individuals data which now have an impact on the IG team resources as they support the directorates receiving these.

SRR 17 The Council experiences a significant breach of 12 3 4 12 12 The Health & Safety Policy is reviewed annually in line with The Team undertake the Competent Adviser role to all If a breach were to occur this would result in HSE SP health and safety requirements which could result  H&S requirements. The policy outlines roles and LA Maintained Schools / education establishments inspection to identify failings (if any) which immediately responsibilities at all levels of the organisation in addition to in serious injuries or deaths of employees, where the Council is the employer and has a statutory attracts a Fee For Intervention from the initial key roles (ie Premise Manager). The policy is based on the duty to provide access to competent H&S advice. The notification, followed by potential for Improvement members, service users or members of the public. Health & Safety management arrangements (HSG65) if Team also offer the service via a SLA to all schools Notice, Notice of Contravention or Legal Action subject Such a breach would result in action on the part of Officers assume their delegated responsibilities and ensure that adequate arrangements are in place at a service level, the (including Academies) where the Council are not the to severity. If evidence can't be produced to support the

Theresa Whitfield the regulator (HSE) and potentially claims for organisation should be assured that arrangements are employer. Schools are audited on an annual basis. adequacy of H&S management arrangements at a compensation also. adequate to comply with H&S law / regulation. The ultimate Subject to the assurance level, detailed on site audits service level (ie compliance with the Councils Policy, duties of the Chief Executive will be continued to be delivered are undertaken where necessary. Reports are provided SOPs / Guidance Notes inorder to comply with through the principles of delegation and on the basis of to the Head / Governors. Directorate audit reports are legislation / regulation) the HSE could take action at a managers managing H&S risks. Standard Operating provided to the service manager and ultimately the level commensurate to the risks identified. No specific Procedures (SOPs) and Guidance Notes (GNs) support Executive Director (final version). Audit outcomes are contingency plans are prepared in advance as all managers to consider risks and ensure arrangements are in monitored through Directorate and Central H&S service managers are required and expected to place to comply with relevant legislation / regulations. Whilst committees, actions arising are shared across service consider H&S risks and ensure adequate management assurance through audits indicates compliance with areas tested, not all services / buildings within the Council are areas to maximise learning and enhance H&S systems are in place as part of their management audited - there is a reliance on learning from audits being management systems across the Directorates. responsibilities. shared and monitored through Directorate H&S committees. As this learning is embedded, this reduces the likelihood of a breach, however, in the event of a breach the impact could be considerable (subject to the nature and the level of breach identified) in terms of legal, financial and reputational impact. All final audit reports are shared through Directorate committees in addition to a "common themes" action tracker to support shared learning and implementation of improvement recommendations across all service areas. There is evidence to suggest an improving picture but in some areas learning from audits still needs to be embedded and for this reason, until assurance is evident at Directorate and Central H&S Committees, the score remains the same.

SRR 18 The Council's financial position becomes unstable 15 4 5 20 20 The Council monitors its financial position on a monthly The Outcomes Based Budgeting process is constantly The Outcomes Based Budgeting board is overseeing LG because of a failure to deliver the planned  basis at Outcomes Based Budgeting (OBB) Board and under review and the financial pressures require a the development of a Financial Continuity Plan as part transformation programme (demand management, formally to SMT and Executive Board on a quarterly tightening of reporting and accountability of the financial of its financial governance arrangements. Such a plan commercialisation and digitalisation). basis. Delivery projects and savings targets are position via the OBB board. The outcome of the LGA represents good financial governance when resources ClaireHarris monitored through these formal routes and also in more review (ongoing through Quarter 4) may reflect on are stretched, however the Council also continues to detail at the project level through monthly programme some of the financial challenges the Authority maintain a robust level of reserves that can be utilised meetings. continues to face. The Authority will continue to review for short term fluctuations in financial expectations and the effectiveness of the aims and the outcomes of the has confidence in current financial processes to OBB process to ensure it continues to deliver the continue to achieve a balanced budget over the next financial resilience required in the current financial four year Medium Term Financial Planning cycle. climate.

157 STRATEGIC RISK REGISTER - QUARTER 4 APPENDIX 1 Reference / Ownership Risk Assessment Control Strategy Risk Description Existing Treatment / Controls Planned Treatment / Controls (to be Contingency Plans implemented during 2018/19) Q3 Q4

Score (arrangements you already have in place to (arrangements you plan to put in place to (arrangements which can be put into place if Travel

Impact Q4 Impact reduce the likelihood and/or impact of the reduce the likelihood and/or impact of the the risk was to materialise now) Direction of of Direction Lead Officer Lead Original SMT SMT Original Risk Number Risk Likelihood Q4 Likelihood Strategic Lead Strategic

Quarterly Score Score Quarterly Score Quarterly potential risk) potential risk) SRR 19 The Council is unable to maintain a sufficiently 12 3 4 12 12 SMT monitors recruitment and retention on a monthly Renewed L&D prospectus and focus on use of the Agency Staff Framework. GH skilled and stable workforce. To include specific  basis via a standard report. Apprenticeship Levy. External recruitment agencies. consideration of the impact of Brexit and the DMTs have added this risk to directorate registers and Corporate Services DMT to hold regular discussions on FWB commissioners to check that providers are potential loss of staff in services either directly undertake service specific monintoring and review. turnover and recruitment. preparing for no-deal Brexit. The Council has a specific recruitment and retention FWB DMT - Dedicated task in Adults to be established provided by the Council or where there is a close strategy for Children's Social Workers and a number of January 2019 to co-ordinate sustainable focused level of interaction/inter-dependence with the policies and programmes (i.e. Market Supplement recruitment approach across the sector. StevePeddie F&W - Gareth Hopkins CS - Council, such as health care or construction. Policy, Training and Development programme) which E&T reviewing temporary staffing levels within Waste are used across the workforce. and Street Services to minimise agency spend. StevePark/Dave Boyer ERGE -

SRR 20 The Council faces legal challenge and/or claims 12 3 4 12 12 Each Directorate understands requirements for Transformation work to take into account protection of Legal/Insurance services to respond to legal challenge MC for compensation because of a failure to provide  statutory services. Programme of transformation any statutory services. and/or claims for compensation. services or manage organisational change in underpinned by the OBB programme. accordance with requirements or new Risk and Insurance will engage with all directorates to FWB robust approach to complaints, including early support the proactive handling of complaints. legislation/regulation. engagement with legal services and risk and insurance, to consider complex cases and attempt to resolve FWB putting regular Legal Gateway MDT meetings in Steve Peddie F&W - Gareth Hopkins CS - complaints at an early stage. place.

Formal governance arrangements, including Programme Boards, in place for major programmes. StevePark/Dave Boyer ERGE -

SRR 21 The Council experiences a failure in its corporate 20 4 5 20 20 Corporate Governance Framework in place, Training to be provided via middle management forum Urgent authorisation process in place as part of MC governance arrangements. To include  comprising: Code of Corporate Governance; Codes of and leadership development forum on financial financial regulations, with retrospective authorisation consideration of partnership governance and Conduct; Constitution; Financial Procedures; Contract regulations, contract regulations, council policies. process set out. contract management arrangements, governing Procedure Rules; Scheme of Delegation; Anti-Fraud, Finance to provide training and support to senior Corruption and Bribery Policies; Risk Management managers through DMTs. the Council's relationships with key partners and Policy and Procedures. Regulations and policies to be enforced through suppliers. disciplinary action as appropriate. StevePeddie F&W - Gareth Hopkins CS - All policies are subject to regular review and update. MO to conduct a review of governance arrangements including the decision making process and the use of delegated powers. StevePark/Dave Boyer ERGE -

158 STRATEGIC RISK REGISTER - QUARTER 4 APPENDIX 1 Reference / Ownership Risk Assessment Control Strategy Risk Description Existing Treatment / Controls Planned Treatment / Controls (to be Contingency Plans implemented during 2018/19) Q3 Q4

Score (arrangements you already have in place to (arrangements you plan to put in place to (arrangements which can be put into place if Travel

Impact Q4 Impact reduce the likelihood and/or impact of the reduce the likelihood and/or impact of the the risk was to materialise now) Direction of of Direction Lead Officer Lead Original SMT SMT Original Risk Number Risk Likelihood Q4 Likelihood Strategic Lead Strategic

Quarterly Score Score Quarterly Score Quarterly potential risk) potential risk) SRR 22 Impact of BREXIT for the Council and for 16 4 4 16 16 The Impact of BREXIT and the associated consequence Continue to monitor developments and undertake Major Emergency Plan is the Council's plan that would SB Warrington:  management implications remains unclear. Warrington specific impact assessments as details be invoked to respond to any emergency. Other plans Weekly teleconferences take place at a Resilience Forum emerge. (and national plans) are in place and may be invoked Potential skills shortages. Tactical level in addition to a number of other teleconferences at Continue to provide weekly RA for Cheshire LRF to subject to the particular circumstances Relocation of key businesses and employers. SCG, LRF Chairs, LRF Secretariat to assess preparedness of MHCLG. Reduction in investor confidence. LRF responders, submit weekly RAG assessments and to feed back any issues / concerns identified by the LRF to MHCLG. All Technical notices have been shared through Uncertainty regarding UK funding to replace loss At the current time no issues are being reported by WBC Directors for relevant service areas to consider impact.

StevePeddie F&W - of structural funds (Shared Prosperity Fund). services that are outside the capability of business continuity Risk assess contracts and supply chains and

Matt Cumberbatch CS - Uncertainty regarding rights of non UK EU citizens arrangements to cope. implement mitigation plans. (residency, employment, benefits and access to Work has been ongoing with local service providers (Social Continue to enage with major suppliers, contractors Care) to ascertain the impact which again is considered to be and employers. public services). low at this point. StevePark/Dave Boyer ERGE - Increased demand for Council services. Contingency arrangements are in place and have been shared in Impact on Council and local supply chains for relation to schools meals provision. goods and services. The Chief Executive / Deputy Chief Executive / Monitoring Officer are briefed immediately following the weekly teleconferences to Transitional arrangements from EU to UK ensure any actions are taken forward at SMT / discussed with legislation, regulations and powers. wider SMT members. Regional Chief Executives group / information sharing network also shares information on a weekly basis at Chief Executive level. Technical notices have been cascaded through SMT for consideration by relevant service managers which in turn will inform their BC planning arrangements. Governance Group is monitoring preparations across the Council. Given the uncertainty of BREXIT and the potential implications particularly in the case of a no deal, at this stage the Council is as assured as it can be that the impact will be limited. However, until there is further clarity and information is provided by Central Government related to key areas such as revised Statutory Instruments / Legal Implications it is suggested that the scoring remains the same.

SRR 23 Resources to support the transition to the new 16 4 4 16 New Project Manager resourced from Business Resource planning exercise to be undertaken upon If key deadlines missed, staff would remain in existing (NEW GH Council offices are insufficient, impacting on our  Intelligence Team and attending overall TSQ completion of programme plan. locations. FOR ability to deliver transition to time, budget and Programme Board. If budget is at risk of overspend, requirements will be Q4) requirements. Head of Finance providing support to Ground Floor reviewed to identify opportunities for savings/value

Vicky Rowe workstream. engineering. Project Board monitoring performance against budget and project plan.

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WARRINGTON BOROUGH COUNCIL

Cabinet – 9 September 2019

Report of Cabinet Councillor J Guthrie – Cabinet Member, Environment and Public Member: Protection

Director: Lynton Green, Deputy Chief Executive & Director of Corporate Services

Senior Responsible Danny Mather, Head of Corporate Finance Officer:

Contact Details: Email Address: Telephone: [email protected] 01925 443935

Key Decision No. 019/19

Ward Members: All

TITLE OF REPORT: GREEN ENERGY STRATEGY

1. PURPOSE

1.1 To seek Cabinet approval for a Green Energy Strategy for the Council that’s attached in appendix 1 to this report.

2. CONFIDENTIAL OR EXEMPT

2.1 The report is not confidential or exempt.

3. INTRODUCTION AND BACKGROUND

3.1 The Council is now recognised as being a lead authority in the area of green energy. Having implemented a number of cutting edge initiatives in the field over recent years.

3.2 Whilst the projects that have been implemented to date have all been subject to individual strategies e.g. Housing Strategy, Treasury Management Strategy and the Capital Strategy. They have never been part of a holistic over all Green Energy Strategy.

3.3 Following the passing of an Emergency Climate Declaration by Full Council in June 2019 and the increased importance of climate change as a policy objective across Local Government (50% of Council now have implanted an Emergency Climate Declaration). The Council have worked with APSE Energy and the Green Energy Task Group to develop a Green Energy Strategy for the Council.

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3.4 Attached at appendix 1 is the proposed Green Energy Strategy of the Council for Cabinet approval.

4. LEGAL POWERS

4.1 A full legal evaluation takes place of all green energy projects entered into by the Council.

5. RISK ASSESSMENT

5.1 A risk assessment has taken place on all green energy schemes entered into by the Council.

6. FINANCIAL IMPLICATIONS

6.1 A full legal evaluation takes place of all green energy projects entered into by the Council.

7. GOVERNANCE ARRANGEMENTS

8.1 Covered in the main body of the Green Energy Strategy.

9.4 Three Local Government practicing experts will sit on the investment committee of the fund.

10. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

10.1 All green energy schemes will be subject to an Equality Impact Assessment.

11. CONSULTATION

11.1 Internal consultation with Portfolio holders, the Leader, Green Energy Task Group, Green Energy Project Group, Corporate Services Departmental Management Team, and Strategic Management Team has taken place.

12. REASONS FOR RECOMMENDATION

12.1 To provide the Council with a green energy policy.

13. RECOMMENDATION

13.1 The Cabinet is recommended to approve the Green Energy Strategy contained with appendix 1 of this report.

14. BACKGROUND PAPERS

Green Energy Strategy File.

Contacts for Background Papers:

Name E-mail Telephone Danny Mather [email protected] 01925 44 2344

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Appendix 1

WARRINGTON MBC – GREEN ENERGY STRATEGY

INTRODUCTION

Warrington is an area of just over 207,000 population in the North West of the country. It has a low funding base but high economic growth. It has been severely impacted by Government cuts in funding under the Chancellor’s austerity programme over the past five years.

In tandem with the worsening economic position, the Council has seen the rise in importance of energy and climate change in the Council’s operation. The green agenda is now touching almost every area of Council’s functions but is also offering considerable opportunity for those authorities capable of reacting sufficiently quickly.

Warrington Council has been involved in the green agenda for some years and has taken a leading position amongst local authorities in the UK in pushing forward innovation in this market.

However, these projects have emerged organically and have not been the subject hitherto of a formal strategy. The Council now considers it timely to draw together the different strands of its operation in this space and to set down its purpose for now and in the future.

This Energy Strategy provides details of the Council’s goals, plans and projects and how such work will be approached in future and the Council’s targets met.

GOALS, ROUTE MAPS AND PROJECTS

Goals

The Council’s twin goals are to be energy self-sufficient in its own operations by 2030 and to support the work underpinning the Climate Emergency Declaration of 18 June 2019.

Energy self-sufficiency has not been reached by any local authority in the UK to date and would be achieved where the Council is generating an equivalent amount of energy from renewable sources to that which it uses in the delivery of its services.

The Council’s Climate Emergency declaration pledges to make Warrington a net zero carbon area by 2030. This will involve both an inward looking focus and an outward looking focus. The latter is the work with partners across the town and region to deliver this goal through strategies and plans.

The inward looking focus is to make all Council property carbon neutral by 2030 and across all services. This Energy Strategy covers a large part of the work required to meet those pledges.

The Council has identified six key areas as part of these goals:

• Reducing fuel poverty; • Reducing greenhouse gas emissions; • Improving security of energy supply; • Creating regeneration and economic growth; • Achieving sustainability in all the Council’s operations; • Generating income to fund the investments.

The intention is to achieve social, economic and financial benefits in the delivery of this Energy Strategy.

The following outcomes are targeted:

• A reduction in fuel poverty figures for Warrington; • A reduction in greenhouse gas emissions in Warrington; • Achieving security of energy supply, largely by owning and controlling the generating assets to achieve energy self-sufficiency;

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• Promoting economic regeneration, including creating jobs and growth, by Warrington becoming a centre of excellence in the green agenda; • Delivering a more sustainable Warrington; • Undertaking the work on the basis of a sound business case approach that manages risk and delivers a return on investment.

The Route Map

The Council will continue to bring forward a series of projects to address the key issues above and help it reach its goals.

These will include both the developer and investment route, both of which are examined below.

In each case, projects will go through the governance process, whereby projects are proposed by officers and considered in the Green Energy Officer Group; are then considered by the Member led Warrington Sustainable Energy Executive Board Task Group; with decisions ultimately being taken by the Council’s Cabinet and then confirmed by Council.

The Projects

These provide the steps along the path towards the goals and targets. Each should be considered carefully for its aims and purpose; its social and economic benefits; and the business case that underpins it, providing a return for the Council on its investment.

Examples of the type of projects the Council is promoting are given throughout this Energy Strategy and there will be many more to follow.

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THE ENERGY MARKET IN THE UK

The Current Market

The UK energy market has been changing for some years. However, those changes are accelerating and the Council has carefully positioned itself into a place where it can react quickly and effectively to take advantage of new opportunities that are arising.

Often the private sector will show the way, with private finance demonstrating how investments can provide good returns, whilst having considerable non financial benefits. However, Warrington is amongst a band of local authorities determined to make the most of opportunities that can be delivered within the civic envelope.

Traditionally, the energy market has been in 3 parts:

• Generation; • Distribution; • Supply.

Generation is about generating electricity from new, renewable sources. Classic examples are solar PV and wind energy schemes. Many local authorities have entered the generation market, including the Council. Generation is generally about income generation from an asset that is within Council ownership, whilst providing green benefits at the same time.

Distribution of power is getting it from where it is generated to where it is used. This is mainly the preserve of the Transmission and Distribution Network Operators, but has a relevance where a local authority provides electricity to others from its own generating stations, perhaps by private wire or in Warrington’s case, by providing solar PV on commercial rooftops and then selling the power to the occupant of the building. Distribution is generally about economic development, such as helping local companies reduce their energy bills by supplying them with cost effective energy.

The supply option is different again and chiefly has as its purpose social gain and the combatting of fuel poverty. This is the most complex of the three strands, but potentially has the benefit of providing most social gain and an answer to a very difficult social issue.

Fuel poverty is driven by three key factors: the price paid for energy, the energy efficiency of the home and the disposable income available to the occupant. By providing a means to supply energy directly to consumers, the Council recognises that it can effectively deal with one of those key elements. The difficulty is provided by the fact that the supply option offers little financial gain and a higher degree of risk.

Despite there being three different parts to the energy agenda, very few local authorities have ventured past the generation option. Many have renewable energy schemes of one type or another, but very few have projects which provide distribution and there are just two ESCO supply companies in Nottingham and Bristol City Councils. If an authority wants to maximise the opportunities, it has to aspire to operate in all three areas. Warrington Council does aspire to work in all three areas, as its projects below demonstrate.

A Changing Market

But the energy market is changing – and fast. A new age has arrived, characterised by the 4 D’s:

• Decarbonisation – legally binding carbon budgets for the UK Government and a need for policy to support the aspiration under the Climate Change Act 2008 for net zero carbon by 2050; • Digitisation – technology now acting as an enabler allowing quicker decision making with far greater machine- based learning; • Decentralisation – energy is no longer generated at a central point and distributed one way – distributed generation is now more commonplace and growing in impact; • Democratisation – social contracts and the need to take customers on the journey is now crucial to achieving acceptance and agreement in both regulated monopolies and commercial entities.

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A series of events is causing disruption in the energy market and is driving transformational changes across the piece:

• The imbalance of supply and demand in electricity; • New energy technologies coming forwards and accelerating; • Renewable penetration in the market; • Engaged vocal consumers of energy who want energy to be delivered as a service.

These events will change the face of the energy market over the next decade. This Energy Strategy need not contain all of the background to these changes, but for the purpose of this document, there will be 3 key ‘tipping points’ in the future:

• Tipping Point 1 – grid cost parity for non-utility solar plus battery storage systems; • Tipping Point 2 – the price of battery electric vehicles reaches cost parity and performance parity with internal combustion engine vehicles; • Tipping Point 3 – the cost of transporting electricity exceeds the cost of local distributed generation and storage.

This means that the pace of change in the future energy market will be defined by three key technologies:

• Solar PV; • Battery storage; • Electric vehicles.

There will be implications across the value chain and the Council will need to decide when and how to intervene in the market or when and how to alter its intervention plans.

There will be winners and losers, but the Council’s covenant should ensure that local people trust its offerings and as energy becomes more local, the Council can have more of an influence upon it, to provide greater social benefit. Local authorities have in the past provided energy services and can have a key involvement in this market again.

It is also worthy of note that those offering energy services are changing:

• The ‘big 6’ energy companies are rapidly losing market share as behaviour trends of consumers are changing; • The big oil companies, principally Shell and BP, are moving into the wider energy market and purchasing ‘up and coming’ companies; • Huge US technology companies, such as Apple, Google and Microsoft are also looking at taking a much greater stake in the energy market; • As energy becomes more local and ‘smart’ the technology companies have a big role to play in its digitisation.

Essentially this means that the old way of the big 6 energy companies having a virtual monopoly on the supply of electricity and gas, both to consumers and commercial customers, is changing rapidly. What will be seen in the future is more local generation, more self-supply, benefitting through use of battery storage, energy trading at local level and even private grids and off grid solutions.

It is the Council’s intention to position itself to take full advantage of these changes as they occur.

ADAPTING TO A CHANGING MARKET

Many companies in the private sector have seen these changes coming and are also positioning themselves. Whilst the Council may be a leader in the local authority market, its projects are mainstream in general terms rather than radical.

The Council recognises the opportunities offered by generation of electricity from renewable sources. In particular, it watched with interest the development of solar PV technology and its rapid deployment within the UK. As with other local authorities, it decided to enter the market and capture social, economic and financial gains in so doing. Good examples are its work with Golden Gates Housing Trust and the new proposal for solar farms in York and Hull. These are illustrated below.

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Golden Gates Housing Trust

Its first work was in partnership with Golden Gates Housing Trust (now Torus), where over 2,000 former Council houses were fitted with solar PV installations and electricity supplied to tenants. The scheme generates 4,127 MWh of electricity per annum, saving tenants over £540,000 and reducing CO2 emissions by almost a thousand tonnes.

The Council having successfully entered into solar PV projects has now increased its ambitions. It has entered into an arrangement whereby two new solar farm developments in York and Hull will be developed by a national contractor and then sold to the Council.

New Solar Farms in Hull and York

These are sizeable commercial projects, 25MW and 35MW in capacity, at a cost to the Council of around £60m. Both have the capacity for battery storage to be included in the construction, as in the case at York or added at a later stage for the Hull project. However, the Council has de risked the transaction by arranging for the contractor to build out the solar farms, with interim finance arranged, with the Council only taking ownership upon their successful completion and commissioning. This is also a neat procurement solution.

The 35 MW solar farm in York will generate enough power for 10,000 homes and generate carbon savings of around 15,000 tonnes per annum. The 25 MW solar farm in Hull will generate enough power for 8,000 homes and generate carbon savings of around 10,000 tonnes per annum.

The Council will then arrange for the electricity generated from one of those sites to power all Council buildings, securing further savings in its energy costs and making it the first local authority in the UK to be energy self-sufficient from renewable sources. The remainder of the power will be sold to the grid or to other public sector organisations.

Innovative ownership arrangements via wholly owned companies have been put in place to maximise the value of these developments to the Council.

Each solar farm will also have an electric vehicle forecourt as part of its development, whereby typical charging times of less than 30 minutes are provided from up to 24 ultra-fast charging bays. This is another leading innovation, as power for the electric vehicle forecourts will come from the solar farms attached.

The Council also recognises the potential local economic benefit from distributing energy via private wire or by fitting assets to the property of third parties. The work on the OMEGA development site is a good example of this.

The OMEGA Development Site

Few, if any, other local authorities have entered this space, as most have focussed specifically on their own assets and the potential for development. However, Warrington is an area with a high volume of commercial and industrial premises, such as warehousing and distribution centres clustered around the M62 corridor, with the OMEGA development site being a good example. These areas form an important part of the economic vitality of the Borough.

Accordingly, the Council has offered to fit solar PV installations on premises owned by third parties, on the basis that it will fund the installations and retain income derivable from them, whether from Government financial incentives and/or from the sale of the electricity to the occupants of the buildings. This is a highly innovative scheme for local government, but is mainstream in the private sector.

Considerable hurdles have had to be addressed to develop a workable model for this operation. The OMEGA development site has seen the first deals done, with 1 MW of solar PV installed on the roof of the Plastic Omnium site by the Council and the 735,000 kWh of electricity generated being sold to the occupants. A second two part scheme at the Hermes Distribution Centres in Warrington and Rugby have now been agreed, with 1 MW capacity of solar PV again being installed on each roof and wired into the building. Further projects in this series are planned.

As indicated above, one of the Council’s goals is to reduce fuel poverty and that is closely linked to the price that local people pay for their energy. This means that the necessity of influencing the price that people pay for their electricity and gas is recognised.

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If a local authority wants to intervene in the energy supply market, there are few options. A popular move has been to develop white label arrangements, but these only have a minor impact at local level and it is recognised that the establishment of an Energy Services Company is the only real solution. This can either be alone or in partnership with other authorities.

However, establishing an ESCO from a standing start is a long, complex and expensive process. The Council is therefore seeking to de risk this process by acquiring an existing supply company with a supply licence.

The Council is in the process of seeking to acquire such a supply company.

Creating or Purchasing an Energy Services Company

The Council intends to intervene in this area of the energy market, either by establishing an ESCO or acquiring an existing company, provided that the costs and benefits are proportionate. The Council would also would like to strategically incorporate its generating assets into any supply company structure that is developed. The major aim of this would be to reduce fuel poverty in Warrington and deliver the Councils Emergency Climate change declaration.

Community Energy

Many local authorities have not ventured into the community space, focussing instead on their own services and assets. However, the value of such work has been demonstrated to provide considerable community benefits.

Accordingly, the Council has become involved in supporting two local Community Energy Companies, Lymm Community Energy and Livewire Community Energy. The Council also plan to set up its own charitable organisation that a percentage of profits from its green energy projects can go into to support community energy initiatives and the reduction of fuel poverty in Warrington.

Warrington Borough Transport (WBT)

The Council will continue to work with WBT to implement a greed energy fleet, carbon literacy and to reduce the carbon foot print of WBT’s buildings.

Energy Efficiency and Energy Use

The Council is aware that in the hierarchy of energy, the starting point is reducing energy use, then improving energy efficiency and finally creating new sources of renewable energy. The cost/benefit of each is different, with the greatest benefit from reducing energy use.

The Council has managed to reduce its energy use over past years. In 2016, the energy bill (combined gas and electricity) was £2.5m pa. In 2018 it had reduced to £1.8m pa. However, there have not been specific targets for energy reduction or specific mechanisms in place to focus on this area.

As part of the implementation of this Energy Strategy, in tandem with the Climate Emergency Motion, the Council will put in place new mechanisms and task specific officers with the role of ‘eco champions’ to promote lower energy use amongst the Council’s employees.

It is the Council’s intention to continually monitor its energy use and continue to make efforts to reduce the amount of energy used in the performance of its functions.

So far as energy efficiency is concerned, the Council has also undertaken work to try and improve the energy efficiency of its various assets. An excellent example is provided by the replacement of streetlighting with LED lights.

Street Lighting

The Council has replaced 18,000 street lights in its area with new LED lighting, offering greater flexibility for switching on and off and/or dimming. The 12.7m kWh of electricity used in 2011 to power the streetlights has now been reduced to 6.3m kWh in 2018. This has saved over £515,000 per annum in energy costs.

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Other work includes voltage optimisation, boiler controls, variable speed drives, replacement of oil fired boilers, insulation and building lighting replacements. This work was mainly funded by low cost public sector loans via the Salix Recycle Fund.

The Council has also been replacing older vehicles in its operational fleet, choosing the most efficient vehicles possible, to reduce the costs of operation and also improve emissions figures.

The Council recognises that electric vehicles represent the future and that it will need to introduce electric vehicles fully into its fleet. This work has started and charge points have been installed for the Council’s own use.

Further infrastructure to accommodate public charging of electric vehicles in Warrington will also be required but a big step forwards has been taken with the installation of 58 public electric car charging points on different floors in the new Times Square multi story car park.

Under the Council’s planning policies, all new developments, both residential and commercial, are required to provide accessible electric charging points.

The Investment Route

There are different ways to adapt to a changing energy market. The vast majority of local authorities have taken the developer route in terms of renewable energy projects. This means that they take authority owned land and procure a design, build and operate contract whereby an asset is built for them and then subsequently run it on behalf of the authority. This traditional route is favoured because the Council controls the development process.

However, in other non-energy fields of local government operation, an investment route is well used, whereby the Council simply invests money in an asset for a commercial return. Here, again, the Council has been a trailblazer with its deal to arrange a bond of approximately £60m to purchase the Wroughton Solar Farm in Swindon, jointly with Thurrock and Newham Councils. Here, the Council did not operate the asset, but gained a financial return from its ownership, with the usual attendant social gain coming from the renewable energy facility. Other bonds have also been entered into, with the Council considering carefully how long to maintain an interest and when to liquidate interests.

Along a similar theme, the Council has again raised its ambition and plans to launch a Social Impact Fund in 2019. Social investment is part of the future, with renewed focus on how to divert more traditional investment into the green agenda, to promote more rapid decarbonisation of the UK.

Under social investment, finance is provided for qualifying schemes to generate social returns, but with the expectation of repayment of the capital and a return. This was encouraged in the Government review Growing a Culture of Social Impact Investing in the UK.

The Council has determined to take the lead on this area and plan into a joint venture with Altana Wealth whereby the first public sector social impact fund will be created in 2019, giving local authorities an opportunity to join together to improve public sector cashflows and invest in projects with long lasting social impact. This will be a national fund for all sectors of local government and will put Warrington in a leading position nationally on social investment for the local government sector.

GOVERNANCE ARRANGEMENTS

The Council has put in place suitable governance arrangements to oversee all current and future projects. Normally, ideas are cultivated by officers from a number of different sources, to see if they would work in the civic envelope.

These ideas are then considered by the Green Energy Officer Group, which has a wide range of officers in attendance, from corporate finance, through legal services, projects, housing and energy teams. This group will go through ideas and determine which should be progressed to Members.

Above the Green Energy Officer Group is a member led task group – the Warrington Sustainable Energy Executive Board Task Group -which has as part of its membership the Leader of the Council and Executive Member for Environment and Climate Change, as well as proportionate cross party Members. There are also officer members of this group, including the Deputy Chief Executive and s151 officer, together with legal, finance and projects teams.

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This group was established in 2015 with the purpose to manage the capital funds allocated for the delivery of a sustainable energy project programme. Its role is to provide direction on sustainable energy strategy and policy in Warrington and to effectively make recommendations to the Executive Board on projects that should be progressed.

All decisions are taken by the Executive Board in accordance with the Council’s constitution. By the time that decisions are required, projects have been thoroughly thought through and examined.

This Energy Strategy is flexible in nature and will be a working document that is constantly reviewed and updated on a regular basis. Progress on its delivery will be reported to Cabinet annually.

THE APPROACH TO FUTURE PROJECTS

A Flexible Approach

The Council is seeking to intervene in the energy marketplace, for the benefit of its inhabitants (both domestic and commercial) and its own energy costs and security of supply.

It needs to do this as energy is a key strategic area for it and it is becoming more central to everything that the Council does. Aside from its own functions, energy is also highly relevant to individuals and businesses in an area and there is a need to promote regeneration, combat fuel poverty and reduce costs.

The Council plans to make this intervention on a flexible basis, looking at a number of routes, including the investor route as well as the developer route.

It has developed a robust methodology for doing this, including the requirement for each project to show its aims and purpose are aligned with the Council’s key goals, the social and economic benefits that will be delivered, be supported by a robust business case and include a sensible attitude to risk.

This Energy Strategy concerns just the Council’s own operations but is aligned with its intentions under the Climate Emergency Declaration of 18 June 2019.

The Council intends to continue to closely monitor the changes in the market and look for viable opportunities in accordance with this Energy Strategy.

External Funding

The Government has put in place many different avenues of funding that could be used by the Council in pursuance of this work. Examples are the Office for Low Emission Vehicles (OLEV) for electric vehicle infrastructure and the UK’s innovation agency, Innovate UK, which is a non departmental public body that helps realise the potential for new ideas, such as micro grids or smart energy systems.

The Council will continue to investigate viable routes of external grants or funding to drive this Energy Strategy forwards.

And Finally …..

Carbon Literacy

Carbon Literacy is “An awareness of the carbon dioxide costs and impacts of everyday activities, and the ability and motivation to reduce emissions, on an individual, community and organisational basis.” The Council will strive to train and educate its staff, members and stakeholders to make them fully carbon literate.

The Cleaner / Greener Commission

Warrington Council has been proactive during recent years in relation to its own energy situation, as indicated throughout this Energy Strategy.

However, the Council also has a role in relation to the wider community and the greenhouse gas emissions that emanate from that community. Accordingly, the Council determined in 2019 to create a carbon commission – named the Cleaner / Greener Commission – to help push this work forward, as part of its Climate Emergency Declaration.

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The aim of the Commission will be to lead the public debate on climate change and energy in its widest context. It will involve the public, private, third sector and wider community to help improve understanding of the issues and the action that needs to be taken.

The Commission will draw together conclusions on the current position, identify areas for improvement and make recommendations for change in order to move the whole of Warrington to a position on net zero carbon.

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WARRINGTON BOROUGH COUNCIL

CABINET – 9 September 2019

Report of Cabinet Councillor C Mitchell, Deputy Leader and Cabinet Member, Member: Corporate Resources and Councillor M McLaughlin, Cabinet Member, Housing Public Health and Wellbeing

Director: Steve Park, Director of Growth Lynton Green, Director of Corporate Services/Deputy Chief Executive

Senior Responsible John Laverick, Service Manager- Development, Warrington & Co Officer: Danny Mather, Head of Corporate Finance

Contact Details: Email Address: Telephone: [email protected] 01925 444096 [email protected] 01925 442344

Key Decision No. 067/18

Ward Members: All

TITLE OF REPORT: LOCAL HOUSING COMPANIES

1. PURPOSE

1.1.1 To seek Cabinet’s consent, as the sole Shareholder of Incrementum Housing Development Company Limited (‘the Development Company’) and Incrementum Housing Management Company Limited (‘the Management Company’), to approve:

(1) The Development Company entering into Development Loan with the Council;

(2) The Development Company and Management Company entering into Credit Facility Agreement with the Council;

(3) The Development Company and Management Company entering into Buyback Agreement with the Council;

(4) The Development Company entering into Homes England Accelerated Construction Funding Agreement;

(5) The Development Company purchasing the sites at Sycamore Lane and Chatfield Drive from the Council;

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(6) The Business Case for the construction and letting of 158 new houses and apartments on the former school sites at Sycamore Lane and Chatfield Drive; and

(7) The issue of further share capital in the Development Company.

1.2 To seek Cabinet’s consent to:

(1) Enter a Development loan with the Development Company;

(2) Enter a Credit Facility Agreement with the Development Company;

(3) Enter a Buyback Agreement with the Development Company and Management Company;

(4) Enter into the Homes England Accelerated Construction Funding Agreement; and

(5) Make an equity injection by way of investing in further shares in the Development Company.

2. CONFIDENTIAL OR EXEMPT

2.1 The report is not confidential or exempt. Confidential data by virtue of categories 3 and 5 of the Local Government Act 1972, Schedule 12A, is contained in Part 2 of the report.

3. INTRODUCTION AND BACKGROUND

3.1 The Council resolved to establish two wholly-owned Local Housing Companies at its Executive Board meeting of 15 January 2018. The stated aim of the companies was to ‘maximise revenue income and deliver 500 high quality homes of mixed tenure.’

3.2 The two companies, Incrementum Housing Development Company Ltd and Incrementum Housing Management Company Ltd, were incorporated on 13 February 2019. The Council is the sole shareholder of the companies. This report is referred to the Cabinet as it involves decisions reserved by the shareholder under the Development Company’s Articles of Association.

3.3 In order to bring forward the development of its first two housing sites in a timely and cost-efficient manner, the Development Company has engaged with the Scape Venture Procurement Framework. Scape Venture is an OJEU-compliant framework agreement that enables Council-owned companies or joint ventures that fall outside the scope of the Public Contracts Regulations 2015 to procure professional services for the design and construction of housing developments. Prospective schemes for the initial two sites have been drafted as part of the initial feasibility phase of the Framework. These are described in the Part 2 report.

3.4 In addition, the Development Company has engaged with Homes England to gain access to its Accelerated Construction (‘LAAC’) funds. These funds are provided to Local Authorities, or companies wholly owned by Local Authorities, in order to bring

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forward new housing at pace. For the funding to be released, the Funding Agreement must be signed by both the Housing Company and the Council.

3.5 The Development Company now wishes to proceed with the detailed design work that is required in order to submit detailed planning applications for the two proposed housing developments, and thereafter to construct and lease the new housing.

3.6 The Board of Directors of the Development Company has reviewed the business cases for the two sites and recommends that the Cabinet, as shareholder of Incrementum Housing Development Company Ltd, approve the funding and ancillary arrangements set out in this Report.

3.7 Officers, using external professional services where necessary, have reviewed the business cases for bringing forward the first two Housing Company sites and recommend to the Cabinet, acting on behalf of the Council, that it approves the recommendations set out in this report.

4. THE OBJECTIVES OF THE HOUSING COMPANIES

4.1 The principal objective of the Housing Companies is to construct and rent new, high quality residential properties. The rental income from the properties creates revenue for the shareholder. The revenue is paid to the Council principally in the form of interest on a commercial loan that the Council advances to the Housing Company in order to construct the properties. Any surplus rental income can be paid to the Council (as sole shareholder) in the form of dividends, or with the shareholder’s consent can be retained by the Housing Companies for reinvestment in the Borough.

4.2 A further objective of the Development Company is to create exemplary and innovative new housing that allow multi-generational communities to flourish in safe and inclusive environments. The housing will be delivered to Building Regulations Standard M4(2), which ensures easy access for the elderly and those with impaired mobility.

4.3 All schemes put forward by the Housing Companies will be fully policy-compliant. The Housing Companies will also pursue a fair rent policy and offer 30% of its units at an affordable, discounted level, as required by the emerging policies within the Local Plan. A range of tenancy terms will be offered, including long-term tenancy agreements (in excess of three years) to provide security to residents.

4.4 The Development Company is presently exploring the potential to incorporate green energy measures into its housing. This will include charging points for electric vehicles in every house (as set out in emerging planning policy), the use of solar panels and batteries and, potentially, ground-source heat pumps. Additionally, the developments seek wherever possible to maximise ecological value and incorporate greenspace and recreational areas into the overall design.

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4.5 The Housing Companies also seek to bolster and stimulate the local economy and job market. As such, it requires that main contractors commit to employing local resources wherever possible. For the first two housing schemes, over 50% of companies employed in the design and construction of the housing will be based in the Borough.

5. THE BUSINESS CASE FOR THE PROPOSED DEVELOPMENTS

5.1 The first two sites are estimated to accommodate 158 no new residential units in a mix of two- and three bedroom houses and one- and two- bedroom apartments.

5.2 The business case for the development is set out in Part 2 of this report. It is noted that:

(i) The Council will receive an initial capital receipt for its land;

(ii) The Development Company will pay the Council commercial interest charges for its loan over a 30 year period;

(iii) The developments will generate an internal rate of return to the Development Company equivalent to approximately 7.5%; and

(iv) The proposed developments achieve the objectives of the Council in respect of income generation and the enhancement of housing choice in the Borough.

6. LEGAL CONSIDERATIONS

6.1 The proposed developments and the recommendations contained within this report have been reviewed by the Council’s Legal Services using external consultants where necessary. The advice of the Head of Legal Services is contained in Part 2 of this Report.

7. FINANCIAL CONSIDERATIONS

7.1 The business case for the proposed developments has been reviewed by the Director of Corporate Services and his opinion is contained in Part 2 of this report.

8. RISK ASSESSMENT

8.1 The primary identified risks of the projects are: (i) The build programme slips and/or goes over budget; (ii) The properties are not built to the required standard; (III) Once constructed, the properties fail to let at the anticipated values; (iv) The rental values fail to increase in line with, or above, the RPI; and (v) The procured management company fails to perform or goes into receivership.

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8.3 The Development Company will put in place measures to mitigate against these risks.

9. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

9.1 There are no specific equality or diversity issues arising from the content of this report.

10. CONSULTATION

10.1 A pre-application consultation process has been undertaken with the Local Planning Authority on the proposed developments. Local Ward Members will be consulted on the proposals before any planning applications are finalised. The public will be consulted as part of the planning application process.

11. REASONS FOR RECOMMENDATION

11.1 The proposed actions achieve: (a) A steady income-stream to the shareholder, arising from the repayment of a commercial rate of interest on the construction loan; (b) Longer-term dividends to the shareholder arising from accumulated surplus rental income; (c) The creation of an asset base for the shareholder (namely, the 158 no. properties) that will appreciate in value; and (d) The development of much-need housing in the Borough on sites allocated for such development in the draft Local Plan.

12. RECOMMENDATION

12.1 Cabinet is recommended to:

(i) Formally resolve as Shareholder of Incrementum Housing Development Company Ltd to approve: a. The Development Company issuing shares to the Council, up to the value as set out in section 7.16 of the Part 2 Report, noting all necessary actions will be carried out by or on behalf of the Directors of the Development Company; b. the Business Cases for the acquisition and developments at Sycamore Lane and Chatfield Drive; c. the Development Company’s acquisition of the sites Sycamore Lane and Chatfield Drive and delegate responsibility for agreeing the terms of the necessary contracts and documents necessary to proceed with the purchase and development of each site, including s.106 agreements, to the Directors of the Development Company.

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d. the Development Company negotiating and entering into the Buy Back Agreement; e. the Development Company negotiating and entering into the Credit Facility Agreement; f. the Development Company negotiating and entering into the Development Loan as set out in section 7.12 of the Part 2 Report; g. the Development Company negotiating and entering into the Homes England Accelerated Construction Funding Agreement; h. the Development Company negotiating and entering into the Pre-Contract Services Development Agreement.

(ii) Formally resolve as Shareholder of Incrementum Housing Management Company Ltd to approve the Management Company negotiating and entering into the: a. Buy Back Agreement; b. Credit Facility Agreement.

(iii) Formally resolve to provide Incrementum Housing Development Company Ltd with a loan on commercial terms as set out in section 7.2 of the Part 2 Report, and to delegate responsibility for agreeing the terms and conditions of that loan to the Director of Corporate Services (s.151 Officer) and the Head of Legal and Democratic Services (Monitoring Officer), following consultation with the Cabinet Member for Housing Public Health and Wellbeing.

(v) Agree the freehold sale of the former school sites at Sycamore Lane and Chatfield Drive to Incrementum Housing Development Company Ltd, the final disposal price to be agreed in compliance with the Council’s s.123 best consideration duty once open market valuations have been obtained, and to delegate responsibility for agreeing the final price and terms and conditions of those transfers to the Director of Corporate Services (s.151 Officer), Director of Growth and the Head of Legal and Democratic Services (Monitoring Officer), following consultation with the Cabinet Member for Housing Public Health and Wellbeing.

(vi) Approve the issue of further shares in Incrementum Housing Development Company Ltd up to the value as set out in section 7.6 of the Part 2 Report and delegate responsibility to preparing and finalising all required documents to the Head of Legal and Democratic Services (Monitoring Officer).

(vii) Agree to enter into the: a. Credit Facility Agreement with Incrementum Housing Development Company Ltd and Incrementum Housing Management; b. Buy Back Agreement with Incrementum Housing Development Company Ltd and Incrementum Housing Management c. Funding Agreement with Homes England and Incrementum Housing Development Company Ltd.

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And to delegate responsibility for agreeing the terms and conditions of the above matters to the Director of Corporate Services (s.151 Officer) and the Head of Legal and Democratic Services, following consultation with the Cabinet Member for Housing Public Health and Wellbeing.

(viii) Note the governance arrangements as set out in Appendix 2.

13. BACKGROUND PAPERS

None.

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WARRINGTON BOROUGH COUNCIL

Cabinet – 9 September 2019

Report of Cabinet Councillor C Mitchell, Deputy Leader and Cabinet Member, Members: Corporate Resources

Director: Lynton Green, Deputy Chief Executive & Director of Corporate Services

Senior Responsible Danny Mather, Head of Corporate Finance Officer:

Contact Details: Email Address: Telephone: [email protected] 01925 443935

Key Decision No. 005/19

Ward Members: All

TITLE OF REPORT: PUBLIC SECTOR SOCIAL IMPACT FUND (PSSIF)

1. PURPOSE

1.1 To seek Cabinet approval for the Council to create a Public Sector Social Impact Fund (PSSIF) together with Altana Wealth, an international Fund Management Company.

2. CONFIDENTIAL OR EXEMPT

2.1 This report is not exempt or confidential but the other report on this subject on this agenda is to be considered as a Part 2 item being exempt by virtue of categories 3 and 5, Local Government Act 1972, schedule 12A.

3. INTRODUCTION AND BACKGROUND

3.1 The Council has for many years been successfully investing in secured ethical social impact investments which provide a competitive market return whilst at the same time provide a social impact.

3.2 The Council has and, continues to be, contacted by other Councils who want to follow Warrington’s lead and invest in secured social impact investments. There are many barriers to Councils entering this field most notably due diligence cost and expertise which many Councils lack and the Council has developed over recent years.

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3.3 Currently nationally £41.5 billion of Council investment funds are in circulation the bulk of which is invested in low interest bearing unsecured bank and money market accounts and losses are made on the bulk of these balances when inflation is factored in. There is also a lack of choice outside property investment funds for Councils to diversify their investment portfolios. Many Local Government Pension Funds have successfully started to invest in social impact investments.

3.4 The Council has carried out a comprehensive national research with every tier of Local Authority over the past six months and have incorporated their feedback into the funds design. All Councils consulted have provided very positive feedback and have expressed a willingness to invest in the Council’s proposal.

3.5 This proposal does not involve any additional borrowing by the Council. The Council will invest a proportion of its investment balances in the fund as part of a diversified portfolio, per its Treasury Management Strategy that is agreed each year by Full Council.

3.6 According to a report by Morgan Stanley, sustainable investing funds that create a positive social or environmental impact have met or exceeded the median returns of traditional funds. The Global Impact Investing Network (GIIN) research shows that the annual return on Social Impact Investing has been 13% per annum over the last five years.

3.7 In recent years, social impact investing has captured the attention of leaders in government finance, philanthropy and business, seeking innovative ways to address some of society’s most pressing social issues.

3.8 In 2016, the UK government set up an independent advisory group on impact investing (Growing a Culture of Social Impact Investing in the UK). One of the findings of the report was there was a lack of social impact funds and products in the market. Having looked into the reasons why the UK is not fulfilling its potential for social impact investing, the advisory group has concluded that none are insurmountable. In fact, they reported there is a real opportunity to build on a history of social impact innovations in the UK and contribute actively to global sector leadership.

3.9 Today the UK stands at a critical point in the development of social impact investing. There are strong foundations in place, including deepening investor demand and a growing social impact environment, strongly supported by the government. Financial market participants are also eager to do more, and the UK’s strong record on environmental initiatives and corporate governance and reporting augurs well for the development of standards over the coming years.

3.10 The Council is proposing setting up in partnership with Altana Wealth a UK registered Public Sector Social Impact Fund (PSSIF) that Councils can invest treasury funds in. The fund will invest in social impact assets such as Affordable Homes, Solar / Wind and other green assets, Health, Forestry, etc. The funds will be secured on the basket of the funds investments. Altana Wealth will also invest their own funds into the PSSIF. Once the fund has been established the fund can be opened up to pension funds and other public sector organisations. The fund will not be managed by the Council but by Altana Wealth who are professional international / award winning fund managers. Governance and transparency will be the corner stone of the fund. Local government specialists will sit on the Investment Committee together with international social impact investment specialists. The fund will also invest in individual

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Council schemes if these schemes make a commercial return and also generate social impact. The PSSIF will focus on environmental, social and governance (ESG) considerations in all of its investment decisions.

3.11 The main purpose of the Council’s participation in the Fund structure is to serve a wider public agenda in stimulating social and environmental impact investing throughout the UK. As well as this the Council does anticipate financial returns as a result of its participation in the Fund structure, but this is not the primary or dominant reason for the Council’s participation in the Fund. Per the recommendations of Government Review - Growing a Culture of Social Impact Investing in the UK.

4. DETAILS OF PSSIF

4.1 A synopsis of a PSSIF is given below:

• A specialist designed Public Sector Investment Fund investing in social ethical secured assets generating competitive market returns to its investors. It uses two separate investment vehicles: a money market fund and a social impact fund. • PSSIF investments will be aligned to the UN Sustainable Development Goals (SDGs). • An opportunity to improve Public Sector cash flows and life for their constituents by joining together like-minded local authorities. • By pooling funds and knowledge into a PSSIF, annual cash flows are improved and investments in projects with long lasting social impact are created. • Valued client personalised relationship culture between the investors and Altana. • Social Impact Investing and UK onshore based fund. • Diversified fund, backed with secure assets and above market yields. • Cutting edge due diligence alongside a Social Impact Investment philosophy. • Transparent fee structure. • Governance as a core principle. • Local Government representation on investment committee. • Regular social impact reporting on investments. • Possibility for the fund to invest in Council schemes.

5. BENEFITS TO WARRINGTON The key advantages to the Council of setting up PSSIF are: • It will help deliver the Council’s Emergency Climate declaration (agreed by Full Council in June 2019) • Further enhance the Council’s reputation nationally as the leading Council in terms of social ethical investing and the Green agenda • Deliver considerable financial benefits that can be re-invested in front line services • Positive financial return from day one • The fund once established could be opened up to the residents of Warrington to invest in • Fund could invest in Social Impact schemes in Warrington • Provides a secured ethical high returning fund for the Council to invest part of its investment balances in as part of its diversified investment strategy.

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6. OTHER LOCAL AUTHORITY FUNDS

6.1 Several other Local Authorities have get up investment funds over recent years examples of these are given below:

• The GLA London Strategic Reserve set up in 2019 • The London Authorities Housing Fund set up in 2018 • Evergreen Funds • Berkshire & Maidenhead have also set up a Fund by investing £100m in Gresham House (Fund Manager) for a 20% stake. • Private investment funds established by LGPS (who have a long history of setting up funds)

7. EXPERT STRUCTURING ADVICE

7.1 The Council has commissioned Camdor Global (City investment advisor) to advise on the financial, background checks and management structuring of PSSIF. Addleshaw Goddard Solicitors have also advised on legal and Governance issues and James Goudie QC has further advised on legal aspects. Accountancy advice has been taken from Link Treasury Services and Worth Technical Accounting. Further details can be found in the Part 2 report.

8. LEGAL POWERS

8.1 A full legal evaluation including QC advice and leading solicitor advice has been undertaken in developing the PSSIF.

9. RISK ASSESSMENT

9.1 A risk assessment has taken place and full details can be found in the Part 2 report.

10. FINANCIAL IMPLICATIONS

10.1 The financial implications can be found in the part 2 report.

11. GOVERNANCE ARRANGEMENTS

11.1 Governance will be a foundation of PSSIF. The fund will be authorised and regulated by the Financial Conduct Authority (FCA). Risk management will an integral part of the investment process and Altana have over 25 years’ experience in building risk processes and systems. The Funds Investment Committee will be made up from practicing investing experts from across the private and Local Government Sectors and Worldwide Social Impact experts.

11.2 The fund will adopt the highest standards of impact investment system governance. The highest bar is currently the International Finance Corporation (IFC) Operating Principles for Impact Management launched in April 2019 and these will be integrated into PSSIF from the start.

11.3 The Fund will be integrated into the Council’s Treasury Management Strategy and regular quarterly reports on the funds’ performance will go to the Audit & Corporate Governance Committee.

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11.4 Three Local Government practicing experts will sit on the investment committee of the fund.

12. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

12.1 All investments undertaken by the PSSIF will be subject to an Equality and Diversity / Equality Impact Assessment.

13. CONSULTATION

13.1 Extensive external consultation has taken place in connection with this report. Meetings have taken place nationally with 20 other Councils of all tiers and two Local Government Pension Schemes. Link Financial Services and Arlington Close have been consulted together with APSE, CIPFA and the LGA Advanced Commercialism Group. Consultation has also taken place with the Ministry of Housing Communities and Local Government (MHCLG), the Department for Business Energy & Industrial Strategy (BEIS) and Big Society Capital.

13.2 Internal consultation with Portfolio holders, the Leader, Corporate Loans Group, Treasury Management Board, Corporate Services Departmental Management Team, and Strategic Management Team has taken place.

14. REASONS FOR RECOMMENDATION

14.1 To provide a Public Sector Social Impact Fund that Councils and the wider public sector can invest in to provide a social impact return and a secondary competitive commercial market return on the investment amount.

15. RECOMMENDATION

15.1 Cabinet is recommended to:

(i) Note the participation and investment by the Council, as set out in section 13 of the Part 2 report, as a limited partner in the limited partnership fund vehicle, pursuant to the Treasury Management Strategy;

(ii) Approve the participation by the Council as a member of the General Partner of PSSIF;

(iii) Approve the participation by the Council as a member of the Carried Interest Partner;

(iv) Approve, in connection with the participation by the Council as a member of the General Partner, the appointment of Altana as the manager of PSSIF in relation to the portfolio and risk management of the fund;

(v) Approve the appointment of the Council as a member of the investment committee of the fund as set out at section 14.14 of the Part 2 report;

(vi) Delegate the authority to the s.151 Officer (Director of Corporate Services) and the Monitoring Officer (Head of Legal and Democratic Services), following consultation with the Deputy Leader and Cabinet Member, Corporate Resources, to appoint the Authorised Representative at section 16.9 of the Part 2 report ;

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(vii) Delegate authority to act on behalf of the Council in its capacity as a Limited Partner to the S.151 Officer (Director of Corporate Services) as set out at section 16.13 of the Part 2 report;

(viii) Delegate authority to the s.151 Officer (Director of Corporate Services) and Monitoring Officer (Head of Legal and Democratic Services) , to agree the final terms of, and to enter into the following documents required in connection with its participation in PSSIF:

a. the limited partnership agreement for PSSIF LP; b. the limited liability partnership agreement for the General Partner; c. the limited liability partnership agreement for the Carried Interest Partner; d. a management agreement between the General Partner (in its capacity as general partner of PSSIF) and Altana;

(ix) Approve the entry into by the Council of any ancillary documents required to be entered into by the Council in connection with the aforementioned matters and documents.

16. BACKGROUND PAPERS

PSSIF working papers.

Contacts for Background Papers:

Name E-mail Telephone Danny Mather [email protected] 01925 44 2344

186 Agenda Item 13

WARRINGTON BOROUGH COUNCIL CABINET – 9 September 2019

Report of Cabinet Councillor C Mitchell, Deputy Leader and Cabinet Member, Member: Corporate Resources

Director: Steve Park, Director of Growth & Managing Director Warrington & Co

Senior Responsible Stewart Brown, Property & Estate Management Officer:

Contact Details: Email Address: Telephone: [email protected] 01925 442850

Key Decision No. 012/19

Ward Members: All

TITLE OF REPORT: STRATEGIC PROPERTY INVESTMENT

1. PURPOSE

1.1 To inform Cabinet of the opportunity to acquire a property and seek approval to purchase the property in accordance with the Council’s Property Investment Strategy as agreed by the then Executive Board in July 2017.

2. CONFIDENTIAL OR EXEMPT

2.1 This report is not exempt or confidential but the other report on this subject on this agenda is to be considered as a Part 2 item being exempt by virtue of categories 3 and 5, Local Government Act 1972, schedule 12A.

3. INTRODUCTION AND BACKGROUND

3.1 The proposal in in line with the Council’s policy framework. This includes documents such as the Enterprising Warrington Commercial Strategy 2017-2020, Property Investment Strategy, Treasury Management Strategy and Capital Strategy.

3.2 The Council’s recent property investment activity has included a number of high profile and successful acquisitions. However, there remain ongoing reasons to seek further opportunities:

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• To invest in commercial market opportunities generating a commercial internal rate of return to the Council. • To take advantage of current property values and seek long term (20 years) capital growth

3.3 The principles of the Property Investment Strategy include individual business cases for each acquisition, appropriate due diligence and a clear purpose for acting. These are set out in the part 2 report on this agenda.

4. PROPERTY MARKET OPPORTUNITY

4.1 The Council maintains a very close watch on economic and property market activity. Using existing staff, professional teams, external agents and partner organisations we are aware of many property transactions coming to the market.

4.2 A property investment and regeneration opportunity is outlined in the part 2 report on this agenda.

5. LEGAL IMPLICATIONS

5.1 The Council is able to rely on specific land acquisition, investment and borrowing powers to enable this proposal. These powers are set out in detail in the part 2 report on this agenda.

5.2 It is confirmed that the Council has the power to purchase the property.

6. FINANCIAL IMPLICATIONS

6.1 The proposed property acquisition would be an invest to save scheme. The scheme generates a commercial return to the Council.

6.2 The Council has had regard to the CIPFA Prudential Code, Ministry of Housing Communities and Local Government (MHCLC) Investment and Minimum Revenue Provision (MRP) Guidance in its assessment of purchasing the asset.

7. RISK ASSESSMENT

7.1 In order to clearly establish the risks associated with the acquisition of this investment, the Council has commissioned appropriate due diligence involving external professionals. This can be summarised as follows:

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• Legal Due Diligence - Property title, Lease and occupation agreement

• Property Due Diligence – Valuation (RICS Red Book Report), Building survey, Environmental review and Planning review.

• Financial Due Diligence - Structure of financing - Borrowing compliance with CIPFA Prudential Code and guidelines - Tax implications - Financial modelling - Tenant covenant strength - Investment Overview advice

7.2 The results of the due diligence, reports and advice from external consultants provide assurance that the acquisition is a prudent investment for the Council and also help to inform the ongoing review and mitigation of the identified risks.

7.3 The risk of this investment is in the quality of a tenant and the ability to pay the rent and property outgoings.

7.4 The risks and mitigation factors are set out in the part 2 report on this agenda addressing the quality of the tenant covenant, alternative investment options and exit strategy for the Council.

8. EQUALITY AND DIVERSITY/EQUALITY IMPACT ASSESSMENT

8.1 There are no equality and diversity issues associated with this report.

9. CONSULTATION

9.1 There has been no external consultation beyond professional advisors associated with the contents of this report due to the commercial nature of the proposal.

10. REASON FOR RECOMMENDATION

10.1 It is recommended to proceed with an acquisition of the property for the following reasons:

• This will provide a net income stream for the Council • To enable the Council’s ambition to become financially sustainable through longer term planning • To assist in delivering the raised target for property income

11. RECOMMENDATION

11.1 Cabinet is recommended to:

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(i) Approve the principle of acquisition of the property.

(ii) Approve the purchase be funded from prudential borrowing and make provision in the Capital Programme as identified in the part 2 report on this agenda.

(iii) Delegate to the Director of Growth, following consultation with the Head of Legal and Democratic Services (Monitoring Officer), Deputy Chief Executive & Director of Corporate Services (s151 Officer) and the Deputy Leader and Cabinet Member, Corporate Resources, responsibility for the final acquisition terms, based on the principles and costs set out the part 2 report to this agenda.

(iv) Authorise the Head of Legal and Democratic Services (Monitoring Officer) to enter into the contract and finalise any related documents to complete the transaction in accordance with the above.

(v) Direct that the Deputy Chief Executive & Director of Corporate Services (s151 Officer) creates an appropriate sinking fund or reserve using an element of the net income.

(vi) Direct that all remaining financial surpluses arising from the property be allocated to off-set the finance costs of the Council’s regeneration and economic growth capital programme as set out in the part 2 report on this agenda.

(vii) Approve a waiver in respect of the appointment of, and award the contract in accordance with the part 2 report on this agenda and delegate the authority to negotiate the terms of that contract to Deputy Chief Executive & Director of Corporate Services (s151 Officer) the Head of Legal and Democratic Services (Monitoring Officer).

(viii) Authorise an appropriate Council Officer to enter into the required licence as set out in the part 2 report on this agenda.

12. BACKGROUND PAPERS

None

190 Agenda Item 14

WARRINGTON BOROUGH COUNCIL CABINET – 9 September 2019

Report of Cabinet Councillor C Mitchell, Deputy Leader and Cabinet Member, Member: Corporate Resources

Director: Steve Park, Director of Growth & Managing

Senior Responsible Stewart Brown, Property & Estate Management Officer:

Contact Details: Email Address: Email Address: [email protected] [email protected] ov.uk Key Decision No. 008/19

Ward Members: All

TITLE OF REPORT: GARVEN PLACE DEVELOPMENT

1. PURPOSE

1.1 To inform Cabinet of the proposal to sell land and buildings at Garven Place, to outline the proposed redevelopment scheme and to seek approval to appoint a preferred purchaser.

1.2 The disposal of the property is proposed for economic regeneration, growth and financial capital receipt purposes.

2. CONFIDENTIAL OR EXEMPT

2.1 This report is not confidential and exempt but the report on part 2 of this agenda setting out the financial details is.

3. INTRODUCTION

3.1 The Garven Place site comprises the former clinic site and adjoining public car park together with the listed buildings, Bank House (no 88) and No 86 Sankey Street.

3.2 The site comprises approximately 1.38 acres (0.56 ha).

3.3 Bank House (No 88) has been vacant since 2014 when it ceased to be used by Golden Gates Housing Trust as an operational office. 86 Sankey Street is partly leased

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however it is proposed the buildings will be offered with vacant possession and discussions with the tenant have commenced to that effect.

3.4 Land to the rear of Bank House is currently an operational Council operated public car park, a condition of sale is that this provision is to remain somewhere within the redevelopment scheme, further details within the body of the part 2 report on this agenda.

3.5 The site of the former NHS clinic was acquired by the Council as part of the land swop with the NHS in 2009 for the former public swimming baths on Bath Street. The site is now cleared, levelled and fenced with direct access from Sankey Street.

4. DEVELOPMENT PROPOSAL SUMMARY

4.1 The Council has a long held ambition to bring forward development of the “Garven Place” site. There have been proposals for site assembly going back 10 years and the current market and wider town centre developments now support a development opportunity. The site is considered to be of a high profile and worthy of a more aspirational and quality scheme for the town centre if at all possible.

4.2 Following a marketing exercise, it is proposed to appoint a preferred developer to progress a scheme at their risk and then report back to Cabinet at a future date in 2020 for final terms for a disposal of the property once planning consent and details of the project can be confirmed.

4.3 A proposal provided seeks to convert the existing buildings into a boutique hotel, restaurant, spa and swimming pool, development of residential apartments and public car park.

4.4 The benefits of the proposal are as follows:

• It is considered that this proposal will regenerate an area of unused vacant land (former clinic site). • The scheme is aspirational. • It would provide a high quality development on a strategic corner site adjacent to the Town Hall. • Brings back into use two land mark buildings within Warrington for a use other than residential. • The residential element of the proposal is supported due to the site’s inclusion in the Council’s Strategic Housing Availability Assessment (SHLAA). • The opportunity for a capital receipt.

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5. PROPOSAL DISPOSAL

5.1 The details of the tender process and offers received are set out in the part 2 report on this agenda.

6. LEGAL IMPLICATIONS

6.1 The Council has the powers to dispose of property assets by way of the Local Government Act 1972. There are no other direct legal implications associated with this report.

7. FINANCIAL IMPLICATIONS

7.1 The Council will receive a capital receipt following completion of the sale of the site.

8. RISK ASSESSMENT

8.1 The risks associated with this disposal are set out in the part 2 report on this agenda.

9. EQUALITY AND DIVERSITY/EQUALITY IMPACT ASSESSMENT

9.1 There are no equality and diversity issues associated with this report.

10. CONSULTATION

10.1 There has been no external consultation associated with the contents of this report due to the commercial nature of the proposal.

11. REASON FOR RECOMMENDATIONS

11.1 It is recommended to appoint the preferred purchaser with an intention to ultimately dispose of the property for the following reasons:

• This will provide a capital receipt for the Council. • This will provide a high quality development on a strategic corner site adjacent to the Town Hall. • This brings back into use two land mark buildings within Warrington town centre. • The residential element of the proposal is supported due to the site’s inclusion in the Council’s Strategic Housing Availability Assessment (SHLAA).

12. RECOMMENDATION

12.1 Cabinet is recommended to approve the appointment of a preferred purchaser of the Council Land at Garven Place on the terms set out in the part 2 report on this agenda.

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13. BACKGROUND PAPERS

None

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Agenda Item 15

WARRINGTON BOROUGH COUNCIL

CABINET - 9 September 2019

Report of Cabinet Councillor R Knowles, Cabinet Member, Statutory Health and Member: Adult Social Care

Executive Director: Steve Peddie, Executive Director Families and Wellbeing

Senior Responsible Catherine Jones, Operational Director, Social Care (and Deputy

Officers: DASS)

Contact Details: Email Address: Telephone: [email protected] 01925 444251

Key Decision No. 016/19

Ward Members: All

TITLE OF REPORT: DIRECT AWARD OF CONTRACTS FOR THE PROVISION OF DAY ACTIVITIES AND OPPORTUNITIES FOR ADULTS WITH A LEARNING DISABILITY

1 PURPOSE

1.1 To seek approval for the direct award of two contracts for the provision of Day Opportunities for adults with autism/learning disabilities at (1) Macintyre Life Long Learning Centre and (2) Walton Lea Partnership. The contract awards will align the two services with one other primary day opportunity contract, which has an expiry date of 31 October 2020.

1.2 A full tender covering all day services for people (with care and support needs) will be completed by 1 November 2020. A tender inclusive of all current day services will enable the Council to further develop the market of day opportunity, employment and training services for adults with autism/learning disabilities. The fully inclusive tender process concluding in 2020 will cover all (358) current service users and any new ones that may start in the intervening time.

1.3 The report sets out the rationale for the proposed contract award for Macintyre and Walton Lea and outlines the current position in relation to the service delivery, planned development, future commissioning and procurement. The direct awards will ensure continuity of existing arrangements for service users, whilst enabling a full tender process to be completed by, and implemented by, 1 November 2020 for all day opportunities for adults with a learning disability in Warrington.

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1.4 Warrington Borough Council also has a leasehold agreement in place with both Macintyre and Walton Lea Partnership for the land on which these services are delivered. Details of the lease agreement is presented in part 2 of this report.

1.5 Due to the value of the respective contracts, Cabinet approval is required.

2. CONFIDENTIAL OR EXEMPT

2.1 Part 2 of the report (agenda item 22) is to be considered as a Part 2 item being exempt by virtue of category 3 Local Government Act 1972, schedule 12A.

3. INTRODUCTION AND BACKGROUND TO THE SERVICES

3.1 Warrington Borough Council currently commissions three primary day opportunities services for adults that have been assessed as having care and support needs with autism and or a learning disability. Two of these primary providers are Macintyre and Walton Lea Partnership.

3.2 While these services are non-statutory, they provide vital opportunities to promote wellbeing and independence. The majority of people accessing these services are aiming to increase their levels of independence both at home and within the community, and the provision of a quality, meaningful day opportunity will help to achieve this goal. These services provide training opportunities and work with people on developing their social skills. Some of the training and experience gained could lead to formal qualifications and the opportunity for employment on a paid or voluntary basis. Although these are non-statutory services, they assist in meeting several of the key domains under our care and support general responsibilities of Local Authorities, such as: • Promoting Individual Well Being • Preventing needs for care and support • Providing information and advice • Promoting diversity and quality in provision of services

3.3 Macintyre Lifelong Learning Centre provides 100 day opportunities places per week to adults with a learning disability – a contract has been in place since April 2009. During the duration of the contract the service has been developed to meet local need and demand for good quality, value for money day opportunity services. The current contract expires on 31 December 2019.

3.4 The purpose of Macintyre Lifelong learning service is to provide daytime activities based on a curriculum underpinned by the principles of lifelong learning. The Provider aims to reduce social isolation and increase participation by: • Enabling service users, on equal terms, to access community based activities. • Promote positive mental and physical health via advice and sign-posting

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• Actively seek to increase the range of opportunities offered through working in partnership with a range of local mainstream and specialist services covering education, leisure and vocational areas. • Promote independence and support service users to access new, and retain existing, social roles, relationships and social/leisure activities, including mainstream activities. Provide a range of activities and groups as part of an extensive activity programme.

3.5 Macintyre Care are currently commissioned on a block contract arrangement (100 places/week). Additional placements (above the block) are secured through single purchase agreements. Macintyre offer all additional placements at the existing agreed block purchase price. Macintyre are currently at full capacity on the block with 100 Day sessions being used by 55 service users.

3.6 Walton Lea Partnership is local charity providing outdoor horticulture activities and training for adults with a learning disability. They are currently commissioned on a block contract arrangement with additional placements (above the block) secured through single purchase agreements. The service currently provides up to 180 sessions per week, all of which are fully utilised by approximately 62 service users. The purpose of Walton Lea Partnership is to provide training, development and learning opportunities to service users to achieve their personal objectives including develop their independence, acquire work related and social skills. This service has been provided at Walton Lea since July 2001 and delivers good quality, value for money day opportunities to meet local need.

3.7 The current Walton Lea contract has been in place since 1 January 2019 and expires on 31 December 2019.

3.8 Quality Assurance Learning disability day services are unregulated activities and are therefore not registered or inspected by CQC. However, providers are subject to delivery and contract management that include oversight of the following:

• Staffing details, including details of recruitment checks, vacancies, sickness, DBS numbers, disciplinary and grievances and staff training. • Client details, including details of person centred plans and outcomes achieved, • Case studies detailing clients’ achievements and outcomes • Support delivery, referrals and utilisation. • Policy check of all key documents required under the agreement including published and review date. • Quality assurance - details of reported safeguarding’s, health and safety reporting, compliment, comments and complaints, internal quality monitoring and any other notifiable incidents and detailed in the agreement. • Service development, including details of new business or service models • Provider progress in meeting the service key performance indicators

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• If applicable action planning to address under performance, details of progress on achieving the milestones detailed in any remedial action plan, and any other issues of relevance to the service.

3.9 The contract monitoring process indicates that Macintyre and Walton Lea services are valued and well attended, block placements are fully utilised with the option of further single purchase placements to be commissioned.

3.10 Approval of the direct award of contracts to both MacIntyre and Walton Lea Partnership, which are due to expire in December 2019, will allow the alignment of all day opportunities contract expiry dates. As noted this will enable the Council to take a co-ordinated commissioning and procurement approach to the development of day opportunity services for adults with a learning disability.

3.11 The recommendation to direct award contracts to MacIntyre and Walton Lea Partnership will enable the Council to:

• Maintain current service delivery for service users accessing McIntyre and Walton Lea services. • Manage the Council’s financial impact of commissioning day opportunities through to November 2020 through the use of maintained block arrangements. • Review charging policy and arrangements for all day opportunities to ensure there is a consistent approach to all provision. • Develop service specifications to ensure there is an improved offer across the LD Day opportunity services. • Undertake a single tender for LD day opportunities, and for this to be undertaken and concluded by 1st November 2020.

4. FINANCIAL CONSIDERATIONS

4.1 If the recommendation contained in section 8 below is agreed by Cabinet the proposed 10 month Direct Contract awards will result in expenditure for the Council of:

Macintyre Lifelong learning Centre – £186,807.39 Walton Lea Partnership - £300,000

4.2 The services provided in the two contracts are services covered by the Light Touch Regime of the Public Contract Regulations 2015 however the total value of each contract is below the applicable threshold and therefore the opportunity to tender for these services does not need be published in the Official Journal of the European Union (OJEU).

4.3 If the recommendation contained in section 9 below is agreed by Cabinet the direct contract awards will not place any additional financial responsibilities on the Council other than those currently in place.

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5. RISK ASSESSMENT

5.1 The risks are different depending on whether the proposal for the direct award of the new contract is approved or not.

5.2 If the direct award of the new contract is approved, the main risks are associated with; a) A reduction in provision to vulnerable service users b) The reduced potential for savings via a procurement process, and c) The potential for challenge from other suppliers that may be interested in this area whom have not had chance to tender.

5.3 Further information on relevant legal and procurement risks and considerations are set out in Section 6 of the part 2 report.

5.4 The risks associated with not approving the direct award of a new contract are associated with uncertainty for current and future service users. This report covers important services that meet statutory need and as noted, aims to ensure the continuity of care for current users and notes that:

a) There is a continuing need and demand for such services, b) There may be risks to vulnerable people in changing provision and location, and c) This approach reduces financial risks associated with voids and moving users to alternative/new settings.

6. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

6.1 The impact of direct awarding a new contract has been considered in light of the Authority’s Equality responsibilities and no adverse impact has been identified in light of the intention to maintain the existing service. This position will be kept under review via ongoing contract monitoring arrangements.

7. CONSULTATION

7.1 Consultation undertaken and feedback from reviews with service users and families has consistently indicated that services are valued.

7.2 Consultation with the existing providers has indicated a willingness to continue its work with the Council on revised terms and that the service would remain sustainable.

8. REASONS FOR RECOMMENDATION

8.1 The contract awards will align the two services with one other primary day opportunity contract, which has an expiry date of 31 October 2020.A full tender covering all day services for people (with care and support needs) will then be

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completed by 1 November 2020. A tender inclusive of all current day services will enable the Council to further develop the market of day opportunity, employment and training services for adults with autism/learning disabilities.

9. RECOMMENDATION

9.1 Cabinet is recommended to:

(i) Agree to direct contract award Macintyre for the provision of a Lifelong Learning Service for adults with a learning disability for a period of 1 January 2020 to 31 October 2020 (10 months).

(ii) Agree to direct contract award Walton Lea Partnership for the provision of a Supported Day activities and Training Service for People with Learning Disabilities, for a period of 1 January 2020 to 31 October 2020 (10 months).

(iii) In order to achieve the above, agree to waive the Council’s Contract Procedure Rules (CPRs) for the reasons set out in paragraph 5.4 of this report. The Council’s CPRs require the invitation of competitive tenders for the named services. The CPRs were drafted in 2012 and therefore pre date the Public Contract Regulations 2015 and refer to Part B exempt services under the old regime. CR 6 provides that a waiver of any requirement may only be granted by Cabinet only and that any such decision may be a Key Decision.

10. BACKGROUND PAPERS

10.1 The contracts between Warrington Borough Council and Macintyre Lifelong Learning Centre for the provision of a Lifelong Learning Service to clients with a learning disability.

10.2 The contract between Warrington Borough Council and Walton Lea Partnership for the provision of a Supported Employment and Training Service for People with Learning Difficulties.

10.3 Draft Tender Timeline for Learning Disabilities Day Opportunities.

Contacts for Background Papers:

Name E-mail Telephone Frank Pacey [email protected] 01925 443571

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WARRINGTON BOROUGH COUNCIL

CABINET - 9 September 2019

Report of Cabinet Councillor R Knowles, Cabinet Member, Statutory Health and Adult Member: Social Care

Executive Director: Steve Peddie, Executive Director Families and Wellbeing

Senior Responsible Catherine Jones, Operational Director, Social Care (and Deputy DASS) Officers:

Contact Details: Email Address: Telephone: [email protected] 01925 444251

Key Decision No. 017/19

Ward Members: All

TITLE OF REPORT: TENDER FOR THE PROVISION OF RESIDENTIAL INTERMEDIATE CARE AND ACCOMMODATION (8 BEDS).

1 PURPOSE

1.1 To advise on the outcome of the tender evaluation exercise and award of a contract for the provision of a residential intermediate care bed facility (8 beds).

1.2 To agree the acceptance of the tender recommendation as detailed in section 12 of this report, which has been identified by the tender evaluation panel to meet the required standards for contract award.

2 CONFIDENTIAL OR EXEMPT

2.1 Part 2 of the report is confidential and not for publication, by virtue of the fact that it may result in the likely disclosure of exempt information as defined in Category 3 of Schedule 12A to the Local Government Act 1972 and the public interest in not disclosing the information outweighs the public interest in disclosing it.

3 INTRODUCTION AND BACKGROUND 3.1 An independent assessment by Venn Consultants across the Cheshire sub region in 2018 indicated that the Warrington health and social care system had a capacity deficit of around 20 intermediate care places to ensure that flow, particularly out of hospital, was timely and on to an appropriate reablement or intermediate care provision. This data is corroborated by the operational delivery experience last and previous year/s

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when there were consistent delayed discharges due to lack of capacity in bed based Intermediate Care services and insufficient packages of care to support people in their own home.

3.2 In March 2019 a review of reasons for Delayed Transfers of Care Hospital (DTOC) indicated a fifth of all reasons for delay was attributable to accessing Intermediate care at home or in bed-based provision.

3.3 There continues to be a high proportion of people being admitted to hospital where their stay, following routine diagnostic tests, does not result in any further health intervention. For example, analysis of the primary diagnoses codes associated with ‘Frailty’ for 65+ non-elective admissions at Warrington Hospital in 2018/19 shows that 76% of these admissions have no substantive procedure undertaken (null procedural code) but will stay on average for 9 days in hospital. It is anticipated that a large proportion of this group could be supported to avoid attendance and then admission to hospital through an improved intermediate care offer.

3.4 Intermediate care is designed to support people to live as independently as possible and reduce their dependence on or need for health and/or social care services.

3.5 The model of care and support for this service will be focussed around each individuals own recovery or reablement needs and will commonly include a mixture of physical support alongside therapy and programmes that aim to build confidence and regain independence.

3.6 It is noted that having increased access to an intermediate care offer before hospital (step up) admission may improve further both outcomes for individuals and flow across the system. The aim for winter 2019-20 is to prepare now to meet the estimated intermediate care capacity deficit for 20 people and to focus available staff and budgetary resources on 3 key service areas:

• Increase (as per this tender) the overall intermediate care bed capacity creating additional residential provision with a focus on step up (from community) beds rather than the current exclusively step down from Hospital; and • Development of a co-ordinated rapid community response offer to reduce admission to Hospital; • Increase in intermediate care at home capacity with a focus also on step up (from community).

3.7 Operational and commissioning directors from the CCG, the Council’s adult social care team, Warrington Hospital and Bridgewater have used evidence from previous years, assessment of current issues and data to agree the above system-wide service priorities to seek to better manage service pressures beginning new approaches in time for winter 2019/20. The system leaders have focused on programmes of work that are expected to deliver good outcomes for individuals, system integration and improvements at the same time. The outline proposals were confirmed in April 2019

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and outline business cases agreed at the Better Care Steering Group in August. This group directs the pooled funding shared between the NHS bodies and the Council.

3.8 The targeted proposals including the intermediate care tender referred to in this report was shared with NHS England in their review of the winter forward plans for Warrington in June 2019 and noted positively.

3.9 Alongside this tender and the 2019/20 winter plan is a system wide review of Intermediate Tier Services which will report later this year and is expected to make substantial recommendations for change that will require a phased approach to change that both maintains an expanded offer whilst developing new provision – potentially including a new build/facility.

3.10 95% of current Intermediate Care beds are accessed via the hospital discharge processes. Whilst there are an additional 2 Intermediate Care beds at Brampton linked to the Frailty Hub these are also commonly associated with those that have attended Accident and Emergency and are seeking to avoid admission to hospital.

3.11 This tender for the 8 bed service is aimed at developing provision for those who are at risk of hospital admission or have been in hospital and need help to regain independence. Increasing opportunities particularly for those that have not attended hospital to have access to short periods of reablement and support is a priority. The proposed contract terms also provide flexibility to fit with the findings from system wide review of Intermediate Tier Services.

3.12 A market assessment was undertaken to inform the development of the new service, and concluded that the residential intermediate care service required this year must meet the following criteria:

• not reduce capacity significantly for available residential or residential dementia beds in the local care home market; • in a setting currently classed as good (by CQC) and not subject to any significant improvement plans by the Local Authority; • be available in Warrington in an accessible site; • be familiar with local working arrangements and protocols associated with frailty and hospital discharge; • be able to establish services by October 2019; • work closely with community therapy and GP services which would need to be ‘in-reached’ rather than provided by the setting; • be attached to existing care home services (not a standalone provision); • operate on a block contract arrangement to ensure the services would be available at relevant times and not be disrupted; • be in place for a minimum of 12-24 months while the intermediate care review is being completed.

3.13 Further information on the decision to start a tender process is contained in part 2 of this report (section 3).

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4 TENDER PROCESS

4.1 Due to the requirement for the service to be operational by October 2019, officers undertook a tender process by the negotiated route with a reduced timescale, under the Light Touch regime (Public Contract Regulations 2015).

4.2 An advertisement inviting expressions of interest was placed in the Supplement to the Official Journal of the European Union and on The Chest procurement portal on 26th July 2019.

4.3 The Council received 1 submission by the closing date of 9th August 2019, from Catalyst Choices CIC, to deliver the service at Woodleigh.

5 TENDER EVALUATION

5.1 Tenders were evaluated in terms of both price and quality, weighted as follows:

Criteria Weighting

Quality of Service 60%

Cost of the Service 40%

TOTAL 100%

5.2 The tender evaluation process consisted of 2 stages:

5.2.1 Stage 1 - The initial tender (method statements) were evaluated. The tenderer with the best score was allocated the maximum 40%, and those with lower scores proportionately less, using the methodology shown in Appendix A:

5.2.2 Stage 2 – The provider was invited to a negotiation meeting to provide further detail on their submission, and discuss pricing for the service.

5.2.3 The price and quality scores were added to arrive at the final score, as outlined in the Part 2 report and the initial tender submissions were evaluated by a Tender Evaluation Panel.

5.3 The evaluation scores are detailed in part 2 report.

5.4 The bidder was invited to a negotiation meeting held on 16 August 2019, a summary of this meeting is detailed in part 2 report.

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6 FINANCIAL CONSIDERATIONS

6.1 The price submission, and scores, are detailed in part 2 report.

7 RISK ASSESSMENT

7.1 Operational risks have been identified and assessed through the tender process via the initial tender questions. These included plans to mitigate the following operational risks of the service:

• Difficulties with mobilising and implementing the service in the required timescale;

• Difficulties working with partner agencies, community therapy services, and providing GP cover for the service; and

• Ensuring quality assurance for the service is sufficient.

7.2 Officers will also undertake risk monitoring and management as part of contract monitoring, and the service will be subject to an enhanced level of formal contract monitoring during the first six months (monthly formal monitoring document submissions).

7.3 The cost of the service contract and other provisions that will support the delivery will be covered by monies allocated by the Improved Better Care Fund (IBCF).

8 EQUALITY IMPACT ASSESSMENT

8.1 An Equality Impact Assessment was conducted at the start of the tender procedure and the specification/contract requirements reflect the importance of ensuring that those at risk of being marginalised or excluded from accessing services due to issues such as disability, gender, faith, culture, sexuality, age etc will not be discriminated against. No significant equality or diversity impacts or risks were identified in the Equality Impact Assessment.

9. LEGAL AND PROCUREMENT IMPLICATIONS

9.1 In the view of the issues detailed above, the proposed contract has been tendered in accordance with both the Public Contract Regulations 2015 and the councils Contract Procedure Rules meaning there is a low risk level of this being challenged.

10. CONSULTATION

10.1 No formal consultation has taken place in relation to this tender but the feedback from those that use intermediate care services or are subject to delayed transfers of care from Hospital suggests that such a service will support improved short and long term outcomes.

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11 REASON FOR RECCOMMENDATIONS

11.1 To ensure the development and implementation of a new residential intermediate care service in time for winter 2019 and in line with expectations, changing needs, and service gaps identified in the independent (Venn) and Officer market review.

11.2 Contract Procedure Rule CR60 requires Cabinet to approve expenditure greater than £250,000.

12 RECOMMENDATION

12.1 Cabinet is recommended to:

(i) Approve the award of the contract to Catalyst as set out in the Part 2 report for a period of one year from 14 October 2019 to 13 October 2020, with options to extend by a further two periods of twelve months. The maximum duration of this contract will be up to 13 October 2022. This is an annual maximum cost of £291,200.00 and a total maximum cost over the three years of £873,600.00.

(ii) Delegate responsibility for agreeing the terms and conditions and entering into the contract to Director of Families and Wellbeing and the Head of Legal and Democratic Services (Monitoring Officer), following consultation with the Cabinet Member, Statutory Health and Adult Social Care.

13. BACKGROUND PAPERS (i) Invitation to Tender (ii) Evaluation Plan (iii) Tender Evaluation (within the Chest) (iv) Selection Questionnaire (within the Chest).

Contacts for Background Papers:

Name E-mail Telephone Rick Howell [email protected] 01925 442971

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Appendix A: Table 2 Example Tender Marking for Quality marks

Question Weighting Tenderer A Tenderer B Tenderer C Tenderer D

Assesso Assesso Ave Score Assesso Assesso Ave Score Assesso Assesso Ave Score Assesso Assesso Ave Score r 1 r 2 mark r 1 r 2 mark r 1 r 2 mark r 1 r 2 mark

Q1 30% 5 4 4.5 27 5 4 4.5 27 5 5 5 30 2 3 2.5 15

Q2 20% 5 5 5 20 5 5 5 20 4 3 4.5 18 3 3 3 12

Q3 15% 4 5 4.5 13.5 3 4 3.5 10.5 1 3 2 6 5 5 5 15

Q4 15% 4 3 3.5 10.5 4 3 3.5 10.5 2 2 2 6 5 5 5 15

Q5 10% 4 5 4.5 9 2 3 3.5 7 2 3 2.5 5 1 2 1.5 3

Total 100% 80% 75% 65% 60%

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Table 3 Example Tender Scoring

In this example quality is 60% and Price 40%

Tenderer A Tenderer B Tenderer C Tenderer D

Quality Score 80% 75% 65% 60%

Calculation to apply weighting ((80-80)/80) x100 = 0 ((80-75)/80) x100 = 6.25 ((80-65)/80) x100 = 18.75 ((80-60)/80) x100 = 25 (maximum 60%) 100 - 0 = 100 100 - 6.25 = 93.75 100 – 18.75 = 81.25 100 – 25 = 75

100 x 0.60 = 60 93.75 x 0.60 = 56.25 81.25 x 0.60 = 48.75 75 x 0.60 = 45

Weighted Quality Score 60 56.25 48.75 45

Price £500 £450 £400 £810

Calculation to apply weighting ((500-400)/400) x 100 = 25 ((450-400)/400) x 100 = 12.5 ((400-400)/400) x 100 = 0 ((810-400)/400) x 100 = 102.5 (maximum 40%) 100-25 = 75 100-12.5 = 87.5 100-0 = 100 100-102.5 = -2.5

75 x 0.40 =30 87.5 x 0.40 =35 100 x 0.40 = 40 -2.5 x 0.40 = -1

Weighted Price Score 30 35 40 0

TOTAL SCORE 90 91.25 88.75 45

Quality Score + Price Score Where a minus figure is achieved the score will be readjusted to 0

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WARRINGTON BOROUGH COUNCIL

Cabinet – 9 September 2019

Report of Cabinet Councillor C Mitchell, Deputy Leader and Cabinet Member, Members: Corporate Resources and Councillor J Guthrie, Cabinet Member, Environment and Public Protection

Director: Lynton Green, Deputy Chief Executive & Director of Corporate Services

Senior Responsible Danny Mather, Head of Corporate Finance Officer:

Contact Details: Email Address: Telephone: [email protected] 01925 443935

Key Decision No. 020/19

Ward Members: All

TITLE OF REPORT: ENERGY COMPANY INVESTMENT

1. PURPOSE

1.1 To seek Cabinet approval for the Council to purchase a 50% equity stake in Together Energy Limited (“Together Energy”) together with a fully secured loan facility.

2. CONFIDENTIAL OR EXEMPT

2.1 This report is not exempt or confidential but the other report on this subject on this agenda is to be considered as a Part 2 item being exempt by virtue of categories 3 and 5, Local Government Act 1972, schedule 12A.

3. INTRODUCTION AND BACKGROUND

3.1 The Council, for a number of years, has been recognised as being one of the leading green energy Councils in the UK. It has been a policy aim of the Council for many years to set up an energy supply company. This is incorporated into the Council’s Green Energy Policy and savings for the setting up an energy company have been included into the Council’s 2019/20 MTFP agreed by Full Council in February 2019.

3.2 The purchase of a 50% stake in Together Energy supports the Council’s aim of setting up and delivering a local municipal licensed energy supply company delivering significant

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multi-layered financial and non-financial benefits to Warrington. The purchase of Together Energy will aid the delivery of the Council’s Emergency Climate Declaration which was agreed by Full Council in June 2019.

3.3 The purchase of Together Energy will bring the following main benefits to Warrington:

• Will play a lead role in delivering the targets set by the Council’s Emergency Climate Resolution by offering to supplying 100% green energy to Council residents • Relieving fuel poverty in Warrington (currently 10k are estimated to be in fuel poverty in Warrington). • Delivery of employment opportunities particularly amongst the long term unemployed. The opening of an office in Warrington is expected to create a minimum of 20 jobs in the first year. • Together will open its Warrington operation in The Base. • Together Energy have a strong social focus and have programmes and training schemes to get the long term unemployed or those with limited qualifications back into the work place. This policy will be implemented in Warrington helping to get the unemployed and low skilled back into employment. This will integrate well with the Council’s Central Six Programme. • Generating a commercial return to the Council which can be reinvested in front line services. • Opportunity to integrate Warrington’s generating assets into the company to maximise Value for Money.

4. DETAILS OF TOGETHER ENERGY

4.1 Together Energy Limited is a leading independent energy provider focused on the UK consumer market and is headquartered in Clydebank.

4.2 Together Energy was established in April 2016 by the founder, Paul Richards, after he recognised an opportunity in the market for an energy supplier who can provide a high quality of customer service at a competitive price and take advantage of the perceived poor value for money provided by the Big 6.

4.3 Together Energy has continued to deliver strong growth with customer numbers and currently has a 91k customer base.

4.4 Together Energy also has a strong social agenda, with the majority of its employees in its head office employed from the local Clydebank area, which is one of the poorest in the country. The Group engages regularly with local charities and social organisations and sees its social agenda commitment as a key differentiator which helps strengthen customer retention and loyalty. Together Energy has proactive schemes to get the long term unemployed back into the work place and providing training for employees to improve their skills. The Group has a strong social focus with regard to creating employment opportunities for people from some of the poorest areas in the country. In this regard it engages closely with the Scottish Government, local government and charities and the Group’s investment in people has been recognised with business excellence awards.

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5. LOCAL AUTHORITY ENERGY SUPPLY OWNERSHIP

5.1 Energy is becoming an increasingly priority policy objective of Councils with over 80 passing emergency climate resolutions.

5.2 In 2013, Nottingham was the first Council to establish its own licenced energy supply company branded as ‘Robin Hood Energy’. Bristol followed shortly after, launching 'Bristol Energy' in 2015. Ovo delivered a white label community proposition to Peterborough and East Cheshire, with Co-operative Energy recently partnering with Brighton. Our Power entered the market with a part-Scottish Government funded business with the Housing Association, Places for People, entering the Supply market initially for its own customers and then expanding where it won a leading collective switch in 2016. In January, Barking & Dagenham Council launched its own energy company. In December, Norwich City Council approved plans to launch an energy company with Engie, the French energy company that has also agreed a white label deal with Cheshire West and Chester Council.

5.3 The indication is that many other local Councils are considering establishing their own energy supply company, or partnering with others. Birmingham, Bath & Somerset Council, Cornwall, Portsmouth, Manchester City Region have policy objectives and are exploring setting up energy companies.

5.4 Sadiq Khan, Mayor of London, made a public statement with an intention to establish energy supply for Londoners Islington, Hackney and Liverpool Councils are white labelling with Robin Hood Energy.

5.5 The Scottish Government and Welsh Government are also promoting the local energy companies and Swansea Council are in the process of establishing one.

5.6 Many other types of Council and their representative bodies are currently considering their own approach to energy supply, either through their own supply business or through white labelling with a partner.

5.7 At the national level, there is strong cross-party political support for development of local and community based energy offerings.

6. OPTIONS APPRAISAL

6.1 The Council has carried out a full options appraisal on the purchase of Together Energy the options that were assessed are:

• Option 1 - Council to Set Up its Own Energy Supply Company • Option 2 - Seek to enter into a "White Label" agreement with an existing fully licensed energy supplier • Option 3 - Operating a Licence Lite Company • Option 4 - Buy a Stake in an Existing Supplier • Option 5 – Purchase a shell company that’s not traded yet but already set up.

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7. DUE DILIGENGE

7.1 A comprehensive Due Diligence exercise has been carried out by Camdor Global Avisors, Baringa and DAC Beachcroft Solicitors.

7. RISK ASSESSMENT

7.1 A risk assessment has taken place and full details can be found in the Part 2 report. The key risks of the project and mitigations are given in the table below:

High Level Risk Key Mitigation Business Model Detailed DD and sensitivities of all scenarios Detailed business model is including worst case independently inaccurate, leading to energy modelled by Camdor Global. In worst case company failure and financial scenario modelled no losses are incurred to loss to the Council the Council Due diligence carried out by Camdor Global Advisors and Baringa. Senior Management Long term contracts with penalties for early Key staff on the Management termination will be implemented. Executive leave the business. Together will have key person insurance.

Good succession planning Loss of BP Contract Together have excellent relationship with BP do not extend the supply BP. Council have met BP and if the Council contract when it expires. invest they wish to build a strong future partnership. BP would only withdraw if it became unprofitable for them to do so.

Other suppliers including the Council’s solar farms could also be future options. Inexperienced Board Industry Experts will form the majority of Board membership is not the Board. sufficiently experienced, resulting in poor strategic decisions Purchase and hedging Key experienced staff and strong strategy: governance, including hedging strategy, risk Risk that the business is management strategy. BP carry out overly exposed to wholesale hedging. market price changes Loss of Political Backing The Council like 50% of all other Councils Together is seen has a have declared an Emergency Climate minimum to longterm play Resolution which will take until 2030 to for the Council. Political implement. Green energy both locally, Support for the project could regionally and nationally will be a major change future policy objective.

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The Council have also consulted with the Green Energy Task Group Pricing strategy: Key experienced staff and robust cost Risk that tariffs are set at a forecasting linked to external analysis. 3 level which are not cost years successful operating experience reflective. Cultural Interface Part of contract to develop Warrington The cultural interface business. Warrington important market. between Together Energy Values are aligned particularly social values. and the council represents one of the greatest risks to Successfully operated this model with Wire what the Council wishes to Regeneration, Redwood Bank, Warrington achieve. Borough Transport and Birchwood Park. Customer acquisition and Sales and marketing model is flexible with retention: the ability to scale up and down. Risk that target growth does Development of customer insight through not align with business plan CRM. Key experienced marketing staff assumptions Reputation and customer Key experienced staff. Strong training for service: staff. Robust data capture processes. Risk that poor quality Investment will be prioritise in this area. industry and customer data Strong governance and monitoring systems leads to poor billing performance, customer complaints and reputational damage Settlements performance: Key experienced staff. Core settlements Risk that cash is tied up in management systems in place aligned to unbilled debt, whereby the regulatory performance standards. 14 month industry settlement performance process is not closely managed Debt performance: Direct Debit or Prepayment as standard. Cash is tied up in billed debt where customers fail to pay Key resource: Distinct culture and reward framework Risk that suitably skilled and developed which aligns with best in class experienced staff cannot be industry standards. attracted and retained Systems & Data Risk: Together have a reputation for first class Energy processes are systems and high quality staff complex and data heavy. Control of the data supporting regulatory compliance is critical through systems. Risk that system functionality, resilience and change management do not

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support business requirements and expose the business to financial risk Regulatory Risk: Appointment and management of expert Risk of non-compliance with partners, tracking of regulatory risk, regulatory obligations Regulation manager. Legal Challenge Comprehensive DD process with leading Risk of legal challenge / legal & financial advisors. Transparent auditor challenge/ member decision making process and strong of public challenge governance of decision making and on running on company. Early engagement with the auditors. Several other Local Authority Energy companies already in existence.

7.2 The risks associated with not purchasing Together Energy are:

• The savings target in the current MTFP would not be achieved. Thus generating a budget pressure a unique opportunity would have been lost. • Unable to deliver many of the strategic objectives that would be delivered by an energy company. • Delay the full early delivery of the Council’s Emergency Climate Declaration • Loss of Warrington jobs and training opportunities • Loss of Estates income with Together Energy planning to locate in the Base

8. LEGAL IMPLICATIONS

8.1 DAC Beachcroft Solicitors have advised the Council and their findings are in the Part 2 report.

8. FINANCIAL IMPLICATIONS

8.1 The financial implications can be found in the part 2 report.

9. GOVERNANCE ARRANGEMENTS

9.1 It is proposed that the Board will be made up of eight people consisting of the following:

• Chairman and two non-execs (to be approved by CEO, with final approval with Warrington) • Executive positions: CEO, Finance Director and Operations Director • Council will have two positions on the Board

11.2 The scheme will be will be monitored by the Capital Investment Planning Group (CIPG) and regular updates will go to Cabinet as part of the quarterly Capital Programme reporting. The Green Energy Project Group and Green Energy Task Group will also monitor the performance of the company.

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10. EQUALITY AND DIVERSITY / EQUALITY IMPACT ASSESSMENT

10.1 Together Energy will be fully compliant.

11. CONSULTATION

11.1 Internal consultation with Portfolio holders, the Leader, Corporate Loans Group, Treasury Management Board, Corporate Services Departmental Management Team, and Strategic Management Team, Green Energy Project Group has taken place together with the Green Energy Task Group, Capital Investment Planning Group and OBB.

12. REASONS FOR RECOMMENDATION

12.1 For the Council to enter the energy supply market to relieve fuel poverty in Warrington and to develop a commercial model that generates a positive financial return to the Council that can be reinvested in front line services.

13. RECOMMENDATION

13.1 The Cabinet is recommended to:

(i) Approve the Council’s acquisition of a 50% equity share in Together Energy Limited and, subject to section 14.4 and 14.5 of the Part 2 report, delegate the authority to agree the exact terms of the acquisition to the s.151 Officer (Director of Corporate Services) and Monitoring Officer (Head of Legal and Democratic Services) in consultation with the Deputy Leader and portfolio holder for Environment and Public Health.

(ii) Approve the Council granting the loan to Together Energy Limited as set out at sections 7.7, 7.8 and 10.2 of the Part 2 report and to delegate the authority to agree the exact terms of the acquisition to the s.151 Officer (Director of Corporate Services) and Monitoring Officer (Head of Legal and Democratic Services) following consultation with the Deputy Leader and Cabinet Member, Environment and Public Protection and subject to sections 14.4 and 14.5 of the Part 2 report.

(iii) Note the proposed governance arrangements and, subject to section 14.4 and 14.5 of the Part 2 report, delegate the authority to appoint the Council’s proposed Board Directors to the s.151 Officer (Director of Corporate Services) and Monitoring Officer (Head of Legal and Democratic Services) in consultation with the Deputy Leader and portfolio holder for Environment and Public Health.

(iv) Approve establishing insurance for the provision of indemnity cover for any decisions made by Council officers when acting as Board Directors and that the Council indemnifies officers.

(v) Authorise the Head of Legal and Democratic Services (Monitoring Officer) to enter into all necessary documents to complete all aspects of the matter in accordance with the above delegations and the proposals contained in the Part 2 report.

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14. BACKGROUND PAPERS

Together Energy DD File.

Contacts for Background Papers:

Name E-mail Telephone Danny Mather [email protected] 01925 44 2344

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