7 September 2017 at 6.00 P.M

South Tyneside Council You are hereby summoned to attend a meeting of the South Tyneside Metropolitan Borough Council to be held on Thursday, 7 September 2017 at 6.00 p.m. in the Town Hall, South Shields, for the transaction of the business indicated below:

Agenda

1. Declarations of Interest

2. Minutes of the meeting of the Council 27 July Pages 1 - 6 2017

3. Mayor’s Announcements or Communications

4. To consider a report of the Head of Pensions Pages 7 - 16 on the Treasury Management Annual report

5. To consider a report of the Overview and Pages 17 - 28 Scrutiny Call-In Committee on the establishment of a Northumberland, Tyne and Wear and North Durham Sustainability and Transformation Plan Joint Health Scrutiny Committee

6. In accordance with Council Procedure Rule 8 to deal with questions (if any) in the following order:

• Questions from members of the Public • Questions from Elected Members • Questions from Elected Members to Representatives of the Police, Integrated Transport and Fire Authorities

Contact Officer, Hazel Breeze, Strategy and Democracy Support Officer – tel. 424 7259

South Tyneside Council 7 September 2017

7. In accordance with Council Procedure Rule 9 to deal with the following 3 petitions:

• Petition against the exploitation and use of Camels in the South Shields “Winter Wonderland” parade. • Petition to end the use of Camels in South Tyneside’s winter wonderland parade. • Petition to cease using animals for entertainment

8. In accordance with Council Procedure Rule 10 to consider the following Notice of Motion:

South Tyneside Council notes that:

• NJC basic pay has fallen by 21% since 2010 in real terms • NJC workers had a three-year pay freeze from 2010-2012 • Local terms and conditions of many NJC employees have also been cut, impacting on their overall earnings • NJC pay is the lowest in the public sector • Job evaluated pay structures are being squeezed and distorted by bottom loaded NJC pay settlements needed to reflect the increased National Living Wage and the Foundation Living Wage • There are growing equal and fair pay risks resulting from this situation

This council therefore supports the NJC pay claim for 2018, submitted by UNISON, GMB and Unite on behalf of council and school workers and calls for the immediate end of public sector pay restraint. NJC pay cannot be allowed to fall further behind other parts of the public sector. This council also welcomes the joint review of the NJC pay spine to remedy the turbulence caused by bottom-loaded pay settlements.

This council also notes the drastic ongoing cuts to local government funding and calls on the Government to provide additional funding to fund a decent pay rise for NJC employees and the pay spine review.

This council therefore resolves to:

• Call immediately on the LGA to make urgent representations to Government to fund the NJC claim and the pay spine review and notify us of their action in this regard • Write to the Prime Minister and Chancellor supporting the NJC pay claim and seeking additional funding to fund a decent pay rise and the pay spine review • Meet with local NJC union representatives to convey support for the pay claim and the pay spine review.

South Tyneside Council 7 September 2017

Signed

Councillor Cunningham Kerr M Smith Welsh Hetherington Dick

Martin Swales Chief Executive

Borough Council 7 September 2017

Borough Council Minutes 27 July 2017

Present: The Mayor (Punchion) Councillors Amar, Anglin, Atkinson, Bell, Boyack, Brady, Clare, Cunningham, Dick, Dix, Donaldson, Ellison, Flynn, Foreman, Gibson, Hetherington, Hobson, Hughes, Huntley, Kerr, Kilgour, Leask, E. Malcolm, I. Malcolm, K Maxwell, N Maxwell, NE Maxwell, McCabe, McHugh, Meling, Peacock, Perry, Porthouse, Purvis, Sewell, A. Smith, M. Smith, K. Stephenson, S. Stephenson, Strike, Traynor, Welsh, West and Wood 45

Absent: Councillors Dixon, Duncan, Hay, Keegan, McMillan, Proudlock, Townsley, A. Walsh and M. Walsh 9

The Mayor reminded the public that the meeting was being recorded.

Former Councillor Cathy Brown and Mr Bill Darling

The Council stood in silence as a mark of respect to former Councillor Cathy Brown and Mr Bill Darling.

1. Declarations of Interest

No declarations of interest were made.

2. Minutes of the Council meeting 15 June 2017

The minutes of the meeting of the Council held on 15 June 2017 were confirmed as a correct record.

Borough Council 27 July 2017

3. Presentation by Northumbria Police and Crime Commissioner, Dame Vera Baird and Chief Constable Steve Ashman, Northumbria Police

The Mayor welcomed the Police and Crime Commissioner, Dame Vera Baird and Chief Constable Steve Ashman, Northumbria Police to the meeting. Dame Vera informed the Council that it was a great privilege to be invited to the Council meeting. She invited Chief Constable Steve Ashman to give an update on the salient police matters. Chief Constable Ashman thanked the Council for receiving him. He proceeded to outline the key challenges ahead for the police in terms of delivering services.

He advised that due to budget cuts and in order to prevent the further loss of police officer posts (30 posts), the front desk at Milbank headquarters was now closed from 8pm (saving of £1.4m closing front offices). This was in line with similar sized police services across the country. However, he reassured both the Members and members of the public that police officers were available at Milbank at all times to assist with any issues.

It was reported that following the recent terrorist attacks in Manchester and London, there was a greater police presence patrolling the streets of South Tyneside to reassure the public. Police attendance at significant events had also been increased and included armed police.

Chief Constable Ashman paid tribute to the police officers and expressed his appreciation on the feedback received from members of the public.

He referred to a recent visit by the Minister for Policing, at which both he and the Police Crime Commissioner had explained that further cuts would impact on the effectiveness of the police service.

There then followed a question and answer session by Members.

The Police Crime and Commissioner added that she valued the partnership with the Community Safety Team, the Leader of the Council and those Members appointed to the Northumbria Police and Crime Panel.

The Leader of the Council thanked Dame Vera and Chief Constable Ashman and noted the concerns of both the Chief Constable and the Police and Crime Commissioner on the impact of cuts to the service. He thanked the police for their attendance at the Community Forums. He informed the Chief Constable that both he and the Mayor had met with the parents of Chloe Rutherford and Liam Curry, who were very appreciative of the work of the police.

Councillor Kilgour moved a vote of thanks to Dame Vera Baird and Northumbria Police for their continuing work.

Borough Council 27 July 2017

The Mayor thanked both the Police and Crime Commissioner and Chief Constable Ashman for their update.

Members were invited to attend a Civic Reception at rising of the meeting, in honour of Dame Vera’s appointment as a Dame Commander of the Order of the British Empire.

4. Mayor’s Announcements or Communications

The Mayor congratulated the Leader of the Council on receiving the Honorary Award of the Doctor Winterbottom Fellowship from South Tyneside College.

The Mayor received two Awards on behalf of the Council. Members were informed that the Council’s Website had won the ‘Better Connected’ awards by the independent public sector association SOCTIM (the Society of Information Technology Management), in the categories of Best Metropolitan District Website and Best Metropolitan Mobile Website.

5. Update on the Information, Communication & Technology and Digital Programme

Submitted: Report of the Finance Director

Councillor E Malcolm, Lead Member Resources and Innovation, introduced the report, which gave an update on how the Council’s Information, Communication & Technology (ICT) and Digital programme was supporting the 20 Year Vision “To be an outstanding place to live, invest and bring up families”.

Resolved: That the report be noted.

6. Questions received under Council Procedure Rule 8

One question had been submitted under this rule by Mr Thomson, a member of the public. Details of the question and response are set out in Annex 1 at the end of these minutes.

7. Petitions received under Council Procedure Rule 9

The Mayor received the following petitions:

• Petition to stop the closure of East Boldon Library (presented by Councillor Strike)’.

Borough Council 27 July 2017

• Petition opposed to the plan to close Whitburn Library (presented by Councillor Boyack)

• Petition requesting the removal of grass verges between 1-31 Ede Avenue as there is insufficient parking (presented by Councillor Dix).

After each petition was presented, the Mayor moved that it be referred to the appropriate officer.

The motion was seconded and agreed.

8. Motion received under Council Procedure Rule 10

The Mayor advised that one motion had been received under Council Procedure Rule 10.

Councillor Ellison moved the following motion:

“South Tyneside Council recognises that there is no place for religious or cultural divisions in society. As a politically led organisation, we believe that there must be tolerance of different faiths and beliefs.

We are a tolerant Borough and have far more in common than that which divides us.

South Tyneside Council resolves:

A) To adopt the International Holocaust Remembrance Alliance (IHRA) definition of anti-Semitism which reads:

“Antisemitism is a certain perception of Jews, which may be expressed as hatred toward Jews, Rhetorical and physical manifestations of antisemitism are directed towards Jewish or non-Jewish individuals and/or their property, toward Jewish community institutions and religious facilities”;

B) Continue to support and celebrate the cultural and religious differences within our communities; and

C) Working with other partners and stakeholders, take a zero tolerance approach to religious and cultural discrimination within our communities.

Borough Council 27 July 2017

Signed:

Councillor Ellison Meling Huntley Porthouse Flynn Kilgour

Councillor Meling seconded the motion.

The motion was agreed.

Borough Council 27 July 2017

ANNEX 1

QUESTIONS ARISING FROM THE MEETING OF THE COUNCIL 27 JULY 2017

Questions under Council Procedure Rule 8

Question from Mr Thomson

"With respect to the library consultation; although the statutory minimum consultation length is 3 months, it is considered best practice if that consultation period spans the Christmas or summer holidays, to extend that period to enable those studying and working in educational establishments a reasonable opportunity to have their say. Also given the technical issues some members of the public have found in responding to the consultation, would the council consider extending the consultation to 15th October to enable inclusiveness and fair representation from all demographics of the community?"

Response by the Mayor

The Mayor advised that a written response to the question would be provided by the Operations Director within 7 days of the meeting.

6 Item 3 – Verbal - Mayor’s Announcements or Communications

7 8

Council Date: 7th September 2017

Treasury Management Annual Report 2016/17

Report of the Finance Director

Cabinet Portfolio/Lead Member: Resources and Innovation/Councillor E. Malcolm

Purpose of Report

1. The Finance Director is required to submit an annual report on Treasury Management activities to Council in order to comply with the Chartered Institute of Public Finance and Accountancy Code of Practice on Treasury Management.

2. This report covers the financial year 2016/17.

3. It is recommended that Council notes the report.

Contact Officer: Ian Bainbridge, Head of Pensions – Tel 424 4112 council council council council council council council 9 Treasury Management Annual Report 2016/17

Introduction

4. Treasury Management is the process by which the Council’s cash flow, investments and borrowing activities are managed.

5. The Council complies with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management.

6. This Code requires the Finance Director to submit an annual report on Treasury Management activities to Council.

7. In February 2017 CIPFA announced a review of the Code of Practice and asked for responses by the 21st April 2017. It is expected that a formal consultation on the code will carried out in the summer of 2017 with the new Code of Practice published in time for the 2018/19 financial year. This report covers the financial year 2016/17.

Economic Background

8. The UK economy continued its recovery through 2016/17, with a strong finish to 2016 but a weaker start to 2017. At the time of writing the economy is forecast to grow by 1.9% in 2017 and by the same rate in 2018 and 2019.

9. Inflation increased throughout the year from 0.5% to a high of 2.3% in February 2017. It is expected to rise further during 2017, possibly up to 3.0% before falling back closer to the Government’s target of 2.0%.

Interest Rates

10. Following the referendum decision to leave the European Union and concerns over a slowdown in growth, the Monetary Policy Committee (MPC) took the decision in August 2016 to reduce the Bank Rate to 0.25% from 0.5%. At the same time Quantitative Easing was increased by £70bn to £445bn.

11. The latest forecast from Capita Asset Services, the Council’s Treasury Management Advisor, suggests that the Bank Rate may not begin to rise from the current level until the end of 2018.

12. Investment rates started the year at 0.55% for three month deposits and 0.95% for one year deposits. Following the MPC decision to reduce the Bank Rate in August, three month rates fell to 0.25% and one year rates to 0.55%. Rates then broadly stayed broadly at the same level for the remainder of the year.

13. The Council’s main source of borrowing is the Public Works Loans Board (PWLB). The movement in rates over the year is shown below:

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10 Treasury Management Annual Report 2016/17

Period Rate at March 2016 Rate at March 2017 Difference

5 year 1.61% 1.24% -0.37%

25 years 3.21% 2.60% -0.61%

50 years 2.92% 2.34% -0.58%

14. The figures above include the rate reduction of 0.2%, known as the “certainty rate reduction”, which the Council has qualified for since its introduction in November 2012.

Capital Financing Requirement and the Consolidated Loans Fund

15. The Council’s borrowings to finance its capital schemes are pooled together into a Consolidated Loans Fund. Individual schemes are then financed out of this Fund.

16. The Fund started the year underfinanced by £55.9 million and ended the year at £46.5 million underfinanced.

17. The term “underfinanced” means that the value of capital schemes financed out of the Consolidated Loans Fund is greater than the total borrowing in place. The underfinancing is covered temporarily from the Council’s cash balances. It is shown in the table below as “Temporary Variable Rate Borrowing”.

18. This strategy was adopted because the interest rate earned on investments is below the rate paid on borrowing. In addition, it allows the Council to reduce its investments at a time when the Council is restricting its lending to institutions with a strong covenant.

19. The structure of the Consolidated Loans Fund at 31st March 2017 was:

£’m %

Variable Rate Borrowing 10.0 1.6

Temporary Variable Rate Borrowing 46.5 7.4

Total Variable Borrowing 56.5 9.0

Fixed Rate Borrowing 569.8 91.0

Capital Financing Requirement 626.3 100.0

20. The capital financing requirement from borrowing was £626.3 million at the year end.

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11 Treasury Management Annual Report 2016/17

21. New loans valued at £50 million were taken from the PWLB during 2016/17. These new loans were taken at times when rates were at historic lows. The loans were taken over periods in excess of 44 years and with rates ranging from 2.89% to 1.90%.

22. In addition, £2 million of short term borrowing was arranged to assist in cash flow management towards the end of the year.

23. Three PWLB loans totalling £14 million were repaid.

24. The interest charges to the General Fund and the Housing Revenue Account are governed by accounting regulations. A comparison of the outturn interest charges against the budgeted figures contained in the Treasury Management Strategy is shown below:

General Fund HRA Total Interest Interest Interest Payable Payable Payable £’m £’m £’m

Budget 11.209 12.668 23.877

Outturn 11.219 11.916 23.135

Saving 0.010 (0.752) (0.742)

25. The table shows that the outturn interest charge for the General Fund was marginally over budget but the Housing Revenue was below budget. Both benefited from the fact that the borrowing during the year was taken at rates lower than those budgeted for. For the General Fund this is largely offset by a combination of increases in the Capital Financing Requirement since the budget was set and additional borrowing being arranged to take advantage of the extremely attractive low rates available. Whilst there is a short term cost to this strategy, this should have longer term benefits.

26. The activity on the Consolidated Loans Fund is summarised in an appendix.

Management of Cash Balances

27. As well as managing its own cash balances, the Council manages those of the Tyne and Wear Pension Fund and South Tyneside Homes. As at 31st March 2017, £13.99 million of Council cash, £56.25 million of Pension Fund cash and £7.13 million of South Tyneside Homes’ cash was being managed in house.

28. The Council earned an average rate of 0.81% on its cash during 2016/17, which was below the return of 0.85% assumed in the budget. Gross interest \\stc.local\legacy\nas5\committee admin\committees\s t council\reports\2017\7 sept 2017\tm annual report 2016-17 - council.doc 7th September 2017

12 Treasury Management Annual Report 2016/17

of £0.326 million was earned, which was £0.014 million below the budget figure of £0.340 million. Whilst this income return is slightly below budget, this is considered reasonable given that the Monetary Policy Committee cut the Bank Rate in August 2016.

29. For performance measurement purposes, the return achieved is compared against the money market seven day rate and the three month rate. The rates of return are shown below:

Council return for the year 0.81 Pension Fund return 0.29

Seven day market rate 0.33 Three month market rate 0.44 30. The Council returns were ahead of the seven day and three month rates.

31. The Pension Fund return was below both the seven day and three month rate. A higher return was not achieved because the balances are generally held for short periods which attract low returns.

32. The average return on the South Tyneside Homes cash is not calculated in detail because the low level of balances leads to limited investment opportunities and a very low return.

33. The Council subscribes to a benchmarking club run by Capita Asset Services, its Treasury Management Advisor. The analysis examines the investment portfolio at quarter end dates and compares the investment return and risk being taken against the position at other councils.

34. The return being achieved based on the investment held at each quarter end, compared to the Capita Asset Services benchmarking data is shown below;

Q1 Q2 Q3 Q4

% % % %

Council average return 0.80 0.71 0.70 0.67

Met. Districts average return 0.73 0.71 0.52 0.45

All Councils average return 0.72 0.62 0.55 0.55

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13 Treasury Management Annual Report 2016/17

35. The Council’s returns have been compared against two groups, the Metropolitan District Councils and All Councils, within the benchmarking club. The Council’s return was above or equal to both the Metropolitan Districts and All Councils return for all quarters.

36. The benchmarking club also measures risk through the credit strength of the borrowers and the lending periods.

37. Capita Asset Services has concluded that the risk taken by the Council is relatively low and that the return achieved is above what should be expected in the light of the low risk profile. This is a positive outcome.

Credit Rating Methodology and Lending Lists

38. The organisations that the Council lends to, the periods for which it can lend and the maximum amounts to be invested with each organisation are set in consultation and agreement with Capita Asset Services.

39. In addition to applying the Capita Asset Services methodology, the Council forms its own view based on market information and the level of Government support for banks.

40. The Council’s lending list is reviewed on a weekly cycle, or more regularly if an organisation’s credit rating changes in the interim period.

41. Throughout 2016/17, the Council restricted lending to UK Institutions and overseas institutions that are domiciled in a country with AAA credit rating and which are included on the Capita Asset Services approved credit rating list with a lending period of 100 days or more.

42. There were no changes to the names of organisations on the lending list during the year although two did have their lending period reduced before returning to their previous position.

43. The Council and Pension Fund also invest in AAA rated money market funds. These funds are separate legal entities from the organisations that manage them and have the benefit of diversifying risk.

44. All the changes to the lending list have been made after consultation and in agreement with Capita Asset Services.

Leasing

45. The Council has previously financed the procurement of motor vehicles by way of operating leasing. No new leases were taken out for vehicles in 2016/17 and there was no liability outstanding at the year-end.

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14 Treasury Management Annual Report 2016/17

Other Credit Liabilities

46. The Council has two finance leases in the form of long-term property leases. At the end of 2016/17, these liabilities totalled £1.991 million.

47. The Council has liabilities of £108.68 million from contracts arranged through the Private Finance Initiative in relation to South Shields School, Boldon School, Jarrow School, Street Lighting, and the new Waste Facility. These liabilities are payable over the next 15-23 years and are accounted for within the Medium Term Financial Plan.

48. Ownership of all assets except for the Waste Facility on Teesside passes to the Council at the end of the contract period for no additional charge. Specific government funding is received which offsets, in part, the cost of these contracts.

Compliance with Treasury Management Prudential Limits

49. The Council has operated throughout the year within the Treasury Management Prudential Limits, as set out in the Annual Treasury Strategy Statement.

Financial and Value for Money Implications

50. This report summarises the Treasury Management activity for the year ended 31st March 2017. The financial implications of this activity are reflected in the Council’s Report and Accounts.

51. Overall, the service has been delivered broadly in line with the Budget.

Legal Implications

52. There are no legal implications arising from this report.

Risk Implications

53. There are no risk implications arising from this report.

54. Risk Management within the Treasury function requires the ongoing adjustment of debt and investment exposures to changing market, counterparty and regulatory conditions in order to help achieve the Council’s objectives.

Equality and Diversity Implications

55. An equality check was carried out in January 2017. No equality implications were identified.

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15 Treasury Management Annual Report 2016/17

Environmental and Sustainability Implications

56. No environmental and sustainability implications arise.

Options to be considered

57. No options have been submitted for consideration as this report is for information only.

Recommendation

58. It is recommended that Council note this report.

Reason for Recommendation

59. To comply with the Chartered Institute of Public Finance and Accountancy Code of Practice on Treasury Management in Public Services.

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16 Treasury Management Annual Report 2016/17

Appendix

Summary of Activity on the South Tyneside Consolidated Loans Fund

Internal Variable Rate Fixed Total Borrowing Debt Rate Debt £’m £’m £’m £’m

Brought Forward, 1st April 2016 * 55.9 10.0 531.8 597.7 Maturing Financing - - (14.0) (14.0) Financing Redeemed Early - - - - New Financing - - 52.0 52.0 Decrease in Internal Borrowing (9.4) - - (9.4) Closing Balance 31st March 2017* 46.5 10.0 569.8 626.3

* The opening and closing balances for fixed rate debt include £10.0 million of Lenders Option / Borrowers Option (LOBO) loans which can, strictly, be classified as variable rate loans. These loans give the lender the option of changing the interest rate at pre -determined dates. If this option is exercised, the borrower then has the option of repaying the loan. However, the loan structure and the current interest rate environment mean that, for practical purposes, these options are unlikely to be exercised. Therefore, they are classed as fixed rate loans.

Movement in the Capital Financing Requirement

The table below shows how the Capital Financing Requirement has changed during 2016/17. This reconciles to the Closing Balance on the Fund in the table above.

The figures exclude Private Finance Initiative projects and Leasing as these are not financed from borrowing.

£’m Opening Capital Financing Requirement 597.7 Capital Investment 53.6 Advance to Housing Ventures 9.5 Revenue Expenditure Funded from Capital (1.0) Government Grants and Contributions (13.9) Capital Receipts (4.8) Revenue Contributions and Major Repairs Allowance (11.7) Minimum Revenue Provision for Repayment (3.1) Closing Capital Financing Requirement 626.3

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17 background papers background papers background papers

Treasury Management Annual Report 2016/17

The following is a list of the background papers (excluding exempt papers) relied upon in the preparation of the above report:

Background Paper File Ref: File Location

Treasury Management Investment Office,

File 2016/17 South Shields Town Hall

Contact Officer: Ian Bainbridge – Head of Pensions – Tel 424 4112 background papers background papers background papers 18 This document has been classified as: Not Protectively Marked

Council Date: 7 September 2017

Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

Report of the Overview and Scrutiny Coordinating and Call-in Committee

Cabinet Portfolio/Lead Member: Cllr Alan Kerr, Deputy Leader

Purpose of this report

1. This report asks Council to agree to the establishment of a Joint Health Scrutiny Committee under the provisions of the Health and Social Care Act 2012 involving all local authorities affected by the Northumberland, Tyne and Wear and North Durham Sustainability and Transformation Plan and any associated service review proposals.

Contact Officer: Paul Baldasera, Strategy & Democracy Officer, ext 6002 council council council council council council council

19 Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

Introduction

2. Members will be aware of the work being undertaken by the South Tyneside and Sunderland Joint Health Scrutiny Committee with respect to consultation on the services reviews (Path to Excellence) which have arisen from the alliance formed between South Tyneside NHS Foundation Trust and City Hospitals Sunderland NHS Foundation Trust. Whilst this cover the vast majority of services provided to South Tyneside residents, the wider Northumberland, Tyne and Wear& North Durham STP will result in service changes to regional wide services not covered by the Path to Excellence work.

Sustainability and Transformation Plans

3. In December 2015, the NHS shared planning guidance 2016/17 – 2020/21 outlined a new approach to help ensure that health and care services were built around the needs of local populations. To do this, every health and care system in England, involving local organisations such as NHS providers, commissioners, and local authorities, were asked to produce a multi-year Sustainability and Transformation Plan (STP), showing how local services would evolve and become sustainable over the next five years – ultimately delivering the NHS Five Year Forward View vision of better health, better patient care and improved NHS efficiency.

4. South Tyneside is covered by the Northumberland, Tyne and Wear and North Durham STP.

5. NHS system leaders met to discuss how best to create these plans, reflecting on the work that has already been developed in a number of areas across the North East and Cumbria and the STP draft documents were submitted to NHS England in October 2016.

6. The draft STPs were published in November 2016.

7. Whilst the Path to Excellence consultation will cover all services provided by South Tyneside NHS Foundation Trust and City Hospitals Sunderland NHS Trust, the Northumberland, Tyne and Wear and North Durham STP covers the full range of service provided to residents including specialist services provided in Newcastle, Gateshead and other areas. It is therefore important that a framework for scrutinising the wider STP footprint is established. Legislation, referred to below, says that this must take the form of a Joint Health Scrutiny Committee involving all local authorities affected by proposed service changes.

2 20 Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee 8. The local authorities affected by the Northumberland, Tyne and Wear and North Durham STP have provisionally agreed to establish a joint Health Scrutiny Committee to oversee the development of the STP and any associated proposals for substantial development and variation to health services.

9. In accordance with the regulations detailed below, the new Joint Committee will be the vehicle through which the respective Local Authorities will respond to the consultation.

10. The protocol and terms of reference for the revised Joint Health Scrutiny Committee have been drafted by health scrutiny officers across the respective local authorities setting out the updated role and function of the joint Committee as well as the proposed representation required from each Council.

11. It is proposed that the Council appoint three representatives to the Northumberland, Tyne and Wear and North Durham Sustainability and Transformation Plan Joint Health Scrutiny Committee.

Provisions for consultation and engagement of Overview and Scrutiny Committees

12. The Local Authority (Public Health, Health and Wellbeing Board and Health Scrutiny) Regulations 2013 require the formation of a joint scrutiny arrangement, where an NHS body or relevant health service provider consults more than one local authority on proposals to make substantial variations or developments to services. They provide that all the local authorities whose residents receive such services must participate in the joint scrutiny arrangement for the purpose of responding to the consultation, using the method most appropriate to the areas and issues being considered.

13. A local authority can opt-out if, having considered the information provided by the NHS body or relevant health service provider proposing the service change, they determine that the proposal is not “substantial” for their residents. Where a local authority opts out in this way, they will relinquish the power to refer the proposed change to the Secretary of State for the purposes of that particular consultation.

14. Only the joint scrutiny committee may require the organisation proposing the change to provide information to them, or attend before them to answer questions. That organisation is under a duty to comply with these requirements. If a local authority has opted out of the joint arrangement, they may not request information or attendance from the NHS body or relevant health service provider proposing the change. Failure by an NHS body or

3 21 Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

relevant health service provider to provide information requested by a local authority who is not participating in the joint scrutiny process and who is therefore not entitled that that information does not constitute a failure to consult that authority and is therefore not a valid reason for a referral to be made to Secretary of State.

15. They may not participate further in the joint scrutiny arrangements, unless changes occur during the development of proposals that make the impact substantial for residents in the local authority’s area. The local authority, in these cases, should not expect to revisit any matters that the joint committee has already considered.

16. In scrutinising the proposals, the joint committee should aim to consider the proposal from the perspectives of all those affected or potentially affected by that proposal. The provisions of co-option set out above apply, enabling the involvement of district councils in the scrutiny process.

17. Only the joint scrutiny arrangement can then make a report and recommendations back to the organisation proposing the change. The power to refer to Secretary of State should only be exercised once the NHS body or relevant health service provider proposing the service change has responded to the comments of the joint scrutiny committee and all forms of local resolution have been exhausted. However, it can be exercised by any of local authorities originally consulted or by the joint arrangement where the power to refer has been delegated to it.

Financial and Value for Money Implications

18. There are no immediate financial implications for the Council. However, failure to make service changes will result in financial risk to the two NHS Trusts.

Legal Implications

19. Regulation 30 of the Local Authority (Public Health, Health and Wellbeing Boards and Health Scrutiny) Regulations 2013 requires local authorities to appoint joint committees where a relevant NHS body or health service provider consults more than one local authority’s health scrutiny function about substantial reconfiguration proposals (referred to as a mandatory joint health scrutiny committee).

Risk and Opportunities Implications

20. The establishment of this Health Scrutiny Joint Committee provides a dedicated Committee to ensure that service changes affecting South Tyneside residents are thoroughly scrutinised to ensure that future services meet health needs.

4 22 Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

21. Failure to scrutinise changes may result in decisions made that do not fully reflect the needs of residents.

Equality and Diversity Implications

22. There are no Equality and Diversity implications from establishing the Joint Health Scrutiny Committee.

Environmental and Sustainability Implications

23. There are no Environmental and Sustainability implications from establishing the Joint Health Scrutiny Committee.

Recommendations 24. The Council are asked to:

(a) Agree to the establishment of a Northumberland, Tyne and Wear and North Durham Joint Health Overview and Scrutiny Committee under the terms of the Health and Social Care Act 2012 as set out in this report.

(b) Formally adopt the proposed protocol, Terms of Reference and membership of the Joint Health Scrutiny Committee to scrutinise the Northumberland, Tyne and Wear and North Durham STP and associated consultation and engagement plans.

Reason for Recommendations

25. To comply with the Local Authority (Public Health, Health and Wellbeing Board and Health Scrutiny) Regulations 2013.

5 23 Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

Protocol for a Joint Health Scrutiny Committee

Northumberland, Tyne and Wear and North Durham STP

1. This protocol provides a framework under the Local Authority (Public Health, Health and Wellbeing Boards and Public Health) Regulations 2013 for considering and providing a formal consultation response in relation to the Northumberland, Tyne and Wear and North Durham Sustainability and Transformation Plan and any associated proposals for substantial development and variation to health services contained therein or resulting therefrom. The proposals affect the Northumberland CCG, Tyne and Wear CCGs and the North Durham CCG area of County Durham. They are being proposed by the following:

- Newcastle Gateshead CCG - North Durham CCG - North Tyneside CCG - Northumberland CCG - South Tyneside CCG - Sunderland CCG

2. The terms of reference of the Joint Health Scrutiny Committee is set out at Appendix 1.

3. A Joint Health Scrutiny Committee (“the Joint Committee”) comprising Durham County Council; Gateshead BC; Newcastle-upon-Tyne City Council; North Tyneside BC; Northumberland County Council; South Tyneside BC and Sunderland City Council (“the constituent authorities”) is to be established in accordance with the Regulations for the purposes of formal consultation by the relevant NHS Bodies in relation to the matters referred to at paragraphs 1. In particular in order to be able to:-

(a) respond to the draft STP consultation and any associated proposals for substantial development and variation to health services contained therein or resulting therefrom;

(b) require the relevant NHS Bodies to provide information about the proposals;

(c) require members/employees of the relevant NHS Bodies to attend before it to answer questions in connection with the consultation.

4. The Joint Committee formed for the purpose of the consultation outlined at paragraph 1 will, following approval of this protocol and terms of reference at its first meeting, circulate copies of the same to:-

Local Authorities

Durham County Council; Gateshead BC; Newcastle-upon-Tyne City Council; North Tyneside BC; Northumberland County Council; South Tyneside BC and Sunderland City Council;

6 24 Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

Clinical Commissioning Groups

Newcastle Gateshead CCG North Durham CCG North Tyneside CCG Northumberland CCG South Tyneside CCG Sunderland CCG

NHS Foundation Trusts

City Hospitals Sunderland NHS Foundation Trust County Durham and Darlington NHS Foundation Trust Gateshead Health NHS Foundation Trust Newcastle-upon-Tyne NHS Foundation Trust Northumbria Healthcare NHS Foundation Trust South Tyneside NHS Foundation Trust Northumberland, Tyne and Wear NHS Foundation Trust Tees, Esk and Wear Valleys NHS Foundation Trust North East Ambulance Foundation Trust

Membership

5. The Joint Committee will consist of equal representation, with three representatives to be appointed by each of the constituent authorities.

6. The term of office for representatives will be for the period from the date of their appointment by their constituent authorities until their relevant authority’s next annual council meeting. If a representative ceases to be a Councillor, or wishes to resign from the Joint Committee, the relevant council shall inform the joint committee secretariat and the replacement representative shall serve for the remainder of the original representative’s term of office.

7. To ensure that the operation of the Joint Committee is consistent with the Constitutions of all the constituent authorities, those authorities operating a substitution system shall be entitled to nominate substitutes.

8. The Joint Committee may ask individuals to assist it (in a non-voting capacity) and may ask independent professionals to advise it for the purposes of the consultation process.

9. The quorum for meetings of the Joint Committee shall be a minimum of one member representative from each of the constituent authorities.

Chair and Vice-Chair

10. For the purposes of the consideration of the Sustainability and Transformation Plan (Draft and Final) the Chair of the Joint Committee will be a Member representative from [XXXX] and the Vice-Chair will be a Member representative from [XXXX]. The Chair will not have a second or casting vote.

7 25 Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

11. If the agreed Chair and Vice-Chair are absent from a meeting, the Joint Committee shall appoint a member to chair that meeting from the representatives present who are members of the same constituent Council as the Chair.

12. For the purposes of the consideration any proposals for substantial development and variation to health services contained withinin or resulting from the Sustainability and Transformation Plan (Draft and Final), the Committee will be chaired from one of the affected local authority areas.

Terms of Reference

12. The Joint Committee will be the formal consultee under the Regulations and the Directions for the purposes of the consultation by the relevant NHS Bodies concerning those matters outlined at paragraphs 1. Terms of reference are set out at Appendix 1.

Administration

13. Meetings shall be held at the times, dates and places determined by the Chair in consultation with each of the constituent authorities.

14. Agendas for meetings shall be determined by the secretariat in consultation with the Chair.

15. Notice of meetings of the Joint Committee will be sent to each member of the Joint Committee at least 5 clear working days before the date of the meeting and also to the Chair of the constituent authorities’ relevant overview and scrutiny committees (for information). Notices of meetings will include the agenda and papers for meetings. Papers “to follow” should be avoided where possible.

16. Minutes of meetings will be supplied to each member of the Joint Committee and to the Chairs of the constituent authorities’ relevant overview and scrutiny committees (for information) and shall be confirmed at the next meeting of the Joint Committee.

Final Report and Consultation Response

17. The relevant NHS body are required to notify the Joint Committee of the date by which its consultation response is required, and the date by which it intends to make a decision. The Guidance highlights that it is sensible for the Joint Committee to be able to consider the outcome of public consultation before its makes its consultation response.

17. The Joint Committee is independent of its constituent councils, executives and political groups and this independence should not be compromised by any member, officer or relevant NHS bodies. The Joint Committee will send copies of its final report and formal consultation response to the relevant NHS Bodies and the constituent authorities.

8 26 Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

18. The primary objectives of the Joint Committee will be to reach consensus, but where there are any aspects of the consultation as regards which there is no consensus, the Joint Committee’s final report and formal consultation response will include, in full, the views of all of the constituent authorities, with the specific reasons for those views, regarding those areas where there is no consensus, as well as the constituent authorities’ views in relation to those matters where there is a consensus.

Following the Consultation

19. Any next steps following the initial consultation response will be taken with due reference to the ‘Local Authority Health Scrutiny: Guidance to support Local Authorities and their partners to deliver effective health scrutiny’ (Department of Health; June 2014).

Principles for joint health scrutiny

20. In scrutinising the proposals, the joint committee will aim to consider the proposal from the perspectives of all those affected or potentially affected by that proposal.

21. The constituent authorities and the relevant NHS Bodies will be willing to share knowledge, respond to requests for information and carry out their duties in an atmosphere of courtesy and respect in accordance with their codes of conduct. Personal and prejudicial and/or disclosable pecuniary interests will be declared in all cases in accordance with the code of conduct and Localism Act 2011.

22. The Joint Committee’s procedures will be open and transparent in accordance with the Local Government Act 1972 and the Access to Information Act 1985 and meetings will be held in public. Only information that is expressly defined in regulations to be confidential or exempt from publication will be able to be considered in private. Papers of the Joint Committee may be posted on the websites of the constituent authorities as determined by them.

23. Communication with the media in connection with the Joint Committee’s views will be handled in conjunction with each of the constituent local authorities’ press officers.

9 27 Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

Joint Health Scrutiny Committee

Northumberland, Tyne and Wear and North Durham STP

Terms of Reference

1. To consider the Northumberland, Tyne and Wear and North Durham Sustainability and Transformation Plan (hereafter called STP)

2. To consider proposals for substantial development and variation to health services as contained in and/ or developed from the STP and as proposed by the following:

- Newcastle Gateshead CCG - North Durham CCG - North Tyneside CCG - Northumberland CCG - South Tyneside CCG - Sunderland CCG

3. To consider the following in advance of the formal public consultation:

- The aims and objectives of the STP; - The plans and proposals for public and stakeholder consultation and engagement; - Any options for service change identified as part of the STP including those considerations made as part of any associated options appraisal process.

4. To consider the STP’s substantive proposals during the period of formal public consultation, and produce a formal consultation response, in accordance with the protocol for the Joint Health Scrutiny Committee and the consultation timetable established by the relevant NHS Bodies.

5. In order to be able to formulate and provide views to the relevant NHS bodies on the matters outlined above, the Joint Committee may:-

a) require the relevant NHS Bodies to provide information about the proposals the subject of the consultation with the constituent local authorities and the Joint Committee; and

b) require an officer of the relevant NHS Bodies to attend meetings of the Joint Committee, in order to answer such questions as appear to them to be necessary for the discharge of their functions in connection with the consultation.

6. To ensure the formal consultation response of the Joint Committee includes, in full, the views of all of the constituent authorities, with the specific reasons for those views, regarding those areas where there is no consensus, as well as the constituent authorities’ views in relation to those matters where there is a consensus.

10 28 Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

7. To oversee the implementation of any proposed service changes agreed as part of the STP process.

8. The Joint Committee does not have the power of referral to the Secretary of State.

11 29 background papers background papers background papers

Establishment of a Northumberland, Tyne and Wear and North Durham STP Joint Health Scrutiny Committee

The following is a list of the background papers (excluding exempt papers) relied upon in the preparation of the above report:

Background Paper File Ref: File Location Local Authority Scrutiny Guidance: Guidance to support Local DoH 2014 Authorities and their partners to deliver effective health scrutiny.

Contact Officer:

background papers background papers background papers 30 Item 6 – In accordance with Council Procedure Rule 8 to deal with questions (if any).

31 32 Item 7 – In accordance with Council Procedure Rule 9 to deal with petitions Petitions Received

33 34

ITEM 8 - MOTION TO SOUTH TYNESIDE COUNCIL

In accordance with Council Procedure Rule 10 to consider the following Notice of Motion:

South Tyneside Council notes that:

This council therefore resolves to:

Signed

Councillor Cunningham Kerr M Smith Welsh Hetherington Dick