To agree to enter into a grant funding agreement with the Ministry of Housing, Communities and Local Government (MHCLG) to deliver the £3.0m Marches Business Investment Programme (MBIP).

An application for £3.43m has been submitted to MHCLG to deliver a capital grants programme across the Marches to support SMEs with growth and job creation.  £2.2m of this will be made available as grants to SMEs to facilitate growth and expansion.  Grants will part fund new commercial builds, extensions, reconfigurations and refurbishments of existing premises along with equipment purchases within the newly created space.  In addition, £800k will be made available to SMEs to help with small equipment purchases.  MBIP will also support SMEs to bring redundant buildings back into economic use, with the added benefit of improving the commercial stock within the Marches area.

If approval is given, Herefordshire Council will act as accountable body for the scheme, providing grants to SMEs of no more than 50% of total project costs.  Herefordshire Council will forward fund payments to SMEs of no more than £500,000 in total (per quarter) until European Regional Development Fund (ERDF) payments are received.

That:

(a)       the council enters into a funding agreement with MHCLG to deliver the £3.43m Marches Business  Investment Programme across Herefordshire, Shropshire and Telford & Wrekin Council areas, acting as accountable body for the programme; and

(b)       the council provide forward funding grant payments to SMEs of up to £150k per grant claimant with a maximum of £500k advance payments at any one time, pending receipt of funds from MHCLG; and

(c)        the Acting Director of Economy and Place be authorised to sign the MHCLG funding agreement to Herefordshire Council and approve any variations to the programme requested by the Programme Team; and

(d)       the Head of Economic Development be authorised to sign all sub grant agreements to businesses and take day to day operational decisions, including variations to any sub grant agreements.

To review the Dedicated Schools Grant high needs budget for 2019/20 and recommend to the cabinet member children and families any necessary adjustments in the Pupil Referral Service charges to schools and SEN support services to schools.

The report sets out the expected financial position for Herefordshire high needs budgets and expenditure for the three years from 2019/20. Dedicated Schools Grant (DSG) for 2020/21 onwards will be determined by government following the Comprehensive Spending Review. This report recommends a number of actions to ensure that the high needs funding allocation is spent as effectively as possible whilst recognising the absolute duty to ensure that pupils’ needs are met as required by Section 42 of the Children and Families Act 2014. The views of schools forum have been sought on the proposed budget plan prior to seeking cabinet member approval. The available high needs budget for 2019/20 will be set at £13.4m after deductions passported directly to academies and post-16 providers by the Education and Skills Funding Agency. This allows for flexibility to meet additional unexpected costs and a prudent increase in DSG balances in the short term. 

That:

(a)        the Pupil Referral Unit be funded as set out below

(i)            80 places for the period April 2019 to August 2019 comprising 50 places for permanently excluded pupils and 30 discretionary managed move/ intervention places

(ii)          50 places for new and existing permanently excluded pupils for the period September 2019 to March 2020 and thereafter 50 places annually

(iii)         15 places for discretionary managed move/intervention for existing pupils for the  period September 2019 to August 2020

(iv)         15 discretionary intervention places  for new pupils to be charged at cost to the school purchasing the place until August 2020 and thereafter 30 discretionary places annually to be charged at cost to the school purchasing the place

(v)          savings on a phased basis of £30,000 in 2019/20, a further £100,000 in 2020/21 and a final £70,000 in 2021/22 be approved

(vi)         An intervention fund be approved on a phased basis of £50,000 from September 2019 in 2019/20, £125,000 in 2020/21 and £175,000 in 2021/22 for use by the In-year fair access panel, or similar, to support schools with meeting the needs of students following consultation with the Herefordshire Association of Secondary Headteachers (HASH)

(vii)        An increase of £1,000 in the PRU top-up fee to £6,700 for all students from September 2019

(b)       budget efficiencies and increased charges to schools in the SEN support services to a total of £110,000 be approved from April 2019, a further budget efficiency of £40,000 from April 2020 and a final budget efficiency of £50,000 in April 2021;

(c)       an income budget of £100,000 be set for the high needs contingency in expectation of an equivalent saving in Complex Need  Funding for 2019/20; and

(d)       the high needs budget including the amendments as above be approved as set out in Appendix 1

To approve a loan from school balances of £60,000 to Staunton-on-Wye Primary School for a new permanent classroom annex in accordance with the council’s scheme for financing schools. The school loan scheme provides a valuable way of enhancing school buildings without using the council’s limited capital budgets.

That:

(a)       A capital loan of £60,000 to Staunton-on-Wye Primary School be approved at 0% interest, repayable at £7,500 per year from April 2020 for 8 annual instalments for a new permanent classroom annex.

To agree the property services planned and reactive maintenance programme 2019/20 to ensure the continuing upkeep, improvements and maintenance of the council’s property assets and also to allow the council to fulfil its obligations to carry out statutory compliance inspections and related remedial works.

The maintenance budget of £2.438m is to be spent on the continuing upkeep and maintenance of the council’s 270 key property assets and also to allow the council to fulfil its obligations to carry out 47 various types of statutory compliance checks and best practice inspections so as to maintain a safe environment for the users of the buildings and the upkeep of the property.

That:

(a)       the 2019/20 cleaning, planned and reactive maintenance budget of  £2.438m be allocated as follows and as set out in appendix B:

·               £679,200 on cleaning;

·               £176,820 on statutory compliance inspections; 

·               £354,800 on cyclical planned and reactive maintenance;

(b)       the assistant director for technical services be authorised to take all operational decisions necessary to implement the above recommendation and spend within the approved budgets.

To approve the Marches LEP Strategic Economic Plan 2019 for publication.

THAT:

(a)   the Marches Local Enterprise Partnership Strategic Economic Plan at Appendix 1 be approved; and

(b)   The LEP Director be authorised to make typographical and formatting changes to the document before publication.

To confirm the 2019/2020 programme of work within the approved funding allocation and spending the additional grant of £150k received in 2018/19.

On 15 February 2019 Council approved the revised capital programme. This included provision of £3.5m in 2019/2020 for the Hereford Transport Package. This report recommends approval to spend this budget in accordance with the feasibility case which supported the Hereford Transport Package capital bid and is contained in Appendix 1 of this report.

That:

(a)          the Director for Economy and Place is authorised to take all necessary steps to progress detailed design and consultation including commissioning external professional advisors to inform future decisions on the Hereford Transport Package to a maximum further cost of £3.65m to deliver:

Completion of detailed design of the bypass to a standard for a planning application in accordance with an agreed costed programme.

To approve the conversion of the Council's remaining street lighting and public lighting to LED on an invest to save basis.

In 2018/19 approximately 180 lights were added to the council’s street lighting inventory from new highway adoptions and through the consolidation of all public lighting into the public realm service.

As these lights are additional to the initial LED street lighting project, this report seeks approval to utilise the underspend in the pre-approved capital budget for LED street lighting to convert the remaining public street lighting to LEDs on an invest to save basis at a cost of £81k.

That:

(a)       All remaining street lights and public lighting are upgraded to LEDs at a cost of no more than £81k; and

(b)       the energy & active travel manager be authorised to take all operational decisions necessary to implement the above recommendations within the approved budget, utilising the council’s public realm contractor.

To consider and decide upon objections to permit parking proposals for Geoffrey Avenue and Lingen Avenue (part), for which a council decision was deferred, as part of the 26 September 2018 decision for the Hereford City Centre Improvements - Residents Parking Order 2017.

As part of this Order, Zone 15 in College Ward was extended into roads neighbouring Geoffrey Avenue and the western section of Lingen Avenue on 5 November 2018 (see TRO Plan at Appendix 2).

Given objections from residents, it was considered appropriate to defer a decision on the inclusion of Geoffrey Avenue and the northern section of Lingen Avenue.  A survey of residents’ views in January 2019 has been conducted following implementation of the surrounding areas to assist the council in deciding this matter.

That:

the introduction of permit parking restrictions in Geoffrey Avenue and the northern section of Lingen Avenue, with a revised 2 hour waiting limit (see Appendix 2) to take effect from the 1 April 2019 is approved.

To approve the Stage 1 submission, and authorise progression into Stage 2 of the development and regeneration programme the development of housing on the former depot and grazing land off Hereford Road, Bromyard (the Bromyard site).

In 2016 Cabinet approved the commissioning of a developer to progress the development of suitable sites in its ownership through a Development and Regeneration Programme (DRP).

The Bromyard site was identified during the procurement of the DRP as a priority project. The site was used as part of the procurement to assess the price elements of the bidders’ final tenders based on a residential development for open market sale.

On 14 December 2017 Cabinet resolved as part of a decision to approve the mobilisation of the DRP that, subject to satisfactory completion of contractual arrangements, the appointed development partner be requested to develop within 3 months of the formal request being made, a stage 1 submission, including a business case and estimated timescales for delivering housing on the Bromyard site

On 24 September 2018 the Programme Director Housing and Growth authorised the issue of a request to Keepmoat Homes, which specified the council’s requirements for a residential development of up to 50 residential units of which 40% will be affordable; these requirements are capable of being further refined as the project moves forward.

On 5 February 2019 planning permission P182239/CD4 was granted for the Bromyard site permitting the  demolition of existing buildings, structures and hardstanding on the site and the erection of 45 dwellings (including affordable housing) and drainage attenuation, open space and associated landscaping and infrastructure works on the Bromyard site.

That:

(a)  the council approves the Stage 1 Submission (appendix 1) for the Bromyard site, provided by Keepmoat Homes under the Development and Regeneration Programme (DRP), and the project be authorised to proceed into stage 2 of the DRP new project approval process with the Project Criteria, for submission by January 2020, being as follows:

1.    A construction specification (the Standard Offer) in line with normal market practice and demand to deliver the scheme approved by Planning Permission (P182239/CD4), subject to other criteria set out here;

2.    To work with the council and Queen Elizabeth High School to agree a design for the pedestrian/cycle link, noting that this link is required by condition 17 of the approved planning permission

3.    In cooperation with the council, as a basis for comparison with Criterion 1, the stage 2 submission will also provide an outline cost of options which makes an enhanced contribution (the Enhanced Offer) to the council’s social, environmental and economic objectives over and above that which would be required by relevant law and/or  conditions applied to the extant planning permission (P182239/CD4) (the Enhanced Offer”) in respect of:

                                          i.    Enhanced environmental sustainability including energy efficiency, transport, protection/enhancement of natural habitats; and/or

                                        ii.    Health and wellbeing of communities and residents;

4.    To work with the council to develop the evidential framework by which the Stage 2 Submission can be assessed against the council’s requirement to demonstrate best value and meet all other relevant legal obligations.

(b)  a Stage 2 development fee of up to £181,000 be approved for underwriting by the council, subject to the terms of the overarching agreement; and

(c)  a further capital sum of up to £75,000 is approved for drawing down from the development partnership capital budget for council client support to deliver the project, including staff costs, due diligence and financial and legal support.

To approve the capital investment budget and capital strategy for 2019/20 onwards.

Appendix 3 provides details of the proposed additions to the existing capital programme that have been identified and the impact of approving these additions.

In line with CIPFA requirements a capital strategy has been written to reflect future direction for capital investment, the strategy is included at appendix 4 and in line with the guidelines requires Council approval.

To approve the continuation of the 2018/19 local council tax reduction scheme (CTR) for 2019/20. The current scheme was initially approved by Council on 18 December 2015.

It is a legal requirement to annually review the council’s council tax reduction scheme and the decision is reserved to full Council. The current scheme has been reviewed and there is no evidence to support a change at this time.

To agree the draft 2019/20 budget and associated medium term financial strategy and treasury management strategy.

The proposed budget reflects current and expected service delivery requirements and the provisional local government settlement announced on 13 December. To deliver a balanced budget there is a need to deliver savings of £3.9m in 2019/20 and to increase council tax by 4.9% (inclusive of 2% adult social care precept). The draft medium term financial strategy (MTFS), attached at appendix 1, has been extended to 2021/22 based on current assumptions on future funding and service requirements.

The treasury management strategy, attached at appendix 4, includes the proposed borrowing and investment strategy, the council’s expected minimum revenue provision and the associated prudential indicators which demonstrate that the council’s proposed capital investment budget is affordable, prudent and sustainable.

To approve school forum’s recommended budget proposals for school budgets, central school services and early years within the Dedicated Schools Grant (DSG) for 2019/20.  Dedicated Schools Grant funding for schools in 2019/20 is £100.7m, which is an increase of £1.38m from 2018/19. The increase is due to £0.9m for increased pupil numbers, £0.14m for increases in historic costs and £0.34m received from a share of national growth funding. The funding for the high needs and early years block are provisional and are both subject to final adjustments for pupil numbers and commissioned places. The school funding values and formula calculations are in accordance with the national school funding formula as set by government. The funding above that required to implement the national funding formula is proposed to be distributed to schools at £15 per pupil and £215,000 transferred to the high needs block for 2019/20.

To recommend to Council for approval the capital investment budget and capital strategy for

2019/20 onwards.

Appendix 3 provides details of the proposed additions to the existing capital programme that

have been identified and the impact of approving these additions.

In line with CIPFA requirements a capital strategy has been written to reflect future direction

for capital investment, the strategy is included at appendix 4 and in line with the guidelines

requires Council approval.

That: the following be recommended to Council

(a) the proposed capital programme from 2019/20 attached at appendix 3 be approved;

(b) cabinet be delegated authority to add the two deferred projects (Countywide Investment in B, C & U roads and Countywide Investment in Strategic Road Network) in appendix 1 as funding becomes available; and

(c) approve capital strategy document at appendix 4.

To approve the continuation of the 2018/19 local council tax reduction scheme (CTR) for

2019/20. The current scheme was initially approved by Council on 18 December 2015.

It is a legal requirement to annually review the council’s council tax reduction scheme and the decision is reserved to full Council. The current scheme has been reviewed and there is no evidence to support a change at this time.

That:

(a) The council tax reduction scheme for 2019/20, attached at appendix 2, be approved.

In discussion of the item cabinet members noted that:

·         with regard to the council tax discount for care leavers aged 18-25, in most cases the discount would be 100% and only in very exceptional circumstances would a lower discount be applied;

·         a range of options existed where council tax payers were experiencing hardship and there had been no major changes in take up rates;

·         engagement with those struggling to pay their council tax sought to understand their individual circumstances and ability to pay, the council was also able to make particular arrangements with those transitioning to and in receipt of universal credit;

·         there was a local scheme for people of working age and a national scheme for pensions, there were different criteria for the two schemes;

·         the council worked closely with partners such as charities and the Department for Work and Pensions (DWP) to signpost those experiencing difficulty to all the help available, councillors could also play a role by directing ward residents to the information available on the council website.

Group Leaders were invited to give the views of their group. Comments noted were:

·         the council should take care that summoning those who were in arrears did not exacerbate problems within the household and check if those being pursued were known to the council in other capacities;

·         it was important that those who needed support received it but also that those who could pay did so in order to be fair to all tax payers;

·         there had been an increase in the number of people in arrears but no increase in the take up of the hardship scheme, it was important that the scheme was property advertised.

Resolved that:

(a)   The council tax reduction scheme for 2019/20, attached at appendix 2, be approved.

To agree the draft 2019/20 budget and associated medium term financial strategy and

treasury management strategy for recommendation to Council on 15 February.

The proposed budget reflects current and expected service delivery requirements and the

provisional local government settlement announced on 13 December. To deliver a

balanced budget there is a need to deliver savings of £3.9m in 2019/20 and to increase

council tax by 4.9% (inclusive of 2% adult social care precept).

The draft medium term financial strategy (MTFS), attached at appendix 1, has been extended to 2021/22 based on current assumptions on future funding and service requirements.

The treasury management strategy, attached at appendix 4, includes the proposed borrowing and investment strategy, the council’s expected minimum revenue provision and the associated prudential indicators which demonstrate that the council’s proposed capital investment budget is affordable, prudent and sustainable.

That:

(a)  the additional funding announced in the provisional settlement of £1.5m (£1.0m Rural Services Delivery Grant and £0.5m business rate levy account surplus) is added as a budget line for expenditure in 2019/20 as indicated in the table at paragraph 24, to support rural service delivery across the county;

(b)  the following be recommended to Council;

a.    the council tax base of 68,826.03 Band D equivalents

b.    an increase in core council tax in 2019/20 of 2.9%

c.    an additional precept in respect of adult social care costs of 2% applied to council tax in 2019/20 resulting in a total council tax increase of 4.9%; increasing the band D charge from £1,443.95 to £1,514.70 for Herefordshire Council in 2019/20;

d.    the balanced 2019/20 revenue budget proposal totalling £151.0m, subject to any amendments approved at the meeting, specifically:

e.    the net spending limits for each directorate as at appendix 3

f.     delegates to the section 151 officer the power to make necessary changes to the budget arising from any variations in central government funding allocations via general reserves;

g.    the medium term financial strategy (MTFS) 2019/2022 at appendix 1 be approved; and

h.    the treasury management strategy at appendix 4 be approved, this includes ratifying including the top five UK building societies as approved investment counterparties.

(c)  To establish a financial resilience reserve (as shown in paragraph 31), previously titled the minimum revenue provision reserve; and

(d)  Approve responses to scrutiny committee’s recommendations as provided in paragraph 63.

In order to inform a countywide review of concessions currently offered in respect of parking charges in council car parks and on street paid for parking spaces a pilot event is proposed in order to measure the benefit and impact of such events for the future.

It is recommended that a free parking in all council car parks be approved and for the free parking to take effect on Saturday 9^th February 2019, subject to certain conditions as outlined.

That:

Free parking for up to 4 hours after 10am on Saturday 9^th February 2019 in all Herefordshire Council off street car parks (except Friar Street military club), be approved as a pilot.

The purpose of this report is to agree the Information Communication Technology (ICT) requirements of new and returning ward members following the local election on 2 May, 2019.   This is in line with the council’s Digital Strategy to utilise digital technology for staff and councillors to work flexibly, responsively and making the most of technology to deliver services. 

Existing members have been consulted on their current requirements and options for the future; in addition some existing members have participated in a trial of smartphone technology and the outcome of these has informed the recommendation to provide all members with a laptop and to provide all members with the option to also use a smartphone.

The 2018/19 spend from reserves will enable a new ICT package to be procured with delegated authority to the assistant director corporate services to award contract.

That:

(a)  the following IT equipment for all  members elected in May 2019 be purchased at a cost of not more than £100k:

·         53 laptops -

·         53 smart phones be purchased on rolling two year contracts (up to a total of 4 years)

(b)  The assistant Director Corporate Support be authorised to take all operational decisions necessary to implement the above recommendation.

To approve the direct award of contract for one year to the current provider to deliver the management of a telecare monitoring service (Careline).  There are no further options for extension within the current contract and therefore a direct award is the most effective and appropriate way to ensure continuation of this service.

The call monitoring service supports the provision of technology equipment to many hundreds of people living in the community, providing a helpline function. The provision of Technology Enabled Care (TECS) equipment is managed separately through another contract. Reviews and redesign of community equipment and TECS pathways and services are commencing and will consider options for future delivery. The current contract expires on the 31 March 2019 and extending the service will allow consideration of a wider range of options and potential alignment with provision of equipment. The community equipment contract is expected to conclude in March 2020

That:

(a)       a contract be awarded to Herefordshire Housing Limited (Connexus) to deliver the management of a telecare monitoring service from 1 April 2019 to 31 March 2020 to a maximum value not exceeding £46k.

Approve works necessary for the preparation of the land to the south of Station Approach (Essex Arms site) for development.

The Essex Arms site (appendix 1) lies to the south of the Station Approach (City Link Road CLR) which forms the northern boundary of the site. The site has been opened up for development as a result of the construction of the CLR which has enabled access to the site.

However the site in its current form cannot be developed as it is subject to flooding due to its low laying topography, and throughout the master planning for the Edgar Street Grid (ESG) regeneration area, it was known that part of the site would need to be raised so the ground level was equal to its neighbours to allow it to be de redeveloped as part of the Urban Village.

Highways access to the site is achieved from Station Approach (the CLR), and a final phase of the CLR scheme will be the physical works required to realign Widemarsh Brook, and create an attenuation pond as part of the drainage strategy for the CLR. The scope of these works is limited to diverting the watercourse from the eastern boundary over to the west and includes constructing a new bank to retain and define the new route of the watercourse.

Therefore consideration now needs to be paid to the necessity to raise the net developable area in order to realise the economic benefits of the CLR. This report seeks approval for a package of survey work and technical design to inform  the form of the ground raising works, to enable future development of the site. The proposal is that the works are brought forward promptly to enable an early start of the development of this site, to support the university or other potential occupiers.

The budget for these design and investigatory works are £45,000 which includes contingency to allow for additional survey work should initial investigations reveal issues around contamination and/or ecology beyond those already assumed and planned for.

A further report will be brought forward to seek approval for the physical ground raising works once these initial investigation and design works have been completed as they will define what is required including target costs.

That:

(a)       Site investigations and design work for a scheme of flood alleviation works that would raise the ground level of part of the Essex Arms site to make it suitable for development be undertaken at a cost of not more than £45,000.