To receive any apologies for absence.

Apologies were received from Councillor Barry Durkin, Councillor Dan Hurcomb, Councillor Nick Mason, Councillor Stark and Councillor Crockett

To receive declarations of interests in respect of Schedule 1, Schedule 2 or Other Interests from members of the committee in respect of items on the agenda.

None.

To approve and sign the minutes of the meeting held on 20 July 2023.

Resolved:       That the minutes of the meeting held on 20 July 2023 be         approved as a correct record and signed by the Chairperson.

To receive questions from members of the public.

Questions received and responses given are attached as appendix 1 to the minutes.

To receive questions from councillors.

Questions received and responses given are attached as appendix 2 to the minutes.

To receive reports from the Council’s scrutiny committees on any recommendations to the Cabinet arising from recent scrutiny committee meetings.

There were no reports from scrutiny committees for consideration at this meeting.

To review performance for Quarter 1 2023/24 and to report the forecast position for 2023/24, including explanation and analysis of the drivers for the material budget variances, and outline current and planned recovery activity to reduce the forecast overspend. 

To provide assurance that progress has been made towards delivery of the agreed revenue budget and service delivery targets, and that the reasons for major variances or potential under-performance are understood and are being addressed to the cabinet’s satisfaction.

Cabinet members considered a report setting out the performance of Quarter 1 2023/34 and the forecast position for 2023/24. 

The cabinet member for finance and corporate services introduced the report and highlighted that this report is the first outline position for 23/24 and clearly demonstrates the challenges faced in delivering the revenue budget set by the previous administration in February 2023.  This year’s revenue budget £193.3m which includes planned savings of £20m arising from £14.1m director savings together with £5.9m central budget savings.

The cabinet member set out that the Quarter 1 report for the last four years has traditionally forecast a overspend. In:

• 2019/2020 Quarter 1 showed a zero overspend and final overspend of £600k;
• 2020/2021 Quarter 1 forecast was £15.9m with a final over spend of £0 which was underwritten by £10.2m of Covid funding;
• 2021/2022 Quarter 1 forecast was £9.4m with a final overspend of £12.6m.

Therefore this year’s overspend will be less than the Quarter 1 forecast.  The Quarter 1 forecast is £13.5m overspend and the Medium Term Financial Strategy, which was approved by previous administration, has a cumulative funding gap of £15.8m over a three year period (2024-2027). The cabinet member highlighted that these two figures clearly demonstrate the scale of the financial challenge we have been left by the previous administration.

The cabinet member outlined what they are going to do to address the £13.5m overspend which equates to 7% of the net budget with the most significant overspend being in Children and Young People Services at £10.6m.  The cabinet member highlighted the following points:

• The overspend reflects significant national pressures including inflation, unprecedented demand for adult and children social care and national living wage increases;
• Recovery action has been identified to reduce the cost by £4m and timely delivery of this activity is a priority for the Cabinet.  This includes restrictions on procurement, non-essential spends, target reductions for third party spends and reduction on the number of interim and agency staff as well as number of directorate specific measures. Table 3 shows the revised forecast in light of these actions;
• Improvement in Children’s Services are supported by a robust three year financial plan.  Activities planned within this service aim to reduce reliance on agency staff, improve the balance of social workers to 90% permanent employees and 10% agency staff.  The lack of sufficient childrens social work places and increase in residential placement costs will be monitored over this period;
• Efforts to recruit in house foster carers to reduce the Council’s need to use independent fostering agencies will renewed;
• Fully committed to reduce in year over spend and as part of 24/25 budget.  A three prong approach will be adopted; Firstly, this report sets out the immediate management actions to deliver savings through controls and these actions will continue and develop into next year; Secondly, the Council will invest in the economy to generate growth; Thirdly the Council will innovate to increase revenue through maximum utilisation of Council owned assets. 

The cabinet member advised  ...  view the full minutes text for item 26.

To approve the adoption of the Risk Based Verification Policy in determining evidence requirements for the assessment of Housing Benefit and Council Tax Benefit claims.

Cabinet members considered a report to approve the adoption of the Housing Benefit Risk Based Verification Policy in determining evidence requirements for the assessment of Housing Benefit and Council Tax Benefit Claims.

The cabinet member for finance and corporate services introduced the items and clarified Housing Benefit RBV is used when processing claims for housing benefits and council tax support.  It allows the Council to focus resources on claims where there is a higher likelihood of fraud and error and to pay low risk claims more efficiently.  It is a software application to produce a risk score based on historical intelligence and statistical information. The three categories are low, medium and high.  Herefordshire Council have used this method of verification since 2012 and it has been permitted by the Department for Works and Pensions since 2012. 

There were no comments from cabinet members. 

Group leaders gave the views of their groups.  It was noted that the Housing Benefit RBV policy was beneficial.  It was commented that the benefits and fraud team were nominated for two years running in minimising fraud and acknowledged their hard work.  An issue was raised regarding a resident’s housing benefit claim being reassessed due to the landlord changing agents.  In response to queries raised it was noted that:

• Details of the resident’s case would be forwarded to the cabinet member to be reviewed.  

It was unanimously resolved that: 

a)    Cabinet approve the Housing Benefit Risk Based Verification Policy for 2024/25 and notes that the Policy has been effective for the period since initial implementation, as recommended by the Section 151 Officer

This report seeks approval for the council to sign a Memorandum of Understanding (MOU) between Herefordshire Council, Shropshire Council and Monmouthshire and Powys County Councils for collaboration as a Marches Forward Partnership.

Cabinet members considered a report seeking approval for the council to sign a Memorandum of Understanding (MOU) between Herefordshire Council, Shropshire Council and Monmouthshire and Powys County Councils for collaboration as a Marches Forward Partnership.  It provides the basis for enhanced working with the Council’s neighbours.

The Leader explained that it will be committing to a strategy to work together and to influence the UK and Welsh Governments to gain investment and critical infrastructure such as the A49. Noted that concerns were raised by members that it would be diverting officers away from priorities of the Council.  It was clarified that through the Leader’s Group the focus is to remain on improving services for Herefordshire Council residents and the connectivity includes major infrastructure requirements. 

The review will be brought forward to 12 months to ensure the proposed activities remain on tract.  Clarified that if the Council decides to enter the MOU it does not prevent the Council from forming any other key partnerships with other local authorities.

Confirmed that subject to the decision by Cabinet the Leader will be meeting with Leaders of the other Councils on 6 October 2023 to finalise the agreement. A launch event will be held in November 2023. 

Confirmed the Political Group Consultation took place and Cabinet are keen to ensure that the feedback is clear regarding the Chief Executive being delegated to in the wording of the MOU. 

There were no comments by Cabinet Members. 

Group leaders gave the views of their groups.  The MOU was considered positively and group leaders were broadly supportive with the view of this building on the good working relationship with other local authorities.  It was raised that it would be beneficial for border land issues to be reviewed by an MP, the MOU shouldn’t become a financial burden nor take too more discussion time rather than action. 

In response to queries it was noted that:

• There is scope for joint working and it is acknowledged that greater scope is wanted in certain areas;
• The Political Group Consultation was published later and the recommendations made will be listened to;
• The closer working relationship with the neighbouring local authorities will be a beneficial way to help tackle those cross border issues;
• The MOU is not set in stone.

It was unanimously resolved that Cabinet:

a)    Support Herefordshire Council’s Leader in working with neighbouring local authorities to present outline terms of reference for a Marches Forward Partnership;

b)    Delegate to the Chief Executive in consultation with the Council’s Leader to agree changes in finalising the Memorandum of Understanding to reflect feedback from each cabinet and to complete the Memorandum of Understanding; and

c)    Delegate to the Chief Executive and Corporate Director for Economy and Environment to proceed with development of a work programme to meet the objectives within the Memorandum of Understanding, in consultation with relevant Portfolio Holders.

To approve spend from the High Needs Provision Capital Grant to extend Hampton Dene Primary School’s Language and Communication Centre.

Cabinet members considered the report to approve spending from the High Needs Provision Capital Grant to extend Hampton Dene Primary School’s Language and Communication Centre.

The cabinet member explained that the Council have a secondary responsibility to provide sufficient high quality resources for pupils with Educational Health and Care Plans (ECHP’s).  There has been an increase over the last five years in children diagnosed with Autistic Spectrum Disorder referred to as ASD.  The expansion will provide two new classrooms with appropriate support space and will accommodate 16 further learners. 

The Council received the High Need and Capital Grant from the Department of Education.  The £3.97 million is supplied to create additional places and improve existing provision for children and younger people with Special Educational Needs disorder (SEN).  The extension of the Hampton Dene Provision is one of a number of projects to utilise that funding. 

There were no comments from cabinet members. 

Group leaders gave the views of their groups.  Consensus that this is a positive project overall.  Concerns were expressed about the project achieving passive house equivalent standard and due to the significant demand for Speech and Language Therapy (SALT) will students be able to access this resource remotely.

In response to queries it was noted that:

• Clarification will be provided regarding availability of funds for schools within the capital programme review;
• Sections 18, 19, 21 and the environmental impact sections of the report set out that the Council will be following environment biodiversity.  It was confirmed that passive measures will be sought when designing this building.  However there are no funds to retrofit the exiting building.  The overall footprint of the building will have a lower carbon footprint;
• The Project Management Office will lead.  A suitably skilled multiplicity disciplined team will be employed to design and deliver this project;
• A 21^st century technology approach will be used and will be part of a feature of the Council’s future sufficiency strategy for students to access remotely. 

It was unanimously resolved that:

a)    Subject to planning consent, up to £2.4m of capital spend from the high needs provision capital grant be allocated to extend Hampton Dene Primary School’s Language and Communication Centre, and

b)    The Service Director for Education, Development and Skills will be authorised to take all operational decisions necessary to deliver the works.