To receive any apologies for absence.

There were no apologies for absence.

To receive any declarations of interest by Members in respect of items on the Agenda.

7. REVIEW OF THIRD SECTOR SUPPORT AND DEVELOPMENT SERVICES.

Councillor DB Wilcox, Personal, Mrs Wilcox is the Chairman of Hereford Voluntary Action.

To approve and sign the minutes of the meeting held on 16 December 2010.

RESOLVED:   That the Minutes of the meeting held on 16 December 2010 be approved as a correct record and signed by the Chairman.

NOTE:

Cabinet was notified of the death of Mrs Sue Harling, wife of the former Chairman of the Council, Councillor Peter Harling.

Cabinet agreed to move Agenda Item 6 – Response to Scrutiny Review of Home Care, as the first item on the agenda for discussion.

To respond to the review of home care.

The Cabinet Member, Adult Social Care presented the report on the scrutiny review and introduced the new Interim Director of Adult Social Care, Jana Burton to Cabinet.

The following points were made:

• The review had highlighted some significant issues.  Some of the actions identified in the 15 recommendations would need to be amended as issues had changed both locally and nationally since the report had been produced.
• The rapid response delivery and information regarding aids and adaptations for the home could provide significant savings and allow people to live independent lives outside of their homes, and delay or prevent the need for more intensive care or admission to a long term care home.
• With regard to the Integrated Care Organisation and Mental Health review Section 75 arrangements, the Council would need to be clear about the role of the property that belonged to the Council.
• Delayed discharges – this had been controversial in the past and there was still considerable work to be done on the matter, particularly with partner organisations. 

Members discussed further the points raised in the scrutiny review and agreed the responses.

RESOLVED: That the response be agreed.

To agree the budget and Joint Medium Term Financial Strategy (MTFS) for recommendation to Council on 4 February 2011.

The Cabinet Member Resources advised Cabinet had been preparing for sometime for the cuts in funding under the Comprehensive Spending Review.  The 2011/12 financial settlement had resulted in Herefordshire being required to make savings of £10.3m.  This would include the changes to the local government funding formula which would amount to losses of £2.7m in funding.  It was added that for 2011/12 a number of the grants the Council had previously received would now cease or become part of the general formula grant, and there would now only be six specific grants.  However, there would be greater flexibility for the Council in the way funds were spent.  The Cabinet Member added that it was not intended to increase council tax; this would take advantage of the government’s voluntary scheme to support councils that retained council tax at the current level, with the emphasis being in reducing costs not services.  Funding from reserves would be used to help with the reduction in grant funding.  The Joint Medium Term Financial Strategy brings together the financial planning of the Council and NHS Herefordshire.

The Director of Resources stated that:

• Members had been kept informed of the Comprehensive Spending Review (CSR) process and the wider implications of the reductions in public sector spending, which were outlined on page 6 of the report.
• The budget encompassed the council tax voluntary scheme to hold council tax at current levels
• The additional funding of £3.5m for Adult Social Care was welcomed.
• The reduction in the number of grants had reduced bureaucracy and increased local choice on spend.
• There would be an increased impact on schools as they faced funding pressures as the number of pupils on the rolls were falling.
• The settlement was expected to be in place for two years following which central government was to review the formula; further change was therefore expected including the localisation of council tax benefit.
• The majority of funding would now be via the general formula grant and details of this were still awaited, but the total savings required for 2011/12 was £10.3m.
• Directorates went through the star chamber process on two occasions before the conclusion of the overall budget and policy process.
• With the reduction in grant funding the emphasis had been on cutting costs and not reducing front line services.
• General reserves needed to be maintained at 3% of net revenue budget, which requires a reserve of £4.5m.
• The reduction in funding for concessionary fares could impact on rural areas  but would be mitigated by temporary funding generated through reserves which was required to be replaced within 12 months.
• 2012/13 would also be a challenging year reflecting the speed of the deficit reduction and the change in the formula grant.
• It was anticipated that there would be a loss of 250 full time equivalent (FTE) posts in the authority.

The Leader of the Council made the following comments:

• Although the authority had been preparing for cuts they were more extensive than expected.
• The settlement details were not known  ...  view the full minutes text for item 83.

To invite Cabinet to commend for Council’s approval the Council and NHS Herefordshire Joint Corporate Plan vision, priorities and long-term outcomes attached at appendix 1.

The Cabinet Member Corporate and Customer Services and Human Resources presented the Joint Corporate Plan to Cabinet and advised that following the elections in May 2011, it was anticipated that the plan would require refreshing.

The following points were made:

• The joint medium term financial strategy for both the Council and NHS Herefordshire endorsed the key priorities and principles of the new JCP.
• JCP appendix 1 – 1.5 had been changed to reducing health inequalities for the working population.
• The JCP had been to the Herefordshire Partnership management group and to the third sector partnership for their comments.
• Cabinet agreed that the comments of the Overview and Scrutiny committee were to be incorporated into the revised report to Council.
• Comments were made by Cabinet Members that consideration be given to the inclusion within the JCP to Hereford City, broadband and public transport.
• The Chief Executive and the Monitoring Officer were to be delegated to finalise/make amendments the JCP prior to it going before Council.

RESOLVED: That Cabinet recommended to Council the approval of the Joint Corporate Plan vision, priorities and long-term outcomes as set out at Appendix 1, save that the Chief Executive and the Monitoring Officer be delegated to finalise the Joint Corporate Plan and make any necessary amendments (if any) to reflect Cabinet Member comments regarding transportation and Hereford City.

To be advised of the outcome of a joint review of third sector support and development services; to approve the principles for future delivery and delegate authority to officers to deliver the proposal, in conjunction with relevant voluntary and community organisations.

The Director of Resources, as chairman of the review, presented the report to Cabinet.  The Director referred to the key factors for consideration as set out on page 128 of the report and to the issue of the Big Society approach and the delivering of solutions through the civil society, which was a key element of the new coalition government. 

The Director referred to:

• The objectives of the review and the need for the sharing of back office functions for services, which would provide greater collaboration and value for money.
• The views of the Community Services Scrutiny Committee, which referred to the potential loss of skills of individual organisations and the possible loss of volunteers.
• Having one single local solution for Herefordshire, sharing services, providing a flexible outreach provision.
• Try to bring together a number of organisations and Council resources to better serve the people of the County.
• All proposals to be scrutinised by the third sector board.
• Cabinet welcomed the proposals and agreed they would be beneficial to all organisations concerned.

Cabinet thanked officers and partner organisations for the work they had done on the report, which would ensure that public money was spent wisely.

RESOLVED

That:               a)         the outcome of the review be noted;

                     b)         the principle of a single local solution to deliver support services to front line community and voluntary organisations, together with a shared services approach to back office functions, be approved; and

                     c)         authority be delegated to the Director of Resources, in consultation with the Director of Sustainable Communities, to negotiate and implement a single delivery arrangement in accordance with the agreed principle.