Town Clerk Services, Hull City Council, The Guildhall, Alfred ...

Town Clerk Services, Hull City Council,

The Guildhall, Alfred Gelder Street, Hull, HU1 2AA

www.hullcc.gov.uk DX: 11934 HULL 1 Tel: 01482 300300

Dear Sir/Madam, Cabinet

The next meeting of the Cabinet will be held at 09:30 on Monday, 23 November

2015 in Room 50.

The Agenda for the meeting is attached and reports are enclosed where relevant. Please Note: It is likely that the public, (including the Press) will be excluded from the meeting during discussions of exempt items since they involve the possible disclosure of exempt information as describe in Schedule 12A of the Local Government Act 1972. Yours faithfully,

Democratic Services Officer for the Town Clerk

Please ask for: Laura Scholes Telephone: 01482 615013 Fax: 01482 614804 Email: [email protected] Text phone: 01482 300349 Date: Friday, 04 December 2015

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Cabinet

To: Membership: Councillors Bayes, Black, Brady, Clark A, Geraghty, Hale, Spencer, Mancey, Nicola and

Webster.

For Information: Councillor M Ross, Leader of the Liberal Democrat Group Councillor Fareham, Leader of the Conservative Group

Officers: Matt Jukes, Interim Chief Executive Milorad Vasic, Director Children and Family Services Trish Dalby, Director of Strategic Commissioning and Delivery Julia Weldon, Director of Public Health Mark Jones, Director of Regeneration Ian Anderson, Town Clerk Brendan Arnold, Director Of Resources & City Treasurer Laura Scholes, Democratic Services officer (x4 + x6 Public Sets) Public Sets: Guildhall Reception (Public Set) Reference Library (Public Set)

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Cabinet 09:30 on Monday, 23 November 2015

Room 50

A G E N D A

PROCEDURAL ITEMS

1 Apologies

To receive apologies for those Members who are unable to attend the meeting.

2 Declarations of Interest

To remind Members of the need to record the existence and nature of any Personal and Discloseable Pecuniary interest in items on the agenda, in accordance with the Member Code of Conduct. Members Code of Conduct - Part D1 of the Constitution)

3 Minutes of the meeting held on 26th October 2015

To approve the minutes as a true and correct record.

7 - 14

4 Public Questions

There will be a period of up to 15 minutes during which members of the Cabinet will answer questions put by members of the public on matters of policy or decisions normally made by the Cabinet. Any person or organisation wishing to put a question should contact Laura Scholes, Democratic Services Officer at the Guildhall for guidance on the procedure. As the agenda for the meeting is to be considered under the Council's formal committee procedure, rather than as a public forum, the public will not be able to participate in the Cabinet's discussions on the items on the agenda that follow below.

NON-EXEMPT ITEMS

Key Decisions

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5 Kingswood Area Action Plan - Submission

This report sets out, for consideration, the responses to the consultation on the published Kingswood Area Action Plan and the proposed changes for agreement prior to the submission of the Plan to the Secretary of State for examination.

15 - 48

6 Unconventional Oil and Gas Extraction Policy

This report sets out, for consideration, the proposed Policy for approval.

49 - 82

Non-Key Decisions

7 Treasury Management Strategy Statement And Annual

Investment Strategy – Mid Year Review Report 2015-16

This report sets out, for consideration, an update on Treasury Management activity and performance in the first half of the financial year 2015/16.

83 - 116

8 2015/16 Capital Monitoring Report - Quarter 2

This report sets out, for consideration, an updated overview of progress against budget and planned activity for the 2015/16 capital programme.

117 - 176

9 2015-16 Revenue Budget and Performance Monitoring Report

Second Reported Position (end September 2015)

This report sets out, for consideration, an update on the revenue budget

monitoring position at the end of September 2015.

177 - 208

10 Use of Compulsory Purchase Orders Where Land Cannot be

Acquired by Voluntary Agreement Preston Road Renewal Area

This report sets out, for consideration, the potential need to use Compulsory Purchase Order powers to secure ownership of properties/titles to deliver the regeneration aspirations of the Council within the Preston Road renewal area in east Hull.

209 - 224

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11 Anti-Poverty Task and Finish Panel Recommendations

Progress Report

This report sets out, for consideration, the progress being made on progressing the recommendations of the Anti-Poverty Task and Finish Group.

225 - 268

12 Exclusion of the Press and Public

To consider the exclusion of the press and public for the items listed as exempt.

EXEMPT ITEMS

Key Decisions

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Non-Key Decisions

13 Appendix 3 - Timeline 7 Holmpton - Not for Publication

• Information relating to any individual;

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Cabinet

26th October, 2015

PRESENT:-

Councillor S. Bayes, Councillor J. Black, Councillor A. Clark, Councillor T. Geraghty, Councillor M. C. Mancey, Councillor R. Nicola (from minute 59), Councillor H. J. Spencer and Councillor P. J. Webster.

IN ATTENDANCE:-

J. Weldon (Director of Public Health and Adults), I. Anderson (Town Clerk), D. Bell (Assistant City Treasurer, Corporate Finance) and L. Scholes (Senior Democratic Services Officer). L. Goude (Assistant City Manager, Integrated Commissioning) – minute 59 and K. Griffiths (Principal Planning Officer – Planning Obligations) – minute 60. APOLOGIES:- Councillor S. Brady (Chair) and Councillor D. R. Hale (Deputy Chair).

Minute No.

Description/Decision Action By/Deadline

PROCEDURAL ITEMS

54 APPOINTMENT OF CHAIR Moved by Councillor Spencer and seconded by Councillor Webster:- That, in the absence of the Chair and Deputy Chair, Councillor Black be appointed to the Chair for this meeting. Motion carried.

55 DECLARATIONS OF INTEREST No declarations of interest were made in respect of the items that follow below.

56 PUBLIC QUESTIONS No public questions were received.

57 MINUTES OF THE MEETING HELD ON MONDAY, 28TH SEPTEMBER, 2015 Agreed – that the minutes of the meeting held on Monday, 28th

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September, 2015, be taken as read and correctly recorded and be signed by the Chair.

58 MINUTES OF THE MEETING HELD ON MONDAY, 12th OCTOBER, 2015 Agreed – that the minutes of the meeting held on Monday, 12th

October, 2015, be taken as read and correctly recorded and be signed by the Chair.

NON-EXEMPT ITEMS

Key Decisions

59 TENDER FOR THE PROVISION OF RESIDENTIAL CARE HOME SERVICES FOR OLDER PEOPLE AND PEOPLE WITH DEMENTIA The Assistant City Manager for Integrated Commissioning submitted a report which set out the options for the procurement of the Residential and Nursing Care Homes Framework Agreement with concessions for four years jointly procured with Hull’s Clinical Commissioning Group. The comments of the Health and Social Wellbeing Overview and Scrutiny Commission when this matter was considered, were submitted for consideration, and were detailed at minute 63. Members commented that they were pleased this issue had been submitted to the Cabinet as it was important that the Cabinet members understood the approach to assuring the Council on standards of care and the importance of improving the standards of care in care homes. This was key for those people who had to go into a care home although the priority remained of keeping people in their own homes for longer. Members also commented on the need to ensure that there were sufficient funds available to adapt homes to enable people to stay in their own homes with adaptations. Agreed -

(a) That the procurement of a Residential and Nursing Care Homes Framework Agreement with concessions be approved to enable the customer to receive funds through a personal budget or direct payment to select and purchase services of their choice;

(b) That the commissioning of an Older People’s Residential and Nursing Care Framework with Concessions be

(a-d) Assistant City Manager for Integrated Commissioning

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approved for a period of 4 years (2016-2020);

(c) That the tender will be evaluated based on 100% quality with 20% allocated towards social value, with the price being fixed as the Usual Cost of Care in Kingston-upon-Hull. (See Appendix A – Indicative Tender Timetable), and

(d) That the award of contract following the procurement process be delegated to the Leader of the Council in consultation with the relevant Portfolio Holder for Public Health, Prevention and Safeguarding Adults, and the Portfolio Holder for Business Support and Change to award contracts following the procurement process.

Reasons for recommendations

• Subsequent to the introduction of the Public Procurement Rules 2015, it is necessary to undertake a tender process to establish a framework contract for use with providers who provide residential care in the city.

• The type of contract falls within the Light Touch Regime which requires that the Council comply with the obligations of transparency and equal treatment and take into account:

• the need to ensure quality, continuity, accessibility, affordability, availability and comprehensiveness of the services;

• the specific needs of different categories of users, including disadvantaged and vulnerable groups;

• the involvement and empowerment of users; • innovation.

• The 1992 Choices of Accommodations Directions in the Local Authority Circular LAC (2004) 20 states that, when setting and reviewing the “Usual Cost” of care, namely the cost of making arrangements for a resident at their preferred accommodation, a Local Authority is not required to pay more than they would usually expect to pay having regard to the resident’s assessment of need.

• The existing residential care fees have been arrived at based upon information provided by residential care providers in Kingston in Hull through an extensive and detailed consultation exercise. That consultation exercise involved the development of a model for determining the Usual Cost of Care in the City.

• That assessment will be revisited, taking into account current data, including the revision of the minimum wage announced

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by the Chancellor of the Exchequer within the procurement process, however, in accordance with the Choices of Accommodations Directions, the Local Authority is not required to pay more than the Usual Cost of Care, therefore, the proposal is to fix the rate to be paid at that rate.

• Consequently it is appropriate to undertake the tender process with an exclusive focus upon quality to ensure that the residential care provided in the City meets the Council’s requirements.

60 THORNTON NEIGHBOURHOOD AREA AND FORUM PROPOSALS The Assistant City Manager, City Planning submitted a report which detailed the proposal for the designation of the Thornton area for a Neighbourhood Plan and Forum. The comments of the Planning Committee when this matter was considered, were submitted for consideration, and were detailed at minute 63. Members discussed the comments of the Planning Committee, in particular in relation to the concerns over the number of members from one organisation and the recommendation from that Committee to restrict the members associated with any one organisation to 30% of the membership of the forum. Members stated that the makeup of the Forum would change over time and queried whether it was possible to restrict the membership in such a way. The officer explained that it was not possible to impose such restrictions. The members of the Forum had to be members of the community by living or working in the area and felt that an organisation would provide an opportunity to develop and drive such a process and plan. The Town Clerk advised that the Council were not able to restrict the membership but they would look at developing guidance on the membership of such forums including best practice arrangements. Members were assured by there being other key organisations and ward councillors represented on the Forum. There were a broad range of people represented on the Forum. Members commented that it was important to be transparent and the Forum members would be required to complete forms detailing their interests and background. Agreed -

(a) It is recommended that the proposed designated area and

(a-b) Assistant

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forum be supported as detailed in appendix 1, to enable the Neighbourhood Plan to be prepared, for the reasons detailed in the report; and

(b) That the community responses referred to in the report be noted.


• The recommendation is derived from consideration of the area and forum being proposed prior to the preparation of a Neighbourhood Plan, which meets National Planning Practice Guidance.

City Manager, City Planning

61 CONSULTATION ON 2016/17 GENERAL FUND BUDGET PROPOSALS The Director of Resources and City Treasurer submitted a report which set out the financial backdrop against which the 2016/17 budget strategy had been developed and detailed the budget proposals which were being consulted upon prior to the formal approval of the budget. The comments of the Finance and Value for Money Overview and Scrutiny Commission when this matter was considered, were submitted for consideration, and were detailed at minute 63. Members discussed the comments from the Finance and Value for Money Overview and Scrutiny Commission and the recent comments by the opposition in relation to staff redundancies. The Council, should it need to, would follow the correct process of issuing a Section 188 notice and consultation with trade unions. Members explained that this was a consultation on savings which it was anticipated would be required ahead of confirmation of the outcome of the Chancellor’s Autumn Statement and Spending Review, which was not due until November and the final settlement, which was not due until December. There was no easy solution to the situation, the Government was reducing the funding and the Council had to protect statutory services. Members stated that these were cuts that the Government were imposing and the administration was doing its best to minimise the impact on residents. The Council was focusing on early intervention and prevention to try to reduce higher costs from a reactive process. Members also clarified that this was for consultation, there was no guarantee that the same proposals would be agreed in February 2016 for the final 2016/17 budget. There were also proposed budget savings included for future years which could still be changed during the consultation process for that year’s budget.

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In relation to the request from the Finance and Value for Money Overview and Scrutiny Commission, that a single officer be identified as responsible for the budget and realising the proposed savings, Members commented that they would not name a single individual officer, Members referenced the existing process in the Council at which the individual officers responsible for managing budget savings attend the Finance and Value for Money Overview and Scrutiny Commission to present the proposals following consultation. Members noted that Hull was now the third most deprived City in the Country. Whilst the City was dealing with budget reductions it was also trying to improve the local economy and income generation and mitigate the impact on the City in future. Members also commented that this was very early in the year to start the consultation and they hoped this approach would be welcomed. Members commented that they were pleased the budget had been submitted to Cabinet and with the regular updates they received in relation to the issues. Agreed - That the budget proposals as detailed at Appendix A are approved for consultation.


• In order that the Council may contain 2016/17 revenue expenditure within the available resources, savings in current expenditure need to be identified, and decisions taken to deliver savings proposals following the undertaking of all necessary consultation and any resulting adjustment to the proposals.

Director of Resources and City Treasurer

62 LIVING WAGE Agreed – That consideration of this item be deferred to a future meeting of the Cabinet.

63 COMMENTS OF COMMITTEES AND COMMISSIONS The Democratic Services Officer submitted comments in relation to minutes 59-62 from the Council’s committees and scrutiny commissions that had considered the reports following the circulation of the agenda for this meeting. Agreed – That the comments be noted.

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Start: 9.30 a.m.

Finish: 10.00 a.m.

The above Executive Decisions will come into force and may be implemented on expiry of five working days after the publication of the decisions i.e 4th

November, 2015, unless called in by the Overview and Scrutiny Management Committee.

Published 27th October, 2015

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Report to the: Planning Committee 17th November 2015 North Carr Area Committee 18th November 2015

Wards: Kings Park; Bransholme East; Bransholme West.

Cabinet 23rd November 2015 People and Communities Overview and Scrutiny Commission 12th November 2015

Kingswood Area Action Plan - Submission

Report of the City Planning Manager

1. Purpose of the Report and Summary 1.1. This report asks Members to consider the responses from consultation on the

published Kingswood Area Action Plan (issues raised in consultation and responses from the Council are shown in Appendix A), the minor proposed changes (attached in Appendix B) to it, with a view to progress to the next formal stage of the process, namely the submission of the Plan to the Secretary of State for examination.

1.2. The Kingswood Area Action Plan (AAP) sets out future development/use of land at Kingswood up to 2030. The Kingswood AAP is being prepared in accordance with statutory planning procedures. When adopted by the Council, the Kingswood AAP will have Development Plan status and will guide planning decisions for that area.

2. Recommendations

It is recommended that:

2.1. The Kingswood AAP, the consultation responses (and their summary), the

proposed minor changes and other supporting documents be submitted to the Secretary of State for examination; and

2.2. The City Planning Manager, in consultation with the Portfolio Holder for Energy City, is authorised to make any minor drafting changes and layout amendments prior to submission to the Secretary of State.

3. Area Committee Impact 3.1 The Kingswood AAP is located entirely within North Carr area. The previous reports

and this report have been considered by the area committee.

This is a key decision. The matter is in the Forward Plan – Ref. No. 0052/15

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4. Background

4.1 Preparation of an Area Action Plan (AAP) for Kingswood was initially supported by

Members in November 2010, and the draft Plan, now published, was endorsed in April 2014.

4.2 The Hull Local Plan identifies Kingswood as a focus for continued major housing

growth, crucial in helping the city meet its overall future housing needs and business development. The Hull Local Plan is the Council’s new planning strategy and shows how Hull will change with new development and regeneration over the years to 2030, to help shape a better city. It also recognises that Kingswood future development should be guided by an area action plan setting out detailed proposals for new build, up to 2030.

4.3 The Kingswood AAP’s ‘submission stage’ comes after the Plan’s publication on 18th June 2015 and 6-week public consultation. Representations on the ‘soundness’ and ‘legal compliance’ (as defined by the National Planning Policy Framework) of the AAP were sought. A number of background documents (‘submission documents’) were published at the same time.

4.4 Before this, an initial public consultation on ‘Issues’ took place in Autumn 2011 and

a further public consultation on ‘Development Options’ in Winter 2012-13. The responses to the consultations were taken into account in drafting the Plan.

4.5 The Kingswood AAP is being prepared in parallel to the new city-wide ‘Local Plan’, and in that respect has been informed by an evidence base which underpins both plans, in particular with regards to strategic matters such as retail, employment, housing and flood risk. The latest consultation of the Local Plan, on the ‘Preferred Options’ document has just been completed.

5. Issues for Consideration: results of consultation

5.1. The published AAP is considered ‘sound’ and each representation received as a result of consultation has been considered carefully before deciding whether any objections challenging the soundness or legal compliance of the Plan warranted a change to the AAP.

5.2. There are a number of representations which challenge the soundness of the Plan, but no major change is proposed as a result. This report reiterates the justification for the AAP proposals which have been objected to. The Plan remains the same; only minor changes to the AAP are proposed (attached in Appendix B) as a result of representations or correction of small errors.

5.3. 58 responses were received from 51 respondents as a result of a 6-week consultation which took place in June-July 2015. Of these, 25 responses were from 19 organisations/key stakeholders and 33 from residents. 36 were supportive or neutral towards the Kingswood AAP while 22 objected to the proposals. Among the supportive responses, some suggested some minor changes, without challenging the soundness of the Plan.

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5.4. After consideration of the responses, a number of main issues have been identified, namely:

- Additional retail: objection to the designation of a District Centre at Kingswood

with proposed additional retail; respondents include the retail key stakeholders of Hull City Centre (Hull BID, St Stephen’s Shopping Centre, Prospect Shopping Centre, Prince’s Quay Shopping Centre, Quay West, Fruit Market), North Point Shopping Centre, Kingswood Retail Park and Beverley’s Flemingate.

- Flood risk: concerns about flood risk from a few Kingswood residents. The Environment Agency and the East Riding of Yorkshire Council made comments but didn’t challenge the soundness of the Plan.

- Transport: Concerns from some residents about accommodation of additional traffic that new development will generate. The East Riding of Yorkshire Council objects to the Plan with regards to the impact that development at Kingswood will have on the Dunswell roundabout.

- School places: a resident challenges the soundness of the AAP with regards to the proposed figure of additional school places required with housing development.

- Process: objection from a retail key stakeholder about the AAP process - that no Preferred Options stage took place and that the AAP is prepared in advance of the city-wide Local Plan.

5.5. More detail is provided below.

Additional retail

5.6. Several points were raised by the key retail stakeholders in the area with regards to the designation of a new District Centre at Kingswood in the Area Action Plan which allows for additional comparison retail subject to an assessment of impact on the City Centre and other District Centres. The relevant part of Policy KAAP10 – Kingswood Centre reads as follows:

“B. Additional comparison retail floorspace within the District Centre will be supported provided:

i. the proposals bring an offer to the city which complements and does not adversely impact on the City Centre; ii. the proposals do not adversely impact on other District Centres in the City; iii. it is demonstrated that proposals claw back retail expenditure currently lost from Hull; and iv. any traffic management, parking and pedestrian accessibility issues are satisfactorily addressed.”

5.7. The proposals for a District Centre at Kingswood including additional development

land within its boundary, are to reflect the draw of the existing shopping area and its role, if modest, in service provision. The proposed designation for additional development is to capture some of the comparison retail market share allowance outside the city centre and expenditure within the sub-region.

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5.8. The main retail-related points raised and the response from the Council are shown below.

a) Issue raised: There is enough capacity within the City Centre to accommodate

projected additional comparison retail within the Plan period. HCC Response: At the time the Area Action Plan Development Options document was published (2012), there was still some uncertainty about the large city centre Quay West retail commitment which, it was estimated, could absorb a significant proportion of the 15-year projected expenditure growth for the city. However, it was considered that this scheme would not come forward until later in the plan period and in the interim, there was some projected market share which it was deemed could acceptably be absorbed by new floorspace within an expanded Kingswood District Centre. The position for the city centre is now more clear as only a much smaller proportion of retail is likely to come forward as part of the scheme west of Princes Quay, with much of the land now devoted to a new large venue for the city. There are no clear alternative plans within the city centre to accommodate city-wide projected comparison retail market share. This therefore reinforces the approach taken in the AAP.

b) Issue raised: The evidence underpinning the Plan (Retail and District Centres Study) doesn’t support the proposed retail expansion at Kingswood, in particular due to the potential of it harming the City Centre viability and vitality (where there is already a significant empty unit rate) and nearby District Centres. The boundary of the District Centre should be limited to existing retail area and any proposals outside the District Centre should be subjected to retail impact and sequential tests. HCC Response: The Hull Retail and District Centres Study 2013 does support potential for new floorspace to be developed at Kingswood. However it does also highlight qualitative issues to overcome, in particular, the effect of expansion of Kingswood on retailer decisions – whether to relocate to Kingswood or to open a further outlet. This could be a particular problem where this affects stores that function as key anchors to city centre footfall and vitality and viability. The study suggests that if expansion is ultimately considered acceptable, a clear strategy would necessarily be required to ensure appropriate controls are put in place to prevent unwanted relocations of retailers from the city centre and to give clarity to city centre investors as to how future vitality and viability could be safeguarded in the medium to long term when city centre developments could be more likely to come on stream, and to provide a clear message in the face of lease renewals with for example some leaseholds due to expire within St Stephen’s shopping centre by 2018. This need to consider the qualitative nature of individual proposals, in addition to the quantitative capacity for floorspace, is the intention of including criteria within the AAP policy. Such impact considerations have taken place recently with the application from Next for a garden/home store which is being recommended for approval to Planning Committee, although this application was considered in the existing policy context, with the AAP considered as a material consideration; of the site being edge of / out of centre and therefore was required to consider a sequential and impact test. The assessment of this application was considered on the basis of the current evidence that supports the AAP, and appropriate controls regarding relocation are recommended to be part of a permission. Page 18 of 268

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c) Issue raised: The impact assessment of additional retail at Kingswood is flawed (Retail and District Centres Study) because it assumes uses of a typical District Centre, not large plate comparison retail. HCC Response: The assumption made for the impact assessment of additional retail at Kingswood is based on a scenario where there is a large proportion of comparison retail occupying the site i.e. 20,000sqm and so reflects the proposals likely to come forward.

d) Issue raised: The proposals are contrary to the role of a District Centre; only retail which meets local needs should be allowed. HCC Response: A District Centre serves more than the local area and more than meeting local needs. It is a 2nd tier centre in the centres hierarchy, just under the City Centre and therefore has a catchment area wider than a neighbourhood. Local day-to-day needs are met at Kingswood with both the proposed District Centre (where the existing shopping area is located) and Local Centres – with one completed at Kingswood Parks and another one proposed as part of new development on the eastern side of Kingswood, on Wawne Road. Additional development within the District Centre will help retain within the city some of the expenditure projected to be lost to Beverley Flemingate.

5.9. It is considered that the Kingswood District Centre proposals set out in the AAP are

sound and no change is put forward as a result of these representations. An examination of the Plan will take place in due course to resolve the main issues raised during this consultation (subject to the Inspector selecting these issues).

Flood risk

5.10. There is a relatively small number of flood risk concerns from residents that arose

from this consultation (5 specific comments were made) compared with previous stages of the Plan preparation. The general concern is that development at Riverbank is located in the high hazard flood risk zone and fear that new development at Kingswood will increase surface water flood risk overall. East Riding of Yorkshire Council and the Environment Agency have been involved in the preparation of the Plan and have made formal comments but with no objections with regards to flood risk. However, this is considered a main issue due to some concerns still being raised.

5.11. The main flood risk-related points raised and the response from the Council are shown below.

a) Issue raised: Riverbank is located in the high hazard flood risk zone and that new

development at Kingswood will increase surface water flood risk overall. HCC Response: The Area Action Plan recognises the flood risk at Kingswood – there is a detailed Flood Risk Assessment as part of the evidence base of the Plan and the Council has worked with the Environment Agency to determine the necessary mitigations to enable housing development land allocations in the Plan. The flood risk measures incorporated in the AAP include SuDS to ensure that development does not increase the risk to both existing and proposed development. This is through solutions which store any surface water on site Page 19 of 268

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before discharging at a restricted rate into the existing drainage system. At present any surface water on the undeveloped land will go unrestricted into the drainage system so the creation of a formal drainage system will improve the situation. The aquagreen areas (water storage areas) are provided for extreme flood events or very intense summer storms where the surface water cannot access the sewer system quickly enough and starts to pond. The aquagreens will provide a safe area for water to be stored until the sewer system can accept the flows. The AAP proposes improving the flood defences as part of housing development at Riverbank that will ensure that the flood risk from the river will be managed for the lifetime of any new development, including the reduction of the risk of breach. The work will be done alongside the Environment Agency’s existing scheme to improve the River Hull defences and the work coming out of the River Hull Integrated Catchment Strategy.

b) Issue raised: East Riding of Yorkshire Council recommends that a geophysical survey of the left bank of the River Hull is undertaken, covering any part that is within the breach zone of the proposed development to ensure that the conditions are fit for purpose and if not, that remedial works are undertaken. HCC Response: The AAP proposes the improvement of the defence at Kingswood prior to housing development at Riverbank. Before any defence works can start, the planning application and the Works in Rivers Consent processes will need to take place. It is likely that a legal agreement between the developer and the Environment Agency (EA) will need to be established. These processes will ensure that the relevant surveys are undertaken (the EA has welcomed the East Riding’s suggestion) so that the existing core is structurally sound and if not, remedial work takes place, before the improvement works to the defence can be commenced. A minor change (see Proposed Minor Change CH34 in Appendix B) is proposed to the plan to address this comment.

c) Issue raised: East Riding of Yorkshire Council asks that any design for surface water management and disposal should consider overland flows from the Holderness Drain via Crofts Drain then Engine Drain when the design capacity of it watercourses and ancillary structures are exceeded. HCC Response: the development will not have any effect on Engine Drain in terms of flow capacity, in fact putting in formal drainage systems and SUDs will alleviate surface water flooding by assisting with flows. As the Lead Local Flood Authority, the Council will require a Drainage Impact Assessment with the full planning application which will include assessing effects on surrounding areas. The Kingswood Flood Risk Assessment has concluded that the site can be developed without increasing flood risk elsewhere either from the River Hull or Holderness Drain.

d) Issue raised: the Environment Agency requires that the provision of an improved defence at Riverbank should be in place, in full, prior to the occupation of any dwellings at Riverbank [as opposed to wording in AAP which says: “Detailed housing proposals will need to demonstrate Ithat ...the phasing of the flood defences protects the development at all time during construction..” (Policy KAAP11 C.ii)].

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HCC Response: agree; proposed minor change is put forward for submission with the Plan (See Proposed Minor Changes CH32 and CH35 in Appendix B of this report).

e) the Environment Agency points out that the sequential test shows that it appears to be more than 15 years’ capacity for housing outside Flood Zone 3 a (iii) (as defined in the Hull SFRA) and the Council needs to consider avoiding allocations within this zone. HCC Response: The Kingswood Sequential Approach Report used the most up-to-date city-wide new Local Plan’s objectively assessed housing need at the time of publication (640 dwellings per year on average) to work out how much land will be needed over the next 15 years and how far the land supply within lower risk flood zones can accommodate this need, and hence whether land at Riverbank in Kingswood is needed (it is located in the high risk flood zone). The assessment shows that reasonably available land within lower flood risk zones represents a supply that will last 14.2 years, but if taking account of windfall sites (assumption of 50 dwellings per year), then it increases to 15.6 years. The sequential test was categorically passed at the time the Local Plan published housing figure was published in May 2014 with 760 dwellings per year on average. The evidence was subsequently updated in the spring 2015 with the lower figure of 640. The Local Plan figure has now reversed to 760 after consideration of projected demolitions during the Plan period and of the accumulative effects of the proposed Local Plan policies. The Kingswood Sequential Approach Report has subsequently been updated to reflect this change. As a result the need for land within higher flood risk zones (including high hazard) is categorically required to meet the housing need of the city as reasonably available land within lower flood risk zones represents a supply that will only last 10.4 years (and 11.4 years if including windfall sites). Approximately 4-year worth of land supply will need to be provided within the high hazard flood zone.

f) Development within the Wawne View site should be phased with lower risk land

developed first. HCC Response: The AAP proposals minimises the proportion of housing development within the high hazard flood zone at Wawne View with the designation of a new open space in the part of the site that is at most risk of flooding. As a result, a small proportion only of the development land at Wawne View (around 10%) is located within the high risk zone. However, this parcel of land will be developed at an early stage due to its location adjacent to the new link road and on the edge of existing housing with the infrastructure for development already in place.

Transport 5.12. Traffic and parking concerns have been raised throughout the preparation of the

Kingswood AAP. There are still concerns that proposed development will create too much traffic and that proposed transport infrastructure improvements will not be sufficient. For these reasons, the transport issue has to be addressed. 14 specific comments about transport were received.

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5.13. The main flood transport points raised and the response from the Council are shown below.

a) Issue raised: general concern from some residents that the proposed

development will create too much traffic and that proposed transport infrastructure improvements will not be sufficient in particular access from Beverley Road (with the suggestion of an additional road from the west), access to the Kingswood centre at the Roebank and ‘Asda’ roundabouts and the bottleneck effect at the Wawne Road roundabouts by the Kingswood Academy. HCC Response: The current road infrastructure at Kingswood Parks was designed to accommodate residential development and retail/services facilities but it seems that the traffic which is generated today was underestimated at the time. The AAP puts forward a number of transport infrastructure mitigations including the improvement of roundabouts in the Kingswood Centre area, both roundabouts on Wawne Road by the Kingswood Academy and a new link road between the western and eastern parts of Kingswood, and eventually Wawne Road/North Bransholme. These mitigations have been drafted according to a model used in the Kingswood Transport Assessment, assuming additional development (for the sake of the modelling, the land uses which generate most traffic were applied i.e. retail, employment and housing) on the undeveloped sites.

b) Issue raised: more off-road parking/lower housing density is required HCC Response: No specific parking standard is proposed in the Area Action Plan. The city-wide standard applies which varies according to the type of housing. At Kingswood, the majority of housing is semi-detached and the requirement is 2 spaces per dwelling (1.5 for terraced). A mix of both on-street parking and within the curtilage of the property is proposed within the AAP to ensure that enough car parking spaces are provided overall. The AAP requires that on-street parking is designed so that parked cars do not dominate the streetscape but are integrated into the overall street design, bearing in mind the issues experienced by residents at Kingswood Parks before the double yellow lines were established. The AAP also acknowledges the need for larger garages (see paragraph 11.11 of the AAP). Larger garages could encourage residents to use them.

c) Issue raised: East Riding of Yorkshire Council (ERYC) is concerned that the AAP’s Transport Assessment suggests a relatively low impact on the Dunswell roundabout even though there is a 33% increase in trips. ERYC advises that further capacity enhancements may be needed and suitable contribution would be required. Proposes to explore jointly funding opportunities. ERYC ask that the delivery of the Dunswell roundabout is included in the AAP with indication of cost and funding. HCC Response: ERYC carried out an appraisal of the Dunswell roundabout in 2012 but excluded the AAP from the existing and estimated future traffic and recommended a relatively straightforward signalisation scheme. The Kingswood Transport Assessment utilised the same existing geometry parameters previously established in the ERYC study but more properly included for additional future AAP traffic which was added to the base + ERYC development traffic flows. The Dunswell Junction was then tested using industry standard TRANSYT software Page 22 of 268

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which established that the ERYC proposed signalisation scheme at the existing junction would adequately accommodate all the base + ERYC development + AAP traffic flows. In running this software analysis, particular attention was paid to ensuring that the internal highway links within the signalised roundabout itself were never allowed to become over congested. The Kingswood Transport Assessment did take account of the Kingswood projected traffic growth.

Schools places

5.14. Very few comments (4 comments, among which 1 resident only objects to the

proposals) relate to school places. It is considered that they raise an important issue. The points raised and the response from the Council are shown below. a) Issue raised: The proposed number of primary school places is insufficient and a

new secondary school is needed to reflect better the projected population. HCC Response: The AAP sets out the required primary places associated with new development at Kingswood: at Wawne View, based on the 1,650 proposed dwellings, a minimum of 315 additional places will be provided with an extension of Broadacre Primary School. At Riverbank, based on the 450 proposed dwellings, 105 additional places will be provided with an extension of Kingswood Parks Primary. All other development already has full planning permission (Kingswood Parks North) including school provision requirements agreed in the outline planning permission of 2004. Should an additional need in the future arise, options will be explored including expanding surrounding schools. With regards to secondary school provision, Kingswood is well placed geographically with the Kingswood Academy on its doorstep. School place needs will be accommodated within the surplus capacity of secondary schools in the northern part of Hull, including the Kingswood Academy, Winifred Holtby School Technology College and the Thomas Ferens Academy. It is considered that this approach is sound and does not need changing.

b) Issue raised: The Kingswood Parks Development Company broadly support the AAP policies, but they question the inclusion of school place figures in policy as the exact need may change in the long term. HCC Response: It is considered that including the figures in policy is the correct approach to ensure that a minimum of places are provided in the future and to give certainty to the developers as to what is required of them (additional places will be funded by housing developers). The need for these places is demonstrated in the background documents which underpin the AAP.

Process

5.15. There are 2 objections made relating to the process that were put forward by the

Wykeland Group (Quay West, land at Fruit market and Dry Dock)

a) Issue raised: the AAP process is unsound because only one previous stage of consultation with no testing of a preferred option has taken place and the AAP is produced ahead of Local Plan.

HCC Response: the consultations which took place are considered adequate; they included an initial Issues consultation, then Development Options, before a Page 23 of 268

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final draft was issued. The testing of options took place with the consultation on Development Options. The Development Options Assessment Report, published in June 2015 as a background document, justifies the choice of the preferred option, taking account of results from previous consultations.

b) Issue raised: the AAP process is unsound because the AAP is produced ahead

of Local Plan. HCC Response: The two Council’s AAPs (Newington and St Andrew’s and Holderness Road Corridor) were successfully prepared in advance of a new Local Plan. In addition, the evidence which underpins the AAP includes city-wide reports (also used for the emerging Local Plan) to ensure that strategic issues affecting Kingswood are adequately addressed. This is considered a sound approach.

Next steps

5.16. The submission of the Kingswood AAP, proposed minor changes and other supporting documents to the Secretary of State is anticipated to take place on 30th November 2015.

5.17. A 6-week consultation will take place to signal the submission of the Kingswood AAP and to make all submission documents available to the public (on-line and hard copies at the Wilson Centre).

5.18. The Planning Inspectorate will then set the date for a hearing, usually approximately

3 months after submission; after which a report will be issued with recommendations (usually 3 months after the hearing) before the Plan can be adopted.

5.19. The examination process will be supported by a Programme Officer appointed by

the Council to support (independently) the Planning Inspector. The examination can be an intensive process and will require a range of expertise to defend the Kingswood AAP consistently throughout the examination process. It is expected that staff from several Council’s sections (already involved in previous stages) in addition to City Planning will be involved in preparatory work and/or participation to the examination, including Major Projects (for school related expertise); City Regeneration and Policy (Transport/traffic issues); City Neighbourhoods and Housing (in particular in relation to the Lead Developer Partner development at Kingswood); and StreetScene (Transport and Asset Management and Parks and Open Spaces Development). Timetable

5.20. The Area Action Plan’s timetable below shows where this ‘Submission’ stage sits

and future stages.

Stage Date

Issues consultation

Autumn 2011

Development Options consultation

Winter 2012-13

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Publication consultation

Summer 2015

Submission to the Secretary of State

Autumn 2015

Independent examination

Spring 2016

Adoption

Summer 2016

6. Options and Risk Assessment

The options available to Members are:

a. To agree the submission of the Kingswood AAP and proposed minor changes to it to the Secretary of State for an examination. This will enable the AAP process to progress towards adoption without delay, and thus meet the targets as set out in the Council’s Local Development Scheme, a work programme of plan production.

b. To agree the submission of the Kingswood AAP but subject to amendments to the minor changes. This should still enable the AAP process to progress towards adoption without delay, and thus meet the targets as set out in the Council’s Local Development Scheme, a work programme of plan production.

c. To disagree with the submission of the Kingswood AAP because significant

changes to the Plan are required. In this case, an additional public consultation on the significant proposed changes would need to take place before submission and there would also be a risk that the significant changes would make the AAP unsound (e.g. not justified). This would delay the progress of the Area Action Plan, also compromising the relationship and agreement with the Kingswood Parks Development Company, who are closely involved in the plan’s preparation. As a consequence, the targets set out in the Council’s Local Development Scheme would not be met and, more importantly, the outcomes of the Area Action Plan would not be achieved.

7. Consultation

7.1 As part of the Area Action Plan process, a number of public consultations took place

including an initial public consultation on ‘Issues’ in autumn 2011, a subsequent consultation on ‘Development Options’ in winter 2012-13, and a consultation on the Published Kingswood AAP (i.e. final draft) in summer 2015. 9,000 summary booklets were sent to all residents in Kingswood and surrounding areas; 319, then 413 and finally 58 responses were received respectively. The responses to these consultations were taken into account in drafting the respective iterations of the AAP.

7.2 North Carr Area committee, Planning Committee and Cabinet considered and

endorsed the different stages of the AAP, including consultations. 7.3 Prior to the Cabinet meeting on 23rd November 2015, this report is to be considered

by the following committees: Planning Committee on 17th November 2015; North Page 25 of 268

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Carr Area Committee on 18th November 2015; and the Economic and Regeneration Overview and Scrutiny Commission on 17th November 2015. Comments from these committees will be reported to Cabinet on the day of the meeting.

8. Comments of the Town Clerk (Monitoring Officer)

8.1. “Submission of the Kingswood AAP to the Secretary of State for public examination,

subject to any minor amendments resulting from responses to consultation referred to in this report, is the next stage in the statutory procedure for adoption of the plan contained in the Planning and Compulsory Purchase Act 2004 and the Town and Country Planning (Local Planning) (England) Regulations 2012. The adopted Kingswood AAP will have Development Plan status and so will be crucial in guiding planning decisions for the area. Therefore, the recommendations at paragraph 2 of this report are supported”.

9. Comments of the Section 151 Officer 9.1. “This is a planning decision with no apparent direct financial consequences.

Presumably in the detail of the process that has been undertaken up to now the advantages of having an AAP, including any financial ones, have been explored”.

10. Comments of HR City Manager and compliance with the Equality Duty 10.1. “There are no staffing issues, the plan would need to have a full equality impact

assessment reviewed alongside this report”.

11. Comments of Overview and Scrutiny 11.1 “This report is due to be considered by the People and Communities Overview and

Scrutiny Commission on Thursday, 12 November, 2015. Any comments or recommendations agreed by the Commission will be tabled at November Cabinet for consideration”. (Sc4583)

12. Comments of the Portfolio Holder for Energy City

12.1 “A lot of detailed work has gone into the production of the Kingswood AAP. The

technical, retail, open space and flooding reports support this submission version. Kingswood will continue to develop and change over at least the next 15 years and it is important this plan helps shape this positive change. I fully support the process undertaken in the production of the AAP and the policies and allocations within it”.

Alex Codd, City Planning Manager Contact Officer: Florence Liber Telephone No.: 01482 612391 Officer Interests: None Background Documents: Published Kingswood Area Action Plan – June 2015

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Report of consultation on the Published Kingswood Area Action Plan by respondent – September 2015 Sustainability Appraisal of the Kingswood Area Action Plan, May 2015

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Implications Matrix

Author: Name: Florence Liber Service Area: Planning

Contact details: Tel. 01482 612391 Email: [email protected]

Background Papers: Kingswood Area Action Plan – Publication document

Is this a Key Decision: If yes, is it in the Forward Plan?

Yes Yes Forward Plan Ref: 0052/15

Will further decisions be required? If yes please outline the timetable:

Yes, following the Planning Inspectorate report if found sound, the Plan will need adopting – Autumn 2016.

Is this report proposing an amendment to the budget or policy framework?

No

Have the financial (including capital) implications been agreed with the Head of Corporate Planning and Finance?

Yes

Have value for money considerations been accounted for?

Yes

Has the report been approved by the relevant CST/HoS?

Yes

Has the relevant Cabinet Member been consulted and any comments documented?

Yes

Has Overview and Scrutiny been consulted?

12th November 2015

Have Area Committees been consulted? 18th November 2015

Have the legal implications been agreed with the Head of Legal and Democratic Services?

Yes

Are there any procurement/commercial issues/implications?

Yes. The sale of a site belonging to the council within the Area Action Plan boundary is subject to a procurement exercise. This is being dealt separately by the Housing Renewal section. Procurement for highway works will also need undertaking by the Council and/or Kingswood Parks Development Company.

Have communications issues been cleared by Communications and Marketing?

Not yet

Has an Equalities Impact Assessment been carried out in relation to the subject of the report?

Yes – available as part of the Plan’s Sustainability Appraisal (101 pages) at http://hullcc.limehouse.co.uk/portal/planning/kapp/kaap-p

Are there any equalities and diversity implications?

No

Are there any community safety implications? Has regard been paid to Section 17 of the Crime and Disorder Act?

Yes and regard has been given to ‘designing out’ crime

Are there any environmental and climate change issues/sustainability implications?

Yes. A sustainability appraisal is available if requested. Unless clearly stated otherwise, the proposals put forward in the ‘Publication’ document are sustainable.

Are there any Health and Safety No Page 28 of 268

http://hullcc.limehouse.co.uk/portal/planning/kapp/kaap-p

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implications?

Are there any human rights implications? No

How does this report contribute to Council/LAA/Area priorities?

The sustainable development of the Kingswood area will contribute to the delivery of the City Plan.

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APPENDIX A Summary of the issues raised as a result of consultation on the Published Kingswood Area Action Plan (AAP) and responses from Hull City Council (HCC) Only objections and suggested changes are summarised below. Most of supportive representations with no proposed changes are not shown here. Supportive organisations and organisations which responded without specific comment and which are not mentioned below include: Natural England; Historic England; Highways England; National Grid; Hull CVS; Marine Management Organisation; and North East Lincolnshire. References to ‘AAP Submission Documents’ are made in the table below when relevant; these documents are available on-line at http://hullcc.limehouse.co.uk/portal/planning/kapp/kaap-p. The representation reference (e.g. KAAP-P35) associated with the issues below can be crossed-referred to the full comments, which are available separately on the Council website at: http://hullcc.limehouse.co.uk/portal/planning/kapp/kaap-p

Respondent

Summary of comment

Response from HCC

District Centre / retail expansion

(Section 10 and Policy KAAP3 - Jobs, shops/services and community facilities and Section 18 and Policy KAAP10 - Kingswood Centre)

KAAP-P35 (Kingswood Parks Development Company) and KAAP-P42 (Next Plc)

Kingswood Parks Development Company and Next Plc, landowner and developer respectively (and which has submitted a planning application for a home/garden Next) for Kingswood Centre development land support the retail expansion.

Noted.

KAAP-P40 (Hull BID)

Hull BID (Business Improvement District) objects to the proposed expansion of the retail at Kingswood, being in direct competition to retailers in Hull City Centre – where there already is an empty unit rate of around 10% and footfall is diminishing, and will have a detrimental effect on the city centre and could impact negatively on any planned and future investment decisions.

Evidence does support potential for new floorspace to be developed at Kingswood. However it does also highlight qualitative issues that the plan needs to consider, as well as quantitative trade draw. The Hull Retail and District Centres Study 2013 (see AAP Submission Document E.35) highlighted significant qualitative issues to overcome. In particular the effect of expansion of Kingswood on retailer decisions – whether to relocate to Kingswood or to open a further outlet. This could be a particular problem where this affects stores that function as key anchors to city centre footfall and vitality and viability. The study suggests that if expansion is ultimately considered acceptable, a clear strategy would necessarily be required to ensure appropriate controls are put in place to prevent unwanted relocations of retailers from the city centre and to give clarity to city centre investors as to how future vitality and viability could be safeguarded in the medium to long term when city centre developments could be more likely to come on stream, and to provide a clear message in the face of lease renewals with for example some leaseholds due to expire within St Stephen’s shopping centre by 2018. This need to consider the qualitative nature of individual proposals, in addition to the quantitative capacity for floorspace, is the intention of including criteria within the AAP policy (Policy KAAP10 – Kingswood Centre). Such impact considerations have taken place recently with the application from Next for a garden/home store which is being recommended for approval to Planning Committee, although this application was considered in the existing policy context, with the AAP considered as a material consideration; of the site being edge of / out of centre and therefore was required to consider a sequential and impact test. The assessment of this application was considered on the basis of the current evidence that supports the AAP, and appropriate controls regarding relocation are recommended to be part of a permission. It is considered that the Kingswood District Centre proposals set out in the AAP are sound and no change is put forward as a result of this comment/representation.

KAAP-P6 Wykeland (interest in Quay West/Prince’s Quay extension, At the time the Area Action Plan’s Development Options document

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Respondent

Summary of comment

Response from HCC

(Wykeland) land around Fruit Market and land at Dry Dock) is against significant retail expansion at Kingswood on the ground that:

- it is not justified: the evidence underpinning the AAP does not support significant retail expansion; city centre has capacity to accommodate new retail; would be contrary to the role of a District Centre/more services are needed rather than more retail.

- it is inconsistent with national policy: will be at the expense of employment development which is required as part of creating sustainable communities in this part of Hull; will undermine Council’s objective of promoting vitality and viability of other centres including city centre; undermine regeneration of the city centre. The AAP should be changed with no more retail apart from that which meets local needs; a boundary encompassing existing retail and leisure only; and strict test for planning applications, including sequential and impact test, and requirement for masterplanning for other District Centre uses, so that they are integrated with the existing and leisure facilities..

was published (2012), there was still some uncertainty about the large city centre Quay West retail commitment which, it was estimated, could absorb a significant proportion of the 15-year projected expenditure growth for the city. However, it was projected that this scheme would not come forward until later in the plan period and in the interim, there was some projected market share which it was deemed could acceptably be absorbed by new floorspace within an expanded Kingswood District Centre. The position for the city centre is now more clear as only a much smaller proportion of retail is likely to come forward as part of the scheme west of Princes Quay, with this now mainly devoted to a new large venue for the city. There are no clear alternative plans within the city centre to accommodate city-wide projected comparison retail market share. This therefore reinforces the approach taken in the AAP. Also see response to representation KAAP-P40 above. It is considered that the Kingswood District Centre proposals set out in the AAP are sound and no change is put forward as a result of this comment/representation.

KAAP-P41 (Hull city centre stakeholders and North Point District Centre)

Hull city centre stakeholders (including Prospect Centre, St Stephen’s Shopping Centre, Princes Quay’s Shopping Centre, Quay West, Fruit Market and Hull BID) and North Point District Centre are concerned that the AAP will threaten planned and future investment decisions and have significant impact on the vitality and viability of the city and nearby District Centres. There is no robust evidence for the retail proposals at Kingswood (in direct contrast with the Hull Retail and District Centres Study). Not appropriate strategy for the area: proposals will not contribute to improve Kingswood Centre as a District Centre.

See response to representation KAAP-P6 above. It is considered that the Kingswood District Centre proposals set out in the AAP are sound and no change is put forward as a result of this comment/representation.

KAAP-P43 (Princes Quay Estates Limited)

Princes Quay Estates Limited think that the AAP is unsound because:

the proposed District Centre will not meet the function of a District Centre as defined in national guidance (not justified and inconsistent with national policy); the designation is used to facilitate out-of-town retail development;

the impact assessment (Hull Retail and District Centres Study) was undertaken on the basis of development typical of a District Centre, not an out-of-town retail; park which would increase the quantum of trade and level of impact beyond that stated; and fundamentally, the Retail Study does not provide evidence which supports the creation of an extended out-of-town retail park; the proposals are not justified because they don’t represent the most appropriate strategy;

it is not effective because Policy KAAP10 is not capable of ensuring acceptable development within a district centre or controlling the impact of its development on the city centre; it is contrary to NPPF’s (paragraphs 23-27).

The District Centre designation/expansion should be removed from the AAP. If not, it should be reduced size. If a District is to be designated, it should be defined and controlled to function as such with defining and limiting the comparison retail to an appropriate type/level and requirement of a sequential test or impact assessment to proposals in excess of the stated limits.

In response to the 1st point: a District Centre serves more than

the local area and more than meeting local needs. It is a 2nd

tier centre in the centres hierarchy, just under the City Centre and therefore has a catchment area wider than a neighbourhood. Local day-to-day needs are met at Kingswood with both the proposed District Centre (where the existing shopping area is located) and Local Centres – with one completed at Kingswood Parks and another one proposed as part of new development on the eastern side of Kingswood, on Wawne Road. Additional development within the District Centre will help retain within the city some of the expenditure projected to be lost to Beverley Flemingate.

In response to the 2nd

point: the assumption made for the impact assessment of additional retail at Kingswood is based on a scenario where there is a large proportion of comparison retail occupying the site i.e. 20,000sqm and so reflects the proposals likely to come forward (see the Hull Retail and District Centres Study 2013, AAP Submission Document E.35).

In response to the 3rd and 4

th points: see response to

representation KAAP-P6 above.

It is considered that the Kingswood District Centre proposals set out in the AAP are sound and no change is put forward as a result of this comment/representation.

KAAP-P44, (Legal & General)

Legal & General, owner of Kingswood Retail Park object to the boundary of the District Centre – should be defined by existing centre (Kingswood Retail Park) as there is no

See response to representation KAAP-P6 above. It is considered that the Kingswood District Centre proposals set out in the AAP are sound and no change is put forward as a result of this

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Respondent

Summary of comment

Response from HCC

justification to include more land than Site A and any proposals outside the District Centre boundary should be subjected to retail impact and sequential tests.

comment/representation.

Flood Risk and Groundwater Protection

(Section 13 and Policy KAAP6 – Flood Resilience and Groundwater Protection and Section 19 and Policy KAAP11 – Riverbank)

KAAP-P14 Concerns over development being in ‘flood plain’ The Area Action Plan recognises the flood risk at Kingswood – there is a detailed Flood Risk Assessment (see AAP Submission Document E.45) as part of the evidence base of the Plan and the Council has worked with the Environment Agency to determine the necessary mitigations to enable housing development land allocations in the Plan. The flood risk measures incorporated in the AAP include SuDS to ensure that development does not increase the risk to both existing and proposed development. This is through solutions which store any surface water on site before discharging at a restricted rate into the existing drainage system. At present any surface water on the undeveloped land will go unrestricted into the drainage system so the creation of a formal drainage system will improve the situation. The aquagreen areas (water storage areas) are provided for extreme flood events or very intense summer storms where the surface water cannot access the sewer system quickly enough and starts to pond. The aquagreens will provide a safe area for water to be stored until the sewer system can accept the flows. The AAP proposes improving the flood defences as part of housing development at Riverbank that will ensure that the flood risk from the river will be managed for the lifetime of any new development, including the reduction of the risk of breach. The work will be done alongside the Environment Agency’s existing scheme to improve the River Hull defences and the work coming out of the River Hull Integrated Catchment Strategy.

KAAP-P24 Concern that there isn’t sufficient measures to prevent flooding apart from flood defence.

See response to representation KAAP-P14 above.

KAAP-P28 Not clear how the proposals would affect the land surrounding the Croft [area south of Bude Park] in terms of surface water management. Need to ensure that flood strategies are reviewed regularly for Kingswood and surrounding areas.


KAAP-P31 Development at Wawne View will increase surface water flood risk to Kingswood Parks and should not be phased first. Conversely, phasing of Riverbank’s housing should not be left last as development at this site will increase the protection of existing homes (with replacement defences).

Detailed proposals for Wawne View will have to demonstrate at planning application stage that surface water run-off is reduced as set out in Policy KAAP6 – Flood resilience and groundwater protection of the AAP, therefore, development at Wawne View will not increase surface water flood risk to Kingswood Parks. The replacement defences are required for development which will be located in closer proximity of the River. The protection of existing homes is considered adequate by the Environment Agency even though Kingswood will benefit overall if the improvement of protection.

KAAP-P48 Against strengthening the river embankment. The proposed improvements to the flood defences are required for housing development at Riverbank. Land located in high flood risk zones such as the Riverbank site will be required to meet the city-wide need for new housing in the next 15 years, subject to appropriate flood risk mitigations. This is because the reasonably available housing land supply located within lower risk flood zones within the city will not be sufficient to meet this need.

KAAP-P59 (Environment Agency)

The provision of a replacement defence at Riverbank should be in place, in full, prior to the occupation of any dwellings at Riverbank. Does not agree with the temporary defence while development progresses.

Clarify that increasing the height of the flood defence in the future cannot be ruled out.

Agree: proposed minor changes are put forward for submission with the Plan (See Proposed Minor Changes CH32 and CH35 in Appendix B of this report).

Agree: proposed minor change is put forward for submission with the Plan (See Proposed Minor Change CH33 in Appendix B of this report).

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Respondent

Summary of comment

Response from HCC

Need to clarify that the flood defence will need to provide a standard of protection at least equivalent to the 1 in 100 event plus an appropriate allowance for climate change (accounting for the lifetime of development). The comment is also relevant for other flood mitigation measures.

Recommends requirement to provide water efficient devices and measures to reduce water consumption.

Need to clarify the drawbacks of culverting (the Engine Drain) including the maintenance issue to prevent blockages.

Development within the Wawne View site should be phased with lower risk land developed first.

Other minor suggestions were put forward which generated a number of minor changes

The sequential test should be revisited to include more information and assessment about housing market areas

The sequential test shows that it appears to be more than 15 years’ capacity for housing outside Flood Zone 3 a (iii) (as defined in the Hull SFRA) and the Council needs to consider avoiding allocations within this zone.

The two separate Exception Test documents should be conjoined or better connected.


This is not considered necessary in planning policy as it is already covered by building regulations.


The AAP proposals minimises the proportion of housing development within the high hazard flood zone at Wawne View with the designation of a new open space in the part of the site that is at most risk of flooding. As a result, a small proportion only of the development land at Wawne View (around 10%) is located within the high risk zone. However, this parcel of land will be developed at an early stage due to its location adjacent to the new link road and on the edge of existing housing with the infrastructure for development already in place.

See minor changes CH3, CH6, CH18, CH19, CH20, CH21 and CH37 (in Appendix B of this report).

It is considered that the city-wide approach is right for Kingswood in the context of a relatively small local authority area. However, the sequential test (see the Kingswood Flood Risk Sequential Approach Report, AAP Submission Document E.44) has been revisited in light of updated evidence in preparation of the Hull Local Plan’s Preferred Documents, currently on public consultation. The update consists of a change in the projected average annual housing provision (more detail below), and an update of the Strategic Housing Land Availability Assessment (from 2014 to 2015).

The Kingswood Sequential Approach Report (AAP Submission Document E.44) used the most up-to-date city-wide new Local Plan’s objectively assessed housing need at the time of publication (640 dwellings per year on average) to work out how much land will be needed over the next 15 years and how far the land supply within lower risk flood zones can accommodate this need, and hence whether land at Riverbank in Kingswood is needed (it is located in the high risk flood zone). The assessment shows that reasonably available land within lower flood risk zones represents a supply that will last 14.2 years, but if taking account of windfall sites (assumption of 50 dwellings per year), then it increases to 15.6 years. The sequential test was categorically passed at the time the Local Plan published housing figure was published in May 2014 with 760 dwellings per year on average. The evidence was subsequently updated in the spring 2015 with the lower figure of 640. The Local Plan figure has now reversed to 760 after consideration of projected demolitions during the Plan period and of the accumulative effects of the proposed Local Plan policies. The Kingswood Sequential Approach Report has subsequently been updated to reflect this change. As a result the need for land within higher flood risk zones (including high hazard) is categorically required to meet the housing need of the city as reasonably available land within lower flood risk zones represents a supply that will only last 10.4 years (and 11.4 years if including windfall sites).Approximately 4-year worth of land supply would need to be provided within the high hazard flood zone.

It is considered that the cross references between the two documents are adequate.

East Riding of A geophysical survey of the left bank of the River Hull The AAP proposes the improvement of the defence at Kingswood

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Respondent

Summary of comment

Response from HCC

Yorkshire Council (KAAP-P46)

is undertaken, covering any part that is within the breach zone of the proposed development. If any part of the bank is found to less than condition grade 1 or 2 according to the Environment Agency National and River Sea Defence Condition Assessment Manual then remedial works should be undertaken; and

that any design for surface water management and disposal should consider overland flows from the area known as Stone Carr to the North, including for backwater effects from the Holderness Drain via Crofts Drain then Engine Drain as the most significant overland risk at this location is from the Holderness Drain Catchment when the design capacity of it watercourses and ancillary structures are exceeded.

prior to housing development at Riverbank. Before any defence works can start, the planning application and the Works in Rivers Consent processes will need to take place. It is likely that a legal agreement between the developer and the Environment Agency (EA) will need to be established. These processes will ensure that the relevant surveys are undertaken (the EA has welcomed the East Riding’s suggestion) so that the existing core is structurally sound and if not, remedial work takes place, before the improvement works to the defence can be commenced. A minor change (see Proposed Minor Change CH34 in Appendix B) is proposed to the plan to address this comment.

The development will not have any effect on Engine Drain in terms of flow capacity, in fact putting in formal drainage systems and SUDs will alleviate surface water flooding by assisting with flows. As the Lead Local Flood Authority, the Council will require a Drainage Impact Assessment with the full planning application which will include assessing effects on surrounding areas. The Kingswood Flood Risk Assessment (AAP Submission Document E.45) has concluded that the site can be developed without increasing flood risk elsewhere either from the River Hull or Holderness Drain.

Transport/Movement

(Section 11 and Policy KAAP4 - Connecting Places)

KAAP-P1, KAAP-P2, KAAP-P4, KAAP-P7, and KAAP-P32

Concerned about additional traffic that new development will generate and the need for improvement of the infrastructure including access from Beverley Road (KAAP-P1, KAAP-P2, KAAP-P4) and to the District Centre (KAAP-P4, KAAP-P7, KAAP-P32) and at the Wawne Road roundabouts by the Kingswood Academy (KAAP-P32). The proposed mitigations for the Roebank roundabout are not sufficient (KAAP-P7). There is a suggestion to build another access road to Kingswood from the west (KAAP-P2, KAAP-P4).

The current road infrastructure at Kingswood Parks was designed to accommodate residential development and retail/services facilities but it seems that the traffic which is generated today was underestimated at the time. The AAP puts forward a number of transport infrastructure mitigations including the improvement of roundabouts in the Kingswood Centre area, both roundabouts on Wawne Road by the Kingswood Academy and a new link road between the western and eastern parts of Kingswood, and eventually Wawne Road/North Bransholme. These mitigations have been drafted according to a model used in the Kingswood Transport Assessment (see AAP Submission Document E.42), assuming additional development (for the sake of the modelling, the land uses which generate most traffic were applied i.e. retail, employment and housing) on the undeveloped sites.

KAAP-P31 The new east-west road link will increase traffic congestion within Kingswood Parks.

The east-west link road between Kingswood Parks and Wawne View (and to Kesteven Way) is now open. This connection is essential for the direct access to community facilities such the District Centre and the health centre at Kingswood Parks. It also provides an additional exit from both areas (Kesteven Way area and Kingswood Parks), which is important in terms of traffic management. The opening of the east-west link road between Kingswood Parks and Wawne Road will enable a new bus route to the District Centre, which an essential facility for the wider community. These proposals are based on a detailed transport assessment that has been prepared to underpin the AAP, which assessed what transport infrastructure is needed to accommodate new development without causing traffic problems (see AAP Submission Document E.42).

KAAP-P31 New road links to surrounding areas (and the proximity of the proposed Local Centre to deprived areas as well as the prioritisation of Wawne View development) will reduce the attractiveness of the area to the target population.

See response above with regards to the new road links. With regards to the proposed Local Centre location on Wawne Road, it has been carefully considered through consultation with residents and supported by a viability assessment (see the Kingswood Development Area 1: Local Centre Assessment, AAP Submission Document E. 36). It is considered the appropriate way forward to ensure that local shops/services are easily accessible for the whole community in the area. With regards to the phasing of the Wawne View development, the rational for bringing forward the site before Riverbank is explained in paragraphs 9.15 and 9.17 of the AAP. In a nutshell, the release of the Wawne View site is needed to deliver wider regeneration objectives; in addition, the development of Wawne View will bring forward key infrastructure needed in this area (road link, Local Centre); it will also help keeping the momentum of the regeneration

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taking place in North Bransholme. Finally, this phasing is in accordance with the flood risk sequential approach where sites at lower risk should be developed first. Most land at Wawne View is at lower risk than Riverbank and should be developed first.

KAAP-P28 Concerned about increased use of main roads and resulting air and noise pollution in particular on the roads around Bude Park and therefore pollution tests should be completed to predict future impacts.

Pollution matters with regards to new development are addressed in the city-wide Local Plan (both the Hull Local Plan adopted in 2000 and the new Local Plan’s Preferred Options document).

KAAP-P47 (East Riding of Yorkshire Council)

Concerned that the AAP’s Transport Assessment suggests a relatively low impact on the roundabout even though there is a 33% increase in trips. ERYC advises that further capacity enhancements may be needed and suitable contribution would be required. Proposes to explore jointly funding opportunities.

The ERYC carried out an appraisal of the Dunswell roundabout in 2012 but excluded the AAP from the existing and estimated future traffic and recommended a relatively straightforward signalisation scheme. The Kingswood Transport Assessment (AAP Submission Document E.42) utilised the same existing geometry parameters previously established in the ERYC study but more properly included for additional future AAP traffic which was added to the base + ERYC development traffic flows. The Dunswell Junction was then tested using industry standard TRANSYT software which established that the ERYC proposed signalisation scheme at the existing junction would adequately accommodate all the base + ERYC development + AAP traffic flows. In running this software analysis, particular attention was paid to ensuring that the internal highway links within the signalised roundabout itself were never allowed to become over congested. The Kingswood Transport Assessment did take account of the Kingswood projected traffic growth.

Parking and Housing Density

(Section 11 and Policy KAAP4 - Connecting Places and Section 9 and Policy KAAP2 – Housing provision and Choice)

KAAP-P23 More off-road parking with lower housing density. No specific parking standard is proposed in the Area Action Plan. The city-wide standard applies which varies according to the type of housing. At Kingswood, the majority of housing is semi-detached and the requirement is 2 spaces per dwelling (1.5 for terraced). A mix of both on-street parking and within the curtilage of the property is proposed within the AAP to ensure that enough car parking spaces are provided overall. The AAP requires that on-street parking is designed so that parked cars do not dominate the streetscape but are integrated into the overall street design, bearing in mind the issues experienced by residents at Kingswood Parks before the double yellow lines were established. The AAP also acknowledges the need for larger garages (see paragraph 11.11 of the AAP). Larger garages could encourage residents to use them.

KAAP-P24 Parking in residential areas is an issue.


KAAP-P31 Need to lower housing density to accommodate more parking spaces. Even though the AAP identifies the current issue in Kingswood, the proposed density is as high as existing one.


Housing

(Section 9 and Policy KAAP2 – Housing provision and Choice)

KAAP-P14; KAAP-P22; KAAP-P23; KAAP-P28

Overdevelopment/ too many houses planned /density too high

More housing is needed in Hull to cater for the projected household growth. This is set out in the Updated Objectively Assessed Need for Housing in Hull (see AAP Submission Document E.29). Kingswood has been contributing a very significant proportion of the provision of housing in Hull and will need to continue to do so. Paragraphs 9.3 and 9.4 of the AAP (p.26) give more details. In addition, completing Kingswood as an urban extension will enable better infrastructure in the area, including new roads and a new park (see AAP Policies Map and Policy KAAP9: Wawne View on p.76 of the AAP). Finally, most of the Wawne View site is in a low flood risk zone and should be taken advantage of – i.e. built for vulnerable uses such as housing, as the majority of sites in Hull are at higher risk. The proposed average density (between 30 and 40 dwellings

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per hectare) is that of a suburban layout with scope for higher density near the Local Centres and lower density for larger homes.

KAAP-P28 Investigate other areas for development including derelict areas.

A city-wide thorough assessment of all potential sites has been carried out to select the housing land supply needed in the next 15 years (see the Strategic Housing Land Availability Assessment, AAP Submission Document E.30). This include ‘brownfield’ sites. When a site is ‘derelict’ sites may not be reasonably available within the 15-year period of the Plan and may need to be discounted if no funding is available to remediate it.

KAAP-P35 (Kingswood Parks Development Company)

Supports the AAP policies in particular those relating to the Kingswood Centre and Riverbank areas, although they feel that a strong argument could be made for the whole of Riverbank to be allocated for housing as opposed to retaining one third of the site for employment.

A compromise has now been reached with ‘Option 3’ (one third of employment and two third of housing) taken forward in light of evidence of respective housing and employment land needs. The Employment Land Review Update Report (see AAP Submission Document E.34) estimates that the whole site will not be needed for employment within the plan period but shows that some of it is likely to come forward within the plan period. Safeguarding some employment land (approximately the size of a small business park) at Kingswood will enable the creation of jobs near the biggest residential development in Hull, encouraging a more sustainable lifestyle where car trips to work are minimised.

School places

(Section 10 and Policy KAAP3 - Jobs, shops/services and community facilities)

KAAP-P31 The proposed number of primary school places is insufficient and should be revised to reflect better the projected population. The need for secondary school places should be addressed in the AAP with a proposed new secondary school.

The AAP sets out the required primary places associated with new development at Kingswood: at Wawne View, based on the 1,650 proposed dwellings, a minimum of 315 additional places will be provided with an extension of Broadacre Primary School. At Riverbank, based on the 450 proposed dwellings, 105 additional places will be provided with an extension of Kingswood Parks Primary. All other development already has full planning permission (Kingswood Parks North) including school provision requirements agreed in the outline planning permission of 2004. Should an additional need in the future arise, options will be explored including expanding surrounding schools. With regards to secondary school provision, Kingswood is well placed geographically with the Kingswood Academy on its doorstep. School place needs will be accommodated within the surplus capacity of secondary schools in the northern part of Hull, including the Kingswood Academy, Winifred Holtby School Technology College and the Thomas Ferens Academy (the surplus capacity is significant with approximately 1,400 places available). It is considered that this approach is sound and does not need changing. More detail is provided within the AAP’s Community Facilities Assessment (AAP Submission Document E.37).

KAAP-P17 Number of additional school places may be insufficient.



Broadly supports the AAP policies, but questions the inclusion of school place figures in policy.

It is considered that including the figures in policy is the correct approach to ensure that a minimum of places is provided in the future and to give certainty to the developers as to what is required of them (additional places will be funded by housing developers). The need for these places is demonstrated in the background documents which underpin the AAP.

Open space and sports/play facilities

(Section 12 and Policy KAAP5 – Green Infrastructure)

KAAP-P21 Playing fields too concentrated in Area 4, too far from Area 1.

Although there isn’t a playing pitch within the park (Area 1), an area of grass is proposed, providing space to ‘kick a ball’ – see Figure 17.3 Illustrative Park Layout on p.85 of the AAP. Playing pitches come typically in a set of 3, so that the cost of building changing rooms is justified, and this is needed for clubs to be able to use the facilities. Creating 3 playing pitches would not have left much space for other park areas, which are needed at the heart of the new

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Summary of comment

Response from HCC

housing development. Formal playing pitches will be provided instead at Bude Park and Wilberforce Wood – see Sections 20. Wilberforce Wood/Foredyke Green and 21. Bude Park of the AAP. There will also be a playing field as part of the extension of Broadacre Primary school. The AAP requires that such playing field is shared for community use (see policy KAAP3 - Jobs, shops/services and community facilities).

KAAP-P21 More recreational areas in Areas A and 1 Area A (Kingswood Parks) has already full planning permission and no more significant green spaces are planned as part of this area. However, a new park within Area 1 (Wawne View) and adjacent to Kingswood Parks is proposed in the AAP. It will serve the whole of the Kingswood community. Additional smaller green spaces are proposed within the Wawne View area e.g. greenways (see Policy KAAP9 – Wawne View of the AAP).

KAAP-P21 Against supermarket development at Foredyke Green (best at Local Centre)

Full planning permission is already granted. The AAP designates this site as open space for future use. However, planning permission was granted before the AAP was started. Should the development not come forward and the permission expires, any future application will need to comply with the AAP.

KAAP-P22; KAAP-P23

Insufficient green space (KAAP-P22; KAAP-P23) – could allocate Riverbank as greenspace (KAAP-P22)

A significant quantity of open space will be integrated within new development, based on a city-wide open space standard that applies to residential development (see the Open Space Assessment, AAP Submission Document E.38). The proposals include a new park (with a wood) as part of the Wawne View development, landscaped greenways and landscaped open space at Riverbank as part of residential development. In total, that’s around 20ha of additional green space.

KAAP-P25 Make sure that new north-south path in Bude Park is suitable for wheelchair users.

An all-weather north-south footpath is proposed in the AAP (Policy KAAP13 – Bude Park). Policy KAAP8 – High Quality Design requires that all aspects of development should be designed to be inclusive and safe in particular to enable easy access for everyone including people with impaired mobility.

KAAP-P30 Not enough play facilities for children and for young people and age restriction for children play areas.

A significant quantity of open space, including play facilities for children and young people, will be integrated within new development, based on a city-wide open space standard that applies to residential development (see the Open Space Assessment, AAP Submission Document E.38). For example a large play area, a MUGA and a skatepark are proposed within the new park as part of development at Wawne View. With regards to play areas’ age restriction, the Council’s North Carr Team and local PCSOs have been notified and are looking at it.

KAAP-P30 More lighting in green spaces and streets. Improvement of lighting in existing green spaces and streets is outside the remit of the AAP. However, this issue has now been referred to the Council’s North Carr Team. With regards to future development, Policy KAAP8 – High Quality Design requires that pedestrian and cycling routes are well lit and the greenways design principles (Table 12.4) requires the greenways to be well lit.

KAAP-P30 More bins, notices for dogs owners to pick up dog mess. This is outside the remit of the AAP. However, this issue has now been referred to the Council’s North Carr Team.

KAAP-P21 Wilberforce Woods needs accessible paths for walks. Agree. Improved entrances with a well defined all-weather perimeter path are proposed in Policy KAAP12 – Wilberforce Wood/Foredyke Green.

KAAP-P37 Grassed area by Kingswood Parks school is missed out and should remain in community use.


KAAP-P38 Yorkshire Wildlife Trust

Green infrastructure principles should be applied to the whole development, not just multifunctional greenspaces.

Proposed minor changes to reflect comment are put forward for submission with the Plan (See Proposed Minor Changes CH15 and CH16 in Appendix B of this report).

KAAP-P37 More playing fields. A significant quantity of open space will be integrated within new development based on a city-wide open space standard that applies

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to residential development (see the Open Space Assessment, AAP Submission Document E.38). Formal playing pitches will be provided at Bude Park and Wilberforce Wood – see Sections 20. Wilberforce Wood/Foredyke Green and 21. Bude Park of the AAP. There will also be a playing field as part of the extension of Broadacre Primary school. The AAP requires that such playing field is shared for community use (see policy KAAP3 - Jobs, shops/services and community facilities).

KAAP-P37 Skatepark near the village green.

A skatepark is proposed within the new park at Wawne View, at a walking distance from the village centre (See Table 17.1: New park elements, in the AAP).

Crime prevention

(Section 15 and Policy KAAP8 – High Quality design)

KAAP-P15 Prevention installation (e.g. CCTV) should be the responsibility of developers which can then be taken over by the Council.

After taking advice from Humberside Police, inserting such requirement in policy is not necessary as the crime prevention installation is assessed as part of the planning application process as part of the protocol between the Council and Humberside Police.

KAAP-P34 Humberside Police

Requires a number of minor amendments to crime prevention publication references.

Proposed minor changes are put forward for submission with the Plan (See Proposed Minor Changes CH38, CH39, and CH40 in Appendix B of this report).

Other

KAAP-P11 Disappointed that there is no shopping centre at North Bransholme

Outside the remit of the AAP area. However, shopping provision for North Bransholme will be enhanced with the proposed Local Centre on Wawne Road as part of Wawne View residential development (see AAP Policy KAAP9 – Wawne View).

KAAP-P17 Health provision may not be enough The AAP includes land designation for community facilities within the Kingswood Centre (see AAP Policy KAAP10 – Kingswood Centre) and the additional Local Centre as part of the Wawne View residential development (see AAP Policy KAAP9 – Wawne View). Health facilities can be accommodated within these designations.

KAAP-P24 Issue of maintenance (bushes) This is outside the remit of the AAP but can be considered by the appropriate operational team at the Council. For future development, the AAP requires comprehensive management plans for proposed parks, open spaces and linear greenways, including details of maintenance costs and responsibilities for care (Policy KAAP5 – Green infrastructure).

KAAP-P26 Humber Archaeology Partnership

Historic Environment needed in AAP as there would be historic environment issues in the areas close to the historic bends in the River Hull that could arise with some of the flood alleviation measures and additional planting- many of those would not require planning permission and therefore fall outside the usual consultation process– text suggested for insertion in the AAP.

Proposed minor changes to reflect comment are put forward for submission with the Plan (See Proposed Minor Changes CH26 and CH27 in Appendix B of this report).

KAAP-P29 Issue of school drop off at Brecon Drive/Frensham Close (cars temporarily blocking private parking drives) with suggestion of closing off the pedestrian path to school to resolve issue.

The pedestrian path provides a valuable pedestrian access between the Kesteven Way area and the school/future development at Wawne View including Local Centre and therefore the path is not proposed for closure in the AAP. A solution to this parking issue is currently being investigated by the Councils’ highways engineers.

KAAP-P29 Would like Local Centre next to the school This has been considered at Development Options stage (previous stage of the AAP) and overall, as a result of residents’ feedback and a viability assessment (see the Kingswood Development Area 1: Local Centre Assessment, AAP Submission Document E. 36), the preferred location for the Local Centre is along Wawne Road – which is in proximity (but not adjacent to) of the school, mainly for commercial viability reasons.

KAAP-P30 Youth hub needed A park hub (that could include youth activities) is proposed as part of

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Response from HCC

the Bude Park proposals (see Policy KAAP13 – Bude park) but within Kingswood itself, no such facility is proposed. Instead, infrastructure investment is focused on the provision of a new park, sustainable drainage and a significant additional provision of primary school places. However, there is capacity, both at the new Kingswood Parks school and at Broadacre Primary School (and even more so once the proposed extension is complete), to host such community activities. The neighbourhood Kingswood Academy also has space for such activities.

KAAP-P31 The Kingswood Parks Local Centre should be expanded to provide a wider range of facilities and there shouldn’t be a 2

nd Local Centre as it will pose a viability threat to the 1

st

one and Grampian Way Local Centre in North Bransholme

The allocation of a 2nd

Local Centre has been carefully considered through consultation with residents and supported by a viability assessment (see the Kingswood Development Area 1: Local Centre Assessment, AAP Submission Document E. 36). It is considered the appropriate way forward to ensure that local shops/services are easily accessible for the whole community in the area.

KAAP-P3 Lack of post boxes This is outside the remit of the AAP. However, The Council has contacted the Royal Mail with a view to ensure a number of post boxes are installed in Kingswood.

KAAP-P37 Community centre No community centre as such is proposed within Kingswood. Instead, infrastructure investment is focused on the provision of a new park, sustainable drainage and a significant additional provision of primary school places. However, there is capacity, both at the new Kingswood Parks school and at Broadacre Primary School (and even more so once the proposed extension is complete), to host community activities. The neighbouring Kingswood Academy also has space for such activities.

KAAP-P21 More land allocations for community facilities in the housing areas.

The proposed Local Centre at Wawne View (eastern part of Kingswood) has land allocations for local shops/services and community facilities. The AAP also includes land designation for such use within the District Centre. Also see response to representation KAAP-P37 above.

KAAP-P57 Why are no pubs proposed? The AAP includes land designation for such use within the District Centre and the additional Local Centre as part of the Wawne View residential development. A pub can be accommodated within these designations, subject to commercial interest.

KAAP-P58 Concerned that the bins are not emptied This is outside the remit of the AAP but can be considered by the appropriate operational team at the Council.

KAAP-P31 There is no delivery plan for employment use at Riverbank Although there is no commitment (no planning permission) for business development at the allocated employment land at Riverbank, one third of the land is designated for employment use, based the projected future economic growth (within the next 15 years) as evidenced in the city-wide Employment Land Review Update Report (see AAP Submission Document E.34). The report estimates that the whole site will not be needed for employment within the plan period but shows that some of it is likely to come forward. Safeguarding some employment land (approximately the size of a small business park) at Kingswood will enable the creation of jobs near the biggest residential development in Hull, encouraging a more sustainable lifestyle where car trips to work are minimised.

Process

KAAP-P6 Wykeland Group

Considers that the AAP process is unsound: only one previous stage of consultation with no testing of a preferred option has taken place and the AAP is produced ahead of Local Plan.

The consultations which took place are considered adequate; they included an initial ‘Issues’ consultation, then ‘Development Options’, before a final draft was issued. The testing of options took place with the consultation on Development Options. The Development Options Assessment Report, published in June 2015 as a background document (see AAP Submission Document E.25) justifies the choice of the preferred option, taking account of results from previous consultations. The two Council’s AAPs (Newington and St Andrew’s and

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Response from HCC

Holderness Road Corridor) were successfully prepared in advance of a new Local Plan. In addition, the evidence which underpins the AAP includes city-wide reports (also used for the emerging Local Plan) to ensure that strategic issues affecting Kingswood are adequately addressed. This is considered a sound approach.

KAAP-P39 Yorkshire Wildlife Trust

Requests that all developers consult YWT at pre-application stage for advice on species and appropriate mitigation.

This is not considered necessary in planning policy. The Yorkshire Wildlife Trust will be consulted as part of the planning application process when relevant.

KAAP-P37 The flexibility of the wording makes it difficult to agree on the meaning.

Although policies need to be flexible to accommodate changes of circumstances, it is considered that they provide an appropriate and clear framework for future development at Kingswood.

Sustainability Appraisal


Raised concerns about the assumptions made and how the merit of options is assessed and the rank of preferences arrived at. They don’t agree with: - the justification for bringing forward Wawne View

development at the same time as Kingswood Parks’; - conclusions re. Kingswood Centre i.e. status quo,

because the expansion of Centre is more likely to bring about provision of community facilities; and

- Riverbank conclusions where the Sustainability Appraisal states that in the long term, a mix of housing and employment may be the most sustainable option but in the meantime, safeguarding employment has the greatest potential to support economic growth. KPDC disagree.

The sustainability appraisal of the AAP was carried out independently. Following the assessment of the AAP Development Options, the final Kingswood AAP proposals have been subjected to another appraisal and they were found sustainable - no issue has been raised as a result (see AAP Submission Document A.1).

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APPENDIX B

Proposed minor changes to the published Kingswood Area Action Plan Additional text is shown in bold and underlined; deleted text is shown in bold and crossed out.

Minor Change

Ref.

AAP Ref.

Proposed minor change

Reason for change

Represen-tation Ref.

CH1 Policies Map Street names to add Omission (and comment observed by resident)

-

CH2 Policies Map Boundary of District Centre goes slightly too far to the west – should be aligned with boundary of Site C shown on Fig.18.2 of the AAP.

Mapping error -

CH3 Contents page (p.1)

13. Flood resilience and groundwater protection As a result of comment Environment Agency KAAP-P59

CH4 Objective 1, 1st bullet point (p.14)

“The provision of some 3,100 new homes ranging from large houses for families through to smaller homes for single persons, which are able to cater for the needs of all ages and abilities physical disposition, and with 15% of affordable housing*.

As a result of comment on Development Options and omission to change wording in Published AAP.

CH5 Objective 4, last bullet point (p.15)

“Minimises crime by the use of Secure Secured by Design methods and ensuring that open spaces and pedestrian/cycling routes are overlooked.”

As a result of comment

Humberside Police KAAP-P34

CH6 Objective 3, 6

th bullet

point (p.15)

“Environments that promote and enhance biodiversity*.” As a result of comment Environment Agency KAAP-P59

CH7 Fig. 8.1: Kingswood Concept Plan (p.24)

Boundary of District Centre goes too far to the west – should be aligned with boundary of Site C shown on Fig.18.2 of the AAP.

Mapping error

CH8 Paragraph 9.4 (p.26)

9.4 Evidence shows that this contribution has to continue in order to meet the projected city-wide need for housing identified at 640 760 dwellings per year….

As a result of Hull Local Plan update

-


10.33 Additional housing development at Kingswood - around 3100 dwellings) will generate a need of approximately 900 430 secondary school places will also. So far, existing secondary school provision has accommodated need generated by new Kingswood development in a context where, under the Building School for the Future programme, the three closest schools to Kingswood were rebuilt and expanded in the last 5 years. This will continue to be the case as it is considered that there will be sufficient capacity in existing schools, in particular those closest to Kingswood: They will be accommodated within the existing capacity of secondary schools in the northern part of Hull, including the Kingswood Academy, Winifred Holtby School Technology College and the Thomas Ferens Academy.

Clarification (the 900 figure is removed because it applies to the whole of Kingswood but school places for existing residents (around 3,600 dwellings already built) have already been accommodated in existing secondary schools.

-


10.36 Early engagement with residents and key stakeholders must take place in the preparation of the detailed proposals of the school extensions and the design will need to be agreed by Hull City Council’s education services Children and Young People Service Information Team prior to submitting a planning application.

Error -

CH11 Paragraph 11.5, 2

nd

sentence (p.42)

The Assessment identifies a need for new roads and improvements to key road junctions to accommodate anticipated traffic flows and the junctions are identified in Fig.11.1. The mitigation includes the enlargement of the Roebank and Althorp Road/Runnymede Way roundabouts which would accommodate additional lanes, and potentially, in the long term, the signalisation of these roundabouts.

Following planning application discussions for major retail scheme

-

CH12 Fig.11.1 (p.43)

Add annotation of Park and Ride at the site south of Raich Carter Way, immediately to the east of the Dunswell roundabout, as shown in the East Riding Local Plan.

Omission but relating to representation KAAP-P48

-

CH13 Fig. 12.1 (p.50)

Remove the site immediately to the east of the Dunswell roundabout from ‘Proposed Green Infrastructure Network’.

As a result of comment KAAP-P48

CH14 Figure 12.1 (p.50)

Mark the grassed area/school playing field to the west of Kingswood Parks primary school as part of the ‘Proposed Green Infrastructure Network.

Omission and as a result of comment

KAAP-P37

CH15 Open Space Add paragraph before Table 12.4, under the ‘Open Space and greenways As a result of comment Yorkshire

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Minor Change

Ref.

AAP Ref.


Reason for change


and Greenways Design principles (p.57)

Design Principles’ heading: 12.32 Opportunities should be sought in new development to strengthen the Green Infrastructure as defined in paragraph 12.2 above. The Town & Country Planning Association/The Wildlife Trusts guidance Planning for a Healthy Environment – Good Practice Guidance for Green Infrastructure and Biodiversity provides further information. Design principles for open spaces are set out in Table 12.4 below.

Wildlife Trust KAAP-P38

CH16 Table 12.4: Open Space and Greenways Design principles (p.57)

Add in Table 12.4 under ‘Greenways Design principles’ before bullet points: The open spaces design principles apply to greenways and particular attention should be given to the following:

As a result of comment

Yorkshire Wildlife Trust KAAP-P38

CH17 KAAP6 – Flood resilience and groundwater protection (p.58)

A. i.: ” are adequately protected from flooding so that they can cope with a 1 in 100 event plus allowance for climate change without flooding properties;”

As a result of comment Environment Agency KAAP-P59

CH18 KAAP6 – Flood resilience and groundwater protection (p.58)

“G. Proposals located within Groundwater Source Protection Zones must demonstrate that the effect of proposed development and any previous uses on groundwater is minimised, in accordance with the level of protection required…”


CH19 Section title (p.60)

13. Flood resilience and groundwater protection



13.3 Extreme weather leading to increased river flows and more intense rainfall and rising sea level caused by climate change will increase the risk of flooding further and there is a need to be prepared by ensuring new development addresses this risk. New development also needs to ensure that the use of natural assets is managed efficiently e.g. water, and that our carbon footprint is diminished to help slow down climate change and its effects.



13.15 Some activities and detailed design may not be deemed acceptable. It is important that early discussions about the risks to groundwater from any development proposals are undertaken between the developer and the Environment Agency as well as Yorkshire Water. Many activities can result in physical disturbance of aquifers. The Environment Agency’s guidance Groundwater protection: Principles and Practice (GP3) should be used by developers to prepare their proposals to ensure that their activities are not precluded. A Hydrogeological Risk Assessment will be required for proposals within Source Protection Zone 1, and may be required in Source Protection Zones 2 and 3, to inform the mitigation measures required to protect the groundwater.


CH22 Policy KAAP8: High Quality design (p.65)

Delete as follows: B v. Lifetime Homes should be provided in development located within Flood Risk Zone 1.

Error. This is already addressed in Policy KAAP2: Housing Provision and Choice (part C. iv of policy)

-

CH23 Policy KAAP8 – High Quality Design (p.65)

“C. The design of development should maximise the value of existing natural and local assets and, where possible, retaining and integrating them into the development, to create a sense of place. In particular, proposals should seek to: …. vi. interpret local history as set out in the Kingswood Archaeological Assessment and the Kingswood Historic Landscape Character Study;….”

Omission -


15.5 The design principles outlined in Safer Places* will be applied to new development, in particular active frontage on streets, public square, greenways and green spaces - see Fig. 15.1; also see Section 12. Green infrastructure for the design of greenspaces and greenways. The Local Planning Authority seeks to encourage Secured by Design accreditation where appropriate. A protocol and interactive design

As a result of comments which states that crime prevention installation should be the responsibility of developers, and after

KAAP-P15

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Minor Change

Ref.

AAP Ref.


Reason for change


guidance are in place between the Council and Humberside Police to ensure planning applications seek to design out crime effectively and to provide support for applicants wanting to achieve the Secured by Design* Developers Award.

taking advice from Humberside Police’s Crime Reduction Officer/ Designing Out Crime Officer (DOCO)


15.5 The design principles outlined in Safer Places* will be applied to new development, in particular active frontage on streets, public square, greenways and green spaces - see Fig. 15.1; also see Section 12. Green infrastructure for the design of greenspaces and greenways. A protocol and interactive design guidance are is in place between the Council and Humberside Police to ensure planning applications seek to design out crime effectively and to provide support for applicants wanting to achieve the Secured by Design* Developers Award. The Secured by Design ‘Level 1’ standard applied applies to the layout of development as opposed to ‘Level’ 2 which applied applies to buildings themselves.

As a result of comment Humberside Police KAAP-P34

CH26 Make the most of natural assets (p.68)

Change heading and paragraphs 15.6-15.7 as follows: Make the most of natural and local assets 15.6 The design of development should maximise the value of the natural and local assets to create a sense of place by reflecting, and, where possible, retaining and integrating them into the development. 15.7 Key natural features are the River Hull, the Engine Drain Greenway, the open countryside and the panoramic views from the slope on the eastern part of Kingswood; and the slope itself. Proposals will need to demonstrate how these features are reflected and integrated in the design of new development. Fig. 15.2 shows the natural assets in Kingswood that need to be taken into account.

As a result of comment Humber Archaeology Partnership KAAP-P26

CH27 Make the most of natural assets (p.60)

Add paragraphs after paragraph 15.7, as follows: 15.8 The Kingswood Archaeological Assessment and the Kingswood Historic Landscape Character Study are useful sources of inspiration to understand and interpret the local history as part of the design of development. 15.9 It is important that any additional historical/archaeological asset is identified and safeguarded as part of new development. It is likely that any ground-works in this area (e.g. some of the flood alleviation measures near the River and additional planting) have the potential to encounter archaeological deposits of the prehistoric, Romano-British, Anglo-Saxon, medieval and later periods - particularly in those areas closest to the river bends, which were favourable for early settlement. Early consultation between developers and the Local Planning Authority's archaeological advisors (the Humber Sites and Monuments Record office) can help to identify the best way of dealing with potential impacts upon the historic environment in this area, and can help to avoid further problems or costly delays during the construction stages of a development.

As a result of comment Humber Archaeology Partnership KAAP-P26

CH28 Fig. 15.2 (p.69)

Remove the site immediately to the east of the Dunswell roundabout from ‘Green Infrastructure Network’.

As a result of comment KAAP-P48


17.47 An acceptable alternative would be to culvert Culverting the Engine Drain should only be considered as a last resort. Although a culvert too would remove, thus removing the hazard risk posed by the proximity of water/steep banks near houses on the Kingswood Parks side, it would nonetheless generate the loss of environmental features, in particular, ecological value and decrease of water storage capacity; in addition, a culvert would present maintenance challenges to prevent blockages (which could cause flooding). and, in parallel, To ensure sufficient surface water storage capacity, a culvert would need to be accompanied by smaller SuDS within the park in the form of a network of ponds.


CH30 Fig. 18.3: Kingswood Centre Concept Plan (p.95)

Boundary of District Centre goes too far to the west – should be aligned with boundary of Site C shown on Fig.18.2 of the AAP.

Mapping error -


nd

The proposed improvements include the enlargement of the Roebank and Althorp Road/Runnymede Way roundabouts which would accommodate

Following planning application discussions

-

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4

Minor Change

Ref.

AAP Ref.


Reason for change


sentence (p.97)

additional lanes, and potentially, in the long term, the signalisation of these roundabouts.

for major retail scheme

CH32 Policy KAAP11 – Riverbank (p.100)

C. ii. the replacement flood defences are in place prior to the occupation of any dwelling phasing of the flood defences protects the development at all time during construction; and…



19.10 The existing defences are relatively narrow earth defences, which are assumed to have a clay core. However, the width of the defences does mean that that these may be prone to failure at some future date, although in the SFRA the condition has been classified as ‘good’. The replacement of the existing defences at Kingswood with a new wide defence provided with a wide level crest (set at the general level of the existing defences) is proposed, so it provides a 1 in 100 year plus climate change standard of protection. Whilst current modelling information indicates that the required height of the defences will be at the general level of the existing defences, it will be determined by the best available information at the time of the proposed works. The structure design will allow raising should this be deemed necessary at some future date.



Add at the end of paragraph: A geophysical survey of the flood bank will be required as part of the pre-construction investigative work, to check the condition of the clay core, so that remedial work can be undertaken if necessary.

As a result of comment East riding of Yorkshire Council KAAP-P46


19.19 Housing development at Riverbank will need to be planned as a whole with a detailed masterplan, flood defence scheme and design Code. The new replacement flood defences (see paragraph 19.10 above) are to be provided prior to the occupation of any properties in the Riverbank area. A flood defence scheme is necessary to ensure housing is protected with defences at all time during the construction stage either by building the permanent defences along the full length of the Riverbank area (along the River) first or by progressing it gradually, together with the erection of small east-west temporary defences to protect the emerging development. The temporary defences can be removed once the full length permanent defence is complete.


CH36 Fig.19.3 Flood Defence Proposals (p.106)

Insert diagram above text saying “Figure 19.3 Flood defence proposals” and add wording as follows: “Figure 19.3 Flood defence proposals (illustrative only)”

Omission -


22.4 Other key stakeholders involved in infrastructure provision at Kingswood have confirmed their intentions. Under the current funding mechanisms for providing flood defences, the Environment Agency* has confirmed that substantial contribution from the developer to fund flood defence improvements to increase protection for proposed development at Riverbank are sought. The Environment Agency* has clarified significantly reduced funding programmes for flood defences and the onus now being placed on the private sector to address risks, especially given the precautionary approach to planning outlined in the National Planning Policy Framework*. National Grid has confirmed retention of the overhead power lines.


CH38 Table 23.1, 4

th Column,

KAAP8 B i-iii row (p.128)

“Assessment of proposals by Urban Design Officer and Humberside Police’s Designing Out Crime Officer (DOCO) as part of the ‘Designing out crime’ protocol and design guidance.

As a result of comments by Humberside Police’s Crime Reduction Officer/ Designing Out Crime Officer (DOCO)


CH39 Glossary (p.135)

Safer Places: Government good practice published in 2004 (soon to be revised) to promote community safety through the planning system. Safer Places focuses on seven attributes of sustainability that are particularly relevant to crime prevention. The guide is about good planning in general, and its particular role in tackling crime and the fear of crime.

As a result of comments by Humberside Police’s Crime Reduction Officer/ Designing Out Crime Officer (DOCO)


CH40 Glossary (p.135)

Secured by Design: Secured by Design is the official UK Police flagship initiative supporting the principles of ‘designing out crime’. It is designed to encourage the building industry to adopt crime prevention measures to assist in reducing the opportunity for crime and the fear of crime, creating safer, more secure and sustainable environments. The principles have been proven to achieve a reduction of crime risk by up to 75%, by combining minimum standards of physical security and well-tested principles of natural surveillance and defensible space. The

Addition to definition as a result of further correspondence with respondent.


Page 46 of 268

5

Minor Change

Ref.

AAP Ref.


Reason for change


Secured by Design objective is to reduce burglary and crime in the UK by designing out crime through physical security and processes.


nd

sentence (p.60)

The Strategic Flood Risk Assessment, and the Surface Water Management Plan and the River Hull Integrated Catchment Strategy, together give a detailed picture of flood risk in Hull and set out requirements to address it, including design implementation to make properties more resilient to flood risk. Proposals at Kingswood should follow the SFRA requirements.

As a result of comment East riding of Yorkshire Council KAAP-P46

Page 47 of 268

Page 48 of 268

Author: Martin Budd Status: v5 Date: 12/11/2015 Page 1 of 33

1. Purpose of the Report and Summary

1.1 Following the decision of Full Council on the 20th November 2014,

a Policy has been produced setting out the Councils position to oppose the extraction of unconventional oil and gas using extraction techniques generally referred to as “fracking”.

1.2 The Policy sets out the parameters for the Council opposing proposals for the exploration and commercial operation of unconventional oil and gas extraction using fracking techniques.

1.3 The Report covers the potential implications of the Policy on land disposal.

2. Recommendations

2.1 The Cabinet approve the Policy at Appendix 1, for the reasons set out within Section 3 (below).

2.2 That the Council will monitor with appropriate agencies, such as the Environment Agency and Yorkshire Water, to ensure that if test drilling assessment or commercial operation is undertaken that all health and safety, operational permit requirements and planning conditions are complied with.

3. Reasons for Recommendations

3.1 The decision of Full Council on the 20th November 2014 (Minute 87) called for the Council to:

Report to the Cabinet Energy and Infrastructure Overview and Scrutiny Commission 11th November Planning Committee 17th November Cabinet 23rd November 2015

Wards: All

Unconventional Oil and Gas Extraction Policy

Report of the City Regeneration and Policy Manager This is a key decision. The matter is in the Forward Plan – 0003/15

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“develop a Council policy on shale gas and coal bed methane extraction by referring this motion for a full scrutiny inquiry into the issue of ‘fracking’ including the evidence of ecological, geological and pollution associated with this method.”

3.2 The proposed policy addresses the issues in relation to the use of fracking as an extraction technique and its potential impact upon existing water resources for the City which lie outside of the City in the East Riding, both from contamination of underground aquifers as well as the amount of water that will be required by any extraction process.

3.3 In addition the Policy addresses potential concerns related to seismic activity, road traffic numbers, fracked liquid transportation and disposal.

3.4 The policy also responds to the concern that fracking will increase the availability of carbon based fuel and therefore that available for consumption. Scientific evidence on climate change has drawn a direct link between increasing carbon emissions and changes to the climate1. Further, to achieve existing carbon reduction targets we will need to leave a significant amount of known carbon resources in the ground to avoid run away climate change and stay within the 20c target in the Kyoto Protocol and the basis of the Paris Summit in December 2015.

3.5 The Recommendations will enable the Council to adopt a position that provides clear grounds for the Council to make informed judgements in relation to fracking activity. It will enable the Council to take appropriate steps to protect the City, its residents and business from any potential adverse impacts of the fracking process.

4. Impact on other Executive Committees (including Area Committees)

4.1 Two Reports were produced for the Energy and Infrastructure Overview and Scrutiny Commission on the 1st April 2014 and 11th February 2015 setting out the fracking process, legislation, issues and impact on the City.

4.2 The process of fracking has the potential to affect the entire City equally and therefore the Policy provides a process where by the Council can take steps to object to any fracking proposals to reduce the impact on any particular Area Committee area or areas.

5. Background

1 http://www.ipcc.ch/pdf/assessment-report/ar5/syr/AR5_SYR_FINAL_SPM.pdf

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http://www.ipcc.ch/pdf/assessment-report/ar5/syr/AR5_SYR_FINAL_SPM.pdf


Council Decisions

5.1 Full Council agreed a Council Motion on the 20th November 2014 for the Council to: “develop a Council policy on shale gas and coal bed methane extraction by referring this motion for a full scrutiny inquiry into the issue of ‘fracking’ including the evidence of ecological, geological and pollution associated with this method.” The Motion agreed that a paper be sent to Energy and Infrastructure Overview and Scrutiny Commission so that they could inform the development of the Policy.

5.2 The Scrutiny Commission in April agreed the following actions regarding an unconventional oil and gas policy.

• That consideration be given to how a Hull City Council Fracking Policy can be linked with Planning Policy to ensure that it is enforceable.

• That the Hull City Council Fracking Policy include within it a clause making clear that the Council is not responsible for the disposal of waste water resulting from the Fracking process, and that, following discussion with Yorkshire Water, the Fracking Policy makes clear the process for disposal of waste water resulting from fracking.

• That, after further investigation, the Fracking Policy includes details of the Council’s rights to oppose fracking with regard to land owned by the Authority but located outside of the City.

• That investigation is carried out to establish the rights of Hull City Council to mineral seams below the City.

• That, after considering the evidence of ecological, geological and pollution issues associated with shale gas and coal bed methane extraction, the Energy and Infrastructure Overview and Scrutiny Commission recommends that a Hull City Council Fracking Policy be developed and include the concerns of the Commission and supports the Council debate of 20 November 2014.

5.3 Shale gas and oil are found in certain geological formations of highly permeable rock. It is trapped in tiny pore spaces or absorbed into clay particles. This differs from conventional gas which is found large pockets in impermeable rock.

5.4 Gas held within shale beds is accessed through a technique called “hydraulic fracturing, or “fracking” for short. Water,

Page 51 of 268


containing sand and chemicals, is pumped at high pressure into the rock. The sand keeps the small fractures in the rock open while the chemicals react with the gas increasing the amount of gas extracted. Fracking for unconventional oil and gas has developed rapidly over the last five years in particular in the USA where it has had a significant impact in lowering energy prices and surpassing coal as the main source for energy generation. However, the technology requiring the extraction of oil and gas through fracking has had a significant number of health and social issues associated with it in the USA. Due to these concerns development of these fuels globally has been slow with many counties in Europe taking a cautious approach. France has banned fracking, Germany has a de facto ban through the current Government coalition document and the Netherlands has a moratorium.

5.5 Advances in technology as well as the rising price of oil and gas made the exploration and exploitation of shale gas and oil more viable.

5.6 The exploration of oil and gas on land is not new and there are several sites within the UK currently extracting conventional oil and gas. However, the techniques required to exploit unconventional deposits have raised concerns in communities, interest groups and in the press.

5.7 Unlike conventional oil and gas extraction which can extract all of the reserves from a single well head; unconventional gas and oil extraction requires the construction of tens, and even hundreds, of fracking wells for a deposit site.

5.8 Fracking is an old technology and has been used since the 1950’s primarily using water and oil based gels however the rapid development of the industry in the USA and Canada has seen the use of other chemical combinations and a rapid expansion which has created pressure on water resources as well as contamination of aquifers and leaks from used water storage tanks2.

5.9 The development process for unconventional shale gas and oil extraction involves three phases3:

• Phase 1: taking 2-6 months including exploratory drilling to establish if extraction is profitable including seismic surveys, test samples and flow testing.

2 http://www.ibtimes.com/fracking-safe-study-finds-hormone-system-disrupting-

chemicals-water-near-drilling-dense-areas 3 DECC Developing Onshore Shale gas and Oil- facts about “Fracking” 2013

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/265972/Developing_Onshore_Shale_Gas_and_Oil__Facts_about_Fracking_131213.pdf

Page 52 of 268

http://www.ibtimes.com/fracking-safe-study-finds-hormone-system-disrupting-chemicals-water-near-drilling-dense-areas

http://www.ibtimes.com/fracking-safe-study-finds-hormone-system-disrupting-chemicals-water-near-drilling-dense-areas




• Phase 2: taking 6 months to 2 years is the pre-production and production phase when water, chemicals and equipment are brought to the site and waste water carried away. During this phase additional wells will be dug and could last for up to 20 years.

• Phase 3: is the decommissioning and site restoration period.

5.10 The process of fracturing rock or fracking for shale gas and oil

involves the drilling of a large bore hole vertically and then horizontally, sometimes for many miles; encasing this in concrete; and then flushing water in at very high pressure to create fractures in the rock where the gas or oil is held. The water is combined with a sand and chemical mixture to ensure that the fractures remain open. The gas then flows to the surface to be captured at the well head.

5.11 Fracking has been most significantly exploited in the USA but there are unconventional gas and oil deposits on most continents.

5.12 There have been two widely reported explorations for unconventional gas and oil in the UK, both undertaken by Caudrilla. The most recent, in August 2013, at Balcombe in West Sussex which received significant protest by local residents and others opposed to fracking. No fracking took place at the site and Caudrilla have since decided that the oil can be extracted conventionally. The other exploration which included fracking was near Blackpool in 2011. In April and May of that year, two small earthquakes occurred close to the drilling site. An independent report commissioned by Cuadrilla confirmed that the fracking process was the cause of the earthquakes4. Following this and after an investigation, there was an 18 month ban on further exploration. This is not an unusual event in certain geological formations as found in studies in the USA5.

5.13 Because of the geology of the UK the industry is expected to develop at a much slower rate than in the USA. Added to this, there is a requirement for planning consent and a tighter environmental regulation landscape. It is likely that it will be up to ten years before there is any significant production at scale and there will be at least a further two years of exploration.

5.14 It should be noted that fracking, or rather the technology of using high pressure water to extract oil, has been used at most oil and

4 Geomechancial Study of Bowland Shale Seismicity, November 2011

http://www.cuadrillaresources.com/wp-content/uploads/2012/02/Geomechanical-Study-of-Bowland-Shale-Seismicity_02-11-11.pdf 5 New Scientist August 2013 http://www.newscientist.com/article/dn24069-fracking-

operations-triggered-100-quakes-in-a-year.html

Page 53 of 268

http://www.cuadrillaresources.com/wp-content/uploads/2012/02/Geomechanical-Study-of-Bowland-Shale-Seismicity_02-11-11.pdf

http://www.cuadrillaresources.com/wp-content/uploads/2012/02/Geomechanical-Study-of-Bowland-Shale-Seismicity_02-11-11.pdf

http://www.newscientist.com/article/dn24069-fracking-operations-triggered-100-quakes-in-a-year.html

http://www.newscientist.com/article/dn24069-fracking-operations-triggered-100-quakes-in-a-year.html


gas wells to obtain the last drops of energy.

5.15 National Context The Government sees unconventional gas and oil exploitation as part of the wider energy mix with the ability to increase energy security. The Government has offered a number of financial incentives to companies wishing to undertake the exploration of unconventional gas and oil reserves. The 2013 Budget and Autumn Statement included:

• A new shale gas field allowance

• Extended ring-fence expenditure supplemented from six to ten years

• Establishment of the Office of Unconventional Gas and Oil

• The tax rate on a portion of company profits reduced

• A tax allowance equal to 75% of capital spent on projects

5.16 In January 2014, with concern over opposition to shale gas extraction by some local authorities and communities the Government announced that Councils’ could keep 100% of the business rates collected from shale gas sites. This was estimated at £1.7m a year for a typical site. There is also a community benefits package of £100,000 when a test well is fracked and a further 1% of revenues if shale gas discovered. This could be worth between £5m-£10m for a typical site over its lifetime. This reflects the approach the Government has taken with onshore wind turbine development which requires a community benefit for communities next to sites.

5.17 In addition the Government confirmed in the Queen’s Speech (2014), plans to streamline the underground access regime and make it easier for companies to drill for shale gas through a new Infrastructure Bill. Under the existing system license holders do not have automatic access rights to drill under landowners property and permission should be sought from the landowner before they can do this. If permission is refused then license holders can apply through the Secretary of State and courts to gain access. However, the Government believes this route to be too time consuming and is consulting on the following changes which would:

• Grant underground access rights to companies extracting petroleum resources (including shale gas and oil) and for geothermal energy in land at least 300 metres below the surface;

• A voluntary and community payment of £20,000 for each unique lateral (horizontal) well that extends by more than 200 metres laterally. Alongside this will be powers to

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make such payments compulsory if companies fail to volunteer;

• A public notification system, under which the company would set out drilling proposals along with details of the voluntary payment.

5.18 In January 2014 following a debate on the Infrastructure Bill the

Coalition Government accepted 13 amendments to the Bill related to fracking including:

• No fracking to take place in National Parks, Areas of Outstanding Natural Beauty and Water Protection Zones (see Appendix 2)

• independent inspection of the integrity of wells,

• monitoring for leaks of methane

• informing residents individually of fracking in their area (but no right to object)

• 12 months background data collected of sites prior to drilling

In addition, the Coalition Government’s proposal to allow “any substance” to be used in fracking wells was also overturned. Further the Government committed to cancelling shale gas licences if their official advisers, the Committee on Climate Change, concluded that shale gas would damage climate change goals or make a written statement to Parliament explaining the reasons for not doing so6.

5.19 The current Government has yet to announce the details of how fracking will be undertaken in close proximity to National Parks, Areas of Outstanding Natural Beauty and Water Protection Zones

5.20 In addition in August 2015 the Government announced that they would streamline the planning approval process for fracking applications. This would include the ability of the Secretary of State to call in planning applications for him to decide on them if a local planning authority was deemed to be taking to long to reach a decision.

5.21 Licensing Process for Fracking The exploration and development of shale gas can only be undertaken through a Petroleum and Exploration and Development License (PEDL) issued by the Department of Energy and Climate Change. In addition a company wishing to frack would also need to obtain approval under the National

6 http://www.theguardian.com/environment/2015/jan/26/conservatives-u-turn-fracking-

labour-cuadrilla-drilling-ban

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http://www.theguardian.com/environment/2015/jan/26/conservatives-u-turn-fracking-labour-cuadrilla-drilling-ban

http://www.theguardian.com/environment/2015/jan/26/conservatives-u-turn-fracking-labour-cuadrilla-drilling-ban


Planning Policy Guidance7 as follows:

• Department of Energy and Climate Change – issues Petroleum Licenses, gives consent to drill under the License once other permissions and approvals are in place, and have responsibility for assessing risk of and monitoring seismic activity, as well as granting consent to flaring or venting;

• Mineral Planning Authorities – grant permission for the location of any wells and well pads, and impose conditions to ensure that the impact on the use of the land is acceptable;

• Environment Agency – protect water resources (including groundwater aquifers), ensure appropriate treatment and disposal of mining waste, emissions to air, and suitable treatment and manage any naturally occurring radioactive materials; and

• Health and Safety Executive – regulates the safety aspects of all phases of extraction, in particular responsibility for ensuring the appropriate design and construction of a well casing for any borehole.

Other bodies which may be involved in the consenting of the process include:

• the Coal Authority, whose permission will be required should drilling go through a coal seam;

• Natural England, who may need to issue European Protected Species Licences in certain circumstances;

• the British Geological Survey, who need to be notified by licensees of their intention to undertake drilling and, upon completion of drilling, must also receive drilling records and cores; and

• Hazardous Substances Authorities, who may need to provide hazardous substance consents.

There may also be additional consents and orders, such as stopping up rights of way or temporary road orders, which must be obtained.

There are also a set of permitting conditions set out by the DECC Secretary of State (Appendix 3).

5.22 Shale Gas Deposits in the UK The Department of Climate Change published a report into the potential for shale gas exploration in 20128 which showed the

7 http://planningguidance.planningportal.gov.uk/blog/guidance/minerals/planning-for-

hydrocarbon-extraction/how-mineral-planning-authorities-plan-for-hydrocarbon-extraction/

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http://planningguidance.planningportal.gov.uk/blog/guidance/minerals/planning-for-hydrocarbon-extraction/how-mineral-planning-authorities-plan-for-hydrocarbon-extraction/




shale formations with most gas potential. This identified a formation running from the north east to the south and south west including the Weald Basin covering East and West Sussex, Kent, Hampshire and the Bowland Shale in the Pennine basin covering Lancashire and Yorkshire. The Weald and Pennine basins are thought to offer the most potential.

5.23 At present there is very little certainty about the total amount of extractable gas in the UK. In June 2013 a separate study of the Bowland Basin9 estimated a gas in place assessment of 37.6 trillion cubic meters (tcm). Appendix 4 contains a map of the Bowland Basin. However, there is a caveat, because of the difficulties with how much is extractable based on USA recovery levels it is estimated that 1.8-13 tcm could be extracted. The current annual UK gas consumption figure is 77 billion cubic meters and we have approximately 1.5 tcm of conventional gas recoverable10.

5.24 Because of this uncertainty over shale gas estimates the Government in response to an investigation by the Energy and Climate Change Committee has estimated that there would need to be 20 -40 wells drilled over the next two years to establish commercial viability. It also concluded that it was too early to say if it would result in cheaper gas prices and it would be wrong to assume that a national or global boom in shale gas would result in price decreases11.

5.25 In August 2015 the Government annouinced the awarding of a further set of PEDL’s for areas of the UK where unconventional and conventional oil and gas could be extracted and indicated that a further set of licences would also be available. The map in Appendix 5 shows the new licensed areas as well as those currently held and future license areas.

8 British Geological Survey Unconventional Hydrocarbon resources of Britain’s

Onshore Basins- Shale Gas 2012 https://www.og.decc.gov.uk/UKpromote/onshore_paper/UK_onshore_shalegas.pdf 9 British Geological Survey The Carboniferous Bowland Shale Gas Study: geology

and resource estimation 2013 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/226874/BGS_DECC_BowlandShaleGasReport_MAIN_REPORT.pdf 10

Department of Energy and Climate Change Digest of UK Energy Statistics https://www.gov.uk/government/collections/digest-of-uk-energy-statistics-dukes 11

Department of Communities and Local Government Revised requirements relating to planning applications for onshore oil and gas: proposals paper https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/274955/Revised_requirements_relating_to_planning_applications_for_onshore_oil_and_gas_-_proposals_paper_-_Summary_of_responses_and_government_response.pdf

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https://www.og.decc.gov.uk/UKpromote/onshore_paper/UK_onshore_shalegas.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/226874/BGS_DECC_BowlandShaleGasReport_MAIN_REPORT.pdf


https://www.gov.uk/government/collections/digest-of-uk-energy-statistics-dukes

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/274955/Revised_requirements_relating_to_planning_applications_for_onshore_oil_and_gas_-_proposals_paper_-




5.26 The City of Hull and surrounding area is already covered by an existing PEDL No 183 held by Rathlin Energy which gives them exclusive rights to explore for oil and gas using conventional or unconventional extraction technology subject to land owner approval for the well head and appropriate planning permissions and licenses as detailed above.

12

Tyndall Centre Shale gas: an updated assessment of environmental and climate change impacts http://www.tyndall.ac.uk/sites/default/files/coop_shale_gas_report_update_v3.10.pdf

6. Issues for Consideration

Environmental Impacts

6.1 Unconventional gas is an intensive industry with a larger environmental footprint than conventional gas extraction. More wells need to be drilled, there are significant traffic movements of 14-51 vehicles a day, impacts on local communities, land use and water resources. Aligned to this there are potential hazards with surface contamination as well as ground water contamination which have been highlighted in certain fracking operations in the USA. In addition there is the release of methane from the process which has a larger climate change impact than carbon dioxide.

6.2 A Report by the Tyndall Centre12 in 2011 highlighted the concerns around the potential for ground water contamination affecting drinking water and wetland habitats. The research identified that this was a possibility because although the fracturing process takes place below the level at which aquifers are found the drilling is likely to pass through existing aquifers (see Appendix 2 for Hull and East Riding aquifers). Another potential issue raised in the Report was that the process of creating the fractures would enable contaminated waters to find aquifers through natural pathways. A key issue then is the quality of the casing in the bore hole to protect the surrounding ground. The issues in the USA of water contamination have been linked to potentially poor bore hole casing.

6.3 The concerns over earth tremors noted at Blackpool are not unusual. In the UK, earth tremors were not infrequent as a result of the mining industry. However, the Government has introduced a requirement for seismic monitoring at fracking sites with a traffic light system. There is also a requirement to monitor the growth of the height of fractures to ensure that aquifers are not contaminated.

6.4 The use of water is a further significant concern. A report by

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http://www.tyndall.ac.uk/sites/default/files/coop_shale_gas_report_update_v3.10.pdf


13

Amec The Environmental Effects of Onshore oil and gas Licensing 2013 14

Platts.com US Coal Market –Export Potential http://www.platts.com/news-feature/2012/coaltransport/index and The Diplomat US Companies Benefit from China coal Addition http://thediplomat.com/2013/11/how-us-companies-benefit-from-chinas-coal-addiction/

AMEC13 indicated that up to 18% of current annual mains water supply for the energy, water and waste industries would be needed for a developed fracking industry. While the abstraction of water requires a licence from the Environment Agency, this would still present a significant increase in water demand.

6.5 Additionally, the process generates a significant amount of waste water. Each well could generate between 3,000m3 to 18,750m3 and it is estimated at a high activity scenario it could reach108 million m3. This would require treatment and present a significant pressure on existing water treatment facilities which is likely to require new or upgraded facilities.

6.6 The study also identified that traffic to the site could result in between 14 and 51 vehicle movements a day during the exploration and site preparation phase over a 32 to145 week period.

6.7 It is also not fully understood the amount of methane that escapes to the air from the fracking process both from oil and gas deposits. Methane has a significantly greater impact on climate change than carbon dioxide.

6.8 The use of unconventional gas has been seen as a tool to reduce carbon emissions as it will replace the use of coal in power stations for the production of electricity. This has been part of the reason for the drop in fuel prices in the US as fracked gas has replaced coal. However, the use of fracked gas in the US domestic market has seen coal exports increase as new markets for the US coal industry have had to be found. So while there may be a local carbon reduction the overall carbon emissions have increased14. It has further been argued that the emissions of carbon dioxide form

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http://www.platts.com/news-feature/2012/coaltransport/index

http://www.platts.com/news-feature/2012/coaltransport/index

http://thediplomat.com/2013/11/how-us-companies-benefit-from-chinas-coal-addiction/

http://thediplomat.com/2013/11/how-us-companies-benefit-from-chinas-coal-addiction/


15

Methane and the greenhouse-gas footprint of natural gas from shale formations paper by Dr Robert Howarth Cornell University 2011 http://www.theengineer.co.uk/opinion/viewpoint/frackings-methane-risk-cannot-be-ignored/1019835.article#ixzz3l3yFY2yr 16

Speech by Christiana Figueres Executive Secretary UN Framework Convention on Climate Change to the World Coals Association 2013 https://unfccc.int/files/press/statements/application/pdf/20131811_cop19_coalassociation.pdf; Naomi Klein This Changes Everything Capitalism vs the Climate Allen Lane 2014; Duncan Clark and Mike Berners-Lee The Burning Question Profile Books 2013 17

DECC Potential Greenhouse Gas Emissions Associated with Shale Gas Extraction and Use 2013 http://www.tyndall.ac.uk/sites/default/files/coop_shale_gas_report_update_v3.10.pdf 18

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/328298/PHE-CRCE-009_cover_note.pdf

fracked gas are lower than those give off by coal and therefore reduces emissions. However some studies15 have indicated that because of the methane that leaks from well heads its emissions are at least as large as those from burning coal.

6.9 It has been argued that in order to address climate change through reducing carbon emissions that an approach should be adopted of leaving carbon based fuel in the ground to hasten the transition to a low carbon economy16. The relative cheapness of fracked gas and depression of global coal prices though US surplus capacity works against a low carbon transition and investment in renewables and low carbon technologies and their adoption on a global basis. The Governments view is that the carbon emission of fracked gas is broadly similar to that of conventional gas and that shale gas is a “bridge” fuel source in the low carbon transition17.

6.10 A literature review undertaken by Public Health England18 in June 2014 into the potential chemical and radioactive pollutants from shale gas extraction found that the process of extraction is undertaken in a safe manner then the risks to public health are low. Where problems did occur these emanated from operational failure and poor legislative framework

Opportunities for Unconventional oil and gas near Hull and economic impacts

6.11 The available data from the Bowland Basin Report indicates there is unlikely to be shale gas extraction within close proximity to Hull. While there are oil and gas exploration licences covering the City and the East Riding, these are longstanding and have primarily been to enable conventional oil and gas exploration.

6.12 The current Petroleum Exploration and Development Licenses in Hull and surrounding areas are shown in the Table below. The licenses do not make a distinction between shale gas and other

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http://www.theengineer.co.uk/opinion/viewpoint/frackings-methane-risk-cannot-be-ignored/1019835.article#ixzz3l3yFY2yr

http://www.theengineer.co.uk/opinion/viewpoint/frackings-methane-risk-cannot-be-ignored/1019835.article#ixzz3l3yFY2yr

https://unfccc.int/files/press/statements/application/pdf/20131811_cop19_coalassociation.pdf

https://unfccc.int/files/press/statements/application/pdf/20131811_cop19_coalassociation.pdf

http://www.tyndall.ac.uk/sites/default/files/coop_shale_gas_report_update_v3.10.pdf




19

Shale Gas and Fracking, House of Commons Standard Note, 04 December 2014. 20

http://www.rathlin-energy.co.uk/yorkshire/

forms of hydrocarbons.19

Parliamentary Constituency

% of constituency covered by licence block

Licence Operator

Round awarded under

License AS

Kingston upon Hull East

88.5% RATHLIN 13 PEDL 183

Kingston upon Hull North

100% RATHLIN 13 PEDL 183

Kingston upon Hull West & Hessle


Beverley & Holderness

0.2% DART 13 PEDL 176

Beverley & Holderness


Haltemprice & Howden

12.3% DART 13 PEDL 179


18.4% DART 13 PEDL 176



6.13 Rathlin Energy has established a well at Crawberry Hill near Walkington East Yorkshire. This well has penetrated the Bowland Shale but to date no test fracking has taken place. The Minutes of a Community Liaison meeting in Bishop Burton held in November 2014 includes a statement from Rathlin that they do not intend to undertake any fracking (large scale or mini) activity at the Crawberry Hill site20.

6.14 There is some potential for local businesses currently involved in the conventional oil and gas exploration and extraction industry to obtain contracts with fracking companies. Because the industry is at such an early stage that the impact on the local economy cannot be properly assessed. Because of the potential for significant vehicle movements local freight companies may be in a position to obtain contracts depending on the location of fracking sites.

6.15 Government Energy policy and Legislation The Government has been very supportive of the fracking industry seeing the technology and fuel obtained as an opportunity to provide energy security to the UK as well as support growth. Alongside this it is seen as part of the bridging fuels as the UK transitions to a low carbon economy. It has acknowledge the impact that fracking has had in the USA with a significant reduction in energy costs but acknowledges that this is unlikely to happen in the UK because the amount of frackable energy is significantly less and geography and geology of the UK are notably different.

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21

https://www.gov.uk/government/policies/uk-energy-security 22

Page 38 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/382327/44695_Accessible.pdf

6.16 The use of unconventional oil and gas is part of the UK energy

policy21 and the industry benefits from additional financial support announced in the Autumn Statement 201422 to increase public understanding of the fracking process create a sub-surface test centre and set up a long term sovereign wealth fund for the North of England so that income generated in the North is reinvested in infrastructure projects there.

6.17 The current legislative framework, set out in the Infrastructure Act 2015, supports the exploitation of unconventional oil and gas reserves and the use of fracking technology. The Government has also established a college for the development of onshore oil and gas extraction, based in Blackpool, to develop skills within the industry.

6.18 As a result of a letter from the Leader to the former Minister of State at the (DECC), the Council has received information setting out national policy and councils responsibilities under the National Planning Policy Framework, emphasizing the Councils responsibility not to create a situation of pre-determination for any applications received for fracking as well as the requirements to identify land where minerals extraction can take place and to create appropriate policies in line with the Framework and the principle of sustainable development.

6.19 The Joint East Riding and Hull Minerals Plan, which will be consulted on later this year, sets out the draft Policies for shale gas extraction. This conforms to the requirements in the National Planning Policy Framework and the information contained in communication with DECC and Department of Communities and Local Government.

6.20 Potential Local Impacts of Fracking The arguments against fracking have centred upon:

• the environmental threats to water from contamination of underground aquifers;

• the amount of water required for the fracking process and its treatment/disposal;

• the increased traffic associated with the process of fracking and removing the water and oil/gas extracted;

• the number of wells required within a fracking area and its visual impact as well as impact on land levels if significant

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https://www.gov.uk/government/policies/uk-energy-security

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/382327/44695_Accessible.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/382327/44695_Accessible.pdf


23

Amec The Environmental Effects of Onshore Oil and Gas Licensing 2013

gas/oil removed; and

• the climate change impacts and the need to leave carbon based fuel in the ground to enable the planet to not exceed a 20c temperature increase from pre-industrial times.

6.21 As detailed above, two of the main concerns with the process of fracking are water related. While fracking would generally take place at depths below aquifers the drilling process is expected to take place close to existing aquifers and until the Government defines the areas where fracking cannot take place around water source protection zones, then fracking still remains a potential threat to aquifers. Further, the nature of fracking can create underground pathways that over time could lead to damage to aquifers. Once an aquifer is contaminated it will be very difficult to address due to its inaccessibility with the potential for significant adverse impacts on local communities and industry.

6.22 There are also concerns about the amount of water that will be required for the fracking. Amec23, a leading engineering company, has raised this as a key issue and how demands for water between other aspects of industry, farmers (alongside other similar land uses) and domestic use will be balanced particularly in areas of water stress. They have estimated that up to 18% of current annual mains water supply for the energy, water and waste industries would be needed by a mature fracking industry.

6.23 The impact of climate change and expected increase in heat waves and periods of prolonged drought as the century develops will increase this water stress. Additionally, the extraction of increased amounts of fracked carbon fuel, alongside existing conventional carbon sources, will further impact on climate change and further exacerbate the water shortage problems.

6.24 Hull depends on the aquifer to the west of the City (Appendix 2) for much of its water for both domestic and industrial use. The City also has a number of industries that have a high water use for processing which may be affected by increased water abstraction and future climate related droughts. The potential for fracking within the City or close proximity has the potential to impact the City’s water resources.

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24

Schrag, D.P., “Is shale gas good for climate change?” Daedalus, 141(2), 72-80, 2012

6.25 The fracking process also generates a significant amount of waste water with each well generating anywhere between 3,000m3 and 18,750m3. This would require appropriate purification and environmental treatment and present a significant pressure on existing water treatment facilities which is likely to require new or upgraded facilities.

6.26 After discussion with Yorkshire Water concerning their approach to fracking and the disposal of waste water they have confirmed that any developer would need to put in place plans for the disposal of any waste water. Yorkshire Water would consider any request to dispose of waste water under their usual processes for accepting new industrial waste. If this was accepted as new waste then it would be taken to the most appropriate treatment works for treatment.

6.27 There is a significant water treatment works on the eastern edge of the City which currently provides treatment for Hull and parts of the East Riding. There is the potential, depending on fracking development and the suitability of the plant to process fracked water following a request to Yorkshire Water, that the City could experience increased lorry movements in the City as well as the water itself posing a potential hazard if there was a spill due to an insecure load or road traffic accident.

6.28 The report by Amec also estimated that a fracked well could generate traffic to the site that could result in between 14 and 51 lorry movements a day during the exploration and site preparation phase over a 32 to145 week period. The process of fracking requires the development of multiple wells within a small geographical area significantly increasing the number of vehicle movements within a local area. The sites currently being developed are primarily located in rural areas and therefore will have a significant impact on local road networks. There is therefore the high probability that the City could see an increase in lorry movements through or within the City related to the construction and extraction processes in addition to water treatment traffic.

6.29 In the context of climate change fracking has two significant impacts. The development of fracked gas may divert investment from more expensive (up-front) alternatives such as renewables and nuclear, weakening the case for reducing reliance on fossil fuels24. The Government sees the exploitation of unconventional oil and gas as a way of increasing the UK’s energy security and as a transition fuel to a low carbon future. However, the exploitation of all available oil and gas reserves weakens the development of a renewable energy and energy storage market. Further the use of

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25

IPCC Fifth Assessment Reports 2014 http://www.ipcc.ch/ 26

“What the Frack?” The Economist, 1 October 2011 p.34 and “Natural Gas: Should fracking stop?” Nature Volume 477, pp 271–275 15 September 2011 27

Tyndall Centre for Climate Change Research, Shale gas: an updated assessment of environmental and climate change impacts, Executive summary, November 2011, p7 28

Duncan Clark and Mike Berners-Lee The Burning Question Profile Books 2013 29

Naomi Klein This Changes Everything Capitalism vs the Climate Allen Lane 2014;

fracked oil and gas does not “offset” the use of conventional oil and gas and coal but rather drives those markets to other countries.

6.30 This therefore leads to the most significant argument against the development of a fracking industry. Climate Change is now acknowledged as the greatest threat to humanity as indicated in the latest UN Intergovernmental Panel on Climate Change Fifth Assessment Reports in 201425. The former Director of the Tyndall Centre for Climate Change Research, Professor Kevin Anderson, has said that “From a climate-change perspective this stuff [fracked gas and oil] simply has to stay in the ground.”26 A Tyndall Centre report published in November 2011 concluded:

“... emissions from a fully developed UK shale gas industry would likely be very substantial in their own right. If the UK Government is to respect its obligations under both the Copenhagen Accord and Low Carbon Transition Plan, shale gas offers no meaningful potential as even a transition fuel.”27

6.31 Books published by Duncan Clark & Mike Berners-Lee28 and

Naomi Klein29 all present the evidence that the world is unable to extract and burn the known reserves of carbon based fuel without leading the planet to a 50c temperature rise above pre-industrial levels. This is 30c above the internationally accepted “safe” temperature of 20c above pre-industrial levels stated in the Kyoto protocol. Fracking for gas and oil therefore creates a significant issue with both the Kyoto Protocol and the national targets contained in the Climate Change Act. The Paris Conference in December 2015 is seeking to reinforce the principles in the Kyoto Protocol in a new agreement limiting the world to a 20c rise in temperatures.

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30

http://www.foe.co.uk/sites/default/files/downloads/uk-shale-gas-unburnable-carbon-18099.pdf 31

CarbonTracker, 2013. Unburnable carbon. 32

Ed Davey, 2013a. Green Growth, Green Jobs: The success of renewables in Scotland. 18th March. 33

Christophe McGlade and Paul Ekins The Geographical distribution of fossil fuels unused when limiting global warming to 2

0c Nature 517 January 2015

34 Extended Data Table 3: Regional distribution of resources unburnable before 2050 in

absolute terms and as a percentage of current resources under the 2 °C scenario that allows CCS. (Christophe McGlade and Paul Ekins The Geographical distribution of fossil fuels unused when limiting global warming to 2

0c Nature 517 January 2015)

6.32 A report in October 2013 by Friends of the Earth30 based on analysis by Carbon Tracker31 demonstrated that if the UK is to meet its contributes under the Climate Change Act and enable the UN climate change agreements to reduce global temperature rises to at the most 20c above pre-industrial levels then we need to leave the gas and oil that can be obtain from fracking in the ground. The argument of gas as a transitioning energy source to a renewable energy future would require the rapid reduction in the use of oil and coal which we currently are not resolving. Further the Government’s current energy policy is to maximise the recovery of all known and possible oil, coal and gas reserves whether onshore or offshore32 and the Infrastructure Act 2015enshrine this policy in law.

6.33 Research published in Nature in 2014 by Christophe McGlade and Paul Ekins33 reinforces the implications for fossil fuel extraction if the planet is to have 50% chance of meeting the target of a 20c increase in temperatures above pre-industrial levels. The table below shows the implications for extraction of unconventional oil and gas. The research indicates that 100% of the oil and 82% of the gas must be left in the ground:

34

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http://www.foe.co.uk/sites/default/files/downloads/uk-shale-gas-unburnable-carbon-18099.pdf

http://www.foe.co.uk/sites/default/files/downloads/uk-shale-gas-unburnable-carbon-18099.pdf


35

http://www.hullcc.gov.uk/portal/page?_pageid=221,710564&_dad=portal&_schema=PORTAL

6.34 Hull as a low lying City on the coast is particularly vulnerable to climate change from rising sea levels and extreme weather events. Major floods in the City in 2007 and 2013 as well as other extreme weather events over the last decade have shown the significant impact a changing climate is having on the City its residents and businesses. Actions to reduce carbon dioxide are an integral part of the Council’s carbon reduction plans and it’s Environmental Policy Statement35. The Council has a target to reduce its carbon emissions by 34-45% by 2020/21 which it is on track to achieve. Hull is also seeking to enshrine its position as a low carbon energy city and projects in the City are paving the way for a low carbon future.

6.35 The extraction of significant amounts of unconventional oil and gas therefore increases the amount of carbon dioxide in the atmosphere and contributes to climate change. It also potentially diverts investment away from low and zero carbon energy generation and energy storage solutions. Unconventional oil and gas extraction therefore increases the threat to the city form extreme weather events as well as potential investment in new and emerging low and zero carbon industries and technology.


7.1 The Report has two options:

• Option 1: do nothing and use any income generated from fracking to develop renewable energy in the City

• Option 2: to adopt the position of opposing the development of unconventional oil and gas extraction and use any income generated from fracking to develop renewable energy in the City

7.2 There is a general risk that the Council may not be able to stop fracking on land it owns if under the terms of the sale of the land to the Council the previous owner reserved the right to re-enter and extract mined resources.

7.3 It is also not possible to ascertain the financial benefit to the Council of unconventional oil and gas development as this will be dependant on the future value of a well once it becomes operational.

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http://www.hullcc.gov.uk/portal/page?_pageid=221%2C710564&_dad=portal&_schema=PORTAL


7.4 Option 1 This option would mean that the Council would take a position of being indifferent to fracking within the City and would consider any applications for fracking on land owned by the Council either inside or outside of the City boundary on a case by case basis assessing the impact on the City of each application or request. While initially this is unlikely to have any significant risk to the Council in the event of a request or application for fracking the Council is likely to come under considerable pressure from those opposing fracking to either not allow fracking on its own land or set out evidence to challenge any planning application. It would be seen by the media, anti-fracking organisations and the unconventional oil and gas industry as being supportive of the fracking process.

7.5 The Council would seek if appropriate through the planning process to lodge objections to planning applications for such development. Any income generated from fracking that the Council would receive would be used to develop renewable energy projects in the City.

7.6 Option 2 The Council would adopt a position of not supporting the investigation and development of unconventional oil and gas wells that are deemed to have the potential for or undertake mini-fracking or fracking. This would send a clear message to the industry that the Council would not support well investigation or development using or potentially using fracking on land that it owns inside and outside the City and land owned by others that may present a threat to the City.

7.7 Putting the policy into effect may restrict the value of Council land where there is potential for such land to be used for fracking. This could potentially create a conflict with the duty upon the Council under s123 of the Local Government Act 1972 that provides;

“Except with the consent of the Secretary of State, a council shall not dispose of land under this section, otherwise than by way of a short tenancy, for a consideration less than the best that can reasonably be obtained”.

7.8 Accordingly consideration will need to be given to this issue where it arises.

8. Risk Assessment

8.1 The recommendations carries with them three possible risks:

• That it is seen as a planning policy and therefore predetermination of a planning application

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• That a position of opposing fracking applications has a detrimental impact on inward investment by oil and gas companies and supply chain companies that are part of the fracking industry.

• High profile media coverage including the possibility of the Council being viewed as contradictory in the way it uses the income from fracking.

8.2 There is a risk that the position of the Council may be viewed as

“pre-determination” by planning applicants. To minimise this risk the wording of the Policy makes clear that the policy is not a planning policy and therefore cannot be used in the consideration of any planning application.

8.3 The City currently accommodates a number of companies involved in the conventional oil and gas industry supply chain. It is possible that the development of a local fracking industry may present opportunities for local companies directly involved in oil and gas supply chain as well as civil engineering and logistics. The position of the Council may be seen by these companies as a risk to investment, although the Council would have no direct ability to stop unconventional oil and gas exploration. To reduce the risk to the City, the Council would continue to support the development of the business and encourage their investment in the City focused around the opportunities in the renewable energy and low carbon agenda, in particular the offshore wind industry.

8.4 The adoption of a policy has a potential to draw national coverage because of the contentious nature of the subject. To counter this the policy has been prepared in balanced terms. While it may impact on inward investment by organisations with a link to the oil and gas industry, it is not possible though to ascertain any long term impact on investment decisions or how it might affect the City’s relationship with the Department of Energy and Climate Change, Department for Communities and Local Government and other Government Departments.

9. Consultation

9.1 Consultation has taken place with the Energy and Infrastructure Overview and Scrutiny Commission on April 2015 and February 2015 which has emphasised the need to ensure the Policy covers land held by the Council in the East Riding and an emphasis on the protection of water sources for the City.

9.2 The City Planning Manager and Town Clerk have been consulted on the role of the Policy in the context of the Local Plan. The Policy will sit outside of the Local Plan and Joint Minerals Plan. The Policy is not a determining document in terms of the consideration of an application

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made to the Planning Authority which will consider an application on purely planning grounds as set out in the Local Plan and Joint Minerals Plan and the National Planning Policy Framework. We have not consulted with the East Riding in the development of the Policy.


10.1 Approval of the proposed Unconventional Oil and Gas Extraction Policy will set out the Council’s position on unconventional oil and gas extraction, but will not be binding on the Council as the Local Planning Authority. Any planning application for unconventional hydrocarbon extraction within the city must be determined by the Planning Committee on its own merits in accordance with the Council’s emerging Joint Minerals Local Plan and the National Planning Policy Framework. Therefore, the proposed policy will not constitute predetermination of any such planning application and is unlikely to be subject to any legal challenge.

11. Comments of the Section 151 Officer

11.1 The City Treasurer notes the proposed policy of the Council.

12. Comments of HR City Manager and compliance with the Equality Duty

12.1 Other than the publicity mentioned above there are no impacts on staffing or equalities for the Council.

13. Comments of Overview and Scrutiny

13.1 That the Commission supports the recommendations as detailed at section 2 of the officer report.

13.2 That as concerns were raised regarding whether Hull City Council would be recompensed should significant problems occur as a result of unconventional oil and gas extraction beneath the City, officers are requested to liaise with the Council’s Legal Service to determine the Council’s legal position.

13.3 That although the Commission considers that the local response to Unconventional Oil and Gas Extraction should be a joint one between Hull City Council and the East Riding of Yorkshire Council, as ERYC has not produced its own Unconventional Oil and Gas Extraction Policy, and will instead refer to the contents of the Joint Minerals Plan, the Commission recommends that discussion take place with ERYC at either an officer or Council level to work towards a co-ordinated response. (Ref.Sc4492).

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Mark Jones

City Regeneration and Policy Manager

Contact Officer: Martin Budd, Environment and Climate Change Strategic Advisor

Telephone No: 01482 613098 Officer Interests: None Background Documents: - Report to Energy and Infrastructure Overview and Scrutiny Commission 1st April 2014 Unconventional Gas Extraction - Fracking Report to Energy and Infrastructure Overview and Scrutiny Commission 11th February 2015 Fracking and Coal Bed Methane Policy Discussion Paper Email from the Department of Energy and Climate Change Office of Unconventional Gas and Oil 1st June 2015

14. Comments of the Portfolio Holder: Energy City

14.1 I support the recommendations which appear to fully address the formal decision taken by the Council in November 2014.

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Implications Matrix

This section must be completed and you must ensure that you have fully considered all potential implications

This matrix provides a simple check list for the things you need to have considered

within your report

If there are no implications please state

I have informed and sought advice from HR, Legal, Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, relevant Ward Members etc prior to submitting this report for official comments

Yes

I have considered whether this report requests a decision that is outside the Budget and Policy Framework approved by Council

Yes

Value for money considerations have been accounted for within the report

N/A

The report is approved by the relevant City Manager Yes

I have included any procurement/commercial issues/implications within the report

Yes

I have considered the potential media interest in this report and liaised with the Media Team to ensure that they are briefed to respond to media interest.

Yes

I have included any equalities and diversity implications within the report and where necessary I have completed an Equalities Impact Assessment and the outcomes are included within the report

N/A

Any Health and Safety implications are included within the report Yes

Any human rights implications are included within the report N/A

I have included any community safety implications and paid regard to Section 17 of the Crime and Disorder Act within the report

N/A

I have liaised with the Climate Change Advisor and any environmental and climate change issues/sustainability implications are included within the report

Yes

I have included information about how this report contributes to the City Plan/ Area priorities within the report

Yes

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Appendix 1

UNCONVENTIONAL OIL AND GAS EXPLORATION AND EXTRACTION POLICY

1. INTRODUCTION Hull City Council recognises the need to take steps to reduce carbon emissions to combat climate change, and to take steps to support and develop the transition to a low carbon economy and ensure energy security. The Council accepts the Government’s commitment to the exploration and extraction of unconventional oil and gas as contained in the Infrastructure Act 2015 and the National Planning Policy Framework. The Council approaches requests for the use of Council assets to further fracking activity on the basis that fracking represents a credible threat to the City based on its assessment of the potential environmental impacts to water, transport and geology and the impacts of extracting unconventional oil and gas in increasing the threat of climate change. Where required the Council will act to prevent fracking activity having an adverse impact on the City, its residents and business and the natural resources it is dependent upon. 2. SCOPE

The Council will not encourage applications by holders of the appropriate Petroleum Exploration and Development License to gain access to land owned by the Council inside or outside the City for the purposes of exploring, developing or extracting for unconventional oil and gas using fracking or mini fracking technology. In addition where impacts of any proposed unconventional oil or gas development, by an appropriate License holder, is considered to have an adverse impact on the City by for example;

• posing a threat to the City’s water resources

• adversely affecting traffic movements in the City and,

• requiring the movement of hazardous waste through the City resulting from the process

or any other impacts resulting from exploration or extraction that may be judged to adversely impact the City, the Council will take such action as may be necessary to protect the Community’s interests.

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This policy will not be a consideration when the Council is exercising its functions as the Local Planning Authority. The Policy will also not be directly implemented when preparing Local Plans or determining planning applications. 3. POLICY OBJECTIVES To ensure that the Council, City, its residents and business are protected from the impacts of the process of fracking undertaken in the exploration and extraction of unconventional oil and gas. To ensure that all statutory bodies and non statutory bodies involved in the licensing and operation of fracking operations are undertaking their duties fully and ensuring the protection of the City from the fracking process including, but not exclusively, water use and disposal, transportation of oil/ gas and development waste, construction and remedial operations, on site monitoring before, during and after development. The Council to assess the impact of planning applications inside and outside the City where unconventional oil and gas activity may affect the City and its resources. To submit written and, where appropriate, oral evidence to relevant planning committees and licensing bodies, following assessment of the impacts, to prevent such activity from negatively impacting the City of Hull and its environs. 4. MONITORING AND REVIEW The unconventional oil and gas exploration and extraction policy will be monitored and reviewed to ensure that it is clear, consistently applied and takes account of changes in relevant legislation and consenting requirements, scientific evidence and future Council policies. Policy History: Implementation: November 2015

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Appendix 2 Ground Water Source Protection Map Zones36 Ground Water Source Protection Zones

Inner zone (Zone 1)

Inner zone - subsurface activity only (Zone 1c)

Outer zone (Zone 2)

Outer zone - subsurface activity only (Zone 2c)

Total catchment (Zone 3

36 Source Environment Agency web site http://maps.environment-

agency.gov.uk/wiyby/wiybyController?value=hu1+2aa&lang=_e&ep=map&topic=groundwater&layerGroups=default&scale=9&textonly=off#x=504552&y=438625&lg=1,&scale=5

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http://maps.environment-agency.gov.uk/wiyby/wiybyController?value=hu1+2aa&lang=_e&ep=map&topic=groundwater&layerGroups=default&scale=9&textonly=off#x=504552&y=438625&lg=1%2C&scale=5




Aquifer Maps Superficial Deposits Designation

Pink areas on map show permeable layers capable of supporting water supplies at a local rather than strategic scale, and in some cases forming an important source of base flow to rivers. These are generally aquifers formerly classified as minor aquifers Aquifer Maps - Bedrock Designation

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Purple: These are layers of rock or drift deposits that have high intergranular and/or fracture permeability - meaning they usually provide a high level of water storage. They may support water supply and/or river base flow on a strategic scale. In most cases, principal aquifers are aquifers previously designated as major aquifer Orange: Secondary B - predominantly lower permeability layers which may store and yield limited amounts of groundwater due to localised features such as fissures, thin permeable horizons and weathering. These are generally the water-bearing parts of the former non-aquifers

Ground Water Vulnerable Zones

Major Aquifer High

Major Aquifer Intermediate

Major Aquifer Low

Minor Aquifer High

Minor Aquifer Intermediate

Minor Aquifer Low

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Appendix 3 Department of Energy and Climate Change Secretary of State Permitting Conditions

Column 1: conditions Column 2: documents

1 The environmental impact of the development which includes the relevant well has been taken into account by the local planning authority

A notice given by the local planning authority that the environmental information was taken into account in deciding to grant the relevant planning permission

2 Appropriate arrangements have been made for the independent inspection of the integrity of the relevant well

A certificate given by the Health and Safety Executive that it— (a) has received a well notification under regulation 6 of the Borehole Sites and Operations Regulations 1995, (b) has received the information required by regulation 19 of the Offshore Installations and Wells (Design and Construction, etc.) Regulations 1996, and (c) has visited the site of the relevant well

3 The level of methane in groundwater has, or will have, been monitored in the period of 12 months before the associated hydraulic fracturing begins

An environmental permit has been given by the relevant environmental regulator which contains a condition that requires compliance with a waste management plan which provides for monitoring of the level of methane in groundwater in the period of 12 months before the associated hydraulic fracturing begins

4 Appropriate arrangements have been made for the monitoring of emissions of methane into the air

An environmental permit which contains a condition requiring compliance with a waste management plan which provides for the monitoring of emissions of methane into the air for the period of the permit

5 The associated hydraulic fracturing will not take place within protected groundwater source areas

A decision document given by the relevant environmental regulator (in connection with an environmental permit) which indicates that the associated hydraulic fracturing will not take place within protected groundwater source areas

6 The associated hydraulic fracturing will not take place within other protected areas

A notice given by the local planning authority that the area in respect of which the relevant planning permission has been granted does not include any land which is within any other protected areas

7 In considering an application for the relevant planning permission, the local planning authority has (where material) taken into account the cumulative effects of— (a) that application, and (b) other applications relating to exploitation of onshore

A notice given by the local planning authority that it has taken into account those cumulative effects

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petroleum obtainable by hydraulic fracturing

8 The substances used, or expected to be used, in associated hydraulic fracturing— (a) are approved, or (b) are subject to approval, by the relevant environmental regulator

An environmental permit has been given by the relevant environmental regulator which contains a condition that requires substances used in associated hydraulic fracturing to be approved by that regulator

9 In considering an application for the relevant planning permission, the local planning authority has considered whether to impose a restoration condition in relation to that development

A notice given by the local planning authority that it has considered whether to impose such a condition

10 The relevant undertaker has been consulted before grant of the relevant planning permission

A notice given by the local planning authority that the relevant undertaker has been consulted

11 The public was given notice of the application for the relevant planning permission

A notice given by the local planning authority which confirms that the applicant for the relevant planning permission has certified that public notification requirements, as set out in a development order, have been met.

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Appendix 4

DECC/British Geological Survey Shale Gas Study potential Fracking Sites37

37

Page 2 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/226874/BGS_D

ECC_BowlandShaleGasReport_MAIN_REPORT.pdf

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Appendix 5 2015 Onshore Oil and Gas Licenses38

38

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/454361/14th_Round_Map_First_Tranche.pdf

Page 81 of 268



Page 82 of 268

Report to the Finance and Value for Money Overview and Scrutiny Commission – 20th November 2015

Cabinet – 23rd November 2015

Wards: All

TREASURY MANAGEMENT STRATEGY STATEMENT AND ANNUAL INVESTMENT STRATEGY – MID YEAR REVIEW REPORT 2015-16

Report of the Director of Resources and City Treasurer (S151 Officer) This item is not exempt Therefore exempt reasons are not applicable This is a Non-Key Decision

1. Purpose of the Report and Summary

1.1 This report provides Members with an update on Treasury Management

activity and performance in the first half of the financial year 2015-16, as required by the Council’s Treasury Management Policy Statement.

1.2 The scope and content of this report are in line with the requirements of the

Treasury Management Code of Practice and the Prudential Code for Capital Finance, and therefore this report is more detailed than standard committee reports.

1.3 This report is accompanied by a Glossary of Terms as shown at Appendix 5.

2. Executive Summary

2.1 Throughout the financial year 2015-16 Treasury Management officers have operated within the requirements and guidelines of the Prudential Code as laid down in the approved Treasury Management Strategy and Policy Statement, in terms of safeguarding the Council’s investments whilst ensuring they remain accessible, liquid and generate a return as required to support the Council’s Medium Term Financial Plan.

2.2 Performance for the financial year 2015-16 to date is currently forecast in line

with budgeted levels. Officers are, however, monitoring forecasts very closely and continue to liaise with the Council’s Treasury advisors, Capita Asset Services – Treasury Solutions, in terms of ongoing borrowing assumptions, debt rescheduling and investment opportunities, with the view of identifying and realising revenue savings against budgeted borrowing costs.

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2.3 The investment returns for 2015-16 to date have outperformed the benchmark target for the year, and are forecast to achieve budgeted levels. The security of funds is being maintained in these current volatile times, and performance and operation has continued to remain within the approved Prudential Indicator limits.

3. Recommendations

3.1 Members note the report; the investment returns achieved during 2015-16 and performance against the prudential indicators as stated at Appendix 1.

3.2 Members confirm that they remain content with the approved investment

strategy as shown at Appendices 2 to 4. 4. Reasons for Recommendations

4.1 As required by the Treasury Management Strategy Statement 2015/16, approved by Council in February 2015, delegation for considering the Mid-Year Review Report is to the Cabinet Executive Committee.


5.1 The report is an information only report with no impact on other Executive Committees.

6. Background

6.1 The Council operates a balanced budget, which broadly means cash raised during the year will meet its cash expenditure. Part of the treasury management operations ensure this cash flow is adequately planned, with surplus monies being invested in low risk counterparties, providing adequate liquidity initially before considering optimising investment return.

6.2 The second main function of the treasury management service is the funding

of the Council’s capital plans. These capital plans provide a guide to the borrowing need of the Council, essentially the longer term cash flow planning to ensure the Council can meet its capital spending operations. This management of longer term cash may involve arranging long or short term loans, or using longer term cash flow surpluses, and on occasion any debt previously drawn may be restructured to meet Council risk or cost objectives.

6.3 As a consequence treasury management is defined as:

“The management of the local authority’s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.”

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7.1 Reviewing the treasury activities of the Council for 2015/16 to date as compared to the Treasury Management Strategy approved by Council in February 2015, and with regards to the current treasury and economic environment.

8. Introduction

8.1 The Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management (revised 2011) was adopted by this Council on 23rd February 2012, and this Council fully complies with its requirements.

8.2 The primary requirements of the Code are as follows:

• Creation and maintenance of a Treasury Management Policy Statement which sets out the policies and objectives of the Council’s treasury management activities.

• Creation and maintenance of Treasury Management Practices which set out the manner in which the Council will seek to achieve those policies and objectives.

• Receipt by the Council of an annual Treasury Management Strategy Statement (including the Annual Investment Strategy and Minimum Revenue Provision Policy) for the year ahead, a Mid-Year Review Report (this report) and an Annual Report (stewardship report) covering activities during the previous year.

• Delegation by the Council of responsibilities for implementing and monitoring treasury management policies and practices and for the execution and administration of treasury management decisions.

• Delegation by the Council of the role of scrutiny of treasury management strategy and policies to a specified named body which in this Council is the Finance and Value for Money Overview and Scrutiny Commission.

8.3 The mid-year report has been prepared in compliance with CIPFA’s Code of

Practice on Treasury Management, and covers the following:

• An economic update for the first part of the 2015-16 financial year;

• A review of the Treasury Management Strategy Statement and Annual Investment Strategy;

• The Council’s capital expenditure (prudential indicators);

• A review of the Council’s investment portfolio for 2015-16;

• A review of the Council’s borrowing strategy for 2015-16;

• A review of any debt rescheduling undertaken during 2015-16;

• A review of compliance with Treasury and Prudential Limits for 2015-16.

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9. Economic Update

9.1 The following paragraphs are designed to impart a degree of knowledge around factors impacting on the treasury management function at the Council. This environment is constantly changing, no more so than in recent years. Any significant issues that arise between the report being written and the actual committee date will be reported verbally.

Economic performance to date and outlook

9.2 UK - UK GDP growth rates in 2013 of 2.2% and 2.9% in 2014 were the

strongest growth rates of any G7 country; the 2014 growth rate was also the strongest UK rate since 2006 and the 2015 growth rate is likely to be a leading rate in the G7 again, possibly being equal to that of the US. However, quarter 1 of 2015 was weak at +0.4% (+2.9% y/y) though there was a rebound in quarter 2 to +0.7% (+2.4% y/y). Growth is expected to weaken to about +0.5% in quarter 3 as the economy faces headwinds for exporters from the appreciation of Sterling against the Euro and weak growth in the EU, China and emerging markets, plus the dampening effect of the Government’s continuing austerity programme, although the pace of reductions was eased in the May Budget. Despite these headwinds, the Bank of England August Inflation Report had included a forecast for growth to remain around 2.4 – 2.8% over the next three years, driven mainly by strong consumer demand as the squeeze on the disposable incomes of consumers has been reversed by a recovery in wage inflation at the same time that CPI inflation has fallen to, or near to, zero over the last quarter. Investment expenditure is also expected to support growth. However, since the report was issued, the Purchasing Manager’s Index, (PMI), for services on 5 October would indicate a further decline in the growth rate to only +0.3% in Q4, which would be the lowest rate since the end of 2012. In addition, worldwide economic statistics and UK consumer and business confidence have distinctly weakened so it would therefore not be a surprise if the next Inflation Report in November were to cut those forecasts in August.

9.3 The August Bank of England Inflation Report forecast was notably subdued in respect of inflation which was forecast to barely get back up to the 2% target within the 2-3 year time horizon. However, with the price of oil taking a fresh downward direction and Iran expected to soon rejoin the world oil market after the impending lifting of sanctions, there could be several more months of low inflation still to come, especially as world commodity prices have generally been depressed by the Chinese economic downturn.

9.4 There are therefore considerable risks around whether inflation will rise in the near future as strongly as had previously been expected; this will make it more difficult for the central banks of both the US and the UK to raise rates as soon as was being forecast until recently, especially given the recent major concerns around the slowdown in Chinese growth, the knock on impact on the earnings of emerging countries from falling oil and commodity prices, and the volatility we have seen in equity and bond markets in 2015 so far, which could potentially spill over to impact the real economies rather than just financial markets.

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9.5 USA - The American economy made a strong comeback after a weak first quarter’s growth at +0.6% (annualised), to grow by no less than 3.9% in quarter 2 of 2015. While there had been confident expectations during the summer that the Fed. could start increasing rates at its meeting on 17 September, or if not by the end of 2015, the recent downbeat news about Chinese and Japanese growth and the knock on impact on emerging countries that are major suppliers of commodities, was cited as the main reason for the Fed’s decision to pull back from making that start. The nonfarm payrolls figures for September and revised August, issued on 2 October, were disappointingly weak and confirmed concerns that US growth is likely to weaken. This has pushed back expectations of a first rate increase from 2015 into 2016.

9.6 EZ - In the Eurozone, the ECB in January 2015 unleashed a massive €1.1 trillion programme of quantitative easing to buy up high credit quality government and other debt of selected EZ countries. This programme of €60bn of monthly purchases started in March 2015 and it is intended to run initially to September 2016. This already appears to have had a positive effect in helping a recovery in consumer and business confidence and a start to a significant improvement in economic growth.

9.7 GDP growth rose to 0.5% in quarter 1 2015 (1.0% y/y) but came in at +0.4% (+1.5% y/y) in quarter 2 and looks as if it may maintain this pace in quarter 3. However, the recent downbeat Chinese and Japanese news has raised questions as to whether the ECB will need to boost its QE programme if it is to succeed in significantly improving growth in the EZ and getting inflation up from the current level of around zero to its target of 2%.

Interest rate forecasts (%) The Council’s treasury advisor, Capita Asset Services, has provided the following forecast:

The above Capita forecasts for PWLB rates incorporate the introduction of the ‘PWLB Certainty Rate’ in November 2012 which will reduce PWLB borrowing rates by 0.20% for most local authorities. The actual PWLB rates are therefore reduced by 20bps to provide a true comparison to the forecasts. Page 87 of 268

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9.8 Capita Asset Services undertook its last review of interest rate forecasts on 11 August shortly after the quarterly Bank of England Inflation Report. Later in August, fears around the slowdown in China and Japan caused major volatility in equities and bonds and sparked a flight from equities into safe havens like gilts and so caused PWLB rates to fall below the above forecasts for quarter 4 2015. However, there is much volatility in rates as news ebbs and flows in negative or positive ways and news in September in respect of Volkswagen, and other corporates, has compounded downward pressure on equity prices. This latest forecast includes a first increase in Bank Rate in quarter 2 of 2016.

9.9 Despite market turbulence since late August causing a sharp downturn in PWLB rates, the overall trend in the longer term will be for gilt yields and PWLB rates to rise when economic recovery is firmly established accompanied by rising inflation and consequent increases in Bank Rate, and the eventual unwinding of QE. Increasing investor confidence in eventual world economic recovery is also likely to compound this effect as recovery will encourage investors to switch from bonds to equities.

9.10 The overall balance of risks to economic recovery in the UK is currently evenly balanced. Only time will tell just how long this current period of strong economic growth will last; it also remains exposed to vulnerabilities in a number of key areas.

9.11 The disappointing US nonfarm payrolls figures and UK PMI services figures at the beginning of October have served to reinforce a trend of increasing concerns that growth is likely to be significantly weaker than had previously been expected. This, therefore, has markedly increased concerns, both in the US and UK, that growth is only being achieved by monetary policy being highly aggressive with central rates at near zero and huge QE in place. In turn, this is also causing an increasing debate as to how realistic it will be for central banks to start on reversing such aggressive monetary policy until such time as strong growth rates are more firmly established and confidence increases that inflation is going to get back to around 2% within a 2-3 year time horizon. Market expectations in October for the first Bank Rate increase have therefore shifted back sharply into the second half of 2016.

9.12 Downside risks to current forecasts for UK gilt yields and PWLB rates currently include:

• Geopolitical risks in Eastern Europe, the Middle East and Asia, increasing safe haven flows.

• UK economic growth turns significantly weaker than we currently anticipate.

• Weak growth or recession in the UK’s main trading partners - the EU, US and China.

• A resurgence of the Eurozone sovereign debt crisis.

• Recapitalisation of European banks requiring more government financial support.

• Emerging country economies, currencies and corporates destabilised by falling commodity prices and / or the start of Fed. Rate increases, causing a flight to safe havens.

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9.13 The potential for upside risks to current forecasts for UK gilt yields and PWLB rates, especially for longer term PWLB rates include: -

• Uncertainty around the risk of a UK exit from the EU.

• The ECB severely disappointing financial markets with a programme of asset purchases which proves insufficient to significantly stimulate growth in the EZ.

• The commencement by the US Federal Reserve of increases in the Fed. funds rate causing a fundamental reassessment by investors of the relative risks of holding bonds as opposed to equities and leading to a major flight from bonds to equities.

• UK inflation returning to significantly higher levels than in the wider EU and US, causing an increase in the inflation premium inherent to gilt yields.

10. Treasury Management Strategy Statement and Annual Investment Strategy Update

10.1 The Treasury Management Strategy Statement (TMSS) for 2015-16 was

approved by Council on 26th February 2015. 10.2 There are no proposed policy changes to the TMSS, the details in this report

update the position in the light of the updated economic position and budgetary changes already approved.

11. The Council’s Capital Position (Prudential Indicators)

11.1 This part of the report is structured to update:

• The Council’s capital expenditure plans;

• How these plans are being financed;

• The impact of the changes in the capital expenditure plans on the prudential indicators and the underlying need to borrow; and

• Compliance with the limits in place for borrowing activity.

Prudential Indicators for Capital Expenditure

11.2 In line with the requirements of the Prudential Code, Council on 26th February 2015 approved a range of Prudential Indicators for 2015-16 and future years, aimed at ensuring affordability of capital plans and effective treasury management.

11.3 The table below shows the revised estimates for capital expenditure and the

changes since the capital programme was agreed at the Council on 26th February 2015. This revised capital expenditure programme is the subject of a separate report due to be presented to Members in November 2015:

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Changes to the Financing of the Capital Programme

11.4 The table below draws together the main strategy elements of the capital expenditure plans (above), and the expected financing arrangements of this capital expenditure. The borrowing element of the table increases the underlying indebtedness of the Council by way of the Capital Financing Requirement (CFR), although this will be reduced in part by revenue charges for the repayment of debt (the Minimum Revenue Provision). This direct borrowing need may also be supplemented by maturing debt and other treasury requirements.

Changes to the Prudential Indicators for the Capital Financing Requirement (CFR), External Debt and the Operational Boundary

11.5 The table below shows the CFR, which is the underlying external need to incur

borrowing for a capital purpose. It also shows the expected debt position over the period. This is termed the Operational Boundary.

Capital Expenditure by Programme Theme

2015/16 Original

Estimate £m

Current Position (30/9/15)

£m

2015/16 Revised

Estimate £m

Business Support & Change 12.988 2.956 9.697

Council Infrastructure (incl. Housing & Waste)

3.155 2.889 6.589

Energy City 10.407 4.332 11.308

Learning, Skills & Safeguarding Children

18.612 2.550 14.297

Neighbourhood & Communities 1.000 0.325 2.574

Public Health (Culture, Sport, Youth & Libraries)

1.670 0.256 1.695

Public Health, Prevention & Safeguarding Adults

2.304 0.871 2.050

Visitor Destination 16.787 2.879 21.637

Non-HRA 66.923 17.058 69.847

HRA 52.569 14.411 44.066

Total 119.492 31.469 113.913

Capital Expenditure 2015/16 Original

Estimate £m

Current Position

£m

2015/16 Revised

Estimate £m

Total spend 119.492 31.469 113.913

Financed by:

Capital receipts 8.533 8.479

Capital grants 31.268 29.953

Capital reserves 23.280 23.280

Revenue 17.550 17.550

Total financing 80.631 79.262

Borrowing need 38.861 34.651

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* - On balance sheet PFI schemes and finance leases.

Limits to Borrowing Activity

11.6 The first key control over the treasury activity is a prudential indicator to ensure

that over the medium term, net borrowing (borrowings less investments) will only be for a capital purpose. Gross external borrowing should not, except in the short term, exceed the total of CFR in the preceding year plus the estimates of any additional CFR for 2015/16 and next two financial years. This allows some flexibility for limited early borrowing for future years. The Council has approved a policy for borrowing in advance of need which will be adhered to if this proves prudent.


11.7 The Director of Resources and City Treasurer reports that no difficulties are

envisaged for the current or future years in complying with this prudential indicator.

11.8 A further prudential indicator controls the overall level of borrowing. This is the

Authorised Limit which represents the limit beyond which borrowing is prohibited, and needs to be set and revised by Members. It reflects the level of borrowing which, while not desired, could be afforded in the short term, but is not sustainable in the longer term. It is the expected maximum borrowing need with some headroom for unexpected movements. This is the statutory limit determined under section 3 (1) of the Local Government Act 2003.

2015/16 Original

Estimate £m

2015/16 Revised

Estimate £m

Prudential Indicator – Capital Financing Requirement

CFR – non housing 406.959 402.807

CFR – housing 319.621 310.418 Total CFR 726.580 713.225 Net movement in CFR 13.491 7.983

Prudential Indicator – External Debt / the Operational Boundary

Borrowing 487.643 487.643 Additional Borrowing 38.861 34.651

10% Net Budget Requirement 38.580 38.580 Other long term liabilities* 123.204 116.587

Total 688.288 677.461

2015/16 Original

Estimate £m

Current Position

£m

2015/16 Revised

Estimate £m

Gross borrowing 526.504 547.978 522.294

Plus other long term liabilities* 123.204 116.587 116.587

Gross borrowing 649.708 664.565 638.881

CFR (year end position) 726.580 713.225 713.225

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12. Investment Portfolio 2015-16

12.1 In accordance with the Code, it is the Council’s priority to ensure security of capital and liquidity, and to obtain an appropriate level of return which is consistent with the Council’s risk appetite. As set out in Section 9, it is a very difficult investment market in terms of earning the level of interest rates commonly seen in previous decades as rates are very low and in line with the 0.5% Bank Rate. The continuing potential for a re-emergence of a Eurozone sovereign debt crisis, and its impact on banks, prompts a low risk and short term strategy. Given this risk environment, investment returns are likely to remain low.

12.2 The Council held £141.473m of investments as at 30 September 2015

(£54.723m at 31 March 2015) and the investment portfolio yield for the first six months of the year is 0.55% against a benchmark of 0.35%.

12.3 A full list of investments held as at 30th September 2015 is shown in Appendix

4. 12.4 The Director of Resources and City Treasurer confirms that the approved limits

within the Annual Investment Strategy were not breached during the first six months of 2015-16.

12.5 The Council’s budgeted investment return for 2015-16 is £0.647m and based

on performance for the year to date is forecast to achieve this level.

Investment Counterparty Criteria 12.6 The current investment counterparty criteria selection approved in the TMSS is

meeting the requirement of the treasury management function.

Authorised limit for external debt 2015/16 Original

Indicator £m

2015/16 Revised

Indicator £m

Borrowing 565.084 560.874

Plus other long term liabilities* 123.204 116.587

Plus possible additional borrowing (grants/capital receipts)

39.801 38.432

Total 728.089 715.893

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Changes to Credit Rating Methodology – Capita Asset Services 12.7 The main rating agencies (Fitch, Moody’s and Standard & Poor’s) have,

through much of the financial crisis, provided some institutions with a ratings “uplift” due to implied levels of sovereign support. Commencing in 2015, in response to the evolving regulatory regime, all three agencies have begun removing these “uplifts” with the timing of the process determined by regulatory progress at the national level. The process has been part of a wider reassessment of methodologies by each of the rating agencies. In addition to the removal of implied support, new methodologies are now taking into account additional factors, such as regulatory capital levels. In some cases, these factors have “netted” each other off, to leave underlying ratings either unchanged or little changed. A consequence of the new methodologies is that they have also lowered the importance of the (Fitch) Support and Viability ratings and have seen the (Moody’s) Financial Strength rating withdrawn by the agency.

12.8 In keeping with the agencies’ new methodologies, the credit element of our own credit assessment process now focuses solely on the Short and Long Term ratings of an institution. While this is the same process that has always been used by Standard & Poor’s, this has been a change to the use of Fitch and Moody’s ratings. It is important to stress that the other key elements to our process, namely the assessment of Rating Watch and Outlook information as well as the Credit Default Swap (CDS) overlay have not been changed.

12.9 The evolving regulatory environment, in tandem with the rating agencies’ new methodologies also means that sovereign ratings are now of lesser importance in the assessment process. Where through the crisis, clients typically assigned the highest sovereign rating to their criteria the new regulatory environment is attempting to break the link between sovereign support and domestic financial institutions. This is in relation to the fact that the underlying domestic and where appropriate, international, economic and wider political and social background will still have an influence on the ratings of a financial institution.

12.10 It is important to stress that these rating agency changes do not reflect any

changes in the underlying status or credit quality of the institution, merely a reassessment of their methodologies in light of enacted and future expected changes to the regulatory environment in which financial institutions operate. While some banks have received lower credit ratings as a result of these changes, this does not mean that they are suddenly less credit worthy than they were formerly. Rather, in the majority of cases, this mainly reflects the fact that implied sovereign government support has effectively been withdrawn from banks. They are now expected to have sufficiently strong balance sheets to be able to withstand foreseeable adverse financial circumstances without government support. In fact, in many cases, the balance sheets of banks are now much more robust than they were before the 2008 financial crisis when they had higher ratings than now. However, this is not universally applicable, leaving some entities with modestly lower ratings than they had through much of the “support” phase of the financial crisis.

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13. Borrowing

13.1 The Council’s revised capital financing requirement (CFR) for 2015-16 is £713m. The CFR denotes the Council’s underlying need to borrow for capital purposes. If the CFR is positive the Council may borrow from the PWLB or the market (external borrowing) or from internal balances on a temporary basis (internal borrowing). The balance of external and internal borrowing is generally driven by market conditions. Table 11.6 shows the Council has forecast gross borrowings of £639m and has utilised cash flow funds in lieu of borrowing. This is a prudent and cost effective approach in the current economic climate but will require ongoing monitoring in the event that upside risk to gilt yields prevails.

13.2 Due to the overall financial position and the underlying need to borrow for

capital purposes (the capital financing requirement - CFR), new external borrowing of £70m was drawn during the first half year to part fund the net unfinanced capital expenditure and naturally maturing debt, as follows:

Lender Principal Type Interest

Rate Maturity

PWLB

PWLB

PWLB

PWLB

PWLB

PWLB

£5m

£5m

£15m

£15m

£15m

£15m

Fixed

Fixed

Fixed

Fixed

Fixed

Fixed

2.60%

2.73%

3.42%

3.42%

3.41%

3.41%

7 years

8 years

47 years

48 years

49 years

50 years

13.3 The general trend has been an increase in interest rates during the first quarter

but then a fall during the second quarter.

PWLB certainty rates, half year ended 30th September 2015

1 Year 5 Year 10 Year 25 Year 50 Year

Low 1.11% 1.82% 2.40% 3.06% 3.01%

Date 02/04/2015 02/04/2015 02/04/2015 02/04/2015 02/04/2015

High 1.35% 2.35% 3.06% 3.66% 3.58%

Date 05/08/2015 14/07/2015 14/07/2015 02/07/2015 14/07/2015

Average 1.26% 2.12% 2.76% 3.39% 3.29%

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14. Debt Rescheduling

14.1 Debt rescheduling opportunities have been limited in the current economic climate and consequent structure of interest rates. No debt rescheduling was undertaken during the first six months of 2015-16.

14.2 Any potential debt rescheduling opportunities are reviewed with the Council’s

external advisors. 15. Options and Risk Assessment

15.1 Although the content and criteria stated in the Treasury Management Strategy are statutory requirements, there are some options available to the Council in how this is managed, in terms of the following:

• Investment Options – alternative investment products, counterparties, limits and durations.

• Prudential Indicators – alternative limits for certain indicators, i.e. debt maturity profile, interest rate exposure.

• Minimum Revenue Provision – alternative options for the revenue charge.

15.2 The options proposed are based on the Council investing surplus monies with low risk counterparties in line with the Council’s low risk appetite. This provides the Council with adequate liquidity and security of funds before considering investment return.

16. Risk Assessment

16.1 The main risks surrounding the Council’s Treasury operations, mitigated through the Treasury Management Strategy and Investment Policy, are as follows:

• Prudential Indicator limits are breached – set and approved locally and regularly monitored as part of ongoing Treasury Management activity.

• Investments lost due to the inability of a Bank or Building Society to repay the loan – key criteria as part of the Creditworthiness Policy which ensures investments are made with only high credit quality counterparties for set durations.

• Too cautious an approach to investments could result in lower investment income being achieved – Investment Policy provides flexibility to use other non-specific investment products if it is considered prudent.

17. Consultation

17.1 This report is an information only report with no further consultation required.

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18.1 There are no direct legal implications arising from this report. 19. Comments of the Section 151 Officer

19.1 The Director of Resources and City Treasurer (S151 Officer) is the author of the report.

20. Comments of the HR City Manager and Compliance with the Equality Duty

20.1 The position is noted, there are no staffing or equality issues arising for the council.

21. Comments of the Overview and Scrutiny

21.1 This report is due to be considered by the Finance and Value for Money Overview and Scrutiny Commission on Friday, 20 November, 2015. Any comments or recommendations agreed by the Commission will be tabled at November Cabinet for consideration. (Ref. Sc4591)

22. Comments of the Portfolio Holder

22.1 Comments to be provided at the meeting.

Brendan Arnold Director of Resources and City Treasurer (S151 Officer)

Officer Contact: David Bell/Mike Armstrong Telephone No: (61) 3084 / (61) 3282

Officer Interests: None

Background documents: Borrowing and investment records CIPFA Code of Practice on Treasury Management

Treasury Management Policy Statement (Council 26th February 2015)

Treasury Management – Mid-Year Review Report 2015-16

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Implications Matrix


Yes


Yes


Yes

The report is approved by the relevant City Manager

Yes


n/a


Yes


n/a

Any Health and Safety implications are included within the report

n/a

Any human rights implications are included within the report

n/a


n/a


n/a


n/a

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Prudential Indicators 2015-16 Appendix 1

As at 30th September 2015

1.1 Affordability of Capital Plans

(a) Indicator 1 – Capital Expenditure “The local authority will make reasonable estimates of the total capital expenditure that it plans to incur during the forthcoming financial year and at least the following two financial years. These prudential indicators will be referred to as estimates of capital expenditure and shall be expressed in the following manner: Estimate of total capital expenditure to be incurred in years 1, 2 and 3 (and 4 etc if applicable)” (paragraph 47 of the code) This details the Council’s capital spending plans over the next 3 years and reports on the outturn from the previous financial year. These estimates are reporting decisions agreed previously in the Capital Programme report; there is no subjectivity to this indicator.

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

£'000 £'000 £'000 £'000

Actual Estimate Estimate Estimate

General Fund 52,861 69,847 81,053 42,013

HRA 37,286 44,066 67,405 48,787

Total 90,147 113,913 148,458 90,800 (b) Indicator 2 – Ratio of Financing Costs to Net Revenue Stream “The local authority will estimate for the forthcoming financial year and the flowing two financial years the ratio of financing costs to net revenue stream. This prudential indicator shall be referred to as estimates of the ratio of financing costs to net revenue stream and shall be expressed in the following manner: Estimates of financing costs / estimate of net revenue stream * 100 % For years 1, 2 and 3“(paragraph 38 of the code) Shows the revenue costs (the capital financing costs less investment income earned) associated with funding previous and future capital spending, as a percentage of total revenue spending. Again, as in the previous indicator the estimates that populate this table have been agreed by Committee, either through the Revenue Budget setting report or in the Medium Term Financial Strategy (MTFS) and are not subjective.

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

% % % %

Actual Estimate Estimate Estimate

General Fund 4.2 6.1 6.4 6.4

HRA 28.7 27.5 25.6 21.9

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(c) Indicator 3 – Capital Financing Requirement “The local authority will make reasonable estimates of the total of the capital financing requirement at the end of the forthcoming financial year and the following two years. These prudential indicators will be referred to as the estimates of capital financing requirement and shall be expressed as follows: Estimate of capital financing requirements as at the end of years 1, 2 and 3” (paragraph 50 of the code) The Capital Financing Requirement (CFR) measures the Council’s underlying need to borrow for a capital purpose i.e. that element of previous and proposed capital spending which has been / will be funded from borrowing. In order to ensure borrowing is maintained within sustainable limits, the Prudential Code requires that net external borrowing does not exceed the total of the capital financing requirement in the preceding year plus the estimates of any additional capital financing requirement for the current and next two financial years. The City Treasurer can confirm that this requirement will be met.

2015/16 2016/17 2017/18

£'000 £'000 £'000

Estimate Estimate Estimate

General Fund 402,807 440,142 444,807

HRA 310,418 319,289 310,898

Total 713,225 759,431 755,705

Borrowing 638,881 709,138 730,891 At the end of 2015-16 long term borrowing is forecast to be £74m below the capital financing requirement which is acceptable. (d) Indicator 4 – Incremental impact of Capital Investment Decisions on Council Tax and Housing Rents “The local authority will (i) forecast the total budgetary requirements for the authority based on no changes to the capital programme (ii) forecast the total budgetary requirements for the authority with the changes proposed to the capital programme included in the calculation (iii) take the difference between (i) and (ii) and calculate the addition or reduction to the council tax that would result. This calculation shall be undertaken for the forthcoming year and the following two financial years or longer timeframe if required to capture the full effect of capital investment decision. This prudential indicator will be referred to as estimates of the impact of the new capital investment decisions on the Council Tax and shall be expressed in the following manner: £xx.xx (Paragraph 39 of the code) The rules are the same for the Housing revenue account but show the effect on weekly rents The indicator seeks to demonstrate the additional costs, to be funded from the Council Tax and Housing Rents, of the Council’s capital spending plans.

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These estimates are in line with the Capital Programme Monitoring report due to be considered by Cabinet on 23rd November 2015.

2015/16 2016/17 2017/18

£ £ £


General Fund 4.14 8.74 12.16

HRA 0.09 0.84 1.15

1.2 Treasury Management

(a) Indicator 5 – Authorised Limit for External Debt “The local authority will set for the forthcoming financial year and the following two financial years an authorised limit for its total external debt, gross of investments, separately identifying borrowing from other long term liabilities. This prudential indicator will be referred to as the authorised limit and shall be expressed in the following manner: Authorised limit for external debt = authorised limit for borrowing + authorised limit for other long term liabilities For years 1, 2 and 3.” (Paragraph 54 of the code) With regard to external debt the Council is required to identify limits consistent with the Revenue Budget and Capital Programme. The Authorised Limit is based on a prudent, but not worse case scenario, with additional headroom to allow for unusual cash movements. The authorised limit will be the statutory limit determined under Section 3 (1) of the Local Government Act 2003. The indicator is calculated by taking the results from indicator six, Operational boundary for external debt, plus the amount of capital spend forecast to be financed from grants and capital receipts. This would cover the unlikely event of contractually committed spend not being financed from grants or capital receipts as planned and having to be financed from borrowing. 2015/16 2016/17 2017/18

£’000 £’000 £’000

Operational debt indicator (indicator 6)

677,461 744,906 766,652

Possible additional capital spend financed from borrowing (grants/capital receipts not received)

38,432 36,165 21,756

Total Amount 715,893 781,071 788,408

Rounded for indicator 716,000 781,000 788,000

Actual external debt stands at £665m as at September 2015, which is well within the Authorised Limit for 2015-16. Page 100 of 268

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(b) Indicator 6 – Operational Boundary for External Debt “The local authority will also set for the forthcoming financial year and the following two financial years an operational boundary for its total external debt, gross of investments, separately identifying borrowing from other long term liabilities. This prudential indicator will be referred to as the operational boundary and shall be expressed in the following manner: Operational boundary for external debt = operational boundary for borrowing + operational boundary for other long term liabilities. For years 1, 2 and 3.” (Paragraph 55 of the code) The Operational Boundary for external debt is based on the same estimates which underpin the Authorised Limit but does not include the additional headroom included within the Authorised Limit. The Operational Boundary provides an important tool for in year monitoring. The code goes on to say “It will probably not be significant if the operational boundary is breached temporarily on occasions due to variations in cashflow. However, a sustained or regular trend above the operational boundary would be significant and should lead to further investigation and action as appropriate” The Operational Limit for external debt has been calculated as the current amount of debt, plus additional borrowing, plus ten per cent of the year’s net revenue budget for cash flow purposes in the event of expenditure being higher than income at points during the year.

2015/16 2016/17 2017/18


£’000 £’000 £’000

Debt 487,643 522,294 595,863

Other liabilities 116,587 113,275 109,891

10% Net budget

requirement

38,580 35,768 35,761

Additional borrowing 34,651 73,569 25,137

Calculated

Operational Limit

677,461 744,906 766,652

Rounded for

indicator

677,000 745,000 767,000

Actual external debt stands at £665m as at September 2015, which is well within the Operational Limit for 2015-16. (c) Indicator 7 – Fixed and Variable Rate Exposure “The local authority will set for the forthcoming financial year the following two financial year’s upper limits to its exposure to the effects of changes in interest rates. These prudential indicators will relate to both fixed interest rates and variable interest rates and be referred to respectively as the upper limits on fixed interest rates and variable interest rate exposures.

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The upper limits on fixed interest rates and variable interest rates exposures may be expressed either as absolute amounts or as percentages. They may be related either to the authority’s net interest on, or to its net principal sum outstanding on, its borrowings / investments.” (Paragraph 67 and 68) The indicator seeks to ensure that the Council limits its exposure to the risk of interest rate changes and the consequent impact on the investment income and interest payments on loans, by restricting the proportion of variable rate borrowing.

2015-16 Estimate

2015-16 Actual to

Sept

2016-17 Estimate

2017/18 Estimate

% % % %

Fixed Rate – Upper Limit 90 85.77

90 90

Fixed Rate – Lower Limit 25 25 25

Variable Rate – Upper Limit 75 14.23

75 75

Variable Rate – Lower Limit 10 10 10

(d) Indicator 8 – Upper and Lower Limits for the maturity structure of borrowings “ The local authority will set for the forthcoming financial year both upper and lower limits with respect to the maturity structure of its borrowings. The prudential indicators will be referred to as the upper and lower limits respectively for the maturity structure of borrowing and shall be calculated as follows: Amount of projected borrowing that is fixed rate maturing in each period expressed as a percentage of total projected borrowing that is fixed rate. Where the periods in question are

• Under 12 months

• 12 months and within 24 months

• 24 months and within 5 years

• 5 years and within 10 years

• 10 years and above”

(paragraph 74 of the code) The indicator also seeks to ensure the Council controls its exposure to the risk of interest rate changes by limiting the proportion of debt maturing in any single period. Ordinarily debt is replaced on maturity and therefore it is important that the Council is not forced to replace a large proportion of loans at a time of relatively high interest rates. Page 102 of 268

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Actual as at 30/09/15

Upper Limit Lower Limit

% % %

Under 12 Months 15.70 20 0

12 months and within 24 months

9.05 20 0

24 months and within 5 years

22.01 50 0

5 years and within 10 years

17.34 75 0

10 years and above 35.90 90 25

(e) Indicator 9 – Upper limit for maturity structure of investments “Where a local authority invests, or plans to invest, for periods longer than 364 days, the local authority will set an upper limit for each forward financial year period for the maturing of such investments. These prudential indicators will be referred to as prudential limits for principal sums invested for periods longer than 364 days and shall be calculated as follows: Total principal invested to final maturities beyond the period end.” (paragraph 77 of the code) Under the Prudential Regime Councils are free to invest for periods of greater than 1 year. This indicator sets restrictions on the proportion of investments committed for longer periods in order to limit the risks associated with being unable to meet unexpected cash flows and/or being able to take advantage of future increases in interest rates.

Actual as at 30 Sept 2015

Upper Limit

% %

Under 12 Months 100 100

12 months and within 24 months

- 25

24 months and within 3 years

- 20


- 15


- 10

5 years and above - 10

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Appendix 2 Annual Investment Strategy 2015/16

1. Introduction

1.1 The Council defines its treasury management activities as: ‘The management of the local authority’s investments and cash-flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.

1.2 The Council regards the successful identification, monitoring and control of risk

to be the prime criteria by which the effectiveness of its treasury management activities will be measured. Accordingly, the analysis and reporting of treasury management activities will focus on their risk implications for the organisation.

1.3 The Council acknowledges that effective treasury management will provide

support towards the achievement of its business and service objectives. It is therefore committed to the principles of achieving value for money in treasury management and to employing suitable, comprehensive performance measurement techniques, within the context of effective risk management.

2. Investment Policy

2.1 The Council’s investment policy has regard to the CLG’s Guidance on Local Government Investments (the Guidance) and the 2011 revised CIPFA Treasury Management in Public Services Code of Practice and Cross Sectoral Guidance Notes (the CIPFA TM Code). The Council’s investment priorities will be security first, liquidity second, then return (yield).

2.2 In accordance with guidance from CLG and CIPFA, and in order to minimise the risk to investments, the Council has below clearly stipulated the minimum acceptable credit quality of counterparties for inclusion on the lending list. The creditworthiness methodology used to create the counterparty list fully accounts for the ratings, watches and outlooks published by all three ratings agencies with a full understanding of what these reflect in the eyes of each agency. Using the Capita ratings service potential counterparty ratings are monitored on a real time basis with knowledge of any changes notified electronically as the agencies notify modifications.

2.3 Continuing regulatory changes in the banking sector are designed to see

greater stability, lower risk and the removal of expectations of Government financial support should an institution fail. This withdrawal of implied sovereign support is anticipated to have an effect on ratings applied to institutions. This will result in the key ratings used to monitor counterparties being the Short Term and Long Term ratings only. Viability, Financial Strength and Support Ratings previously applied will effectively become redundant. This change does not reflect deterioration in the credit environment but rather a change of method in response to regulatory changes.

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2.4 Furthermore, the Council’s officers recognise that ratings should not be the sole determinant of the quality of an institution and that it is important to continually assess and monitor the financial sector on both a micro and macro basis and in relation to the economic and political environments in which institutions operate. The assessment will also take account of information that reflects the opinion of the markets. To this end the Council will engage with its advisors to maintain a monitor on market pricing such as “credit default swaps” and overlay that information on top of the credit ratings. This is fully integrated into the credit methodology provided by the advisors, Capita Asset Services in producing its colour codings which show the varying degrees of suggested creditworthiness.

2.5 Other information sources used will include the financial press, share price and other such information pertaining to the banking sector in order to establish the most robust scrutiny process on the suitability of potential investment counterparties.

2.6 The aim of the strategy is to generate a list of highly creditworthy

counterparties which will also enable diversification and thus avoidance of concentration risk.

2.7 The intention of the strategy is to provide security of investment and minimisation of risk.

2.8 The key requirements of both the Code and the investment guidance are to set an annual investment strategy, as part of its annual treasury strategy for the following year, covering the identification and approval of the following:

• The strategy guidelines for choosing and placing investments;

• The principles to be used to determine the maximum periods for which funds can be committed;

• Specified investments that the Council will use. These are high security (i.e. high credit rating, although this is defined by the Council, and no guidelines are given), and high liquidity investments in sterling and with a maturity of no more than a year.

2.9 The investment instruments identified for use in the financial year 2015-16 are set out at Appendix 2 under the ‘Specified’ and ‘Non-Specified’ Investments categories. Organisations to which the Council will lend and associated counterparty limits are detailed at Appendix 3.

Creditworthiness Policy

2.10 The Council applies the creditworthiness service provided by Capita Asset Services. This service employs a sophisticated modelling approach utlilising credit ratings from the three main credit rating agencies - Fitch, Moodys and Standard and Poors. The credit ratings of counterparties are supplemented with the following overlays:

• Credit watches and credit outlooks from credit rating agencies;

• Credit Default Swap (CDS) spreads to give early warning of likely changes in credit ratings

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• Sovereign ratings to select counterparties from only the most creditworthy countries.

2.11 Credit Default Swap (CDS) is a contract between two counterparties, which

basically gives protection, or insurance, in case of credit default. The payments involved in the contract are based on a spread currently traded in the market. The spread of CDS indicates the market perception of the likelihood of a credit event or default occurring. The higher the spread the more likely the market considers an event of default will occur.

2.12 This modelling approach combines credit ratings, credit watches and credit outlooks in a weighted scoring system which is then combined with an overlay of CDS spreads for which the end product is a series of colour coded bands which indicate the relative creditworthiness of counterparties. These colour codes are used by the Council to determine the duration for investments. The Council will therefore use counterparties within the following durational bands:

• Blue 1 year (only applies to nationalised or semi-nationalised UK banks)

• Orange 1 year

• Red 6 months

• Green 100 days

• No colour not to be used

2.13 Capita Asset Services creditworthiness service uses a wider array of information than just primary ratings and by using a risk weighted scoring system, does not give undue preponderance to just one agency’s ratings. The Council is satisfied that this service now gives a much improved level of security for its investments. It is also a service which the Council would not be able to replicate using in house resources.

2.14 Typically the minimum credit ratings criteria the Council use will be a short term rating (Fitch or equivalents) of short term rating F1, long term rating A-. There may be occasions when the counterparty ratings from one rating agency are marginally lower than these ratings but may still be used. In these instances consideration will be given to the whole range of ratings available, or other topical market information, to support their use.

2.15 All credit ratings will be monitored on a weekly basis. The Council is alerted to

changes to ratings of all three agencies through its use of the Capita creditworthiness service.

• If a downgrade results in the counterparty / investment scheme no longer meeting the Council’s minimum criteria, its further use as a new investment will be withdrawn immediately.

• In addition to the use of credit ratings the Council will be advised of information in movements in Credit Default Swap against the iTraxx benchmark and other market data on a weekly basis. Extreme market movements may result in downgrade of an institution or removal from the Council’s lending list.

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2.16 Sole reliance will not be placed on the use of this external service. In addition this Council will also use market data and market information, information on government support for banks and the credit ratings of that supporting government.

2.17 If financial institutions are upgraded in rating and therefore meet the Council’s criteria as defined, then committee approval will be sought prior to inclusion on the counterparty list.

Country Limits

2.18 The Council has determined that it will only use approved counterparties from the UK only.

Investment Counterparty Selection Criteria

2.19 The primary principle governing the Council’s investment criteria is the security of its investments, although the yield or return on the investment is also a key consideration. After this main principle the Council will ensure that:

• It maintains a policy covering both the categories of investment types it will invest in, criteria for choosing investment counterparties with adequate security, and monitoring their security. This is set out in the Specified and Non-Specified investment sections below; and

• It has sufficient liquidity in its investments. For this purpose it will set out procedures for determining the maximum periods for which funds may prudently be committed. These procedures also apply to the Council’s prudential indicators covering the maximum principal sums invested.

2.20 The Director of Resources and City Treasurer will maintain a counterparty list

in compliance with the following criteria and will revise the criteria and submit them to Council for approval as necessary. These criteria are separate to that which determines which types of investment instrument are either Specified or Non-Specified as it provides an overall pool of counterparties considered high quality which the Council may use, rather than defining what types of investment instruments are to be used.

2.21 The rating criteria use the lowest common denominator method of selecting counterparties and applying limits. This means that the application of the Council’s minimum criteria will apply to the lowest available rating for any institution. For instance, if an institution is rated by two agencies, one meets the Council’s criteria, the other does not, the institution will fall outside the lending criteria. This is in compliance with a CIPFA Treasury Management Panel recommendation in March 2009 and the CIPFA Treasury Management Code of Practice.

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2.22 Credit rating information is supplied by Capita Asset Services, the Council’s treasury consultants, on all active counterparties that comply with the criteria below. Any counterparty failing to meet the criteria would be omitted from the counterparty (dealing) list. Any rating changes, rating watches (notification of a likely change), rating outlooks (notification of a possible longer term change) are provided to officers almost immediately after they occur and this information is considered before dealing. For instance, a negative rating watch applying to a counterparty at the minimum Council criteria will be considered for suspension from use, with all others being reviewed in light of market conditions.

2.23 On occasions ratings may be downgraded when an investment has already been made. The criteria used are such that a minor downgrading should not affect the full receipt of the principal and interest.

2.24 The criteria for providing a pool of high quality investment counterparties (both

specified and non-specified investments) is as follows:

• Banks 1 – a good credit quality – the Council will only use banks which:

• are UK banks only and have, as a minimum, the following Fitch credit ratings:

• Banks 1 – a good credit quality – the Council will only use banks which hold a minimum rating of:

• Short term – F1

• Long term – A-

• Banks 2 – part nationalised UK banks – Lloyds Bank and Royal Bank of Scotland. These banks can be included if they continue to be part nationalised or they meet the rating in Banks 1 above.

• Banks 3 – The Council’s own banker (Natwest Bank) for transactional purposes if the bank falls below the above criteria, although in this case balances will be minimised in both monetary size and time.

• Bank subsidiary and treasury operation – The Council will use these where the parent bank has provided an appropriate guarantee or has the necessary ratings outlined above.

• Building societies – The Council will use all societies which meet the ratings for banks as outlined above.

• Money Market Funds – AAA rating.

• UK Government (DMADF)

• Local authorities. Page 108 of 268

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Group Considerations

2.25 Due care will be taken will be taken to consider the group exposure of the Council’s investments. In addition limits in place above will apply to a group of companies.

Use of Additional Information other than Credit Ratings

2.26 Additional requirements under the Code require the Council to supplement credit rating information. Whilst the above criteria relies primarily on the application of credit ratings to provide a pool of appropriate counterparties for officers to use, additional operational market information will be applied before making any specific investment decision from the agreed pool of counterparties. This additional market information (for example Credit Default Swaps, negative rating watches/outlooks) will be applied to compare the relative security of differing investment counterparties.

Time and Monetary Limits Applying to Investments

2.27 The time and monetary limits for institutions on the Council’s counterparty list are as follows (these will cover specified and non-specified investments):

Fitch Long Term Rating

(minimum)

Fitch Short Term Rating

(minimum)

Money Limit

Time Limit

Banks 1 category high quality AA- F1+ £15m 1 yr

Banks 1 category medium quality

A F1 £7.5m 1 yr

Banks 1 category lower quality A- F1 £5m 1 yr

Banks 2 category – part nationalised – high quality

AA- F1+ £20m 1 yr

Banks 2 category – part nationalised – medium quality

A F1 £10m 1 yr

Banks 2 category – part nationalised – low quality

A- F1 £7.5m 1 yr

Limit 3 category – Council’s banker (not meeting Banks 1)

N/A N/A £2.5m 1 day

UK Government (DMADF) N/A N/A Unlimited 6 mths

Local authorities N/A N/A £15m 1 yr

Money Market Funds AAA £15m liquid

2.28 The proposed criteria for Specified and Non-Specified investments are shown in Appendix 3 for approval.

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Appendix 3

Credit and Counterparty Risk Management – Specified and Non-Specified Investments and Limits (Treasury Management Practice (TMP1))

1. Specified and Non-Specified Investments

1.1 Specified investments are investments denominated in sterling, do not exceed 364 days in term, do not involve the acquisition of share or loan capital, are made with the UK Government or a local authority, or with a body or investment scheme meeting the minimum ‘high’ credit quality criteria where applicable. Non-specified investments are anything that does not satisfy the specified investment criteria, i.e. investments with a maturity of greater than 1 year.

1.2 Importantly the acquisition of share capital or loan capital in any body

corporate is defined as capital expenditure under Section 16(2) of the Local Government Act 2003. Such investments will have to be funded out of capital or revenue resources and will be classified as ‘non-specified investments’. As a result no such investment instruments, such as equities, are included within this Appendix.

Specified Investments

Minimum ‘High’ Credit Criteria

Use

Term deposits – banks Short-term F1, Long-term A- In-house

Term deposits – building societies Short-term F1, Long-term A- In-house

Term deposits – local authorities -- In-house

Term deposits – UK part nationalised banks

Short-term F1, Long-term A- In-house

UK Government support to the banking sector

UK Sovereign Rating In-house

Debt Management Agency Deposit Facility (DMADF)– UK Government

UK Sovereign Rating In-house

Money Market Funds AAA In-house

1.3 The original list of banks covered when the support package was initially

announced was:

• Abbey (now part of Santander)

• Barclays

• HBOS (now part of Lloyds Group)

• Lloyds TSB

• HSBC

• Nationwide Building Society

• RBS

• Standard Chartered Page 110 of 268

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1.4 Banks eligible for support under the UK bail-out package and which have issued debt guaranteed by the Government are eligible for a continuing Government guarantee when debt issues originally issued and guaranteed by the Government mature and are refinanced. However, no other institutions can make use of this support as it closed to new issues and entrants on 28.2.10. The banks which have used this explicit guarantee are as follows:

• Bank of Scotland

• Barclays

• Clydesdale

• Coventry Building Society

• Investec bank

• Nationwide Building Society

• Rothschild Continuation Finance plc

• Standard Life bank

• Tesco Personal Finance plc

• Royal Bank of Scotland

• West Bromwich Building Society

• Yorkshire Building Society

1.5 Accounting treatment of investments – the accounting treatment may differ from the underlying cash transactions arising from investment decisions made by the Council. To ensure that the Council is protected from any adverse revenue impact, which may arise from these differences, Treasury Officers in consultation with Sector will review the accounting implications of any new transactions before they are undertaken.

Non-specified Investments Maturities of ANY period (not applicable for 2015-16 Investment Strategy)

Minimum Credit Criteria

Use Max % of total

investments

Max. maturity period

Term deposits with unrated counterparties

Market Capitalisation above £500m

In-house Nil - no longer applicable

Nil – no longer

applicable

Maturities in excess of 1 year (not applicable for 2015-16 Investment Strategy)

Minimum Credit Criteria

Use Max % of total

investments

Max. maturity period

Term deposits – banks Short-term F1, Long-term A+

In-house Nil - no longer applicable

Nil - no longer

applicable

Term deposits – local authorities

-- In-house Nil - no longer applicable

Nil - no longer

applicable

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Appendix 4

Approved Organisations for on-lending Of Surplus Funds

Note – the organisations listed below currently meet the specified criteria as per the Investment Policy of the above report, section 2.26 refers.

UK Banks (Maximum Investment Period of up to 1 year) Approved

Investment Limit (max)

Proposed Investment Limit (max)

Current Investment

Limit **

Investment (as at

30/9/15)

Santander UK plc £15m £15m Nil Nil

Barclays Bank plc £15m £15m £7.5m £7.5m

Clydesdale Bank (trading as Yorkshire Bank)

£15m £15m Nil Nil

HSBC Bank plc £15m £15m £15m £15m

Lloyds Banking Group inc: * Lloyds TSB Bank plc Bank of Scotland plc

£20m £20m £10m

£10m

Royal Bank of Scotland Group inc: * Royal Bank of Scotland NatWest Bank plc Ulster Bank Ltd (not used)

£20m £20m £10m £8m

£2.323m

Note * - The increased limits are based on Lloyds and RBS being part-nationalised therefore carrying additional UK Government security. Note **: The current investment limits above reflect the action taken as per the creditworthiness criteria included in the Investment Policy stated at paragraph 2.27 in the above report. Current investment limits have been reduced due the wholescale downgrade of ratings of some of the above organisations.

UK Building Societies (Maximum Investment Period of up to 1 year) Approved

Investment Limit (max)

Proposed Investment Limit (max)

Current Investment

Limit **

Investment (as at

30/9/15)

Nationwide Building Society £15m £15m £7.5m £7.5m

Leeds Building Society £15m £15m £5m Nil

Yorkshire Building Society £15m £15m £5m £5m

Coventry Building Society £15m £15m £7.5m £7.5m

Other (Maximum Investment Period of up to 1 year) Approved

Investment Limit

Proposed Investment

Limit

Current Investment

Limit

Investment (as at

30/9/15)

Any Local Authority £15m (each) £15m (each) £15m (each) £44.4m

Debt Management Agency Deposit Facility (DMADF) ***

Unlimited Unlimited Unlimited Nil

Money Market Funds £15m (each) £15m (each) £15m (each) £34.25m

Note *** - The unlimited investment limit for the DMADF is based on the current uncertainties within the banking sector, and if further bank failures occur, this account would provide for the security of the Council’s cash surpluses.

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Appendix 5 GLOSSARY OF TERMS

Base Rate

Minimum lending rate of a bank or financial institution in the UK determined by the Bank of England.

Basis Point

1/100th of 1%, i.e. 0.01%.

Call Account

Deposits/investments placed with a bank or other financial institutions which are available immediately, i.e. no advance notice is required.

Capital Expenditure

Expenditure on the acquisition of fixed assets which has a long term value to the Council (e.g. the purchase of land, erection of buildings), or expenditure that adds to the value of these assets and not just maintains their existing value.

Capital Financing Requirement (CFR)

The total historic outstanding capital expenditure which has not yet been paid for from either revenue or capital resources. This is the cumulative total of the Council’s borrowing need.

Capital Grants

Monies provided to local authorities, usually from Government departments, for capital expenditure only.

Capital Receipts

These are proceeds from the sale of capital assets such as land or property. These receipts can be used to fund the capital programme but are not available to support the Revenue Budget.

Counterparty

Another (or the other) party to an agreement or other market contract (e.g. lender or borrower). In the Council’s case this generally relates to a bank or building society.

Credit Default Swap

This provides protection (insurance) to a financial institution following a loan or investment against any potential default, i.e. protection against non-repayment of loan or investment.

Credit Outlook

A formal indication by a credit rating agency that it anticipates a change in a particular credit rating of a bank or other financial institution at some time in the foreseeable future.

Credit Rating

An assessment of the creditworthiness of a bank or other financial institution, made by a credit rating agency, i.e. Fitch, Moody’s and Standard & Poor’s.

Credit Rating Agency Independent organisations that assess the credit quality of corporate and government debt. The main agencies are Moody’s, Standard & Poor’s and Fitch.

Credit Watch

Attached to a bank or other financial institution in which a downgrading or upgrading of the credit rating could be imminent.

Creditworthiness

A measure of the ability and the willingness of a bank or other financial institution to honour their financial obligations. Page 113 of 268

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Debt Cap

A limit set on the council housing borrowing requirement for each local authority.

Debt Rescheduling

Refinancing of current debt/loans to generate revenue savings if rates are favourable.

Investment Instrument

Investment options available to local authorities, i.e. fixed term deposits, notice accounts.

Liquidity

The ability to convert an asset (investment) easily into cash quickly without affecting the asset’s price or value.

Maturity

The end date of a loan, borrowing, investment or other form of capital financing.

Minimum Revenue Provision (MRP)

Local authorities are required each year to set aside some of their revenues as provision for debt repayment. The provision (revenue charge) is in respect of capital expenditure financed by borrowing.

Money Market

Consists of financial institutions (e.g. banks and building societies) and dealers in money and credit.

Money Market Fund

A well rated, highly diversified pooled investment vehicle whose assets mainly comprise of short term instruments.

Non-Specified Investments

Anything that does not satisfy the specific investment criteria, i.e. investments with a term of greater than 1 year.

Notice Account

Deposits/investments placed with a bank or other financial institutions which are available at notice, i.e. 15/30 day notice to withdraw is required.

PFI

Private Finance Initiative – a Government initiative in which private sector companies usually design, build and operate a public facility for a set period of time, often 25 years.

Prudential and Treasury Indicators (see below for description of each indicator)

As required by The Prudential Code, requires local authorities to self regulate the affordability, prudence and sustainability of their capital plans, buy setting estimates and limits, and publishing actuals, for a range of indicators.

Prudential Borrowing

Permissible borrowing within defined affordable limits.

Prudential Code (CIPFA)

Local Authorities determine their own programmes of capital investment in fixed assets that are central to the delivery of quality local public services. The Prudential Code has been developed as a professional code of practice to support them in taking these decisions. The Prudential Code underpins the overall system of capital finance. The objectives of the Prudential Code are to ensure, within a clear framework, that the capital investment plans of local authorities are affordable, prudent and sustainable.

PWLB

Public Works Loans Board – a statutory body operating within the Debt Management Office of the HM Treasury and is responsible for lending money to local authorities and other prescribed bodies. Page 114 of 268

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Risk Appetite

The level of risk Local Authorities wish to take in the lending of surplus monies. The Council operates a low risk appetite, i.e. only investing with low risk counterparties, where the security and liquidity of cash are more important than yield (return).

Specified Investments

Investments that are made in sterling, do not exceed 364 days in term, do not involve the acquisition of share or loan capital, are made with the UK Government or a local authority, or with a financial institution and meet the minimum credit criteria.

Treasury Management Code of Practice (CIPFA)

Provides Local Authorities with standards and guidance to support and underpin their overall Treasury Management activities.

Yield (Return)

The return on an investor’s capital investment. The higher the yield the higher the risk of the capital invested.

Prudential and Treasury Indicators

Affordability of Capital Plans:

Indicator 1 – Capital Expenditure

This details the Council’s approved capital spending plans for the next 3 years and reports on the outturn from the previous financial year. These estimates are reporting decisions agreed previously in the Capital Programme report, and therefore there is no subjectivity to this indicator.

Indicator 2 - Ratio of Financing Costs to Net Review Stream

This shows the revenue costs (the capital financing costs less investment income earned) as a percentage of the total revenue budget. There is a separate calculation for the General Fund and the HRA. Again, these estimates have been agreed by Committee through the Revenue Budget setting report or in the Medium Term Financial Strategy.

Indicator 3 – Capital Financing Requirement (CFR)

The CFR measures the Council’s overall borrowing requirement for capital purposes, i.e. that element of previous and proposed capital spending which has been/will be funded from borrowing. The Prudential Code requires that net external borrowing does not exceed the CFR.

Indicator 4 – Incremental Impact of Capital Investment Decisions on Council Tax and Housing Rents

This indicator seeks to demonstrate the additional costs, to be funded from the Council Tax and Housing Rent of the Council’s capital spending plans, i.e. the capital plans to be funded from borrowing. These estimates are in line with the General Fund and HRA Revenue Budget setting reports.

Treasury Management

Indicator 5 – Authorised Limit for External Debt

The Council is required to set external borrowing limits consistent with the Revenue Budget and Capital Programme. The Authorised Limit is based on a prudent limit, with additional headroom to allow for unusual cash movements. Page 115 of 268

34 of 34

Indicator 6 – Operational Boundary for External Debt

The Operational Boundary is based on the same estimates as the Authorised Limit, but does not include any additional headroom. The Operational Boundary is the current debt plus additional planned borrowing, plus 10% of next years revenue budget for cash flow purposes.

Indicator 7 – Fixed and Variable Interest Rate Exposure

This indicator seeks to ensure that the Council limits its exposure to the risk of interest rate changes and the subsequent impact of such changes on the interest payments on loans (a revenue expense), by restricting the proportion of variable rate borrowing.

Indicator 8 – Upper and Lower Limits for the maturity structure of borrowings

This indicator also seeks to ensure the Council controls its exposure to the risk of interest rate changes by limiting the proportion of debt due to be repaid in any one year. Debt is ordinarily replaced on maturity and therefore it is important that the Council is not forced to replace a large proportion of loans at a time of relatively high interest rates (aimed at mitigating any potential impact on the revenue budget).

Indicator 9 – Upper Limit for the maturity structure of Investments

Under the Prudential Code councils are free to invest for periods of greater than 1 year. This indicator sets restrictions on the proportion of investments committed for longer periods in order to limit the risks associated with being unable to meet unexpected cash flows and/or being able to take advantage of future increases in interest rates.

Page 116 of 268

1

Report to the: Finance and Value for Money Overview and Scrutiny Commission 20 November 2015

Cabinet 23 November 2015 Wards: All

2015/16 Capital Monitoring Report - Quarter 2

Report of the Director of Resources and City Treasurer (S151 Officer) This item is not exempt Therefore exempt reasons are not applicable This is a Non-Key Decision 1. Purpose of the Report and Summary 1.1. The purpose of this report is to provide Members with an updated overview of

progress against budget and planned activity for the 2015/16 capital programme.

2. Executive Summary 2.1. The report provides detail of both expenditure against budget and progress against

delivery outputs/milestones. The following appendices are included which incorporate the following:

• Appendix A – Forecast outturn spend for 2015/16 as at Quarter 2 and summary outputs/milestones information (separated by Portfolio Holder responsibilities)

• Appendix B – Revised capital programme 2015/16 to 2017/18

• Appendix C – Individual programme commentary 2.2. Actual spend as at the end of September 2015 is £31.5m against a revised budget

of £125m. Project managers have provided revised forecasts which suggest a full year spend of £113m (as shown at Appendix A). The main variations of spend to budget are included in sections 8 and 9 of this report, with a revised capital programme incorporating the proposed budget changes shown at Appendix B.

2.3. The report also details (at section 10) other amendments to the programme arising from additional grant income and the development of previously approved schemes.

Page 117 of 268

2

2.4. Analysis of spending profiles in recent years suggests the Council normally spends around two thirds of the capital budget in the second half of each financial year, which is broadly in line with the forecast level of expenditure for 2015/16.

2.5. An analysis of capital spending patterns, and forecast outturn positions is provided graphically below:

Page 118 of 268

3

2.6. Overall Programme Managers have provided positive reports in terms of fulfilling

and achieving project milestones and outputs based on capital budget allocations. 2.7. A further monitoring report will be presented to Members in February 2016

providing an updated forecast outturn position as at the end of December 2015 (Quarter 3).

2.8. HRA Current Position As Members will no doubt be aware there have been a number of significant housing announcements in the July 2015 Summer Budget and the subsequent publication of the Welfare Reform & Work Bill and the Housing & Planning Bill. The combination of these has resulted in a currently ongoing process to analyse and understand the highly significant implications for the HRA in general and our demands and sustainability of our stock at a more detailed level, with Empty Property projects, New Build programmes and Cladding programmes paused whilst they are reviewed in the light of the new fiscal landscape, including any initiatives to reduce costs where possible. These three programmes are expected to spend c£10m less than budget in the current financial year, and Cabinet will receive later this year updates on the outcomes of these reviews. Should these programmes continue then this would mostly represent changes in the phasing of spend rather than the overall value.

3. Recommendations

It is recommended that: 3.1. Members consider the monitoring information provided at section 8 and approve

the proposed re-profiling of budgets for specific schemes at section 9. 3.2. Members approve the amendments to the programme detailed at section 10,

summarised below as:

3.3. Members note the forecast outturn as detailed at Appendix A and approve the

revised capital programme for 2015/16 to 2017/18, incorporating the proposed amendments (sections 9 and 10), as detailed at Appendix B.

£m £m

Current Approved Programme (Cabinet 28/09/15) 362.396

Amendments to resources:

Additional External Grant Funding 0.500

Additional Spend to Save (Self Funded Scheme) 0.125 0.625

Proposed Revised Programme 363.021

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4

4. Reasons for Recommendations 4.1. Enables Members to consider the progress and delivery of the approved Capital

Programme within the approved funding envelope. 5. Impact on other Executive Committees (including Area Committees) 5.1. The provision of reliable financial information supports the Council’s decision

making processes and therefore impacts on all the priorities. 6. Background 6.1. The capital programme for 2015/16 to 2017/18 was approved by Council on 26th

February 2015, based on the latest funding assumptions and the financial implications are appropriately reflected within the revenue budget projections contained within the reports relating to Medium Term Financial Strategy and Housing Revenue Account (HRA).

6.2. A revised capital programme for 2015/16 to 2017/18 was subsequently approved

by Council in May 2015, reflecting additional funding to support the Visitor Destination Programme.

6.3. A further revised capital programme for 2015/16 to 2017/18 was subsequently approved by Cabinet on June 2015, reflecting the reprofiling adjustments in relation to project commitments in light of 2014/15 outturn.

6.4. As part of the capital programme monitoring cycle, a revised programme was approved by Cabinet on 28th September 2015 (Quarter 1 monitoring update). The adjustments are summarised in the following table:

£m £m

Original Programme (Feb 2015 Council) 336.512

Additional Funding in Support of the Visitor Destination Programme

9.000

Revised Programme (May 2015 Council) 345.512

Adjustments re 2014-15 Outturn Position:

- accelerated funding -2.715

- contractual commitments 7.513

- non-contractual reprofiling (ringfenced schemes) 2.044 6.842

Revised Programme (June 2015 Cabinet) 352.354

Amendments to resources:

Additional External Grant Funding 9.867

Additional Spend to Save (Self Funded Scheme) 0.175 10.042

Revised Programme (September 2015 Cabinet) 362.396

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5

6.5. This report provides members with an updated position as at the end of September

2015 (Quarter 2). 7. Issues for Consideration 7.1. This is the second monitoring report of 2015/16 and provides Members with an

updated overview of progress against budget and planned activity for the 2015/16 capital programme. The following sections provide the overview in more detail.

8. 2015/16 Programme Review 8.1. Actual capital expenditure to the end of September 2015 for the full capital

programme amounts to £31.5m against a revised budget of £125m for 2015/16. Whilst historic trends suggest spend levels do increase significantly in the later months of the year, Programme Managers have reviewed the forecast outturn positions, and confirm that they remain confident of delivering the approved programme for 2015/16, although several programmes require budgets to be re-phased into future years.

8.2. The most significant variances cover the following area:

Building Optimisation Programme

Approved

Budget £’000

Forecast Outturn at Q2

£’000

Variance

£’000

2015/16 3,070 1,933 1.137

The anticipated 2015/16 outturn expenditure is £1.933m, leaving a variance of £1.137m against the budget allocation of £3.070m. However it should be noted that there remains a commitment to utilise the variance during 2016/17.

Development of Streetscene Depot at 460 Beverley Road will create property and operational savings. Unexpected delays with the planning application process have pushed commencement into the next financial year. Project reprofiled budget of £550k. A project of building refurbishment and staff relocations, which will release direct accommodation savings and meet social work operational needs, is necessarily delivered in phases. Refurbishment at 82-84 Goulton Street will continue into Quarter 1 2016/17 and will then be followed with improvements at Brunswick House – arising in 2016/17. Project reprofiled budget of £480k. The transference of museums pieces to new storage sites at 460 Beverley Road and Pryme Street involves the recruitment of dedicated staff resource which will carry on into 2016/17, as will final payments for works costs. Project reprofiled budget of £100k.

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6

HRA – New Build

Approved Budget £’000


£’000

Variance

£’000

2015/16 13,172 7,258 5,914

The original provision of 131 units in the year across Orchard Park and Preston Road areas as part of a wider £43m three programme to deliver 414 new build properties, supported by £10.4m funding through the Homes and Communities Affordable Homes Programme 2015-18, has been affected by the strategic pause and the need to review the scheme make up and capital expenditure of the schemes to mitigate the impact of the summer budget announcements. The main contractor has been appointed to undertake the new build of 178 units at Orchard Park. The Contractor has secured planning consent for the scheme and is working with HCC to refine the costs of the development and any necessary changes needed to progress the scheme. It is likely that the scheme will commence later in the year but not achieve completed units and spend will need to be reprofiled to next year. Two further schemes (Portobello and Southcoates) are also being reviewed in partnership with the contractors to explore options to revise the proposed schemes taking into consideration the impact to HRA funding announced in the recent summer budget. As these are yet to secure planning consent a start on site in 2015/16 is not anticipated and therefore requires budget to be reprofiled to 2016/17. HRA – Planned Capital Works

Approved

Budget £’000


£’000

Variance

£’000

2015/16 23,206 22,307 899

Over 5,800 major elements of work are forecast to be undertaken in the year with savings identified through a review of the scope of the external renewal works programme which precedes painting works, a lower requirement for heating installations than originally budgeted as the contractor had capacity to undertake part of the current year planned programme late in the 2014-15 financial year, and a reduced requirement for rewires than originally anticipated following periodic inspection of the condition of property electrical circuits.

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7

HRA – Solid Wall Insulation

Approved Budget £’000


£’000

Variance

£’000

2015/16 6,293 2,705 3,588

The 2015-16 programme provides for works to be undertaken to 140 Preston Road Wingets and 200 Orchard Park No Fines properties with work to over 2,400 further properties planned over the next three years. The 2015-16 programme has been delayed as part of the strategic pause to take into consideration the impact to HRA funding announced in the recent summer budget. The programme has been given the go ahead to proceed and final terms are being agreed with the Council’s Green Deal and ECO partner with the expectation the contract will be signed in November with work commencing in the new year. The forecast reflects the likely reduced spend level in the year with further potential risks noted from inclement weather conditions over the remainder of the year.

8.3. Reprofiling adjustments, where required, are detailed in section 9 below, and have been included in the revised capital programme as shown at Appendix B.

8.4. As part of the on-going project management, programme managers have also

reviewed and updated expected milestones and outputs which will be delivered during 2015/16 in line with the budgets. These are detailed in Appendix A.

8.5. Summary project information provided by programme managers is shown at

Appendix C. This commentary provides an overview of the progress of capital schemes, linking into actual and forecast spend and progress against planned outputs and milestones.

9. Capital Programme Re-Profiling 9.1. The required re-profiling (significant areas as highlighted in section 8 above) is

summarised in the table below. This now reflects a more realistic profile for 2015/16 and future years.

Programme Current

Budget 2015/16

£’000

Revised Budget 2015/16

£’000

Current Budget 2016/17

£’000


£’000

Current Budget 2017/18

£’000


£’000

Buildings Optimisation Programme

3,070 1,933 0 1,137 0 0

HRA – Empty Property Projects

3,957 3,473 1,794 2,278 1,839 1,839

HRA – New Build 13,172 7,258 18,449 24,363 12,605 12,605

HRA – Solid Wall Installation

6,293 2,705 11,160 14,748 9,566 9,566

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8

9.2. The above proposed reprofiling is reflected in the revised capital programme as shown at Appendix B.

10. Revised Capital Programme 2015/16 to 2017/18 10.1. There have been some changes to the September 2015 approved Capital

Programme (Q1 monitoring report), which have now been incorporated into the programme as per Appendix B. The changes relate to additional grant or private contribution income received for certain capital schemes, and the progress and refinement of previously approved schemes. These are shown in the following table:

Programme Current

Budget 2015/16

£’000

Proposed Adjustment

2015/16 £’000


£’000

Ferens Art Gallery 1,455 500 1,955

Strategic Property Purchases 230 125 355

Total 625

• Ferens Art Gallery - £0.5m Arts Council Grant.

• Strategic Property Purchases – funding allocated to acquire the former Sharkeys Public House on George Street (Cabinet approval 28/9/15).

10.2. The overall impact of the above changes, and other changes representing updated

grant allocations are reflected in the following table, and have been incorporated into the revised capital programme as shown at Appendix B:

£m £m

Current Approved Programme (Cabinet 28/09/15) 362.396

Amendments to resources proposed:

- Ferens Art Gallery 0.500

- Strategic Property Purchases 0.125 0.625

Proposed Revised Programme 363.021

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9

10.3. The funding streams and implications of the above amendments are summarised in the table below:

11. Options and Risk Assessment 11.1. This report is to provide Members with an overview of the current progress of

delivery of the approved Capital Programme, and to approve variations to the Programme based on additional and revised funding streams.

12. Risk Assessment 12.1. Given spending of £31.5m has been achieved to the end of September 2015, a

significant acceleration in the rate of spending over the remaining months of the year is required if the forecast outturn of £113m is to be delivered.

13. Consultation 13.1. Consultation will be undertaken for specific programmes or individual schemes

where appropriate. 14. Comments of the Town Clerk (Monitoring Officer) 14.1. There are no direct legal implications arising from this report.

15. Comments of the S151 Officer 15.1. The City Treasurer (S151 Officer) is the author of the report.

Amendments to Resources £m £m

External Grant Funding:

- Ferens Art Gallery (Arts Council) 0.500 0.500

Spend to Save (Self Funded Schemes):

- Strategic Property Purchases 0.125 0.125

Total Increase in Capital Programme 0.625

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10

16. Comments of the HR City Manager and Compliance with the Equality Duty 16.1. The position is noted. Staff are impacted in terms of building refurbishment where

this is completed it can have a positive impact, where it is not the impact can be negative. The Council has a duty of care to provide staff with suitable and sufficient work spaces that are properly maintained. The allocation of the funding for these projects is therefore of importance to staff relations and welfare. In terms of equalities, each capital project has its own equality assessment.

17. Comments of the Overview and Scrutiny Commission 17.1. This report is due to be considered by the Finance and Value for Money Overview

and Scrutiny Commission on Friday, 20 November, 2015. Any comments or recommendations agreed by the Commission will be tabled at November Cabinet for consideration. (Ref. Sc4591)

18. Comments of the Portfolio Holder 18.1. Whilst the actual spend on Capital remains low at £31m, I am appeased that there

will be a significant back-loading of this spend in the financial year 2015/16. It is important with the economy still fragile that the Council does fully commit and spends its allocation in year as this helps fuel economic regeneration and spending power within the local economy as jobs and secondary spend result from the investments that we continue to make.

Brendan Arnold Director of Resources and City Treasurer (S151 Officer)

Contact Officer: David Bell/Mike Armstrong Telephone No. : 613084/ 613282 Officer Interests: None Background Documents:

• 2015/16 Budget Setting Reports Incorporating 2015/16 Capital Programme

• 2015/16 Capital Monitoring Reports

• 2014/15 Capital Outturn Report

Page 126 of 268

11

Implications Matrix


Yes


Yes


Yes


Yes


n/a


Yes


n/a


n/a


n/a


n/a


n/a


n/a

Page 127 of 268

Page 128 of 268

Capital Programme Monitoring 2015/16 - Quarter 2 APPENDIX A

Forecast Outturn and Actual Outputs/Milestones against Plan

P6

Revised Actual

Budget Changes Budget Spend Remaining Forecast Forecast Full Year Q2 Q2

2015/16 2015/16 2015/16 2015/16 Spend Outturn Variance Outputs Planned Actual

Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2015/16 Activity Outputs Comments

ACFS System Refresh Project 2,000 2,000 171 1,829 2,000 0 Capital investment required to

replace the current OLM CareFirst

System which is no longer fit for

purpose and does meet Council or

Regulatory requirements.

Until the tender specifications come back it is not known

at this time whether they are fit for purpose, therefore it

may be likely that funding will be reprofiled into 16/17 -

further updates to be provided as part of Quarter 3

monitoring process.

Buildings Optimisation Programme 3,070 3,070 648 2,422 1,933 1,137 Refurbishment projects at various

locations including Warehouse 9,

Dock Office Chambers, City

Treasury, Guildhall, Brunswick

House, 82-84 Goulton Street.

Termination of leases on

Warehouse 6, Haller Street store

and Goodwin Centre. Closure and

disposal of Kingston House and

Lindsey Place; Development of

depot and storage sites within

former B-Line site (460 Beverley

Road)

Closure of Kingston House,

Relocation of Warehouse 6 teams

to City Treasury, Development of

business cases for Qtr3 and Qtr4

projects

As per planned activity and further

performance outturn on separate

commentary

On track with planned activity. Termination of lease on

Warehouse 6 completed 10-08-15 and Kingston House

cleared of staff and all contents

City Hall Kitchen Refurbishment 175 175 0 175 160 15 Funding allocated to cover the cost

of refurbishing the kitchen

provision at the City Hall to

facilitate the generation of

increased revenue income for the

venue.

Start of works on site and

progression through to completion

of project

Project completed and final

account anticipated shortly. Total

spend projected as £160k

Corporate Buildings Energy

Efficiency (RE:fit)

751 751 26 725 751 0 RE:fit improvement works to five

buildings completed

The Investment Grade Proposals

for the five buildings completed

and agreed.

Investment Grade proposals

completed and reviewed by

Council. Ongoing minor detail

changes with contractor. On target

to agree final versions this

Quarter.

The project is on track to agree the Investment Grade

Proposals in November as programmed and agree the

contract. Works are programmed to commence in January

and will be complete by the end of March. As programmed

the development and agreement of the investment grade

proposals and monitoring process are key to the success

of the project. The delivery of the works was always

programmed towards the end of the financial year and the

project is on track to meet these deadlines.

Corporate Operational Buildings

Maintenance

973 973 506 467 1,400 -427 Making operational and

commercial buildings safe to

occupy and use by businesses,

Council staff and members of the

public.

Progression of projects on site

through to Practical completion

A revised programme of 22

projects now agreed. Four projects

have been completed with 14 on

site with final details being clarified

for the remainder

There are ongoing funding pressures re carrying out

essential repairs to ensure Council properties are safe to

occupy. This is an issue that has been the subject of

discussion by the City Manager with Corporate Directors

to ensure statutory compliance.

Education Centres - Reorganisation 310 310 68 242 310 0 Full Works will be completed by

November 2015

Contract to be let and works

started.

Works started completion 28th

October 2015.

Preferred contractor selected and about to be appointed.

PORTFOLIO HOLDER: BUSINESS SUPPORT & CHANGE

Financial Non-financial

Page 1

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P6

Revised Actual





ICT Infrastructure 1,600 1,600 416 1,184 1,400 200 Main area of investment left in this

area is the Upgrade/enhance

existing Backup Solution also know

as server virtualisation. This is

now progressing through VMB with

key deliverables complete in the

year 15/16. Delays on

commencing other projects in this

area due to resources being

diverted to other projects that have

come from Service areas, however

they will still be delivered at a later

date once the resource becomes

available. Oracle part of the

Server Virtualisation project to be

delivered after windows estate

complete, which will see that spend

in next financial year.

Planned for server virtualisation

project to pass through design

phase, ready for delivery of

hardware, and then progressing

into installation and configuration.

Oracle part of project to commence

with initial discussions in Q3, as

this part of the project is now

separate to the Windows estate,

but still forms part of the overall

delivery, finances and scope.

Server virtualisation project now

progressing, and hardware for Live

and DR site now into delivery and

installed. Further configuration

and setup work being undertaken,

ready to start migration of physical

servers, to virtual servers in Q3.

Billing for which is expect in Q3.

Initial design and configuration

discussions on the Oracle estate

scheduled for November 15.

Major projects now into delivery, with hardware installed

ready for migrations to progress in Q3.

ICT Infrastructure Refresh 1,600 1,600 1,101 499 1,200 400 YHPSN WAN and Telephone due

to complete this year as scheduled.

VDI project (Desktop refresh) is

also due to complete Q1 2016, with

the majority of spend due 15/16.

Although it is hoped work will

continued as scheduled, slippage

may occur depending on the

number of Service Area led

projects requiring ICT resource.

YHPSN WAN and telephone

project to continue with rollout, and

expedite areas of greater savings

to ensure savings profile is met.

Extra resource discussed with

supplier to support this activity.

VDI project planned to progress to

proof of concept/pilot phase to

feed into wider rollout.

YHPSN WAN and telephone

project progressing as planned,

with c2500 phone lines now

migrated. Plan shortened to

realise savings sooner than

planned to ensure they are met.

VDI project suffered 4 week delay

due to resource and deliver issue

around applications deployment. It

is aimed to bring it back on

schedule once rollout commences

by speeding up the rollout.

WAN and Telephone project on target, VDI project

progress delayed, however, hopeful of bringing back on

schedule via fast wider rollout.

Strategic Property Purchases 230 125 355 20 335 355 0 This property purchase fund was

created to enable the Council to

purchase strategic assets.

Purchase of Sharkey's Public

House on George Street planned

for October 2015.

10,709 125 10,834 2,956 7,878 9,509 1,325

HRA - Council House Adaptations 2,934 2,934 1,212 1,722 2,794 140 2,300 major and minor adaptations

to provide assistance to tenants in

council properties.

999 1,067 This project is a responsive service to deliver requests for

both major and minor adaptations. Based on the number

of referrals received and the average value of orders to

date, a small saving is now forecast against the approved

budget.

PORTFOLIO HOLDER: COUNCIL INFRASTRUCTURE (INC HOUSING & WASTE MANAGEMENT)

Page 2

Page 130 of 268



P6

Revised Actual





HRA - Empty Property Projects 3,957 3,957 1,296 2,661 3,473 484 Provision for acquisition and

refurbishment of 33 individual

properties being part of a three

year programme supported by

HCA grant to bring 75 properties

back into use as council housing.

Programme also includes for the

conversion of Enfield Court to

provide 19 additional in demand

one and two bedroom units to let.

3 4 Progress on the 3 year acquisition and refurbishment

programme has been delayed pending a strategic pause

review of programmes to assess the impact on the HRA

following announcements made in the Chancellor's

Summer budget. The programme has been given

approval to continue with a view to making up the shortfall

in delivery over the next two years. The conversion

programme at Enfield Court is progressing with options

being considered for a similar scheme at Cherry Hinton

Court which is now unlikely to start in the current financial

year. Slippage required to progress programmes into

2016-17.

HRA - Housing Regeneration

Schemes

4,490 4,490 292 4,198 4,154 336 Demolition of remaining Gorthorpe

block following the relocation of

communication masts sited on the

roof, demolition and relocation of

tenants within the Ings/Preston

Road renewal areas and garage

demolition including blocks at

Great Thornton Street.

99 114 Demolition and relocation progressing to plan, savings

delivered following negotiations to re-site the

communication masts at Gorthorpe to the former Henry

Cooper School site at no cost to the Council. Progression

on the demolition of garage blocks at Great Thornton

Street remains dependent upon Northern Power Grid

scheduling the relocation of an electrical sub station at the

site which may put delivery of the project at risk in the

current financial year.

HRA - New Build 13,172 13,172 1,753 11,419 7,258 5,914 100 new build properties to be

developed in the year - 44 at

Orchard Park and 56 at Preston

Road - as part of a wider three

year programme to deliver 414 new

build properties supported by

£10.4m funding through the Homes

and Communities Agency

Affordable Homes Programme

2015-18.

0 0 Ganstead Grove scheme of 67 units (36 planned 2015-16)

commenced on site 7th April and progressing to deliver in

the year. A contractor has been appointed to develop 178

units at Orchard Park (44 planned 2015-16). Planning

consent has been secured and it is likely that the scheme

will commence in the year but will substantially slip into

2016-17. Options are being explored in respect of two

further planned schemes at Portobello and Southcoates

taking into consideration the impact on HRA funding of

announcements in the Summer budget. Year end

slippage will be required to progress programmes into

2016-17.

HRA - Planned Capital Works 23,206 23,206 8,163 15,043 22,307 899 Over 5,800 major elements of work

including planned and responsive

kitchen, bathroom, heating system

replacement, rewires, roofing,

replacement doors. Additional low

cost minor outputs e.g. periodic

electrical inspection, smoke alarms

inspection and replacement along

with specialist and communal

works are also costed to this

budget.

2,473 3,107 A number of under spends have been identified in the

year to date, primarily through a review of the external

renewal programme which precedes painting work, a

lower requirement for heating installations than originally

budgeted for as a result of part of the current year

programme being under taken in late 2014-15 and fewer

rewires being required following periodic electrical

inspections. Actual outputs remain ahead of planned due

to a greater number of door and insulation installations

being identified part met through the above savings and

additional ECO grant allocation.

Page 3

Page 131 of 268



P6

Revised Actual





HRA - Solid Wall Insulation 6,293 6,293 1,695 4,598 2,705 3,588 Solid wall insulation programme to

350 properties in the year to

include structural works where

required. The budget provision

also allows for the residual

programme of 93 properties carried

over from the 2014-15 scheme

following previously reported

delays resulting from VFM

assessment ahead of the works

commencing in the autumn of

2014.

93 92 Spend to date all relates to the residual carry forward

programme from 2014-15 which is now complete.

Progress on the 2015-16 programme has been delayed as

part of the strategic pause to assess the implications on

HRA funding from announcements in the Summer budget.

It has been agreed that work can proceed with the

contract expected to be signed in November. Slippage

will be required to progress the 2015-16 planned works

into 2016-17.

Hull Neighbourhood Renewal

Programme - Ings

2,301 2,301 2,188 113 2,301 0 Continuation of the Ings Renewal

programmes acquisition and

demolition works to assemble the

site for re development.

Continued engagement with those

owners and residents affected by

acquisition process, working with

Together Housing to pre allocate

residents to homes on the

Petersham and Perivale close site

which will facilitate moves in Q3

and Q4 2015/16

Works have not quite progressed

as planned as the new build

properties are slightly behind

programme due to issues with

connecting the plots to mains

services. Meaning less people

than planned have been moved.

However works are now

progressing to ensure residents

move as per revised programme.


Programme - NaSA

1,717 1,717 308 1,409 1,717 0 Continuation and hopeful

completion of the acquisition

programme in the area to complete

the assemble of Hawthorn Avenue

East for redevelopment.

Demolition of the final buildings in

Phase 1 and continued

progression of negotiations with

property owners regarding

acquisition and relocation.

The phase 1 site is now clear of

buildings and a CPO is being

drafted to secure the ownership of

the final homes in the scheme.

Page 4

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Programme - Preston Road

354 354 502 -148 354 0 Continuation of the Preston Road

renewal programme, acquiring and

demolition private housing

alongside the HRA programme of

works to assemble land for future

redevelopment.

Engagement with those owners

and residents affected in the next

phases, working to pre allocate

residents to homes on the

Ganstead Grove site which will

facilitate moves in October 2015.

The new build scheme has

experienced some delays with

connection to mains drainage

which means that handovers have

been pushed back to January

2016 to avoid resident disruption

at the site whilst major works are

undertaken.

Staff costs of £142k to be

expended during 15/16. Additional

expenditure of £100k is projected

on legacy schemes from the last

programme on top of the accrued

values. For empty homes, the

forecast expenditure for the current

financial year is approximately

£450k.

The private sector frontage

schemes are gearing up for

delivery this year and therefore

there will be a small amount of

expenditure on design work to the

schemes proposed in the East of

the city.

Continued landlord engagement

under the Empty Homes

Programme completion of leases

and EDMO's. Completion of the

decision record to agree frontage

streets, appoint NPS Humber and

plan resident engagement events.

Landlord engagement continued

and a further 3 leases were

completed and 9 properties now in

the works programme . Decision

record on frontage streets to be

signed imminently and NPS to be

appointed mid October . Resident

engagement planned.

In the proposed schemes in the

West of the City there will be a full

quarter of delivery, the forecast

expenditure is therefore £600k

during the current financial year.

New Waste Collection Strategy 25 25 0 25 25 0 Completion of in cab technology

project for waste collection

Project pending internal IT

support.

Project pending internal IT

support.

Private Sector Housing 750 750 141 609 750 0 Assistance to 66 private

homeowners through grant or loan.

15 7 Budget on target to fully spend with no specific issues to

report. £500k budget reallocated from Housing to the

Priority Neighbourhoods Programme to support further

face lift schemes in East and West Hull.

Waste Collection 120 120 226 -106 350 -230 Bin provision for all households. Ongoing bin provision Ongoing bin provision Demand for new and replacement bins continues to be a

budget pressure.

60,641 0 60,641 17,300 43,341 49,510 11,131

Bus Lane Enforcement 130 130 50 80 140 -10 Cabinet approved in October 2015,

the establishment of a Bus Lane

Enforcement protocol through the

use of surveillance cameras. The

capital required is for initial set up

costs to include the camera

procurement, installation and IT

requirements.

Installation of cameras and

commence enforcement.

Installation completed and

enforcement commenced from mid

July.

Kingswood Link Road 442 442 584 -142 582 -140 Completion of the scheme and the

opening of the road.

None - scheme completed None - scheme completed The opening of the road was delayed considerably due to

poor ground conditions that could not have been

foreseen. Latterly the scheme experienced some delays

due to the unavailability of electricity jointing.

1,322 Budget increase as set out in the commentary to reflect

the Cabinet decision in March 2015.

1,798

PORTFOLIO HOLDER: ENERGY CITY

1,322-4761,322 0Hull Neighbourhood Renewal

Programme - Priority N'hoods

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LED Street Lighting Project 100 100 100 0 100 0 Scheme completed None - scheme completed None - scheme completed

LED Street Lighting Replacement

Project (Spend to Save)

811 811 107 704 811 0 Completion of the scheme Conversion of 841 lanterns to LED

and continue identifying time

expired columns on arterial roads

731 lanterns converted

Regeneration - Green Port 1,700 1,700 0 1,700 1,700 0 Green Port supported

Footpath diversion in place

A decision to release phase 1

funding is due with final profile of

drawdown payments to be agreed.

Early phase for Council contribution to infrastructure is

now identified and decision to release first phase funding

pending. Programme spend is driven by third parties.

Transport Projects 8,125 8,125 3,491 4,634 8,125 0 Completion of 23 carriageway

resurfacing, 15 surface dressing

schemes, micro asphalt schemes

and 28 footway recycling schemes

Completion of 25 carriageway

resurfacing schemes (including

surface dressing) and 11 footway

recycling schemes

23 carriageway resurfacing

schemes and 9 footway recycling

schemes were completed

Favourable weather conditions within the period have

enabled the planned works to be completed.

11,308 0 11,308 4,332 6,976 11,458 -150

Aspire Academy 95 95 1 94 95 0 External grant funding of £3.2m

has been secured to build a new

school within the East Hull Area.

Project complete Project complete Defects liability period ends Mar 16. Final Account April

16.

Devolved Formula Capital 774 774 278 496 774 0

Early Education for 2 Yr Olds 375 375 41 334 375 0 To create additional places for 2

year olds in areas where there are

insufficient places

Tillymints Holderness Road under

construction. Support Highlands

Primary extension and proposed

purchase of John Havelot House

by Westside.

Tillymints Holderness Road

opened on 1st September.

Continue to monitor uptake and assess area of need

based on the Childcare sufficiency audit information.

Work with relevant Day Care Providers to extend their

existing provision to accommodate additional places and

create new where new provision is required.

Investment in Schools (BSF/PCP) 2,763 2,763 732 2,031 2,763 0 Completing final accounts for all

schools.

Completing final accounts for all

schools. Starting ICT refresh

process.

Completing final accounts for all

schools. Starting ICT refresh

process.

Schools Maintenance and

Improvement Programme

10,290 10,290 1,498 8,792 10,290 0 The target is for the completion of

all thirty six schemes in the

Schools Capital Programme

2015/16.

For a significant number of

projects to be progressed to

completion, with the majority taking

advantage of the school summer

holidays.

Seventeen projects were

completed in Quarter 2, Contracts

have been awarded on another

seven with works already on site or

imminent. Four schemes are

currently at design stage and one

project is at feasibility stage. NPS

are negotiating/agreeing final

accounts with contractors and

spend will increase accordingly.

The Schools Capital Programme 2015/16 addresses the

most urgent condition, suitability and sufficiency needs

within the primary school estate. Schemes include

remodelling schemes to address basic need for primary

places, heating system upgrades, replacement roof and

window schemes etc.

14,297 0 14,297 2,550 11,747 14,297 0

PORTFOLIO HOLDER: LEARNING, SKILLS & SAFEGUARDING CHILDREN

PORTFOLIO HOLDER: NEIGHBOURHOOD & COMMUNITIES

Devolved Formula Capital grant can be used by the school for any capital purpose relating to schools buildings and assets, including ICT equipment. Any unspent

grant funding arising from 2014/15 has been carried forward into 2015/16, in line with the terms and conditions of the grant. The grant is fully devolved out to individual

schools, and is therefore controlled and monitored at an individual school level.

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Gypsy & Traveller Sites 90 90 -18 108 90 0 Following a successful Traveller

Pitch funding bid from the Homes &

Communities Agency a programme

of refurbishment works is

programmed for the four

permanent traveller sites in the

city.

Refurbishment project complete -

retention due to be claimed Sept

2015. Additional works being

planned

No progress on additional works at

this stage

Project completed apart from retention figure - due to be

claimed September 2015

Local Community Initiatives 2,484 2,484 343 2,141 2,484 0 £1.3m committed to date It is anticipated that all funding will have been committed

by the end of the financial year.

2,574 0 2,574 325 2,249 2,574 0

City Cycle Track 670 670 0 670 620 50 It has not proven possible to

progress a regional standard

development at the Costello site -

alternative sites are now being

considered in partnership with

British Cycling.

Secure resource for detailed

design stage. Complete design

plans. Prepare tender

documentation. Prepare planning

application. Submit first part of

Sport England Improvement Fund

external funding application.

British Cycling have agreed to release £25k to be

matched by a Council contribution of £25k in 2015/16 to

fund the design, planning approval and tender stages.

The remainder of the project spend will fall within financial

year 2016/17.

Leisure Facilities Maintenance

Programme

400 400 49 351 400 0 Capital investment required to the

Council’s Leisure Facilities and to

address the backlog maintenance

programme. The total funding

envelope is £3.5m and it is

anticipated that part of the

allocation will occur beyond the

2017/18 timeframe.

Agree specification of projects and

seek competitive quotes.

Currently reviewing scope of

schemes to be carried out which

will then be competitively procured.

Awaiting feasibility reports from

NPS and external consultants.

Library Books 558 558 207 351 558 0 £ 558 £ 350 £ 207 Budget spend is below profiled spend due to a change in

supplier. This is beginning to come in line with profiled

spend but there remains some technical issues to resolve

that will speed up the process.

1,628 0 1,628 256 1,372 1,578 50

Adults Services 564 564 155 409 564 0 Aim to complete carry forward

works approved in previous

financial year within qtr 1/2. Aim to

achieve refurbishments & minor

works and projects to improve

Customer wellbeing, safety and

experience across Social Care

premises by 31st March 2016.

Carry forward projects target set

for completion by end of

August/September 2015.

Additional refurbishment and

projects across Adult Social Care

properties planned to be

completed by March 2016.

Carry forward refurbishment

projects on target. Invoices to the

value of £140k have so far been

paid. 3 new projects has been

approved to be completed by

target date end of December 2015,

January 2015 & March 2016.

Adults Services Capital Board to oversee and decide on

future projects submitted to them based on meeting the

following criteria;

Works or Equipment that improve the

Customers/Residents Care/Quality of Life.

Works to meet current or impending Health & Safety

requirements.

Works or Equipment to reduce the pressures on the

Revenue and/or Repairs & Maintenance Budgets

Disabled Facilities Grant 1,326 1,326 631 695 1,326 0 200 adaptation grants to private

sector occupiers.

81 103 This budget will be fully spent. The budget allocation has

been significantly reduced this year which is resulting in

referrals for assistance facing a long wait for an

adaptation survey. Whilst additional £326k funding has

been allocated over the last quarter, the waiting time for a

survey is currently 49 weeks.

PORTFOLIO HOLDER: PUBLIC HEALTH (INC CULTURE, SPORTS, YOUTH & LIBRARY SERVICES)

PORTFOLIO HOLDER: PUBLIC HEALTH, PREVENTION & SAFEGUARDING ADULTS

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Homelessness Hostels 67 67 85 -18 67 0 Commissioning of two new

specialist schemes to support

homeless households and to

complement existing provision

Project complete Project complete Centre for Assessment and Emergency Accommodation

(CAEA) operational. Emmaus project work has

completed.

Hull Capital Bid - Transforming

Care

160 160 0 160 152 8 Transforming Care Grant - capital

funding for adaptations to housing

to support transfer of people from

inpatient to community based

settings.

The aim is to complete the works

project before January 2016 to

ensure that the flats are available

and in use from February 2016.

2,117 0 2,117 871 1,246 2,109 8

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Greening the City 297 297 0 297 297 0 Commitment of full budget to

projects across the city centre or

on major thoroughfares into the

city. The projects will improve the

appearance of derelict buildings.

Demolition works to commence Owner has agreed to undertake

the work themselves and has

cleared access to the rear of the

New York Hotel and erected

scaffolding. The Council have

been in regular discussion with the

owner, demolition contractors and

specialist Asbestos removal firms.

The major item of expenditure agreed is the demolition of

the New York Hotel, however given the response from the

owner who is now looking to demolish himself which

would save the council £234k, expenditure has been

paused.

Regeneration - Other Schemes 2,264 2,264 535 1,729 2,264 0 £1.6m of remaining funding held in ringfence for Fruit

Market which has multiple funding streams from empty

home II, HRA and Coastal Communities.

2,561 0 2,561 535 2,026 2,561 0

City Centre Public Realm 5,962 5,962 597 5,365 5,962 0 Following a pre qualification

exercise in June, six companies

were invited to bid for the role of

Principal Contractor, tender

documents will be evaluated in

August and a preferred bidder

appointed in early September.

Negotiations to appoint a Lead

Developer Partner for the Fruit

Market are in the final stages. The

overarching Development

Agreement is scheduled for

completion by the end of

September 2015.

Contract was awarded to Eurovia.

Works start on site date to be

agreed.

A city centre public realm capital investment programme

to ensure that key visitor destination elements of the

Council’s City Plan are met which will play an important

role in our preparation for hosting the title of ‘UK City of

Culture 2017’.

New Theatre Retrofit 2,704 2,704 310 2,394 2,704 0 The progress in line with the high

level project plan, however, the

spending profile for this scheme

has been adjusted to take account

of the main works taking place

after the Pantomime season has

ended in Jan 16.

The expenditure to date is related

to the cost of producing the

feasibility documentation drawings

which were included in the

planning submission to be heard at

the Planning Committee on 7th

October 2015. The progress is

in line with the high level project

plan with the commencement of

works taking place after the

Pantomime season has ended

in January 2016.

The investment in the New Theatre is planned to resolve

issues currently experienced by visiting artistes regarding

access and space in the current facility. The expansion

would allow adjacent parking to unload equipment. Once

updated, it will be capable of staging bigger, more

ambitious shows to cement its reputation as one of the

best touring theatres in the UK.

PORTFOLIO HOLDER: VISITOR DESTINATION

PORTFOLIO HOLDER: HULL WORLD CLASS VISITOR DESTINATION PROGRAMME

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Ferens Art Gallery 1,455 500 1,955 151 1,804 1,955 0 The progress in line with the high

level project plan, however, the

spending profile for this scheme

has been adjusted to recognize the

additional external funding the

scheme has attracted and when

the external funders would like this

to be claimed by. NB £1m from

central govt. and £0.5m from Arts

Council – to be claimed and spent

by March 16.

The expenditure to date is related

to the cost of producing the



planning submission to be heard at

the Planning Committee on 7th

October 2015. The spending

profile reflects the additional

external funding this scheme

has attracted and the draw-

down on the £500k Arts Council

grant has commenced for full

claim by March 2016.

The Ferens must play a central role in the City of Culture

programme by bringing in the very best exhibitions and

collection loans available to Hull. In order to deliver these

ambitions the Ferens has to comply with a number of

professional museum standards in respect of temperature,

humidity, lighting and security of the facility and

security/robustness of the display equipment. If the

Ferens is unable to meet the standards required by

lenders and the Government Indemnity Scheme it will be

unable to secure loan material from national institutions

such as the Tate, Royal Collection, National Gallery, the

Courtauld or from private collectors.

Pearson Park Heritage Investment 255 255 1 254 255 0 The development phase design

fees of £93.4k will be funded by

monies awarded from the HLF first

round pass. The RIBA stage 3

plans will be submitted to the HLF

on 29 February 2016 with a

decision on the outcome of the

Second Round bid expected by

late summer 2016.

The Council confirmed the

decision to appoint the contractor

on 1 July 2015 at the fixed price of

£196,400. The services to be

provided comprise a development

phase (RIBA stages 1-3 at £93.4k),

funded by HLF and a delivery

phase (RIBA stages 4-7 at £103k).

A break clause will be enacted at

the end of RIBA stage 3 to allow

for the evaluation of the second

round bid by the HLF and the

confirmation of funding for the

delivery of the project.

The Council has submitted a Round 1 Bid to the HLF for

Parks for People funding to repair and rejuvenate Pearson

Park, Hull’s first ‘People’s Park’. Wyke Area Committee

and the Pearson Park Trust were instrumental in

developing the initial bid.

Beverley Road Heritage Investment 98 98 22 76 98 0 The stage 2 bid for the Beverley

Road Townscape Heritage

Scheme was successful and in

June 2015 the Heritage Lottery

Fund confirmed a grant of

£1.597million towards the delivery

of the scheme over the next 5

years. The scheme is due to be

formally launched at the end of

September. The scheme will offer

grants to property owners to fund

conservation repairs to historic

properties, as well as funding a

series of public realm and historic

boundary improvements.

Formal permission to start has now

been granted by the Heritage

Lottery Fund and work is

continuing on the contract

paperwork and other

documentation in advance of a

formal project launch in late

October.

A successful bid will bring in HLF funding for conservation

works to historic buildings and the historic townscape

along Beverley Road. The scheme would offer

conservation deficit grants to property owners as well as

funding frontage and boundary improvements, and

training, learning and engagement activities.

Repurposing the Old Town - Market

Refurbishment

250 250 13 237 250 0 This scheme was at the pre-

contract stage during this reporting

period. The expenditure to date is

related to the cost of producing the

feasibility documentation and

drawings suitable for inclusion in

the planning application.

Work is on-going to get to

appointment of a contractor for the

scheme. Dialogue is taking place

with potential partners. Preliminary

engagement has begun with

traders offering reassurance about

the forthcoming disruption. Formal

consultation is planned for

November 2015.

Direct intervention to draw investment, bring retail and

office space back into use and attract businesses, visitors

and residents into Hull's historic Old Town. Investment

will be centred on revitalisation of Trinity Indoor Market

and the surrounding public spaces, whilst making the

most of the Old Town's rich history and architecture.

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UTC 900 900 0 900 900 0 Work is underway in collaboration

with the EFA, Ron Dearing Trust

and Esteem to develop a feasibility

study and design with the aim of

submitting a planning application

in December 15.

Authority was given to enter into a grant funding

agreement with the Education Funding Agency for the

provision of funds to facilitate the construction of the

University Technical College on part of the former Fire

Station site. £900k to be transferred from the Council's

Capital Programme contingency allocation in order to fund

the additional costs of demolition associated with the UTC

development.

Woodford Pool Extension 1,929 1,929 305 1,624 1,929 0 This scheme had been submitted

to the Planning Pre App meeting in

June. The expenditure to date is

related to the cost of producing the



planning submission which is to be

heard at the Planning Committee

on 4th

November 2015. The

progress is in line with the high

level project plan.

Development of Woodford Leisure Centre to include a

new 25m six-lane swimming pool.

West Park 1,200 1,200 55 1,145 1,200 0 A programme of investment is planned for West Park to

improve the existing furniture and facilities within the park,

funded from S106 contributions. This will build upon work

previously undertaken in 2010 when a new entrance to

the park was delivered which also included new footpaths

and lighting leading to the stadium

Feasibility & Development Work 730 730 120 610 730 0 Capital expenditure of up to £1.6m was approved to

undertake feasibility and development work for projects

within the Phase 2 2017 Legacy Programme.

Investment in Museums 100 100 0 100 100 0 The BMMMC Collection has been

inspected for the purposes of a

condition survey and to provide a

valuation.

As a result of their success in being nominated as City of

Culture for 2017 HCC is considering the development of a

branch of the National Museum of the Royal Navy

(NMRN) in the City, to sit alongside its excellent museums

which include a Maritime Museum.

Hotel, Music & Events Centre 2,993 2,993 770 2,223 2,993 0 The initial site assessments and

feasibility work has been identified

in RIBA Stage 1 and a report went

to Cabinet 29th

June 2015 with

subsequent approval. OJEU

procurement for an operator

commenced July ’15, PQQ

returns and short listing due for

October ’15, Stage 1 ITPD to be

completed December ’15 and

Stage 2 ITCD and appointment

completed in April ‘16.

The venue will be a flexible space which is capable of

hosting exhibitions and performances including music,

shows, sporting and other events. The venue will be

designed to host small and medium events, with a

minimum capacity of 3,000 people. The venue will be

constructed in time to benefit from the opportunity

provided by the City of Culture event in 2017 and the

legacy of this event.

18,576 500 19,076 2,344 16,732 19,076 0

PROGRAMME TOTAL 124,411 625 125,036 31,469 93,567 112,672 12,364

Page 11

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Page 140 of 268

Capital Programme 2015/16 - 2017/18 Appendix B

Total

2015/16

Budget Budget Budget to

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

Programme £'000 £'000 £'000 £'000 £'000

RINGFENCED SCHEMES

Business Support & Change

Buildings Optimisation Programme 1,933 1,137 0 3,070

City Hall Kitchen Refurbishment 175 0 0 175

Corporate Buildings Energy Efficiency (RE-fit) 751 426 0 1,177

Education Centres - Reorganisation 310 0 0 310

ICT Infrastructure Refresh 1,600 2,542 0 4,142

Council Infrastructure (inc. Housing & Waste)

HRA:

Council House Adaptations 2,934 2,750 2,750 8,434

Empty Property Projects 3,473 2,278 1,839 7,590

Housing Regeneration Schemes 4,490 2,787 1,637 8,914

New Build 7,258 24,363 12,605 44,226

Planned Capital Works 23,206 20,479 20,390 64,075

Solid Wall Insulation 2,705 14,748 9,566 27,019

Hull Neighbourhood Renewal Programme:

Ings Programme 2,301 0 0 2,301

Newington & St Andrews Programme 1,717 0 0 1,717

Preston Road 354 0 0 354

Priority Neighbourhoods Programme 1,322 8,430 1,075 10,827

Waste Collection 120 120 120 360

Energy City

Bus Lane Enforcement 130 0 0 130

Kingswood Link Road 442 0 0 442

LED Street Lighting Replacement Programme 811 0 0 811


Aspire Academy 95 0 0 95

Devolved Formula Capital 774 350 350 1,474

Investment in Schools (PCP/BSF) 2,763 4,091 0 6,854

Public Health (Inc. Culture, Sports, Youth & Libraries)

City Cycle Track 670 0 0 670

Library Books 558 600 600 1,758

Visitor Destination

Regeneration - Other regeneration schemes 2,264 0 0 2,264

63,156 85,101 50,932 0 199,189

Page 1

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Capital Programme 2015/16 - 2017/18 Appendix B

Total

2015/16

Budget Budget Budget to

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

Programme £'000 £'000 £'000 £'000 £'000

UNRINGFENCED SCHEMES

Business Support & Change

Corporate Operational Buildings Maintenance 973 750 750 2,473

ICT Infrastructure 1,600 407 0 2,007

ACFS System Refresh Project 2,000 0 0 2,000

Strategic Property Purchase 355 0 0 355

Council Infrastructure (inc. Housing & Waste)

New Waste Collection Strategy 25 0 0 25

Private Sector Housing 750 375 375 1,500

Energy City

LED Street Lighting Project 100 0 0 100

Regeneration - Green Port Hull 1,700 1,400 0 1,900 5,000

Transport Projects 8,125 4,294 4,231 16,650


Early Education for 2 yr olds 375 0 0 375

Schools Maintenance and Improvement Programme 10,290 12,647 8,000 30,937

Neighbourhood & Communities

Gypsy and Traveller Sites 90 0 0 90

Local Community Initiatives 2,484 1,000 1,000 4,484

Public Health (Inc. Culture, Sports, Youth & Libraries)

Homelessness Hostels 67 0 0 67

Leisure Facilities Maintenance Programme 400 1,000 2,100 3,500

Public Health, Prevention & Safeguarding Adults

Adults Services 564 1,259 700 2,523

Disabled Facilities Grant 1,326 1,000 1,000 3,326

Hull Capital Bid - Transforming Care 160 0 0 160

Visitor Destination

Greening the City 297 0 0 297

Corporate Contingency 0 0 662 662

Sub Total 31,681 24,132 18,818 1,900 76,531

Hull World Class Visitor Destination Programme

2017 Priority Programme:

City Centre Public Realm 5,962 10,523 1,700 18,185

New Theatre Retrofit 2,704 4,000 0 6,704

Ferens Art Gallery 1,955 1,459 0 3,414

Pearson Park Heritage Investment 255 0 0 255

Beverley Road Heritage Investment 98 408 0 506

Repurposing the Old Town - Market Refurbishment 250 0 0 250

UTC 900 0 0 900

Woodford Pool Extension 1,929 1,069 0 2,998

West Park 1,200 0 0 1,200

2017 Legacy Programme:

Feasibility & Development Work 730 870 0 1,600

Investment in Museums 100 3,000 1,700 5,000 9,800

Hotel, Music & Events Centre 2,993 16,296 11,050 1,950 32,289

Riverside Berth/Cruise Terminal 0 1,600 6,600 1,000 9,200

Sub Total 19,076 39,225 21,050 7,950 87,301

50,757 63,357 39,868 9,850 163,832

PROGRAMME TOTAL 113,913 148,458 90,800 9,850 363,021

Note 1 Shaded Number indicate schemes linked to as yet unconfirmed grant awards.

Note 2 Programme excludes PFI funded element of BSF project as costs will be met from future revenue streams.

Page 2

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1

Appendix C Supporting Commentary provided by Programme Managers/Project Officers, based on progress against current capital programme (both financially (budget monitoring) and non-financially (achievement of milestones/outputs)). Ring Fenced Schemes Buildings Optimisation Programme (BOP) - £3.070m

The anticipated 2015/16 outturn expenditure is £1,933m (as per Table below), leaving a variance of £1,137m against the budget allocation of £3,070m. However it should be noted that there remains a commitment to utilise the variance during 2016/17

Development of Streetscene Depot at 460 Beverley Road, will create property and operational savings. Unexpected delays with the Planning application process have pushed commencement into the next financial year. Project reprofiled budget of £550k

A project of building refurbishment and staff relocations, which will release direct accommodation savings and meet social work operational needs, is necessarily delivered in phases. Refurbishment at 82-84 Goulton Street will continue into Quarter 1 2016/17 and will then be followed with improvements at Brunswick House arising in 2016/17. Project reprofiled budget of £480k

The transference of museums pieces to new storage sites at 460 Beverley Road and Pryme Street involves the recruitment of dedicated staff resource which will carry on into 2016/17, as will final payments for works costs. Project reprofiled budget of £100k

Budget

Property Expenditure at

Month 6

Expenditure committed / remaining in

2015/16

Notes

Kingston House £5k £20k Removals and disposal costs connected with building clearance

33 Witham 33k NIL Historical settlement from 2014/15

City Treasury £41.5k £122K Refurbishment work to accommodate Hull & Humber Shared services; pending final invoice

Guildhall £71.5k £240k Refurbishment within Floors 2 & 3. Works remain to convert basement to storage use

Warehouse 6 NIL £8k Dilapidations costs TBC

84-86 Paragon Street £27.3k NIL Dilapidations settlement

Myton Centre £12k NIL Refurbishment works to provide customer facility for Occupational Health

Kenworthy House NIL £14k Retention settlement from September 2014 refurbishment

Museums Project 3 Wright Street (Old Kwik Save) / 460 Beverley Road

£22k £538

Development of both sites ahead of projects to provide capacity for museums store

Page 143 of 268

2

Streetscene Project 460 Beverley Road

NIL £10k Fees relating to initiation of depot rationalisation project

Lister Court £4k NIL Final costs for development of new archive storage site

Freedom Centre NIL £20k Outstanding settlement for refurbishment works

Warehouse 9 £315.5k £46K Final costs of building refurbishment (not including delayed retention costs)

84-86 Goodhart Road £41k NIL Development of office space for Hull Initiative team

Dock Office Chambers £4k NIL Refurbishment for property leased to Hull Culture & Leisure

Brunswick House £17.5k NIL

Feasibility for development of office space to meet needs of Service almost complete with first refurbishment costs arising 2016/17

82-84 Goulton Street NIL £100k

Re-commissioning this building will provide office space for c100 staff, with further £155k costs overlapping into 2016/17

Smaller projects / unforeseen demand

NIL £50k

Staff costs £58k £82k Project Manager / Project Assistant

NPS fees £22k £22k

Smaller project costs and rounding’s adjustments

-£1.8K -£1k

£662K £1,271k

Reduction to Available Office Space

The baseline Net Internal Area (NIA) of office accommodation has fallen from 111,460M2 at April 20111 to 61,984 at 30 September 2015, This is a reduction of 49,476M2 or 44.39%; a reduction of 11,827M2 / 9.64% has been achieved since April 2015 alone, enabled in large part to the closure of Kingston House

Some vacant buildings are under consideration for re-occupancy2 as Service needs and market conditions (property) become clearer.

Progress against Lease Terminations

Building Rationalisation Programme3 (2009)

In August 2015, Warehouse 6 became the eight of nine lease terminations identified by the BRP4, yielding a cumulative £725k

1 Improved data about the portfolio of KUHCC office accommodation has led to successive increases to the “April

2011 baseline”. Since April 2011 the baseline has increased by 28,328M2

2 The former Hull Business Academy at Goulton Street has been identified for probable occupancy by social work

teams 3 The pre-curser to the Building Optimisation Programme

4 Only Pod 1, Octagon remains with a termination date of 2020/21 and a rental saving of £39k

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All Property & Assets Rationalisation Programmes5

Since April 2010 there has been a £1.531m reduction to overall building costs6 with cumulative savings from all building closures calculated at £9.8m

OUTTURN

Financial Year

Revenue Saving Actual

£

Repayment Years

Remaining

Multiply remaining

years £

Cumulative total

£

2009/10 - 10 -

2010/11 272,227

9

2,450,043

2,450,043

2011/12 302,332

8

2,418,652

4,868,695

2012/13 224,328

7

1,570,296

6,438,991

2013/14 174,702

6

1,048,212

7,487,203

2014/15 87,625

5

438,125

7,925,328

2015/16 470,278

7

4

1,881,112

9,806,440

2016/17 3 -

9,806,440

2017/18 2 -

9,806,440

2018/19 1 -

9,806,440

Total 1,531,492

City Occupancy Rates

The occupancy rate of core buildings8 was 91.06% in 2010/11. After a steady decline to 85% at the close of 2014/15, the rate has risen back up to 93% at Quarter 2 this year.

There has been an overall reduction of 1,9819 (32%) staff over the same period, many of whom left the buildings under review

A net increase of 246 desks (12.61%) to the basket of indicators since April 2015 has followed refurbishment schemes at warehouse 9, City Treasury and Guildhall

5 Building Rationalisation Programme (2009-2011) and Building Optimisation Programme (2011-Present)

6 Rents, service charges, utilities, cleaning, insurance etc

7 This includes the termination of the lease on Warehouse6 and closedown of Kingston House.

8 Brunswick House; Festival House; Kenworthy House; Guildhall; City Treasury; The Wilson Centre; 33 Witham;

Warehouse 9. Kingston House was removed from the basket of indicators at the start of 2014/15 of confirmation of

intention to dispose of the building 9 Comparison with the reduction to the portfolio of office accommodation is difficult to draw because of the scarcity

of data outlining which staff left which location; the proportion of non office based staff is also unknown

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Building density has improved over the past 6 months with the average net internal area of buildings occupied by staff reducing from 12.94M2 to 11.01M2 / occupying staff

Development of Office Space

At the close of 2014/15, 22.67% of office accommodation10 had been refurbished or developed to meet the core objectives of the councils adopted Accommodation Standard11. Since April this indicator has risen by 7.68% to 30.32%.

Although the disposal of developed office space at Kingston House as part of the building closedown has a negative impact on the indicator this is outweighed by the large overall reduction to the total (CH20) office space.

Treasury Building

Some light refurbishment completed July 2015 and the number of workstations is now at a maximum without further development and increase to welfare facilities and review of power / data supply

The majority of building users, particularly Revenues & Benefits and the council’s central service desks are desk based.

Revenues and Benefits are working with Property & Assets to develop lease arrangements as part of the establishment of partnership arrangements with Civica.

10

Annual adjustments have been made to reflect the reduction to the overall office space held. Disposal of

undeveloped workspace and retention of offices where the Accommodation Standard has been applied drives up the

percentage of developed workspace. Conversely disposal of developed workspace has a negative impact 11

The Accommodation Standard provides a template for development of office accommodation with the following

core objectives; standard design and colour schemes for refurbishment; standard provision of building facilities

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Guildhall

Almost all of the third floor and large parts of the second floor were refurbished during the first half of 2015. An option to refurbish the remaining office spaces across Floors 2 & 3 is under review.

A parallel review by NPS will put forward proposals for welfare facilities within the building, building access and security, parking and cycle store spaces, public realm of the Guildhall village.

Brunswick House / ITEC Goulton Street / Goodwin Centre

Property & Assets have progressed for approval the rationalisation and improvement of office space for a social work teams in several buildings. The business case objectives are:

• Converting the old training centre at ITEC, Goulton Street into office space providing 100-120 workstations

• Increasing capacity and customer contact facilities at Brunswick House

• Terminating lease asap on Goodwin Centre (c60 staff) and relocating to Brunswick and ITEC

• Disposing of a social work office at Arcon Drive (c45 staff) and relocating to Brunswick and ITEC

Warehouse 9 (formerly Hull Business Centre)

Full refurbishment of a former warehouse into office space for 170 workstations was completed in June 2015 and is now wholly occupied by Housing teams.

Dock Office Chambers

The building was refurbished using surplus furniture in March 2015. A concessionary lease arrangement commenced on the arrival of Hull Culture & Leisure Service after refurbishment and will be in place until 2020. The building is no longer available to the general pool of office space under the ALMO arrangements.

Warehouse 6

The lease on this property was terminated in August 2015, following transfer of all staff to refurbished space within City Treasury.

Kingston House

Following the departure in June of the final staff grouping (Planning) to Guildhall, the building was cleared and decommissioned. Property & Assets are now working with NPS to market and dispose of the property by sale.

Avenues Centre

Adult Education staff left this building for developed space within the Endeavour building. Site clearance is now underway whilst disposal options are under review.

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City Hall Kitchen Refurbishment - £0.175m Funding allocated to cover the cost of refurbishing the kitchen provision at the City Hall to facilitate the generation of increased revenue income for the venue. The total budget for the project 2015/16 year is £175k. The project has been progressed to completion. The final account is in the process of being received from NPS Humber were total expenditure is anticipated to be £160k. Corporate Buildings Energy Efficiency (RE-fit) - £0.751m The initial project start meeting has been helped with MITIE and the key stakeholders from the buildings in Tranche1 of the programme (Guildhall, City Hall, Streetlife Museum, Central Library and Stockholm Road Depot). Project meetings are held on a regular basis with all parties to inform the development of the project and ensure that the building stakeholders have clear understanding of the works entailed. The project is on track to agree the Investment Grade Proposals in November as programmed and agree the contract. Works are programmed to commence in January and will be complete by the end of March. As programmed the development and agreement of the investment grade proposals and monitoring process are key to the success of the project. The delivery of the works was always programmed towards the end of the financial year and the project is on track to meet these deadlines. Education Centres Reorganisation - £0.310m The programme involved the relocation from a number of current locations of training services provided by Hull Training and Adult Education and The City Council Training Service to the Endeavour School site. Phase 1 of the programme took place in the summer of 2014 and a number of the relocated services are in situ now, however the School also remains in the building and will not fully vacate until July 2015. At this stage the phase 2 work will commence with an anticipated completion date of October 2015. The majority of the cost of work in phase 2 will be to address issues around the heating system, water system and structural adjustments to allow the relocation of the construction centre. Once completed the Avenues Adult Education Centre, Construction Centre and Partnership Learning Centre will be declared surplus. A main contractor has been appointed and started an 8 week programme of works on 2nd September 2015.

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ICT Infrastructure Refresh - £1.600m Networks and platforms projects As both project areas progress well with activity throughout the core projects; YHPSN - WAN (Yorkshire and Humber Procurement Services Network – Wide Area Network) and Telephone, VDI (Virtual Desktop Infrastructure) Desktop Refresh and Server virtualisations. Each project at different stages, with YNPSN WAN and Telephone well into delivery with c2500 handsets rolled out and 75% of the new WAN circuits now migrated and on target to complete as profiled. VDI Desktop refresh project is due to progress into a pilot phase covering 50 users (25 from Streetscene and 25 from Legal) so the solution can be configured and tailored further based on actual user feedback. This phase is scheduled to run for 4 to 6 weeks, with wider organisational rollout to start after this phase is complete. Planning on the wider rollout to take shape during pilot phase, with full communication planned. HRA – Council House Adaptations - £2.934m Forecast Outturn – £2.794m Variance – £0.140m Saving This budget provides for a responsive service to deliver requests for major and minor adaptations to assist tenants in council properties. It is estimated the budget will provide for 1,000 major and 1,300 adaptations to be undertaken. At this time the average value of orders for typical building works and stair lifts has reduced from last year. This may be due to a change in the profile of adaptation types and the final out turn will be dependent on what is referred in the remaining six months. Based on the number of referrals received and the average values of orders placed, a saving of £140k is predicted. If there is an increase in the average cost of work this can be managed by increasing the wait time for a survey slightly. HRA - Empty Property Projects Budget - £3.957m Forecast Outturn – £3.473m Variance – £0.484m Slippage This scheme provides for the acquisition and refurbishment of 33 individual properties in the year being part of a three year programme to bring 75 properties back into use as council housing supported by HCA Affordable Homes 2015-18 grant funding of £1.7m. Nine properties have been acquired to date and refurbishment works are progressing and scheduled to complete in the financial year. Current projections indicate a further 13 properties will be acquired in the year although it is anticipated at this stage that the majority of the refurbishment works will be undertaken in the next financial year. The programme has been delayed due to the strategic pause following the Chancellors July budget announcements. Following review, it has been agreed that the programme can continue and any shortfall in delivery will be made up in the next 2 financial years.

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The programme also includes for the conversion of Enfield Court in the year to provide 19 additional in demand one and two bedroom units to let. The scheme commenced on site in August with an agreed increased scope of works resulting in additional cost and is partially supported by HCA grant funding of £104k. Provision is included within the budget for the commencement of a similar development at Cherry Hinton Court which has been paused at the design stage as part of the overall assessment of the likely impacts on HRA funding announced in the July budget. Options are under consideration for the scheme which is now unlikely to proceed in the current financial year. Taking these factors into account, the programme is expected to under spend in the region of £484k in the year. HRA - Regeneration Schemes Budget - £4.490m Forecast Outturn – £4.154m Variance – £0.336m Saving This budget provides for the demolition of the remaining high rise block at Orchard Park (Gorthorpe), relocation of communication masts sited on the roof of the block and the HRA contribution towards the relocation of tenants and demolition of properties within the Ings/Preston Road renewal areas. Works are currently progressing to plan and following negotiation, agreement was reached with the service provider to re-site the communication masts from Gorthorpe to the former Henry Cooper school site at no cost to the council which has resulted in a significant saving on the programme. There is a residual risk which is being mitigated by legal services, this is that the telecoms companies do not relocate in order to allow the commencement of the contract for demolition works. This is being reviewed and pressed on a daily basis to ensure that the impact is minimised. Other provisions are included for one off and garage demolition, in particular the garage blocks at Great Thornton Street flats. This scheme has been planned into the programme over the past two years but has been delayed pending the resolution of issues in relation to the relocation of electrical sub stations serving the associated flats. Northern Powergrid have now agreed a location for the substation relocation but have yet to schedule the works within their own programme which may put demolition of the blocks in the current financial year at risk.

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HRA – New Build - £13.172m Forecast Outturn – £7.258m Variance – £5.914m Slippage The original provision of 131units in the year across Orchard Park and Preston Road areas as part of a wider £43m three programme to deliver 414 new build properties supported by £10.4m funding through the Homes and Communities Affordable Homes Programme 2015-18, has been affected by the strategic pause and the need to review the scheme make up and capital expenditure of the schemes to mitigate the impact of the summer budget announcements. Despite this works are progressing to plan at the Ganstead Grove scheme which commenced on site on 7th April and will result in 36 units being delivered in 2015-16. The main contractor has been appointed to undertake the new build of 178 units at Orchard Park. The Contractor has secured planning consent for the scheme and is working with HCC to refine the costs of the development and any necessary changes needed to progress the scheme. It is likely that the scheme will commence later in the year but not achieve completed units and spend will need to be slipped to next year. Two further schemes (Portobello and Southcoates) are also being reviewed in partnership with the contractors to explore options to revise the proposed schemes taking into consideration the impact to HRA funding announced in the recent summer budget. As these are yet to secure planning consent a start on site in 2015/16 is not anticipated and therefore requires budget to be slipped to 2016/17. HRA - Planned Housing Capital Works and Improvements Budget - £23.206m Forecast Outturn – £22.307m Variance – £0.899m Saving Following completion of the decent homes programme in 2010-11, the Council has an on-going duty to maintain the Council housing stock to the Government’s decent homes standard. A planned programme of works has been developed for the year which is underpinned by the business plan to assess long term affordability of the HRA. This identifies the main elements of work (i.e. kitchens, heating, rewire, roofing, window and door replacement) required to specific addresses to ensure the decent homes standard is maintained. In addition, provision is included for similar works arising from reactive works, mainly when properties become empty and are prepared for re-let. Overall, 14% of the total direct works budget allocation relates to reactive works which is based on historical information and trends which may not necessarily be consistent with the actual occurrences in any particular year and as such is monitored closely. The budget also includes specialist works including asbestos removal and works to communal areas such as lift replacement and controlled entry systems.

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Over 5,800 major elements of work are forecast to be undertaken in the year with savings identified through a review of the scope of the external renewal works programme which precedes painting works , a lower requirement for heating installations than originally budgeted as the contractor had capacity to undertake part of the current year planned programme late in the 2014-15 financial year and a reduced requirement for rewires than originally anticipated following periodic inspection of the condition of property electrical circuits. HRA - Solid Wall Insulation Programme Budget - £6.293m Forecast Outturn – £2.705m Variance – £3.588m Slippage A medium term programme to undertake energy efficiency, environmental and structural works to the council’s non traditional built housing stock. The 2015-16 programme provides for works to be undertaken to 140 Preston Road Wingets and 200 Orchard Park No Fines properties with work to over 2,400 further properties planned over the next three years. The 2015-16 programme has been delayed as part of the strategic pause to take into consideration the impact to HRA funding announced in the recent summer budget. The programme has been given the go ahead to proceed and final terms are being agreed with the Council’s Green Deal and ECO partner with the expectation the contract will be signed in November with work commencing in the new year. The forecast reflects the likely reduced spend level in the year with further potential risks noted from inclement weather conditions over the remainder of the year. The budget also includes carry forward provision of £1.3m to complete the stand alone 2014-15 solid wall insulation programme to 151 BISF and Newland properties which was delayed pending a value for money exercise on the scope of works as previously reported. This scheme is now complete. Hull Neighbourhood Renewal Programme - Ings - £2.301m The General Funds contribution to the Ings Renewal programme is to support the acquisition and demolition of privately owned dwellings within the area to assemble land for Compendium Livings new build programme in the area. In year there is a HRA contribution to this code of £1.620m making a total available to £3.921m.

Acquisition Programme

The Renewals Team is currently working across the first four phases of acquisition that contains 314 properties of which 31 are still occupied.

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Eight remaining residents within the first three phases of acquisition relocating to new build are now awaiting the completion of properties at the Perivale Close/Petersham Close site. The relocations to new build are currently expected to commence late November. Across the entire programme to date there are just two owners not in agreement where the Council continues to negotiate a value for their properties. As per the Cabinet decision in May 2014 which gave approval to the making of a Compulsory Purchase Order to acquire two properties from the first three phases of acquisition, a Statement of Reasons is in the early stages of being drafted and is expected to be served towards end of 2015. Demolition Programme One hundred and twenty one properties have been demolished to date. The next phase of demolition commenced on 14th September of fifteen blocks containing 89 properties. The phase of demolition is progressing well and is programmed to be completed by the end of March 2016. New build development Site E Twickenham Close – Works on site at Site E have restarted with Kier Living taking control of the site. The development consists of 38 family homes and only one home is unsold. 16 families have already moved to their new homes. The development has proved to be a huge success. Detailed work on phases 2a and 3b of the Ings master plan are being undertaken to progress a reserved matters planning application for the next three-year development programme on land adjacent to Bluebell Fields and Saltshouse Road, which will form two sites of development containing a total of 85 affordable homes and sale homes subject to the local market. Planning applications are expected to be submitted later this year. Phase 1 – the development of 65 mixed tenure homes at Petersham and Perivale Close is behind programme primarily due to the connection of mains services to the site, this has meant that the handover profile has had to be adjusted meaning that the first batch of property handovers is now November 2015. Hull Neighbourhood Renewal Programme - Newington and St. Andrews, Regional Growth Fund Programme - £1.717m: The Newington and St. Andrews programme is the general fund support for the renewal programme in the area supported by Regional Growth Fund round 1 and investment from the Private sector through Keepmoat Homes. The Council delivered elements of programme are focussed on the assembly of land for re development, the programme is reaching a natural conclusion of voluntary acquisition with the use of compulsory purchase orders required to complete the council’s programme.

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Acquisition Programme Across the current Newington and St Andrew’s acquisition programme there are 14 occupied properties remaining and of these three owners have agreed an acquisition price. Compulsory Purchase processes are being undertaken for all remaining privately owned properties Demolition Programme The demolition of the former Blenkin’s plastics factory, Plane Street, has been completed. Tender documents are being evaluated for properties for the remainder of vacant properties to the west of Hawthorn Avenue including the Hawthorn Hotel (5 properties in total), Newington Street (4 properties) and 231/3 Hawthorn Avenue to the east of Hawthorn Avenue. Substantial progress has been made with Northern Powergrid in relation to the vacant properties to the north of Clyde Street, Seymour Street and Pretoria Street and it is anticipated that all complete blocks of properties in Council ownership will be demolished by the end of the financial year. Charleston Club, Walliker Street is available for demolition though the Party Wall Act discussions are extensive and are delaying the start of physical works. New Build Activity by Keepmoat Homes. Affordable Housing Delivery: The Emergency Summer Budget announcement made significant changes to the deliverability of affordable homes to rent which need detailed consideration by All Registered Providers, the most significant being a forced rent reduction of 1% per year for the next 4 years. At this time the impact to the schemes in Newington and St. Andrews is unknown and we are continuing to work with our partners to understand any impact this may have. Riley College: Works on site are progressing well with the next phase of ground work due to commence in the coming weeks. This work is the removal of the significant foundations of the former college building. This work is likely to cause some disruption in the area through noise and vibration, the contractor will proactively write to the residents closest to the site to inform them of the works. It is anticipated that the works will take 6 – 8 weeks and the contractor has contacted the Councils Environmental Health team to discuss the works and how to mitigate the disruption wherever possible. Amy Johnson Phase 2: The developer is reporting that sales on this site are currently performing above target. Hawthorn Avenue East: The team are working closely with Pickering and Ferens, Places for People and Keepmoat Homes to bring forward plans for the redevelopment of the site surrounding the Extra Care Scheme following the success of all partners in securing grant funding for the development of 86 homes, including 40 bungalows.

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Hull Neighbourhood Renewal Programme – Preston Road - £0.354m The General Funds contribution to the Preston Road Renewal programme is to support the acquisition and demolition of privately owned dwellings within the area to assemble land for future redevelopment. In year there is a HRA contribution to this code of £1.192m making a total available to £1.546m. Acquisition Programme The Renewals Team are currently working in the first two full phases of acquisition and 150 residents have relocated to date. There are eight privately owned properties within the current phases and of these two owners have agreed valuations for their properties, whilst three continue to negotiate with the Council. The first 87 residents have relocated into the new build properties on the Ganstead Grove development and further residents are set to relocate to the new build development during the coming months. Demolition Programme To date forty seven blocks containing one hundred and forty two properties are available for demolition. The majority are within the current phases though there are a small number of blocks in future phases that are also available. Demolition will take place once disconnections are confirmed and the first phase is due to commence before the end of the year. Hull Neighbourhood Renewal Programme – Priority Neighbourhoods - £1.322m The Priority Neighbourhoods programme includes the general fund elements of the empty homes programme, and private sector frontage improvement and external solid wall insulation programmes. Multiple accruals of significant value have been processed to the Priority Neighbourhood capital code. There is a risk that the final account under the Hobson and Porter contract for Boulevard 2 and Wellsted Street, which was completed during the last financial year, will be significantly lower than projected. This will be resolved through NPS’s project manager report during October. During the next round of monitoring the final expenditure against the accruals will be known. In addition to the accrual values a further £100k additional expenditure will be seen for legacy schemes in this financial year. To date approximately £70k of this expenditure has been incurred. Capitalised staff costs of £142k will also be seen during 2015/16.

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Since the budget was approved in February 2015, Cabinet has agreed to draw-down grant funding and to re-cycle funding as follows for the next three years: Funding Type Amount (£m)

Local Growth Fund (LEP) 4.100*

Carry-forward 14/15 0.588

Affordable Homes Programme (HCA) 0.430*

ECO (NPower) 0.113

Recycled Rent 0.109

Recycled Grant (purchase and re-sale) 2.737**

Private sector renewal HCC capital 2.750

Total 10.827

Table 1Priority Neighbourhoods Funding Break-down *Remainder of these grants (not included in these totals) to be attributed to the HRA schemes. **please note that this level of recycled grant may not be achieved though this should not affect the current financial year budget – please see the monitoring statement below

The profile over the next three years has been revised since the quarter 1 monitoring and is now profiled as follows (analysis on the re-profile is set out in the following section): Scheme 15/16 16/17 17/18 Total

Staffing £142k £175k £180k £497k

Legacy – 2012-15 completion

£100k (plus accrued funds

to expend)

£0 £0 £100k

Priority Neighbourhoods – Citywide Empty Homes 15 – 18

£480k £4.29m* £895k* £5,665m

Priority Neighbourhoods – West Frontage and ESWI

£500k £1.61m 0 £2.11m

Priority Neighbourhoods – East Frontages

£50k £1.3m 0 £1.35m

Priority Neighbourhoods – West Frontages (schemes 1 and 2)

£50k £1.055m 0 £1.105m

Total £1.322m £8.430m £1.075m £10.827m

Table 2 Priority Neighbourhoods 3 year profile

*please note that these may be subject to change due to the challenges in the purchase and re-sale model under the empty homes programme – further analysis will be completed before the next round of monitoring.

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Further analysis of each element of the programme is set out below. Empty Homes On 23rd March 2015 Cabinet approved the continuation of the empty homes element of the Priority Neighbourhoods Programme, to bring 200 empty properties back into use by March 2018, a proportion of which will be funded through the general fund and a proportion through the HRA. Approval was also granted to draw down £1.7m of Homes and Communities Agency (HCA) 2015-18 grant and to agree to enter a funding agreement with the LEP to drawdown £2.25 million to tackle empty homes. Only a proportion of these grants will be used by the general fund, amounts shown in Table 1 above. The following targets have been set against each method to reach 200 properties:

Method Target Budget

Lease 46 General Fund

Empty Dwelling Management Order

17 General Fund

Purchase and Re-sale 20 General Fund

Loan 5 General Fund

Purchase and retain 75 HRA

Self-refurbishment (owner improves their own property)

37 N/A (nil cost)

Total 200

Table 3 Empty Homes by Method and Fund Following the strategic pause due to the government’s budget announcement on 8th July, the empty homes element of the Priority Neighbourhoods Programme (both HRA and General fund elements) have been reviewed. It has now been agreed that the scheme will continue though the number of outputs delivered against the HRA vs the General fund may change. These targets will change to match the market for example purchasing properties to retain or sell is proving more challenging since a national newspaper promoted Hull as one of the best places for private landlords to invest and many long term empty properties are now being purchased.

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The table below shows the current progress with acquisition for the general fund units:

Method Total

needed In

negotiation Acquisition

agreed

Total potentially obtained to date

Shortfall

Lease 46 24 11 35 11

EDMO / Enforcement

17 22 3 25 -8

Purchase and sale

20 0 1 1 19

Self Refurb 37 0 0 0 37

Loans 5 6 0 6 -1

TOTAL 125 52 15 67 58

Table 4 Empty Homes – Progress to date

Whilst the figure of having potentially acquired 67 of the 125 properties needed looks positive, as many may not come to fruition, pressure will continue to be applied to all owners of empty properties in Hull until the target is met. The number of properties brought back into use due to enforcement action or through self-refurbishment is very likely to increase as will the number purchased for sale. This will reduce the number of leases required. This will continue to be monitored and targets may need to be adjusted to reflect programme changes and landlord choice under the programme. For this element of the programme, the forecast expenditure for the current financial year is approximately £480k (9 x lease refurbishment, 3 x EDMO refurbishment, 1 x Purchase and Re-sale and 50% completion of lease refurbishment x 5). Frontage Improvements and External Solid Wall Insulation Schemes Cabinet agreed (March 2015, minute 102(j)) to commit £2.25m of the Local Growth Fund funding to fund private frontage improvement and/or external solid wall insulation schemes in priority areas defined in the Area Action Plans (AAPs), and to delegate the detailed delivery terms and arrangements to the City Neighbourhoods and Housing Manager in consultation with the City Plan Enabler for Infrastructure (including Housing and Waste Management) and Area Committees for areas in which the properties are located.

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The decision record to agree the streets will be signed during October and NPS Humber will be appointed before the end of October. The table below shows areas for renewal and the approximate cost of works. Area Proposed scheme Approximate

cost (£m)

West External Solid Wall Insulation and Frontage Improvements

External solid wall insulation, renewal of footpaths to court terraces and boundary walls for properties with frontages.

2.110

West Frontages Improvements Scheme 1

Painting scheme, renewal of fascias and gutters, renewal of court terrace footpaths and boundary walls for properties with frontages.

0.715

West Frontage Improvements Only Scheme 2

Painting scheme, renewal of fascias and gutters, renewal of court terrace footpaths and boundary walls for properties with frontages.

0.390

East Frontage Improvements Only

Painting scheme, renewal of fascias and gutters, renewal of court terrace footpaths and boundary walls for properties

1.350

Total 4.565

Table 5 Proposed Private Sector Renewal Schemes and estimated costs The programme is currently gearing up for delivery this year and therefore there will be a small expenditure on design work to the schemes proposed for frontage improvements only. In the proposed external solid wall scheme in the West of the City there will be up to a full quarter of delivery, the forecast expenditure is therefore £500k during the current financial year. Waste Collection (Recycling Bin Replacement) - £0.120m Demand remains high for replacement bins in line with the policy to provide free collections. The £120k allocated for bins will again be significantly overcommitted. Estimated outturn £350k. Bus Lane Enforcement - £0.130m Bus lane cameras have been procured and installed. Revisions to the Traffic Regulation Order and renewal of signs and lining to support enforcement are complete and the cameras have been operational since mid July. Kingswood Link Road - £0.442m The East / West link was completed during Q1 and opened to traffic in mid May. During Q1 the emphasis of the work was to connect the lighting columns, erect road signs and apply the wearing course for the carriageway and footways. There was a slight delay caused through the unavailability of electricity jointing gangs early in the month which subsequently delayed the application of the footway wearing course.

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LED Street Lighting Replacement Programme - £0.811m The 2015/16 financial year is the second year of the two year programme to convert street lighting in the city centre and a number of arterial roads to LED lanterns. There is a requirement in a number of conversions to replace old time expired lighting columns and this is being funded through the street lighting element of the capital transport projects budget. During Q1 the emphasis has been placed on the fitting of LED lanterns to the new lighting columns that were installed on sections of Holderness Road and Boothferry Road along with the conversion lanterns on existing lighting columns on Holderness Road between Mount Pleasant and Summergangs Road. Q2 has seen the continuation of the fitting of replacement LED lanterns to existing lighting columns and replacement columns on Beverley Road, Spring Bank, Spring Bank West, Stoneferry Road and Holderness Road between Summergangs Road and Diadem Grove. Aspire Academy - £0.095m A summary of planned works and progress to date is shown in the table below:

School name Work commenced

Building Works

Completion date

Recent Activity/Progress to date

Aspire Academy Jan 2015 Defects liability period ends Mar 16. Final Account April 16

Devolved Formula Capital - £0.774m Devolved Formula Capital grant can be used by the school for any capital purpose relating to schools buildings and assets, including ICT equipment. Any unspent grant funding arising from 2014/15 has been carried forward into 2015/16, in line with the terms and conditions of the grant. The grant is fully devolved out to individual schools, and is therefore controlled and monitored at an individual school level. Investment in Schools (BSF/PCP) - £2.763m 2015/2016 Investment in Secondary/ Special Schools (BSF) Phase 0 – Winifred Holtby/Tweendykes and Archbishop Sentamu – Complete with FM contract on-going. Phase 1 - Kingswood College of Arts, Andrew Marvell Business and Enterprise College and Oakfield Special School – Complete with FM contracts on-going.

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Phase 2 – Newland School for Girls, Trinity House, Frederick Holmes, Northcott, Ashwell, Fountain House and School Girl Mum’s completed September 2013. St Mary’s College completed October 2014. Bridgeview/ Whitehouse and Kingswood Parks Primary building phase complete June 2014. Phase 3 Demolition works under way or planned on; David Lister (completed), Tilbury (completed), (WHFRC) West Hull Family Resource Centre (completed), Green space Tilbury and West Hull Family Resource Centre area completed Sir Henry Cooper demolition completed Green space works planned for spring 16, Isaac Newton works on service diversion underway. Other Infrastructure Schemes Aspire Academy – new build sponsored by EFA - Completed Priority Schools Building Programme (PSBP) – 6 new build schools in 2 phases sponsored by EFA is underway A summary of planned works and progress to date is shown in the table below:


Building Works

Completion date


Archbishop Sentamu Academy

Jan 2010 Sept 2011 Final account negotiations due for completion Sept 15

Sirius Academy, Ganton Special School and the ESHV

Jan 2010 Sept 2011 Retention released April 14. Lease to academy completed

Winifred Holtby and Tweendykes Special School

Jan 2010 Sept 2011 Final account negotiations due for completion Nov 15

Kelvin Hall School April 2010 April 2012 Retention released April 2014

Thomas Ferens Academy

Mar 2011 Sept 2012 Final account negotiations due for completion Sept 15

Malet Lambert Mar 2011 Sept 2012 Final account negotiations due for completion Sept 15

Oakfield Special School Sept 2011 Jan 2013 Final account negotiations due for completion Sept 15

Andrew Marvel Business & Enterprise College

Apr 2011 Jan 2013 Final account negotiations due for completion Sept 15

Kingswood College of Arts

Apr 2011 Jan 2013 Final account negotiations due for completion Sept 15

Frederick Holmes Special School

July 2012 Sept 2013 Final account negotiations due for completion Jan 15

The Schoolgirl Mum’s Unit

July 2012 Sept 2012 Final account negotiations complete

Newland School for Girls

July 2012 Sept 2013 Defects liability period Sept 14. Final Account Jul 15

Hull Trinity House July 2012 Sept 2013 Defects liability period Sept 14. Final Account Sept 15

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St Mary’s College July 2012 June 2014 Main teaching & Theatre works external works and pitches completed June 15

Northcott Spring 2013 Spring 2014 Defects liability period ends April 15. Final Account Oct 15

Ashwell Spring 2013 Autumn 2013

Defects liability period Sept 14. Final Account Jan 15

Bridgeview Spring 2013 Spring 2014 Defects liability period ends April 15. Final Account Nov 15

Tweendykes Demolition Sept 12 March 13 Defect Liability ends March 14

David Lister Demolition Oct 12 June 13 Defect Liability ends July 2015

Isaac Newton Dec 15 June 16 Still occupied by various groups.

Sir Henry Cooper Demolition

June 14 Jan 15 Demolition contract completed Jan 15

Northern Green Space – Sir Henry Cooper

Feb 16 April 16 Phase 2 Spring 2016

Western Green Space April 14 March 15 Opened July 15

2015/2016 Investment in Primary Schools (PCP) A summary of planned works and progress to date is shown in the table below:


Building Works

Completion date


Christopher Pickering Primary School, Ganton School - primary and Educational Service for HIVI - primary)

Mar 2011 Sept 2012 Final account negotiations completed

Endike Primary School May 2011 Sept 2012 Final account negotiations completed

Kingswood Park Primary Aug 2013 June 2014 Defects liability period ends Sept 15. Final Account Jan 16

2015/2016 Outturn Overall the BSF programme is on track for completion within the budgets set and agreed by PFS and Cabinet in 2008. ICT expenditure will be reprofiled from 15/16 into 16/17 and some expenditure may occur in 17/18. This is because the contract for ICT runs until Sept 17 and the schools have an element of refresh funding to replace PC’s and equipment during the life of the contract. Such equipment can be replaced when it is four years old but the schools are prudently retaining this funding rather than spending it as soon as the funds become available to them. The refresh funding was originally profiled to all be spent by 2016.

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City Cycle Track - £0.670m The project is to develop a 1km closed road cycle track adjacent to Ennerdale Leisure Centre. This would be the first sports cycling facility in the city. There is a capital contribution from the Council of £80k in the capital programme and expectation that the scheme will cost in the region of £670k, the remainder of the funding to be secured by external grant.

British Cycling wish to proceed with the design, planning consent and tender stages of the project in the remainder of this financial year 2015/16 and wish to release match funding for this purpose of £25k to be matched by a Council contribution of £25k, totalling £50k for this first stage. Sport England have indicated that this is their preferred route for the development of the project, and would wish to receive an application for funding containing information to include planning consent and detailed design. Releasing £50k to the fund the design stage will be able to be counted in the total project cost for match funding purposes, but there will remain an element of working at risk until all funding is secured from external grant. This risk is being shared with the Council’s partners British Cycling.

Hull Culture & Leisure are contracted by the Council to lead on the project working in partnership with the Council. For the purposes of external funding applications the Council will be lead applicant due to lease hold arrangements. Library Books - £0.558m Budget spend is below profiled spend due to a change in supplier. This is beginning to come in line with profiled spend but there remains some technical issues to resolve between supplier and library systems that once completed will speed up the process. Regeneration - Other Schemes - £2.264m Within the Fruit Market, Humber Street properties identified for refurbishment have brought continuing difficulties. Emergency temporary structural supports have been required with major rebuilding. There remains an awareness of a potential significant risk of funding shortfall that needs to be carefully managed. The Council is waiting a response from the Big Lottery Fund (BLF) regarding the closure of the Arc project. The other provision for potential grant repayment as part of the ongoing Fruit Market development plans remains. The Highways Agency detailed designs are being formulated and progress made however delays mean that any Council contribution for Archaeology will now be required in 15/16. The funding income through RGF remains ringfenced and required recycling for economic development schemes.

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Unringfenced Schemes Corporate Operational Buildings Maintenance - £0.973m The total budget for Corporate Operational Property Repairs (COPR) within the Capital Programme for the 2015/16 year is £973k. This has now been reduced to 22 projects identified as priorities having a total estimated cost of c£1.4 million. The criteria used for prioritising the projects are:-

• payment of retention monies for projects undertaken in previous years, where the defects liability period is due to expire by 31 March 2016 and which the Council has a contractual commitment to pay.

• essential repairs to ensure Health and Safety compliance.

• priorities identified as essential to maintain the delivery of Council services and protection of revenue income streams

The major item of expenditure is the removal of asbestos from the Guildhall basement (total cost £450k) out of a total budget of £973k. Known repairs essential for the safe occupation of Council properties have to be undertaken. This will lead to a potential over commitment of up to £427k during the year. ICT Infrastructure - £1.600m Content Management System The project to replace the Council’s Content Management System and install a new Intranet, website and A-Z (Call Centre / Customer Service Centres) continues to make progress as part of the Customer Engagement Programme. Solution design is nearly complete. Consideration also needs to be taken with regard HCAL and CoC, to ensure a joined-up approach to web provision, including mobile and Apps. Regen Scrutiny have asked for regular updates. OSR Additional Spending This budget is being used to complete projects originally commenced as part of OSR / Business Transition Team / Shared Services but which have now transferred back into ICT. Priority has been given to improving Oracle HR Self Service with regard sickness management, annual leave etc. Work is underway with the supplier, Applaud. Adjoining work (to present the MI once it’s recorded in Oracle) is complete in Chameleon. Work to develop Payroll has also been funded from this budget code, to remove a currently manual process by which third party payments from employees’ salaries are charged to the body in question. This work is underway but currently paused to accommodate the large on-boarding of new Academies by the Payroll team.

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Networks and platforms projects Server Virtualisation project is now into delivery phase. Hardware now received and in the process of being configured at Live and DR sites, with migration and upgrade work due to start in November 15. Some project areas are still in progress, but close to completion, these are Upgrade to VPN, Active Directory, Removable Media Control and Encryption and Microsoft Exchange update (E-mail). One project that is profiled, but has not yet started due to resource availability is the Scanning and Secure file transfer project, which is planned to start in Q4. ACFS System Refresh Project - £2.000m

Capital investment required to replace the current OLM CareFirst System which is no longer fit for purpose and does meet Council or Regulatory requirements. Tender specification drawn up and are due back in September. Formal decision likely to made in November. Until the tender specifications come back it is not known at this time whether they are fit for purpose, therefore it may be likely that funding will be reprofiled into 16/17 - further updates to be provided as part of Quarter 3 monitoring process. Strategic Property Purchases - £0.355m The property purchase fund was created to enable the Council to purchase strategic assets, as follows: National Picture Playhouse - The purchase of the national picture theatre was supported by Cabinet in March 2014. A compulsory purchase order may be required and Planning Committee, as the decision maker, deferred this item at the June policy committee. Further funding of £125k was approved by Cabinet in September 2015 for acquisition of the freehold of the former Sharkeys Public House in George Street. The Council owns the adjacent and surrounding property (incl George Street MSCP) and the proposed acquisition will enhance the redevelopment potential of the wider landholding. Redevelopment options are currently being considered including a collaborative arrangement with Humberside Police who are marketing the adjoining former Queens Gardens Police HQ for redevelopment.

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New Waste Collection Strategy (In-cab Technology) - £0.025m The key remaining element of the project is the replacement of the trade waste database (CID Billing) and integration with the call centre systems and E-Business Suite. It is anticipated that this will be completed during Quarter 4 but this is dependent on demand for internal IT support. Private Sector Housing - £0.750m Forecast Outturn – £0.750m The main focus for this budget is loans to tackle category one hazards and non-decency in privately owned homes through loan assistance to owner occupiers and private landlords, dealing with empty private sector properties and undertaking works in default following enforcement action. £500k of the original allocation has been transferred from the Housing Programme during this quarter to the Priority Neighbourhoods Programme to support further face lift schemes in East and West Hull. This is part of the additional capital allocation to private sector housing of £2.75m between the years 2015-2018. The improvement schemes will be funded through various funding streams. The remainder of the budget is on target to be fully spent with no specific issues to report at this time. LED Street Lighting Project - £0.100m This scheme is now complete. Regeneration - Green Port Hull - £1.700m Early phase projects have now been identified and the Councils contribution identified. A decision to release phase 1 funding is due with final profile of drawdown payments to be agreed. The programme of supportive measures is still subject to change. Longer term in 16/17 there still remains the possibility of significant savings in the programme. Transport Projects - £8.125m The emphasis of the transport projects capital programme this year is again on carriageway and footway maintenance. During Q1 five carriageway resurfacing schemes have been completed along with the widening of Maybury Road with its junction with Holderness Road. Six footway recycling schemes were also completed. During Q2 the surface dressing programme consisting of 15 sections of carriageway and eight carriageway plane and resurface schemes completed. This has included the busy junction of Great Union Street and Witham, Lowgate and Willerby Road.

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The programme to replacement of time expired traffic signal equipment at junctions and signalised pedestrian crossings has continued. Education for 2 Year Olds - £0.375m There is a carry forward balance of £175k from 2014/15 and a further £200k was transferred from the DSG Early Years revenue block to capital to create additional places. Information from our early years sufficiency audit indicates that there could be a shortfall of places in the Wards –St Andrews, Marfleet, Kingswood and possibly the West area due to 2 other settings who can no longer offer 2 year old places. We are, therefore working with the Private, Voluntary & Independent Providers, Childminders and schools to explore options for expansion and support refurbishments. North Carr/Kingswood - Highlands Primary School in North Carr are expanding due to high numbers of children requiring a nursery place; we are contributing to the cost of a mobile and will monitor provision and need in Kingswood. Work is now underway and we have received a request to increase our contribution by £100k. Consideration will be given once we have established how much support to the Marfleet ward proposed new setting will be required. Marfleet – We have already extended the provision for 2 year olds at Marfleet Children’s Centre and supported a new provision at Stalybridge as well as an extension at Stalybridge to create a further 40 places. This will be completed during the Summer 15 term (June 2015). However, this is an area that we feel may need additional places. An opportunity has arisen to purchase John Havelot House on Grange Road. We have been approached by Westside Day Nurseries to support their application to develop the site and increase the number of places in this area of need. St Andrews & West - We continue to explore opportunities for growth in the St Andrews ward and will monitor the situation in the West area. Tillymints Day Care providers have completed the extension and refurbishment of Holderness Road and opened for business on 1st September. They intend to maintain their Laburnum Avenue site and increase the provision for 2 year olds and out of school provision. There are approximately 1,983 2 year old children who are entitled to access their free 15 hours in the autumn 2015 term, we aim to increase the uptake to 80% this year. We are working with primary schools to ensure that their 3&4 year old provision is used to capacity and we will need to consider the impact of the proposed 30 hour fee offer by the Government to working parents from September 2016. Schools Maintenance & Improvement Programme - £10.290m The Schools Capital Programme 2015/16 addresses the most urgent condition, suitability and sufficiency needs within the primary school estate.

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Seventeen projects were completed in Quarter 2. Contracts have been awarded on another seven with works already on site or due to start imminently. Four schemes are currently at design stage and one project is at feasibility stage. . Completed works include first phase enabling works at Priory and Wheeler Primary Schools to address pupil place planning needs in advance of larger schemes at both schools to be completed by September 2016. Kitchen upgrade and improvement works have been completed at Marfleet and Rokeby Primary Schools and other schemes that have been undertaken are heating system upgrades, toilet improvements and roof and window replacements. Spend on the programme currently stands at approximately £1.5m. NPS are in the process of negotiating /agreeing final accounts with contractors for works delivered over the summer holidays and the level of spend will increase accordingly. Gypsy and Traveller Sites - £0.090m The refurbishment has been completed with the exception of the retention which is due on September 2015. Remaining funds are required for additional electrical works and/or progressing of a tolerated stopping place to reduce the impact of unauthorised traveller encampments. Local Community Initiatives - £2.484m 52% of the available funding has been committed to schemes. £341k has been spent with the remainder relating to schemes which are currently being developed. It is anticipated that 100% will be committed to schemes by 31 March 2016. Homelessness Hostels - £0.067m Centre for Assessment and Emergency Accommodation (CAEA) 1. Progress

Commissioning is completed and the Roper Street site is now fully operational.

2. The Housing Related Support (HRS) commissioning process in 2013 included a Centre for Assessment and Emergency Accommodation service for homeless people, to complement existing provision. £70k capital was allocated to the scheme.

This project is now complete.

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Leisure Facilities Maintenance Programme - £0.400m Capital investment required to the Council’s Leisure Facilities and to address the backlog maintenance programme. The total funding envelope is £3.5m and it is anticipated that part of the allocation will occur beyond the 2017/18 timeframe. The total profiled budget for Leisure Facilities Maintenance programme for the 2015/16 year is £400k. The current focus for expenditure is:-

- Hull Ice Arena - Albert Avenue baths - Sutton Golf course

Detailed feasibility studies on the projects will shortly be received which will enable important health and safety works to be undertaken as a priority and which is anticipated will require the expenditure commitment of £400k. Adults Services - £0.564m The Adults Services Capital Board oversees and decides on projects submitted to them based on meeting the following criteria;

• Works or Equipment that improve the Customers/Residents Care/Quality of Life.

• Works to meet current or impending Health & Safety requirements.

• Works or Equipment to reduce the pressures on the Revenue and/or Repairs & Maintenance Budgets.

Of the 6 projects carried forward 4 have been completed the remaining 2 have revised tenders accepted to ensure we meet with the agreed budget limits These projects consist of; Pennine Centre - Reception realignment/refurbishment Kinloss Garth - Office realignment New approved projects concentrate on enabling the realignment of Services to ensure that they are fit for purpose. These projects consist of; Nicholson House - Refurbishment Works Highfield Resource – Electrical sockets upgrade. 220 Preston Road – Minor refurbishment

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Disabled Facilities Grants - £1.326m Forecast Outturn – £1.326m This budget is forecast to be fully spent with outputs of 265 completed Disabled Facilities Grants (DFG) to provide assistance to private sector occupiers. DFGs are a means tested mandatory grant. The original budget allocation was significantly reduced from 2014-15 which has had a significant impact on customer waiting times for their property to be surveyed. Funding of DFGs is now through the Better Care Fund (BCF) – previously it was a grant allocation from the DCLG. The BCF allocation for the year is an additional £76k more than the original budget allocation and an additional funding allocation of £250k Adult Social Care Grant has been confirmed over the last quarter. This has mitigated the situation to a degree, however, the overall allocation is still insufficient to deal with the demand. As at the end of Quarter 2, the waiting time for a survey is 49 weeks. Hull Capital Bid - £0.160m Transforming Care Grant - capital funding for adaptations to housing to support transfer of people from inpatient to community based settings. The grant (£160k) from the Department of Health is from the Transforming Care: a national response to Winterbourne View hospital and the Winterbourne View Concordat. The proposal is to offer people with an LD who had experienced episodes of mental illness / emotional distress requiring a period of adjustment and recovery to be offered re-enablement services at Thornton Court. This would help in establishing links with the community and developing support structures. Recovery would follow the re-enablement model. The facility would also provide an opportunity to consider prevention of admission where issues are placement breakdown or discharge from prison in terms of building up improved longer term community support. Parity of esteem for mental illness recovery against support to improved physical health began to underpin the bid for individuals stepping back into the community. This would reduce their length of stay in a hospital setting. There is an acknowledgement that the service would be able to link into the pathway of integrated support that included preventing people going to inpatient service. In reviewing the current cohort of people supported in the local A/T services at least two individuals were identified who would benefit for protected community support to help the return home.

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To ensure benefit to others all 3 flats will not only be ‘autism friendly’ but DDA compliant. The aim is to complete the works project before January 2016 to ensure that the flats are available and in use from February 2016. Greening the City - £0.297m The major item of expenditure agreed is the demolition of the New York Hotel, however, the owner has agreed to undertake the work themselves and has cleared access to the rear of the New York Hotel and erected scaffolding. The Council have been in regular discussion with the owner, demolition contractors and specialist Asbestos removal firms. City Centre Public Realm - £5.962m Public Realm Initial meetings with the principal contractor Ringway (Eurovia) to address a range of issues have taken place. Stakeholders are meeting on a weekly basis to discuss traffic management and events. Formal contract documents were issued to Ringway for signature on 30th September. Supplies of natural stone began arriving in Hull in September; further deliveries are scheduled to continue through the coming months. The works will begin on site week commencing 12th October in Jameson St, Queen Victoria Square, Whitefriargate, Trinity Square and Humber Street. A Public Liaison Officer from Eurovia will be working closely with businesses and residents from 2 October throughout the contract to ensure continual dialogue is maintained. The design of Beverley Gate area is undergoing further review and development with a variety of stakeholders including Historic England (formerly English Heritage) prior to a formal process of wider consultation with the public as the Planning Application is considered. Planning applications for a number of aspects are imminent. Fruit Market Fruit Market Lead Developer Partner contract – the contract with Wykeland Beal Limited is due for completion on 13th October 2015. Following this the new Fruit Market Limited Liability Partnership, a 50/50 partnership between Wykeland Beal Limited and the Council, will become operational for the development and property management of the Humber Street area. Early Works refurbishment - the Early Works refurbishment contract focused on Humber Street is due for completion mid March 2016. The first 4 affordable Council apartments will be completed w/b 2nd November 2015.

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The Centre for Digital Innovation (C4DI) - Watergate in partnership with Hull City Council, ERDF and Costal Communities funding is progressing with stage 1 due for completion at the end of October 2015. Public realm works –The public realm improvements and works to pedestrianise parts of Pier Street, Humber Dock Street and Humber will commence in October 2015. New Theatre Retrofit - £2.704m The scheme had been submitted to the Planning Pre App meeting in June. The expenditure to date is related to the cost of producing the feasibility documentation drawings which were included in the planning submission to be heard at the Planning Committee on 7th October 2015. The progress is in line with the high level project plan with the commencement of works taking place after the Pantomime season has ended in January 2016. Ferens Art Gallery - £1.955m This scheme had been submitted to the Planning Pre App meeting In June. The expenditure to date is related to the cost of producing the feasibility documentation drawings which were included in the planning submission to be heard at the Planning Committee on 7th October 2015. The spending profile reflects the additional external funding this scheme has attracted and the draw-down on the £500k Arts Council grant has commenced for full claim by March 2016. We await confirmation for the draw-down of the £1m from central government which is expected to be claimed during the next financial year. The progress is in line with the high level project plan. Pearson Park Heritage Investment - £0.255m Following approval by the Heritage Lottery Fund, an open OJEU procurement process to appoint a specialist heritage design team to work with the project officer to develop the second round bid was launched on 17 April 2015. The Council confirmed the decision to appoint the contractor on 1 July 2015 at the fixed price of £196,400. The services to be provided comprise a development phase (RIBA stages 1-3 at £93.4k), funded by HLF and a delivery phase (RIBA stages 4-7 at £103k). A break clause will be enacted at the end of RIBA stage 3 to allow for the evaluation of the second round bid by the HLF and the confirmation of funding for the delivery of the project. The RIBA stage 3 plans will be submitted to the HLF on 29 February 2016 with a decision on the outcome of the Second Round bid expected by late summer 2016. Southern Green has made good progress with assembling surveys and relevant information in relation to the development of the scheme and design options. We are currently in the process of tendering through RFQ to appoint a Quantity Surveyor.

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Beverley Road Heritage Investment - £0.098m Formal permission to start has now been granted by the Heritage Lottery Fund and work is continuing on the contract paperwork and other documentation in advance of a formal project launch in late October. The scheme will offer grants to property owners at the south end of Beverley Road to fund conservation repairs to historic properties. It will also fund a series of boundary and public realm improvement works, as well as working with local schools and contractors to deliver heritage training and engagement opportunities. Repurposing the Old Town – Market Refurbishment - £0.250m This scheme was at the pre-contract stage during this reporting period. The expenditure to date is related to the cost of producing the feasibility documentation and drawings suitable for inclusion in the planning application. Work is on-going to get to appointment of a contractor for the scheme. Dialogue is taking place with potential partners. Preliminary engagement has begun with traders offering reassurance about the forthcoming disruption. Formal consultation is planned for November 2015. University Technical College (UTC) - £0.900m On the 23rd June Cabinet approval was given to the transfer of land at Worship Street to the Ron Dearing University Technical College Trust for the building of the University Technical College. Work is underway in collaboration with the EFA, Ron Dearing Trust and Esteem to develop a feasibility study and design with the aim of submitting a planning application in December 15. Woodford Pool Extension - £1.929m This scheme had been submitted to the Planning Pre App meeting in June. The expenditure to date is related to the cost of producing the feasibility documentation drawings which were included in the planning submission which is to be heard at the Planning Committee on 4th November 2015. The progress is in line with the high level project plan. West Park - £1.200m A programme of investment is planned for West Park to improve the existing furniture and facilities within the park, funded from S106 contributions. This will build upon work previously undertaken in 2010 when a new entrance to the park was delivered which also included new footpaths and lighting leading to the stadium.

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Feasibility & Development Work - £0.730m The funding has been identified for specific elements of work. Some of these have commenced under the individual scheme codes and therefore this funding will be transferred to other codes as required. Investment in Museums - £0.100m The BMMMC Collection has been inspected for the purposes of a condition survey and to provide a valuation. Improved Maritime/Museums and Heritage Offer - Initial scoping to inform an outline Strategic case complete. Project Initiation document complete and Project Enquiry Form submitted to Heritage Lottery Fund. Hull Culture and Leisure have released curator to commence work full time on formal Bid Application. Work on the programme outline developed. Work to engage necessary consultants to prepare the round one bid underway Hotel, Music & Events Centre – £2.993m The initial site assessments and feasibility work has been identified in RIBA Stage 1 and a report went to Cabinet 29th June 2015 with subsequent approval. RIBA Stage 2 completed September ‘15. OJEU procurement for an operator commenced July ’15, PQQ returns and short listing due for October ’15, Stage 1 ITPD to be completed December ’15 and Stage 2 ITCD and appointment completed in April ‘16. Appointment of Contractor to develop design RIBA Stage 3/4 - December ‘15. Riverside Berth/Cruise terminal – Budget profiled for future years. Initial feasibility report was considered by Cabinet 29th June and funding approved. Project PID updated. Consideration of procurement options underway. Discussions with specialist regarding advice and support with technical appraisal requirements underway. Procurement for a Terminal Operator will start in Jan 16.

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Report to: Finance and Value for Money Overview & Scrutiny Commission 20 November 2015 Cabinet 23 November 2015

Wards All

2015-16 Revenue Budget & Performance Monitoring Second Reported Position (end of September 2015).

Report of the Director of Resources and City Treasurer (Section 151 Officer). This item is not exempt. Therefore exempt reasons are not applicable.

This is a Non-Key Decision.

1. Purpose of the Report and Summary 1.1. To update Members on the revenue budget monitoring position at the end

of September 2015. This is the second formal report for the financial year 2015-16 which explains the current position, the reasons for any variances and the explanation of the movement, along with the management action being taken where appropriate.

1.2. This report sets out the General Fund revenue budget monitoring position

as at the end of August, and also reflects the Housing Revenue Account (HRA) and Schools’ financial positions. These are included to ensure that the Council’s major areas of revenue activity and wider responsibility are consistently and transparently reported in one document.

1.3. This report shows financial pressures being identified within the General

Fund with the forecast position being a net potential shortfall of £5.803m. The Housing Revenue Account forecast is for a use of reserves of £11.616m, a £0.809m favourable variance to budget. School’s forecasts indicate that their level of reserves will reduce in the current financial year.

1.4. Adverse budget variances will continue to receive priority attention from

officers with the aim of mitigating them to the maximum possible extent by 31 March 2016 in line with the assumptions made in the medium term financial strategy.

2. Recommendations

2.1. That Cabinet Members note the forecast position being reported and the related performance issues. Page 177 of 268

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3. Reasons for Recommendations 3.1. Containing the Council’s 2015/16 revenue expenditure within budget

would represent a significant achievement for the Authority and ensures reserves remain at a level deemed adequate.

4. Background

4.1. This report incorporates finance and performance information which has

been extracted from the Councils financial systems as at the end of September. The financial projections from Assistant City Managers as to the likely year end position for their service is based upon actual income and expenditure data and anticipated financial commitments for the remainder of the financial year. These forecasts have been scrutinised and reviewed by City Managers in coming to their overall projections contained within this report. Staff from Finance manage the overall process and provide support and challenge around the forecasts being made on a risk based approach.

4.2. The Capital Programme is subject to separate arrangements and the latest

position for the year is reported elsewhere on this agenda.

4.3. This is the second in-year position reported formally to Members; there will be a subsequent quarterly report and a final report showing the actual outturn position. There is also a series of informal briefing notes distributed to Cabinet and Scrutiny Members on a monthly basis.

5. Issues for Consideration 5.1. General Fund

5.1.1. The overall position at the end of September is shown in the table

below. The detailed position for services and directorates is shown in Appendix A.

5.1.2. The forecast as it stands is for a net overspend of £5.803m, an

improvement of £0.239m from the last reported position (period five). Service budgets account for £5.683m and there is a risk of delayed delivery of cross cutting and transformational savings of £3.020m. In mitigation there remains £2.900m of the managing savings delivery risk contingency which has not been allocated.

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Service Full Year

Budget

Forecast

Outturn

Forecast

Variance

Previous

Period

Variance

(period 5)

Change

between

periods

No

te

Variance

£’000 £’000 £’000 £’000 £’000 %

City Health & Wellbeing 27,854 27,854 - - - 5.2 -

City Adults Social Care 62,188 65,288 3,100 3,100 - 5.3 5.0

City Regeneration & Policy 4,912 4,909 ( 3) ( 4) 1 5.4 ( 0.1)

City Property & Assets 8,559 8,559 - - - 5.5 -

Major Projects and Infrastructure 921 921 - - - 5.6 -

Chief Executive 545 545 - 19 ( 19) 5.7 -

City Customer Services 6,424 6,424 - 110 ( 110) 5.8 -

City Streetscene 24,505 25,489 984 1,171 ( 187) 5.9 4.0

City Neighbourhoods & Housing 2,383 2,383 - 35 ( 35) 5.10 -

City Treasurer 11,048 11,048 - - - 5.11 -

City Human Resources 2,048 2,163 115 125 ( 10) 5.12 5.6

Town Clerk 5,264 5,264 - - - 5.13 -

City Children Safeguarding 33,803 35,294 1,491 1,491 - 5.14 4.4

City Learning 2,971 2,969 ( 2) ( 2) - 5.15 ( 0.1)

CitySafe & Early Intervention 5,686 5,683 ( 3) ( 3) - 5.16 ( 0.1)

Leisure Commissioning 5,217 5,217 0 0 - 5.17 -

Service Total 204,328 210,011 5,683 6,042 -359 2.8

Schools Block 107,375 107,375 0 0 0 5.19 -

Cross cutting and major

transformational savings-3,020 0 3,020 0 3,020 5.18 -

Corporate Items -308,683 -308,683 0 0 0 5.20 -

Managing Savings Delivery

Risk Contingency (not yet

allocated)

-2,900 -2,900 0 -2,900 -

Net Authority Position - 5,803 5,803 6,042 -239

Service Explanations for the overall projected outturn variations for 2015-16

5.2. City Health and Wellbeing

5.2.1. Summary Service Position

Budget Variance Movement

£27.854m No variance forecast No Change

5.2.2. Summary Service Savings Position.

Saving Delivered In Progress

£0.080m £0.065m £0.015m

Further detail of the savings is shown in Appendix C.

5.2.3. City Manager Comments:

I am currently predicting to end the year with a balanced budget, however there are some substantial pressures that will need to be managed to ensure this happens. In addition to the ongoing services pressures referred to below, the in-year cuts to local authority public health budgets does increase the level of risk for the Public health budget due to the scale of the savings likely to be required and the fact that the detail of the cuts (and the financial allocation beyond 2015/16) is unlikely to be known before the end of the summer/autumn. Within Public Protection pressures include the proposed changes to

Page 179 of 268

4

the Standby/Call-back arrangements, vacancy management and income pressures, in addition to the corporate savings. Within Public Health the two major pressures are the in-year savings from the PH Grant recently announced by the Government and the financial risks regarding the property contracts that transferred from the PCT in 2013. While nationally the method by which the £200m saving from Public Health budgets will be spread across local authorities is still under consultation (national consultation closing 28 August), we are planning on the basis of the saving being relatively evenly distributed across authorities which would equate to approx £1.6m (approx 7% of the 15/16 grant) for Hull. Although there has been no statement made regarding the impact on the Public Health Grant allocation beyond the current financial year, we are basing our planning on the assumption that this will be a recurrent reduction in Public Health funding. Savings plans are being developed to make the necessary savings within the current financial year. Discussions are being held with City Managers and Portfolio Holders where the savings proposals impact other areas of HCC. Work is ongoing with colleagues within HCC and the CCG to manage and mitigate the property risk.

5.2.4. Finance Comments:

The issues relating to this budget have been explored at some length. Until the national consultation has reached an outcome over how Hull’s share of the £200m cut is to be set, and the relevant decision maker(s) have decided how that is to be achieved locally, there clearly remains a degree of challenge and risk in balancing the budget.

5.3. City Adult Social Care

5.3.1. Summary Service Position.


£62.188m £3.100m adverse No Change


A projected budget gap of c£7.0m was identified in the ASC budget for

15/16 during the budget setting process. A programme of cost

reduction measures was approved by Cabinet to address this shortfall.

Whilst not all of these measures have proven to be deliverable (the

original programme was c£6m), other factors have been identified

which improve the position (eg adverse impact of Care Act less than

originally forecast). Consequently the projected shortfall reported to

Informal Cabinet / CST in June was c£1.3m.

The period 3 position relied on savings being achieved which subsequent monitoring has shown will be delayed. The main issues identified are as follows: Page 180 of 268

5

• Complex Care Reviews-The pace that we have been able to implement the complex care accreditation and undertake case reviews means that cost reductions from the Complex care accreditation process has not been realised. The budget expectation was £2.4m. Challenges from the three main providers and their delay in engaging with the accreditation process along with delays in carrying out case reviews (a resourcing issue) and getting cases through the Independent Review Panel now means that only c£650k will be realisable in the year – creating an additional pressure of c£1.8m;

• Delays in the realisation of cost reductions as a result of the Home Care tender- £900k was assumed as the “benefit” in-year from the Home Care retender. Complications with the Electronic Call Monitoring tender have meant that the new arrangements for Home care will not be in place until November – Only £300k will now be realised creating an additional pressure of c£600k; and

• Increasing pressures on residential care budgets of c£0.7m- Since April 2016 we have seen a 40% increase of people with significant physical disabilities entering permanent residential care, we have also seen an unprecedented increase in discharge from Hospital admissions into short stay which result in becoming permanent residents (96 since April 15). The impact is to increase the projected ASC deficit by £1.8m to £3.1m

A number of steps have been taken to mitigate, including:

• Review of 28 day notice period for Continuing Health Care when health are withdrawing funding and clawing money back where appropriate;

• Review of Home Care Packages to remove non-essential personal care support and any packages where 2 or more callers;

• Reducing short stay placements moving into permanent placements by 50% by providing intensive daily support from targeted social work support; and

• Recharge health for Continuing Health Care fully funded equipment. This projection however continues to assume that c£2.5m savings will be realised from the approved Cost Reduction Programme in 2015/16 (as reported to CST/Cabinet in June), and that the Government does not claw back any grant funding from local authorities in respect of the Care Act following the decision to delay implementation of key features of the Act like the introduction of the Care Cap. If any adverse movement takes place on these issues, the position will be even more challenging.

5.3.3. Finance Comments: The projected overspend is substantial, and there is also a level of risk with the programme of measures required to achieve this mitigated position. Clearly this projection is not compatible with the

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6

MTFS expectations and there will need to be a sustained focus on taking the necessary actions described by the City Manager. .

5.4. City Regeneration & Policy



£4.912m £0.003m favourable £0.001m adverse


Planning Development Management income forecast to achieve target, income to date includes 95k fees for Green Port. Income pressure remains for Humber Field Unit, Conference Bureau and Managed Workspace Centres which are presently mitigated by in year (15/16) vacancy savings. Report includes managing pressure for vacancy management savings.


Based upon our dialogue with the City Manager and Assistant City Managers where relevant and our understanding of the underlying financial issues facing the service, the City Manager’s forecast appears to be broadly in line with MTFS expectations.

5.5. City Property & Assets



£8.559m No variance expected No change


The forecast budget position for the end of period six (September 2015) shows a forecast out turn for the year as a balanced budget. However sat behind the estimates is a series of assumptions and risks which will be monitored and reviewed over the next quarter. There are a number of principle areas of risk to achieving this position - as follows: a) income from the letting of commercial units - whilst this has shown improvement over the last couple of years we continue to push to increase the levels of rental income and occupancy across the estate over and above out turn for the last financial year b) NPS - the level of anticipated profit share is higher than the budget target as a result of the significant forecast increase in capital expenditure in year arising from projects being implemented by the Council in support of City of Culture. NPS are reporting that the first quarters out turn figures are consistent with projections which is reassuring however there are concerns over whether this will continue across the full year as workflow reduces from capital investment projects and Page 182 of 268

7

c) savings arising from the rationalisation of corporate buildings (target £1.75m) - whilst good progress has been made in terms of realising a proportion of the savings there are still risks concerning the disposal of surplus buildings as the market for vacant property continues to be weak and transactions difficult to secure, d) there is continuing pressure on resources so far as repairs and maintenance is concerned as the Council continues to address a considerable back log maintenance liability and finally e) as we enter the winter quarter there is a risk that inclement weather and cool temperatures may lead to the need to additional spend in terms of heating and electricity over and above last year’s consumption.


Whilst a nil variance is forecast there are significant savings within the budget which still have to be realised, which poses a significant risk. Given the level and number of risks raised by the City Manager and that half the year has now passed, his ability to achieve the forecast outturn position that he is predicting seems to be questionable.

5.6. Major Projects and Infrastructure



£0.921m No variance expected No Change

5.6.2. City Manager Comments

At this point of the year we are on course to deliver a balanced budget.


Based upon our dialogue with the City Manager and Assistant City Manager and our understanding of the underlying financial issues facing the service, the City Manager’s forecast appears to be in line with MTFS expectations.

5.7. Chief Executive



£0.545m No variance expected £0.019m favourable

5.7.2. City Manager Comments

At this point in the year no variance is expected


Based upon our dialogue and our understanding of the underlying financial issues facing the service, the forecast made appears to be broadly in line with MTFS expectations.

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8

5.8. City Customer Services






£0.525m nil £0.525m


5.8.3. City Manager Comments: No variance is expected.

5.8.4. Finance Comments: Based upon our dialogue with the City Manager and Assistant City Managers where relevant and our understanding of the underlying financial issues facing the service, the City Manager’s forecast appears to be in line with MTFS expectations.

5.9. City Streetscene



£24.505m £0.984m adverse £0.187 favourable



£0.784m £0.254m £0.530m


5.9.3. City Manager Comments: Streetscene’s outturn forecast at period six is circa £1m above budget. It is assumed that circa £125k of harmonisation costs for - Parking Enforcement (Vinci) and Environmental Services (Continental) will be funded corporately. The service is anticipated to perform well against income targets (accepting that key areas of Trade Refuse and Vehicle Parking operate in competitive markets, so making realisation of anticipated income not without risk). However, the net projected overspend is fundamentally attributable to:

• Underlying pressures carried forward from 2014/15;

examples include - high sickness levels within Refuse

Collection necessitating the use of agency staff to deliver this Page 184 of 268

9

key frontline service, high transport costs and winter

maintenance costs projected to be similar as 2014/15.

• A reduction in Waste Disposal budgets in line with contract

negotiations / approved 2015/16 savings (which previously

partly mitigated financial pressures).

• A number of applied savings 2015/16 which are not

considered realisable; examples include - a reduction of

overtime budgets that did not allow for essential out of hours

services for responses to incidents and emergencies and full

year impact of flexible working that has been delayed by

protracted negotiations with the trade unions.

Savings plans, not themselves without risk, are being progressed. Streetscene will continue to press to close this financial gap wherever possible. Cost Control / Savings Plans.

• The production of “radical options” paper, to seek to meet the

budget envelope over time, is being compiled by

Streetscene’s Management Team. CST approval and political

sanction will be required to implement.

• A briefing note on zonal working is being produced for the

Leader. The introduction of this system is anticipated to

reduce reliance on overtime, but is considered too early to be

reflected in the above projection.

• A review of our Refuse Collection Service to generate

capacity by extending our internal pool of staff & so reduce

the need for agency costs is expected to be finalised by end

August; the anticipated impact of this is factored into the P6

projection.

• Sickness is closely monitored, & alongside HR colleagues, a

process to improve application of Policy is in development.

• Actions to combat incidents of severe weather are informed

by regular reports from the Met Office.

• Human Resources are leading on negotiations with the Trade

Unions with a view to reach a collective agreement on further

revisions to the “Standby & Call Back” scheme implemented

01/02/15.

• Streetscene regularly reviews analysis of key payroll

information to allow for internal challenge & ensure that only

essential &/or rechargeable discretionary overtime is worked

post appropriate authorisation.

• Streetscene regularly reviews analysis of vehicle & plant

costs & returns them as soon as efficiencies allow.

• Fuel prices are regularly monitored.

• Non pay spend reports are produced to allow for internal

challenge & inform financial returns. Page 185 of 268

10

Risk The delivery of the range & nature of Streetscene’s services within a budget envelope unavoidably carries a degree of inherent risk. E.g.

• The level of success of our ongoing plans / actions to mitigate

recycling contamination (and therefore costs) will be a key

factor in Streetscene’s outturn position and will be kept under

review. The worst case scenario is a further £300k pressure.

• Contracts vs Budgets that are inconsistent – St Lighting.

• Service provision below a desired standard will likely drive an

increase in customer claims and complaints; it also conflicts

with our green city aspiration, protection of our investment in

the public realm and further plans for the City of Culture.

5.9.4. Finance Comments: Given the significant pressures faced by the service a projected overspend at this stage of the year does not feel surprising but is clearly not in-line with MTFS expectations. There is also a level of risk with the programme of measures required to achieve this mitigated position. As at period six no charges for fleet costs had been paid to KWL and as a result no charges for passenger transport had been made to the two largest customers, Children’s and Adults services. Some invoices have been paid in the current month so it is expected that the users will start to be charged, enabling them to forecast their position on this activity.

5.10. City Neighbourhoods and Housing






£0.103m £0.103m nil


5.10.3. City Manager Comments: There is now no projected overspend which is a slight improvement on August, as some vacancies are now being held. Risks still remain in relation to spend on bed and breakfast which is currently expected to be £0.020m over budget. Work with partner organisations continues to ensure that a range of options is available to assist with temporary housing. Page 186 of 268

11


5.11. City Treasurer






£0.210m £0.110m £0.100m


5.11.3. City Manager Comments: No variance is being forecast at present.

5.11.4. Finance Comments: Based upon our dialogue with the City Treasurer and Assistant City Managers were relevant and our understanding of the underlying financial issues facing the service, the City Treasurer’s forecast appears to be in line with MTFS expectations.

5.12. City Human Resources



£2.048m £0.115 unfavourable £0.010m favourable



£0.041m £0.041m nil


5.12.3. City Manager Comments: There is a forecast variance at the present time. A forecast overspend due mainly to not being able to achieve vacancy factor but there has been some offset underspend in supplies and services to reduce this figure.

5.12.4. Finance Comments: The position reported is subject to further review and there may be an improvement from this reported position. Page 187 of 268

12

5.13. Town Clerk






£0.280m £0.240m £0.040m


5.13.3. City Manager Comments: It is anticipated that the budget over the year will remain in balance.


5.14. City Children Safeguarding



£33.803m £1.491m adverse No Change


The position reflects a continued base pressure of 1.4m, reduced with assumption of CCG income and expected to reduce further with other additional income. In addition, the service continues to respond to demand pressures and the need to use agency staffing to cover vacancies because of the need for continuity in front line teams and the volume of workload. Caseloads remain 'too high' in Ofsted's terms and effecting change in the number of referrals will take time but is expected as a result of developments in early help. To mitigate the staffing pressures, an 'internal pool' has been created which will reduce agency staffing spend; in addition a rolling programme of recruitment reduces the selection and recruitment process to a minimum. The placement review is an ambitious programme to reduce reliance on external placements by negotiating reduced costs and brokering local packages and increased contributions. There has been some limited progress in securing CCG contributions. At this point the assumption is that further progress will be achieved. This has yet to yield financial benefit at this stage in the year. There are plans for 11 children identified for transition to family based placement from residential agency. Three have moved successfully. This month there is good confidence that the remaining children will be moved. Costs of placements have also been reduced. Transport spend on LAC is within the scope of the non-pay review

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13

and it is hoped this will have a bearing on the projection within year. The post-Ofsted improvement plan aims to secure a 'good' judgement at the next inspection; it is imperative that there is continuing focus on safeguarding, both operationally and reputationally including emerging pressures like Child Sexual Exploitation.

5.14.3. Finance Comments: Given the significant pressures faced by the service a projected overspend at this stage of the year does not feel surprising but is clearly not in line with MTFS expectations. There is also a level of risk with the programme of measurers required to achieve this mitigated position.

5.15. City Learning



£2.971m £0.002m favourable No Change


There are a number of senior vacancies in the management team. Any projected savings here are possibly going to needed to offset a likely overspend on home to school transport. A detailed piece of work is currently underway to establish a robust position.

5.15.3. Finance Comments: Based upon our dialogue with the City Manager and Assistant City Managers were relevant and our understanding of the underlying financial issues facing the service, the City Manager’s forecast appears to be in line with MTFS expectations.

5.16. Citysafe & Early Intervention



£5.686m £0.003m favourable No change



£0.638m £0.638m nil


5.16.3. City Manager Comments: We are currently reporting a neutral position on the overall budget across the services and will continue to monitor very closely.

Page 189 of 268

14


5.17. Leisure Commissioning





The current forecast is for a balanced budget however the theatres and halls income is a risk which will be closely monitored throughout the year. The potential impact of closures as part of visitor destination programme will be reported in future periods as the position emerges.


Based upon our dialogue and our understanding of the underlying financial issues facing the service, the forecast being made appears to be in line with MTFS expectations.

5.18. Savings Delivery

5.18.1. The delivery of the Councils revenue budget for the year is underpinned by the achievement of savings by services. Appendix C details the service specific savings. The services have indicated on there, their view on their ability to deliver these savings along with explanations from the relevant City Manager on the progress of delivery of each saving. The view shown is consistent with the overall position reported in this note.

5.18.2. In addition to the service specific savings there are a number of cross

cutting and major transformational savings as listed below and shown at Appendix C. The delivery plans associated with these savings are progressing but this has highlighted a risk of delayed delivery of some of these savings totalling £3.020m in the current fincial year. Actions required to mitigate this will be reported in future periods as the position emerges.

Description of Saving Saving £’000

Delivered £’000

In Progress £’000

Cross Cutting Saving

Procurement Savings 500 350 150

Reduce Staffing Costs 520 520

income uplift 720 720

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15

Major Transformational Savings

Integration between HCC and CCG 200

200

Transport 1,280 1,280

Service Support 624 624

Customer Enablement 540 540

ACFS System Refresh 800 800

5.19. Schools DSG



5.19.1. While monitoring is undertaken on the schools budgets, any variance

is transferred to or from Schools Reserves to be used in future years so no overall net variance against the budget will arise.

5.20. Corporate Budgets



5.20.1. There is no variation currently forecast for corporate budgets, budgets

continue to be monitored monthly and variations will be reported as and when they are identified.

5.20.2. There remains the £2.900m in the savings delivery risk contingency which is being retained for possible distribution later in the year if necessary. The table at 5.1.2 shows the position if this is applied.

5.21. Month by Month and Previous Years Comparison.

5.21.1. The following table shows the forecast directorate position on a monthly basis for the current year to date and the position for the previous four financial years. As the series of briefing notes has progressed in previous years it has been worth considering how trends in forecasting have been echoed month on month. The past cannot predict the future and at present it appears that this historical trend of steadily reducing forecast overspends may not be replicated in the same way this year.

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16

5.22. Housing Revenue Account

5.22.1. Summary Directorate Position. The following table presents the position for the Housing Revenue Account (HRA) and shows a forecast use of £11.616m of reserves, £0.809m less than budget, this is an improvement of £0.627m from the last reported position.

Full Year

Budget

Forecast

Outturn

Forecast

Variance

Percent

Variance

Previous

Period

Variance

Change

Between

Periods

£'000 £'000 £'000 % £'000 £'000

Employees 11,194 11,229 35 0.3% - 17 52

Premises 24,788 24,500 - 288 -1.2% - 104 - 184

Transport 160 150 - 10 -6.3% - 24 14

Supplies & Services 9,479 9,655 176 1.9% - 37 213

Transfer Payments 40 40 - 0.0% - -

Capital Charges 66,135 66,135 - 0.0% - -

TOTAL EXPENDITURE 111,796 111,709 -87 -0.1% - 182 95

Customer & Client

Receipts - 97,259 - 97,965 - 706 0.7% - - 706

Interest - 261 - 263 - 2 0.8% - - 2

Recharges - 1,851 - 1,865 - 14 0.8% - - 14

Contribution from

Reserves - 12,425 - 11,616 809 -6.5% 182 627

TOTAL INCOME 111,796- 111,709- 87 -0.1% 182 -95

NET EXPENDITURE 0 0 0 0.0% 0 0

-1.000

0.000

1.000

2.000

3.000

4.000

5.000

6.000

7.000

3 4 5 6 7 8 9 10 11 Outturn

Vari

an

ce £

m

Periods

Directorate variance by month

2011-12 2012-13 2013-14 2014-15 2015-16

Page 192 of 268

17

5.22.2. Current position As previously reported on the basis of the agreed budget the HRA is

expected to take a little less from reserves than originally budgeted, largely due to better than budgeted income. Work is ongoing to understand the impact of the Chancellor's emergency budget in July and this may impact on the HRA during the year. Any impacts will be incorporated later in the year.

5.23. Schools

Schools – the Dedicated Schools Grant The position on the 3 DSG blocks was considered by the Schools Forum at its recent meeting (25th September 2015) and is reflected in the comments below. Schools block: As reported to the Forum: Business Rates – backdated accounts are still being processed covering revaluations following the BSF programme. The current 2015-16 position is:- Original Budget : £0.350m Projected forecast: £0.884m In addition, a £0.411m deficit had been planned for in 2015-16 to accommodate increased Business Rates charges. The aim is to recover these costs from the 2016-17 Schools block settlement. However, given the requirements of the minimum funding guarantee for schools, it may take a further year to return to a balanced budget. High needs block: As reported to the forum:

2015-2016 Original: 2015-2016 revised:

£209,406 £1,205,312

Early Years block: As reported to the Forum:

2015-2016 original: 2015-2016 revised:

£0 £250,579

As has been previously reported, the cost pressures arising from the need to ensure a viable hourly rate for providers and the increase in the national minimum wage – necessitate review of all expenditure in this block .

5.24. Staffing Establishment and Vacancies

5.24.1. The employee budget; the number of posts and the current number of vacancies per service and directorate are shown at Appendix B.

5.24.2. The approved budget assumes a level of staff turnover and each

service has a vacancy management target within their budget. The result is staffing budgets that are below the cost of the establishment and managers are required to monitor their staffing levels to ensure they remain within the reduced budget. A number of City Managers have referred in their monitoring narratives to difficulties in achieving that outcome. In addition, some services are externally funded, or

Page 193 of 268

18

have income expectations attached to posts, so the post being empty will result in reduced external income, a net nil impact on the service, but no saving to the Authority. The result of this is that despite having vacancies, there may not be corresponding underspends being reported. In addition, when services are in the process of reorganising their structures, some positions will appear on the Oracle system twice and will inflate the number of vacancies showing on the system. This resolves itself as the restructure progresses, people are appointed to the new roles and the old posts are deleted from Oracle.

5.24.3. The table at Appendix D shows the recruitment statistics for the year to date and details the number of posts appointed to and the split between internal and external appointments.

5.25. Agency Staff

5.25.1. To enable essential services to continue to be delivered to customers

there is a reliance on external agency staff to cover when certain members of staff are absent. This is predominantly to cover sickness and other staff absences; Appendix B shows the cost of providing this cover by service.

5.26. Medium Term Financial Plan

5.26.1. The ability of the Council to deliver its service within its funding

envelope is critical to maintaining financial integrity. The General Fund overspend reported here follows trends in recent years where the early rounds of monitoring show a significant level of forecast overspend. Previously the forecast overspend has reduced over time as mitigating actions result in a reduction in adverse variances. There remains a need for managers to continue to reduce their forecasts through to the end of the year. Where Services are reporting pressures that have been mitigated in previous years there is an expectation that similar action will be taken in the current year. Following successive years of acute financial pressure presumably these mitigating actions will become more difficult to sustain and have a more significant service impact when they are put in place.

5.27. Prospects for the Year

5.27.1. General Fund

There is a forecast net overspend of £5.683m within service budgets, in additional there is a risk to the delivery of £3.020m of the major transformational savings. In mitigation there remains £2.900m of the managing savings delivery risk contingency. This is the fourth reported position for the current financial year. There remains the expectation of managers to deliver their savings and take mitigating action to deliver their service within the resources provided, or as to both at that level can be safely managed.

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19

5.27.2. Housing Revenue Account

The forecast is that the HRA will take £11.616m from balances, which is an improvement both on the position assumed in the budget and the last reported position. The implications of the Chancellors Budget Statement and the Draft Welfare Reform & Work Bill published in July are being explored and reported in future periods.

5.27.3. Schools

The schools position is reflected so that the Council may be confident that its wider financial support and leadership roles are being satisfied. Balances remaining at the end of the financial year are carried forward for schools to use in the next and future years, whether that is a favourable or adverse balance

6. Performance Update

The second quarter, 2015-16, Corporate Performance Monitoring will be reported to this committee in December.


The slightly improved financial position is noted. However, against this it is noted that there has been limited progress against cross-cutting savings target. While in the current year contingency is available to cushion the impact of implementation of the savings, such contingency is a one off provision and it will be necessary to deliver the savings within the current year.

8. Comments of the Section 151 Officer

The Section 151 Officer is the Author of the report.

9. Comments of HR City Manager and compliance with the Equality Duty

The budget position is noted. In particular that staffing costs are projected to be below the budgeted level due to the high percentage, 7.13% vacancies being held. There are no equality issues arising from the financial reporting position.


This report is due to be considered by the Finance and Value for Money Overview and Scrutiny Commission on Friday, 20 November, 2015. Any comments or recommendations agreed by the Commission will be tabled at November Cabinet for consideration. (Ref. Sc Sc4592)

11. Comments of the Portfolio Holder

To be provided at the meeting.

Page 195 of 268

20

12. Conclusions of the Section 151 Officer

12.1.1. The services are reporting a likely overspend of £5.803m which is disappointing and not sustainable. Following discussions at an earlier meeting of this group, mitigating actions to help improve the position will be implemented.

12.1.2. The Medium Term Financial Strategy (MTFS) highlights the financial

pressures facing the Council in future years. It remains imperative that services and City Managers exercise strict budgetary control through 2015-16 to minimise the risk of having to call on reserves to absorb any overspending in this financial year.

12.1.3. The HRA budget is not a matter for concern in the current financial

year subject to the impact of the Chancellors Budget Statement currently under review. The potential implications to the HRA in the longer term were the subject of briefings to all elected Members at the beginning of October 2015

12.1.4. The schools’ position will remain under review.

12.1.5. This is the second formally reported position presented to Members

during 2015-16. Members will receive a subsequent quarterly report showing the latest forecast outturn position.

Brendan Arnold

Director of Resources & City Treasurer (Section 151 Officer) Contact Officers: Brendan Arnold Telephone No: (01482) 614812 Officer Interests: None

Background Documents: - Summary information extracted from Chameleon.

Page 196 of 268

21

Implications Matrix


Yes


Yes


Yes


Yes


Yes


Yes


n/a


n/a


n/a


n/a


n/a


Yes

Page 197 of 268

Page 198 of 268

2015/16 BUDGET MONITORING SUMMARY Appendix A

BUDGET LINE BudgetBudget

to Date

Actual to

Date

Profiled

Variance

Owners

Forecast

Owners

Forecast

Variance

%

Variance

Previous

Period

Variance

Change

Between

Periods

Employees 120,376 60,255 60,386 131 119,790 -586 -0.49% -262 -324

Premises 30,614 16,068 14,944 -1,124 31,173 559 1.82% 136 423

Transport 10,127 5,067 1,760 -3,307 11,051 923 9.12% 885 38

Supplies & Services 82,647 41,712 39,853 -1,859 84,454 1,807 2.19% 1,925 -118

Third Party Payments 82,260 42,984 47,322 4,338 85,595 3,338 4.06% 3,635 -297

Transfer Payments 8,747 4,373 3,736 -637 8,697 -50 -0.57% -36 -14

Capital Charges 78 3 0 -3 78 0 0.00% -2 2

TOTAL EXPENDITURE 334,849 170,462 168,001 -2,461 340,837 5,992 1.79% 6,281 -289

Government Grants -26,672 -9,811 -10,148 -337 -25,904 768 -2.88% 1,068 -300

Other Grant Reimbursements -23,395 -11,575 -8,831 2,744 -24,431 -1,036 4.43% -1,243 207

Customer & Client Receipts -44,859 -21,944 -19,671 2,271 -45,357 -498 1.11% -846 348

Interest -75 -37 0 37 -73 1 -1.53% 4 -2

Recharges -28,360 -12,619 -11,422 1,197 -28,135 225 -0.79% 756 -531

Departmental Recovery -7,161 -1,497 -285 1,212 -6,927 234 -3.27% 26 208

TOTAL INCOME -130,521 -57,483 -50,357 7,124 -130,827 -309 0.24% -236 -73

NET EXPENDITURE 204,328 112,981 117,644 4,663 210,011 5,683 2.78% 6,042 -359

SERVICE BudgetBudget

to Date

Actual to

Date

Profiled

Variance

Owners

Forecast

Owners

Forecast

Variance

%

Variance

Previous

Period

Variance

Change

Between

Periods

City Health & Wellbeing 27,854 12,505 11,566 -939 27,854 0 0.00% 0 0

City Adults Social Care 62,188 32,547 38,692 6,145 65,288 3,100 4.98% 3,100 0

City Regeneration & Policy 4,912 2,797 1,423 -1,374 4,909 -3 -0.06% -4 1

City Property & Assets 8,559 6,630 5,322 -1,308 8,559 0 0.00% 0 0

Major Projects 921 3,421 2,954 -467 921 0 0.00% 0 0

Chief Executive 545 278 270 -8 545 0 0.00% 19 -19

City Customer Services 6,424 4,962 4,587 -375 6,425 0 0.00% 110 -110

City Streetscene 24,505 12,430 11,444 -986 25,489 984 4.01% 1,171 -187

City Neighbourhoods & Housing 2,383 1,301 578 -723 2,383 0 0.02% 35 -35

City Treasurer 11,048 5,524 6,758 1,234 11,049 0 0.00% 0 0

City Human Resources 2,048 1,030 1,157 127 2,163 115 5.62% 125 -10

Town Clerk 5,264 2,469 2,701 232 5,264 0 0.01% 0 0

City Children Safeguarding 33,804 16,868 20,548 3,680 35,295 1,491 4.41% 1,491 0

City Learning 2,971 1,868 1,551 -317 2,969 -2 -0.06% -2 0

CitySafe & Early Intervention 5,686 3,823 3,959 136 5,683 -3 -0.06% -3 -0

Leisure Commissioning 5,217 4,528 4,134 -394 5,217 0 0.00% 0 0

Service Total 204,328 112,981 117,644 4,663 210,012 5,683 2.78% 6,042 -359

Savings Delivery

Transport -1,280 -100 1,180 0 1,180

Service Support -624 -124 500 0 500

Customer Enablement -540 0 540 0 540

ACFS Refresh -800 0 800 0 800

Schools Block 107,375 107,375 0 0 0

Corporate Items -308,459 -308,459 0 0 0

Managing Savings Delivery Risk

Contingency (not yet allocated)-2,900 -2,900 0 -2,900

Authority Total 0 5,803 5,803 6,042 -239

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2015/16 BUDGET MONITORING SUMMARY - Staffing Table Appendix B

SERVICE Budget Number of

Posts

Number of

Vacancies Vacancies

2014-15

Comparator

Vacancies

£'000's FTE FTE % %

City Health & Wellbeing 4,149 103.51 5.00 4.83% 5.70%

City Adults Social Care 24,167 810.90 82.96 10.23% 7.16%

City Regeneration & Policy 5,360 130.99 7.46 5.70% 4.22%

City Property & Assets 6,821 457.37 17.69 3.87% 4.63%

Major Projects & Infrastructure * 866 41.68 9.68 23.22% 0.00%

Chief Executive 545 6.00 - 0.00% 0.00%

City Customer Services 9,374 371.02 28.94 7.80% 6.24%

City Streetscene 15,601 624.97 31.96 5.11% 10.36%

City Neighbourhoods & Housing * 2,601 440.66 21.75 4.94% 3.93%

City Treasurer 7,450 223.49 11.49 5.14% 4.77%

City Human Resources 2,227 63.47 2.81 4.43% 3.15%

Town Clerk 4,822 106.67 5.00 4.69% 2.28%

City Children Safeguarding 18,965 538.05 43.70 8.12% 8.82%

City Learning 10,338 390.71 32.84 8.41% 10.32%

CitySafe & Early Intervention 7,089 228.27 22.11 9.69% 6.63%

TOTAL ALL SERVICES 120,376 4,537.76 323.39 7.13% 7.98%

Notes

2) Major Projects & Infrastructure are currently recruiting staff to deliver the visitor destination programme.

SERVICE

External

Agency Staff

Costs (year

to date)

External Agency

Staff Costs (to

same period

2014/15)

£'000's £'000's

City Adults Social Care 273 90

City Regeneration & Policy 5 74

City Customer Services 9 0

City Streetscene 336 174

City Treasurer 6 0

Town Clerk 1 7

City Children Safeguarding 805 730

TOTAL ALL SERVICES 1,435 1,075

3) The City Neighbourhoods and Housing FTE's and vacancies figures include the Housing Revenue

Account.

1) While staffing reorganisations are on going, The Oracle database will contain duplicate posts, one will be marked

as filled, the new post will be marked as a vacancy. Once the reorganisation is complete the new posts are filled and

the old posts are deleted.

Where a service is not shown in the table above it is because they have not incurred any agency costs this year or

last.

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MTFS - Service Specific - Monthly Highlight Report Summary Appendix C

Sep-15

Ref Lead Officer Title: Current Stage Status 2015/16 Savings Profile

Target Delivered In Progress

MTFS1 Andy Brown Revenues and Benefits - Future Options Delivery R 525 - 525

MTFS2 Andy Burton Bus lane charging Delivery A 50 - 50

MTFS3 Andy Burton General reduction in Expenditure / Increase in income Completed G 50 50 -

MTFS4 Andy Burton Park and ride Completed G 130 130 -

MTFS5 Andy Burton Fuel Saving (Previously Highways Reactive Budget) Idea R 200 - 200

MTFS6 Andy Burton Street Scene trading account Delivery R 180 - 180

MTFS7 Andy Burton Vehicle Reductions Idea R 100 - 100

MTFS8 Andy Burton Waste collection policy and charging Completed G 74 74 -

MTFS9 Brendan Arnold Charges for support to major projects Completed G 110 110 -

MTFS10 Ian Anderson Increase Legal capacity & bring in-house insurance work Completed G 200 200 -

MTFS11 Ian Anderson Removal of colour printing facility Delivery A 80 40 40

MTFS12 Jacqui Blesic HR - reduce non pay budgets Completed G 41 41 -

MTFS13 Brendan Arnold Industrial relations Feasibility R 100 - 100

MTFS14 Laura Carr Gypsy site - electricity income Completed G 30 30 -

MTFS15 Laura Carr Housing general fund -reapportion property maintenance costs Completed G 73 73 -

MTFS16 Tracey Harsley Alternative options re use of school facilities Completed G 250 250 -

MTFS17 Tracey Harsley Children's centres Completed G 200 200 -

MTFS18 Tracey Harsley Sexual health services Completed G 188 188 -

MTFS19 Trevor Todd Staff review public protection and income generation Delivery A 80 65 15

Totals 2,661 1,451 1,210

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MTFS - Cross Cutting Savings - Monthly Highlight Report Summary

Ref Lead Officer Title: Current Stage Status 2015/16 Savings Profile

Target Delivered In Progress

£'000 £'000 £'000

MS1 Andy Burton Transport Business Case R 1,280 - 1,280

MS2(a) Julia Weldon Integration between HCC and CCG (ASC) Feasibility A 160 - 160

MS2(b) Tracy Harsley Integration between HCC and CCG (CYPFS) Feasibility A 40 40

MS3 Ian Anderson Procurement savings Delivery A 500 350 150

MS4 Jacqui Blesic Reduce staffing costs (agency / overtime / sickness) Completed G 520 520 -

MS6 Brendan Arnold Income uplift 2015-16 Completed G 720 720 -

MS7 Mark Leighton Service Support Feasibility A 624 - 624

MS8 Andy Brown Customer Enablement and Empowerment Business Case A 540 - 540

MS9 Mil Vasic ACFS System Refresh Business Case R 800 - 800

Totals 5,184 1,590 3,594

Grand Totals 7,845 3,041 4,804

Major Projects Programmes - Visitor Destination - Monthly Highlight Report Summary

Ref Lead Officer Title: Current Stage

MP1 Garry Taylor City Centre Public Realm Delivery

MP2 Garry Taylor New Theatre- Retrofit & Wider Regeneration Feasibility

MP3 Garry Taylor Improved Museum Offer / Ferens Art Gallery Feasibility

MP4 Garry Taylor Pearson Park Heritage Investment Feasibility

MP5 Garry Taylor Beverley Road Heritage Investment Feasibility

MP6 Garry Taylor Repurposing the Old Town - Market Refurbishment Delivery

MP7 Garry Taylor Woodford Pool Extension Feasibility

MP8 Garry Taylor Hotel, Music & Events Arena Feasibility

MP9 Garry Taylor City Centre Riverside Berth/Cruise Terminal Feasibility

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Business Change Programmes - Monthly Highlight Report Summary

Ref Lead Officer Title: Current Stage

MC1 Nick Howbridge One Hull Property Rationalisation Programme Business Case

MC2 Nick Howbridge Property Investment Strategy Feasibility

MC3 Nick Howbridge Flexible Working Strategy Feasibility

MC4 Alison Barker Adult Social Care Cost Reduction Programme Feasibility

MC5 Malcolm Relph Hull and Humber Shared Services Review Feasibility

MC6 Mark Leighton Rightsizing Resources Idea

MC7 Gary Ventress VOIP Telephone System Delivery

MC8 Gary Ventress Software Upgrade and Virtual Desktop Roll-out (VDI) Delivery

MC9 Gary Ventress Service Virtualisation Delivery

MC10 Jon Plant Children and Families Services - Placement Review Feasibility

MC11 Tracy Harsley Children and Families Services - Non-Pay Review Feasibility

MC12 Tracy Harsley Service Review - Youth Support Feasibility

MC13 Mil Vasic Service Review - Joint Commissioning SEND Feasibility

MC14 Jon Plant Service Review - CONTACT (Parents / Children) Feasibility

MC14 Jon Plant Service Review - Fostering through Digital Engagement Feasibility

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2015/16 BUDGET MONITORING SUMMARY - Recruitment Statistics Appendix D

Internal External Simultaneous Total

2013/14 Total 268 51 46 365

2014/15 Total 310 125 23 458

April 18 11 - 29

May 33 16 - 49

June 35 14 - 49

July -

August Awaiting info -

September -

86 41 0 127

Public

Health

Regeneration

and Policy

City

ServicesResources

Children's and

Family

Services

Total

*2013/14 Total 46 19 82 26 192 365

2014/15 Total 107 77 113 22 139 458

April 2 7 4 3 13 29

May 7 8 12 4 18 49

June 9 2 12 2 24 49

July -

August Awaiting info -

September -

232 171 254 53 333 1,043

Public

Health

Regeneration

and

Partnerships

City

ServicesResources

Children's and

Family

Services

Total

*14 10 54 12 62 152

10 3 49 2 17 81

24 13 103 14 79 233

59 43 86 8 76 272

35 27 100 5 45 212

94 70 186 13 121 484

April Internal 3 2 7 1 3 16

External - - - - 2 2

May Internal 4 - 1 2 16 23

External - - 1 - 1 2

June Internal 2 - 2 - 3 7

External 2 - 1 1 3 7

July Internal -

External -

August Internal Awaiting info -

External -

September Internal -

External -

9 2 10 3 22 46

2 0 2 1 6 11

11 2 12 4 28 57

Note *; In the 2013-14 comparator figures, the Children's and Family Service figures include Adults Social Care and

Public Health excludes Adult Social Care.

Adverts Processed

Adverts Processed

Appointments Made

2014-15 Internal Appointment

2013-14 Internal Appointment

2013-14 External Appointment

Total Adverts Processed

Total Adverts Processed

Total Internal Appointment

Total External Appointment

Total Appointments

2014-15 External Appointment

2014-15 Total Appointments

2013-14 Total Appointments

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Report to Cabinet 23rd November 2015 Wards: Southcoates East

Use of Compulsory Purchase Orders Where Land Cannot be Acquired by Voluntary Agreement Preston Road Renewal Area

Report of the City Neighbourhoods & Housing Manager

1. Purpose of the Paper and Summary

1.1. This report establishes the potential need to use Compulsory Purchase Order powers to secure ownership of properties/titles to deliver the regeneration aspirations of the Council within the Preston Road renewal area in east Hull.

1.2. The report confirms that Compulsory Purchase may be required to finalise the acquisition of the privately owned interests including land and property in the area allocated for acquisition and demolition in the Preston Road Renewal Area. It proposes delegated authority for the timing and making of Compulsory Purchase Orders (CPOs) for the acquisition of properties and rights over land required to assist in the delivery of these regeneration objectives where these cannot be acquired by agreement.

2. Recommendations

2.1. That Cabinet support the making of a CPO to acquire the final remaining property, holdings and rights needed for the scheme shown on the plan in Appendix 1 known as Phase 1A Preston Road.

2.2. That subject to the grant of Outline Planning Consent for the Renewal Programme, that Cabinet provide, in principle support for the making of CPOs to facilitate the acquisition of properties within the Preston Road Renewal Area identified at Appendix 2, in support of Council’s regeneration priorities;

2.3. That negotiations commence or continue with all those having interests in the properties affected by the CPOs in order to secure acquisition by agreement;

2.4. That the timing and making of all CPOs approved under 2.1 be delegated to the City Manager Neighbourhoods and Housing in consultation with the Town Clerk, Portfolio Holder for Housing and Ward Councillors (or subsequent post holders);

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2.5. The Town Clerk be authorised to withdraw properties or land from any of the CPOs where agreement has been reached to acquire all interests, and;

2.6. The Town Clerk be authorised to confirm any CPO where directed by the Secretary of State.

This is non-key decision

3. Reasons for the Recommendations

3.1 Without the option to use compulsory purchase powers for interests that cannot be secured through voluntary agreement the Council will be left with an incomplete area of clearance. The Council would therefore not be able to deliver its contractual obligations as part of the Council’s Lead Developer partnership.

4. Impact on other Executive Committees including Area Committee

4.1. The acquisition and demolition programme has been confirmed by

Cabinet, in April 2013. The report “Funding and Investment for Housing Renewal Programmes within the Holderness Road Corridor 2013” was considered and the decision made, coupled with £11.2m in funding secured for the area through the Housing Revenue Account and General Fund, secures the demolition of 489 Wingets in the Preston Road area.

4.2. Approval has been given to acquire the privately owned interests and rights in the area and the request for Compulsory Purchase Order powers to be used means that the authority can deliver its contractual obligations to City Wide Lead Developer Partner, Keepmoat, Strata, Home Group and Priority Space (KSHP).

4.3. Therefore the impact for Area Committee is that, without the option to use compulsory purchase powers for interests that cannot be secured through voluntary agreement, the contractual obligations to deliver the land for redevelopment to the Council’s Lead Developer and the Council will be left with an incomplete area of clearance which cannot be redeveloped.

5. Background

5.1. The Holderness Road Corridor (HRC) Area Action Plan (AAP) was adopted by the Council in March 2011. The AAP sets out a 15-20 year regeneration framework for the HRC intervention area covering housing, green space provisions and facilities. The HRC AAP includes proposals to demolish poor quality housing in the Preston Road intervention area and to build new sustainable housing and facilities fit for the 21st century. The use of CPOs requested in this

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report is necessary to ensure delivery of the key proposals in these plans, providing a high quality housing market, improved environment and green spaces to improve the area with a view to retaining current residents and attract new residents to the Preston Road area.

5.2. The delivery of regeneration and the adopted AAP for Preston Road was originally achieved through the allocation of bespoke Housing Market Renewal (HMR) funding which was granted to identified areas of housing market failure known as ‘Pathfinders’. The delivery agency for the Hull and East Riding HMR Pathfinder was Gateway. Under the Gateway Programme a number of key development schemes in the Preston Road area were developed, including; Ellerby Grove and John Hadland Park. Further new build development of 78 units by Sanctuary Housing and 30 Hull City Council homes at Ganstead Grove has been delivered with the support of the Homes and Communities Agency. A further 67 homes are in construction at this site which commenced on site in the spring of 2015.

5.3. In order to facilitate further development the Council has pursued an active acquisition and demolition programme and which to date has secured the voluntary acquisition of seven privately owned properties and the relocation of 142 Council tenants. In order to support the relocation process the Council has developed a package of support which includes a dedicated team who assist residents in all tenures throughout their relocation experience.

5.4. In the active acquisition phases (Phases 1-2), there are 9 owner occupied properties left to acquire voluntarily and negotiations are ongoing. However, it is evident, that following 18 months of negotiations with the final owner occupied property in Phase 1A, that a CPO may be required to secure ownership of this property. In addition, there are 28 owner occupied properties in future phases of acquisition (Phases 3-5) in the Preston Road regeneration area


6.1. In 2014, the Council’s Housing Strategy and Renewal team undertook a procurement exercise for a City-Wide Lead Developer Partner which included the redevelopment works in Preston Road regeneration area. KSHP have been appointed as the successful citywide lead developer following the procurement exercise. In order to deliver certainty to the marketplace in terms of the Council’s ability to assemble land for development it will be necessary to secure a commitment for the use of CPO powers where necessary and prudent. Whilst every endeavour is being made to acquire properties voluntarily it is anticipated that several CPOs may be necessary to achieve full site ownership and to enable the renewals programme to

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proceed, subject to funding. CPOs will be required where the Council has not been able to acquire properties and rights by negotiated agreement with the owners, despite several stages of consultation and attempts to contact and negotiate with individual owners, and where such property and rights are required to facilitate the renewal programme. Relevant Portfolio Holders and Ward members will be consulted prior to the making of CPOs.

6.2. In order to assemble the land required for development moving forward, the Council still has to acquire one plot of land which is outlined in red on the plan at Appendix 1.

6.2.1. The property, No. 7 Holmpton Grove, is a semi detached property in Phase 1A and is in private ownership. All endeavours have been made by the Council and the Renewals Team to reach voluntary agreement with the owner. A transcript of all contact to date with the owner of No. 7 Holmpton Grove is detailed in Appendix 3 (which is not for publication).

6.3. If voluntary agreement is not achieved or no owner can be traced, it will be necessary to serve a CPO early 2016 so as not to jeopardise the delivery of mixed tenure housing that is proposed as part of KSHP’s development plan. The making of a CPO can take up to 18 months and negotiations will continue during this time to secure voluntary acquisition. However, should the Council not approve the recommended option outlined above this would affect the development of the whole area and potentially lose investment in the Preston Road area through new build housing.

6.4. The Council’s Cabinet on 20th May 2013 committed £11.2m for Preston Road (minute 6b refers) in order to deliver the acquisition and demolition of Council and privately owned properties and refurbishment of the remaining Winget properties in the Preston Road focus area. The funding is committed on a “spend to save” basis and is funded through the General Fund Capital and HRA Capital budgets.

6.5. The property listed in 5.2 forms part of the wider Renewal Programme area identified in the HRC AAP for Housing. Consultation with residents in the area is ongoing and there is a high level of confidence that most of the properties in these areas will be acquired by agreement, as has been the case in other areas. However it is inevitable that there will be a number of properties where, despite all efforts, acquisition by agreement will not be possible, and so it is likely that CPO powers will be required.

6.6. Compulsory Purchase Orders are supported by enabling legislation.

For the Preston Road Renewal Programme it is anticipated that powers under the Town & Country Planning Act 1990 will be utilised following the securing of planning consent across all phases. It is anticipated that KSHP will submit a planning application for the

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Preston Road site (Phases 1a – 5b) in 2016 and at this time, an Officer Authorisation record for the City Manager will be submitted for any CPO’s that may be required to complete the assembly of the land for redevelopment. The Town Clerk will advise the City Manager for Neighbourhoods and Housing on the most appropriate powers to use in the case of each CPO. The making and serving of any CPOs for the Renewal Programme will be funded through the Capital Programme.


6.1 Option 1: Do Nothing. This is not a viable option. If the Council fails to assemble and deliver vacant possession of Phase 1A on Preston Road for development then KSHP will be unable to re-develop the site for which the developer will secure planning permission.

6.2 The Council’s failure to assemble land in the wider Preston Road renewal area to facilitate development in line with the Council’s adopted Area Action Plan would also have a negative impact on external perceptions of the Council and its ability to deliver renewal programmes. This could adversely impact partnerships built to date with funding bodies such as Communities and Local Government and the Homes and Communities Agency (HCA).

6.3 In addition the properties included in the acquisition and demolition

programme on Preston Road are of Winget construction which are classified as “defective” and extensive reinvestment is required to prolong their life, making Option 1 of Do Nothing unviable. Local resident’s aspirations to see their neighbourhood redeveloped would also be frustrated.

6.4 Option 2: Pursue voluntary acquisition only. The Council will

make all efforts to acquire on the basis of voluntary acquisition; however, if the use of CPO powers is not agreed land assembly could be protracted and delayed by the failure to acquire by agreement. This is not a viable option for the reasons as outlined above. In addition, the Council would have to incur management costs for managing any properties it could not demolish, and for the management of the dereliction and anti-social behaviour associated with areas of high voids and empty properties. Local resident’s aspirations to see their neighbourhood redeveloped would also be frustrated.

6.5 Option 3: That Cabinet support the making of a CPO to acquire all property, holdings and rights needed for the scheme shown on the plan in Appendix 1 known as Phase 1A Preston Road and; support the making of CPO’s in order to support the Council’s regeneration priorities for the Preston Road Renewal area and the delivery of the Renewal Programme as shown on

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the plan in Appendix 2. This is the recommended option.

6.6 If the use of CPO powers is not agreed the ability for the Council and its strategic delivery partners, both existing and in the future, to deliver the outputs of the Affordable Homes Programme and Renewal Programme will be severely undermined. This would impact on the wider economic benefits attributable to construction programmes including; the number of direct jobs, local labour and apprenticeships created within the Hull marketplace and Yorkshire sub-region. The provision of a sustainable housing offer within Hull is also central to the Green Port regeneration initiatives and is necessary both to attract skilled personnel into the city and to create a more sustainable housing offer for residents of Hull.

7. Consultation

7.1. The HRC AAP built upon consultation in the Preston Road area in 2005-06 and was formally adopted by the Council in March 2011 following extensive stakeholder and public consultation and engagement. The plans adopted through the AAP process have been influenced by and designed in consultation with local residents directly affected by proposals for clearance and re-development. The formal adoption of the HRC AAP signifies the level of community and stakeholder support for the regeneration proposals identified within the AAP.

7.2. In addition, local community and stakeholder consultation on the restart of the acquisition and refurbishment programme in June 2013 and the citywide lead development consultation exercises for the development of the sites under the Renewal Programme were undertaken in June 2014.

7.3. Following the approval at Council’s Cabinet on 20th May 2013 committed a further £11.2m for Preston Road (minute 6b refers), a consultation event with local residents affected by the Acquisition and development was held in June 2013 and plans where made available on the phasing of the programme.

8. Comments of the Park Area Committee 8.1 Members support Option 3, that Cabinet support the making of a

Compulsory Purchase Order (CPO) to acquire all property, holding and rights needed for the scheme and the making of CPO’s in order to support the Council’s regeneration priorities for the Preston Road Renewal area.

9. Monitoring Officer Assurance Statement

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9.1 The proposal to delegate authority to the City Manager for

Neighbourhoods and Housing to use CPO powers where necessary is supported. Such powers can only be exercised where an appropriate planning and legal basis has been established. However, it is noted that no decision will be made unless or until Outline Planning consent exists in support of the regeneration proposals.

10. Section 151 Officer Assurance Statement

10.1 The Council’s Cabinet on 20th May 2013 committed £11.2m for

Preston Road (minute 6b refers) in order to deliver the remainder of the acquisition and demolition and refurbishment of the remaining Wingets on Preston Road. The funding is committed on a “spend to save” basis and is funded through the General Fund Capital and HRA Capital budgets.

11. Comments of City HR Manager

11.1 There are no staffing issues or equality issues should the recommendations be approved. If they are not approved then this may have some equality impacts in terms of access to affordable housing from particular groups with a protected characteristic

12. Comments of Portfolio Holder for Council Infrastructure 12.1 Every effort has been made to acquire properties by agreement

within the Preston Road regeneration area and I am still hopeful that agreement can be reached with property owners without the need to use CPO powers. The recommendations within this report will ensure the Council have the necessary powers in place to purchase any properties the Council have been unable to acquire voluntarily, enabling the delivery of new affordable and market sale homes. I therefore support the recommendations which will enable progress with the delivery of the Preston Road regeneration scheme.


13.1 This report has not been subject to pre-decision scrutiny. (Ref. Sc4569)

14. Conclusions

14.1. Option 3: That Cabinet support the making of a CPO to acquire all property, holdings and rights needed for the scheme shown on the plan in Appendix 1 known as Phase 1A Preston Road, and; support the making of CPO’s in order to support the Council’s regeneration priorities for the Preston Road Renewal area and the delivery of the

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Renewal Programme as shown on the plan in Appendix 2.

14.2. It is important to weigh the concerns of a relatively few land owners who cannot agree sales of property with the Council against the needs of the community who will benefit from the AHP and the Renewal Programme. In particular it is local residents who will benefit most from a timely regeneration of the area as they take up the opportunities afforded to them to move to new housing and benefit from the large scale regenerative transformation of the environment whilst retaining the community cohesion of the area.

14.3. The grant of CPO powers for the Renewal Programme, subject to funding, will realise the regeneration objectives of the Council and the local community in Preston Road established through the HRC AAP.

Laura Carr, City Neighbourhoods & Housing Manager

Contact Officer: Nicholas Harne Telephone No: (01482) 615477 Officer Interests: None

Background Documents: - Report Title Funding and Investment for Housing Renewals Programmes within Holderness Road Corridor 2013 (Minute 6b) Submitted to Cabinet Date 20th May 2013

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Implications Matrix

Author: Name: Nicholas Harne Service Area: Housing Strategy and Renewal

Contact details: [email protected] (01482) 615477

Background Papers: Funding and Investment for Housing Renewals Programmes within Holderness Road Corridor 2013 (20th May 2013)

Is this a Key Decision: If yes, is it in the Forward Plan?

No

Will further decisions be required? If yes please outline the timetable:

No


No

Have the financial (including capital) implications been agreed with the Head of Corporate Planning and Finance?

Yes

Have value for money considerations been accounted for?

Yes

Has the report been approved by the relevant CST/HoS?

Yes

Has the relevant Cabinet Member been consulted and any comments documented?

Councillor Black and Local Ward Members have been consulted through regular Regeneration Updates.

Has Overview and Scrutiny been consulted?

Have Area Committees been consulted? The Report will be considered at Park

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Area Committee on the 28th October 2014. Comments will be included in the Report prior to upload for Cabinet.

Have the legal implications been agreed with the Head of Legal and Democratic Services?

Yes

Are there any procurement/commercial issues/implications?

No

Have communications issues been cleared by Communications and Marketing?

Yes

Has an Equalities Impact Assessment been carried out in relation to the subject of the report?

Yes - Baseline reports were produced to support the AAP process which examined in detail the socio-economic profile for HRC and implications of renewal on communities in Preston Road.

Are there any equalities and diversity implications?

The impact of renewal in Preston Road is supported in the community and will generally improve living conditions and access to facilities and local jobs in the area. Access to information, help and guidance regarding the renewal programme and individuals housing and relocation options has the largest implications for equalities and diversity. Details of the support mechanisms in place are detailed in Appendix 3.

Are there any community safety implications? Has regard been paid to Section 17 of the Crime and Disorder Act?

No

Are there any environmental and climate change issues/sustainability implications?

No

Are there and Health and Safety implications? No

Are there any human rights implications? No

How does this report contribute to Council/LAA/Area priorities?

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Appendix 1

Plan showing 7 Holmpton Grove

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Author: Andy Brown Status: Version 1.0 Date: 12/11/2015 Page 1 of 10

Report to: City Managers Group 22 October 2015 Cabinet Working Group 16 November 2015 People and Communities Overview and Scrutiny Commission 12 November 2015

Cabinet 24 November 2015

Wards - All

Report of the City Customer Services Manager 1. Purpose of the Report and Summary

1.1. To report the progress being made on progressing the recommendations of the

Anti-Poverty Task and Finish Group, as requested by Cabinet of 3 November 2014.

1.2. To put forward suggestions to rationalise the current anti poverty workstreams to simplify monitoring and focus limited resources on clearly defined areas

2. Recommendations

2.1 That members note the progress made against the anti poverty Task and Finish

Panel's recommendations and put forward any observations and suggestions that they may wish to contribute to this work programme.

2.2 That the action matrix is reviewed to produce a more prioritised, concise and

focused plan of anti poverty work in keeping with available resources, in consultation with the Portfolio Holder (Communities and Neighbourhoods) and input from People and Communities Scrutiny Commission, and the Health and Wellbeing Board.

2.3 When completed the revised anti poverty action plan be submitted to Cabinet for

final approval.

Anti-Poverty Task and Finish Panel Recommendations Progress Report

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3. Reasons for Recommendations 3.1 It is recommended to review the action matrix to producer a more prioritised,

focused, plan that avoids duplication and takes account of changes to available anti poverty resources to ensure available resources are used to best effect.

3.2 The recommendation that the Portfolio Holder (Neighbourhoods and

Communities), People and Communities Overview and Scrutiny commission and the Health and Wellbeing Board are consulted on any proposed changes to the anti poverty action plan is made to ensure that the broad range of interests, priorities and service linkages in anti poverty work are recognised.


4.1 The proposed changes are likely to be of interest and impact on Health related services as there are linkages between health and poverty. Recognising this fact it is proposed that that prior to making any changes to the anti poverty action plan that the Health and Wellbeing Board is consulted.

5. Background

5.1 The challenging national economic backdrop along with the impact of major Welfare Benefit reform has had a significant impact on the local community regarding financial hardship and poverty.

5.2 In order to help co-ordinate an effective Council response to poverty the City

Customer Services Manager was designated as the corporate lead in 2012. In addition an Officer Anti Poverty Group was established in August 2012. The group is chaired by the City Customer Services Manager and takes a strategic overview of anti poverty work and identifies linkages and opportunities to help maximise the impact of anti poverty working and related initiatives.

5.3 Due to the significant impact poverty has on communities elected member input to

anti poverty work has also been facilitated with the formation of an Anti Poverty Task and Finish Panel which was established by the Overview and Management Scrutiny Committee. This cross party panel was chaired by Cllr Andy Dorton and considered a range of anti poverty issues along with evidence from a various stakeholders in order to develop specific recommendations to help address poverty and its underlying causes.

5.4 The work of the Anti Poverty Panel culminated with the production of a report on

its findings and recommendations which was presented to the People and Communities Scrutiny Commission of 11 July 2013.

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5.5 The report made a wide range of recommendations which were translated into a

list of 38 recommended actions, split over the three headings of Food, Fuel and Finance and was presented to the Health and Well Being Board on 10 September 2013 and to Cabinet on 28 October 3013.

5.6 Cabinet recommended that the identified actions be condensed into themed

groupings to assist identification of lead officers and to evaluate and progress. Where the recommendations had significant resource implications or financial impact it was recognised that they would need to have an appropriate supporting business case. It was also recommended that that the actions be included in the future work programme of the People and Communities Overview and Scrutiny Commission for approval and to monitor the progress of and to input to implementing the Anti Poverty report’s recommendations.

5.7 A progress update report was taken to Cabinet of November 2014.

6. Work Undertaken

6.1 Since the October 2013 Cabinet Meeting a detailed action monitoring matrix has

been produced, split under Food, Fuel and Finance headings. The matrix also identifies lead officers for each action, along with progress monitoring details and is attached at Appendix 1. The matrix also shows how each action is related to the City Plan.

6.2 The original 38 action points have subsequently been condensed into eleven

functional themed groups that can be more effectively monitored by the People and Communities Overview and Scrutiny commission. The themed groups are as follows:

• Land and Growing

• Learning and Skills

• Retail

• Food

• Saving Fuel Saving Money

• Credit and Savings

• Corporate Debt Recovery Policy

• Advice and Support

• Housing

• Health

• Raising Awareness / Communications

6.3 The individual actions falling within each group are detailed in Appendix 2.

6.4 The People and Communities Overview and Scrutiny Commission has agreed to monitor ongoing progress by focusing on a small number of themes each month, which can then be considered in reasonable detail.

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6.5 During December 2014 – September 2015 the following themes have been considered by the Commission:

December 2014 – Advice and Support

January 2015 - Credit and Savings February 2015 - Learning and Skills March 2015 – Retail Theme April 2015 – Corporate Debt Recovery Theme June 2015 – Land and Growing Theme July 2015 – Saving Fuel, Saving Money Theme Sept 2015 – Credit and Savings Theme

6.6 The individual actions within the themes have been progressed by the relevant

lead officers and the action matrix updated to show how each initiative is advancing.

6.7 Work has been progressed across the majority of actions with the specific details

given on the action matrix in Appendix 1. Due to the range in scale of the recommendations the initiatives are at varying stages of progression with 12 of the original 38 actions now delivered. In addition the matrix also shows many actions being started but are likely to run on an on-going basis.

7. Progress Made Since Report to November 2014 Cabinet

7.1 Some of the specific actions to date include:

• Seeking Alternative Low Cost Lenders for High Risk Customers Options have been explored regarding potential models to provide an alternative to “Pay Day” lenders. Previously the Hull Credit Union was considered, however, its model is too risk averse to service this customer group. As a possible alternative solution a detailed report has been produced detailing options available regarding the establishment of a CDFI facility in Hull. Such a facility has the potential to provide lower cost loans for higher borrowers who might otherwise seek finance from Payday lenders. A paper has been produce for, initial, CST consideration regarding the feasibility of creating such a facility in Hull

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• Discounted Food Supplies

Expressions of interest have been sought from organisations to submit proposals to create and operate a Community Shop in Hull. A preferred supplier has now been identified and discussion will now being progressed to firm up the proposal details re shop site, eligibility criteria along with any contributions sought from the Council

• Cheaper Energy

Since first participating in the collective energy switching scheme in November 2012 Hull City Council has facilitated 5 cycles on behalf of iChoosr, the company that the Council contracted with via Peterborough City Council, which undertakes Collective Energy Switching. During the last year there have been 1,973 registrations with 492 people actually switching suppliers. The average saving achieved was £280 pa, which is a significant increase compared with the average £194 saving achieved in the previous year.

• Peoples Premium Text Messaging Service

This is a text messaging service “club” for people wanting to save money. The initiative was started in 2014 and has been operated during 2015 and now has 2,818 registered members and 26,000 messages issued to members covering various money saving initiatives. It is planned to continue this service into 2016, and further grow the membership base.

The messaging service has covered a number of campaigns as follows:

General – 18.3.15 Food – 1.8.15 Fuel – 1.10.15 Finance – 4.1.16 (planned) 16 promotional events have taken place since 18 March, 2015 and a

number of organisations have helped promote the scheme, including Tesco and donations of shopping vouchers and goods have enabled the Peoples Premium to run a series of competitions, giving away vouchers, a tablet and an Actifry (Healthy Fryer).

Take up of the Credit Union savings account and registration for energy

switch peaked following promotions through this channel.

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• Augmented Reality Campaigns

There have been 4 augmented reality anti poverty campaigns in the past year. The first was a general promotion and the three others each focussed on the priority areas of Food, Fuel and Finance. These campaigns use interactive posters to encourage the public’s engagement in these key areas.

• Improved Awareness for Children Growing Their own Food and Cooking Skills

The Whole School and Nutrition Programme is being progressed. The programme will work directly with 45 schools, including primary, secondary and PRU’s targeting those in the most deprived areas and with the highest levels of obesity. The aim is to build a whole school approach to food and to promote good nutritional health in all pupils. The initiative is currently out to tender with the programmed planned to start in January 2016. Open Futures has also contributed to this anti poverty area being a skills and enquiry based curriculum development programme with four main strands of askit, growit, cookit and filmit. The initiative is presently being delivered in 5 primary schools in Hull and with investment from Hull City Council Open Futures Trust plan to make Hull a national focus for its research and development work. Investment to roll out Open Futures into a further 15 schools is currently being progressed with the roll out due to start in October / November 2015.

8. Proposed Future Management of Anti Poverty Initiatives

8.1 The current action matrix has been a useful device to initiate a wide range of projects, however, since its initial use in 2012 it has become increasingly unwieldy as a management tool. The document is now some 29 pages of A3 and many of the original actions overlap and could be merged / rationalised. In addition a number of other factors have changed that impact the ability to drive and manage anti poverty work across the Council which include:

• Many initiatives are embedded in service departments’ core work rather than separate standalone projects.

• The original very limited financial inclusion staffing resource (1fte) that helped drive many anti poverty initiatives is like to be reduced as part of the current £300K budget cuts being made to the Hull Advice Service. Further budget cuts of £170k are currently being considered to the Hull Advice service that will result in further reduced capacity.

• That it is apparent that many of the original actions will require Council funding to progress and this may well not be available given the Councils overall budget position.

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8.2 Given the current position it is therefore proposed that the 38 point action matrix

be reviewed with the intention to produce a revised anti poverty work plan that is more focused and reflects the reality of the actual resources that are available in this area. The aim will be to develop a plan which has greatly reduced number of workstreams, which are linked to credible resources to drive them forward.

8.3 To progress such an approach it is proposed that anti poverty plans, including the current Action matrix be reviewed by the City Customer Services Manager in consultation with the Portfolio Holder (Communities and Neighbourhoods) and input from the People and Communities Scrutiny Commission and Heath and Wellbeing Board. The revised plan would then be presented to Cabinet for final approval along with proposed monitoring arrangements.


9.1 To continue progressing anti poverty work using the current 38 point action

plan and related management arrangements. This is not recommended as the plan is becoming unwieldy and does not reflect the diminishing resources available to fund and manage initiatives within the plan. There is a risk that the plan increasingly becomes disconnected from the ability to deliver and also duplicates in a number of areas.

9.2 To discontinue progressing an anti poverty work programme. This is not

recommended as poverty remains a major challenge within the city and a focused response is required to enable the effective direction and management of resources in this key area.

9.3 That the current 38 Point action plan be reviewed and a revised more

focused, prioritised anti poverty work plan be produced reflecting the reduced anti poverty resources available, current duplication and the increased embedding of initiatives within mainstream service management. This approach will produce a realistic and clear action plan, that can be supported by available resources. This is the recommended option.

10. Consultation

10.1 Consultation has been undertaken with the Portfolio Holder (Neighbourhoods and Communities) and City Managers. Further consultation will be undertaken to include the Peoples and Communities Overview and Scrutiny commission and the Health and Wellbeing Board regarding the re-shaping of the anti poverty work programme, if the recommendations within this report are agreed.

11. Comments of the Town Clerk

11.1 Progress achieved through the Anti Poverty Strategy is noted. There are no immediate legal implications arising from the report.

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12. Section 151 Officer Assurance Statement

12.1 The proposal to review and consolidate the list of actions, with awareness of the resources that are, or are thought likely to be available in the future, is supported.

13. Comments of City HR Manager 13.1 The progress to date is noted and must have had some positive impacts on

people with protected characteristics. The plan requires Council resources for its delivery and as these are diminishing, then the plans will have to be prioritised in order that they can be delivered with the resources available.

14. Comments of Overview and Scrutiny 14.1 This report is due to be considered by the People and Communities Overview and

Scrutiny Commission on Thursday, 12 November, 2015. Any comments or recommendations agreed by the Commission will be tabled at November Cabinet for consideration. (Sc4584)

15. Comments of the Portfolio Holder (Neighbourhoods and Communities)

15.1 Although I’m not against the idea of using public land to grow food I would encourage that we look to open more community allotments and have people on hand that can help other that have no idea how to grow so they themselves can better understand how to grow. If you don’t know how to do something in the first place then you need someone to help.

15.2 I think it’s an excellent idea that we should encourage younger people to grow and

this should be part of the school week from primary school up to leaving school. Younger people will then have the skills needed to continue growing and easing the issues poverty.

15.3 This is a huge task to complete and maintain going forward. I would hope that

members and officers keep this drive going with more focus on delivering what the wider public can take up quickly and help them change the way they eat, shop, grow and manage the ever decreasing amounts of moneys they have.

16. Conclusions 16.1 Progress has been made over a wide range of the anti poverty actions

detailed in the original 38 point action plan, however, the plan is becoming unwieldy and the planning and management arrangements for anti poverty

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work needs to be reviewed to reduce duplication and produce a more focused plan that also reflects reduced available resources.

16.2 Most anti poverty initiatives require some degree of funding, frequently

from the Council, and given such resources are becoming increasingly limited this needs to be reflected in anti poverty planning and work programmes prioritised.

16.3 Increasingly anti poverty work is embedded within Service department core work activities and is driven and managed within those department areas rather than through a separate anti poverty management arrangement. This position needs to be increasingly reflected in any future anti poverty work programme.

Andy Brown – City Customer Services Manager Contact Officer: Andy Brown Telephone No: 61(3444) Officer Interests: None Background Documents: Anti Poverty Task and Finish Panel Final Report

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Implications Matrix

I have informed and sought advice from HR, Legal, Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, Area Committee etc prior to submitting this report for official comments

Yes – where appropriate.


No.


VFM will be considered as part of each Anti-Poverty action

The report is approved by the relevant Corporate Director

Yes


N/A

I have liaised with Communications and Marketing on any communications issues

N/A

I have completed and Equalities Impact Assessment and the outcomes are included within the report

No EIA will be taken as appropriate when individual recommendations from the T&F Panel report are progressed

I have included any equalities and diversity implications within the report

No Equality and Diversity issues will be considered when individual recommendations from the T&F Panel report are progressed.


No Health and Safety issues will be considered when individual recommendations from the T&F Panel report are progressed


Not applicable


Not applicable


Not applicable

I have included information about how this report contributes to City/Council/ Area priorities within the report

The report proposes a new local scheme to support some of the most vulnerable people living in the city.

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Anti Poverty Task and Finish Panel Recommendations from Final Report APPENDIX 1

Version 10 – 021015 1

REF Desired Outcome Action required: Lead Officer/ Department

Comments/Update Timescale for Delivery

Status: Not Started On-Going Delivered

Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

FOOD *1 Use of unused land for the

promotion and production of healthy home grown low cost food.

That the lead of Calderdale Council be followed, in relation to using land for growing food, by making available any spare or unused Council land for the growing of food under license.

Assistant City Managers (Neighbourhoods)/ Andrew Wilson

Relevant Officer/land owner may need to be involved in terms of use of council land. A trial project is currently underway on an area of land adjacent to Thoresby Street School where a group of local residents connected with the Food4Hull group are growing fruit. Project progressing well with area now cleared and ready for planting Unused grassland at the Bespoke Centre in North Carr is now being developed for cultivation purposes and an initial planting day has seen fruit trees and rhubarb go in. A Facebook page and a noticeboard have been established and money granted from the Bransholme East Ward Budget to purchase plants and tools. Volunteers have begun to be recruited, including from a nearby supported housing scheme, and donations of seeds etc. have been made by local people and ASDA. A Lottery bid, in conjunction with Environmental management Solutions, for a total of three sites in North Carr to be developed, is now being progressed. Autumn 2015 – A briefing paper is currently being presented to all Area Committees outlining the process for obtaining appropriate parcels of council owned land, under licence, for growing food.

By Autumn 2014

Started On-going

Land and growing

Help residents make their money go further

Community Growing and Food projects

No specific budget lies with Parks and Open Spaces. £320

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*2 Improved awareness for children on cooking skills.

That an exploration be undertaken to include a “growing and cooking and enterprise” strand within the Learning and Skills Strategy.

Public Health Directorate: Jo Arro

Whole School Food and Nutrition: The programme will work directly with 45 schools, including primary, secondary, special and PRU’s, targeting those in the most deprived areas and with the highest levels of obesity to build a whole-school approach to food and to promote good nutritional health in all pupils. It will work in partnership with schools to develop policies that promote healthier eating and ensure that the wider school community is actively engaged in all aspects of the schools approach to food – this includes where food comes from, how it is grown and cooked and what constitutes healthy eating behaviours.

Jan 2016 to Dec 2018

Out to tender, programme start Jan 2016

Learning, skills and health

Prevention and early intervention Health improvement


Budget £60k pa for three years.

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*3 Improved awareness for children on growing their own food and cooking skills.

That in co-operation with “Open Futures”, support is given to the existing five Open Futures schools to spread the programme to other schools and maximise the knowledge sharing available.

Public Health Directorate: Jo Arro

Open Futures is a skills and enquiry-based curriculum development programme, linking learning and life. It was developed to help children discover and develop practical skills, personal interests and values, which will contribute to their education and help to enhance their adult lives. It is a fresh way of meeting the needs of primary school children, whose natural spirit of enquiry is fostered and nurtured through the programme’s four curriculum strands – askit, growit, cookit and filmit. These linked creative contexts stimulate and motivate, providing children and their teachers with the opportunity to work with professionals who are experienced in delivering educational projects from the worlds of food, horticulture, media, academia, philosophy and the arts. Open Futures is presently being delivered in 5 primary schools in Hull and with investment from Hull City Council Open Futures Trust plan to make Hull a national focus for its research and development work.

Delivery underway

Investment to roll out Open Futures into a further 15 schools in Hull has been approved and a local Director of Learning and Program Development has been appointed. Program roll out in due to start in October / November 2015.

Learning, skills and health



Allocated budget: £25k pa drawing in extra funding and expertise from Open Futures

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http://www.openfutures.com/our-curriculum/askit

http://www.openfutures.com/our-curriculum/growit

http://www.openfutures.com/our-curriculum/cookit

http://www.openfutures.com/our-curriculum/filmit


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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*3 cont

Community Cooking and Growing Project

Project is complete but as can be seen elsewhere on this table, there are a number of succession projects:

• Whole School Food and Nutrition

• Open Futures

Sharon Clay Senior Partnership Officer City Strategic Delivery and Partnerships

Ground work were commissioned in 2014 to run a project designed to encourage families and individuals to lead healthy lives through shared learning and volunteering. The particular focus was on some of the most marginalised groups and individuals helping to create food growing areas or improve existing facilities. Groundwork worked with groups to enable them to address their own specific barriers to food growing. For some, this was creating food growing areas in the heart of their communities, for others it was supplying them with the resources necessary to get the most from their existing area.

Groundwork Hull successfully delivered this project between Feb 2014 and November, 2014

Complete

Learning and Skills

Health Improvement

Community Growing and food projects

Budget: £30,000 Spend: £28,990

*4 The development of closer links between Schools and Community groups to help support anti poverty work.

That schools are supported to engage social bridging with community groups and residents.

Tracy Harsley/ Rachael Roberts (with input from Area teams and Partnership team

If specific schools have ideas or projects in mind the Partnership Team can also circulate information or requests directly to the Greenshare members, or to the wider voluntary and community sector if required

March 2014 Learning and skills

Prevention and early intervention

Community Education Advice

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*5 Improved awareness for children on growing their own food and cooking skills.

That schools are supported in developing the enterprise opportunities of growing and cooking.

Public Health Directorate: Jo Arro C&YPS Claire Farrow

Please see reference numbers 2 and 3 above: “Whole School Food and Nutrition” “Open Futures” Healthy Lifestyles Team, their work includes:

• Holiday Programme delivering cooking training and healthy packed lunches.

• Healthy Cooking on a Budget Marketing Campaign

• Growing schemes at Children’s Centres

Healthy Cooking on a Budget Programme:

• Train the trainer programme including Children’s Centre Staff

• Children who are carers engaged and courses planned

• Nursery cooks trained

Delivery underway

Started On-Going

Learning and skills



See above for Whole School Food and Nutrition/Open Futures Healthy Lifestyles Team, ANNUAL BUDGET £170,000 Healthy Cooking on a Budget ANNUAL BUDGET £70,000

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*6 Identification of unused land for food growing use.

That the development of City Plan be used to ensure mapping of food-land use and food groups/organisations.

Andrew Wilson / Partnership Team

The provision of emergency food relief (food banks and soup kitchens) is mapped and listed on the Council's A to Z pages to support Customer Services colleagues and Call-Centre Staff in having readily accessible information. Information is also included on the new Humberhelp website: http://www.humberhelp.co.uk/ The Greenshare Directory includes a number of food and growing projects, also a section on offers of help, sharing of skills and resources. This network is currently unfunded and operates via email, Facebook page, Twitter and an annual conference. In September 2015 local organisation Rooted in Hull invited all food / growing projects to register their details on their website so that projects can be mapped. 13 Organisations had registered. Another invitation for organisations to register their projects will be sent out w/c 12 October 2015. Following feedback from a variety of sources, the City Plan website is currently being updated to provide greater accessibility and more up to date information. It will also provide links to maps, where relevant and up to date information signposted to or readily made available. Mapping of allotment sites is in hand and should be available on the City Plan website shortly. Autumn 2015 – A briefing paper is currently being presented to all Area Committees outlining the process for obtaining appropriate parcels of council owned land, under licence, for growing food. City Plan on line brochure is currently being populated and expected to go live by end of October, 2015.

October 2015

Started and Ongoing Delivered Delivered In Progress In Progress In Progress

Land and growing

Help residents’ to make their money go further

Links to community cooking and growing projects

N/A

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http://www.humberhelp.co.uk/


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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*7 Raising awareness of growing your own food.

That the possibility be explored of planting an edible garden around (at least) part of the fountain in Queens Gardens and in the paved area outside the Hull Truck Theatre and Albemarle Music Centre as flagships and encouragement to other groups to do the same (potentially utilising Heritage Lottery Funding).

Andy Burton / Andrew Wilson

Greenshare Network and Food4 Hull would be interested in further developing this approach (SC) Food4Hull is in the process of forming a Land Army to help grow food on empty land, we want to cook for a day and Feed Hull?; get food to people who need it and help to reduce food poverty, celebrate all the existing food projects in the area, create food learning and training opportunities and bring together, and network with, local communities, businesses, policy makers and public health advocates at new events. A successful ‘edible bed’ has been produced in front of the Wilson Centre adjacent to Queens Gardens. Plants were grown by allotment and community groups and on several occasions food was harvested from the site and presented to the public. The paved area outside the Hull Truck Theatre and Albemarle Music Centre have been ruled out as not viable sites for edible gardens due to the distinct lack of available sunlight. Further sites to be looked into in the city centre including the Fruit Market. Autumn 2015 – A briefing paper is currently being presented to all Area Committees outlining the process for obtaining appropriate parcels of council owned land, under licence, for growing food.

Complete. Others sites to follow

Delivered Land and growing

Help residents make their money go further

Community Growing and Food projects including City Farm

No specific budget lies with Parks and Open Spaces.

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*8 Promotion of locally grown produce and providing a market outlet for home grown produce.

That the potential of introducing a sticker or badge scheme for producers/retailers of local produce be explored.

Phil Hall, Malcolm Relph (Regen)

In terms of an accreditation scheme for local food businesses, all the major food retailers use accredited suppliers that are BRC registered which allows the suppliers to operate nationally / internationally and supply the major multiples rather than just locally and therefore there it is likely to be little or no interest in a local sticker scheme.

The introduction of such a sticker scheme would have minimal or no positive impact on the Anti-Poverty agenda and therefore no further action on this issue is recommended.

There are only two reasons why it could be beneficial to introduce a “Made in Hull” sticker scheme for the local food industry and unfortunately neither are relevant. The first reason would be if Hull was recognised as a Centre of Excellence either Nationally or Internationally in Food Production then this would be something that companies could buy into, unfortunately this is not the case. To undertake the necessary marketing campaign to raise awareness of Hull as a Centre of Excellence for food manufacturing would require a team of marketing experts with an annual budget in excess of £250-300k on top of the staffing costs. Even then you would be looking at a minimum five year plan to have a significant positive impact, but you should also bear in mind that we have previously run the Hull Food Alliance which undertook some of this marketing activity for over three years and it did have the buy in of many of the local food companies, even then having little impact. The second reason would be if our local food manufacturers were looking to only sell their produce locally then again there would be a benefit to incorporating an appropriate logo. However, the local food manufacturers are actually seeking to expand their customer base beyond the local region and are actively seeking to sell their goods both nationally and internationally. Therefore companies are trying to either obtain or maintain their British Retail Consortium (BRC) Accreditation to support this aim. Therefore there would be no cost benefit of going to the expense of redesigning and producing new packaging (which is likely to cost £000’s per product) to incorporate such a sticker / logo on their packaging.

Also, given the very stringent regulations on food labelling as outlined in the linked document, mean that the introduction of such a scheme would be extremely complex and very costly and time consuming to monitor. http://multimedia.food.gov.uk/multimedia/pdfs/origi

nlabellingguid0909.pdf

It should also be considered that should any small scale food producer develop over coming years that does only aim to supply locally then they would be eligible to join the existing scheme that is operated by East Riding of Yorkshire Council for their local small farm shop retailers but on the whole the food companies in Hull operate on an entirely different scale to this and therefore it is recommended that no new scheme be introduced.

Sept 2015 – No further action has been taken as agreed with Councillor Dorton as Chair.

Started Initial feasibility stage.

Retail Help residents’ to make their money go further


N/A

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http://multimedia.food.gov.uk/multimedia/pdfs/originlabellingguid0909.pdf

http://multimedia.food.gov.uk/multimedia/pdfs/originlabellingguid0909.pdf


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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*9 Promotion of locally grown produce and providing a market outlet for home grown produce.

That in relation to community markets: to facilitate where possible and appropriate, the selling of local produce.

East Area/

Partnership Team

Current provision There are no community led / social enterprise led outdoor markets in Hull. A community led indoor market Made and Sold in Hull runs on an occasional basis in different community halls and gives local people the opportunity to sell produce, food, arts and crafts that they have made or grown. Issues for consideration, risks and potential costs

• Regular outdoor markets are subject to regulation and legislation, whereas occasional indoor markets are not governed in this way and are therefore easier to manage.

• Trading on an occasional basis, or fluctuating self employment income may have benefit implications for individuals. Advice should be sought from DWP.

• Start up funding would be required to allow time for sustainable commercial activity to build up

Options for next steps

• An outline proposal for a community market for East Hull has been developed by the Freedom Centre, proposing a 40 stall outdoor market twice weekly, with the potential to hire out the stalls for markets in other areas. To progress the project would need a more detailed business case, some start up funding, the involvement and support of other potential stakeholders, robust multi agency partnership and governance arrangements putting in place (possibly even a new Community Interest Company forming to manage it) and staffing with specific knowledge and expertise to manage it. A meeting of potential partners / stakeholders could be facilitated to explore the potential for the project.

• The Made and Sold in Hull group could be approached to discuss the potential for their indoor markets to be held in all parts of the city, with the involvement of Area Teams.

Started and on-going

Started

On-going

Retail Help residents’ to make their money go further


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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

9 cont

Craven Park market is running at the Freedom Centre from Saturday 22 March,2015. Freedom Centre is seeking to add some community stalls to this, rather than start from scratch.

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*10 To enable residents to grow fresh produce and reduce food bills; to enable under utilised/ neglected gardens to be maintained and productive

That the Housing Department be asked to review the tenancy agreement and explore whether there is any potential in encouraging residents to offer unused garden space to other residents to care for.

Housing (Ria Toutountzi)

In response to this action, we reviewed our tenancy agreement and how it would apply to this situation. We also obtained information from other local authorities who had trialled similar approaches. Recommendations There are already arrangements and schemes such as Green Prosperity in the Park and Longhill areas of the city which appear to be working informally. At the moment these do not appear to be resulting in dispute between tenants and growers although such problems could arise. The cost of amending the tenancy agreement would likely run to several thousand pounds and it seems, from the feedback from other landlords, that the small number of arrangements generated where there are “formal” schemes does not merit the expense of making changes to Hull’s tenancy agreement, developing and managing a scheme. We could however reconsider this when we next review our tenancy agreement or if schemes such as Green Prosperity become increasingly successful and stimulate demand. The proposal therefore is that the learning from informal arrangements, such as Green Prosperity is shared, in order that other areas can consider if this would be an option (cross tenure) for their communities to consider.

ongoing Delivered (Please see recommendations)

Land and growing

Help residents’ residents to make their money go further


0 (will be achieved through existing resources/ budget commitments)

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*11 Obtaining food at reduced cost through bulk buying – to benefit the local community. Replaced by “The Council continues to explore the creation of affordable food offers.” As recommended at P&C Scrutiny of 24 July 2014

That a briefing paper be submitted showing the options and viability of bulk purchasing of food by the Council. Formal presentation to be provided by Company Shop/Goodwin Development Trust to assess feasibility and what resources would be required.

LBo/DS/Goodwin Development Trust/Company Shop

LBo to produce a briefing paper A cross-sector working group has met to assess the feasibility of a Community Bulk Buying of Food model. This would be to enable the public to bulk buy as opposed to the council purchasing food. This group will inform the development of the aforementioned briefing paper. The current themes of focus are as follows:

• Subsidised fruit and vegetables grown locally.

• Potential use of Fare Share Food

• Integration of a timebanking model so people can pay for food through time credits

• Online bulk purchasing with wholesalers.

Goodwin already deliver the FareShare scheme and are looking to develop this and the links with complementary schemes. Both Goodwin and EMS are submitting bids to the Dream Fund to take forward the ‘Food’ element of the financial inclusion strategy. If these bids are successful then these projects will need to be taken into account also when considering the recommendations that relate to access to affordable food. Briefing paper completed which outlines the potential for community food purchase rather than bulk buying by the council . Project outline completed which sets out proposed area for investment. To achieve a community shop through which the public can access discounted food. This recommends support for a bid for external funding as an affordable option for HCC. The initiative can be promoted through the Hull People’s Premium. Expressions of interest to establish a community shop have been received. Preferred Bidder status now agreed for potential operation.

Draft of briefing paper completed by April Briefing paper completed. The paper recommended support for a community shop move towards a community shop.

Started and on-going This project has been selected for consideration as a City Plan Project.

Food Help residents’ to make their money go further


No budget allocation

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

FUEL *12 Increased take up of the

Energy Switch initiative – leading to reduced energy cost for subscribers.

That the People and Communities Commission assess and monitor the ongoing marketing and uptake and effect of “Hull Switch”

Lisa Bovill Collective Energy Switching has been promoted at 2 events – Marfleet Super Saver (21/9) and Housing Mutual Exchange (31/10). Since 18/10 we have received over 100 registrations and Hull is now the second best performing Local Authority of a consortium of 14. We have been liaising with Comms & Marketing in issuing press statements capitalising on the moral panic re. rising energy prices. The scheme would benefit from a dedicated resource re. promotion. Future plans include migration into the proposed Hull People’s Premium. Monitoring information is sent through from Peterborough Council on a regular basis. We are planning to promote the scheme through a number of channels.

• Information in the financial information packs

• Public events

• A commissioned promotion campaign

We will monitor the impact that these activities have on registrations. April, 2015 campaign: 1,973 registrations, 492 people switched with an average saving of £280 pa. This compares to £194 in 2014.

Various switching opportunities arranged during 2014/15 Awaiting information from ichoosr on future cycles. Next auction takes place October 2015

Delivered and ongoing with regular updates on performance through the City Plan monitoring process.

Saving fuel saving money


Community Energy Switching


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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*13 Improved insulation of homes to reduce heating costs.

That the People and Communities Commission assess and monitor the success of the Green Deal promotions

Warm Zone Trish Welsh/Gavin Atkinson NPS/Garry Taylor

Holland Street, Phase 2 of the Boulevard including Carrington Street, Wellsted Street have all secured ECO funding and are delivering on site, all are scheduled for completion in Late 2014 – Early 2015. BISF projects have secured funding and are gearing up for delivery. Hot Spots referral system is in operation and has continued for 4 years. Excess winter Mortality (EWM) continues to rise as energy costs exceed inflation (fortunately there has been a mild winter reducing the impact of EWM), the Home Heating Cost Reduction Obligation has also been reduced which will have a significant impact on winter deaths and hospital admissions over the coldest months of the year. First source of funding in this area resulted in 70 installations, the second is currently underway (requires health element in qualification criteria. Work is continuing to secure alternative funding for boiler and central heating schemes in time for next heating season. Stable long term funding for this area is difficult to secure at present. In November, 2013 a preferred Green Deal/ECO partner (Wilmot Dixon) was agreed and is expected that works will start on site later in 2015. Hull is top of the 380 councils in the UK in the cosy council index which rates them on activity and achievement for energy information and insulation programmes. Hull Warm Zone has managed to secure £30,000 health through warmth budget, and possible match funding through the Public Health Fund. HHCRO funding will also be available for the coming winter months and we have been successful in our bid for funding. Installed a further 25 heating systems. Eco funding has been secured via Npower To enable continued delivery of Insulation measure’s city wide, HHCRO funding has also been secured to enable heating systems to be installed in eligible households.

The national grant scheme for Green Deal/ECO has extended to March 2017

Ongoing Saving fuel saving money


Eco Green Deal

Currently No Budget Allocated ECO offer not yet known, as procurement process underway

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*14 Improved consumer awareness on how to use fuel more efficiently.

That the People and Communities Commission assess and monitor how an advertising campaign may encourage people to use fuel more efficiently.

Lisa Bovill Using fuel efficiently will be one of the key themes promoted through the Hull People’s Premium initiative to residents across the city. We have now successfully piloted the facility and through integration into Advice Services, a number of voluntary sector partners, a small media campaign and internal communication within the Council. We are now ready for full launch of the facility, with a 12 month media campaign through Comms & Marketing Fuel efficiency measures have been promoted through HPP (see 15 for further action on fuel poverty)

The Hull People’s Premium was launched to stakeholders at the Financial Inclusion Forum on 7th March, 2014 and will be launched to residents in April, 2014.

On-going .



Making money go further/ smart energy saving project

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*15 Increasing consumer awareness of energy consumption in their homes and encouraging more economic use of fuel.

That the People and Communities Commission assess and monitor the progress of “smart meters” in the City

Lisa Bovilll Smart Monitors are currently being fitted in 2 pilot areas (Southcoates East and Longhill Wards). EMS have had 100% take up for the monitors. EMS will provide one to one support in every home in which a monitor is fitted. The level of saving will be dependent on the behavioural change they can instigate. EMS have agreed to share monitoring and performance with Hull City Council. Environmental Management Solutions (EMS) have received funding through the Big Lottery Fund to fit and monitor Smart Monitors in both Southcoates East Ward and Longhill Wards. Partnership arrangements are in place to disseminate the effectiveness of this initiative within a broader anti-poverty context. 60 Smart Monitors have thus far been fitted in Southcoates and Longhill Wards. Arrangements are in place regarding the behavioural change of residents with EMS. EMS, in partnership with Hull Advice have submitted an application to Scottish Powers ‘Energy People Trust’ that will combine the fitting of Smart Monitors aligned with income maximisation and benefits advice. If successful this will provide an additional resource and further develop the project. We will learn if we are successful by the end of March, 2015. Scottish Powers have agreed funding has been gained to integrate an advice function into this process. In addition to income maximisation advice there will be an increased package of advice on a full range of anti fuel poverty measures including switching, HPP membership, monitoring and insulation.

Smart Monitor pilot until 2015. Potential roll out citywide dependent on effectiveness/Business Case. Advice project begins November 2015. The project will run initially for 1 year.

Started and Ongoing



Smart Energy Saving Project


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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

16 Encourage consumer migration to less expensive payment methods for their fuel.

That the People and Communities Commission assess and monitor the use and removal of token meters/pre-payment meters

Lisa Bovill It is very difficult to remove token meters/pre-payment meters as they are often ‘imposed’ by energy companies when arrears begin to escalate. Households who pay for their energy using pre-payment meters, often prefer this method as it avoids issues re. debt and is incorporated within daily/weekly budgeting behaviours. There is an issue re. awareness, and people not being aware of their rights and ability to switch payment methods so this area of work may be better suited by a campaign, potentially aligned with energy switch. Little that can be done as many people choose to use pre-payment meters.

On-going Saving fuel saving money


Making money go further / Smart energy saving project

*17 Identify the viability of the deployment alternative forms of fuel e.g. solar.

That the People and Communities Commission assess and monitor alternative forms of fuel, such as solar panels and the implications of the renting out of roof space for solar panels.

Partnerships Team /Martin Budd

The ability to deliver PV panels across the Housing stock needs to be considered in the light of reducing Feed in Tariff’s, compulsory rent reductions and other policy announcements by the Government have created further uncertainty in the market and also poses issues to the long term sustainability of such a programme. The Council is reviewing how these policy changes will impact on the viability of the installation of solar panels and we will need to wait until next year for the new FIT rates have come in, panel prices to have stabilised and the impact of wider housing related policy changes before reviewing the potential for deployment on Council house roofs

Further review March 2016




UK Energy City

FINANCE

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*18 That an alternative mechanism be established for the provision of essential white goods for low income citizens as an alternative to high cost credit suppliers.

That a pilot scheme for white goods vouchers be investigated.

Andy Brown Initial investigation undertaken regarding possible use of the “Smarterbuys” initiative. Also contact made with the Co-Op who have experience supplying such schemes. Current constraint is lack of funding source for low income high risk borrows. The Hull Credit Union has been approached for funding but is relatively risk averse. A report has been commissioned which looks at the options for establishing a new affordable credit provider in the city, most likely a CDFI. A summary of the main options and cost implications is due for consideration by CST. There is scope for this credit provider to facilitate a white goods scheme.

Depends on outcome of sourcing funding for low income/high risk borrows. CDFI summary report due to be completed in October 2015.

On-going Credit and savings


Credit Union Loan Scheme

19 Encouraging high risk borrowers to stop from using high cost “Pay Day” lenders by providing an alternative lower cost lending facility.

That the City Customer Service Manager explores proposals to guarantee small loans for the Credit Union and other ways the Credit Union can reduce the threshold criteria for approving loan applications.

Andy Brown Loan guarantee facility has been discussed with the Credit Union, with meetings held on 15 and 20 November. There remains a challenge in terms of establishing a risk level that the Credit Union is comfortable using, as a responsible lender. The Portfolio Holder Councillor Hewitt and City Customer Services Manager met with the Credit Union president and Chief Executive to explore options. Based on these meetings it does not appear that the Credit Union will be able to provide finance.

Not yet determined as viable. Unlikely to be practical based on current findings

On-going Credit and savings


Credit Union Loan Scheme

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*20 Make sure customers have as much financial information as possible to make good financial decision for themselves.

That front facing access points advise customers of Credit Union products and services.

Lisa Buttery Information can be made available in a general form but front facing staff cannot recommend particular financial providers or products, Whilst we may want to promote the CU as an ethical provider in a broad sense the Credit Union will not always have the best product for the individual and financial advice of this type is regulated. We may become liable if we are not mindful of the distinction. Our general aim should be to help people to make good financial decisions for themselves. Hull Advice are currently developing a product called the People Premium. This will be an on line app in which customers will be able to access useful information. To be promoted at the CSC’s Welfare Line 300303. Nine of the 38 actions that have resulted from the recommendations from the Anti-Poverty Task and Finish Panel are actions specifically about communicating messages to Hull residents in order to:

- Raise their awareness - Encourage their engagement - Encourage them to behalf in

certain ways/reinforce certain behaviours.

HPP is fully operational and has over 3,000 members. It has promoted a number of anti poverty actions and the database is continuing to grow. Campaigns have included food and fuel and it has used augmented reality as a feature of the major campaigns.

People’s Premium launched on 7 March 2014 Hull People’s Premium will be used to provide information to the public on Credit Union products and services. Front facing access points will promote sign up to HPP. It is on course to be delivered in March 2014. The project will run until April 2016 and continuation funding is currently being sought.

Delivered Credit and savings


Making Money go Further

No budget allocation yet although funding to cover administration fees for individual account holders is under consideration

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*21 Corporate Debt policy revised to ensure continued firm but fair collection procedures followed.

That the Corporate Debt Policy includes reference to the CityPlan, and that the Corporate Debt Policy, when revised, be considered further by the People and Communities Overview and Scrutiny Commission to ensure that the comments of this Panel have been accounted for.

Andy Sims The Policy was reviewed at the City Managers meeting on 8/11/13, followed by People and Communities Scrutiny in November before Cabinet on 19/12/13.

19/12/13 Delivered Cabinet approved 16/12/13

Corporate debt recovery policy


Making Money go further

None

*22 Credit Union advisors are able to provide basic financial advice to customers

That the additional training provided to Call Centre/CSC staff for the new financial advice service is offered to Credit Union advisors.

Lisa Bovill The Credit Union now have a leaflet to give to customers that outlines sources of debt advice in the city. This action is completed. The Credit Union are involved in the development of the People’s Premium service which will negate the need for additional training. No further update.

March 2014 Delivered

Advice and support



No budget

*23 The holistic management of customer debt collection to provide a more joined up service.

That the Information Communication and Technology (ICT) Team be approached to review the feasibility of integrating computerised systems, in order to deliver an Integrated Debt Management and Debt Management Policy, and to identify resources that may be utilised for this purpose.

Andy Sims Demo received on 5 September, 2013 of Corporate automated Recovery system (CARs) run by Merchant Software Ltd. Briefing paper for CST – August 2014 Briefing paper to P&C Scrutiny Commission – 11 September 2014. Propose to progress as part of Corporate Customer Account. Future action agreed. Further update to P&C in 6 months. Further update provided to P&C Scrutiny 23/4/15.Options to be explored as part of potential partnership with Civica. Further briefing required on 10/12/15.

In line with Customer Enablement and Empowerment Programme

On-going Corporate debt recovery policy


Making money go further

None

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*24 The holistic management of customer debt collection to provide a more joined up service.

That better cross departmental working be instigated where a customer has a number of outstanding debts to different Council Departments and has been unable to make current instalment payments, and to make an arrangement with the customer to make one regular cyclical payment.

Andy Sims This item is fundamentally linked to item above (ref 23)

On-going On-going Corporate debt recovery policy



None

*25 Improved customer awareness of anti poverty support available.

That the advice sheet used by the front line staff includes additional standard questions, including, “Did you switch your fuel provider?” and, “Are you a member of the Credit Union?”

Lisa Buttery / Lisa Bovill

Information packs are being developed that will include reference to fuel switch and the Credit Union. An SMS service is currently being piloted that will provide a more cost effective and potentially more effective method of transmitting communications. This will be via a brand/identity that will challenge the stigma often aligned with anti-poverty measures. This is currently going under the working title Hull People’s Premium. Update in box 20

On-going See Box 20

Not started See box 20

Advice and support



£1, 800 allocated to the purchase of the service

*26 Raising awareness of anti poverty initiatives being driven by the Councils and its partners.

That the newsletter being created by the

Council’s Communications Team projects a positive image of debt alleviation, and include issues such as not having to pay for help with self-help packs.

Craig O’Donnell/ Jenny Walker

Newsletters started – Next edition planned for November, 2015

Delivered and on-going


Advice and support



No dedicated budget

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*27 Fair levels of debt recovery costs used in collection of Council Tax.

That the People and Communities Overview and Scrutiny Commission review the full implications of lowering the costs incurred by customers when Council Tax cases are referred for Court Proceedings to their future work programme.

Andy Sims / Andy Brown

Report taken to January 2014 cabinet. Costs scheme agreed for 2014/15.

January 2014

Delivered Corporate debt recovery policy



*28 Ensure fair Benefit Clawback rates are used.

That the People and Communities Overview and Scrutiny Commission review the guide collection rate of benefit by claw-back to ascertain the full implications of a lower level being set than the amount advised by the Department for Work and Pensions.

Andy Sims Briefing paper produced for People and Communities OSC for July 2014 meeting.

July 2014 Delivered. Corporate debt recovery policy



Not applicable.

29 Effective data sharing within data protection regulations to help deal with customers on a more holistic basis.

That the City Manager for Customer Services is asked to consider adding the opportunity for consent to be gained from residents to share their information across Council Departments.

Andy Brown / SIRO

The scope and legal issues associated with this proposal will be considered as system integration project progresses.

On-going – linked to systems integration development

On-going Advice and support



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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*30 That the rent arrears policy is either agreed as being fit for purpose or is amended as necessary, to ensure that it is supportive to all tenants experiencing financial difficulties, maximises opportunities for support, including from a multi agency perspective, with eviction being an option of last resort

That Cabinet reviews the policy for eviction of tenants who have rent arrears in light of Welfare reforms and the impact of the “bedroom tax”.

Housing Laura Carr (Ria Toutountzi)

Cabinet considered: July 2013 Council considered: September 2013 Review to Cabinet November 2013 Cabinet agreed that the rent arrears policy was fit for purpose and that eviction remains an option of last resort. A range of support measures have been put in place:

• Support to down size

• Support to access specialist financial advice

Commenced review of package of support available for people downsizing or mutually exchanging In December 2014, Cabinet agreed the following recommendations: (a) That all existing “downsizing” (agreed move to a smaller council home) incentives are removed and that appropriate budgets are redirected to the area housing teams. The operational details for the use of this budget allocation are to be agreed and authorised by the City Manager Neighbourhoods and Housing and the Portfolio Holder for Council Infrastructure (including Housing and Waste Management) (section 5.3.2.4 of the report); (b) That delegated authority be given to the City Manager Neighbourhoods and Housing and Portfolio Holder for Council Infrastructure (including Housing and Waste Management) to develop criteria and introduce targeted financial assistance for cases where tenants mutually exchange their properties (section 5.3.2.6 of the report);

Delivered 25.11.13 General support activity is ongoing

Delivered Housing Enabling and Supporting the plan


HRA budget for specialist posts £60K P/A Spend to date is annual pro rata Budget for downsizing moves increased in 2014/15 Budget for downsizing moves will be de centralised and the scope of financial /other support will be widened

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

31 That the rent charged and benefit payable is accurate having regard to the number, size and useable space within bedrooms in council homes, in order that there is no unreasonable financial impact on tenants

The Cabinet consider the practice of other Authorities and housing providers concerning the reclassification of bedrooms.


Cabinet considered: July 2013 Council considered: September 2013 Review to Cabinet November 2013 Cabinet agreed to no mass classification- only where changes (eg some adaptations) had reduced the number of available bedrooms Initial “batch” of circa 50 council properties were reclassified following tenancy variation in January 2014. A procedure has been developed to ensure that as properties are identified in future they can be dealt with “on flow”.

Amendments completed where small bedrooms have been highlighted

Delivered Housing Enabling and supporting the plan


Existing resources

32 That the rent charged and benefit payable is accurate having regard to the number, size and useable space within bedrooms in council homes, in order that there is no unreasonable financial impact on tenants and that Scrutiny have information about progress on this.

That the outcome of the review on the potential of the re-designation of bedrooms in Council homes is monitored by the People and Communities Overview and Scrutiny Commission.


Cabinet considered: July 2013 Council considered: September 2013 Review to Cabinet November 2013 Cabinet agreed to no mass classification- only where changes (eg some adaptations) had reduced the number of available bedrooms CM to update P&C O &SC

Amendments completed where small bedrooms have been highlighted

Delivered Housing Enabling and supporting the plan


Existing resources

33 That the People and Communities Overview and Scrutiny Commission are kept up to date with demand on and pressures for housing and housing services and the implications from an anti poverty perspective, in order that they can fulfil an effective scrutiny function

That the monitoring of the demand pressures faced by the Council and the impact on residents in terms of housing is undertaken by the People and Communities Overview and Scrutiny Commission.


N&H CM to update at the quarterly CM update to the OSC To be included in the next CM report

Quarterly updates

To be included in the next CM report

Housing Enabling and supporting the plan


Existing resources

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*34 That tenants’ unwanted/ useable furniture/ items can be re-used by households who would otherwise struggle to afford such items

That the Panel had considered how best to utilise some of the resources that we currently have where tenants have been evicted and felt that unclaimed furniture and re-usable items could be utilised for people in poverty who are starting a new tenancy, and refer this to the People and Communities Commission for further investigation.


HRA budget for specialist posts £60K P/A Spend to date is annual pro rata Budget for downsizing moves increased in 2014/15 Budget for downsizing moves will be de centralised and the scope of financial /other support will be widened Detailed outline of how the local arrangements for targeted financial support for moving home will operate have been agreed. The downsizing incentives will be phased out in 2015/16 and replaced with a broader offer of support aimed at assisting those who need to move that are in financial hardship (but not necessarily downsizing).

To be progressed in 2014/15

On-going Housing Help residents to make their money go further


0

*35 To evaluate how customers are treated when they access frontline services

That the Council conduct mystery shopping exercises to ensure that all customers are treated respectfully, regardless of financial status.

Laura Carr (Ria Toutountzi)

There are a number of ways that we already tests customers views about their customer experience. The Housing Tenant Participation team could contribute to assessing this by including in a mystery shopping exercise This needs to be developed with colleagues Mystery shopping exercises aimed at assessing front line services are conducted on a regular basis and now include specific testing of staff attitude to customers.

Mystery shopping exercise undertaken, summary report of findings to be collated and reported to P&C Commission Complete initial exercise December 2014

Delivered Advice and Support

Enabling and supporting plan


Existing resources

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

36 To improve customer awareness of debt support and encourage non stigmatised requests for help.

That the Council work towards banishing the stigma of being in debt, and encourage an open dialogue through formulating a toolkit that can be used to engage customers in discussion about finances, including questions such as “have you switched?”, “do you grow anything?”, “do you know that the Council are offering a white goods scheme?” Etc.

Lisa Buttery / Lisa Bovill

To be achieved through the Hull People’s Premium initiative. For further update on HPP and Live for Less campaigns see 20 and 22 above. Update on HPP in box 20.

April 2014 onwards See Box 20

Scheduled for launch March2014 See Box 20

Advice and Support



*37 Raise profile of possible health impacts of indebtedness and encourage support from Health and Well Being Board.

That the Health and Wellbeing Board review the impact of debt on health.

Director of Public Health / Jen Walker

A report on the impact of debt on health was produced by the Public health team and considered by the Health and Wellbeing Board in January 2014. This was well received by the HWB and support for ‘Food, Fuel and Finance’ initiatives was included in the refreshed Health and Wellbeing Strategy 2014-2020. A Health Inequalities Subgroup of the Board (Chaired by Cllr Dorton) has been established in the Summer of 2015 and has included actions on ‘in-work poverty’ in its Health Equity Action Plan.

Early 2014 Delivered Health Prevention and early intervention

Healthy City

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Scrutiny Theme

City Plan Theme

City Plan Link

Budget Allocated

and Spend to Date

*38 Ensuring effective anti poverty communications with input from the People and Communities Overview and Scrutiny Commission.

That the People and Communities Overview and Scrutiny Commission monitor and have an input into the communications strategy.

Craig O’Donnell/Lisa Bovill/Dave Shepherdson

2013 An anti-poverty communications plan was developed with input in advance of benefit changes coming in to force in early 2013 to ensure that stakeholders and residents were made aware of the advice and support available to them through this transition and beyond. We did so through a quarterly anti-poverty newsletter for stakeholders and through a range of media including posters, area newsletters and local and social media for residents. 2014 Launched to stakeholders in March, the ‘Hull People’s Premium’ allows for the communication of anti-poverty messages targeting all Hull residents. The campaign will launch to residents in April. Hull People’s Premium aims to provide residents across the city with access to information, advice, support, products and services that will help them to reduce their expenditure across all of three of the themes of the People and Communities work programme; Food, Fuel and Finance. Residents of Hull will be encouraged to sign up to receive regular updates which will be communicated via a range of methods and outlets including text message, website, Twitter, Facebook, 300 300 and 300 302 (Hull Advice), council customer service centres, posters and leaflets. Communication with stakeholders will still continue through quarterly editions of Anti-poverty news.

June 2014 HPP is up and running but we will invest in the promotion and development of the product and launch the augmented reality version in September 2014. Corporate Marketing are awaiting information on this and are happy to move forward once information is received. The HPP project has met these milestones and has been fully operational since September 2014. Further information in box 20

On-going Project group to be established in June 2014. Augmented reality launch in October 2014. On going until April 2016

On-going See Box 20

Raising awareness/ communications

Enabling and supporting the plan

Healthy City

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City Plan Projects – With Potential Anti Poverty Links UK Energy City

• Green Deal

• Community Energy Switching *Making Money go Further

• City Centre Farm - This project started in June 2015 and is being taken forward by Recycling Unlimited, in partnership with Hull and East Yorkshire Mind and Humber All Nations Alliance. The site has been developed and prepared over the summer and will have a full growing season in 2016.

• Care Share/Time Banking

• Community Education Advice

• Community Growing and Food Project - This project was delivered by Groundwork Hull between February and November 2014. The project exceeded participant target numbers and evaluation was very positive

• Credit Union Loan Scheme

• Smart Energy Saving Project

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Appendix 2

Anti Poverty Task and Finish Panel Recommendations from Final Report Scrutiny Theme – Land and Growing

Reference Action Required

1 That the lead of Calderdale Council be followed, in relation to using land for growing food, by making available any spare or unused Council land for the growing of food under license.

6 That the development of City Plan be used to ensure mapping of food-land use and food groups/organisations.

7 That the possibility be explored of planting an edible garden around (at least) part of the fountain in Queens Gardens and in the paved area outside the Hull Truck Theatre and Albemarle Music Centre as flagships and encouragement to other groups to do the same (potentially utilising Heritage Lottery Funding).

10 That the Housing Department be asked to review the tenancy agreement and explore whether there is any potential in encouraging residents to offer unused garden space to other residents to care for.

Scrutiny Theme – Learning and Skills


2 That an exploration be undertaken to include a “growing and cooking and enterprise” strand within the Learning and Skills Strategy.

3 That in co-operation with “Open Futures”, support is given to the existing five Open Futures schools to spread the programme to other schools and maximise the knowledge sharing available.

4 That schools are supported to engage social bridging with community groups and residents.

5 That schools are supported in developing the enterprise opportunities of growing and cooking.

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Appendix 2

Scrutiny Theme – Retail


8 That the potential of introducing a sticker or badge scheme for producers/retailers of local produce be explored.

9 That in relation to community markets: to facilitate where possible and appropriate, the selling of local produce.

Scrutiny Theme – Food


11 That a briefing paper be submitted showing the options and viability of bulk purchasing of food by the Council.

Scrutiny Theme – Saving Fuel Saving Money


12 That the People and Communities Commission assess and monitor the ongoing marketing and uptake and effect of “Hull Switch”

13 That the People and Communities Commission assess and monitor the success of the Green Deal promotions

14 That the People and Communities Commission assess and monitor how an advertising campaign may encourage people to use fuel more efficiently.

15 That the People and Communities Commission assess and monitor the progress of “smart meters” in the City

16 That the People and Communities Commission assess and monitor the use and removal of token meters/pre-payment meters

17 That the People and Communities Commission assess and monitor alternative forms of fuel, such as solar panels and the implications of the renting out of roof space for solar panels.

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Appendix 2

Scrutiny Theme – Credit and Savings


18 That a pilot scheme for white goods vouchers be investigated.

19 That the City Customer Service Manager explores proposals to guarantee small loans for the Credit Union and other ways the Credit Union can reduce the threshold criteria for approving loan applications.

20 That front facing access points advise customers of Credit Union products and services.

Scrutiny Theme – Corporate Debt Recovery Policy


21 That the Corporate Debt Policy includes reference to the CityPlan, and that the Corporate Debt Policy, when revised, be considered further by the People and Communities Overview and Scrutiny Commission to ensure that the comments of this Panel have been accounted for.

23 That the Information Communication and Technology (ICT) Team be approached to review the feasibility of integrating computerised systems, in order to deliver an Integrated Debt Management and Debt Management Policy, and to identify resources that may be utilised for this purpose.

24 That better cross departmental working be instigated where a customer has a number of outstanding debts to different Council Departments and has been unable to make current instalment payments, and to make an arrangement with the customer to make one regular cyclical payment.

27 That the People and Communities Overview and Scrutiny Commission review the full implications of lowering the costs incurred by customers when Council Tax cases are referred for Court Proceedings to their future work programme.

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Appendix 2

28 That the People and Communities Overview and Scrutiny Commission review the guide collection rate of benefit by claw-back to ascertain the full implications of a lower level being set than the amount advised by the Department for Work and Pensions.

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Appendix 2

Scrutiny Theme – Advice and Support


22 That the additional training provided to Call Centre/CSC staff for the new financial advice service is offered to Credit Union advisors.

25 That the advice sheet used by the front line staff includes additional standard questions, including, “Did you switch your fuel provider?” and, “Are you a member of the Credit Union?”

26 That the newsletter being created by the

Council’s Communications Team projects a positive image of debt alleviation, and include issues such as not having to pay for help with self-help packs.

29 That the City Manager for Customer Services is asked to consider adding the opportunity for consent to be gained from residents to share their information across Council Departments.

35 That the Council conduct mystery shopping exercises to ensure that all customers are treated respectfully, regardless of financial status.

36 That the Council work towards banishing the stigma of being in debt, and encourage an open dialogue through formulating a toolkit that can be used to engage customers in discussion about finances, including questions such as “have you switched?”, “do you grow anything?”, “do you know that the Council are offering a white goods scheme?” Etc.

Scrutiny Theme – Housing


30 That Cabinet reviews the policy for eviction of tenants who have rent arrears in light of Welfare reforms and the impact of the “bedroom tax”.

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Appendix 2

31 The Cabinet consider the practice of other Authorities and housing providers concerning the reclassification of bedrooms.

32 That the outcome of the review on the potential of the re-designation of bedrooms in Council homes is monitored by the People and Communities Overview and Scrutiny Commission.

33 That the monitoring of the demand pressures faced by the Council and the impact on residents in terms of housing is undertaken by the People and Communities Overview and Scrutiny Commission.

34 That the Panel had considered how best to utilise some of the resources that we currently have where tenants have been evicted and felt that unclaimed furniture and re-usable items could be utilised for people in poverty who are starting a new tenancy, and refer this to the People and Communities Commission for further investigation.

Scrutiny Theme – Health


37 That the Health and Wellbeing Board review the impact of debt on health.

Scrutiny Theme – Raising Awareness/Communications


38 That the People and Communities Overview and Scrutiny Commission monitor and have an input into the communications strategy.

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