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ITEM CC8

COUNTY COUNCIL – 13 SEPTEMBER 2005

REPORT OF THE CABINET

Cabinet Member – Leader of the Council

1. Implementing the Manifesto Pledges

(Cabinet, 22 June 2005)

The Cabinet has considered a report which set out the way in which the new administration’s manifesto pledges would be taken forward in the short and medium term. The report addressed the manifesto topics in turn, under the overarching principles of ‘low taxes’, ‘real choice’ and ‘value for money’. The Cabinet agreed to endorse the report and receive further reports on the specific items for implementation.

Cabinet Members – Leader of the Council & Finance

2. Medium Term Financial Plan: Alternative Council Tax Levels (Cabinet, 5 July 2005)

 

• 4.4% in 2006/07 reducing by 0.1% in each of the following years; or

 

• 4.375% in 2006/07 reducing by 0.125% in each of the following years; or

 

• 4.25% in 2006/07 reducing by 0.25% in each of the following years.

Cabinet Members – Leader of the Council & Change Management

3. Performance Management: Progress against Priorities and Targets

(Cabinet, July 5 2005 and 6 September 2005)

The Cabinet has considered fourth quarter performance for 2004-2005 and, on 6 September, is receiving a report on first quarter performance for 2005-2006. Performance is reported against Oxfordshire Plan 2005/6 priorities, Public Service Agreement 2003/04 – 2005/06 targets and Best Value Performance Indicators and, for 2005-06, Raising our Performance 2.

The Oxfordshire Plan 2005-06 carries forward the Council’s 13 priorities from 2004/05 (known as the "10+3"). Monitoring of these priorities continues until the work under way to set out the priorities of the new Council is complete. This is likely to be this autumn and at that time a scorecard will be used to provide a summary of the performance of the Council.

Reporting on the monitoring of Raising our Performance 2 is now being undertaken as part of this quarterly performance report. As stated in the Oxfordshire Plan, the Council is reviewing its vision and medium-term objectives following the May 2005 election and a key element of this will be an organisational development strategy. Once developed, this strategy will replace Raising our Performance 2.

This year there are a number of new BVPI indicators that have not yet been assessed. When the final guidance is produced for CPA 2005, the relative weighting given to indicators will need to be assessed. In addition, work is under way to develop a performance scorecard that will set out those BVPIs that are seen as being of high corporate importance.

Cabinet Member – Finance

4. Provisional Revenue & Capital Outturn

(Cabinet, 22 June and 19 July 2005)

The Cabinet has received reports on the provisional revenue and capital outturn for the 2004/05 financial year. At its 19 July meeting, the latest position for consolidated reserves at the year end was confirmed as £12.181m, made up of £5.683m in general reserves and £6.498m in Directorate carry forwards.

The Cabinet identified variations to be carried forward into 2005/06 under the Council’s budget management arrangements. These included the use of £0.300m of the Strategic Measures surplus to make the contribution to earmarked reserves in relation to deferred developer contributions interest budgeted for 2005/06; the use of balances to meet the overspend on non-domestic rates of £0.514m; and a supplementary estimate of £0.446m to return the balance relating to a late 2003/04 audit adjustment to the Pooled Budget.

The Cabinet also reviewed how the carry forwards requested by Directorates could best be allocated to Directorates this year. The Cabinet agreed that in future, fortuitous and unplanned income occurring in year should be returned to balances in the first instance where it could be requested for specific purposes. Accordingly, as well as approving a range of carry forwards, the Cabinet decided in particular that Learning & Culture underspends on Joint Sports Agreements and Health & Safety works should be carried forward subject to a requirement to offset the funding against 2004/05 overspends carried forward or 2005/06 pressures; that Environment & Economy underspends on Public Transport, Strategic Policy & Economic Development and Waste Management, should be returned to Council balances and held against a risk-assessed schedule of potential commitments; and that the Cabinet Member for Finance should review the underspend on the Scrutiny budget in conjunction with the Scrutiny Co-ordinating Group.

5. Treasury Management Outturn 2004/05

(Cabinet, 5 July 2005 and 6 September 2005)

The Cabinet has reviewed the Council’s treasury management activity in 2004/05. The review covered both debt financing and investment of temporary cash surpluses, and compared both the in-house and external investment performance against their benchmarks.

The Council’s debt increased from £245.38m at 1 April 2004 to £284.38m at 1 April 2005, an increase of £39m. The Council borrowed £44 million in longer-term loans during 2004/05 as part of its normal debt-financing programme. The average debt portfolio interest rate for the year was 5.314%.

The Council held off borrowing during the first quarter of the financial year while long-term PWLB rates were at their highest levels. £4 million was borrowed in July when the 25-30 year fixed rate fell to 4.95%. Further borrowing was undertaken in each of the next 5 months at rates ranging from 4.85% to 4.55%. The Council repaid £5 million of maturing PWLB debt during the year. The annual interest rates on the matured loans averaged 5.05%.

The authority’s net treasury management income for 2004-05 exceeded the budgeted amount by approximately £2.45m.

An additional issue which the Cabinet is considering on 6 September is the need to amend some of the 2005/06 indicators in order to avoid limiting the Council’s ability to finance the capital programme and to allow the authority to invest a higher proportion of its cash balances in variable rate instruments. The detailed proposals and technical explanation are set out in Annex 1 (download as .doc file). to this report.

The Cabinet is therefore being asked to RECOMMEND the Council to approve:

1. an increase in the authorised limit for external debt to £402.853m for 2005/6;
2. an increase in the operational limit for external debt to £392.853m for 2005/6;
3. an increase in the fixed interest net borrowing upper rate exposure limit to 150%;

as shown in Annex 1 (download as .doc file).

6. Review of Property Assets

(Cabinet, 19 July 2005)

The Cabinet has considered a report on progress with the Review of Property Assets Implementation Plan, together with a strategy for the consolidation of offices in Oxford not being considered as part of the Review of Central Offices, a position statement on the Review of Central Offices and an update on the investigation of the scope for redevelopment of Old County Hall by the County Council for its own use (as opposed to the earlier proposal for development of a conference centre jointly with the castle site developer.)

The Cabinet agreed the strategy for non-central Oxford offices and will consider detailed appraisals for the North, South and Oxford non-central office reviews, and a further report on taking forward the central offices project, in Autumn 2005. The Cabinet also agreed in principle that the Council should undertake the refurbishment of Old County Hall to provide conference, training and meeting facilities, subject to a detailed business case and specific funding arrangements being agreed by the Capital Steering Group and with a further report to the Cabinet before a commitment is made.

7. Statement on Internal Control

(Cabinet, 19 July 2005)

On 20 July, the Audit Committee approved the Statement on Internal Control 2004/05 for inclusion in the annual Statement of Accounts.

Cabinet Members – Change Management, Finance

8. SAP Revitalisation Programme

• approved progression to Stage 2 of work on the development of Shared Services at a cost of up to £205,000 in 2005/6, funded from the SAP Revitalisation Budget;

 

• approved additional expenditure of up to £1,315,000 in 2005/6, £1,305,000 in 2006/7 and £737,000 in 2007/8, funded from the SAP Revitalisation Budget, to support identified work in Finance, HR, Procurement and SAP Support;

 

• approved the allocation of procurement process savings of £245,000 in 2008/9 and £254,000 thereafter, as a contribution to the full year continuing costs of £575,000;

 

• noted that the balance of the future operating costs will be incorporated into detailed implementation and benefits realisation plans for Shared Services and that if Shared Services is not adopted, these costs will be incorporated into efficiency savings plans.

Cabinet Member - Transport

9. Local Transport Plan (Cabinet, 5 July 2005)

The Cabinet has considered a draft Local Transport Plan Annual Progress Report 2004/05. The report detailed how the Council had responded to the ‘Weak’ assessment of last year’s Annual Progress Report. It identified the scheme delivery and spending programme for 2004/05 and explained the divergences from the work planned for 2004/05 and identified progress towards national and local targets and objectives. The Cabinet approved the draft Annual Progress Report for submission to the Government Office for the South East.

10. Strategic Rail Authority: Greater Western Franchise(Cabinet, 5 July 2005)

The Cabinet has received details of the service changes proposed by the Strategic Rail Authority (SRA) for the new rail franchise that starts in April 2006, covering an area from London to Oxford, Bristol, South Wales and the West of England.

The SRA proposals give benefits to some areas of Oxfordshire, such as the Cotswold and Cherwell Valley Lines, but cutbacks in others, for example, a reduced off-peak service for Didcot, reduced services for Appleford, Culham and Radley and the removal of most services between Oxford and Bicester.

There was particular concern about the Oxford-Bicester line service reductions in the context of problems on the A34 trunk road and the continued growth of Bicester, and about the service reductions on stations between Oxford and Didcot in the context of activities at the Culham Laboratory complex. The Cabinet asked officers, in consultation with the Cabinet Member for Transport, to respond to the SRA consultation welcoming the proposed service improvements for the Cotswold and Cherwell Valley lines but objecting to the proposals for cutting back rail services from other stations. Officers were also authorised to participate in a campaign to protect local rail services, on the understanding that limited resources will mean that involvement will be restricted to a supporting role.

Cabinet Member – Children & Young People

11. Children & Young People’s Plan

(Cabinet, 22 June 2005)

The Cabinet has considered an outline Children and Young People’s Plan. This arises from the new statutory requirement to produce a single, strategic plan for all local services for children and young people, including services provided by the local authority and all relevant partners. The duty to prepare the Plan was given to the County Council, alongside its duty to secure co-operation among partners to improve the well-being of children and young people. The Plan is designed to support local authorities and their partners to agree clear targets and priorities for all their services to children and young people, to identify the action needed to achieve them and to ensure delivery. The first Plan must be in place by 1 April 2006.

The Cabinet agreed to approve the outline plan as the basis for further work and development. A draft Plan will be brought back to the Cabinet in October 2005 (via the Children’s Services Scrutiny Committee) for approval as a basis for wide consultation.

Cabinet Members – Schools Improvement, Health & Community Services

12. 14 – 19 Strategy for Oxfordshire

(Cabinet, 22 June 2005)

The Cabinet has considered the Oxfordshire 14 – 19 Strategy, which was drawn up in the light of the 14-19 area wide inspection report, the 14-19 area wide action plan, the unfolding requirements for the Children and Young People’s Plan and the indicators to be used in joint area reviews. The Oxfordshire 14-19 Strategy sought to address the recommendations of the 14-19 area wide inspection. The Cabinet approved the Oxfordshire 14-19 Strategy subject to noting the need to consider how 14-19 development could be funded beyond 2006-07, if provision for additional vocational education and skills based training in accordance with the Strategy was to be realised.

Cabinet Member – Community Safety

13. Youth Justice Plan

(Cabinet, 22 June 2005)

The Cabinet has considered a draft Youth Justice Plan, together with a copy of the Plan for 2005/06. The Plan is one of the strategic plans which are subject to approval by full Council following consideration by both the Cabinet and relevant Scrutiny Committee in accordance with the Budget and Policy Framework Procedure Rules set out in the Constitution.

The Cabinet agreed to recommend the Council to approve the Youth Justice Plan for submission to the Youth Justice Board subject to it being referred to the Community Safety Scrutiny Committee for their advice. The Committee welcomed the Plan’s development and concurred with its reference on to the Council for approval. The Youth Justice Plan was subsequently submitted to the Youth Justice Board on the understanding that the Council had not yet endorsed it.

In the light of continuing difficulties in obtaining the contribution due from the Health sector toward the cost of the Youth Offending Service, the Cabinet has also asked the Joint Health Overview & Scrutiny Committee to consider what pressure they might bring to bear on the Health sector to meet their financial obligations to the Service.

The Council is RECOMMENDED to approve the Youth Justice Plan.

14. Fire & Rescue Service: Local Response Standards

(Cabinet, 22 June 2005)

The Cabinet has considered the introduction countywide of Local Response Standards for the Fire & Rescue Service.

The Service’s Integrated Risk Management Plan 2004/05 (IRMP) had indicated a need to consider Local Response Standards to replace the old National Response Standards that were becoming obsolete. Local Response Standards had been trialled since 1 April 2005 to ensure that they were clearly understood by local fire crews. The Cabinet agreed to approve the introduction of the Local Response Standards across the County; and to request the Director for Community Safety & Chief Fire Officer to report annually on performance against these standards, bringing forward recommendations as appropriate for future improvements, particularly to address life-threatening situations and emergencies which involve people.

Performance data will be used for future improvement planning and prioritising Community Safety work. The Local Response Standards will also provide opportunities to seek service delivery improvements in the future, with highest priority to reducing the number of life threatening emergencies and improving the response times to those which occur.

Cabinet Member – Sustainable Development

15. Oxfordshire Structure Plan

(Cabinet, 6 September 2005)

The review of the Oxfordshire Structure Plan 2016 is now reaching its final stages. In March 2005 the Council considered the report of the Panel which conducted the examination in public of the deposit draft Structure Plan in October 2004, and agreed proposed modifications to the draft Plan. The proposed modifications were published from 6 May to 17 June 2005. About 275 individuals and organisations submitted representations on the proposed modifications.

The Cabinet on 6 September will be considering these representations in the light of a detailed report which makes recommendations on how the Council should respond to the representations and proposes revisions to the explanatory text that accompanies the policies in the Plan. The report concludes that the representations have not raised any new issues or matters of such significance to justify re-opening the EIP or making additional changes to the policies. Therefore the report recommends that the Council should proceed to adopt the Plan without proposing further modifications.

MEMBERS NEED TO BRING WITH THEM TO THE MEETING THEIR COPIES OF THE REPORT (CA6) CIRCULATED WITH THE 6 SEPTEMBER CABINET AGENDA, INCLUDING ANNEXES 1 AND 2 TO THAT REPORT.

The Cabinet is being asked, subject to consideration of any comments on behalf of the Environment & Economy Scrutiny Committee, to RECOMMEND Council to:

1. agree, in the light of the conclusions of the report, that the EIP should not be re-opened and that no further modifications to the draft Oxfordshire Structure Plan 2016 should be proposed;
2. agree the proposed statement of decisions and reasons in respect of representations made on the proposed modifications to the deposit draft Structure Plan set out in Annex 1 to the report to the Cabinet;
3. adopt the Oxfordshire Structure Plan 2016 as proposed to be modified;
4. agree the revisions proposed to the explanatory memorandum in Annex 2 to the report to the Cabinet, subject to any minor editing changes to the explanatory memorandum determined prior to publication by the Head of Sustainable Development following consultation with the Cabinet Members for Sustainable Development and Transport, including any required as a consequence of comments made by GOSE on the proposed monitoring framework and text relating to post 2016.

16. Draft South East Plan - Housing Distribution

KEITH R MITCHELL
Leader of the Council

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