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Meetings

Meeting Details

Cabinet
11 Dec 2018 - 19:00 to 22:00
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  • Declarations of Interests
  • Visitors

Documents

Agenda

Standard Items
Also Present
MIN
In accordance with paragraph 2.6(a) of the Constitution, Councillors Malcolm, Morrissey and Young addressed the Cabinet with regard to the following items:
 
Item 07 - Budget Strategy 2019/20 (Councillors Malcolm and Young)
Item 08 -Housing Revenue Account (HRA) Budget 2019-20, 5 Year MTFS and 30 Year Business Plan (Councillors Malcolm)
Item 09 - Council Performance Report Q1 and Q2 - 2018/19 (Councillor Malcolm)
Item 12 - Contract Award - Mental Health in the Community (Councillor Morrissey)
 Mr F Dawson, member of the public, addressed Cabinet on item 07 – Budget Strategy 2019-20
  
Also in Attendance
Councillor Rice

1 Apologies for Absence
MIN1
Councillors J Anand and Sabiers.
Cabinet congratulated Councillor Sabiers and his wife on the recent birth of their twin boys.

2 Urgent Matters
MIN2
There were none.
3 Matters to be Considered in Private

Item 12 contains information that is exempt from disclosure by virtue of Paragraph 3 of Schedule 12A of the Local Government Act 1972.

MIN3
Item 12 contained confidential appendices but was not taken in private as it was not necessary to discuss the confidential information provided.
4 Declarations of Interest
MIN4
There were none.
5 Minutes
To approve as a correct record the minutes of the meeting held on 13 November 2018
MIN5
Resolved:
That the minutes of the Cabinet meeting held on 13 November 2018 be agreed and signed as a true and correct record.
6 Appointments to Sub Committees and Outside Bodies
MIN6
Resolved
That Cabinet:
appoints and authorises the Director of Safer Communities and Housing to carry out the role of member representative for Locata (Housing Services) Ltd so that the relevant decisions can be made by the Council

MIN7
Resolved
That Cabinet:
i)   notes progress against the savings target agreed by Cabinet in July 2018 as part of the budget review process for 2019/20 and recognises that as far as possible the proposals contained in the report seek to improve outcomes for residents most in need.
ii)    approves net savings of £14.867m of which £12.347m are to be delivered from the General Fund, submitted as part of the 2019/20 budget review process, for 2019/20 to 2022/23 (section 5 and Appendix 1 of the report).
iii)   notes that particular savings proposals may have significant and important implications not set out in this report, for example in relation to the council’s equality duties or other legal responsibilities, or consultation may be required because of the likely impact upon staff, service users or providers. Where this is the case those implications will be fully explored, equalities analysis assessments undertaken and, if necessary, a further report will be considered by Cabinet or the relevant officer or portfolio holder before a final decision is taken on implementation.  Notes that where a decision is taken not to proceed with any savings proposal then alternative proposals will be brought forward for consideration by the Executive Director with responsibility for that proposal.
iv) authorises the Executive Director with responsibility for each proposal to:
a)  carry out all steps required in relation to each proposal, including carrying out any appropriate consultation,
b)  consider any consultation outcomes and any other detailed implications,
c)  complete and consider the implications of any equalities analysis assessment required,
d)   following completion of a) and b) above, and before taking the final decision on whether or not to proceed to implement each proposal, determine whether or not to amend any proposal prior to implementation as appropriate, and to make any amendment required
e)  where appropriate following a), b), c), and d) above, determine that implementation of a proposal should not happen.
v)      notes in relation to the authorisations given in iv) c) and iv) d) above that where appropriate any key decisions will be brought back to Cabinet.
vi) notes that officers will continue to work up detailed plans and budget proposals in accordance with the Administration’s priorities and financial strategy objectives to meet the requirement to identify proposals that will close the 2019/20 budget gap of £24.484m (paragraph 5.4 of the report) by the end of 2018/19.  
vii) notes the updated budget timetable set out in the report (section 7 of the report), including that further savings, growth and capital investment proposals will be reported to Cabinet in February 2019 for approval.
viii) notes the update regarding the London Business Rates Pool Pilot, and the anticipated extension beyond the initial year, 1 April 2018 to 31 March 2019 (section 5 of the report).
ix) authorises the Executive Director of Corporate Resources to consider and agree, in consultation with the Lead Member for Finance and Leisure and the Leader, to take on behalf of the council any actions necessary for the Council to continue to participate in the London Business Rates Pool.
x) recommends Council approves the Flexible Use of Capital Receipts Strategy for 2018/19 in respect of the £0.670m transformational investment expenditure to be added to the 2018/19 capital programme (section 6 of the report).
xi) approves the addition of £0.670m of transformational investment expenditure (originally planned to be funded from revenue) to the capital programme in 2018/19 (section 6 of the report).
xii) thanks Ian O’Donnell, Ross Brown, the Finance Team, all executive directors and Paul Najsarek for their work on the proposals presented to cabinet this evening.
  Reason for Decision and Options Considered 
This is the latest update for Members on the 2019/20 Budget and Medium Term Financial Strategy (MTFS). It details savings and efficiencies that have been identified to date and funding updates since July, to enable Cabinet to develop and initiate budget proposals before the Council finalises the budget and sets the council tax levels in February 2019.
The financial strategy detailed in this report is the Council’s response to the long-term and sustained reduction in Government funding. Revenue Support Grant (RSG) and other key funding streams such as Dedicated Schools Grant (DSG), Public Health Grant and New Homes Bonus (NHB) received from Central Government continue to reduce year-on-year in the lead up to permanent full retention of business rates (London is currently operating in a pilot pool), with the associated Fair Funding Review determining the final roll-in of key grants and a fundamental review of the baseline funding levels. This means that in future the Council will be reliant on council tax, business rates and fees and charges to fund its expenditure.
Ealing continues to face the toughest financial challenges following the continued significant and sustained cuts. The government grant Ealing receives has been reduced by £143.7m over the decade, the equivalent of a 64% funding reduction and greater than the London and national average. 
Table 1 in the report summarises the reduction in Ealing’s core funding since 2010/11
At the same time as being subject to such significant funding cuts the demand for many services continues to increase. Social care demand and increasing complexity of care needs continue to drive growth requirements along with increasing housing and accommodation challenges. As an example, in Adults Social Services alone the Council is spending over £0.231m per day providing care for eligible residents.
The overarching objective is a priority-led budget over the medium-term which is balanced and realistic and supported by achievable savings plans.
As set out above, the Council is currently facing significant budget pressures including the continuing prospect of reducing revenue support from Central Government, described above, and increased demand for services.  The delivery of prior year savings continues to be challenging which when combined with the above pressures results in a very difficult environment to deliver a balanced budget.
The proposals in this report will contribute to the savings agreed in the budget strategy. Many of the savings proposals will have more detailed implications which will only emerge following consultation. Where this is the case those detailed implications will be considered before a final decision is taken on whether or not to implement the proposal, including whether or not a proposal should be amended prior to implementation. Where proposals when considered in more detail result in a lower financial saving, it is the responsibility of the department to find alternative savings to the equivalent value to replace the reduced amount.
Any appropriate consultation in relation to proposals will be carried out as required and in accordance with the council’s legal duties and responsibilities.

MIN8
Resolved
That Cabinet:
i) notes the HRA 2018/19 budget forecast position at Period 6 (Appendix 1 of the report)
ii) approves the HRA revenue budget for 2019-20 (Table 3 of the report)
iii) notes the HRA 5-year revenue budgets for 2019-20 to 2023-24 (Table 3 of the report)
iv) notes the HRA 30-year revenue budgets for 2019-20 to 2048-49 (Appendix 3 of the report)
v) approves the financing changes of the HRA Capital Programme for 2018-19 with £6.528m additional GLA grant replacing Borrowing and Capital Receipts (Table 5 of the report)
vi) notes Government plans to lift the HRA borrowing cap announced in the 2018 Budget.
vii) approves the HRA 5-year Capital Programme for a total of £476.475m including additions to the value of £43.857m as indicated within Table 5 of the report and to approve the inception of the GLA Grant funding in the Capital Programme along with the use of extra HRA borrowing of £49.428m to finance the capital programme. 
viii) notes the 30-year Capital Programme for 2019-20 to 2048-49 (Appendix 5 of the report)
ix) notes a rent reduction of 1% from April 2019 which equates to an average weekly rent decrease of £1.00 in 2019-20. As required under the Welfare Reform and Work Act 2016.
x) notes the HRA reserves and balances for the 5-year MTFS (Table 4 of the report).
 Reasons for Decisions and Options Considered
The Local Government and Housing Act 1989 Section 76 requires Local Authorities with a Housing Revenue Account (HRA) to set a budget for the account, which is based on best assumptions, that avoids a deficit and keeps the HRA under review.
The budget has developed from a review of the baseline budget, current expenditure on Housing services and capital investment to maintain, improve and expand the Housing Stock.
The report outlines how the HRA is facilitating the Borough commitment to provide 2500 genuinely affordable homes as part of the “Building Council Homes for Londoners” programme through HRA borrowing, HRA additional borrowing and GLA funding, as well as ensuring we maintain safe homes and neighbourhoods by investing over £250m in our existing homes.
 
MIN9
9.   Council Performance Report Q1 and Q2 - 2018/19
  Resolved
 That Cabinet:
i)   notes the contents of the report.
ii)  notes the progress made against the Corporate Plan performance indicators during the first two quarters of 2018/19 (April – September).
Reason for Decision and Options Considered
The purpose of this report is to provide the Cabinet with a summary of the Council’s performance in the first and second quarters of 2018/19 against key

MIN10
10.  Revised Council Tax Support Scheme 2019/20
Resolved
That Cabinet:
i) notes the outcome of consultation on the proposed change to Council Tax Support scheme.
ii) notes the potential financial impact and potential liabilities resulting from the introduction of the revised Council Tax Support scheme. 
iii) notes the equality impact assessment which has been carried out in relation to the proposal to revise the Council Tax Support scheme which is Appendix 3 of the report.
iv) recommends that the revised Council Tax Support scheme for 2019/20, Appendix 1 of the report, be approved by Full Council on 26th February 2019.
 Reasons for Decisions and Options Considered
The Welfare Reform Act 2012 abolished the Council Tax Benefit (CTB) system and replaced it under the Local Government Finance Act 2012 with the Local Council Tax Support scheme (CTS) from 1 April 2013, thereby transferring responsibility from central to local government. The Local Government Finance Act 2012 also legislated that pensioners must receive protection, in that they must receive the same levels of entitlement under the new local Council Tax Support scheme as they had received under the old Council Tax Benefit scheme.
Funding was moved from central government to local government with a 10 per cent reduction in year one of £2.455m.
Funding for the first year of the scheme was provided in a form of a ring-fenced grant and it amounted to £22.093 million.
Funding for CTS schemes ongoing is no longer identified separately and is now rolled into formula funding. As CTS is now a discount the cost is reflected in the Taxbase figures in the Council’s Financial Plan.
The formula grant the Council receives from RSG and Business Rates will have reduced by 20.8% in 2018/19 since 2012/13 (the last year before CTS).  A further reduction of £15.0m by 2020/21 will be a total 32.2% fall on the 2012/13.  As almost all specific grants have also been scrapped and subsumed into the formula, the platform for providing CTS is considerably smaller. 
There is also a requirement for the Council to continue support for Pensioners at the same level as existed in 2012/13. 
On 11 December 2012 Full Council determined its first localised CTS scheme which took effect from 1 April 2013. The scheme was in place for 3 years until March 2016. The Council then approved subsequent schemes for the following years with some changes in April 2016 and April 2018. 
The original design of the CTS scheme took into account Department of Communities and Local Government’s (DCLG) guidelines available at the time on how a new scheme should be developed. The guidelines for the working age scheme were for the local schemes to incentivise working, protect the vulnerable and have due regard to the introduction of Universal Credit.
Following the DCLG guidance the Council adopted 7 principles which continue to guide the local CTS scheme: 
The 7 principles are:
• Principle 1. Everyone should pay something toward their Council Tax
All working age claimants who do not fall into vulnerable groups are required to make a minimum contribution towards their Council Tax. The minimum contribution has been set at 25%.
• Principle 2. The most vulnerable should be protected
Claimants falling into the vulnerable category are eligible for up to 100% of their Council Tax liability depending on their income. Additional protection has also been built into the calculation of CTS entitlement for this group. Certain vulnerable claimants are also entitled to higher premiums within the calculation of the entitlement which allows the claimants to keep more of their income. Disability benefits received by CTS claimants are not taken into account as income when calculating CTS entitlement.  Some are also exempt from non-dependant deductions.
• Principle 3. The scheme should aim to incentivise work
The scheme incentivises work by allowing claimants in employment to keep more of what they earn through various earning disregards which are applied during the assessment of the CTS entitlement.
• Principle 4. The Council should prepare for wider welfare reforms
Council Tax Support was introduced by the government as part of a wider welfare reform. The Council continues to use a minimum income figure for those who are self-employed which has been set in line with the UK National Living Wage based on 35 hours per week. For self-employed lone parents and for partners in households where both members of a couple are self-employed the minimum wage for 16 hours per week is used. Where the self-employed earnings exceed the minimum level the actual amounts earned are taken into account. This minimum income figure does not apply for new businesses during a designated start-up period of 12 months. This ensures that the self-employed earnings are calculated in the same way as they are under Universal Credit.
• Principle 5. Everyone in the household should contribute
Non-dependants (other adults in the claimant’s household) are expected to contribute to the household’s Council Tax. Certain exemptions to non-dependant deductions apply including non-dependants who are students and households where a claimant or his partner is in receipt of care component of disability living allowance or daily living component of personal independence payment.
• Principle 6. Council Tax support should not be paid to those with relatively large income or capital /savings
Those with savings or capital exceeding £8,000 are not entitled to Council Tax Support. The capital limit has remained unchanged since the local scheme was first introduced in April 2013.
• Principle 7. The Council should pay the right amount of support at all times
If Council Tax Support has been paid to someone who is not entitled to it or the support paid should have been less, all overpayments are recoverable from the claimants.
The Council’s approach to scheme design was to mirror the assessment process of the national Council Tax Benefit scheme with a number of amendments including an introduction of minimum payments for certain groups of working age claimants.
The maximum percentages of council tax liability for working age claimants in different categories since the introduction of the local CTS scheme have been set as detailed in the report:
For each financial year, each billing authority must consider whether to revise its scheme or to replace it with another scheme. If the Council does not

MIN11
11.  Southall Big Plan - Southall Gateway
Resolved
That Cabinet:

i) notes the progress made on the acquisition of sites by agreement as set out in paragraphs 2.1 – 2.3 of the report.
ii) notes and agrees the revised proposals for delivering the scheme as set out in paragraphs 2.4 – 2.11 of the report.
iii) authorises the Executive Director of Housing & Regeneration and the Director of Legal & Democratic Services to seek a development partner to deliver the Council element of the Southall Gateway scheme as shown on the plan at Appendix 1 on the basis proposed in paragraphs 2.4 – 2.11 of the report.
iv) notes that a further report will be brought back to Cabinet with a recommendation to select and appoint a developer for the scheme.
 Reasons for Decisions and Options Considered
Pursuant to Cabinet decisions in June 2014, February 2015 and September 2017, officers have been pursuing a strategy, in partnership with the Gurdwara Sri Guru Singh Sabha, Southall (‘the Gurdwara’), to bring forward a comprehensive: land assembly; and redevelopment scheme;
Early in 2018, the Gurdwara secured control of the remaining private land parcel adjacent to its own existing site (known as the "Greylands Holdings" site), and in February 2018 the Gurdwara wrote to the Council setting out its intention to bring forward a new Gurdwara and associated development independently of the Council, and confirmed this in a meeting with the Leader of the Council. As a result, Ealing Council and the Gurdwara agreed to bid separately for the remaining Network Rail land parcels. These remaining land parcels were secured by the Council and the Gurdwara in November 2018.
As a result, the land is now secured into two separate ownerships, with the land to the west of the public right of way (the old footbridge, due to be replaced with a new foot and cycle bridge) in the ownership of the Gurdwara, and the land to the east of that point in the ownership of Ealing Council. Appendix 1 of the report shows a plan of the site and its respective current ownerships.
The Southall Gateway Supplementary Planning Document ('SPD') requires the delivery of a new fit-for-purpose place of worship and improved public realm and connectivity across the site, as well as new commercial frontage along South Road and associated new housing development. Council officers believe the SPD can be delivered comprehensively through the two separate land parcels being brought forward in parallel and will continue to work with the Gurdwara team, through pre-application and planning, to ensure that the shared objectives as set out in the SPD are met. Appendix 2 of the report includes a summary of the SPD and how its objectives will be met between the two parties.
Therefore, the Council’s own land, rather than acting as a relocation site for the new temple, will now play a subsidiary role, and will primarily contribute to the new housing objectives and improvements to the public realm, particularly the landing point associated with the new foot and cycle bridge. As public land, in accordance with the draft London Plan and in line with Ealing Council’s own policy priorities, the site will be expected to deliver 50% genuinely affordable housing.
To meet its own aspirations for the delivery of 2,500 new genuinely affordable homes by 2022 and to meet the conditions in the legal agreements with the GLA relating to funding, it is imperative that Ealing Council commences build-out of new homes on its land in Southall Gateway at the earliest opportunity. Therefore, this report aims to seek authority to procure a development partner to bring forward the site on a conditional basis, that 50% of the new homes should be affordable. Appendix 3 of the report sets out a planning brief for the Ealing Council land, to be included in the procurement pack.
Officers have considered the available routes to the market, and the need to secure best consideration through an open competition. Mindful of the cost and length of time required for a full OJEU procurement to take place (approximately 12-18 months) officers have investigated use of an existing framework agreement, from which it is entitled to access and call–off for this project. Previously when existing framework agreements have been investigated, they have been found to be quite restrictive in terms of the number and / or the type of parties who may be involved. However, in August 2018, the Greater London Authority ('GLA') established and announced a new framework agreement called London Development Panel 2 ("LDP2") which is considered to be essentially suitable for use for this type of scheme. LDP2 contains a total of 29 providers (including consortiums) who are able to bid independently of each other for the delivery of individual schemes, and these providers include a range of developers, housebuilders and housing associations, any of which may be interested in the opportunity to bring forward this site. The Council would be required to conduct a mini-competition process in accordance with the framework agreement in order to appoint a provider as the Council's development partner to deliver the scheme. Utilising LDP2 could cut the procurement process to around 6-8 months.
In November 2018 officers carried out a soft market test for the site with four parties including a registered social landlord, two house builders and a developer / contractor. This discussion identified a number of key issues:
Using LDP2 would place some constraints in terms of the need to use the GLA’s standard legal agreements provided for in the framework agreement. However, officers have taken independent legal advice from Bevan Brittan on the forms of contract for use in the framework agreement. Bevan Brittan have advised that, as part of the LDP2 process, the Council must adopt one of the template forms of
•  There are other potential routes to market but the LDP2 panel is considered attractive for all parties
•  50% affordable housing should be feasible on this site as long as all parties are being asked to make offers on a ‘level playing field’
•  The delivery of the Council’s recent affordable housing statement may be more challenging to achieve but this can be explored at the ITT phase
• Including an option for the Council / Broadway living to buy back the affordable units would be more attractive to mainstream house builders than to registered providers
•  Bidders would like to see a planning statement that has been agreed both by LBE planners and the GLA at the outset and would welcome the opportunity for feedback from the planning department during the competition process
•  There is a general concern about the softening of the land and residential sales market in London but Southall remains an attractive location for investors due to its relatively affordable price point in the market.
• call-off contract following conducting a mini-competition exercise. That said, the framework agreement allows for these template contractual documents to be tailored (as appropriate) for a project. As with any procurement process, there is an element of procurement challenge risk, but this can be mitigated by setting clear rules for each stage of the mini-competition process and adhering to the terms of the framework agreement, which should be possible for this project.
• Adjacent to the Council’s land is land owned by PA Housing (formerly ASRA) which is the site of 23 occupied social rented homes. Prior to commencing any marketing process officers will consult with PA housing to ensure that any negative impacts on these residents are minimised and to discuss whether PA Housing itself is interested in bringing forward a redevelopment of the sites in parallel with the Council, which would have wider implications for those residents. This would also have implications for the procurement route the Council chooses when considering disposal of the site as there may be in that case an argument for a special economic interest to prevail. If that is the case officers will revert to Cabinet with an appropriate recommendation in due course.
• Subject to final advice and confirmation, officers intend therefore to use the LDP2 panel as a direct route to market and to launch a competition

  1. Item 12 - CONFIDENTIAL Appendix 1 Tender report
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information);
  2. pdf Item 12 - Appendix 2 - Equality Analysis Assesments (601Kb)
MIN12
12.  Contract Award - Mental Health in the Community
Resolved
That Cabinet:

i) authorises awarding the contract for the provision of mental health in the community Lot 1 to EACH Counselling and Support. The contract will be for a period of four years with an anticipated commencement date of 1st April 2019. The budget for this Lot was a maximum of £120,000 across the four years and is incorporated within the Mental Health revenue budgets.
ii) authorises awarding the contract for the provision of mental health in the community Lot 2 to CAPE, Community Activities Project Ealing with Mind in Ealing and Hounslow.  The contract will be for a period of four years with an anticipated commencement date of 1st April 2019. The budget for this Lot was a maximum of £663,000 over the four years is incorporated within the Mental Health revenue budgets.
 Reasons for Decisions and Options Considered
Mental Health services are undergoing extensive change and transformation both nationally and locally. Along with other areas of health and social care the strategic direction is to support people to build support and resilience within their own communities, neighbourhoods and family and friend networks. Where services are needed they are expected to be provided as close to home as possible and with the least restriction and least loss of independence. When support is needed in crisis this should be available 24 hours a day, 7 days a week, and should be appropriate and accessible for the person and their families, friends and carers.
In relation to mental health, this direction of travel is both rewarding and challenging. People with mental health needs can achieve recovery in their own terms, even if their mental health remains difficult. There is a wealth of evidence that taking part and contributing to society improves mental health. However, people with serious and long term mental health needs face some of the greatest barriers to inclusion, due to stigma and prejudice as well as the disabling affects of their condition and its treatment.
The provision of services in communities which can support those with mental health needs to take part and develop their own social networks and is an essential underpinning part of the transformation of services. This is the rationale behind Lot 2 of this contract. Lot 1 will provide ways in which communities can become more mental health ‘friendly’, promoting wellbeing and challenging stigma.
The Council has followed the Open procurement route under the Light Touch Regime (LTR) requirements of the Public Contract Regulations 2015 (as amended) and is now in a position to select the preferred bidders as the most economically advantageous and the highest quality bid for each lot. In September 2018 the procurement process was launched.
By November 2018, following assessment of the submissions:
For Lot 1 two tenderers were selected to proceed to presentation and interview stage
For Lot 2 three tenderers were selected to proceed to presentation and interview stage. Following this, the final scores were assessed and the successful bidders were identified.
The evaluation of all bids was carried out by a panel consisting of subject matter experts in NHS contract, Drug and Alcohol Commissioning and Mental Health Commissioning. The interview and presentation stage included one person with lived experience of mental health.
The details of the evaluation, scores and outcome of the evaluation is set out in confidential Appendix 1 of the report– Tender Report.

13 Date of Next Meeting

The next meeting will be held on 15 January 2019

 

MIN13
Resolved
That Cabinet notes that the next meeting of Cabinet will be held on 15 January 2019 at 7pm
Paul Najsarek, Chief Executive, 3 December 2018

Additional Meeting Documents

Attendance

Name
No other member attendance information has been recorded for the meeting.
NameReason for Sending Apology
Councillor Jasbir Anand 
Councillor Mik Sabiers 
NameReason for Absence
No absentee information has been recorded for the meeting.

Declarations of Interests

Member NameItem Ref.DetailsNature of DeclarationAction
No declarations of interest have been entered for this meeting.

Visitors

Visitor Information is not yet available for this meeting