Agenda, decisions and minutes

Apologies for absence were received from Councillor B Young.

It was noted that Michelle Grady (Assistant Director – Strategic Finance) was attending the meeting on behalf of Andrew Crookham (Executive Director – Resources).

No interests were declared.

Councillor M J Hill, OBE, the Leader of the Council, stated that formal statements were awaited from the Government on the devolution proposals for Greater Lincolnshire.

The incidence of coronavirus had remained relatively low in Lincolnshire, but preparations had been made for any increase in cases.

RESOLVED

That the minutes of the meeting of the Executive on 7 July 2020 be confirmed as a correct record.

(To receive a report from the Executive Director – Adult Care and Community Wellbeing and the Executive Director – Commercial, which seeks approval of funding from the Extra Care Housing Capital Programme for Lincolnshire to LACE Housing Ltd through a Funding Agreement to support the development of The Linelands)

(1)   That the payment of a sum of £1.99m from the Extra Care Housing Capital Programme for Lincolnshire to LACE Housing Ltd through a Funding Agreement to support the development of The Linelands be approved.  Lincolnshire County Council and LACE Housing Ltd will enter into a Nominations Agreement and Funding Agreement to secure nomination rights for Lincolnshire County Council on 20 units, through a process of first refusal with no void risk.

(2)   That the Executive Director for Adult Care and Community Wellbeing, in consultation with the Executive Councillor for Adult Care, Health and Children's Services, be delegated authority to determine the final form, and approve the entering into of all legal documentation necessary to give effect to the above decision.

Following an introduction from Councillor Mrs P A Bradwell, OBE, the Executive Councillor for Adult Care, Health and Children Services, the Assistant Director, Corporate Property and the Assistant Director, Frailty and Long Terms Conditions, presented the report.

The Executive considered proposals to release £1.99 million from the capital programme, to develop an extra care housing scheme of 43 units at the Linelands site in Nettleham, via a partnership between Lincolnshire County Council and LACE Housing Limited.  The County Council would have nominations rights for 20 of the units for a 30-year period, with no void risk. It was reported that since the report had been published, LACE Housing Ltd had confirmed its approval of the scheme.  

The proposal would provide choice and help older adult residents to live independently for as long as possible within their communities.  Work was expected to commence in the spring of 2021, subject to the approval of the Executive.   

The Chairman of the Overview and Scrutiny Management Board presented the comments of the Adults and Community Wellbeing Scrutiny Committee, which had considered the proposals on 1 September 2020.  The Committee had wholeheartedly supported the proposal and looked forward to further extra care housing schemes being developed.

The Executive also recorded its support for the proposal, in particular as it would support independent living and the officers responsible for the scheme were thanked for bringing it forward.

RESOLVED

(1)   That the payment of a sum of £1.99m from the Extra Care Housing Capital Programme for Lincolnshire to LACE Housing Ltd through a Funding Agreement to support the development of The Linelands be approved.  Lincolnshire County Council and LACE Housing Ltd will enter into a Nominations Agreement and Funding Agreement to secure nomination rights for Lincolnshire County Council on 20 units, through a process of first refusal with no void risk.

(2)   That the Executive Director for Adult Care and Community Wellbeing, in consultation with the Executive Councillor for Adult Care, Health and Children's Services, be delegated authority to determine the final form, and approve the entering into of all legal documentation necessary to give effect to the above decision.

(To receive a report from the Executive Director – Resources which invites the Executive to note the current position on the revenue budget)

That the current position on the revenue budget be noted.

A report by the Assistant Director – Strategic Finance on Revenue Budget Monitoring set out the Council's expenditure of the approved budget for quarter 1 of 2020-21, with explanations for any significant variations.

A revenue overspend of £3.555 million (excluding schools) for 2020-21 had been forecast, although an underspend of £6.948 million on capital financing charges had not been included in the forecast.

The financial impact of the Covid-19 pandemic was reported by service area had been summarised in Appendix K to the report.  Up to 30 June 2020, costs and losses of approximately £7 million had been reported, with forecast costs and losses of up to £43 million, which included one-off, ongoing and contingency sums, such as the supply of personal protective equipment.   Approximately £40 million of specific emergency grant for the council's Covid-19 response had been received.

The Chairman of the Overview and Scrutiny Management Board presented the comments from the Board's consideration of the report on 27 August 2020.  These included a request for more information on savings which had accrued as a result of the Covid-19 pandemic; and the activities of the Local Government Association in seeking increased funding for local government.

The Executive raised the following points:

·           The reported overspend on children's social care had arisen as a result of the plans to open new care homes in Lincolnshire, which had been planned prior to the Covid-19 pandemic, had not yet been progressed owing to the impact of the pandemic. 

·           The home to school transport overspend specifically related to the impact of the required social distancing requirements as a result of Covid-19.

·           It was confirmed that the £40 million of specific emergency grant had included a contingency sum for any impact of Covid-19 during the autumn and winter of 2020.

·           The County Council's strong financial position reflected its prudent approach to managing its budgets, compared to other local authorities, many of which relied on income generated by commercial assets, such as car parks or property, which were currently providing limited income.

·           The Government's comprehensive spending review had been expected during the autumn of 2020, with a three-year spending settlement.  However, the impact of the Covid-19 pandemic could delay this.  It was noted that the medium term financial strategy would be considered by the Executive on 3 November 2020, prior to the County Council on 11 December 2020. 

RESOLVED

That the current position on the revenue budget be noted.

(To receive a report from the Executive Director – Resources which invites the Executive to note the current position on the capital programme)

That the current position on the capital programme be noted.

Consideration was given to a reportby the Assistant Director – Strategic Finance on Capital Budget Monitoring, which provided an update on capital spending for quarter 1 of 2020-21, with explanation for any significant variations. 

There had been a forecast underspend of £23.352 million owing to a slippage in some of the capital schemes, as opposed to funding which was not required.  Capital programme costs arising from the Covid-19 pandemic had been reported in the revenue budget monitoring report, as detailed in Minute 11 above. 

The Chairman of the Overview and Scrutiny Management Board presented the comments from the Board's consideration of the report on 27 August 2020.  These included reference to whether there was any further scope to limit overspending on highways schemes, through improvements to forecasting the cost of capital programme projects.  In response, it was stated that work was in hand to managing pressures to match the profiling and smooth the capital financing costs.

During consideration of this item, the following points were noted:

• The slippage in the Fire and Rescue fleet renewal scheme was being recovered and would be completed by January 2021.
• Congratulations were recorded for the funding obtained to enable the delivery of the Spalding Western Relief Road scheme, including the contributions from all the partners.
• It was noted that on rare occasions there were exceptional circumstances, which could not have been foreseen by the County Council, leading to increased expenditure on capital schemes.  An example of this was the insolvency of the original contractor for the Lincoln Eastern Bypass. 
• Improvements had been made to the oversight of expenditure on the capital programme, including the establishment of an officer review group, which provided internal challenge to programme lead officers.
• Any increases in costs for any capital scheme was challenged.  

RESOLVED

That the current position on the capital programme be noted.