Meeting documents
Cabinet
Wednesday, 6th November, 2002
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Bath & North East Somerset Council |
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MEETING: |
Council Executive |
AGENDA |
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MEETING DATE: |
6 November 2002 |
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TITLE: |
LOCAL PUBLIC SERVICE AGREEMENT FOR BATH & NORTH EAST SOMERSET- PREPARATIONS FOR NEGOTIATION PROCESS |
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WARDS: |
ALL |
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List of attachments to this report: APPENDIX ONE: DETAILED TARGETS FORMING THE BASIS OF THE NEGOTIATING DOCUMENT FOR THE LOCAL PSA |
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1 THE ISSUE
1.1 The Council Executive agreed on 29th July to work up targets for 13 theme areas to seek to negotiate a Local Public Service Agreement (PSA) with central Government in the period between 18th November and 24th January. This built on extensive work already undertaken to draw up a shortlist of targets which addressed the Council's strategic concerns and provided for measurable improvements in outcomes for service users. This report updates the Council Executive on progress made since then on the Local PSA and requests the Executive to approve the detailed proposals around which the Local PSA negotiating documentation will be built, and the process for handling the PSA as it is developed and negotiated.
2 RECOMMENDATION
2.1 That the Executive approve the theme areas, project summaries, indicators, areas for freedoms/flexibilities and funding bids set out in Appendix One as the basis for opening negotiations with the Government on a Local PSA beginning 18th November 2002.
2.2 That the Executive request officers to prepare detailed negotiating and supporting documentation, as required by the Office of the Deputy Prime Minister (ODPM), based on these proposals, and this documentation be agreed by the Council Leader and Portfolio Holder for Customer Satisfaction, Best Value, and E-Government.
2.3 That a report setting out the outcomes of the PSA negotiations be prepared for the Executive on 5th February 2003 for recommendation to Council as part of the Financial Plan on 20th February 2003.
2.4 That PSA pump-priming funds and any Unsupported Credit Approval (UCA) bids be integrated into the Service and Budget Planning process.
2.5 That the Executive consider any comments made by the Corporate Issues & Partnerships Overview and Scrutiny Panel at its meeting on October 28th.
3 FINANCIAL IMPLICATIONS
3.1 Signing a Local PSA Agreement would open up three new streams of funding to the Council
(1) £920,000 of Government cash for use in pump-priming the PSA schemes
(2) Unsupported Credit Approvals (UCAs) to finance the projects. These are permissions to take up loans which the Council would then pay back from its own resources. The exact level of these UCAs would be subject to negotiation
(3) Performance Reward Grants (PRGs) of up to £3.5m which would be paid to the Council at the end of the three years of the PSA if the Council met its agreed "stretch" targets. The PRG is parcelled out equally to each target - which means Councils do not have to meet all of the targets to receive some of the reward grant, nor does this grant need to be spent on specific target areas.
3.2 Each of these funding streams must be carefully managed and assessed against risk, and built into the Council's overall financial planning and capital arrangements. Each PSA scheme has been analysed for revenue and capital implications, and the Council has also considered how the end of each PSA scheme will be dealt with after the three years. The implications of access to Unsupported Credit Approvals (UCAs) are complex. At the moment, due to its debt-free status, there is no reason for the Council to use these UCAs. However, when the Council is required again to borrow in order to fund capital schemes these additional flexibilities will be a useful addition to the capital resources the council has at its disposal.
4 THE REPORT
4.1 A Local Public Service Agreement is a negotiated document between central and local government. If successfully agreed, the Council will receive £920,000 up-front in pump-priming grants and a significant amount in loan approvals. In return, Councils must agree to "stretch" a mixture of national and local targets over and above what would be achieved without the PSA. If the Council meets all its targets as set out in the PSA it will be entitled to around £3.5m of Performance Reward Grant. PSAs generally last for three years.
4.2 The Executive agreed on 29th July to pursue a negotiated PSA in the period November-January 2002, built around a set of 13 target areas. Since this issue was last discussed by the Executive on 4th September, a number of uncertainties for the PSA have been resolved. Crucially, the Council has now received the Government's proposals for theme areas in transport, crime, social care/health and education. In all four cases, these areas have been consistent with the Council's own proposals. The Council has also received a reply to its letter of 20th September (arising from a recommendation approved at the Executive meeting of 4th September) querying a £1.5m cap on UCAs which the ODPM was suggesting for the Council's bid. The reply suggests that the Council was indeed correct to question the assumptions upon which the Government's view was based and it now seems likely that the Government will be more flexible on this issue. As a result, a UCA bid of around £1.9m is being prepared comprising schemes as set out in Appendix One.
4.3 Sufficient detailed work has been undertaken on the targets to provide the basis for fruitful negotiations with central government. A "Roundtable" was held in August for all PSA Lead Officers, which contributed to improvements in the quality of targets and to a joined-up approach. Trades Union representatives participated in this roundtable. Considerable progress has also been made on working with partners on the detail of specific target areas. In a number of areas this has led to levering-in of partnership funds. Following this work, the total of pump-priming bids has now been brought into line with the £920,000 available from the Government in pump-priming funds.
4.4 The Government is prepared to offer the Council various freedoms (eg changes to regulations) where the current system impinges on its ability to get things done. Work on the PSA has identified a range of areas where such flexibilities would assist the Council. For each of these requests, specific and detailed justification will be required for the negotiation documents.
4.5 As a result of the work described in 4.2-4.4 above, it is now possible to set out (attached in Appendix One) the detailed proposals which will form the basis of the document upon which the Council will negotiate a PSA. For each indicator, the negotiating document will contain "stretch" performance data: this is the addition to the target which is being provided by the PSA. These "stretch" targets and their justifications are likely to form the major part of the negotiation between the Council and central government departments. As the PSA targets are firmed up, service areas will be required to deliver an implementation plan for their schemes, and each target will be entered into the Council's performance management system for rigorous monitoring against indicators and milestones.
4.6 The development of a Public Service Agreement for Bath & North East Somerset has been subject to discussions with Trades Unions. This has led to a number of points being raised which have been incorporated into the proposal. The issue was also discussed at the Best Value Officer / Trade Union Liaison Group on 17 October.
4.7 Timetable for developing a Local PSA in Bath & North East Somerset
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Council Executive |
6th November 2002 |
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Negotiations |
18th November 2002 -24th January 2003 |
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Negotiation outcomes to Council Executive |
5th February 2003 |
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Executive report to Council |
20th February 2003 |
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PSA operative |
1st April 2003- 31st March 2006 |
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Contact person |
Andy Thomas, 01225 394322 |
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Background papers |
Letter from Richard Gibson, ODPM, to Bath & North East Somerset Council dated 25 September Guidance on supporting documentation for Local PSA proposals (ODPM) Developing a Local Public Service Agreement for Bath and North East Somerset, Council Executive Report July 29 2002 |
APPENDIX ONE: DETAILED TARGETS TO FORM THE BASIS OF THE NEGOTIATING DOCUMENT FOR THE LOCAL PSA
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Objective 1: |
Improving cost-effectiveness |
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Approach: |
Build a basket of indicators into the Council's performance management system and work with the Local Strategic Partnership (LSP) to develop cross-agency measures for public service outcomes. |
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Stretch Indicator: |
National Target 10 (mandatory) - Cost-effectiveness index |
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Pump-Priming: |
None |
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Extra freedoms: |
None currently |
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Objective 2: |
Increase bus usage |
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Approach: |
Implement measures to improve bus quality and information provision |
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Stretch Indicator: |
National Target 9 - Local bus services (million passenger journeys per year) |
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Pump-Priming: |
£95,000 |
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Unsupported credit approval: |
£95,000- Bus infrastructure |
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Extra freedoms wanted: |
Freedom to address tour bus issues in Bath - e.g. through a quality contract approach. It will be important to ensure any such initiative links to approaches currently being pursued in this area. |
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Objective 3: |
Improve the quality of life and independence of older people |
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Approach: |
By increasing the proportion of older people in Bath & North East Somerset who are receiving intensive home support for the period of time they need it to be able to remain living at home |
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Stretch Indicator: |
National Target 5-Households receiving intensive home care per 1000 population aged 65 or over plus 2-3 additional indicators to be determined |
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Pump-Priming: |
£163,000 |
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Extra freedoms wanted: |
Disabled Facilities Grants to be able to start before a tenancy has been signed or occupied |
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Objective 4: |
Improve pupil attendance in secondary schools |
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Approach: |
Through the targeted deployment of Education Welfare Assistants |
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Stretch Indicator: |
National Target 3 - Percentage of half days missed due to absence in secondary schools maintained by the authority |
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Pump-Priming: |
£90,000 |
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Extra freedoms wanted: |
Stability of central Government policy regime governing pupil attendance |
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Objective 5: |
Improve educational attainment for young people leaving care |
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Approach: |
By building partnerships with post-16 providers and tailored
support for |
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Stretch Indicator: |
National Target 6 - % of young people leaving care aged 16+ obtaining 5 or more GCSEs at grades A*-C or NVQ equivalent |
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Pump-Priming: |
£82,000 |
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Extra freedoms: |
None currently |
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Objective 6: |
Reduce vehicle crime |
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Approach: |
By investing in Secured Car Park Status and pump-priming innovative solutions to vehicle crime |
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Stretch Indicator: |
Vehicle crimes per 1000 population |
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Pump-Priming: |
£10,000 |
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Extra freedoms wanted: |
None currently |
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Unsupported credit approvals required |
£295,000- comprising as follows Newbridge Park and Ride site, Bath- investment to achieve Secured Car Park status (£220,000) Lansdown Park and Ride site, Bath- to achieve Secured Car Park status (£50,000) Smaller-scale community safety improvements in car parks (£25,000) |
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Objective 7: |
Improve waste recycling |
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Approach: |
By investing in improvements at waste recycling centres |
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Stretch Indicator: |
Local Indicators: % of trade waste (including rubble) which is recycled % of household waste (including rubble)at Household Waste and Recycling Centres which is recycled |
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Pump-Priming: |
£99,000 |
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Extra freedoms wanted: |
None currently |
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Unsupported credit approvals required |
£1m- Contribution towards relocation of Household Waste and Recycling Centre as part of comprehensive regeneration of Western Riverside area of Bath |
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Objective 8: |
Reduce the incidence of accidental fire-related deaths and injuries in the home |
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Approach: |
Joint initiative between the Council and Fire Brigade to target high-risk premises |
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Stretch Indicator: |
Local indicator: Number of deaths and injuries arising from accidental fire in dwellings per 100,000 population |
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Pump-Priming: |
£67,000 |
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Extra freedoms |
Ability to impose a tighter regime for sprinkler systems in domestic buildings |
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Objective 9: |
Improve access to sustained employment to people with disabilities |
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Approach: |
Through a partnership that will deliver mentoring, support, placements and access improvements. |
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Stretch Indicator: |
National Target 15 - Number of disabled people entering into employment from key benefit claimants within Bath & North East Somerset. Number of employers who are granted the "Positive about disabled people" award given by Job Centre Plus. |
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Pump-Priming: |
£75,000 |
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Extra freedoms wanted: |
The Council is currently examining freedoms and flexibilities negotiated for this target by Manchester City Council, especially those relating to information-sharing across agencies and use of local labour conditions in contracts. |
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Objective 10: |
Improve health through access to sport and leisure |
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Approach: |
By reducing barriers to participation and developing projects which encourage exercise |
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Stretch Indicator: |
Local Indicators: Number of visits to sports centres per 1,000 population The percentage of young people in Year 9 who have participated in sports or physical activity in the past year in their leisure time out of school lessons. (Sport England definition) |
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Pump-Priming: |
£90,000 |
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Unsupported credit approvals |
£300,000- In conjunction with New Opportunities Fund moneys, contribute towards provision of capital cost of an indoor sports/leisure facility in Midsomer Norton for both educational and community use. |
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Extra freedoms wanted: |
Amendments to Councils' VAT Partial Exemption rules are needed to help lever in financial support from the New Opportunities Fund Physical Education & Sport Programme, in order to meet the Council's target of widening participation in active lifestyles |
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Objective 11: |
Reduce stays in Bed and Breakfast for homeless people |
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Approach: |
Improve Average Homelessness Decision Time and deliver health assessments more quickly |
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Stretch Indicator: |
Local Indicators: Average number of households in Bed and Breakfast accommodation Proportion of homelessness applications on which the authority makes a decision and issues written notification to the applicant within 33 working days |
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Pump-Priming: |
£99,000 |
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Extra freedoms wanted: |
None currently |
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Objective 12: |
Improve library services |
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Approach: |
By investment in materials and customer service systems in line with Audit Commission report "Building Better Library Services" |
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Stretch Indicator: |
Local indicators: % of population who have used their library ticket in the past year % of residents satisfied with libraries |
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Pump-Priming: |
£50,000 |
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Unsupported credit approvals |
£61,000 - New cash management, on-line payment systems and self-issue machines in libraries. Note: there is also an ongoing revenue requirement for cash management system of £2610 pa |
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Extra freedoms |
None currently |
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Objective 13: |
Improve the competitiveness of our city and town centres |
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Approach: |
By investing in improved services for users of town and city centres to improve accessibility |
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Stretch Indicator: |
Local indicators: % satisfied with public conveniences; other indicators to be determined |
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Pump-Priming: |
None |
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Unsupported credit approvals |
£131,000- comprising as follows Investment in three new automatic public conveniences with 24-hour access and baby-changing facilities. (£81,000). Note: there is an ongoing gross revenue cost of £23,000 p.a. per unit Capital works for signage, seating and pedestrian improvements in City/Town centres (£50,000) |
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Extra freedoms: |
None currently |
Financial summary of PSA projects
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Annual revenue requirement £ |
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1 |
Improve cost-effectiveness |
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2 |
Increase bus usage |
95,000 |
95,000 |
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3 |
Quality of life for older people |
163,000 |
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4 |
Pupil attendance |
90,000 |
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5 |
Education for young people in care |
82,000 |
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6 |
Reduce vehicle crime |
10,000 |
295,000 |
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7 |
Improve waste recycling |
99,000 |
1,000,000 |
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8 |
Reduce fire deaths |
67,000 |
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9 |
Access to employment for disabled people |
75,000 |
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10 |
Better health through sports |
90,000 |
300,000 |
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11 |
Reduce B&B stays for homeless people |
99,000 |
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12 |
Improve library services |
50,000 |
61,000 |
2,610 |
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13 |
Improving City/Town centres |
131,000 |
69,000 |
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920,000 |
1,882,000 |
71,610 |