Home » Councillors and How the Council Works > Meeting documentation

Meeting documents

Cabinet
Monday, 29th July, 2002

Bath & North East Somerset Council

MEETING:

Council Executive

AGENDA
ITEM
NUMBER

MEETING DATE:

July 29th 2002

TITLE:

Developing a Local Public Service Agreement for Bath & North East Somerset

WARD:

ALL

AN OPEN PUBLIC ITEM

List of attachments to this report:

Appendix One: Detailed Targets and Theme Areas for Bath & North East Somerset Local PSA

Update Report

1 THE ISSUE

1.1 This report updates the Executive on progress made on developing a Local PSA following the adoption by Strategy Committee on 5 February of 18 theme areas for detailed work. It invites the Executive to agree to progress a set of 13 targets (set out in Appendix One) as well as to endorse a timetable to move forward the scheme in order to ensure that the agreed negotiating period (18 November 2002- 24 January 2003) is met.

2 RECOMMENDATION

2.1 That the target areas set out in Appendix One be adopted as the basis for continued work to develop a detailed draft Local Public Service Agreement for Bath & North East Somerset in preparation for the beginning of negotiation with central Government

2.2 That the timetable as set out in Paragraph 4.11 be endorsed

2.3 That detailed work on the projects as set out in Appendix One should involve the relevant Portfolio Holder(s) as well as stakeholders as appropriate

2.4 That the overall financial implications of PSA schemes be considered as part of the Financial Plan review.

3 FINANCIAL IMPLICATIONS

3.1 Agreeing a Local PSA with central government would have significant financial implications. £920,000 is available to Bath & North East Somerset Council from central Government for "pump-priming" new service initiatives to meet Local PSA targets. A maximum of 2.5% of the council's net revenue budget (estimated at £3.6m in the financial year 2002-3) would be available as a performance reward grant if the Council successfully reached the targets set out in the Local PSA. This would have a significant positive impact on the council's financial situation.

3.2 There is also the potential as part of the PSA process to gain access to "Unsupported Credit Approvals" (UCAs) of up to £3m for larger capital items. However, UCAs, unlike mainstream Credit Approvals, do not attract any Government grant to cover the costs of paying back loans taken up to finance the expenditure. Decisions to take-up UCAs as part of the PSA process would need to be taken in the context of the Council's approach to medium-term financial planning. Another factor to consider is the Government's proposed new approach to local finance which would allow greater flexibility for borrowing by councils so long as they had the capacity to repay the loans within a so-called "prudential framework".

3.3 Throughout the development of the Local PSA in Bath & North East Somerset, close attention has been paid to linking the council's resource planning with the targets and projects within the Local PSA proposal. The Financial Plan review process that is to be undertaken in 2002 is one in which local and national priorities need to be balanced in terms of the Council's available resources. Within the current plan, all known available capital resources are committed and revenue spending pressures already show that we plan to spend more than would be desirable to achieve low Council Tax increases (known as the "net revenue shortfall"). Therefore approval of PSA targets which have significant capital resource requirements have the potential to further widen these shortfalls in resources if other demands on funds are not reduced or diverted. Theme areas G (waste recycling) and J (access to sport and leisure) in Appendix One make reference to such projects. It would be part of the review of the Financial Plan to incorporate these and other pressures within it if the benefits of achieving targets within the PSA are seen to outweigh the costs to the Council overall. The exact mechanism for funding and its consequences would be part of the consideration of elements of the financial plan review, such as the exercise to look at the shortfall in future capital resources. Where agreed schemes have ongoing revenue consequences these will also need to be incorporated into the Financial Plan. Theme area M (public conveniences) has been particularly highlighted in this respect)

3.4 It is currently possible to develop, negotiate and monitor a Local Public Service Agreement from within the staffing budget currently allocated to the Corporate Projects Team. However, a sum of £50,000 has been allocated in the Council's Financial Plan for support for implementation of Public Service Agreements and service performance.

4 THE REPORT

Background to Local Public Service Agreements (Local PSAs)

4.1. Local PSAs have the potential to lever in additional funds for key services, making a significant positive impact on the well-being of the area. They are intended to improve local performance in key areas more quickly and/or to a higher level than would otherwise be the case. Local PSAs are agreements made between individual local councils and the Government, generally agreed for three years at a time. The Council has agreed with the Government that its preferred timetable for negotiating a Local PSA is November 2002-January 2003, so that the PSA can be incorporated into the Budget and Financial Plan and start in April 2003.

4.2. Under a Local PSA, the council identifies and undertakes to deliver targets for key outcomes. The exact nature of the targets and resources are settled by bilateral negotiation and agreement. The Government generally provides the following to assist councils with meeting these more stretching targets:

4.2.1. "Flexibility" in regulation and/or legislation where this would assist with meeting the target

4.2.2. £920,000 (in the case of B&NES) of "pump-priming" funds

4.2.3. The opportunity to receive substantial Unsupported Credit Approvals (possibly up to £3m) for capital expenditure required to meet agreed Local PSA targets

4.2.4. A performance incentive of up to 2.5% of the Council's net budget requirement (£3.5m) if targets are met. Each target is assessed separately for the purpose of allocation of the performance reward grant.

4.3. PSAs are currently being rolled-out across top-tier authorities and cover a wide range of local schemes and priorities. All targets must be "stretching"- i.e. over and above what would otherwise be achievable given planned resources. Each parcel of funding is linked to a commitment on behalf of the council to work towards an ambitious stretch target for the relevant service area.

Progress on Developing a Local PSA for Bath & North East Somerset

4.4. Strategy Committee agreed in February that 18 theme areas be investigated for potential PSA targets. Further work has narrowed this down to 13 areas, and these are set out in Appendix One. Analysis of performance targets has been undertaken to ensure there is sound information to inform the negotiations with Government about "stretch" targets. It is important that these targets are ambitious but realistic and soundly-based as they will determine the exact circumstances in which any performance reward grant would be paid to the Council following the completion of a PSA.

4.5. The final PSA will require careful balancing of priorities and resources. The current Local PSA Prospectus requires "around a dozen" targets: the majority of these targets must come from a nationally agreed list, and the rest can be "local" targets. The national list contains 35 targets from a wide range of categories. However, as a minimum, each PSA must contain the following:

· a measure of improved cost-effectiveness (Target A in Appendix One)

· at least one national target relating to transport (Target B in Appendix One)

· at least one national target relating to social services (Target C in Appendix One)

· at least one national target relating to education (Target D in Appendix One)

· at least one more national target relating to either education or social services (Target E in Appendix One)

4.6. The remaining targets consist of 3 more national targets (Targets F,G, H in Appendix One) and 5 local targets (Targets I,J,K,L,M in AppendixOne). Most PSAs so far have contained a total of 12 targets.

4.7. The worked-up theme areas contained in Appendix One include a mix of targets to ensure that the PSA meets overall Government requirements whilst allowing flexibility within the process. For example, it is expected to become clearer shortly whether target F (secured car parking) will require PSA funding or whether funds are available from a separate source.

Trades Unions Consultation

4.8. Discussions have been held at corporate level with the Trades Unions on Local PSAs and the potential for levering-in additional resources to the Council. As PSA targets are developed they are subject to consultation through the Joint Consultative Forum machinery.

4.9. This report was circulated to Trades Unions for comment on 11th July. Any comments received will be reported to the meeting.

Next Steps for Developing a Local PSA for Bath & North East Somerset

4.10. The target areas set out in AppendixOne, should they be approved, provide the basis for the next stage in developing the PSA. The next stage of the project plan requires:

· ensuring that PSA schemes are congruent with available PSA resources;

· re-examining opportunities for partnership working to meet targets and lever in resources;

· ensuring that linkages between PSA schemes are made and possible economies of scale fully explored;

· calculating the exact additional resources required for each theme area, ensuring that the full costs of schemes (including on-costs and inflation) are fully accounted for;

· ensuring that PSA themes link to the Financial Plan review

· seeking linkages and economies of scale with other Councils' PSAs;

· agreeing an overall approach to the allocation of any Performance Reward Grant which the Council might receive;

· completing consultation with Trades Unions on specific schemes, through the JCFs;

· finalising and risk-assessing specific "stretch" targets;

· ensuring that the case for any requested freedoms and flexibilities is soundly-based.

4.11. Signing a Local Public Service Agreement is one of the most significant decisions a council can make. Under the Council's constitutional framework, it is the Council's role to agree the Policy and Budget Framework, and for the Executive to work within this. Therefore, any final Local Public Service Agreement must be agreed by Council, linked to the Financial Plan and Budget. This can be achieved through the following timetable:

July-October 2002 Further work on detail and preliminary discussions with LGA and government

6th November 2002 Executive agrees Local PSA targets for negotiation with government

18 November 2002 - Negotiations

24 January 2003

5th February 2003 Executive makes recommendation to Council based on outcome of negotiations

20th February 2003 The PSA is presented to council for adoption as part of the Financial Plan

April 1st 2003 PSA begins.

Contact person

Andy Thomas, 01225 394322

Background papers

Local Public Service Agreements (PSAs) - New Challenges

Letter from LGA to Chief Executives dated 24 January 2002

Strategy Committee Report

Appendix One: Draft Targets for a PSA for Bath & North East Somerset

REF

THEME AREA

SUMMARY OF SCHEME / TARGET

LEAD DIRECTOR

PORTFOLIO HOLDER (S)

A

2% efficiency savings or more

This target is designed to measure the performance and cost of a "basket" of services over the life of the PSA. Further Guidance is expected to be issued by the Government on how this indicator is to be measured, although contact has been made with those Councils who have piloted this methodology to ensure that the Council can be in a position to develop the appropriate measures.

Jean Hinks

Cllr Crossley, Cllr Todd, Cllr Dawson

B

Improving public transport

The Council's Local Transport Plan sees the development of Bus Quality Partnerships as essential to provide "a credible alternative to car use for local trips". This scheme is designed to increase bus use by investing in schemes linked to the Quality Partnership process. A Draft Quality Partnership agreement was agreed by the Council Executive on 16th July, and it is the Council's intention to extend the opportunity to enter such agreements to all Bus Operators in the next twelve months. The types of scheme proposed under the Quality Partnership approach include bus priority measures to speed up journey times, new bus shelters, improved information for bus passengers and the introduction of "Showcase" routes.

Clive Thomas

Cllr Metcalfe

C

Increasing the proportion of older people supported to live in the community

The aim of this scheme is to increase the proportion of older people in B&NES who are able to remain living at home. This can be achieved by refocusing home care services and investing in practical support services such as pilot home cleaning, shopping, gardening and decorating services. Speedier home repairs assistance grants will be promoted for smaller adaptations work and Disabled Facilities Grants will be able to start before a tenancy has been signed or occupied. A "telecare" trial will be introduced and a fast-track system for adaptations to listed buildings established.

Jane Ashman

Cllr Tapper

D

Increasing school attendance

The aim of this scheme is to improve pupil attendance rates in secondary schools through:

· working with school staff to ensure the prompt identification and follow -up of absent pupils.;

· establishing initial periods of intensive support to establish new routines or overcome particular difficulties;

· undertaking targeted work including audit of school attendance processes, enhancement of home visits and work with other agencies- e.g. through "Truancy Sweeps"

Education Welfare Assistants would be recruited to carry out this work.

David Williams

Cllr Curran

E

Improving educational attainment for young people leaving care

This project would include the following:

· Increasing and extending existing education support and catch-up tuition for looked-after children, focusing on over-16s as well as 14-16 year-olds

· Providing software and support to help looked-after children benefit from the use of IT

· Pump-priming partnerships with schools and post-16 providers.

The Council wishes to include in the target NVQ level 2 qualifications- equivalent to 5 grades A-C at GCSE- as these are of equal value to the young people who obtain them.

David Williams

Jane Ashman

Cllr Curran, Cllr Tapper

F

Reducing vehicle crime (through Secured Car Park status)

The Council requires capital resources for investment in Secured Car Park status - further work is continuing on exact PSA requirements. A further option being considered is the introduction of credit card machines in Car Parks to reduce cash-based crime.

Jane Ashman

Clive Thomas

Cllr Metcalfe, Cllr Hedges

G

Increasing waste recycling

In order to achieve a "step increase" in the Council's recycling performance, two schemes are being put forward as part of the PSA target. These are:

Bulky Waste Recycling at Household Waste and Recycling Centres

The average recycling rate at HWRCs is currently 37%. Increasing staffing levels at peak time to direct and help customers to segregate their waste, as well as installing covered storage facilities to allow further recycling of bulky waste, would lead to a "stretch" increase in the Council's recycling rate.

New Household Waste and Recycling Facility in Bath

The ability to expand recycling at the current HWRC in Bath is limited due to size constraints. The site is also earmarked for development as part of the Western Riverside scheme. A new site is planned on the outskirts of the City of Bath - this will also service a wider population due to its accessibility. The site will be designed to maximise recycling (including commercial waste facilities) from the outset. Again, this would provide a significant increase in the council's recycling rate. If this facility were to be part of the Council's PSA negotiation, it would require access to an Unsupported Credit Approval of £2m, and a revenue steam of £200,000, as well as financing costs. It will be important for a sound business case (counterbalancing costs with potential savings) to be presented for such a scheme and for all financial implications (capital and revenue) to be considered within the context of the Council's overall capital Financial Plan.

Clive Thomas

Cllr Symonds

H

Reducing accidental death and injuries in domestic fires

This project aims to reduce the number of deaths and injuries arising from accidental fires in dwellings. The approach to achieving this target is to improve Fire Safety through initiatives such as the installation of "Fire Angel" smoke alarms, a publicity campaign (for example, on chip pans and hazardous furniture). The scheme also could provide for secondment of a Fire Safety Officer.

Jane Ashman

Cllr Hedges

I

Improving access to employment for people with disabilities

This project is based around enabling people with disabilities to gain access to the labour market, working with JobCentre Plus (the now merged employment service and benefits agency). The project could include focusing on a particular sector (e.g. tourism) and raising awareness about employment opportunities, developing pathways which include training and development, work trials, supported employment and mentoring. Another option would include working through the B&NES Local Strategic Partnership to ensure that a small number of large organisations (e.g., the Police, Council, Health and Education sectors) are pro-active. In addition, there are a number of social entrepreneurs who could be assisted to provide appropriate employment opportunities. Partnership arrangements are currently being developed to deliver these targets.

Clive Thomas

Cllr Symonds, Cllr Hedges, Cllr Tapper

J

Improving health through access to sport and leisure

The aim of this project is to secure reductions to baseline indicators (to be established early in the life of the PSA) in the number of B&NES residents at risk of coronary heart disease, obesity and osteoporosis due to lack of an active lifestyle. Key projects would include additional equipment and promotion, personal counselling and targeted discounts, as well as improved transport to enable schoolchildren to access sports centres. Discussions on this project have taken place with the Primary Care Trust, British Heart Foundation and Sport England.

Currently there is no "one-court" indoor sports/leisure facility that is available to the community in Midsomer Norton for basketball, badminton and five-a-side football. Access through the PSA to an Unsupported Credit Approval of £300,000 could, in conjunction with potential New Opportunities Fund money, provide such a facility for both educational and community use. Full capital and revenue implications of this scheme would need to be considered within the context of the Financial Plan.

Peter Rowntree

Jane Ashman

Cllr O'Flaherty

Cllr Tapper

K

Reducing stays in Bed and Breakfast accommodation

This target is twofold: to increase the proportion of homelessness applications on which the authority makes a decision within 33 working days and to reduce the average number of households in B and B accommodation. It aims to do this by:

· liaising with housing providers to expedite re-housing of homeless people currently in B&B;

· ensuring that vulnerable people have comprehensive care packages in place;

· introducing mechanisms to make simpler medical assessments in-house: use of the current Community Medical Officer system has been identified as the main cause for decisions/notifications taking longer than 33 working days;

· streamlining the Homelessness Review procedure;

PSA pump-priming funds will be used to employ an officer to implement these proposals and to improve medical assessment in order to speed up procedures.

Jane Ashman

Cllr Hedges

L

Improving library services

It is proposed that investment be targeted on improving Public Library Standards as established by the Department of Culture, Media and Sport. This would mean increasing the number of visit and the percentage of users reporting success in obtaining a book. Schemes include:

· purchase of new books and other materials, in line with the Audit Commission report "Building Better Library Services";

· improvements to the quality of the library environment;

· introducing on-line payments (e.g. for book reservations) and self-issue machines, improving customer service and making better use of staff resources.

Sarah Berry

Cllr O'Flaherty

M

Improving public conveniences

Additional capital and revenue resources are required to improve the quality of current provision. PSA investment would take the form of refurbishment of existing toilets and/or investment in automatic public conveniences. In some cases, this additional investment would take place alongside closure and rationalisation of existing facilities. It is important to note that there will be some ongoing revenue costs associated with this. A sound business case will need to be presented for such a scheme and the full capital and revenue implications considered within the context of the Financial Plan.

Performance indicators used to measure this PSA target could include levels of public satisfaction, disabled access, provision of baby changing facilities and 24-hour access.

Clive Thomas

Cllr Symonds