Decisions

An update on the Samlesbury Aerospace Enterprise Zone.

The Cabinet approved the recommendation(s) as set out in the report.

A report on Eden Project North.

The Cabinet approved the recommendation(s) as set out in the report.

The Cabinet approved the recommendation(s) as set out in the report.

In line with the county council's procurement rules, this report sets out a recommendation to approve the commencement of the following procurement exercises:

(i) Supply of groceries, drinks and frozen food products

(ii) Grounds maintenance services

(iii) Waste concessions contract

This is deemed to be a Key Decision and the provisions of Standing Order C19 have been complied with.

The Cabinet approved the recommendation(s) as set out in the report.

The Lancashire Visually Impaired Forum invited the Highways Service to attend their meetings and asked that consideration be given to developing a Street Charter based on the Royal National Institute of Blind People's toolkit as part of their Inclusive Journeys campaign.

Officers have worked with the Lancashire Visually Impaired Forum and with officers from Preston City Council to develop the attached document at Appendix 'A' which draws together existing policies and procedures relating to the management of the public realm. Cabinet approval is sought for the approval of the Street Charter (Appendix 'A' refers) as an advice document to inform public realm work in the Preston City area as a pilot scheme and to engage with the remaining 11 district councils in Lancashire with a view to agreeing similar approval of the Street Charter.

The Cabinet approved the recommendation(s) as set out in the report.

Resolved: That the minutes of the meeting held on 15^th October 2019 be confirmed and signed by the Chair.

Matters Arising

Improvement in Occupational Therapy Performance and Disabled Facilities Grant Activity

CC Crompton had raised a question at the September CCPI meeting on whether there was a system in place whereby anybody due for hospital discharge could be matched up with the right adapted property for their needs. Sue Lott had confirmed she would take this matter up with the districts as they had the most contact with the registered social landlords, and that the outcome would be reported back to the Cabinet Committee.

Donna Talbot, Head of Service – Business Intelligence reported that a session was being held in March with District Councils where this issue would be discussed and that the outcome would be reported to the Cabinet Committee at their meeting in April.

Paul Dosset Partner, Grant Thornton presented a report detailing the Lancashire County Pension Fund Audit Plan 2019/20 provided by the council’s external auditors, for the year ending 31 March 2020.

It was highlighted that the report set out the key headlines, significant risk areas, materiality and audit time scales. It was emphasised that the risk identified regarding the valuation of level three investments, was always a significant area of focus and was even more so in the current economic climate. There was no change to the materiality level and a straightforward audit was anticipated. The audit would be discussed in detail with pension fund and investment managers.

Resolved: That the Lancashire County Pension Fund Audit Plan 2019/20, as presented, be noted by the Audit, Risk and Governance Committee.

Paul Dosset, Partner, Grant Thornton presented a report detailing the Lancashire County Council Audit Plan provided by the council’s external auditors, for the year ending 31 March 2020.

The following points were highlighted from the report:

·  Central Government had extended the deadline for the submission of the audited annual accounts by three months to 30 November 2020, to take into consideration potential delays arising from the current pandemic.

·  The report outlined the key items of the audit plan and identified significant risks which required specific audit consideration. The risks identified were:

ü  Revenue recognition and management override of controls, applied to all audits in both the private and public sector.

ü  The valuation of the pension fund liability, which would be based on actuarial assessments.

ü  Valuation of land, buildings and investment property. Included as local authorities had relatively large asset bases.

ü  The valuing and accounting of the Municipal Bonds Agency loan.

ü  The impact of the Covid-19 pandemic in terms of producing the financial statements, such as remote auditing.

·  In line with regulatory guidance, the level of materiality had reduced from the prior year and this would require additional testing. The Value for Money statement would include implications of the impact of challenges faces by the council, including those arising from the pandemic. An interim audit had been completed and no items had been identified that required highlighting. The fee would take into account additional work required by the regulatory framework which was in itself being reviewed.

In response to questions from members the following information was clarified:

·  The initial assessment of the financial positionof the council remained strong, despite the financial pressures resulting from Covid-19, compared to councils with more limited reserves. Neil Kissock, Director of Finance confirmed that although the council would be forecasting a gap, additional funding streams from central Government had offset some of the additional short to medium term costs incurred and an emergency budget was not anticipated. This would be kept under close review. An update for august Cabinet will set out current and longer term financial reporting.

Resolved: That the Lancashire County Council audit plan for 2019/20, as presented, be noted by the Audit, Risk and Governance Committee.

Paul Bond, Head of Legal and Democratic Services presented the draft work plan for 2020/21, which outlined the main agenda items for the year along with the lead officers.

Resolved: That the draft work plan for 2020/21, as presented be noted by the Audit, Risk and Governance Committee.

Paul Bond, Head of Legal and Democratic Services presented the Annual Governance Statement, to be included in the Annual Statement of Accounts for 2019/20, and the Code of Corporate Governance. 

It was noted the statement included an extra section which set out the council's response to the pandemic and a separate conclusion regarding the position as of mid-June.

With regard to the Code of Corporate Governance, the evidence section had been updated to include new sources from the Property Asset Management Strategy and Digital First Strategy.

Resolved: That:

(i)  The draft Annual Governance Statement for 2019/20, for inclusion in the Statement of Accounts, as presented, be approved by the Audit, Risk and Governance Committee.

(ii)  The Annual Governance Statement was to be signed by the Chief Executive and Director of Resources (the section 151 officer) and Leader of the council and published on the council’s website.

(iii)  The committee considered the updated Code of Corporate Governance and no amendments were proposed for recommendation to Full Council.

County Councillor Alan Schofield, Chair of the Audit, Risk and Governance Committee presented the Chairman's Annual Report for 2019/20. The annual report provided a review of the committee's effectiveness and included details of the committee's role, key activities, membership, meetings and attendance.

Resolved: That the Chairman's Annual Report, as presented be noted by the Audit, Risk and Governance Committee.

Ruth Lowry, Head of Internal Audit, presented a report summarising the work that the Internal Audit Service had undertaken during 2019/20 and the key themes arising in relation to governance, risk management and internal control across the county council.

The following areas of the report were highlighted:

·  Planned audits had been completed as far as possible, however final formal agreement of some individual audits had not been possible due to the pandemic. 

·  75% of the 55 audits undertaken provided either substantial or moderate assurance. The overall audit conclusion is one of favourable assurance regarding the systems of governance, risk management and internal control.

·  There were no outstanding actions for managers arising from audits undertaken in 2017/18 or earlier. Fewer actions than usual had been formally agreed during 2019/20 (57, compared to 269 in 2018/19) because a number of audit reports had not been agreed for the work completed last year.

·  It was noted that the work related to last year before the onset of the pandemic. It was positive to note the stabilisation of the senior management team and the council's financial position, as well as the council's continuing improvement journey, which would now include lessons to be learnt from the management of the pandemic. Prior to the pandemic the audit team had access to all services across council and were able to undertake all work as intended.

·  The Head of Internal Audit affirmed her organisational independence in terms of work undertaken and reported. In addition, regular feedback was sought in terms of team performance and client satisfaction, resulting in a good overall rating. It was emphasised that the team welcomed critical feedback and engagement to support quality assurance and the improvement programme.

Members sought clarification regarding the following:

·  Although the report mentions that lessons were being learned in the area of adult social care complaints, members asked how processes could be improved further. It was explained that the issues raised were procedural in nature and the Head of Internal Audit would provide the full audit report to Councillor Malik.

·  Referring to the Older People Service's audit and assurance arrangements, members asked if Lancashire's care homes had implemented sufficient measures as agreed to support safe practice. It was explained that the team had given moderate assurance in areas that included medication, planning and supervision. However the service had not yet followed up on the actions agreed and therefore it could not be confirmed that the actions had been implemented as intended.

Resolved: That the Internal Audit Annual Report 2019/20 and the information it provided to support the county council's annual governance statement for the year, be noted by the Audit, Risk and Governance Committee.

Ruth Lowry, Head of Internal Audit, presented a report outlining the internal audit plan for 2020/21 and the planning process. It was noted that the plan may be subject to change dependent on the capacity of the council's services to respond to auditors during the pandemic.

It was highlighted that:

·  The audit team had been temporarily redeployed to other services to offer wider operational support to meet needs that had arisen as a result of the pandemic.

·  It was planned to audit each of the main areas of control across the organisation: governance and democratic oversight, business effectiveness, service delivery, service support and business processes. The original plan, provisionally agreed with the council's senior managers prior to the onset of the pandemic, had been reduced. However the majority of work relating to the safeguarding of children and adults remained, as did the health and safety of the public at household waste recycling centres. Additional areas that remained included: financial control and sustainability, business effectiveness with regard to the Digital Strategy and corporate performance.

·  The Head of Internal Audit had also added the following areas to the plan: decision making (in response to meetings being reduced at the start of the pandemic); performance management related to the pandemic; reopening of buildings to staff and public; supporting schools; funding flows; the urgent procurement of personal protective equipment; lessons learned from the management of the pandemic and preparation to move toward a combined authority.

Members commented that there were items in last year's plan related to theLancashire Safeguarding Children's Board that were unable to be completed. It was emphasised that the board had changed its structure and way of working and as such would benefit from further internal audit work to facilitate its optimal operation.

Resolved: That the internal audit plan for 2020/21 as presented, be approved by the Audit, Risk and Governance Committee.

Jaswant Johal, Principal Lawyer, Legal, Governance & Registrars reminded the committee that the following urgent decision had been taken since the last meeting, by the Director of Corporate Services, following consultation with the Chair and Deputy Chair of the committee, in accordance with Standing Order D15 (1):

·  Variations to the Local Pensions Partnership's Pay Proposals.

The full report had been circulated to committee members on 19 August 2020.

Resolved: That the minutes of the meeting held on 6 July 2020 be confirmed and would be signed by the Chair at a later date.

Further to the report to Full Council in July 2020 and subsequent letter to the Secretary of State requesting invitation to submit proposals for local government reorganisation in Lancashire, a proposition has been prepared containing the initial strategic outline business case ('OBC') for change and the emerging principles that would be reflected in the future governance arrangements that would need to be developed further.

The proposal - included in at Appendix A to this report – sets out that to deliver ambitious recovery and levelling up plans, we need to transition to a unitary and Mayoral Combined Authority model.  The existing fifteen councils would be replaced with three unitary authorities: Northwest Lancashire, Central Lancashire and East (‘Pennine’) Lancashire, and a Mayoral Combined Authority for the whole of Lancashire.

This OBC has been prepared urgently in order to request an invitation that Lancashire is included within the Government's anticipated first tranche for local government reorganisation anticipated within an imminent White Paper and seeks agreement to work with Ministry of Housing, Communities and Local Government ('MHCLG') officials on this process with the early development of a devolution deal.

The aim would then be to develop a Full Business Case ('FBC') for the proposition with a detailed strategic, economic, commercial, financial and management case, and options appraisal, as well as carry out a comprehensive consultation with local authorities, partners, business and residents across the county to build consensus.  It is anticipated that the proposal will generate a good deal of support and the FBC would be developed in partnership with willing stakeholders.

The Chief Executive and Director of Resources, following consultation with the Chair and Deputy Chair of the Urgency Committee of the Full Council, approved the recommendation(s) as set out in the report.

A report on the M55 Heyhouses Link Road.

This is deemed to be a Key Decision and the provisions of Standing Order C21 have been complied with. Compliance with Standing Orders C19 and C20 was impractical due to need to comply with the deadline for funds.

The Leader of the County Council and the Deputy Leader and Cabinet Member for Highways and Transport approved the recommendation(s) as set out in the report.

A report on funding for Business Support Programmes that will help firms deal with the economic disruption caused by the Covid pandemic.

The Cabinet approved the recommendation(s) as set out in the report.

The purpose of this report is to seek approval for a proposed £12.8m economic recovery and growth programme targeted at tackling some of the economic impacts of Covid-19 and to stimulate economic growth.  It is proposed that funds are allocated to the investment priorities set out in the report over the remainder of the financial year 2020/21.

This is deemed to be a Key Decision and the provisions of Standing Order C20 have been complied with.

The Cabinet approved the recommendation(s) as set out in the report.

In line with the county council's procurement rules, this report sets out a recommendation to approve the commencement of the following procurement exercises:

(i)  Street Lighting Electrical Connection Services

(ii)  M55 Heyhouses Link Road (Earthworks and Structures)

This is deemed to be a Key Decision and the provisions of Standing Order C19 have been complied with.

The Cabinet approved the recommendation(s) as set out in the report.

As outlined in the Housing with Care and Support Strategy (2018-2025), the county council is seeking to increase the housing and care options available to Lancashire residents by developing more affordable extra care schemes for older people and supported housing apartments for younger adults with disabilities. 

This report sets out the specific proposals for replacing the county council's care home, Bowgreave Rise, with a new residential care home able to meet the needs of people living with dementia and a new extra care scheme.

Bowgreave Rise is an older person's residential care home in Garstang, Wyre, which is owned by the county council and managed and operated by the Adult's Older People's Services. 

This report covers the following:

• Analysis of the feedback from the recent consultation on the initial proposals for an extra care scheme in the grounds of Bowgreave Rise.
• Analysis of the estimated prevalence of dementia and current levels of care provision for people with dementia within Wyre.
• Options and recommendations in relation to the procurement, funding, delivery and operation of facilities to be provided on the Bowgreave site.
  
  

This is deemed to be a Key Decision and the provisions of Standing Order C19 have been complied with.

The Cabinet approved the recommendation(s) as set out in the report.

The Housing with Care and Support Strategy (2018-2025) seeks to reduce the county council's reliance on long-term residential care placements. This will be achieved through increasing choice and flexibility for Lancashire residents by developing more affordable rented extra care for older people and supported housing apartments for younger adults with disabilities. 

This report sets out the proposed arrangements for delivering the key ambitions of the Housing with Care and Support Strategy in relation to extra care.

This is deemed to be a Key Decision and the provisions of Standing Order C19 have been complied with.

The Cabinet approved the recommendation(s) as set out in the report.

In Lancashire, there are 279,800 children and young people aged 19 and under, accounting for 23% of the total population. Children and young people are critical to the successful delivery of the county council's vision of helping our residents to make Lancashire the best place to live, work, visit and prosper.

The Lancashire Youth Policy will provide a guiding framework for partners and stakeholders, including underpinning principles and areas for action, to help ensure that young people:

-  are at the heart of and part of our policy making;

-  are better supported to achieve their full potential; and

-  ensure that our engagement is best in class.

The county council cannot deliver this policy without the support of partners. Subject to the agreement of the principles and priorities for action, Officers will continue to engage with children and young people, and with partners, to agree system leads for those areas which do not naturally fall within existing children's services governance and programme arrangements. As a result of that continued engagement, there may be a need for some further refinement of the proposed actions identified. 

This is deemed to be a Key Decision and the provisions of Standing Order C19 have been complied with.

The Cabinet approved the recommendation(s) as set out in the report.

This report proposes an update to the county council's Education Contribution Methodology which has been in place since May 2016. The methodology details the process followed by the county council to secure education contributions to mitigate the impact of housing development on school place provision.

The Education Contribution Methodology forms part of the county council's Planning Obligations in Lancashire Policy.

In April 2019 (revised November 2019) the Department for Education published new guidance relating to securing contributions from housing development for education. This update of the county council's Education Contribution Methodology reflects this latest guidance.

This is deemed to be a Key Decision and the provisions of Standing Order C19 have been complied with.

The Cabinet approved the recommendation(s) as set out in the report.

Following investigations and formal public consultation it is proposed to make a Traffic Regulation Order to assist in removing commuter parking from the local rural road network.

The Cabinet approved the recommendation(s) as set out in the report.

This report provides an update to Cabinet on the county council's 2020/21 revenue and capital financial position, as at the end of June 2020 and an updated medium term financial strategy (MTFS) covering the period 2021/22 to 2023/24.

There is ongoing and unprecedented uncertainty in relation to future local government funding and the financial impact of the Covid-19 emergency has exacerbated the problem.

Accordingly significant assumptions are required to underpin our forecasts. While these can be made with a level of confidence in the current year, over the medium term, with limited information, we rely heavily on advice from national bodies, benchmarking and discussion with peers.

The Chancellor launched the 2020 Comprehensive Spending Review (CSR) in July 2020. This is due to be published in the autumn and will set out the Government’s revenue spending plans for 2021/22 to 2023/24.

The Chancellor has not set a 'spending envelope' because of the uncertainty caused by COVID19, and has asked Departments to identify opportunities to reprioritise and deliver savings, however he did confirm that departmental spending will grow in real terms across the CSR period. 

The outcome of the CSR will be fundamental to the future financial position of the council. To address our forecast pressures officers, working with our national organisations, particularly in adults and children's services which are the most significant areas of financial pressure due to the increasing demand and cost of services going forward, will develop an evidence base and narrative to influence the review.

Whilst the Q1 forecast is for a relatively small overspend of £3.737m for the current financial year, there remains a level of uncertainty about the longer term impacts of the ongoing pandemic. There will certainly be ongoing impacts relating to the collection fund that force a pressure, currently estimated at £10m per annum, into at least the next three years.

The wider impacts on economic activity remain uncertain at present and as a result we have assumed no growth in our tax base and share of non-domestic rates for 2021/22 the effects of which impact significantly upon our MTFS.

Any latent impact on price or demand for our services also remains unclear.

The current MTFS indicates an aggregated funding gap of £79.306m by 2023/24, an increase of £40.904m from the previously reported position. This is due primarily to the impacts of Covid-19 on our collection fund deficit and tax base, increased pay costs and service demand and inflationary pressures.

In summary:

(i)  The 2020/21 revenue forecast outturn is £848.588m, representing a projected overspend of £3.737m (0.44%) of the agreed budget.

(ii)  The MTFS has been updated for our current expectations of increased demand and volume. The revised forecast position has deteriorated in the light of our expectations of future funding levels, the impact of a higher than forecasted increase on the cost of our commissioned adult social care and an updated forecast on pay and pensions following the rejection of the latest pay proposals.

(iii)At Full Council in February 2020 the MTFS showed a deficit of £38.401m in 2023/24. The forecast now indicates a financial deficit of £79.306m by 2023/24.

(iv)The council is forecast to hold a General Reserve against unforeseen issues of £23.437m representing circa 3% of net budget, which is unchanged from the previously reported position. 

(v)  The council is forecast to hold £150.295 of uncommitted transitional reserve at the end of the financial year. This is sufficient to meet the forecast gap for financial years 2021/22 and 2022/23 only.

The Cabinet approved the recommendation(s) as set out in the report.

Following investigations and formal public consultation it is proposed to make a Traffic Regulation Order to address anomalies in parking restrictions and to clarify, simplify and remedy a number of discrepancies that have been identified in the Burnley, Chorley, Pendle and Preston districts. In addition, new restrictions are proposed in the districts of Chorley, Fylde, Hyndburn, Lancaster, Preston, South Ribble, West Lancashire and Wyre. These restrictions will improve safety on the highway for all users and also provide some amenity parking.

This is deemed to be a Key Decision and the provisions of Standing Order C19 have been complied with.

The Cabinet approved the recommendation(s) as set out in the report.

The Cabinet approved the recommendation(s) as set out in the report.