Agenda and draft minutes

Councillor Ethan Radford – leave

Tony McArdle

Vicky Murphy

None.

Minutes of the meeting held on 11 February 2025, for confirmation

the minutes of the meeting held on 11 February 2025 were confirmed as a correct record and they were signed by the Chair.

Report of the Executive Member for Finance and Resources

Councillor Linda Woodings, Executive Member for Finance and Resources, presented the report providing the Council’s 2024-25 forecast outturn for the General Fund, Housing Revenue Account and Capital Programme, based on activity to the end of the Period 10 (31 January 2025).

The Council is forecasting a General Fund overspend of £10.753m which has been mitigated through £12.195m of management actions reducing the Council position to a net underspend of (£1.442m) (0.4%) at Period 10. The approved budget for the 2024-25 financial year included £41 million in Exceptional Financial Support (ESF) to balance the budget, the budget pressures reported of £10.753m before mitigating actions are in addition to the £41m of ESF. Proactive measure to reduce the budget pressure continues to balance at or within the approved budget.

The Housing Revenue Account (HRA) forecast at Period 10 for 2024-25 is reporting a net underspend of (£1.477m). This will increase the contribution to HRA reserves to £10.007m. The revised Capital Programme is reporting an underspend of (£25.948m) of which £12.502m is within City and Growth development and £8.496m is related to the HRA. The Dedicated Schools Grant (DSG) is experiencing substantial incremental pressures that are currently impacting the High Needs Block, projecting a revised deficit of £1.525 million by the 2026-27 fiscal year relating to rising costs in alternative provision and exclusions.

Resolved to

(1)  note the General Fund forecast gross overspend for 2024-25 at Period 10 of £10.753m reduced by (£12.195m) following application of mitigating actions reducing the position to a net underspend to (£1.442m) against approved budget of £356.800m (Section 4) and the risks set out in Section 9 of the report;

(2)  note that the Corporate Leadership Team in consultation with the Section 151 Officer has developed a mitigation strategy and plan to bring the forecasted spend back in line with approved budget;

(3)  note the General Fund budget includes the Exceptional Financial Support flexibility of £41.024m for 2024/25, which will be deployed through a combination of capital receipts and short-term borrowing;

(4)  note the progress of the approved savings over the Medium-Term Financial Plan (2024-25 – 2027-28) period of £88.335m, with £64.467m (73%) either delivered or on track to be delivered of which:

· £3.072m relate to undelivered 2023/24 savings brought forward

· £35.740m relate to 2024-25 savings

· £25.655m relate to savings over the MTFP period 2025-26 to 2027-28 See section 5 and Appendix 1 for further details.

(5)  note the HRA forecast net underspend for 2024-25 at Period 10 of (£1.477m);

(6)  note the 2024-25 Capital Programme net slippage of (£25.758m) and net underspend of (£0.190m);

(7)  note the Dedicated Schools Grant (DSG) is experiencing substantial incremental pressures that are currently impacting the High Needs Block, projecting a revised deficit of £1.525 million by the 2026-27 fiscal year relating to rising costs in alternative provision and exclusions

Reasons for decisions:

·  This report is to provide an update on the period 10 budget monitor which includes the General Fund, Dedicated Schools Grant and Housing Revenue Account. The report meets requirement of the budget monitoring timetable and is consistent with the requirements of the CIPFA code.

Other options considered:

·  This is a monitoring report required by Financial Regulations and the Financial Accountabilities Framework which supports informed decision making, transparency and effective governance and therefore no other options were considered.

Report of the Executive Member for Strategic Regeneration, Transport and Communications

Councillor Neghat Khan, Executive Member for Strategic Regeneration, Transport and Communications, presented the report outlining details of a further £2.825m of funding that has been allocated to Nottingham City Council under Phase 2 of the Safer Roads Fund, specifically to improve safety on the A60 (Mansfield Road) and the A6200 (Derby Road).

Resolved to

(1)  approve the scope of the road safety improvement schemes for the A60 and the A6200 project;

(2)  delegate final project design approvals, initiation of procurement activities and appointment of the contractor/s to deliver the project to the Director of Planning and Transport in consultation with the Corporate Director for Finance and Resources;

(3)  delegate approval to submit applications and accept successfully awarded grants for future road safety funding opportunities to the Director of Planning and Transport. Executive Board approval will be sought to enable design and implementation of any resulting projects;

(4)  delegate, to the Director of Planning and Transport, the authority to pay part of the award to Nottinghamshire County Council to enable them to deliver the improvements on their section of the A60.

Reasons for decisions:

·  The Department for Transport selected Nottingham City Council to receive £2.825m of grant funding in Round 3-Phase 2 of the Safer Roads Fund; £0.6m for the A6200 and £2.225m for the A60. This funding has been allocated to deliver safety interventions which would reduce the number and severity of road traffic collisions and resultant casualties on two of the most high-risk A-roads in Nottingham for drivers, passengers, and cyclists.

·  Road Safety and Traffic Management submitted in principle proposals for the A60 and the A6200 schemes based on road safety data in line with the guidance and requirements of the funding. These proposals are subject to feasibility and deliverability advice from Highway Services and early design works including surveys. The project proposals will also be subject to all necessary Traffic Regulations Orders and other statutory consultations ahead of implementation.

·  Delegating final project approval, initiation of procurement activities and appointment of the contractor/s to deliver the project to the Director of Planning & Transport, in consultation with the Corporate Director for Finance and Resources will ensure timely approvals to keep the project on track and to programme.

·  The intention is also for the Council to submit a full application for any future rounds of Safer Roads funding. The Grant funding would allow for further investment in Nottingham and assist to improve road safety on the highest risk roads identified by the Department of Transport.

·  Nottinghamshire County Council supported the bid and are developing proposals for their element of the A60 project based on a potential amount in the region of £500k. Both councils will work together to ensure it meets the requirements of the grant before paying them the relevant amount. Nottinghamshire County Council will be required to provide any regular updates for reporting to the Department for Transport and meet the costs of any funding required above the amount finally agreed from their own budgets. Any unspent funding will be returned to Nottingham City Council and allocated to further improvements within our section of the A60.

Other options considered:

·  The option to vary the location of schemes was rejected as this would not comply with the award of the Safer Roads Fund grant and would invalidate the work completed by the Department of Transport to identify the most high-risk A-roads in Nottingham for drivers, passengers and cyclists and the requirement to reduce the risk on these roads and improve road safety.

·  The option to do nothing and reject the funding was rejected as this would not improve road safety on two busy, high risk A-roads in Nottingham.

Report of the Executive Member for Communities, Waste and Equalities

Councillor Corall Jenkins, Executive member for Communities, Waste and Equalities, presented the report regarding a review which has taken place, as part of the Council’s ongoing transformation and improvement process, into the current provision of community centres across the city. This review seeks to regularise the Council’s position to the management of centres, remove the significant subsidies that are currently afforded to some centres, and seek to enable and empower associations to continue to deliver services for communities from assets that are cost neutral to the Council.

The review has recognised the important role that community centres can play in supporting the council and partners in delivering better outcomes to citizens. This review is part of the Council’s wider transformation and redefining of its relationship with the voluntary and community sector to support and empower the sector to become sustainable.

The Council would like all community centres to remain open. Centres can access funding from additional sources that the council cannot, and they will be supported to apply for and access this, in order to become more financially sustainable and to invest in their assets and buildings for the future.

Resolved to

(1)  note the review of community centre provision across the city;

(2)  note the findings from the engagement process carried out as part of the review;

(3)  endorse the proposed next steps and timeline set out at Section 4 of the report.

Reasons for decisions:

·  As the Council seeks to deliver its ambitions to be financially stable as set out in the Improvement Plan, it must consider and test its best value duty in those areas of non-statutory service provision that are delivered at a net cost to the general fund. The recommendations detailed in this report follow a review which was instigated as part of the 24-25 Medium Term Financial Plan (MTFP) in relation to community centre provision.

Other options considered:

·  Closure and Disposal of All Buildings: This option would result in the total loss of community centres across the city. It was rejected due to its significant negative impact on residents and the community sector.

·  Retaining the Current Community Centre Network as is: Rejected as maintaining the current network would impose long-term financial pressure on the Council which is inconsistent with the Council’s financial sustainability and contradicting the approved savings in the Medium-Term Financial Plan.

·  Market Rent Agreements Without a Strategic Core Retained List: Negotiating market rent and full repair and maintenance leases for all properties without identifying a core retained network would intensify financial burdens for some associations. This approach could jeopardise essential services and deter associations from continuing operations.

·  Market Rents with a strategically retained core was a considered option. However, following engagement and consideration of feedback, this option was rejected due to the inability of associations to absorb market rent costs in addition to operational expenses.

Report of the Executive Member for Skills, Growth and Economic Development

Councillor Neghat Khan, Leader of the Council. Presented the report regarding the site known as the ‘Broad Marsh Development Site’ which comprises a significant circa 20-acre regeneration site located in the heart of Nottingham City Centre.

Since the Council took control of the site back in July 2020 (following the collapse of the Intu group of companies), a series of activities to manage the physical site and progress the redevelopment have been successfully undertaken. These include:

· Full site management put in place.

· LEP grant funded demolition of part of the former shopping centre.

· Building of a new Nottingham College hub and adjacent new public spaces including skateboarding area.

· Consultation on regeneration proposals via the ‘Broad Marsh Big Conversation.’

· Creation of the Broad Marsh vision by an Independent Advisory Group.

· Development of the Broad Marsh Master Plan.

· Major road network changes including a new southern relief route to enable pedestrianisation and activation of Collin Street/Carrington Street and the calming of Canal Street and Middle Hill.

· Creation of a pedestrianised Collin Street.

· The opening of the Green Heart and a new play area on Collin Street.

· Opening of the new Central Library.

· Opening of the award-winning Car Park and Bus Station and work introducing new retail units.

· Development of and work towards a new major NHS Community Diagnostics Facility in part of the old Broad Marsh front fronting Lister Gate.

· Application for grant funds from the East Midlands Combined Authority submitted.

It is widely recognised that this site is one of the largest and most important city centre development sites in the UK and to ensure the project has the best chances of success (for the city of Nottingham and the wider East Midlands) the council recognises that it alone would be unable to deliver the project due to the specialist resource and finance requirements it presents. The Council has considered several options regarding the future development of the site  with the final recommendation being to dispose of the site on the terms outlined in the exempt appendix.

Resolved to

(1)  make the site known as the Broad Marsh Development site surplus to all Council requirements;

(2)  make the surplus Broad Marsh Development site available for sale on the terms set out in the Heads of Terms in the Exempt Appendix;

(3)  delegate approval of the final Heads of Terms for sale, save for the sale price, to the Corporate Director for Growth & City Development;

(4)  delegate approval of the final sale price to the Corporate Director for Growth & City Development in consultation with the S151 Officer. If the final sale price varies by more than £750K the decision will revert to the Executive Board/Leaders Key Decision;

(5)  approve the Council entering into an agreement which governs the future relationship between the vendor and purchaser (Memorandum of Understanding);

(6)  note that this disposal is an ‘off-market’ disposal which has been agreed in line with the Council’s adopted Disposals Policy.

Reasons for decisions:

·  The Council has, alongside its appointed agents, undertaken a full analysis of the disposal options available and several scenarios have been considered and set out in the exempt appendix. The proposed sale as set out in the Heads of Terms contained in the exempt appendix is recommended as the best way to proceed to ensure the timely and successful re-development of the site as well as delivery of a capital receipt to the Council. It is recognised that the Council is not able financially to deliver this development.

·  To allow Officers to progress a sale at pace. The proposed terms of the sale as set out in the exempt appendix are substantially agreed with only minor matters to be finalised. Given the timeframe for completion of this matter it would not be an efficient use of time to bring a decision back to the Executive Board.

·  It is recognised that this is a significant disposal in terms of the capital receipt and therefore any variation to the final sale price will be approved by the Corporate Director for Growth & City Development in consultation with the S151 Officer. If the variation is outside the approval level of the Corporate Directors a decision will be taken back to the Executive via the most appropriate route given that this transaction is scheduled to complete in the 2024-25 financial year.

·  Nottingham City Council as landowner and Local Authority has actively promoted the redevelopment of the Broad Marsh area for several years and has delivered significant progress through its own resources and funds and by securing external grants. This work will continue with the purchaser to ensure the successfully delivery of the redevelopment project.

·  In December 2024, the East Midlands Combined County Authority (EMCCA) granted stage one approval to £3.3 million of funding towards the Broad Marsh project. The funding is part of EMCCA’s Investment Fund which grants funding to projects which will make an impact in the region by investing in homes, jobs, manufacturing, clean energy creation and greener spaces. The Broad Marsh project is being actively supported by EMCCA due to the positive contribution it will make towards its Strategic & Investment Framework which sets out the vision for the region. The project will also support the East Midlands Inclusive Growth Strategy which guides how the EMCCA invests a £4 billion funding pot to help drive a thriving economy across Derby and Derbyshire, Nottingham and Nottinghamshire. The £3 million investment into Broad Marsh will enable additional demolition to be undertaken at an early stage which will remove holding liabilities associated with the site.

Other options considered:

·  Do Nothing – this option was rejected due to the significant cost of holding the site vacant being incurred by the Council and the very likely risk that these costs would increase substantially soon. A do-nothing option would result in no progress in terms of the redevelopment of the site which goes against the work completed by the Council on developing a vision and master plan. A do-nothing scenario would damage stakeholder relationships particularly with the Citizens of Nottingham, East Midlands Combined County Authority and the Nottingham University Hospitals Trust who have a significant part to play in the development of the site.

·  Delivery by the Council – this option would see the Council deliver the proposed regeneration project from planning to construction. This is a substantial undertaking which would require significant capital funds, and a skill set which is not held within the Council’s teams. The Council would benefit from profit created by the site, but it would also carry all risk associated with the development. Given the Council’s current resource and financial restrictions, this option is not deliverable and has been rejected.

·  Joint Venture Type Agreement – these options would see the Council partnering with an organisation to facilitate the delivery of the master plan. Responsibilities for progressing various aspects of the development would lie with defined stakeholders. This option would see the Council carrying medium to high risk in terms of cost, control, planning risk, resource risk, speed, and market appetite. This option was rejected due to the time and cost associated with securing a partner and the current holding cost liabilities require the authority to act quickly to reduce that risk and this option would see that burden being retained for a longer period.

To consider excluding the public from the meeting during consideration of the remaining items in accordance with Section 100A of the Local Government Act 1972, under Schedule 12A, Part 1, Paragraphs 3 and 5, on the basis that, having regard to all the circumstances, the public interest in maintaining an exemption outweighs the public interest in disclosing the information

Resolved to exclude the public from the meeting during consideration of the remaining items in accordance with Section 100A of the Local Government Act 1972, under Schedule 12A, Part 1, Paragraphs 3 and 5, on the basis that, having regard to all the circumstances, the public interest in maintaining an exemption outweighs the public interest in disclosing the information.

Councillor Neghat Khan, Leader of the Council, presented the exempt appendix which was noted by the Board.