Agenda and draft minutes

Councillor Kevin Clarke - leave

In relation to agenda item 8 – Schools Capital Maintenance Allocations (minute 74), in the interests of transparency Councillor Linda Woodings stated that she is a Governor of Heathfield Primary School.

Minutes of the meeting held on 19 November 2024, for confirmation

The minutes of the meeting held on 19 November 2024 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 an assessment of 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 7 (31 October 2024).

As seen across many other local authorities, the Council is experiencing significant cost pressures along with rising demand in adult’s and children’s social care. The recent ‘cost of living crisis’ is also impacting the various income streams of the Council. In additional to this pressure the Council is also seeing pressures across social care arising from withdrawal of health funding contributions towards cost of care.

Since June 2024, the Council has implemented a Financial Intervention Strategy which encompassed a range of measures alongside departmental management actions intended to mitigate the Council’s in-year pressure.

The Council in March 2024 approved a 4-year Medium Term Financial Plan (MTFP) based on the best available information at the time. However, the financial environment within which the Council is operating is constantly evolving and its budget strategy and planning process will be refreshed over the coming months to reflect the current financial position to ensure it continues to meet its Best Value requirement to demonstrate continued financial sustainability. The Council continues to face exceptional circumstances as best demonstrated by the 2024-25 General Fund Budget balanced only by taking all available saving options tabled to the Executive Board and City Council in February 2024 and March 2024 respectively and the use of material sums of Exceptional Financial Support. The 2024-25 approved budget includes use of c£41m of Exceptional Financial Support flexibility with any in-year overspends requiring to be met from a combination of in-year mitigations and savings and one-off General Fund contingency. In case, where application of all available financial intervention strategies and tools does not fully close any in-year budget gap then use of reserves may be considered.

The Council’s comprehensive Savings Programme, including the Transformation Programme, which is currently in its third year, is projected to achieve significant budgetary efficiencies, with combination of 2024-25 and 2023-24 undelivered savings totalling £37.669m (77.3%) either delivered or on track to be delivered in 2024-25. Additionally, the ongoing Finance Improvement Programme is expected to further streamline financial operations, ensuring continued fiscal prudence and resource optimisation.

The Council is forecasting a General Fund overspend of £4.687m (£1.31%) in Period 7 of 2024-25 which includes the planned management intervention.

The HRA forecast at Period 7 for 2024-25 is showing a net overspend of (£3.773m).

The revised Capital Programme of c£321m profiled for 2024-25 at Period 7 (combined General Fund and HRA) is forecasting to spend c£306m, a variance of (c£15m) when compared to 2024-25 budget.

The following points were raised during the discussion which followed:

(a)  historical accounts have now been audited up to the 2022-23 financial year. External auditors have completed their initial position from the 2023-24 accounts and these will be available next week ready for the Audit Committee to review in the new year. The outturn position for last year appears to be positive. There is pressure to manage the additional pressures for this year but there are positive signs that the Council is on the road to recovery;

(b)  a decision cannot be made as to whether council tax will be raised and by how much until a budget settlement has been confirmed by the government. Councils have a duty to deliver a balanced budget. The settlement will be for a single year but it is anticipated that from 2026-27 settlements will cover multiple years which would greatly help with forward planning;

(c)  a mapping exercise has been undertaken on community centres and this is currently being assessed. This has included engagement with adults’ and children’s services and the NHS to understand impact on delivery of their services. The aim is to keep as many as feasible, but a number of centres are in a poor state of repair and will require additional funding which will require increased fees for improvements to be made;

(d)  a review of the council’s operational estate, including Loxley House, is being undertaken and proposals will be brought forward in the new year.

Resolved to

(1)  note the General Fund forecast gross overspend for 2024-25 at Period 7 of £15.660m reduced by (£10.973m) following application of mitigating actions reducing the net overspend to £4.687m against approved budget of £356.800m (Section 5) and risks set out in Section 10;

(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 (£62.166m 70.4%) either delivered or on track to be delivered of which:
· £2.440m relate to undelivered 2023/24 savings brought forward;
· £35.229m relate to 2024/25 savings;
· £24.497m relate to savings over the MTFP period 2025/26 to 2027-28;

(5)  note the HRA forecast of net overspend for 2024-25 at Period 7 of (£3.773m) resulting in a reduction to the planned contribution to reserves;

(6)  approve the 2024-25 Capital Programme net slippage of (£23.014m) and net underspend of (£0.190) with regards to the following:
· General Fund (£16.511m), HRA (£5.7525m) and Accountable Body (£0.751m) net slippage to be carried forward and reprofiled across the medium-term financial plan.
· note £0.190m net underspend, for which budget amendments will be incepted into the capital programme;

(7)  approve net departmental General Fund net budget changes as summarised below:

Reasons for decisions:

·  As set out in the Financial Regulations and Financial Accountabilities Framework, the Chief Finance Officer is responsible for reporting the performance of the budget to Executive Board.

·  Budget reporting to councillors is essential for informed decision-making, transparency, and effective governance in local authorities, ensuring accountability and sound financial management.

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 Finance and Resources

Councillor Linda Woodings, Executive Member for Finance and Resources, presented the report seeking approval to enter public and staff consultation on an initial range of new savings and other proposals.

The Council in March 2024 approved a Medium-Term Financial Plan (MTFP) based on the best available information at the time. Due to exceptional circumstances £41m Exceptional Financial Support (EFS) was required to set a legally balanced 2024-25 budget. The environment within which the Council is operating is constantly evolving and continues to present significant financial challenges.

An increase in core council spending and additional funding for adult and children’s social care are expected following the recent change in government, but this will not be an instant fix following years of under-investment. Therefore the council still need to challenge itself to reform and modernise in order to not continue to rely on EFS and deliver best value for the citizens of Nottingham. Every aspect of the council requires transformation, and difficult decisions need to be made, to ensure that it finds itself on a firm financial footing.

Executive Members reiterated that the council needs to get its finances in order, and outlined the future ambitions for each of their areas of responsibility in Nottingham.

The following points were raised during the discussion which followed:

(a)  the review of direct payments in Adult Social Care is operational, to improve recoveries and make systems easier to use, making sure that citizens receive the funds they are entitled to. It is a statutory requirement for the council to provide these direct payments;

(b)  for the effective management of vacant posts, there is now a central database to enable the council to better understand vacancies held, and whether the posts are required to be filled;

(c)  the revised management model for museums and galleries is a completely different model from the previous Nottingham Castle Trust, and the council will still have oversight over decisions. This model is used by all other UK core cities so is seen as low risk.

Resolved to

(1)  endorse the draft public consultation of saving proposals as set out in Appendix 1 of the report and to commence formal public consultation on these proposals and to note the on-going efficiency savings proposals that will form further savings within the 2025-26 base as outlined within Appendix 2;

(2)  authorise the Corporate Director or Director(s) with responsibility for each proposal to carry out all necessary steps required in relation to each proposal, including undertaking any further consultation in accordance with the Council’s legal duties and responsibilities;

(3)  approve, where any staffing reductions result from the savings proposals set out in this report, the reductions be supported through a targeted voluntary redundancy approach and that redundancy compensation be in accordance with the Council’s agreed Discretionary Compensation Regulations Policy provisions for voluntary redundancies;

(4)  note that further work is continuing to identify ways in which a balanced budget for 2025-26 and a robust MTFP can be achieved, and that these will form part of future reports to Executive Board as appropriate.

Reasons for decisions:

·  This report is part of the Council’s continuing budget planning process and builds on the existing MTFP previously approved and considered by Full Council on 4 March 2024 and Executive Board on 18 June 2024, respectively.

·  It sets out the saving proposals developed by officers for 2025-26 to 2028-29 under the budget strategy approved 18 June 2024 Executive Board. The proposed budget consultation will run for a four-week period between 17 December 2024 to 13 January 2025. The responses to the budget consultation and any proposed changes will be considered and agreed by the Executive Board in late February 2025 and Full Council in early March 2025. Where required and in accordance with the Council’s legal duties and responsibilities, respective directorates may undertake additional targeted consultation in relation to specific proposals.

·  The overarching objective of the budget strategy is to ensure that the Council have set a priority-led budget over the medium term that is balanced and realistically supported by achievable saving plans. However, it must be recognised that the Council is currently facing a significant budget challenge, which requires the Council to transform the way it delivers services and do some things differently.

·  The saving proposals set out in this report will contribute towards reducing the budget gaps for 2025-26 to 2028-29. The final decision whether to implement any proposal will only be undertaken once all implications that may emerge from further preparatory work are known and final proposals will be appropriately amended.

·  Proposals that include workforce reductions will be subject to collective consultation with Trade Unions and affected colleagues in line with established policy and procedures. Details of proposals may be amended during the consultation and consequently alter the way in which the identified proposals will be delivered.

Other options considered:

·  Throughout the budget process a range of different options have been considered including various levels of council tax, investment, expenditure reductions and income generation proposals. This report presents the overall set of current draft savings proposals which together seek to balance levels of investment, income, cost reductions and an appropriate level of Council Tax.

Report of the Executive Member for Housing and Planning

Councillor Jay Hayes, Executive Member for Housing and Planning, presented the report.

Local authorities have a statutory duty to produce a strategy outlining what they will do to prevent and respond to homelessness and rough sleeping in their area. The strategy should be developed with input from partners from across the public and community sectors, who have roles and responsibilities in homelessness prevention. The strategy should be updated every five years following an annual review of homelessness. The term of the current strategy is 2019- 2024 and the new strategy has been developed for 2025-2029 following the completion of a homelessness needs assessment.

Resolved to

(1)  approve the content of the Nottingham Homelessness and Rough Sleeping Prevention Strategy 2025-29 and adopt it for delivery as in line with the statutory requirement;

(2)  support the introduction of a Homelessness Reduction Board to provide cross sector accountability from senior leadership teams.

Reasons for decisions:

·  Local authorities have a statutory duty to lead on the development and implementation of a strategy outlining how they will work with partners to prevent and respond to homelessness.

·  In Nottingham, homelessness assessment rates are high compared to comparator areas and around one third of households assessed present when they are already homeless. Most people who present before they are homeless (i.e. at Prevention duty stage) are homeless from a private rented sector tenancy. Most households who present when they are already homeless (i.e. at Relief duty stage) are homeless from their friends or family. The most significant increase in reason for homelessness since 2019/20 is because of Home Office support ending for new refugees.

·  Similarly to most other comparable cities, in Nottingham there has been a reduction since 2019/20 in the proportion of housing outcomes being achieved before a household becomes homeless (i.e. under the Prevention duty). When a housing outcome is achieved it is most often a move to alternative accommodation rather than supporting the household to remain in their existing home. The rate of private rented sector tenancies secured at this stage is high in Nottingham compared to the other areas and consequently the rate of social housing secured is lower (primarily due to limited availability of social housing lets).

·  In most comparable cities there have been an increased number of Relief duties ended but a lower proportion of housing outcomes secured. This means that more people are moving through to a Main duty decision which indicates that many local authorities are struggling to secure accommodation within two months of a household becoming homeless.

·  In Nottingham, the average age of the main applicant within a homeless household has increased since 2019-20. There has been a notable increase in ethnic diversity with the percentage applicants from Black and Minority Ethnicities being 5% higher than the percentage of people of Black and Minority Ethnicities in the population. Around one fifth of homeless households are working, two thirds are unemployed or not working due to a long-term illness or disability.

·  In Nottingham, there has been an increase of 122% in the number of households in Temporary Accommodation from a snapshot of 349 households in 2019/20 to 776 households in 2023/24. The rate of households per thousand of the population is high for the region but low compared to other similar areas nationally. Considering that Nottingham had a higher-than- average rate of assessments, it could be determined that this means there is a lower assessment to Temporary Accommodation conversion rate in Nottingham. However, Nottingham does have a high proportion of families in Temporary Accommodation.

·  Generally, Nottingham’s Temporary Accommodation portfolio is varied and has increased significantly from around 250 units in 2019/20 to over 600 units in 2023/24. The profile of Nottingham’s Temporary Accommodation portfolio is quite different to the average amongst the comparator areas. Less of Nottingham’s portfolio is hotels, nightly paid temporary accommodation and private rented sector and the city uses a larger proportion of hostels and social housing stock.

Other options considered:

·  Not to develop a new Homelessness and Rough Sleeping Prevention Strategy. This was rejected because the current strategy expires at the end of the year and it is a statutory requirement for local authorities to have one in place.

Report of the Executive Member for Children, Young People and Education

Councillor Cheryl Barnard, Executive Member for Children, Young People and Education, presented the report.

Nottingham City Council is making changes to the admission arrangements for community schools and the processes for coordinating admissions with other admission authorities. The key changes include increasing the number of secondary school preferences available to parent/carers from 4 to 6, which will improve the chances of families securing a preferred secondary school and help streamline the appeals process. Additionally, we plan to extend the waiting list operating period, amending the closing date from May each year to June, offering more flexibility for families moving into the area whilst remaining mindful of the end of term. A new Year 6 waiting list will also be introduced to bring it in line with processes for other year groups, reduce repeat-applications and support vulnerable families that disproportionately find themselves applying for in-year transfers.

It was suggested that parents/carers continue to be encouraged to apply for more than one school and clarification be made that this will not impact the outcome for their first preference.  

Resolved to approve the local authority’s proposed admission arrangements for introduction at the 2026-2027 academic year.

Reasons for decisions:

·  Proposal to expand the number of school preferences for secondary applications from 4 to 6. This adjustment will significantly improve parents chances of securing a school placement of their preference. By offering more choices, the aim is to decrease the number of appeals and late applications, which currently add complexity and delay to admissions processing. Ultimately, this change will streamline and simplify the admissions journey, resulting in a smoother experience for families and the Admissions Team processes.

·  Proposal to extend the closing date for school waiting lists from the May half-term to the end of June. This extension will be particularly beneficial for families relocating to the area toward the end of the academic year, offering them a realistic opportunity to secure a suitable school placement without unnecessary delay, waiting for the new academic year. For schools, it provides a clearer understanding of their responsibilities and the numbers on roll ahead of the new academic year, minimising last-minute disruptions by still acknowledging any applications received from the beginning of July will not be considered for a start prior to September. By clarifying that applications received on or after July 1st will apply to the new academic year, a more organised and predictable transition will be ensured for all and benefits the administrative processes.

·  Introduce Year 6 Waiting List: To address challenges faced by families, particularly vulnerable households and those with language barriers which are seen disproportionately as part of inward migration, it is proposed to introduce a dedicated Year 6 waiting list. This will eliminate the need for weekly reapplications which is the current process in order to continue being considered should a place become available. The change makes the admissions process more accessible and equitable for all families. By reducing barriers to securing a school place, it will ensure that more children, regardless of their backgrounds, have access to education when they arrive, or begin to be supported through processes where a place cannot be offered. the challenges of moving children in Year 6 are however still acknowledged so parents/carers will be informed of the potential impacts and families discouraged from doing so where an existing school place is available to them.

·  The unamended sections of the arrangements continue to support the Council with complying with the School Admissions Code and providing services that are efficient and citizen focused.

Other options considered:

·  The alternative option would be to make no change to the arrangements however, when considered, and taking into account the context this would not be in the interest of parent/carers of Nottingham. For context, there has been an increasing number of in-year applications due to inward migration which has placed addition pressures on KS2 and secondary phase capacity. In addition, the process for a Year 6 in-year application is different and more difficult to that of other years, which was previously to discourage movement in the last year of primary however as the demographic of the city continues to change with more inward migration and vulnerable groups navigating the process in-year, it is important to implement changes to support them.

Report of the Executive Member for Children, Young People and Education

Councillor Linda Woodings stated that she is a Governor of Heathfield Primary School and did not discuss or vote on this item.

Councillor Cheryl Barnard, Executive Member for Children, Young People and Education, presented the report seeking approval to accept the 2024-25 annual capital maintenance grant allocation from the Department for Education (DfE) for 2024-25, which was confirmed in March 2024, and to approve the fourteen schemes that have been prioritised using the Capital Maintenance draft strategy document. The total value of the grant is £2,692,168 and is to improve the condition of school buildings maintained by the Council.

The Primary Health and Safety budget (which is grant funded via historical Capital Maintenance underspends) has a balance of £204,518. Due to a high number of priorities and existing pressures, we are also seeking approval to include this amount within the overall funding envelope.

A contingency of £624,686 that is to be delegated to the Corporate Director for Children and Education Services to approve has been identified within the total grant funding to deal with any unforeseen issues that arise over the year within schools. To approve a payment of up to £0.300m from the Building Schools for the Future (BSF) Lifecycle Reserve fund to Rosehill Special School to undertake condition and maintenance works to the building. The building is reaching the point in the 25 year cycle where it is requiring some maintenance works to keep the building in good condition.

Resolved to

(1)  accept the Capital Maintenance Grant 2024/25 of £2,692,168 from the Department for Education and to include the £204,518 balance of the Primary Health and Safety fund into the funding envelope and to approve the fourteen schemes prioritised using the draft Capital Maintenance strategy document;

(2)  approve a contingency of £624,686 and delegate authority to the Corporate Director for Children and Education Services to approve and authorise how the contingency is allocated;

(3)  authorise the procurement of any necessary contracts (Construction and Professional Services including Legal) to carry out the programme of schemes using the 2024-25 funding and delegate authority to the Corporate Director for Children and Education Services to award any procured contracts;

(4)  approve payments of up to £300,000 from the Building Schools for the Future (BSF) Lifecycle Reserve fund (Dedicated Schools Grant) to Rosehill Special School to undertake condition and lifecycle works to the school buildings.

Reasons form decisions:

·  The prioritisation of the school capital maintenance grant is based on technical advice and a review of the condition of the Nottingham City schools estate. The process is articulated in the appended Business Case and the draft strategy document which is being used to prioritise the schemes in schools. There are two areas where funding is prioritised:

i)  Health and safety issues likely to impact on children and staff to ensure the safeguarding of the pupils within the school site, ensuring buildings are structurally sound and can be safely evacuated in the event of an emergency; and

ii)  Condition issues likely to impact on the operation of the school, to ensure that school buildings are warm and dry to negate the potential of schools closing and loss of learning for the pupils.

·  The programme of works is prioritised in line with the draft Capital Maintenance Strategy for Schools. This will be reviewed and reflect the priorities that are in the overarching Corporate Asset Management Plan.

·  The grant for 2024-25 is £2,692,168 and we are seeking to also include the £204,518 balance of the Primary Health and Safety fund into the funding envelope. There are fourteen schemes have been identified which will be delivered in the school summer holidays 2025 or earlier where possible, taking advantage of February half term and Easter 2025 school holidays respectively.

·  Delegating authority to the Corporate Director for Children and Education Services to approve and authorise how the contingency is allocated will ensure a timely response to any urgent issues that arise.

Other options considered:

·  To combine the 2024-25 Schools’ Capital Maintenance Grant with Basic Need funding and the SEND capital funding to address the shortfall of SEND capacity and secondary places across the city. This option was rejected as it would leave schools at risk of temporary closure due to health and safety or condition issues. It could also mean that school buildings continue to deteriorate and may be subject to forced closure whilst emergency repairs are carried out.

Report of the Executive Member for Children, Young People and Education

Councillor Cheryl Barnard, Executive Member for Children, Young People and Schools, presented the report. Nottingham is experiencing considerable growth in the number of young people identified as having Special Educational Needs and Disabilities (SEND) and there is an urgent, significant and increasing need for additional capacity to meet this demand. The Council is committed to supporting our schools and settings within the city to offer high quality, inclusive education.

The need for SEN provisions at both Rise Park Primary School and the Milford Academy Primary School, as proposed in this report, were identified as priorities in Phase 1 of the Council’s SEND Capital Strategy 2023-28, to support the Council’s statutory sufficiency duties in relation to the delivery of suitable specialist educational provision for children and young people with complex SEND.

The development of provision at Rise Park Primary School and The Milford Academy Primary School, will offer access to high quality specialist educational provisions for local pupils. The developments set out within the SEND Capital Strategy are aspirational for pupils with SEND residing in Nottingham and are supported by local parent carer forums and schools. The provisions are also positive for the council’s general fund, ultimately reducing reliance on home to school transport by avoiding the need to place pupils in costly out of area independent provision, therefore avoiding longer distance transport provision.

It is evident from the work carried out as part of the development of the SEND Capital Strategy and the subsequent consultation, that there is a significant and increasing need for additional capacity for pupils with complex SEND, both within mainstream specialist units and in special school provision. The Strategy was consulted on and approved by Executive Board in September 2023. The schemes were still subject to design/feasibility investigations, to ensure the most appropriate and cost-effective solutions to deliver quality provision in areas of high need.

Additional specialist capacity is urgently needed for primary children in mainstream settings. Both SEN units will be within the mainstream schools, with the pupils taught partly in mainstream classes while also benefitting from additional specialist support according to their individual need. More specialist places are required to address the existing cohorts as well as to make provision for the identified growing need.

High Needs Capital funding received from central government is intended to support the Council to fulfil its sufficiency duties in relation to the availability of suitable specialist school places for young people with complex SEND. There is also an Education S106 funding contribution aligned to the scheme at Rise Park Primary, as set out in the recommendations and background to this report.

Resolved to

(1)  approve the total allocation of funding of £1,200,000.00 comprising £1,141,835 from the High Needs Capital Fund and £58,165 Education S106 funding contribution, to create a specialist SEN provision at Rise Park Primary School and to amend the capital programme accordingly;

(2)  approve the total allocation of funding of £800,000 from the High Needs Capital Fund, to create a specialist SEN provision at The Milford Academy Primary School and to amend the capital programme accordingly;

(3)  authorise the procurement of necessary contracts and consultants to develop and deliver the projects using the SCAPE framework and delegate authority to the Corporate Director for Children & Education Services to award any procured contracts, complying with the Council Constitution and the relevant regulations, subject to costs being contained within the financial envelope;

(4)  authorise the procurement of the construction contract for the expansions utilising the SCAPE framework to carry out the building works and to delegate authority to the Corporate Director for Children & Education Services to award any procured contracts, complying with the Council Constitution and the relevant regulations, subject to costs being contained within the financial envelope;

(5)  procure external legal resources using compliant frameworks and to delegate authority to the Corporate Director for Children & Education Services to award any procured contracts, complying with the Council Constitution and the relevant regulations, subject to costs being contained within the financial envelope;

(6)  enter into the necessary agreements with The Milford Academy Primary School to carry out the works and delegate authority to the Corporate Director for Children & Education Services in consultation with the Director of Legal Services to award the agreements

Reasons for decisions:

·  High Needs Capital funding is intended to support the Council to fulfil its sufficiency duties in relation to the availability of suitable specialist school places for young people with complex SEND. More specialist places are required to address the existing cohorts as well as to make provision for the identified growing need. The proposals align with strategic priorities and will deliver additional capacity which is accessible for pupils in high areas of need, evidenced by the data set out in the strategy.

·  The provision at Rise Park Primary will create additional physical space, suitable to meet the needs of pupils with specialist needs who are already on roll at the school. The provision at The Milford Academy Primary will grow the number of specialist places beyond their normal admission number, creating additional places as set out below in 1.9 and 1.10, and which will be commissionable by the LA.

·  It is essential that there are sufficient local places for the growing number of high needs pupils, to avoid the need to place pupils in costly out of area independent provision, while also helping to reduce the resultant requirement for longer distance transport provision.

·  Remodelling of the high needs block was undertaken in November 2023 which confirmed affordability of all Phase 1 schemes in the SEND Capital Strategy at that point in time. The 2023-24 out turn position has suggested a different outlook following an in year deficit, and further modelling is now being undertaken to ensure sustainability

·  The need for SEN provisions at both Rise Park and Milford Academy Primary Schools, were identified as priorities during Phase 1 of the SEND Capital Strategy 2023-28, which was consulted on and approved by Executive Board in September 2023. The LA has been working in successful partnership with both schools to develop specialist provisions within the mainstream schools and for the local area.

Other options considered:

·  The schemes proposed in this report are two of the six schemes identified in Phase 1 of the SEND Capital Strategy. Risks of not investing the funds: there will be fewer specialist places for the growing numbers of children and young people identified with complex SEND. There is currently insufficient provision in primary settings.

·  Without this investment, there could be a potential increase in independent school placement cost.

·  The announcement from the DfE on a further allocation of High Needs capital funding to enable the LA to deliver more capacity is awaited, which will also be considered as part of remodelling the revenue impact to ensure sustainability.

Report of the Executive Member for Housing and Planning

Councillor Jay Hayes, Executive Member for Housing and Planning, presented the report on the development of Laura Chambers Lodge (a former care home in Clifton East) by Nottingham City Council for social housing. The development will be accounted for in the Housing Revenue Account and the scheme funded by a combination of Right to Buy Replacement Fund Receipts (RTB RF) and Section 106 contributions. The scheme capitalises on the recently enhanced accessibility of RTB RF to entirely fund new social housing, and would deliver up to 40 homes assisting in address of NCC’s 10,000 plus waiting list and homelessness pressures to the General Fund.

Members acknowledged that the site has been vacant for a number of years and welcomed the development.

It was recommended that the flats be prioritised for elderly citizens.

Resolved to

(1)  agree to the demolition and redevelopment of the site of Laura Chambers Lodge for approximately 40 units of social housing and this be reflected in the capital programme;

(2)  agree the use of £8.37m RTB RF/HRA capital funding for this scheme;

(3)  agree the use of £1.4m of s.106 contributions for this scheme;

(4)  agree the appropriation of the site of Laura Chambers Lodge from General Fund to HRA and debt-reapportionment between GF and HRA equivalent of the market value of the land;

(5)  agree delegation of approval for any change in unit cost to the Corporate Director of Growth & City Development in consultation with the Corporate Director of Finance and Resources/s.151 Officer.

Reasons for decisions:

·  NCC currently has over 10,000 households on its housing register, and also faces significant general fund pressures from homelessness regarding the use of nightly paid temporary and emergency accommodation. Increasing the housing stock will allow for the allocation secure tenancies, creating throughput in established temporary accommodation and therefore reducing use of nightly paid accommodation from the private sector (e.g. Hotels).

·  Increasing the HRA housing stock will help secure the necessary rental income over the medium to long term, which is vital for replenishment of the repairs reserves and operating budgets for existing and new stock.

·  Changes to the RTB RF retention agreement allowing schemes to now be 100% funded by these receipts are in place until 31st March 2026 whereby they will be reviewed review, therefore maximum benefit is gained from assigning and spending in this period.

Other options considered:

·  Conversion to temporary accommodation. This could deliver 24 units of temporary accommodation, funded by general fund resource and s.106 commuted sums. As the site sits in the general fund and cannot be appropriated and developed using HRA resource with the purpose of immediate onward disposal, the scheme would need to delivered by and leased from the general fund to an external RP, in order to deliver support to the scheme and access exempt housing benefit levels. NCC would receive no rental income or no receipt, however savings could be made against the cost of private nighty paid/ emergency accommodation and the decommissioned sites security costs. Better outcomes regarding savings against the costs of homelessness accommodation can be delivered by converting decommissioned HRA independent living schemes with a greater number of units and therefore onward savings, at lower cost, using HRA resources and be ready more quickly. Security costs savings would apply to any development option. This option was therefore rejected.

·  Sale on open market. This would generate a capital receipt that could be used to support the capitalisation of Exceptional Financial Support. The combination of the debt re-apportionment resulting from the appropriation, relief of homelessness spend pressures in the medium term, the availability of 100% RTB RF funding, and the challenges of finding pipeline sites in Nottingham city however, outweighs the short term benefit of the capital receipt and means social housing delivery presents more long term benefit. This option was rejected.

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

Councillor Ethan Radford, Executive Member for Skills, Growth and Economic Development, presented the report on the letting of vacant first floor Grade A office suites at the Elizabeth Garrett Anderson Building, Nottingham Science Park, the terms of which represent best consideration. The unit has been openly marketed by a commercial property letting Agent which has recommended the Council accept the heads of terms for lease. The letting will provide a significant rental income and remove existing void costs.

Resolved to

(1)  approve the lease terms agreed with the prospective tenant in respect of the subject property as set out within the exempt appendix;

(2)  approve the payment of associated fees;

(3)  delegate the approval of any required final terms and conditions, save for rent, to the Director of Economic Development & Property.

Reasons for decisions:

·  The property is currently vacant, with the opportunity marketed by an external agent on behalf of the Council. Heads of terms for lease have been negotiated with the prospective tenant at market rental value representing Best Consideration.

Other options considered:

·  Not to proceed with the letting to the prospective tenant – this is not recommended as this is a significant letting at the property on market facing terms providing a rental income at market rental value over the lease term which will remove the Council’s liability for ongoing void costs.

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.

Exempt minutes of the meeting held on 19 November 2024, for confirmation

The exempt minutes of the meeting held on 19 November 2024 were confirmed as a correct record and they were signed by the Chair.

Councillor Jay Hayes, Executive Member for Housing and Planning, presented the exempt appendix which was noted by the Board.

Councillor Ethan Radford, Executive Member for Skills, Growth and Economic Development, presented the exempt appendix which was noted by the Board.