Agenda and draft minutes

Councillor Kevin Clarke – work commitments

Councillor Ethan Radford declared a Disposable Pecuniary Interest in agenda item 6 - Warm Homes: Social Housing Fund (minute 118). He left the meeting prior to discussion and voting on this item.

Minutes of the meeting held on 18 March 2025, for confirmation.

The minutes of the meeting held on 18 March 2025 were confirmed as a correct record and they were signed by the Chair

Reports of the Executive Member for Housing and Planning.

Councillor Jay Hayes, Executive Member for Housing and Planning, presented the report setting out the planned use of the totality of the Ringfenced Public Health Grant 2025-26 allocation. This is an important part of the strengthened governance processes to provide assurance that all expenditure is eligible, and has been recognised as best practice by the Office of Health Improvement and Disparities.

Resolved to

(1)  note and endorse the receipt of £39.620m ring-fenced public health grant in 2025-26 for the purpose of improving public health and wellbeing outcomes in Nottingham;

(2)  note and endorse the use of £35.386m of the ring-fenced public health grant for 2025-26 for activity commissioning and grant funded directly by public health, in line with agreed relevant strategies and plans;

(3)  note and endorse the use of £4.303m of the ring-fenced public health grant for 2025-26 to wider Council services (as set out in Table 5) to enable the delivery of additional activity which will contribute to improved health and wellbeing outcomes for Nottingham’s residents.

Reasons for decisions:

·  Nottingham City’s Ringfenced Public Health Grant (RFPHG) allocation for 2025-26 has been confirmed as £39.620m. The grant is ring-fenced for use on public health functions, meaning that the main and primary purpose of all grant expenditure is public health. The local authority circular published alongside the grant allocation sets out the conditions that apply to the grant, as well as reporting requirements. Receipt of the RFPHG supports the local authority to meet its duty to improve the health and wellbeing of the local population.

·  Use of the RFPHG must be informed by the health needs of the local population. The Joint Strategic Needs Assessment published on Nottingham Insight, identities the health and wellbeing needs of the local population. This informs the Integrated Care Strategy (for Nottingham and Nottinghamshire), and the Joint Local Health and Wellbeing Strategy for Nottingham, which in turn inform the Public Health Divisional Plan. The public health commissioning framework (previously approved by CPEC – March 2023) sets out the principles and processes through which these strategies and plans, alongside other relevant drivers are translated into commissioned/grant-funded services and activity. The planned use of the RFPHG allocation in 2025-26, as set out in this report, is assessed as being the most appropriate allocation of resource to ensure the delivery of activity required within the conditions of the grant, as well as address the health and wellbeing needs of the local population, line with statutory duties, strategies and plans.

·  The conditions in which people are born, grow, live work and age have a profound influence on health and health inequalities. Local authorities have a key role to play in shaping these conditions, and as a consequence also have a key role in terms of improving the health and wellbeing of the local population (in line with statutory duties). It is recommended that RFPHG continues to contribute to a range of wider Council services in order to enable the delivery of additional activity which improves health and wellbeing. Arrangements are in place to ensure effective ongoing joint working and regular review of contributions to provide assurance that all RFPHG expenditure continues to be eligible.

Other options considered:

·  There are very clear terms and conditions relating to the use of the RFPHG. Alongside the implementation of the agreed transition plan (2022-23 to 2024- 25) public health governance processes have been strengthened to provide confidence that commissioned services deliver best impact (in relation to health and wellbeing outcomes) within the total resource available. All decisions relating to RFPHG expenditure are considered by Public Health Programme Board (PHPB). PHPB must be assured that the recommended option is an eligible, effective and efficient use of the RFPHG prior to onward consideration and approval in line with Council processes. Consideration of alternative options is a key part of this process.

Report of the Executive Member for Carbon Reduction, Leisure and Culture.

Councillor Ethan Radford declared a Disclosable Pecuniary Interest in this item.He left the meeting prior to discussion and voting on this item.

Councillor Sam Lux, Executive Member for Carbon Reduction, Leisure and Culture, presented the report seeking approval to lead a regional consortium project for up to £151 million for the Warm Housing: Social Housing Fund Wave 3 (WH: SHF) from the Department for Energy Security and Net Zero (DESNZ) with the Council as the Lead Authority, to be administered by the Midlands Net Zero Hub (MNZH).

WH: SHF will upgrade a significant amount of the social housing stock currently below Energy Performance Certificate (EPC) C up to that standard. It will support the installation of energy performance measures in social homes in England, and help deliver warm, energy-efficient homes; reduce carbon emissions; tackle fuel poverty; support green jobs; develop the retrofit sector; and improve the comfort, health and well-being of social housing tenants. £1.29 billion has been committed for the WH: SHF as part of the 2024 Autumn Budget. The WH: SHF Wave 3 2.1 competition will allocate as much of this funding as possible to support the installation of energy performance measures in social homes in England. Grant funding agreements signed with successful lead applicants / projects start from April 2025, with the delivery window for WH: SHF running to 30 September 2028, with all grant spent by 31 March 2028. MNZH led a successful regional consortium bid for SHDF Wave 1 and SHDF Wave 2.1. The grant funding value for these bids are £14.9m & £47.2 million respectively, with a total project cost of £26.4m and £102 million respectively. The current delivery model developed and implemented through SHDF Wave 1 & 2.1 offers an effective route for the delivery of WH: SHF Wave 3 across the Midlands. This decision will generate an additional £222,000 management fee to contribute £65,000 towards 2025-26 financial returns £82,000 towards 26-27 financial returns and £75,000 towards 27-28 financial returns from the Carbon Reduction, Energy and Sustainability (CRES) Division supporting MTFP projections.

Resolved to

(1)  note approval to bid and accept funding from Warm Homes: Social Housing Fund Wave 3 was provided through a Leader’s Key Decision (LKD 5218- Warm Homes: Social Housing Fund Wave 3);

(2)  approve spend of up to £75,857,513 of grant funding awarded by the Department of Energy Security and Net Zero to implement Warm Homes: Social Housing Fund Wave 3;

(3)  delegate authority to Head of Services in consultation with the Director of Environment and Sustainability to manage the grant via the Midlands Net Zero Hub (MNZH) and to delegate authority to approve and signed funding agreements and manage grant expenditure in line with approved Project Initiation Document;

(4)  authorise allocation of grant funding to Local Authorities and Housing Associations in the Midlands for the installation of eligible measures by March 2028;

(5)  authorise the extension of existing technical consultant contract as specified in the Project Initiation Document;

(6)  delegate authority to the Head of Services in Midlands Net Zero Hub to initiate procurement (with the Council's Procurement Team) and award contracts for this project, including project management software, the creation and maintenance of a bespoke CRM system to meet scheme data reporting requirements.

Reasons for decisions:

·  Warm Homes funding was launched 30th September 2024 MNZH submitted a regional bid on 22nd November 24. This bid was successful and MNZH have been awarded £75,857,513m in grant funding, with a minimum co-funding requirement of 50% total project cost brings the total project value to at least £151,715,026. This funding will be awarded via a Grant Funding Agreement and Grant Offer Letter by DESNZ. MNZH will allocate these funds to the Registered Providers/Local Authorities included within the bid, as listed in the project initiation document attached. MNZH will issue separate Grant Funding Agreements to each consortium member, and this will require signature from each consortium member before funding is released. In additional all consortium members will be required to enter into a collaboration agreement as specified by DESNZ. MNZH will ensure any grants are given in compliance with the Subsidy Control Act 2022.

·  The funding will be allocated to the consortium as per the Project Initiation Document. MNZH will monitor performance through monthly reporting and will have controls in place to reallocate funding where necessary. From the 15% A&A funding MNZH will use 3%, this will include a fixed management fee to deliver the scheme, cover staff costs including additional fixed terms posts and any required admin to successfully deliver the scheme. The funding will be used to improve the Energy Performance Certification of social housing properties, over 5000 of which are in Nottingham City, resulting in environmental and health benefits.

·  MNZH were made award of the successful bidders on 28th February 2025. Agreements needs to be signed and returned as soon as possible to enable consortium delivery and meeting the department’s Key Performance Indicators, with project spend starting 1st April 2025.

·  As a result of feedback from other energy efficiency/fuel poverty schemes such as SHDF Wave 1 & 2.1 Sustainable Warmth Competition and HUG 2, some Local Authorities and Registered Providers of Social Housing lack capacity or may not have enough properties to submit an individual bid for funding, particularly within the required timescales. Therefore, a regional submission with MNZH as the Lead Authority offers an opportunity for all Local Authorities and Registered Providers in the region to access the needed funding to support thousands of fuel poor households. The current regional delivery of domestic retrofit offers an effective route for the implementation of Warm Homes: Social Housing Fund Wave 3 across the Midlands. This decision will generate an additional management fee to contribute towards 25-26, 26-27 and 27-28 financial returns from the CRPP Division, supporting the Medium-Term Final Plan (MTFP) projections.

Other options considered:

·  Not to spend allocation of funding- Without MNZH support, there could be significant missed opportunity to bring financial support into Nottingham and the wider midlands region to address the fuel poverty and domestic decarbonisation issues within social housing.

Councillor Ethan Radford returned to the room.

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. Following its establishment, local transport funding to the Constituent Councils is now directed through the East Midlands County Combined Authority (EMCCA) rather than directly from the Department for Transport (DfT) as in previous years. Allocations for the 2025-26 financial year, were considered at EMCCA’s Transport & Digital Connectivity Committee on 4 March and approved by the EMCCA Board on 10 March.

The funding award comprises of four strands:

· The Local Transport Plan (LTP), Integrated Transport Block (ITB), is provided to support local transport capital improvement schemes;

· An advancement of the City Region Sustainable Transport Settlement (CRSTS) funding for accelerated delivery this financial year to support early delivery of local sustainable transport schemes;

· The Active Travel Fund round 5 allocation for walking and cycling improvements; and

· The Bus Service Improvement Plan (BSIP) Capital Grant, aimed at enhancing bus services by improving reliability, affordability, and accessibility in line with the objectives of the National Bus Strategy and Greater Nottingham Enhanced Partnership Scheme.

A list of priority schemes has been developed, aligned to Council and emerging EMCCA LTP objectives, including ‘Keep Nottingham Moving’, promoting integrated transport, supporting the local economy, reducing carbon emissions and improving air quality.

To maximise delivery within the 2025-26 financial year, the allocations are centred on schemes that complement programmes already being delivered. The CRSTS allocation includes a revenue component for feasibility and development work to develop the future programme of CRSTS2 schemes. The BSIP funding will be used to accelerate the roll-out of electric buses in local bus operator fleets.

Resolved to

(1)  approve the proposed Transport Programme allocations for 2025-26 for the Local Transport Plan (LTP) Integrated Transport Block (ITB), City Region Sustainable Transport Settlement 2 (CRSTS 2), Active Travel Fund round 5 and the Bus Service Improvement Plan Grant (BSIP) Capital award as set out in Table 1 of Appendix A;

(2)  approve the initiation of procurement activities as set out in Tables 2-7 of Appendix A, and delegate authority to the Director of Planning and Transport/ Corporate Director for Growth and City Development to appoint the successful suppliers and contractors to deliver the programme, following the outcome of the procurement activities;

(3)  delegate authority to the Director of Planning and Transport/Corporate Director of Growth and City Development to accept the grant funding award set out above and enter into the requisite grant conditions in line with East Midlands Combined County Authority (EMCCA) assurance process, [in consultation with the Director of Legal and Governance [and s.151 Officer];

(4)  delegate authority to the Director of Planning and Transport/ Corporate Director for Growth and City Development to enter Grant Agreements with public transport operators for the BSIP funding, [in consultation with the Director of Legal and Governance].

Reasons for decisions:

·  The City Region Sustainable Transport Settlements (CRSTS) programme is a consolidated fund from the DfT awarded exclusively to the Mayoral Combined Authorities. It is a new funding stream for the region and will provide longer[1]term funding certainty up to 2032. It will enable transformational investment in infrastructure alongside the annual Highways Maintenance and Integrated Transport block awards linked to the Local Transport Plan.

·  In late January, government announced that £66m of CRSTS2 has been allocated to EMCCA (comprising £55m capital funding and £11m revenue funding) for accelerated delivery in the 2025-26 financial year.

·  Following this announcement EMCCA confirmed their proposed allocations to the Constituent Councils for the LTP - Integrated Transport block, CRSTS2 settlement, and the BSIP grants. These allocations were presented at the Transport & Digital Connectivity Committee on 4 March, ahead of formal approval at the EMCCA Board on 10 March. In addition to the funding allocations included in this report, the Board paper also noted confirmation of the Highways Maintenance Grant, and additional revenue funding for the Bus Service Improvement Plan (BSIP). The Highways Maintenance Grant was confirmed in December, and acceptance of this was approved at Executive Board in February as part of the Medium Term Financial Plan. The BSIP revenue funding is used for the on-going provision of targeted fare support, the Travel Safe Partnership and bus network support for services which would otherwise not be viable. Final details of the revenue funding allocation are still subject to final confirmation from EMCCA, and acceptance of this funding will therefore be subject to a separate Leaders Key Decisions once the allocation has been confirmed.

·  The ITB, CRSTS and BSIP funding allocations are focussed on schemes that can be delivered in the 2025/26 financial year ahead of a multi-year settlement expected after the Comprehensive Spending Review in the Spring. Acceptance of this funding will enable the City Council to deliver the agreed package of works across the three programmes. Details of the schemes being delivered within each programme, including their budget allocation and proposed procurement route are set out in tables two to five of Appendix A.

·  The Active Travel Fund (ATF) grant is an annual payment, which prior to establishment of EMCCA was paid direct to the Council following a bid submission. It has been agreed with both EMCCA and Active Travel England (ATE) that the latest round of funding will be used as continuation funding for the scheme currently in construction, to deliver the next phase of works.

Other options considered:

·  The option to refuse the grant funding was rejected as it would mean the council is unable to deliver the additional transport improvements being proposed and may also have a detrimental impact on the council’s ability to bid for further funding from the long-term CRSTS2 programme. The capital infrastructure investment in electric buses will also support the additional revenue funding being invested, helping to maintaining a stable bus network with good levels of service over the next three years.

·  The schemes included in the programme have been developed in discission with EMCCA for delivery to commence this financial year, as opposed to those requiring significant development work to be undertaken. The option to vary the programme was rejected as this may jeopardise our ability to deliver the programme within the agreed timescales and could be in breach of the terms and conditions of the funding awards.

·  Both options would potentially adversely affect the Council’s reputation as a national leader in local transport delivery.

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

Councillor Neghat Khan, Leader of the Council, presented the report updating Executive Board on the Council’s progress in implementing the Improvement Plan.

The Council is on track to deliver for the majority of its improvement programmes, with four programmes amber and one red. Financial management continues to be the Council’s biggest challenge so robust financial monitoring processes need to be closely managed and continually strengthened.

The Council is halfway through its 2-year improvement plan, and work will continue at pace to satisfy its three overarching aims over the next year.

Resolved to note the report.

Reasons for decisions:

·  The Council received Directions from the Secretary of State for Levelling Up, Housing and Communities on 22 February 2024. These Directions included the appointment of Commissioners to oversee the next phase of its improvement journey.

·  The Directions included a requirement for the Council to develop and agree an Improvement Plan to the satisfaction of the Commissioners, and to report on the delivery of the Plan at six monthly intervals or at such intervals the Commissioners may direct.

·  The Improvement Plan was developed in close liaison with Commissioners and agreed with them on 8th July 2024. The Plan also received political support and approval at the Council’s Executive Board on 16th July 2024. At an Extraordinary Meeting of City Council on 5th August 2024, Councillors formally approved the Plan as the Council’s overarching improvement plan in response to the Commissioner-led intervention.

Other options considered:

·  None

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, Paragraph 3, 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, Paragraph 3, 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.

Joint report of the Executive Member for Communities, Waste and Equialities and the Executive Member for Carbon Reduction, Leisure and Culture.

Councillor Sam Lux, Executive Member for Carbon Reduction, Leisure and Culture, presented the exempt report.

Resolved to approve the recommendations set out in the exempt report.

Reasons for decisions and other options considered are set out in the exempt minutes.

Councillor Sam Lux, Executive Member for Carbon Reduction, Leisure and Culture, presented the exempt appendix which was noted by the Board.