Agenda and draft minutes

Cabinet
Tuesday 16 July 2019 4.00 pm

Venue: Ground Floor Meeting Room GO2C, 160 Tooley Street, London SE1 2QH

Contact: Paula Thornton  Phone: 020 7525 4395 Email:  paula.thornton@southwark.gov.uk

Items
No. Item

1.

Apologies

2.

Notification of any items of Business which the Chair Deems Urgent

    In special circumstances, an item of business may be added to an agenda within five clear working days of the meeting.

    Minutes:

    The chair gave notice of the following late items:

     

    Item 7:    Deputation requests

     

    Item 24:  Gateway 1 – Procurement Strategy approval for main works at Flaxyard and Peckham Library Square

     

    Item 26:   Policy and Resources Strategy: Financial Remit 2020-21.

     

    Reasons for urgency and lateness will be specified in the relevant minutes.

     

    STATEMENT ON THE COUNCIL’S POSITION ON BREXIT

     

    Councillor Victoria Mills, cabinet member for finance, performance and Brexit made the following statement to cabinet in respect of the council’s position on Brexit:

     

    “At a meeting of the cabinet on Tuesday 22 January 2019, cabinet agreed a motion which was referred from council assembly. 

     

    The motion from council assembly that was agreed by cabinet noted:

     

    ·  Southwark’s EU referendum result was one of the highest in the UK in favour of staying in the EU – 73% voted to Remain.

     

    ·  The Government’s own impact assessments show that the UK is likely to be worse off in every scenario after Brexit.

     

    ·  A recent report by the Centre for Economic Performance at the London School of Economics noted that Inner London Boroughs like Southwark will be amongst those that will suffer the most from Brexit, of whatever variety.

     

    ·  There are a large number of non-UK EU nationals living in Southwark who are concerned about the impact of Brexit on their lives, and that their current rights are not being fully protected.

     

    Cabinet also agreed the following recommendations:

     

    a.  Believes that the people of Southwark should have scrutiny of what is being negotiated on their behalf and an opportunity to vote either in a General Election, or failing that, a public vote on the final deal, including the option to remain in the EU.

     

    b.  Supports all options remaining on the table in the event that a General Election is not called immediately, including formally adding its voice to those calling for a public ‘People’s Vote’ on the final Brexit deal.

     

    c.  Asks the three Members of Parliament that represent Southwark to publicly support a 'People’s Vote' before any version of Brexit is implemented in the event that a General Election is not called immediately.

     

    In the six months since we agreed the motion, a general election has not been called, and it therefore it is the policy of this council to support a public vote on any final deal and ask that this be formally noted by cabinet.

     

    Given the overwhelming support from Southwark residents to remain, and the harm that leaving the EU would cause to Southwark, it should be formally noted that this administration’s policy is that the UK should remain in European Union.” 

3.

Notice of Intention to conduct business in a closed meeting, and any representations received

4.

Disclosure of Interests and Dispensations

    Members to declare any interests and dispensations in respect of any item of business to be considered at this meeting.

    Minutes:

    Councillor Rebecca Lury declared a non-pecuniary interest in respect of item 23: The Old Vic Annex and confirmed her intention to refrain from the discussion and decision making on this item (as the report nominated her as an appointee to the Old Vic Board of Trustees).

     

    Councillor Evelyn Akoto declared a disclosable pecuniary interest in respect of item 14: Southwark Heat Networks Strategy update and confirmed her intention to withdraw from the meeting and leave the meeting room when this item was being discussed.

5.

Public Question Time (15 Minutes)

    To receive any questions from members of the public which have been submitted in advance of the meeting in accordance with the cabinet procedure rules. The deadline for the receipt of a public question is midnight Wednesday 10 July 2019.

    Minutes:

    There were no public questions.

6.

Minutes

7.

Deputation Requests

    To consider any deputation requests.

    Supporting documents:

    Minutes:

    The report had not been circulated five clear days in advance of the meeting. The chair agreed to accept this item as urgent as the request had been received in line with the constitutional deadline for the receipt of deputation requests.

     

    RESOLVED:

     

    That the deputation be heard.

     

    The spokesperson for the deputation addressed the meeting to outline a number of issues impacting residents in respect of heating as follows:

     

    ·  The costs of leaks and remedial work for homeowners. Large bills had been received with no breakdown in costs (sometimes amounting to a large proportion of annual salary)

    ·  Queried whether Southwark is a member of the Heat Trust

    ·  Extent of the work required to rectify issues and associated costs

    ·  Claimed no guarantee for completed works, which represented a substantial  financial investment by homeowners.

     

    These representations were made as cabinet considered an item elsewhere on the agenda at item 14: Southwark Heat Networks Strategy update.

     

    Councillor Kieron Williams, cabinet member for housing management and modernisation, responded saying he was happy to meet with representatives and discuss in detail all the relevant issues affecting the residents.

8.

Ledbury Towers Update

    To note the latest position with the Ledbury Towers and to agree that the final report due from Arup on the investigations will be published upon receipt.

    Supporting documents:

    Minutes:

    RESOLVED:

     

    Decisions by  the Cabinet

     

    1.  That the latest position with the Ledbury Towers be noted.

     

    2.  That the final report due from Arup on the investigations be published upon receipt.

     

    Decision by the Leader of the Council

     

    3.  That any actions required by Southwark Council in response to the Arup report be delegated to the cabinet member for housing management and modernisation.

9.

Borough Emergency Plan 2019

10.

Council Plan Annual Performance Report 2018-19

11.

Mid-term review - Cultural Strategy 'Creative Southwark 2017 to 2022'

12.

Response to Recommendations from Community Safety Scrutiny Commission Report, Violence Against Women and Girls (VAWG) Scrutiny Review

13.

Violence Against Women and Girls Strategy

14.

Southwark Heat Networks Strategy Update

    To note the update on the delivery of the council’s 2017-20 district heating investment plan and agree related recommendations.

    Supporting documents:

    Minutes:

    Councillor Evelyn Akoto having declared a disclosable pecuniary interest in this item, left the meeting room while this item was being discussed and a decision made.

     

    RESOLVED:

     

    Decisions the Cabinet

     

    1.  That the action being taken to address the causes of major heating outages that occurred during winter 2018-19 (paragraphs 33-35 of the report) as well as the update on the delivery of the council’s 2017-20 District Heating Investment Plan (Appendix 3 of the report) be noted.

     

    2.  That £490,000 be invested in developing low carbon heat networks to serve council (and wider) homes in Southwark. This will fund the detailed technical and financial viability and development plan work needed to advance the extension of the South East London Combined Heat and Power (SELCHP) network and to develop renewable heat networks on council estates as well as work needed to improve the council’s heat networks data and management processes (as summarised in paragraphs 92-108 and 153-165 and Appendix 2 of the report).

     

    3.  That a Southwark Heat Networks Strategy, setting out the approach the council will take to improve and extend heat networks in the borough so more households have access to reliable, affordable and sustainable heat, and an accompanying Heat Networks Investment Plan be brought to cabinet in March 2020 for approval.

     

    4.  That the establishment of a heat networks governance board as described in paragraphs 197-199 of the report to drive forward this work and ensure that issues of compliance, maintenance, resident engagement and investment strategy receive sufficient scrutiny and are resolved efficiently be agreed.

     

    5.  That the establishment of a heat networks residents & homeowners working group as described in paragraphs 200-206 of the report, made up of representatives of council residents, homeowners and tenant management organisations, to provide feedback and advice on the management of council’s existing district heating systems and the development of new systems and of the wider Southwark Heat Networks Strategy be agreed.

     

    6.  That the conversion of the fixed term strategic project manager (heat networks) into a permanent role and creation of a two year heat networks officer to take forward the development and delivery of the council’s heat networks strategy, which is known to require several years be noted.

     

    7.  That the Heat Networks (Metering & Billing) Regulations and potential upcoming heat market regulation (see paragraphs 169-180 of the report) that could have significant financial and procedural impacts on the council be noted and that an update on the status of such regulations and the council’s position within 12 months be requested.

     

    Decision by the Leader of the Council

     

    8.  That the procurement strategy and award decisions relating to the renewable heating systems discussed in paragraphs 91-96 and 153-159 of the report be delegated to the cabinet member for housing management and modernisation for individual decision making (IDM).

15.

Intermediate rent housing list - feedback on the consultation and agreeing the next steps

16.

Southwark Workforce Strategy refresh 2019-2022

17.

Programme to Deliver 500 Paid Internships

18.

Response to recommendations from the Reducing Health Inequalities Through Council Services and Partner Organisations from the Healthy Communities Scrutiny Commission

19.

The Implementation of Free Healthy Nursery Meals

20.

Acquisition of Site for New Affordable Housing: former Boys Club Hawkstone Road Rotherhithe SE16 2PE

21.

Old Kent Road Planning and Regeneration Update

    To agree to pilot a Community Review Panel in the Old Kent Road.

     

    To note the progress of community engagement and responses to the evolution of the Old Kent Road Area Action Plan (AAP) and Old Kent Road community forums and to also note the consultation summary and report.

    Supporting documents:

    Minutes:

    RESOLVED:

     

    That it be agreed:

     

    1.  To pilot a community review panel in the Old Kent Road.

     

    2.  That the design review panel will review the Old Kent Road Area Action Plan (AAP).

     

    That the following be noted:

     

    1.  The progress of community engagement and responses to the evolution of the Old Kent Road Area Action Plan (AAP) and Old Kent Road community forums.

     

    2.  The consultation summary (Appendix A of the report) and consultation report (Appendix B of the report).

     

    3.  Progress on a public realm strategy for the proposed linear park and Frensham Street Park.

     

    4.  That officers will establish the Old Kent Road community review panel for reviewing planning applications in the Old Kent Road opportunity area.

     

    5.  That officers have instructed Hale Architecture to review and advise the council on proposed industrial development design and specifications.

     

    6.  That officers will update and include more detailed guidance in the AAP and develop a ground floor strategy, and further detail on tall buildings and industrial workspace design specifications.

     

    7.  Progress on making the Old Kent Road a Healthy Street and addressing the climate change emergency.

22.

Report and Recommendations of the Southwark Serious Youth Violence Panel

23.

The Old Vic Annex

    To approve the draft Head of Terms and finance arrangements for the loan to enable The Old Vic to expand their footprint to build a new community cultural hub for the theatre called The Annex, to open in 2022 that will provide a permanent home for the community to train, learn, connect and enjoy.

    Supporting documents:

    Minutes:

    Councillor Rebecca Lury having declared a non-pecuniary interest in respect of this item, refrained from the discussion and decision making.

     

    RESOLVED:

     

    1.  That the draft Head of Terms and finance arrangements for the loan of £3,750,000 to enable The Old Vic to expand their footprint to build a new community cultural hub for the theatre called The Annex, to open in 2022 that will provide a permanent home for the community to train, learn, connect and enjoy be approved.

     

    2.  That the community benefits programme offered by The Old Vic and the anticipated positive impact on Southwark residents be noted.

     

    3.  That it be noted that in recognition of the geography of The Old Vic building and its catchment area The Old Vic are in parallel discussions with Lambeth Council about a similar arrangement due to the associated social value.

     

    4.  That it be noted that to protect and oversee the council’s financial investment in the Annex, Southwark will seek a nomination to the Old Vic Board of Trustees. The council has nominated the cabinet member for culture, leisure, equalities and communities. The nomination will be reviewed on an annual basis.

     

    5.  That powers to negotiate and agree the final terms relating to the financial arrangements be delegated to the strategic director of finance and governance in consultation with the cabinet member for finance, performance and Brexit and the cabinet member for culture, leisure and communities.

24.

Gateway 1 - Procurement Strategy Approval for Main Works for Flaxyard and Peckham Library Square

    To approve the procurement strategy for a design and build contract through the Notting Hill Genesis (NHG) framework for the construction of new homes at Flaxyard and Peckham Library Square commencing on 27 January 2020.

    Supporting documents:

    Minutes:

    The report had not been circulated five clear days in advance of the meeting. The chair agreed to accept the report as urgent in order to maintain the delivery timetable of the council’s new homes programme. Another key driver was the need for Peckham Platform who will be taking the gallery space at the Peckham Library Square site to draw down their Art Council grant for the fit out of the new gallery by April 2021. If there was a delay to gateway 1 being presented to cabinet for the main works contract, this would have a serious impact upon the delivery timescales.

     

    RESOLVED:

     

    Decisions by the Cabinet

     

    1.  That the procurement strategy outlined in the report for a design and build contract through the Notting Hill Genesis (NHG) framework for the construction of new homes at Flaxyard and Peckham Library Square commencing on 27 January 2020, at an estimated value of £38.2m (which includes the cost of any pre-construction services agreement - PCSA) for a period of 2 years, or until the main works complete, be approved.

     

    2.  That it be noted that the total project funding requirement at an estimated value of £42.5m will be met through Greater London Authority (GLA) grant and the housing investment programme (HIP) resources and the financial assumptions underpinning this investment as outlined in paragraph 75 of this report.

     

    Decisions by the Leader of the Council

     

    3.  That the award decision outlined in the report for the design and build contract and a PCSA for Flaxyard and Peckham Library Square be delegated to the strategic director of housing and modernisation in consultation with the cabinet member for social regeneration, great estates and new council homes.

25.

New Homes Site Purchase, SE15

    To authorise pursuant to s120 of the Local Government Act 1972 and s9 of the Housing Act 1985, the acquisition of the freehold interest in the site identified in the closed report.

     

    Supporting documents:

    Minutes:

    RESOLVED:

     

    1.  That pursuant to s120 of the Local Government Act 1972 and s9 of the Housing Act 1985, the acquisition of the freehold interest in the site identified in the closed version of this report be authorised.

     

    2.  That the principal purchase terms and negotiating parameters set out in paragraph 14 of the closed version of this report and outlined in paragraph 14 of the open report be authorised.

     

    3.  That authority to agree the final terms of the acquisition provided they are not inconsistent with the principal terms and negotiating parameters and satisfy the council’s fiduciary duty be delegated to the director of regeneration in consultation with: the strategic director of housing and modernisation; the strategic director of finance and governance; and, the cabinet member for social regeneration, great estates and new council homes.

26.

Policy and Resources Strategy 2020-21: Scene Setting Report

    To consider an update on update on the policy and resources strategy and related recommendations.

    Supporting documents:

    Minutes:

    The report had not been circulated five clear days in advance of the meeting. The chair agreed to accept the report as urgent because each year, the council updates a detailed policy and resources strategy covering, as a minimum, the following financial year.  The report initiates the 2020-21 to 2022-23 budget planning process and the detailed work on budget proposals.  Members and officers will undertake this work over the coming months in order to meet the timetable to prepare a budget proposal for submission to council assembly in February 2020. 

     

    RESOLVED:

     

    That the following be noted:

     

    1.  That Government has stated its intention to announce and then publish a Spending Review to take place in 2019 to determine resources available for the period from 2020-21 and that there is now lack of clarity as to whether that review will extend beyond one year.

     

    2.  That the progress on government’s fair funding review and its potential impact on London Councils remains unclear and in any event cannot be exemplified until the outcome of the spending review is complete.

     

    3.  That the Government has also stated its intention to implement a redesign of the Business Rates Retention System based on 75% retention with effect from April 2020, set alongside a reset of business rate baselines.

     

    4.  That there remains no confirmation of key components of government’s funding of councils and especially the future of the Better Care Fund, Improved Better Care Fund and New Homes Bonus.

     

    5.  That the long awaited government green paper on funding adult social care is still not published.

     

    6.  That there remains no confirmation of changes to the funding of new burdens and other demand pressures including children’s social care, dedicated schools grant (DSG) high needs costs and impacts of welfare reform.

     

    7.  That economic and financial impacts to the council of Brexit remain unclear and that any local budget pressure may need to be contained within the limited budget and reserve created as part of the 2019-20 policy and resourcing strategy and budget for 2019-20.

     

    8.  That Government decision taking and policy decisions insofar as they impact on local government remain unclear, specifically in the context of the election of a new leader of the Conservative Party, to take over as Prime Minister in late July.

     

    9.  That funding uncertainties make any meaningful financial planning extremely challenging, with a range of potential scenarios suggesting a funding gap in 2020-21 of anywhere between £4m and £32m, with the range of potential outcomes increasing widely beyond 2020-21 (paragraph 53 of the report) and that, subject to the inherent uncertainties, the central forecast indicates a potential budget gap of £18.9m in 2020-21.

     

    10.  That the central budget forecast is based on the following assumptions:

     

    ·  the impact of Spending Review and the Fair Funding Review will be neutral

    ·  the major grant funding sources, i.e. Public Health Grant, Better Care Fund, Improved Better Care Fund, Social Care Grants and New Homes Bonus will continue at 2019-20 levels

    ·  resetting the Business  ...  view the full minutes text for item 26.

Exclusion of the Press and Public

That the press and public be excluded form the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined category 3 of paragraph 10.4 of the access to information procedure rules of the Southwark Constitution.

 

The following is a summary of the decisions taken in the closed part of the meeting.

27.

Minutes

Minutes:

The closed minutes of the meeting held on 18 June 2019 be approved as a correct record and signed the chair.

28.

Acquisition of Site for new affordable housing: former Boys Club, Hawkstone Road, Rotherhithe, London SE16 2PE

Minutes:

The cabinet considered the closed information relating to this item. Please see item 20 for the decision.

29.

New Homes Site Purchase, SE15

Minutes:

The cabinet considered the closed information relating to this item. Please see item 25 for the decision.