Minutes for Cabinet meeting, Nov 20 2008, 5.00PM official page

This is the time for Members to declare any interest they may have in any matter being considered at this meeting.  Advice is attached.

Interests were declared as follows:

• Item 7 – Governance at The Royal Docks Community School and Eastlea Community School

Councillor Conor McAuley declared a  personal interest by virtue of being a School Governor at Royal Docks Community School.  Councillor Ted Sparrowhawk declared a personal interest by virtue of being a School Governor at Eastlea Community School.

Decisions of the Mayor in consultation with the Cabinet made on 23 October 2008.

The minutes of the Cabinet meeting held on 23 October 2008 were agreed as a correct record.

Report of the Head of Canning Town and Custom House Regeneration

Exempt appendix attached as agenda item 11

Helen Fisher, Head of Canning Town and Custom House Regeneration, presented a report seeking permission to commence the implementation of the A13 junction improvements project by approving the funding strategy for the scheme, agreeing to the commencement of procurement for detailed design and construction and to the submission of a planning application. The Mayor in consultation with Cabinet was asked to agree that the Council enters into a funding agreement and accept the Community Infrastructure Funding grant (CIF) once confirmation is received.

Decision

The Mayor in consultation with Cabinet agreed:

1.  that the Council enters into a funding agreement with the Department of Communities and Local Government (DCLG) to receive a Community Infrastructure Grant (CIF), in the sum of £18 million, once formal confirmation is received from DCLG;

2.  the overall funding strategy for the Junction Improvements, comprising of £18 million from CIF and £6 million from S106 planning tariff receipts and noting the potential implications for the Council’s Budget Strategy for 2009/10 and future years;

3.  that the contract for the Design Team for the Junction Improvements be novated and extended from London Thames Gateway Development Corporation to London Borough of Newham to support the design work through the planning application process;

4.  to give delegated authority to the Executive Director for Environment in consultation with the Executive Member for Regeneration and the Executive Member for Public Realm to submit a planning application for the proposed Canning Town Junction Improvement works to the London Thames Gateway Development Corporation as the Planning Authority; and

5.  that LBN can commence the OJEU tender process for the A13 Junction improvements capital works contract; with the award of the contract being subject to obtaining planning permission and securing funding.

Reasons for the Decision

The delivery of the A13 Canning Town junction improvements is critical to achieving a step change in Canning Town: the current dominant road system significantly limits the regeneration potential for Canning Town.

This decision is subject to the call-in process as the decision was based on part exempt information.  The call-in period will expire at 5pm on 3 December 2008.

Report of the Head of Learning and Schools

Kim Bromley-Derry, Executive Director for Children and Young People,  presented a review of the Children and Young People’s Plan 2006-2012.  The Council is statutorily required to undertake and publish an annual review of its Plan in each year that a new one is not published. 

The Plan is a strategic document to guide the effective delivery of services for children and young people by the Council and key partners.  The action plans are embedded within the service planning process for the Council and its key children and young people’s strategic partners.  It is subject to support from key partners in Newham. 

Decision

The Mayor in consultation with Cabinet agreed:

1.  to note and agree the Children and Young People’s Plan Review;

2.  that the Review is published in accordance with the statutory requirements subject to any amendment which may result following consideration by key partners; and

3.  to delegate authority for any minor amendments following the approval process of key partners to the Executive Director, Children and Young People in consultation with the Executive Member for Children and Young People.

Reasons for the Decision

The Children and Young People’s Plan 2006-2012 is a key element of the reforms underpinned by the Children Act 2004; reviewing it annually and publishing this review is a statutory requirement (under the Children & Young People’s Plan (England) Regulations 2005).

The report and decision have complied with Part 4.5, paragraph 16 of the Constitution.

The decision is not subject to the Call-In process and may be implemented immediately.

Report of the Head of Lifelong Learning and Economic Wellbeing

Kim Bromley-Derry presented a report seeking the Mayor in consultation with Cabinet to endorse the recommendation that the Council should immediately explore alternative governance arrangements for two underperforming schools in Newham.

It was recommended that The Royal Docks Community School should acquire Academy Status and the reasons for this and the proposed process are outlined in the report.  It was further proposed that the Council immediately explores National Challenge Trust School Status at Eastlea Community School alongside a major school improvement plan.

The proposals are in accordance with the current guidance from Department for Children, Schools and Families, the criteria set by the Office of the Schools Commissioner and Newham’s, the strengthened Monitoring, Challenge and Intervention policy framework agreed by Council this year and the current Building Schools for the Future Strategy for Change document.

In regard to Eastlea, Members noted that officers will be exploring the option of a National Challenge Trust Status at the same time as working with the Governors and London Challenge to put a school improvement plan together.

Decision

The Mayor in consultation with Cabinet agreed:

1.  to endorse the move to acquire Academy Status for The Royal Docks Community School before September 2009;

2.  that the Executive Director for Children and Young People’s Services, in consultation with the Executive Member for Children and Young People’s Services, will explore National Challenge Trust Status for Eastlea Community School while also working with the Eastlea Community School Governing Body on an appropriate school improvement plan.  If sufficient progress is not made by agreed milestones being reached that they have the delegated authority to move the process to change the school governance arrangements to National Challenge Trust Status during the year 2008/09; and

3.  that the Executive Director for Children and Young People’s Services have delegated authority to take the necessary steps to implement the proposals in accordance with the relevant guidance and to enter into any necessary legal documents including those outlined in this report to give effect to the proposals provided such documentation is in accordance with the usual form expected of such transactions.

Reasons for the Decision

The London Borough of Newham has a clear vision of excellence for its Children and Young People’s Services and this includes all the schools in the Borough.  Changing the governance arrangements for these schools - an Academy at The Royal Docks Community School and the possibility of a National Challenge Trust School at Eastlea Community School – will allow input from business and academia which it is believed, will drive up standards, attract resources and improve the life chances of the children who attend these schools.

The option of an academy at Eastlea Community School was explored but it was decided not to recommend this option as suitable for this school under the criteria set by the Office of the Schools Commissioner.

The report and decision have complied with Part 4.5, paragraph 16 of the Constitution.

The decision is not subject to the Call-In process and may be  ...  view the full minutes text for item 5.

Report of the Head of Finance

Report to follow

John Turnbull, Head of Finance, presented a report updating Members on treasury management in the current year.  The Mayor in consultation with considered a report outlining a revised policy on Minimum Revenue Provision Policy Statement and the revising prudential indicators in the light of operational developments.

Previously, the Council agreed a Treasury Policy Statement and the Annual Investment Strategy for 2008/09 on 25 February 2008 which incorporated the Annual investment Strategy and the Prudential Indicators. 

The report is urgent and cannot wait until the next meeting because the prudential indicators need to be set appropriately to allow effective operation of treasury management.  The Minimum Revenue Provision policy will allow certainty of the treatment of capital financing charges to be identified and incorporated into budget monitoring and in the current banking climate it is important that the approach to managing treasury risk is understood.

The report is late following the significant reduction in the base rate on 6 November from 4.5% to 3.00%.  Consultation with our advisors was necessary on the implications and in particular to consider the implications of the effect on interest rate forecasts.

Discussion included noting that new investments are being restricted to banks or building societies in the UK or Ireland and that the rate of inflation is expected to remain low until 2010. 

Decision

The Mayor in consultation with Cabinet:

1.  noted the progress on Treasury Management activity to 30 September 2008;

2.  noted the change to Treasury Management Practices agreed by the Executive Director of Resources under delegated powers following consultation with our Treasury advisors (proposed amendment shown in italics):

“The Council will not invest in subsidiaries that do not have a credit rating in their own right unless the subsidiary is fully and unconditionally guaranteed by the parent which meets the high credit rating criteria which has been established by the authority.”

3.  agreed and recommended to Full Council the revised Minimum Revenue Provision Policy Statement; and

4.  agreed and recommended to Full Council the changes to Prudential Indicators in paragraph 6 of this report.

Reasons for the Decision

The Treasury Management Update is a requirement of the Council’s reporting procedures and recommended by both the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. The Council is required to comply with both Codes through Regulations issued under the Local Government Act 2003.

Full Council’s approval of the Minimum Revenue Provision Policy Statement is a requirement of the revised Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2008 [SI 2008/414].

A requirement of the Prudential Code is that in year revisions to the Prudential Indicators, arising from strategic or operational reasons require Council approval. 

This decision is subject to the call-in process as the report was not available five clear days before the decision was taken. The call-in period will expire at 5pm on 3 December 2008.

Set out in the attached report is a list of those items scheduled for this meeting which have not been submitted and a list of those items scheduled to be considered at the next meeting.

The Mayor noted:

1.  the items originally scheduled for this meeting of Cabinet but which were not submitted, together with the reason for the delay and the rescheduled date; and

2.  those items listed on the Forward Plan scheduled to be considered at the next meeting of Cabinet.

In accordance with Section 100(A)(4) of the Local Government Act 1972, the Committee is asked to resolve that the press and public be excluded from the meeting for specific items of business on the grounds that they may involve the likely disclosure of exempt information as defined in the paragraph of Part I of Schedule 12A to the Act, as amended.

Agreed to exclude the press and the public from the remainder of the meeting during consideration of the following exempt information:

·  Exempt Appendix for Agenda Item 5 - Canning Town Junction Improvements