Agenda and draft minutes

Apologies were received from Cllrs Dunning and Ward.

To confirm the minutes of the meeting held on 25 July 2024  as a correct record.

The minutes of the meeting held on 25 July 2024 were confirmed as a correct record.

To note any declarations of interest made by members in connection with an agenda item. The nature of the interest must also be specified.

Members are asked to discuss any possible interests with Democratic Services prior to the meeting.

There were no Declarations of Interest.

To receive any public participation in accordance with the Council’s public participation scheme.

There was no public participation.

To receive an update from Citizen’s Advice New Forest on their activities and operation  over the last year and to make recommendations on future funding.

The Panel received a report on the future funding for Citizen’s Advice New Forest (CANF) and the Revenue and Benefits Service Manager introduced the item. 

The Panel were reminded that New Forest District Council (NFDC) provided a three-year funding agreement to the CANF since 2019. The latest and final year of funded, commencing from 1 April 2024, totalled £195,306 (+2.5%). The agreement over the past three years had enabled the CANF to plan and budget ahead with a level of certainty while also providing them with a platform to apply for further funding elsewhere. 

The Chief Officer of CANF provided a summary of what the Citizens Advice organisation was, along with an overview of the works undertaken by them. Members heard of the various ways in which the CANF had supported residents of the New Forest through the various advice programs and projects. The main points raised during this summary were as follows: 

The CANF is an independent organisation, whose mission as a charity working within the New Forest was to be a sustainable and adaptable service that continually reflects the demands and needs of the community.

In terms of priorities, the organisation’s three-year business plan was launched in 2023. The four main priorities are: to build the organisation’s services, to work in collaboration with partners, to grow the staff and voluntary base, and to deliver programmes of growth across Hampshire. 

The CANF attend community hubs across the District and liaise with Council departments, such as housing benefit and council tax. Work also takes place in partnership with local food banks and where possible the CANF will signpost people to other support channels across the New Forest. 

In 2023, 6500 people were assisted by the CANF and around 19500 total cases were answered on a range of issues. Typically, users of the CANF would have an average of 3.5 issues to raise including housing debt, benefits, employment.

41% of all people who accessed CANF services last year were met face to face, with 23% taking place on the telephone and 36% over webchat or email.

60% of users reported lower levels of stress, anxiety and depression as a result of the assistance received from the CANF. 

Of all the cases last year, 1483 related to benefits and tax credits, 985 concerned food banks and charitable support, 829 were debt-related and 805 were housing matters.

The CANF had worked, using a treasury-approved model of finance, to place a financial value on all of the work undertaken. Alongside this, robust internal management assessments found the financial benefits to the people in the area to be positive and for every pound that the CANF receive in funding results in £2.98 saved to public services.

65 volunteers gave around 17000 hours of service to the CANF last year. those trained volunteers saves £444,000 a year. 

The CANF employs 30 members of staff, the majority of which work on the CANF’s various projects.

One of the organisation’s largest funding streams is the national lottery project.  ...  view the full minutes text for item 19.

To receive an update on the activities of the Council’s Procurement function including  proposed changes to the Contract Standing Orders and following a review relating to  changes to Procurement legislation.

The Panel received a report on the Council’s updates to Contract Standing Orders following a review in alignment with the upcoming changes to procurement regulations.

The Strategic Procurement Manager summarised the report and explained that the UK’s public procurement regulations were being replaced with one set of regulations under the Procurement Act 2023 and that a new regime would come into force, following a delay from government, in February 2025. The Council’s current Contract Standing Orders document was introduced in March 2018 and had not been subject to major scrutiny or review since, therefore the Panel were now asked to consider the proposed changes to the Contract Standing Orders and provide their comments to Cabinet.

The Panel were informed that the key proposed changes to the Contract Standing Orders were to Increase the transparency threshold (at which we advertise contracts openly to the market) from £50,000 to £100,000. To require all requests for quotation to include at least one supplier from the local and surrounding areas. To increase scrutiny through a Breaches order, in which all known or discovered breaches of the Contract Standing Orders are reported to the Statutory Officers Group and the Audit Committee.

It was explained, on the requirements for quotations to include at least one local supplier, that these suppliers would be sought from the BH, SO and SP postcodes and that ‘where possible’ these local suppliers would be used.

On quality control and prevention of corruption, the Panel heard that the procurement team run spend analysis reports three times a year whereby all service managers scrutinise expenditure within their services. When the new regulations go live, the Council will legally be required to complete conflict of interest assessments for procurement above the national threshold. Furthermore, there are quarterly contract reviews of contractors undertaken and these are measured alongside the Council’s Key Performance Indicators.

Following a question on the new maximum percentage value of contract modification, the Strategic Procurement Manager relayed the percentages permitted by the regulations, and explained that all contract modifications must go back through the service manager, be signed and recorded and meet all of the relevant financial regulations. It was requested that, should a contract modification result in the contract value exceeding the next threshold, the relevant authorisation for that threshold should be obtained. 

On breaches, it was reported that these, along with waivers, will be reported annually through the Audit Committee for transparency and would form part of the internal audit work programme, if approved. From this, the reporting of breaches would be firmed up and regularised, starting with reports to senior officers.

On the proposed thresholds for works, goods and services between £25,000 to £100,000, it was heard that this would be undertaken, as a minimum, by way of an e-quotation from three suppliers, via procurement, where a panel would then score the bids alongside a scoreboard. This would enable more time and focus to be given on the higher risk contracts of over £100,000.

On emergency works, the Council  ...  view the full minutes text for item 20.

To receive an update on progress with the Transformation Programme.

The Panel received the normal update report on the Transformation Programme. The Assistant Director for Transformation gave a presentation on the key updates to the Transformation Programme. 

The Panel heard that the business case had been approved by Cabinet at their meeting in August and that all of the posts within the Transformation Team had now been filled. Detailed programme and implementation planning was now in progress. 

There were positive updates on all of the programme’s main themes, which were as follows:

On customer and digital services, the Panel heard that the Customer Strategy had been approved and that the Digital Strategy was being reviewed, with a view for consideration at Panel in the coming months, to ensure alignment with the overarching strategies. The ICT Work programme, informed by the business case, had also been approved, and the project to specify and procure a new digital platform had commenced.

On People and Capabilities, the people strategy development was underway (overseen by SEE) and that the completion of the staff survey saw 57% of all NFDC staff respond, which was an increase from 41% in 2023. The next tier of management development was commencing in September 2024 with 60 staff members taking place. 

On Asset and Accommodation, the asset review was in progress through a commissioned piece with MACE. The MACE team were interviewing key officers and initial findings were expected in mid-September with a final report in October. An Action plan would then be developed as part of the review to determine retention, redesign or disposal of operational assets.

On Finances and Delivery, the benchmarking on fees and charges had commenced and identified opportunities. A benefits realisation tracker was being developed based on the Local Government Association (LGA) transformation network example. The Change champions group recently met, of which a Portfolio Holder was a member, and terms of reference for this group were being re-established.

A set of quick wins were currently being explored, such as improved technology in the taxi driver licensing process. Many of these quick wins would see improvements and efficiencies taking place across the Council throughout a range of departments.

The Transformation and Improvement Manager then informed the Panel on the next steps for the programme. It was explained that the new Transformation team were setting up their processes for working effectively and the proper recording of the programme’s delivery. This process involved the identifying of gaps within the team’s knowledge base to ensure that there is the best delivery possible of the wider programme. Following this, the Project Management team must align with the ICT department and facilities, as well as other areas of business, in order to most efficiently work. Close-working with the Change champions would be imperative, with the first meeting taking place next week. 

Following a member question on recruitment to transformation roles, the Panel were informed that three transformation and improvement specialists had been recruited from across the private and public sector.  

On the closure of the existing app where residents  ...  view the full minutes text for item 21.

To receive an update on progress with the Solent Freeport.

The Panel received an update on the Solent Freeport. The Strategic Regeneration Advisor gave a presentation on the key updates, which were as follows:

Members were reminded of the Freeport guidance which sets out that Freeports are special areas within the UK’s borders where different economic regulations apply. By delivering investment on specific sites benefitting from tax and customs incentives, Freeports are expected to create thousands of high-quality jobs in some of the country’s most disadvantaged communities. The guidance sets out that sites have been carefully selected for their suitability for development by local authorities and key private partners and sit within the outer boundary. 

The main national objectives of the Freeport programme are to create hubs for global trade and investment, to create hotbeds for innovation and to promote regeneration and sustainable economic growth.

The key tools available to achieve these objectives are:

Tax sites, where eligible businesses have access to tax reliefs including Business Rates, Stamp Duty, Employer National Insurance Contributions and Building Allowance and Enhanced Capital Allowances.

Council areas in which tax sites are located will retain 100% of business rates growth above an agreed baseline for 25 years, allowing Freeports to invest in regeneration and other priorities.

Each Freeport has been granted up to £25m in seed capital funding, primarily to be used to address infrastructure gaps in tax and/or custom sites that are holding back investment. 

Businesses operating within Freeport customs sites will have access to simplified customs arrangements. 

There are eight Freeports created across England. The Panel were advised that Freeports have outer boundaries which reflect the wider economic geography of the area and clarity was provided that   the only places where there is legislation change, and therefore the Freeport’s only regulatory role, is in relation specifically to tax sites. The expectation is that the reinvestment of business rates, and subsequently the benefits, will be in the wider economic area.

The Panel heard that four of the parcels of land make up the Southampton Water tax site which falls predominantly within the District. A full business case was put to the Government in 2022 and the vision for Southampton Water included port centric manufacturing, green energy, logistics and automotive industries with ready access to national and global markets.

It was explained that investment in the New Forest tax sites would increase port capacity at Southampton by up to 40%. This means the unlocking of additional capacity for three key port offers - the cruise terminal, the container port and the automotive sector. 

The Freeport Full Business Case forecasts that the Solent Freeport will see the creation of up to 16,000 jobs, 7000 of which are expected to be in the New Forest. The retained business rates could reach £511m, with 57% (£290m) of this figure being realised from the New Forest tax sites. Of 430 hectares of developable land within the Solent Freeport, 303 hectares is within the New Forest. The tax site benefits that were originally set until 2027 have been extended to  ...  view the full minutes text for item 22.

An opportunity for the Portfolio Holders to provide an update to the Panel on developments within their portfolio.

The Panel received updates from Portfolio Holders on developments within their portfolios. 

Cllr Cleary (Leader)

The Council had approved funding for the Future New Forest Transformation Programme. The in-house model would be supported by the newly established Transformation team.

The new Corporate Plan had been approved by Council and the Key Performance Indicators (KPIs) to monitor the success of the new plan would be finalised shortly.

NFDC had been invited to discussions on Government’s expression of a devolution deal. The Leader assured the Panel that the Council would represent the unique interests of the District throughout these conversations. Following a question from a Panel member, the Chief Executive and the Leader reassured the Panel that the information available at present suggests that power would not be stripped from NFDC and that the focus appeared to be on growth related areas and that there could be the joining together of more regional functions.

Cllr J Heron (Corporate and Finance)

The Portfolio Holder for Corporate and Finance reported that there was a diversity of challenges facing the District and that these were all occurring at a fast pace. 

However, as had been heard during the meeting, the CAB delivered a great service that would be imperative to adapt to the fast-moving matters in the District. The Portfolio Holder believed that a five-year settlement of funding to the CAB would commit the Council for too long a period whilst not allowing pragmatism in the fast-paced change of the District. This would, however, be reviewed by the Portfolio Holder in conversation with Cabinet colleagues.

On procurement, the Portfolio Holder explained that the Council did not want to delay any contracts with bureaucracy but would always manage money sensibly in line with all of the financial regulations.

The Portfolio Holder was pleased that the Transformation Programme was progressing and had adapted where necessary.

On Council Tax, it was explained that the Revenues and Benefits team had worked extremely hard to hit the targets, year on year, on collection rates whilst supporting the most vulnerable residents across the District.

Following a question on the funding settlement from government, the Panel were informed that there had not been a settlement at this point.

To agree the Panel’s future work programme.

RESOLVED:

That the Work Programme be approved.

To agree the following dates for meetings in 2025/26:

(Thursdays at 10.00am)

2025

26 June

18 September

20 November

2026

22 January

19 March

RESOLVED:

That the dates of future meetings be agreed.