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CABINET

Date: Monday 10 November 2014

Time: 7.00 pm

Venue: Room 8, Lambeth Town Hall, Brixton Hill, SW2 1RW

Copies of agendas, reports, minutes and other attachments for the Council’s meetings are available on the Lambeth website. www.lambeth.gov.uk/moderngov

Members of the Committee Leader of the Council, Councillor Lib PeckDeputy Leader (Policy), Councillor Imogen WalkerDeputy Leader (Finance & Investment), Councillor Paul McGloneCabinet Member for Children & Adult Services, Councillor Jackie MeldrumCabinet Member for Environment & Sustainability, Councillor Jennifer BrathwaiteCabinet Member for Early Years, Youth & Families, Councillor Rachel HeywoodCabinet Member for Health & Wellbeing, Councillor Jim DicksonCabinet Member for Housing, Councillor Matthew BennettCabinet Member for Jobs & Growth, Councillor Jack HopkinsCabinet Member for Neighbourhoods, Councillor Jane Edbrooke

Further InformationIf you require any further information or have any queries please contact:Katy Shaw, Telephone: 020 7926 2225; Email: kshaw3@lambeth.gov.uk

Members of the public are welcome to attend this meeting and the Town Hall is fully accessible. If you have any specific needs please contact Facilities Management (020 7926 1010) in advance.

Queries on reports:Please contact report authors prior to the meeting if you have questions on the reports or wish to inspect the background documents used. The contact details of the report author is shown on the front page of each report.

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Persons making recordings are requested not to put undue restrictions on the material produced so that it can be reused and edited by all local people and organisations on a non-commercial basis.

Representation:

Ward Councillors may be contacted directly to represent your views to the Council: (details via the website www.lambeth.gov.uk)

Speaking rights at Cabinet meetings Cabinet normally has a large amount of business to consider at each meeting. Accordingly, the order of the agenda and time allowed for each item is decided by the Leader of

the Council beforehand. Cabinet expects there to have been prior consultation with the public and other interested parties

on proposals and a summary of the results to be included in the report. Therefore, oral contributions from members of the public at the meeting should not normally be necessary.

The time available may allow contribution(s) to be heard on reports on the agenda but this is entirely at the discretion of the Leader of the Council. Anyone wishing to speak must advise the Secretary to Cabinet before the day of the meeting, advising what aspect not covered in the report they wish to cover.

Any such contributions are required to be brief; a maximum of three minutes is likely to be available.

Speakers should ideally be on behalf of a number of people or a specific group. Speakers will be advised at the meeting whether and when they will be heard. Councillors may speak at the discretion of the Chair on agenda items, and are entitled to speak on

matters that specifically concern their ward.

Public Involvement at Council, Committee meetings - public notice questions, petitions, deputations and speaking rights (Standing Order 10):

Please contact Democratic Services for further information – 020 7926 2170 or the number on the front page.

AGENDA

Page Nos.

1. Declarations of Pecuniary Interest

Under Cabinet Rule 1.5.2, where any Cabinet Member has a Disclosable Pecuniary Interest (as defined in the Members’ Code of Conduct (para. 4)) in any matter to be considered at a meeting of the Council, a committee, sub-committee or joint committee, they must withdraw from the meeting room during the whole of the consideration of that matter and must not participate in any vote on that matter unless a dispensation has been obtained from the Monitoring Officer.

2. Minutes of Previous Meeting 1 - 10

To agree the minutes of the meeting held on 14 July 2014.

3. Lambeth Housing Management Services 11 - 18

(Report 84/14-15)Key decision, all wards

Report Authorised by: Strategic Director: Helen Charlesworth-May

Portfolio: Cabinet Member for Housing: Councillor Matthew Bennett

Contact for enquiries:Lynette Peters, Lead Commissioner, Housing, 020 7926 3430lpeters2@lambeth.gov.uk

4. Future Brixton: Somerleyton Road – Compulsory Purchase Order 19 - 52

(Report 85/14-15)Key decision – Coldharbour Ward

Report Authorised by: Strategic Director Delivery: Sue Foster

Portfolio: Cabinet Member Jobs and Growth: Jack Hopkins

Contact for enquiries:Neil Vokes, Programme Director, Strategic Capital Programmes (Business, Growth and Regeneration) nvokes@lambeth.gov.uk, 020 7926 3068

5. Lambeth Local Plan - Proposed Modifications 53 - 60

(Report 86/14-15)Key decision – all wards

Report Authorised by: Strategic Director Delivery: Sue Foster

Portfolio: Cabinet Member for Business and Growth: Councillor Jack Hopkins

Contact for enquiries:Alan Vinall, Delivery Lead Planning Strategy and Policy, Business Growth and Regeneration Delivery Cluster, 020 7926 1212, avinall@lambeth.gov.uk

6. Community Infrastructure Levy Approval of Infrastructure Payment and Discretionary Relief Statements

61 - 72

(Report 87/14-15)Key decision – all wards

Report Authorised by: Strategic Director Delivery: Sue Foster

Portfolio: Councillor Jack Hopkins Cabinet Member for Jobs & Growth

Contact for enquiries: Clive Fraser, Lead Regeneration, Strategy and Policy, Neighbourhood and Investments, 020 7926 1178, CFraser@lambeth.gov.uk

7. Lambeth Child Employment Bylaws 73 - 78

(Report No 88/14-15)Key decision – all wards

Report Authorised by: Strategic Director for Delivery – Sue Foster

Portfolio: Cabinet Member for Children & Adult Services: Councillor Jackie Meldrum

Contact for enquiries:Keisha Rose (Child Employment Officer), 020 7926 9827, krose@lambeth.gov.uk

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Ca bCABINET

Monday 14 July 2014 at 7.00 pm

MINUTES

PRESENT:

Cabinet Members: Portfolio:

Councillor Matthew Bennett Cabinet Member for HousingCouncillor Jennifer Brathwaite

Cabinet Member for Environment & Sustainability

Councillor Jim Dickson Cabinet Member for Health and WellbeingCouncillor Jane Edbrooke Cabinet Member for NeighbourhoodsCouncillor Rachel Heywood

Cabinet Member for Early Years, Youth and Families

Councillor Jack Hopkins Cabinet Member for Jobs & GrowthCouncillor Paul McGlone Deputy Leader (Finance and Investment)Councillor Jackie Meldrum Cabinet Member for Children & Adult ServicesCouncillor Lib Peck Leader of the CouncilCouncillor Imogen Walker Deputy Leader (Policy)

Apologies for absence

Also present: Councillor Marcia Cameron and Councillor Jane Pickard

Action required by

1. DECLARATIONS OF PECUNIARY INTEREST

There were no declarations of pecuniary interest.

2. MINUTES OF PREVIOUS MEETING

RESOLVED: That the minutes of the previous meeting held on 28 April 2014 be approved and signed by the Chair as a correct record of the proceedings.

Page 1 Agenda Item 2

3. DELIVERY OF LEASEHOLD SERVICES

(Report 20/14-15 and appendices) (Key decision – call-in deadline Friday 25 July 2014)

The Cabinet Member for Housing introduced the report which responded to Leaseholders’ concerns about the way the Lambeth Housing Standard (LHS) had been delivered and the charges made to leaseholders. It was acknowledged that neither Lambeth Living nor the Council had been quick enough to respond to these concerns. The 38 point Leasehold Action Plan (LAP) responded to the findings and recommendations of the Joint Task and Finish Group, and would be used to hold Lambeth Living to account.

The LAP would be updated on a rolling basis as it was a live document based on the representations which had been received. The report of the Lambeth Leaseholder Council Working Group (LLCWG) would be included on the Action Plan and a response given by Lambeth Living.

The report was the start of a process. The Council would work with the Leaseholders Council to scope an independent audit to be funded by the Council. The Council would ensure that leaseholders were only charged for what was fair and appropriate.

The Cabinet Member for Housing thanked the leaseholders and officers who had contributed to the report. Cabinet received the following representations:

Melissa Madjitey, Vice Chair of Leaseholders Council and Member of the Task and Finish Group, was pleased that the Council established the Task and Finish Group and whilst acknowledging the significant challenge of the LHS said there were concerns about its delivery. She was pleased that the Council had signed new contracts which would result in savings, but was concerned that contracts for the Mechanical and Electrical (M&E) works had not been retendered as they should be market tested. The use of the independent expert to oversee the auditing was welcomed and the Council needed to build up trust. Delivery of the LHS remained a key concern; for example the inability to secure pain and gain savings in an environment where costs were falling. Lambeth Living had to be a robust client and review invoices. There was an intention to review long term supply chain management.

Malcolm Russell, LLCWG said that the Joint Task and Finish Group was a good response to leaseholder concerns and a good basis for further work. It had been built upon by the LLCWG which had received wide support from leaseholders. The Independent Expert had said that the Working Group report would address the significant problems which still existed, such as pain and gain clauses and the

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use of Qualifying Long Term Agreements. Items from the Working Group report should be included in the Action Plan. The Leasehold review was a work in progress, the areas of overpayment needed to be addressed, for example an independent survey on one estate had identified 3.5 million on savings.

In response to the points raised by the speakers and from a member, the Lead Commissioner and the Director of Property Services made the following points:

The M&E contracts, which had been let in 2010, were seven year contracts with the option to extend for a further three years. Work was being undertaken to ensure that the contracts did give value for money (VfM); partly through the use of mini tenders.

There was VfM across the capital works on the new LHS contracts which now offered savings. All contracts were subject to value engineering.

On-site quality checkers would ensure that contracts were delivered properly.

The independent expert had supported leaseholders in raising some questions. The Council now needed to gain leaseholders’ trust in quality monitoring. The independent expert would give leaseholders technical guidance and assist them report to the Leaseholder and Tenants Councils.

The repayment options were set out in the report. The Council’s interest rate would be applied. If a leaseholder applied for deferred payments, the home ownership would review the case based on the level of payments; the work undertaken and the ability to pay in order to create a bespoke package. There was no limit on the number of times that payments could be deferred.

RESOLVED:

1) To note the key issues and recommendations arising from the Leasehold Review undertaken by the Joint Task and Finish Group and subsequent consultation feedback.

2) To agree the Leasehold Action Plan.

4. LONDON COUNCILS: LONDON LGPS COLLECTIVE INVESTMENT VEHICLE

(Report 21/14-15 and appendix) (Key decision – call-in deadline Friday 25 July 2014)

The Deputy Leader, Finance and Investment, introduced the report and said that the collective investment vehicle would enable collaboration between boroughs on the management and investment of pension funds.

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He noted that the report should have been considered by the Pension Fund Investment Panel (PFIP) prior to the meeting of Cabinet and Corporate Committee; however the meeting of the PFIP would now take place after Cabinet. The following statement was read out from Councillor Garden, the Chair of PFIP and Corporate Committee.

“I met with the Head of Financial Strategy on 2nd July and received a thorough debrief as to the content of the report and the benefits to the Pension Fund of Lambeth participating in the Collective Investment Vehicle (CIV). It is unfortunate that the Pension Fund Investment Panel was unable to meet prior to Cabinet, but I would like it put on record that I am fully supportive of the recommendations contained in the report. Furthermore, I and the vice-chair, Councillor Sabharwal, attended a briefing session on the 9th July at London Councils where an update on progress to date, some detail about current thinking around structures and governance, and an overview of next steps and the proposed timeline to ‘launch’ were provided. As such we feel that we have sufficient information to endorse Lambeth's participation in the CIV.”

RESOLVED:

(1) To agree participation in the establishment of the London Collective Investment Vehicle (CIV)

(2) To agree to participate in the establishment of a private company limited by shares to be incorporated to be the Authorised Contractual Scheme Operator (the ‘ACS Operator’) of the CIV, the ACS Operator to be structured and governed as outlined in this report.

(3) To agree to become a shareholder in the ACS Operator, and to contribute £1 to the ACS Operator as initial capital;

(4) To appoint the Chair of the Pension Fund Investment Panel (or its successor body) to exercise the Council’s rights as shareholder of the ACS Operator;

(5) To agree to join the London Boroughs “Pensions CIV Joint Committee”, to be formed under section 102 of the Local Government Act 1972 and to delegate to such Joint Committee those functions necessary for the proper functioning of the ACS Operator, including the effective oversight of the ACS Operator and the appointment of Directors.

(6) To note the Council’s submission in response to the CLG’s consultation paper ‘Local Government Pension Scheme: Opportunities for Collaboration, Cost Savings and Efficiencies’.

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5. FINANCIAL PLANNING REPORT: ALLOCATING RESOURCES TO OUTCOMES

(Report 22/14-15 and appendices), (Key decision – call-in deadline Friday 25 July 2014)

The Deputy Leader, Finance and Investment, introduced the report and noted that the Council that the council had a three year funding deficit of £96 million for the period 2014/15-2016/17. The Council therefore needed to commission well and would prioritise the services which the residents cared most about.

The following Cabinet Members made the following points:

The Cabinet Member for Health and Wellbeing welcomed the report as a summary which set out the responsibilities and requirements of the Council to provide services which in the areas such as health and wellbeing there was a growing and changing demand at a time when resources were reducing. Services needed to be procured differently and the Council needed to use public health funding in order to move to a prevention agenda.

The Cabinet Member for Early Years, Youth & Families said that the area of significant overspend children’s social care had been managed within the budget. The Council could not turn away from the people who needed help and was committed to supporting vulnerable people. The council had recently been awarded £38 million for the Lambeth Early Action Partnership as set out on page 119 of the agenda.

The Leader of the Council said that the LEAP funding was excellent news and was a good example of the Council’s partnership work.

The Cabinet Member for Children & Adult Services said that the Council needed to transform its services which would be a massive change for it and its partnership organisations.

In response to questions raised by Members the Strategic Director of Enabling made the following points:

The report gave a foundation for the work of the outcomes panel. It set out the overall resources that the Council would invest in the three outcomes.

The Council would continue to monitor the budgets as it had done over the past three years when cuts of £79 million had been made. Improvements were being made to financial monitoring information.

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RESOLVED:

1) To agree the approach to Resource Allocation being developed to support co-operative commissioning and to direct Outcome Panels to develop commissioning plans and capital investment proposals to deliver outcomes within the resource envelopes set out in Section 2.

2) To re-affirm the Council’s commitment to delivering the existing revenue savings plans for 2014/15 (£25.4m savings) and 2015/16 – 2016/17 (£37.6m savings) as set out in paragraphs 2.5 to 2.13.

3) To note the 2013/14 General Fund outturn of £332.45m against a budget of £332.66m.

4) To note the balanced outturn for the 2013/14 HRA.

5) To note the 2013/14 Capital Investment Programme outturn of £183.6m against a budget of £186.0m and note the overview of Capital Investment of £543m over the four years to 2013/14 in Appendix 6.

6) To note the key revenue risks for 2014/15 as set out in paragraph 4.27 onwards.

7) To recommend approval of the revenue virements set out in paragraphs 4.36 and 4.37.

8) To agree the proposed three year Capital Programme 2014-17 of £439.4m as described in paragraphs 5.16 to 5.18 and summarised in Appendix 4 with effect from 14th July 2014.

9) To note the successful Big Lottery Bid which will fund the Lambeth Early Action Partnership (LEAP), as detailed in paragraph 2.8.

6. COMMUNITY INSURANCE TRADING COMPANY

(Report 23/14-15 and appendices), Non-key decision

The Deputy Leader, Finance and Investment, introduced the report and said the proposal was a good example of an enabling council delivering a service to the community. In the future it was possible that the model could be extended to provide other professional services.

The following Cabinet Members made the following points:

The Leader of the Council congratulated the team who had developed the proposal.

The Cabinet Member for Neighbourhoods said that the proposal was a good example of enabling communities.

REOLVED:

1) To note the consultation and engagement activity which had been undertaken to date on providing insurance cover to community

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organisations.

2) To instruct officers to proceed to establish the community insurance trading company with funding of up to £121, 042 from the Cooperative investment Fund.

7. ADOPTION OF LAMBETH COMMUNITY INFRASTRUCTURE LEVY (CIL) CHARGING SCHEDULE

(Report 24/14-15 and appendices), (Key decision – call in deadline – 25 July 2014)

The Cabinet Member for Jobs & Growth introduced the report and said that CIL provided a new income stream resulting from the growth in building of residential accommodation and offices in the borough. There had been a significant amount of public consultation on the proposal and 25% of the receipts would be invested in local projects. A built-in review mechanism would enable reassessment of the level of CIL if land values changed.

RESOLVED:

(1) To note the outcome of the examination in public and the recommendation by the independent examiner, as set out in the Lambeth CIL Charging Schedule (Appendix 1 of the report).

(2) To recommend to the full Council that it resolves to approve the Lambeth CIL Charging Schedule.

(3) To approve the following CIL-related documents for the operation of CIL in Lambeth:

Lambeth CIL Regulation 123 List (Appendix 2)

CIL Instalments Policy (Appendix 3)

Statement of Availability of Discretionary Relief for Exceptional Circumstances(Appendix 4)

Policy Statement concerning Discretionary Charitable Relief for Investment Activities (Appendix 5).

(4) To note that the Cabinet will receive a further report in September 2014 recommending adoption of a revised Section 106 planning obligations SPD.

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8. CO-OPERATIVE LOCAL INVESTMENT PLANS (CLIPS) AND NEIGHBOURHOOD COMMUNITY INFRASTRUCTURE LEVY (CIL): BOUNDARIES AND DECISION-MAKING

(Report 25/14-15 and appendices), (Key decision – call-in deadline Friday 25 July 2014)

The Cabinet Member for Jobs & Growth introduced the report and thanked Michael Ball of the Waterloo Community Development Group and officers who had helped to develop the proposals. The report was the beginning of an evolutionary process.

The following members of the Cabinet spoke in favour of the proposals:

The Leader of the Council welcome the approach of setting up a trial CLIP in Stockwell and commented that it was important for residents in an area where there was development to see a community benefit. The 25% investment in local projects would enable the council to build capacity and resilience in its communities.

The Deputy Leader, Policy welcomed the programme starting in Stockwell. She praised the partnership approach and said she looked forward to other areas being developed.

The Cabinet Member for Health and Wellbeing said that he welcomed the CLIPS and asked for sensitivity in working with some residents who were on the peripheries of large neighbourhoods.

The Cabinet Member for Children & Adult Services said that she supported community involvement in decision making and was pleased that the approach was based on the Neighbourhood Engagement Panels (NEP).

RESOLVED:

(1) To the approve the decision-making process:

a. Identification of proposals and priorities for CLIPs should be led by the community within agreed principles, standards and parameters.

b. Ward councillors should provide local leadership to develop CLIPS.

c. The Cabinet Member for Jobs and Growth will agree the operational framework developed for CLIPs.

d. The Council, as the accountable body, will be responsible for establishing and managing CLIPs by developing an operational framework setting out principles, standards and

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parameters using co-operative principles.

(2) To approve 7 boundaries for the development of Co-operative Local Investment Plans (CLIPs).

(3) To approve the timetable and next steps for developing and agreeing the first CLIP, to cover the Stockwell CLIP area, by the end of the financial year, also noting the budgetary implications.

(4) To note that the Strategic Director for Delivery, in consultation with the Cabinet Member for Jobs and Growth, has delegated authority to co-produce the process for developing, establishing and managing the operational process of CLIPs.

9. ENABLING FUTURE INVESTMENT IN BRIXTON CENTRAL

(Report 26/14-15) (Key decision – call-in deadline Friday 25 July 2014)

RESOLVED:

(1) That the Part II report is classified as information exempt from publication for the reason set out in the report

(2) That the discussion on the report be held in the public domain without disclosing any exempt information.

The Deputy Leader, Finance and Investment, introduced the report which recommended that the Council buy the headlease of International House so that it would own the entire land outright which would provide land in central Brixton for future redevelopment. It would also mean that the Council was released from the repairing lease and would save the Council £754,000 per year in rent.

The Cabinet Member for Early Years, Youth & Families welcomed the proposal which was indicative of the way in which the Council was working in a different way. It made good financial sense and would enable the Council to work closely with the community.

RESOLVED:

(1) To agree to acquire the headlease for International House, within the agreed funding envelope set out in the Part II to this report in order to enable future investment linked to the Brixton Central masterplan,

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(2) To delegate the conclusion of the negotiations, including the timing of the acquisition and the satisfactory mitigation of the outstanding issues, (as set out in Part II), to the Strategic Director for Enabling, in consultation with the relevant Cabinet member(s).

The meeting ended at 8.10 pmCHAIR

CABINETMonday 8 September 2014

Date of Despatch: Friday 18 July 2014Call-in Date: Friday 25 July 2014Contact for Enquiries: Gary O'KeyTel: 020 7926 2183Fax: (020) 7926 2361E-mail: gokey@lambeth.gov.ukWeb: www.lambeth.gov.uk

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`

Cabinet:

10th November 2014

Lambeth Housing Management Services

Wards: All

Report Authorised by: Strategic Director: Helen Charlesworth - May

Portfolio: Cabinet Member for Housing: Councillor Matthew Bennett

Contact for enquiries:lpeters2@lambeth.gov.ukLynette Peters, Lead Commissioner, Housing, 020 7926 3430

Report summary

Lambeth Living was established in 2008 as an Arm’s Length Management Organisation (ALMO) to enable the Council to bid for the Government’s decent homes grant to invest in the housing stock. There was also a need to improve the poor standard of housing management services. The service provided to tenants and leaseholders has improved significantly since the ALMO was set up and the Council has since embarked on an historic £490m investment programme to bring thousands of homes up to the Lambeth Housing Standard (LHS).

The council’s contract with Lambeth Living is coming to an end in June 2015 and its chief executive is leaving in January 2015. The council has concluded that the best way to provide a solid basis for further improvements and to embed partnership working throughout the council is to reintegrate housing with other council service at the end of the management agreement.

Our ambition of providing decent homes goes far beyond roofs over people’s heads. The quality of housing has a huge impact on health, education, employment and whole communities. That is why we are committed to huge capital investment, improving existing housing stock and building 1000 new homes at council rents over the next five years.

The advantages of reintegrating housing services into the council will allow us to put into practice a more ‘joined-up’ approach to services, based on the recognised link between housing, health and life chances. This option would also provide:

• an opportunity for tenants and residents to influence the shape of a new housing service

• better alignment of housing management with other council services

• better value for money for residents

• savings to reinvest in services

• better support to housing management services to improve performance

Page 11 Agenda Item 3

The council is very aware that tenant and leaseholder satisfaction with the housing service is lower than it could be and that resident engagement needs further improvement. Therefore the Council is committed to coproducing a new model for delivery of housing services with tenants and leaseholders and will look to fully involve residents in the decision-making process. We are clear that the experience and knowledge which tenants and leaseholders bring will translate to investment in an improved housing service that meets their needs and ambitions.

Finance summary

In taking the decision to reintegrate the ALMO back into the council, there are several areas of opportunity to reduce duplication and develop services to support the council’s outcomes more directly. This will depend upon the shape of the service when it is fully integrated within the council. A full financial analysis will be developed as part of the options that the project board is expected to develop.

Recommendations

(1) To note the content of this report and subject to consultation with tenants to approve the recommendation to reintegrate the housing service at the end of the management agreement with Lambeth Living.

(2) To authorise officers to launch a coproduction exercise with residents and other stakeholders, on the shape of the new housing service under the auspices of a project board, with full stakeholder representation, chaired by the Cabinet Member for Housing and that Cabinet consider the results of consultation before the expiry of the management agreement.

(3) To authorise officers, if necessary, to notify Lambeth Living of the need for any short-term extension to the Management Agreement necessary to ensure a smooth and stable transfer to the Council.

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1. Context

1.1 The contractual relationship between the Council and the ALMO (Lambeth Living) is governed by a Management Agreement (MA). The MA in effect is the ALMO’s mandate to deliver housing services across the housing stock on behalf of Lambeth Council. The MA defines the roles and responsibilities of the ALMO and other parties to the contractual arrangement. Clause 62.1 of the current MA states that “the MA shall expire on the seventh anniversary unless extended by the Council pursuant to the following provisions of this clause”.

1.2 The current MA expires on 25th June 2015. Under the terms of the MA “the Council is entitled (but without obligation) to extend the term for one or more further periods of up to 3 years”.

1.3 The expiry of the MA as well as the recent announcement of departure of Lambeth Livings’ Chief Executive in January 2015, provides an opportunity to review the existing arrangements. The Council recognises that its housing stock and housing services play a vital role for many of our residents and are key to improving the health, employment and overall quality of life for individuals, families and the wider community.

2. Proposal and Reasons

2.1 The Council is facing one of the biggest financial challenges of its existence but is still ambitious for the borough and its residents. It is committed to spending council tax payers’ money with care but instead of focusing on what it won’t be doing it is thinking about how best to achieve its aims.

2.2 We spend the largest proportion of our budget on the most vulnerable people in the borough, and will continue to do so, but instead of helping at a time of crisis we want to help avoid a crisis, helping people to live healthy, sustainable and good lives.

2.3 The Council wants to do this because it believes this is better for people and more cost effective for council tax payers. To achieve this, we know that we need to focus on the things that prevent illness and contribute to a better environment. Good housing is central to this: supporting good health, education and environmental aims.

2.4 The Council has considered the options and believes there are strategic, financial and service advantages to reintegrating housing management back into council services. This is similar to the conclusion reached in a number of other London local authorities including Ealing, Hackney, Havering, Islington, Newham, and Redbridge who have or are ending their ALMO arrangements. There are a number of reasons for proposing reintegration at this time including the following:

Benefits of housing services working in partnership with social care, regeneration and health

Housing management services can be aligned more closely with other council services to support the delivery of our key outcomes including around health, jobs and quality of life.

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Culture

An opportunity to build a new housing service around our residents; with cooperative values and a culture of improving communication and transparency.

Financial value

Against the backdrop of significant cuts to local authority funding the council must make every penny work for local people. Reintegration would generate savings to reinvest in services for residents that will be available if there is no ALMO.

Pace of improvement

Direct control of housing management will ensure more direct Council accountability for tenants and leaseholders. The Council can now provide direct support to the housing management services to accelerate the speed of improvement where needed.

2.5 Taken together these factors mean we now have the opportunity to provide improved services to our residents, particularly our tenants and leaseholders, better value for money and more joined up services through bringing services back in house. For the Council and its partners there will be less duplication of services and clearer accountability for service users.

2.5.1 Next Steps: The Council will establish a project board to play a key role in shaping the new housing service. This board will be, chaired by the Cabinet Member for Housing, with participation from councillors, staff, union representatives, tenants and leaseholders. This will include ensuring a full and comprehensive programme of consultation and coproduction with tenants and leaseholders on the future shape of their service, ensuring compliance with s105 Part IV of the Housing Act (1985).

2.6 Throughout this process the Council will support the Lambeth Living to maintain services. The delivery of the investment programme and day to day services must be kept on track. We will need to ensure that staff and residents are kept up to date with and can influence the development of a new vision for the delivery of housing services and the progress of the transition. We anticipate that the process of reintegration should be complete by the expiry of the management agreement in June 2015. If necessary officers will notify Lambeth Living of any need for a short-term extension by the contractual deadline of 26 December 2014.

2.7 Involving residents & stakeholders: The Council needs to know what residents’ priorities and expectations are from housing management services, so future arrangements reflect these. Lambeth Council also has a statutory requirement to consult under section 105 of Part IV the Housing Act 1985. These results will be reported back to Cabinet.

3. Finance

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3.1 In taking the decision to reintegrate the ALMO back into the council, there are several areas of opportunity to reduce duplication and develop services to support the council’s outcomes more directly. This will depend upon the shape of the service when it is fully integrated within the council. A full financial analysis will be developed as part of the options that the project board is expected to develop.

4. Legal and Democracy

4.1 Section 105 of the Housing Act 1985 (‘the Act’) requires the Council to maintain such arrangements as it considers appropriate to enable those of its secure tenants who are likely to be substantially affected by a matter of housing management to which that section applies:

(a) to be informed of the authority’s proposals in respect of the matter, and

(b) to make their views known to the authority within a specified period;

and the Council must, before making any decision on the matter, consider any representations made to it in accordance with those arrangements.

4.2 The Council’s Tenant’s compact sets out its arrangements for consulting with its secure tenants pursuant to section 105 of the Act.

4.3 In non-statutory guidance issued in December 2011, CLG stated that the Government did not consider it necessary to impose a mandatory duty on local authorities to hold a ballot when considering taking housing management functions back from their ALMOs, though the guidance does go on to indicate that the consultation exercise for councils considering the future of their ALMOs should be as comprehensive as that undertaken when transferring those functions to the ALMO originally. The guidance suggests this could either be through a ballot or a full survey or other locally appropriate method. The guidance also states that tenants should have the opportunity to shape the options, be consulted from the outset and the consultation should clearly set out the pros and cons of each option, demonstrating the potential impact on residents and explain the reason for the Council recommending its final option(s).

4.4 The Guidance indicates council’s should conduct a full cost benefit assessment exercise and risk analysis for the Council’s wider housing services. Risk should include loss of key staff, and how that may affect implementation of self-financing and major capital projects including decent homes so they fully understand the financial rationale of any decision they make.

4.5 As the proposal does not involve the delegation of the Council’s housing management function, no approval from the Secretary of State is required to bring the housing management function back in-house. However, the non-statutory guidance suggests that any council considering taking an options review of its housing management should contact CLG as soon as possible in the process.

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4.6 The purpose of the Transfer of Undertakings (Protection of Employment) Regulations 2006 ("TUPE"), is to preserve continuity of employment and to safeguard employment rights of all employees whose employment transfers to a new employer as a result of a relevant transfer. Dismissal of staff that are protected by TUPE will be automatically unfair unless there are valid economic, technical or organisational reasons. Any changes to terms and conditions of employment which are related to the transfer will be invalid unless the changes are made for economic, technical or organisational reasons entailing changes in the workforce.

4.7 In brief TUPE will apply where there is a transfer of a business involving the transfer of an "economic entity" that retains its identity upon transfer, or when there is a service provision change under which services are either contracted out or brought back in-house.

4.8 There is an obligation under TUPE to inform and consult with trade unions in good time before a transfer takes place.

4.9 In reaching decisions on these matters, the Cabinet members are bound by the general principles of administrative law. Lawful discretions must not be abused or fettered and all relevant considerations must be taken into account. No irrelevant considerations may be taken into account, and any decision made must not be such that no reasonable authority, properly directing itself, could have reached.

4.10 The proposed decision was entered on the Forward Plan on 17 October, therefore the necessary 28 days has not been given.

As the report needs to be considered by the Cabinet on 10 November 2014 the general exception procedure will be followed. The reasons why the report was not included in the forward plan and that the decision cannot be delayed will be included in the necessary public notice to be published on the council’s website (and sent to the Chair and Vice-Chair of Overview & Scrutiny Committee and relevant officers) alongside this report. The report and notice will be published on the website for five clear days before the decision is approved by the Cabinet. A further period of five clear days - the call-in period – will then elapse before the decision is enacted. If the decision is called-in during this period, it cannot be enacted until the call-in has been considered and resolved.

5. Consultation and co-production

5.1 As part of this the proposal to integrate the housing service the Council will need to consult with residents, staff and recognised Trade Unions.

6. Risk management

6.1 None at this time.

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7. Equalities impact assessment

7.1 If consultation favours reintegration then a Equality Impact Assessment will be required, this will need to be looked at in conjunction with the overall HRA Business Plan.

7.2 There are no specific proposals as part of this particular decision which impact on front line services directly at this stage. Any potential staffing implications will form part of later phases and will have to be planned for as part of any future process.

8. Community safety

8.1 No implications at this time

9. Organisational implications

There are likely to implications for LL staff, but this will not be known until consultation has been carried out with residents, Trade Unions and other stakeholders. An Equality Impact Assessment will be undertaken as part of any overall planning process once consultation has been completed.

9.1 Environmental

9.2 None

9.3 Staffing and accommodation

None.

9.4 Procurement

None

9.5 Health

None.

10. Timetable for implementation

10.1 25th June 2015.

Audit trailConsultation

Name/Position Department or Organisation

Date Sent Date Received

Comments in para:

Helen Charlesworth May, Strategic Director

Commissioning 01/10/14 15/10/14

Rachel Sharpe, Commissioning Director

Commissioning 01/10/14 15/10/14

Page 17

Mandy Green, Associate Director

Commissioning 01/10/14 15/10/14

Lynette Peters, Lead Commissioner

Commissioning 01/10/14 15/10/14

Greg Carson, Legal Services

Integrated Services 01/10/14 01/10/14 4.1 to 4.10

Democratic Services Integrated Services 16/10/14 16.10.14Christina Thompson Finance

Integrated support/finance

16/10/14 16.10.10 3.1

Matthew Bennett, Councillor

Cabinet Member for Housing:

01/10/14 14/10/14

External

For internal reports, list internal meetings where issue has been considered

See Section 10 above

Report historyOriginal discussion with Cabinet Member

13.06.14

Report deadline 08.10.14Date final report sent 16.10.14Report no. 84/14-15Part II Exempt from Disclosure/confidential accompanying report?

No

Key decision report YesDate first appeared on forward plan

17/10/14

Key decision reasons Meets community impact test

Background information Cabinet report 11th June 2007 to establish an ALMO: http://moderngov.lambeth.gov.uk/documents/s3121/3.%20ALMO.pdf

AppendicesNone.

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Cabinet

10 November 2014

Future Brixton : Somerleyton Road project – Compulsory Purchase Order

Report Authorised by: Strategic Director Delivery: Sue Foster

Portfolio: Cabinet Member Jobs and Growth: Jack Hopkins

Contact for enquiries:

Neil Vokes, Programme Director, Strategic Capital Programmes (Business, Growth and Regeneration) nvokes@lambeth.gov.uk, 020 7926 3068

Report summary

The purpose of this report is to recommend that Cabinet authorise the making of the Somerleyton Road Compulsory Purchase Order 2014 to acquire all outstanding property interests in the Somerley Road Project development site . The Order is required, as a contingency to ensure vacant possession can be obtained should the Council fail to reach a negotiated settlement for the purchase of the outstanding property interests. Vacant possession is required to enable the comprehensive redevelopment of the site that will contribute to the physical, social and economic regeneration of the area.

This report contains the relevant documentation required to authorise the making of the Somerleyton Road Compulsory Purchase Order 2014.

The actions outlined in this report will further de-risk the development scheme, provide more certainty over project delivery and ensure that the land assets will produce greater benefits for local people.

Finance summary

The Future Brixton: Somerleyton Road Project report (86/13-14) agreed a capital allocation to support the delivery of the project. This allocation will be repaid to the General Fund in full by the project.

Recommendations

(1) To note the draft Statement of Reasons attached to this report which sets out the justification for making the Somerleyton Road Compulsory Purchase Order 2014.

(2) To note the indicative red-line boundary for the Somerleyton Road Compulsory Purchase Order 2014.

Page 19 Agenda Item 4

(3) To note the inidicative timeline for the Compulsory Purchase Order (CPO) process for the Somerleyton Road Compulsory Purchase Order 2014 set out in section 10 of this report.

(4) To authorise the making of the Somerleyton Road Compulsory Purchaee Order 2014 under section 226(1) (a) of the Town & Country Planning Act 1990 as amended by the Planning & Compulsory Purchase Act 2004 (the “1900 Act”).

(5) To delegate authority to the Head of Legal Services to finalise the Statement of Reasons and the CPO red-line boundary.

(6) To authorise the Deputy Leader (Finance and Investment) in consultation with the Cabinet Member for Jobs and Growth to take all the necessary steps consequent to the making of the Somerleyton Road Compulsory Purchase Order 2014.

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1. Context

1.1 The Somerleyton Road Project development site is a 1.5ha site located in the Coldharbour Ward of the London Borough of Lambeth. Approximately 75% of the site is within the ownership of the Council; most of the Council land is owned as freehold, with the part occupied by Carlton Mansions being held by the Council on a long-lease from Network Rail. A private business owns part of the proposed development site mid-way down Somerleyton Road (16-22 Somerleyton Road). London Underground Ltd (LUL) own a site occupied by a sub-station between the Council owned land and the privately owned land. For operational reasons LUL are unable to release the land; although they are willing to explore means of improving the appearance of the site as part of the comprehensive redevelopment of the west-side of Somerleyton Road.

1.2 In November 2012 the Council commissioned Pollard Thomas Edwards architects (PTEa) to assess the regeneration potential for the west-side of Somerleyton Road and the surrounding area; the commission included four consultation activities. The assessment built upon the previous work and consultation carried out as part of the Future Brixton Masterplan 2009 and the Brixton SPD 2012 as well as the consultations carried our by our partner, Brixton Green.

1.3 The PTEa feasibility study was presented to Cabinet on 8 July 2013 as an appendix to the Future Brixton: Somerleyton Road Project report (86/13-14). The feasibility study was noted and all of the report recommendations were adopted including approval to agree the making of a Compulsory Purchase Order for the development site to ensure delivery of the project as a comprehensive development.

1.4 A further report was presented to Cabinet on 4 November 2013 with the findings of further analysis of delivery strategies for the project. Cabinet agreed to procure a development manager and design team using a Council-run OJEU compliant restricted procedure.

1.5 Cabinet noted the staged approach to the delivery of the development and approved the first stage. Officers were to explore further the potential for a 100% rented scheme, funded by the Council, which would maximise the amount of genuinely affordable housing delivered on the site. A newly established community body would be established to provide the local community with a long term stewardship role and a housing cooperative established to own and manage the residential elements.

1.6 Alongside the residential elements there would be a range of commercial and community spaces which would support the communities living and working along Somerleyton Road. These would include the relocation of Ovalhouse Theatre to Brixton, the provision of affordable workspace and a chef’s training school.

2. Proposal and Reasons

2.1 Compulsory purchase powers are an important tool for local authorities to use as a means of assembling the land needed to help deliver social and economic change. They can contribute towards effective and efficient urban regeneration, the revitalisation of communities and the promotion of business – leading to improvements in quality of life (Office of the Deputy Prime Minister Circular 06/2004).

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2.2 The making of the CPO is primarily related to securing vacant possession of the site to enable the comprehensive redevelopment of the development site. In accordance with CPO best practice, the Council will continue to endeavour to reach a negotiated settlement with all remaining owners of any property interest within the CPO red-line boundary. CPO powers once confirmed, will only be used where a negotiated settlement cannot be reached. The Somerleyton Road Compulsory Purchase Order 2014 will affect those interests within the red-line boundary attached in Appendix 2 of this Part I report.

2.3 The Somerleyton Road Compulsory Purchase Order 2014 is being made pursuant to section 226(1)(a) of the 1990 Town & Country Planning Act which authorises the Council to acquire land compulsorily subject to following the procedures laid down by the Acquisition of Land Act 1981.

Land which is the subject of the Somerleyton Road CPO 2014

2.4 The land to be included in the CPO includes:

All land included in the red line drawing attached to this report

Description of the proposed development for Somerleyton Road

2.5 The regeneration of Somerleyton Road is one of the Council’s key priorities and is a flag ship regeneration scheme for the borough. The Council and its partners are working to create a truly mixed and sustainable development that will support community life along Somerleyton Road. Whilst there are many different views as to how Somerleyton Road should change, there are some shared opinions, which come up time and time again, these include:

people want to see as much affordable housing as possible at Council rent levels; people want local jobs and training opportunities for young people; people don’t want to see the land sold off; and people want a greater say over Somerleyton Road now and in the future.

2.6 The Council and its partners are working to create an inclusive and sustainable neighbourhood that will provide new homes, space for a large theatre, affordable workspace and a significant amount of commercial and community space. The details of the proposed development are being worked up with the Council’s partners and will be included in a planning application to be submitted in 2015.

2.7 The preferred model at this stage is for the development to be 100% rented; maximising the amount of genuinely affordable housing that can be delivered on the site.

2.8 The preferred ownership and management model is for the Council to retain the freehold interest in the land and to grant a long lease of the whole to a Council owned Special Purpose Vehicle (SPV; the SPV is likely to be a limited liability company). It is proposed that the SPV will grant two leases; one to a newly established community body and the second to the Ovalhouse Theatre. The new community body would in turn grant a sub-lease of all the residential parts of the new development to a newly established housing cooperative who would own and manage the residential element. The community body would also grant sub-leases to other commercial and community occupiers in part of the

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new development. The second lease to Ovalhouse Theatre may also include other space that could be sub-let to other occupiers. .

Purpose and justificiation for seeking to compulsorily acquire the legal interests in the Somerleyton Road development area

2.9 Compulsory purchase of the legal interests will help enable the comprehensive redevelopment of Somerleyton Road and enable the Council and its partners to deliver the communities aims and aspirations for the site:

Bring Ovalhouse Theatre to Brixton

Maximise the amount of housing which is affordable for local people

Collaborative working with the local community and securing a long term stewardship role – Cooperative Housing / community body

Build high quality, sustainable buildings and support sustainable communities

Employment, training and community uses shaped by local residents

Improving community safety

Retain the heritage assests (i.e. the mural and the façade of Carlton Mansions)

Deliver the project in a timely fashion

Deliver a financially viable scheme which represents value for money for the Council and which over time repays in full the up-front capital investment

Build capacity to bring forward other development schemes within the Council

Rehousing displaced commercial tenants

2.10 The Council has sought to negotiate a settlement with each legal interest in order that compulsory purchase is avoided. This has included efforts to secure alternative accommodation where possible. In some cases the negotiations may not achieve a suitable outcome and therefore the Council may not be left with any alternative other than to seek the use of compulsory purchase powers to obtain the remaining property interests on Somerleyton Road so that the much needed regeneration can begin in a timely fashion.

Human Rights

2.11 Whilst the compulsory purchase of the property interests may appear to conflict with the human rights of individual land owners, the Council is of the view that there is a compelling case in the public interest and that the comprehensive redevelopment of the west-side of Somerleyton Road to include the provision of new residential accommodation, new commercial and community facilities built to modern standards outweighs the private interests held by said parties.

2.12 Officers believe that the use of compulsory purchase powers to achieve its regeneration aims and objectives for the comprehensive redevelopment of the west-side of

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Somerleyton Road are proportionate to the interference with the rights of individual land owners.

Planning Position

2.13 London Plan

2.14 Lambeths Core Strategy was adopted at Cabinet in 2011.

2.15 Lambeth Council’s Local Plan will be adopted in May 2015.

2.16 The Future Brixton Masterplan was approved by Cabinet in July 2009.

2.17 The Brixton SPD was adopted by Cabinet in March 2012

Resources for land acquisition, delivery and implementation

2.18 Officers are satisfied that the necessary resources are available to achieve the comprehensive redevelopment of the west-side of Somerleyton Road within the proposed timescale.

2.19 The Future Brixton: Somerleyton Road Project report (86/13-14) agreed a capital allocation to support the delivery of the first stage of the project. This funding is for land acquisition and delivery of the first stage of the project which will result in a detailed planning application for the site.

2.20 The Future Brixton: Somerleyton Road – Project Delivery report approved by Cabinet on 4 November 2013 agreed a two stage approach to the development to manage the risk exposure to the Council. Once the detailed planning application has been submitted and the financial model and delivery model has been agreed a further report will be brought to Cabinet seeking agreement to progress the project.

2.21 The Council has commissioned EC Harris to produce a development appraisal based on the PTEa feasibility study. The appraisal demonstrates that the scheme is financially viable and deliverable.

2.22 Further analysis is underway to explore the preferred option of a 100% rented scheme funded by borrowing by the Council. The borrowing would come either from the Council’s own resources, via the Public Works Loans Board or from institutional investors.

3. Finance

3.1 The Future Brixton: Somerleyton Road project report (86/13-14) agreed a capital allocation to support the delivery of the project. This funding was to include both the land acquisition and delivery of the first stage of the project which would result in a detailed planning application for the site. A subsequent report went to Cabinet in Nov 13 which agreed to a re-phasing of the existing capital allocation to allow the procurement of a Development Manager and Design team to be brought forward into phase I and the land acquisition costs to be deferred to phase II. (as the acquisition of 16 – 22 Somerleyton Road is unlikely to take place in 14/15).

3.2 The land acquisition costs will now be included within phase II and form part of the overall borrowing request (in Dec 14) to build out the entire scheme. As the two adjustments detailed above offset each other the overall effect on the project budget is

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expected to be nil. The capital allocation will be repaid to the General Fund in full by the project.

4. Legal and Democracy

4.1 Notification of this key decision was published on the Forward Plan on 29 August 2014 so the statutory 28 days’ notice has been given. The report was published five working days before the decision is due to be taken and will be subject to call in for five days once the decision is published.

4.2 Compulsory purchase powers should be used only where there is no prospect of acquiring land by agreement. The councils statement of reasons needs to reflect what action the Council has taken to acquire the land by private treaty and demonstrate that no agreement has been reached resulting in the Council needing to exercise its Compulsory Purchase powers.

4.3 By virtue of Section 226 (1) (a) of the Town and Country Planning Act 1990 (as amended by Section 99 of the Planning and Compulsory Purchase Act 2004), the Council has the power to acquire compulsorily, subject to confirmation by the First Secretary of State, land in its area if the authority thinks that the acquisition will facilitate the carrying out of development, re-development or improvement on or in relation to the land and it is not certain that it will be able to acquire it by agreement.

4.4 A local authority must not exercise the power unless they think that the development, re-development or improvement is likely to contribute to the achievement of any one or more of the following:-

The promotion or improvement of the economic well-being of their area; The promotion or improvement of the social well-being of their area; The promotion or improvement of the environmental well-being of their area.

4.5 The statement of reasons needs to detail the planning position as well as outlining that the funding for the scheme is in place. In particular if no planning permission is in place this document needs to show that there is no impediment in the Council being able to obtain planning permission.

4.6 Those whose property interests are affected by the CPO have a right to compensation. Compensation will include:

the market value of the property interest compensation for a reduction in value of any retained land reimbursement for the costs of moving from the land various statutory loss payments, and any other losses, including reasonable professional fees in respect of the

negotiation and settlement of compensation

5. Consultation and co-production

5.1 There has been significant consultation of the project and this has included all third party land owners on the site.

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5.2 The potential development of Somerleyton Road is outlined in the Brixton Masterplan 2009 and in the coproduced Brixton SPD 2012.

5.3 Where the Council is looking to acquire sites, the land owners have been met with, offers of potential relocation sites made and financial offers made.

6. Risk management

6.1 Failure to acquire all interests on Somerleyton Road will put at risk the aspirations for a comprehensive redevelopment which will deliver the project aims and objectives.

6.2 Failure to initiate the CPO within a timely fashion will risk delay to the Somerleyton Road project. There is grant funding attached to particular elements of the scheme, such as the extra care homes, the general needs affordable housing and the Ovalhouse Theatre which will be at risk.

6.3 There is a risk that there will be objections leading to a Public Enquiry.

6.4 The development manager is responsible for producing and updating a detailed risk register for the project which is reported on a monthly basis to the Project Steering Group, chaired by the Cabinet Member for Housing and Regeneration.

7. Equalities impact assessment

7.1 A full EQIA assessment has been carried out for the Future Brixton programme and the EQIA has informed the development of this project.

8. Community safety

8.1 Community safety is a key issue for the Somerleyton Road project and is one of the main drivers for change. The Somerleyton Road Passageway has been identified as a crime hot spot and the comprehensive redevelopment will significantly improve this part of the site.

9. Organisational implications

10. Timetable for implementation

10.1 CPO timetable

Milestone Date

Gathering of title information by acquiring authority after CPO in principle resolution passed

November 2014

Negotiating with owners / objectors to buy their interests July 2013 - ongoing

CPO Resolution after scheme funding confirmed January 2015

Preparation of CPO, Order plans, Order schedules, Statement of Reasons, Statutory Notices and Advertisements

January 2015

Making of CPO and submission to SoS by Acquiring May 2015

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Authority. Register as LLC. Service of statutory notices and advertisements

Period of objections to SoS Sept 2015

Pre-inquiry prep - instructing and meeting Counsel, preparing evidence, appointing witnesses, statement of case

Sept to December 2015

Public inquiry February 2016

SoS decision June 2016

Audit trailConsultation

Name/Position Lambeth cluster/division or partner

Date Sent Date Received

Comments in para:

Sue Foster Strategic Director 02.09.14 8.10.14Mike Pocock Delivery Director 08.09.14 8.10.14Finance clearance Business Partnering 02.09.14 9.09.14Legal clearance Enabling: Integrated

Support: Legal Services11.09.14 2.10.14 4.1 to 4.5

Democratic Services clearance

Enabling: Corporate Affairs: Democratic Services

02.09.14 8.10.14

Councillor Jack Hopkins Cabinet Member: Jobs and Growth

02.09.14 8.10.14

Report historyOriginal discussion with Cabinet Member

01.06.14

Report deadline 09.10.14Date final report sent 09.10.14Report no. /14-15 Part II Exempt from Disclosure/confidential accompanying report?

No

Key decision report YesDate first appeared on forward plan

29.08.14

Key decision reasons Expenditure, income or savings in excess of £500,000

Background information Future Brixton Masterplan Cabinet in July 2009. http://moderngov.lambeth.gov.uk/documents/s16732/05a%20Future%20Brixton%20Masterplan.pdf

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Brixton SPD Cabinet March 2012 http://moderngov.lambeth.gov.uk/documents/s40670/Future%20Brixton.pdf

AppendicesDraft Somerleyton Road CPO 2014 red line plan

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Cabinet

10 November 2014

Lambeth Local Plan Proposed Modifications

Wards: All

Report Authorised by: Strategic Director Delivery: Sue Foster

Portfolio: Cabinet Member for Business and Growth: Councillor Jack Hopkins

Contact for enquiries:avinall@lambeth.gov.ukAlan Vinall, Delivery Lead Planning Strategy and Policy, Business Growth and Regeneration Delivery Cluster, 020 7926 1212

Report summary

In November 2013, Cabinet and Council agreed the Lambeth Local Plan Proposed Submission for pre-submission publication and submission to government in March 2014. Submission triggered the start of the formal examination of the Plan by an independent planning inspector. This process included a public hearing in July 2014 and will continue until the Inspector issues her final report, expected in March 2015. A number of modifications to the Plan were proposed during the examination hearing in response to questions from the Inspector. The Inspector has identified approximately half of these as ‘main modifications’ required to address issues of soundness with the Plan.

Under guidance issued by the Planning Inspectorate in December 2013, it is necessary to consult on main modifications for a minimum of six weeks prior to the end of the examination process; and for them to undergo sustainability appraisal. Cabinet is asked to agree the schedule of proposed modifications, including those identified as main modifications, at Appendix 1, and the associated sustainability appraisal of the proposed modifications at Appendix 2, for public consultation during eight weeks between November 2014 and January 2015. Consultation responses will be sent to the Inspector for her to consider prior to issuing her final report. This is expected in March 2015, with adoption of the Local Plan anticipated by May 2015.

Cabinet is also asked to agree the revised Local Development Scheme at Appendix 3.

Finance summary

The preparation of the Local Plan is estimated to cost approximately £125,000 in 2014-15, to be funded by approved 2013/14 LDF carry forward of £193,600.

Page 29 Agenda Item 5

Recommendations

(1) To agree the proposed modifications (including ‘main modifications’) to the Lambeth Local Plan Proposed Submission in Appendix 1 and associated sustainability appraisal in Appendix 2 for public consultation between November 2014 and January 2015.

(2) To agree the revised Lambeth Local Development Scheme November 2014 in Appendix 3.

(3) To note the revised timetable for the adoption of the Lambeth Local Plan in section 7 of the report.

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1. Context

1.1 The Lambeth Local Plan is a statutory policy document that sets out the spatial strategy and policies for the borough in order to increase housing supply in the borough; deliver more affordable housing; support growth in jobs and business; regenerate and encourage investment in the borough’s opportunity areas and town centres; deliver supporting infrastructure (such as public transport, utilities, school places, health and other community facilities, and space for leisure and recreation); achieve the highest quality in design and conservation of the built environment; protect and enhance residential amenity; and support the principles of sustainable development including adaptation to and mitigation of climate change. The process for preparation of the Local Plan is set out in legislation.

1.2 In November 2013, Cabinet and Council agreed the Lambeth Local Plan Proposed Submission for pre-submission publication between December 2013 and February 2014 and submission to government in March 2014.

1.3 Submission in March 2014 triggered the start of the formal examination of the Plan by an independent planning inspector. This process included a public hearing in July 2014 and will continue until the Inspector issues her final report, expected in March 2015.

1.4 Examination is against four ‘tests of soundness’ set out in the National Planning Policy Framework (NPPF). A plan is considered ‘sound’ on the basis that it is:

Positively prepared – the plan should be prepared based on a strategy which seeks to meet objectively assessed development and infrastructure requirements, including unmet requirements from neighbouring authorities where it is reasonable to do so and consistent with achieving sustainable development;

Justified – the plan should be the most appropriate strategy, when considered against the reasonable alternatives, based on proportionate evidence;

Effective – the plan should be deliverable over its period and based on effective joint working on cross-boundary strategic priorities; and

Consistent with national policy – the plan should enable the delivery of sustainable development in accordance with the policies in the NPPF.

1.5 In order to address any issues of soundness identified during examination, the inspector – at the invitation of the council – can make recommendations about ‘main modifications’ to the plan. The Planning Inspectorate’s ‘Examining Local Plans Procedural Practice’ (issued in December 2013) states that main modifications should be subject to public consultation and sustainability appraisal and that the inspector should take account of the results of this consultation and sustainability appraisal before concluding the examination and issuing her final report.

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2. Proposal and Reasons

2.1 The Inspector for the Lambeth Local Plan asked a number of questions relating to the soundness of the Plan both before and during the public hearing in July 2014. As a result, the council proposed a series of modifications to the wording of the Plan, mainly to: provide clarification; sign-post to relevant evidence base documents; simplify information requirements for those submitting planning applications; ensure consistency with the new national planning practice guidance (NPPG) published in March 2014; and to take account of emerging changes to legislation affecting sustainable construction. Modifications were also required to make clear that the GLA’s requirement to allocate additional sites to meet the London Plan waste apportionment for Lambeth will be addressed through a separate waste development plan document. Out of this process, the Inspector has identified approximately half of these as main modifications required to make the Lambeth Local Plan sound. All of these were suggested by the council to resolve issues raised at examination.

2.2 Officers are content that the inspector has not directed any significant changes in policy and the team were able to defend policies on key issues such as affordable housing and employment land. Changes agreed were all negotiated by officers so as not to undermine the overall policy approach.

2.3 All the proposed modifications are listed in a schedule in Appendix 1: the main modifications are shown with a grey shaded background and the other modfications have a white background. They are listed in the order they would appear in the Plan, to make it easier for users to understand how the Plan as a whole would be amended. Cabinet is asked to agree this schedule of proposed modifications for public consultation over eight weeks between November 2014 and January 2015. Only the proposed modifications will be open to comment, not the unmodified sections of the Plan.

2.4 Any responses to the consultation on modifications will be given to the Inspector by the council for her to consider in the final stages of the examination and to inform the recommendations in her final report. A short response to any comments received may also be prepared by officers and sent to the Inspector, subject to the Inspector allowing this.

Sustainability appraisal

2.5 An assessment has been undertaken of each modification, considering them against the sustainability appraisal objectives used for the Lambeth Local Plan Proposed Submission. This assessment is set out in Appendix 2 and will be included as part of the public consultation on the proposed modifications. No modification was judged to be significant in the context of the sustainability performance of the Local Plan as a whole, so no changes are proposed to the original sustainability appraisal scores. There are also considered to be no impacts to sites protected under the Habitats Regulations Act.

Lambeth Local Development Scheme

2.6 The Local Development Scheme is a statutory document that sets out the council’s programme for preparation of planning policy documents. Cabinet approved the most

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recent version in November 2013. This document now needs to be updated to include the preparation of a separate waste development plan document following adoption of the Local Plan. This requirement arose during the examination of the Local Plan in order to address concerns raised by the GLA about the council’s approach to identifying land to meet the London Plan waste apportionment.

2.7 In addition, the timetable for the adoption of the Local Plan has been updated to reflect the additional period of public consultation on proposed modfications. This in turn has implications for the timetable to bring forward the early review of the Local Plan and separate gypsy and traveller development plan document, so this has also been updated.

2.8 Cabinet is asked to agree the revised Local Development Scheme at Appendix 3.

3. Finance

3.1 The cost of preparation of the statutory Local Plan in 2014/15 is estimated at approximately £125,000.

3.2 The costs for 2014-15 works will be funded from approved 2013/14 LDF carry forward of £193.600.

3.3 The revenue costs of the work will be costed to Strategy and Planning Policy (Cost centre D14513.5332)

4. Legal and Democracy

4.1 The recommendations in this report comply with the statutory requirements set out in the Planning and Compulsory Purchase Act 2004 and the regulations made under that act. Regard has been taken of the National Planning Policy Framework and the National Planning Practice Guidance.

4.2 Notification of this key decision was published on the Forward Plan on 5 September 2014 so the statutory 28 days’ notice has been given. The report was published five working days before the decision is due to be taken and will be subject to call in for five days once the decision is published.

5. Consultation and co-production

5.1 The Plan has at various stages undergone public consultation, including co-production of policy approaches on some key issues. The next ‘main modifications’ stage is a requirement of the local plan examination process. Once agreed by Cabinet, all the proposed modifications will undergo public consultation for eight weeks. The responses received will then be passed to the Local Plan Inspector for her to consider prior to issuring her final report.

6. Risk management

6.1 The principal risk at this point in the examination of the Lambeth Local Plan is the requirement to follow procedures set out in legislation, national planning policy and guidance and the guidance provided by the planning inspectorate. These requirements

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are addressed by the proposal to consult on the full list of proposed modifications, including main modifications, plus the associated sustainability appraisal of the modifications, for an eight week period.

7. Equalities impact assessment

7.1 An equalities impact assessment (EIA) was undertaken as part of the sustainability appraisal of the Lambeth Local Plan Proposed Submission. Further sustainability appraisal of the proposed modifications is explained in paragraph 2.3 and set out in Appendix 2. This appraisal involved assessing modifications against all 18 sustainability objectives including the equalities objective: ‘To ensure equitable outcomes for all communities, particularly those most liable to experience discrimination, poverty and social exclusion’. Overall, the modifications are considered to have either positive or neutral effects on the equalities objective, with no effects being of such significance to warrant a change in the original sustainability appraisal scores on the Lambeth Local Plan Proposed Submission.

8. Community safety

8.1 Planning and the built environment have a considerable impact on community safety. The Lambeth Local Plan Proposed Submission includes policies on design of the built environment and public realm. The main modifications do not change this approach.

9. Organisational implications

9.1 Environmental

Sustainability, including environmental sustainability, is central to development plan policy. The Lambeth Local Plan Proposed Submission addresses the full range of environmental issues including transport, waste management, flood risk and sustainable urban drainage, open space, trees and green infrastructure, nature conservation and biodiversity, local food growing, carbon dioxide emissions reduction, energy efficiency and sustainable design and construction. The environmental effects of the plan were assessed as part of the sustainability appraisal process. Sustainability appraisal of the proposed modifications is explained paragraph 2.3 and Appendix 2.

9.2 Health

A health and well-being impact assessment was undertaken as part of the sustainability appraisal of the Lambeth Local Plan Proposed Submission. Further sustainability appraisal of the proposed modifications is set out in paragraph 2.3 and Appendix 2.

Timetable for implementation

Stage in plan preparation DateConsultation on proposed modifications (including main modifications) – eight weeks

November 2014 – January 2015

Inspector’s report issued for fact check By 6 March 2015

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Inspector’s final report (non-binding) March/April 2015Adoption By May 2015

Audit trailConsultationName/Position Lambeth

cluster/division or partner

Date Sent Date Received

Comments in para:

Sue Foster Strategic Director Delivery

19.09.14 24.09.14 None

Mike Pocock Delivery Director Business, Growth and Regeneration

18.09.14 24.09.14 None

Carolyn Dwyer Delivery Director Communities, Housing and Environment

19.09.14 24.09.14 None

Sandra Roebuck Assistant Director Neighbourhood Investment

19.09.14

Peter Flockhart Governance and Democracy

19.09.14 8.10.14 Para 4.1

Katy Shaw Democratic Services 19.09.14 8.10.14 Para 4.2 and throughout report

Hamant Bharadia Finance 19.09.14 8.10.14 Finance Summary and paras 3.1-3.3

Cllr Jack Hopkins Cabinet Member for Business and Growth

19.09.14 30.09.14

Cllr Diana Morris Chair of Planning Applications Committee

19.09.14

Rachel Sharpe Commissioning Director Housing, Regeneration and Environment

19.09.14

Adrian Smith Commissioning Director Culture and Communities

19.09.14

Helen Charlesworth-May Strategic Director Commissioning

19.09.14

Report historyOriginal discussion with Cabinet Member

04.09.14

Report deadline 14.10.14Date final report sent 14.10.14

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Report no. 86/14-15Part II Exempt from Disclosure/confidential accompanying report?

No

Key decision report YesDate first appeared on forward plan 05.09.14Key decision reasons 3. Meets community impact testBackground information National Planning Policy Framework March 2012 (NPPF)

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/6077/2116950.pdfNational Planning Practice Guidance March 2014 (NPPG)http://planningguidance.planningportal.gov.uk/blog/guidance/Town and Country Planning (Local Development) (England) Regulations 2012http://www.legislation.gov.uk/uksi/2012/767/pdfs/uksi_20120767_en.pdfExamining Local Plans Procedural Practice – The Planning Inspectorate December 2013http://www.planningportal.gov.uk/uploads/pins/dpd_procedure_guide.pdf

Appendices Appendix 1 - Proposed modifications to the Lambeth Local Plan Proposed Submission

Appendix 2 – Sustainability Appraisal and Habitat Regulations Assessment on Proposed Modifications to the Lambeth Local Plan Proposed Submission

Appendix 3 – Local Development Scheme November 2014

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Cabinet

10 November 2014

Community Infrastructure Levy Approval of Infrastructure Payment and Discretionary Reliefs Statements

Wards: All

Report Authorised by: Strategic Director Delivery: Sue Foster

Portfolio: Councillor Jack Hopkins Cabinet Member for Jobs & Growth

Contact for enquiries: CFraser@Lambeth.gov.ukClive Fraser, Lead Regeneration, Strategy and Policy, Neighbourhood and Investments, 020 7926 1178

Report summary

The Lambeth Community Infrastructure Levy (CIL) Charging Schedule came into effect on 1 October 2014. CIL income will be a valuable additional source of capital funding for infrastructure projects, at a time when the council is experiencing an overall decline in capital resources.

Charging authorities are permitted under the Community Infrastructure Regulations 2010 to offer a number of reliefs from a charge to CIL, and to accept payment of CIL in kind rather than a monetary payment. In order for these provisions to be ‘switched on’, a charging authority needs to publish statements about the availability of each in its area. On 14 July 2014 Cabinet approved two statements relating to particular reliefs, an instalment policy and the Council’s Regulation 123 List.

This report concerns three further proposed policy statements required under CIL Regulations, covering 3 areas:

the acceptance of land and infrastructure provision as CIL in kind payments; discretionary social housing relief; and discretionary charitable relief.

Statements of the type proposed in this report, and of the type previously approved by Cabinet on 14 July 2014, are referred to collectively in this report as ‘CIL Policy Statements’.

Finance summary

The Community Infrastructure Levy (CIL) is a new income stream which will be applied towards the cost of funding the borough’s infrastructure requirements. Over the next five years it is estimated that it will raise £32.5 million which will be a very valuable source of additional capital funding at a time when the council is experiencing an overall decline in available capital resources

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The steps proposed in this report mean that in some cases the Council will have discretion to accept the provision of infrastructure rather than a monetary payment in settlement of CIL liability in appropriate cases. Infrastructure provision will be able to be provided in kind, as opposed to a CIL Financial Receipt.

The further proposals mean that in limited number of cases a discretionary relief will also be offered to support wider charitable and housing objectives.

Recommendations

1. That the Cabinet approve the following CIL Policy:

Statement regarding land payments and availability of infrastructure payments (Appendix 1)Statement of Availability of Discretionary Charitable Relief under Regulations 44 and 45 (Appendix 2)Statement of Availability of Discretionary Social Housing Relief under Regulations 49A and 49B (Appendix 3)

2. That Cabinet delegates to the Strategic Director Delivery the power in consultation with the relevant Cabinet Member for finance and the relevant Cabinet Member for strategic planning to make any minor amendments to existing and future CIL Policy Statements.

3. That pending any amendment to the officer scheme of delegation Cabinet delegates to the Strategic Director Delivery the power in consultation with the relevant Cabinet Member for finance and the relevant Cabinet Member for strategic planning to make any decisions about the application of CIL Policy Statements to individual claims for relief.

1 Context

1.1 The Community Infrastructure Levy (CIL) is a charge where local authorities collect contributions from new developments in their area, in order to fund new infrastructure support growth. It is applied at a rate per sq. metre, depending on development type and location. It may be used to fund infrastructure such as roads and other transport facilities, flood defences, schools and other educational facilities, medical facilities, sporting/recreational facilities and open spaces.

1.2 Various exemptions, or ability to apply for relief, are available under the CIL Regulations. These include social housing relief (covering social rented or shared ownership), exemptions for charities (for buildings in operational use), and for self build. In addition Local Authorities may introduce discretionary relief for certain areas identified in the CIL Regulations. For CIL discretionary relief to be offered, the Local Authority must approve and publish a statement to that effect.

1.3 The general purpose of approving and publishing such CIL statements is to ensure that wider social or economic development objectives are not adversely affected by CIL, by introducing some flexibility and pragmatism in the collection of CIL.

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1.4 The introduction of a CIL Charging Schedule is a decision for local authorities and the introduction and operation of CIL is governed by the CIL Regulations 2010. The CIL Regulations have been amended 4 times since they were introduced in 2010. These amendments have frequently addressed inconsistencies and need for improvements in the drafting of the CIL Regulations, but they have also created a changing operational environment. The latest amendments of February 2014 introduced new scope to manage the provision of infrastructure as well as the introduction of further CIL relief.

Action to date on introducing the Lambeth CIL and CIL Policy Statements

1.5 The Council considered the Lambeth CIL Charging Schedule on 14 July 2014, and made a recommendation to the full Council on 23 July 2014 that the Charging Schedule be approved as of 1 October 2014. The approval of the Lambeth CIL Charging Schedule followed two rounds of consultation, and an examination of the Charging Schedule and supporting documents by an independent examiner from the Planning Inspectorate.

1.6 The Cabinet, in recommending approval of the CIL Charging Schedule on 14 July 2014, also approved a number of CIL related documents to support the operation of CIL. These included the adoption of a Lambeth CIL Regulation 123 List (which defines what CIL may be spent on in the borough), a CIL Installments Policy (dealing with timing of CIL payments), and two CIL Policy Statements related to the availability of CIL relief specifically in Lambeth:

Statement of Availability of Discretionary Relief for Exceptional Circumstances – dealing with the issue of relief

Statement concerning Charitable Relief for Investment Purposes

Making these two forms of relief available was linked to representations made during the consultation and examination process on the Lambeth CIL Charging Schedule.

2. Proposal and Reasons

2.1 The following new CIL Policy Statements are proposed to be approved and published by the Council;

(a) Statement regarding land payments and availability of infrastructure payments (Appendix1)

2.2 The Statement will allow the Council to enter into an agreement to receive an infrastructure payment (infrastructure provision built out or otherwise provided as part of a development), by way of full or part payment of a CIL liability. The type of infrastructure provided must be related to infrastructure on the Council’s Regulation 123 list. Such agreements will be entered into at the Council’s discretion. Under the CIL Regulations, the Council is also entitled to accept a transfer of land by way of payment of CIL liability. There is no requirement under the CIL Regulations for the council to publish a statement about land payments (as distinct from infrastructure payments). In view of the similarity

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with infrastructure payments, it is considered appropriate to address land payments together with infrastructure payments.

2.3 The ability to accept infrastructure provision from developers, at the Council’s discretion, was introduced in the February 2014 CIL Regulations amendments. Permitting developers to meet CIL liability through the provision of land and/or direct provision of required infrastructure has a number of advantages. These include access to sites required for infrastructure, reducing the timescale to provide infrastructure, and potential cost saving arising from developers undertaking work directly as part of a wider construction project.

(b) Statement of Availability of Discretionary Charitable Relief under Regulations 44 and 45 (Appendix 2)

2.4 The Statement is proposed to replace the current Policy Statement on Discretionary Charitable Relief, to include scope for relief to be made available under Regulation 45 of the CIL Regulations, as well as under Regulation 44. The Policy Statement which it is proposed to replace dealt only with relief under Regulation 44 (discretionary charitable relief for investment activities, that is where development is being undertaken that is intended to generate income for a charitable institution). Relief under Regulation 45 is a more general relief for charitable institutions where the development is being undertaken by the charity for its own purposes rather than as an income generating activity. The making available of CIL reliefs under Regulations 44 and 45 also requires consideration of complex legal rules relating to state aid. The availability of exemptions under the state aid rules has recently changed. In view of this, and following further consideration of the interplay between the various CIL Regulations relating to development by charities, it is considered beneficial to ‘switch on’ the relief under Regulation 45 as well as under Regulation 44.

(c) Statement of Availability on Discretionary Social Housing Relief under Regulations 49A and 49B( Appendix3 )

2.5 This statement allows the Council, at its discretion, to offer CIL relief for discounted market sales. This refers to housing units being sold at 80% or less of their market value. The ability to offer this discretionary relief was introduced again under the February 2014 amendments to the CIL Regulations. To be able to offer the relief, a charging authority needs to publish a statement about how discounted market housing will be ‘allocated’ in its area, to the extent that the authority is responsible for ‘allocating’ that housing type. The meaning of ‘allocation’ in this context is not entirely clear in the CIL Regulations. It is considered that it should be interpreted as meaning that the charging authority should set out its approach to how discounted market units should be brought forward for sale (for example, to people who meet certain income criteria). For a discounted market sales scheme qualifying for Discretionary Social Housing Relief, the calculation of relief will follow the same methodology as mandatory Social Housing Relief (that is, the relief which can be claimed by developers providing rented or shared ownership social housing), i.e. relief will be 100% of CIL liability.

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2.6 Lambeth, alongside other boroughs, have granted planning permission for schemes such as those promoted by Pocket Housing, who provide a form of discounted market sales but do not have relief from CIL. The basis of offering CIL relief would be to stimulate and encourage new providers for the intermediate housing market. To date, only the London Borough of Wandsworth has adopted a statement on discretionary social housing relief, but other London Boroughs are understood to be considering it.

3.7 Mechanisms are also proposed to enable the making of minor changes to CIL Policy Statements and for the taking of decisions in relation to individual applications for relief.

3. Finance

3.1 The Community Infrastructure Levy (CIL) is a new income stream which will be applied towards the cost of funding the borough’s infrastructure requirements. Over the next five years it is estimated that it will raise £32.5 million, rising from a low level to over £8m per annum after a few years, based on current housing targets and projected commercial office development in Waterloo and Vauxhall. Current projections show it dropping back to an average of around £6m per annum for the subsequent five year period. CIL income will be a valuable additional source of capital funding for infrastructure projects at a time when the council is experiencing an overall decline in capital resources.

3.2 The provisions of this report mean that the Council will have discretion to accept the provision of infrastructure rather than a monetary payment in settlement of a CIL liability in some appropriate cases. Whilst this will mean a reduced cash income stream, financial benefit will instead be secured in other ways. These could include access to sites required for infrastructure, reducing the timescale to provide infrastructure, and potential cost saving arising from developers undertaking work directly as part of a wider construction project.

3.3 The further proposals mean that in a limited number of cases discretionary relief from CIL will also be offered to support wider charitable and housing objectives.

4. Legal and Democracy

4.1 The legislative regime for CIL is contained in Part 11 of the Planning Act 2008, the CIL Regulations 2010 and guidance issued to charging authorities by the Department for

Communities and Local Government.

4.2 The CIL Regulations allow a charging authority to provide relief from its charging rates in specified circumstances (these reliefs are specific to the individual charging authority and are separate from the general categories of reliefs and exemptions contained in the Regulations). In order to be able to provide reliefs of this nature, the charging authority must follow the procedure specified in the Regulations for each individual category of relief. These procedures may include the requirement for the charging authority to have in place a Policy Statement regarding the availability of the particular relief in its area.

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4.3 The contents of the proposed statements appended to this report comply with the requirements of the CIL Regulations.

4.4 The intention to consider a key decision was published on the Forward Plan on 26 September 2014 and therefore the required 28 days of taking a key decisions has been given. The report will be subject to call in for five days after the decision is published.

5. Consultation and Co-production

5.1 The introduction of the Lambeth CIL Charging Schedule was subject to two rounds of public consultation, in 2012 and 2013, and a formal examination, with a hearing in public in February 2014 was undertaken by an independent examiner. The Lambeth CIL Charging Schedule, and the Council’s approach to CIL, has been developed over time as result of representations made and on the receipt of the Examiner’s report.

5.2 Throughout the consultation process developers were concerned about the cost of introducing CIL as a standard charge on development, believing that instead there could be site specific charges depending on the type of development. The statement relating to infrastructure payments/provision as a means of meeting CIL liability is a useful tool in addressing those concerns in a practical and meaningful way.

5.3 Charitable relief was an issue raised during consultation, the examination and post examination. The revision to the current CIL Policy Statement relating to relief under Regulations 44 and 45 has arisen in part in response to comments from a major arts and cultural charitable provider.

5.4 Pocket Housing raised the issue of the impact of CIL on their form of housing development as part of the examination of the CIL Charging Schedule. The Council’s response to them at the time, was that discretionary social housing relief would in due course be a means of addressing the matters raised by them and by developers of similar types of housing schemes.

6. Risk management

6.1 If not appropriately managed the application of CIL reliefs could lead to the Council receiving less CIL income than otherwise. Appropriate monitoring of the instances of relief and the benefits achieved will be put in place, and monitoring of outcomes will be included in the annual CIL monitoring report, required under CIL Regulations. Recommendation (3) in this report addresses an interim mechanism for deciding individual claims for relief.

7. Equalities impact assessment

7.1 An equalities impact assessment was produced during the consultation on the Lambeth Charging Schedule.

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8. Community safety

9.1 None arising directly from the content of this report.

10. Organisational implications

None 11. Timetable for implementation

11.1 The timetable for approval and publication for the CIL statements set out in the report is below:

Cabinet Decision 10 November 2014

Policies published and operational 1 December 2014

Audit trailConsultation

Name/Position Lambeth cluster/division or partner

Date Sent Date Received

Comments in para:

Sue Foster, Strategic Director Delivery

Delivery 25.9.2014

Mike Pocock, Director Business Growth and Regeneration

Delivery / Business Growth and Regeneration

19.9.2014 19.9.2014 & 29.10.2014

Para 5.2, and general throughout.

Sandra Roebuck, Assistant Director Neighbourhoods and Investment

Delivery/ Business Growth and Regeneration

25.9.2014

Christine Fleming Head of Growth, Capital and Tax

Enabling/Strategic Finance

25.9.2014 9.10.2014 & 23.10.14

Finance Summary and Para 4.1 to 4.3

David Joyce, Director Planning & Development

Delivery / Business Growth and Regeneration

25.9.2014

Mandy Green, Associate Director Commissioning

Commissioning (Housing)

25.9.2014 9.10.14 Appendix 3

Finance Business Partnering 25.9.2014Susan Boucher, Legal Services

Enabling: Integrated Support

25.9.2014 3.10.14 Various, throughout,

Katy Shaw, Democratic Enabling: Corporate 25.9.2014 8.10.14 Para 5.4

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Services AffairsCouncillor Jack Hopkins Cabinet Member: Jobs

and Growth.25.9.2014

Internal Officer Board Date of meetingExternal

Report history

Original discussion with Cabinet Member 23.10.14

Report no. 87/14-15

Part II Exempt from Disclosure/confidential accompanying report?

No

Key decision report Yes

Date first appeared on forward plan 26.09.14

Key decision reasons Financial and Community Impact.

Background information Report to Cabinet

http://moderngov.lambeth.gov.uk/documents/s67234/07_CIL%20Cabinet%20Report%20CIL%20Final%2026%20June%2014.pdf

Appendices Appendix 1: Statement regarding land payments and availability of infrastructure payments

Appendix 2: Statement of Availability of Discretionary Charitable Relief under Regulations 44 and 45

Appendix 3: Statement of Availability on Discretionary Social Housing Relief under Regulations 49A and 49B.

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APPENDIX 1

LONDON BOROUGH OF LAMBETH

COMMUNITY INFRASTRUCTURE LEVY

STATEMENT REGARDING LAND PAYMENTS AND AVAILABILITY OF INFRASTRUCTURE PAYMENTS

In accordance with Regulations 73A, 73B and 74 of the Community Infrastructure Levy (CIL) Regulations 2010, Lambeth Council hereby gives notice that it may accept infrastructure payments in the London Borough of Lambeth.

Lambeth Council may also accept land payments in accordance with Regulations 73 and 74 of the CIL Regulations 2010.

This statement is effective from 1 December 2014

The CIL Regulations 2010 allow the Council to enter into an agreement to accept a transfer of land to the Council in full or part satisfaction of a CIL liability The Council may also enter into an agreement to receive an infrastructure payment by way of full or part payment of a CIL liability. The type of infrastructure provided by way of an infrastructure payment must be related to infrastructure that is included on the Council’s Regulation 123 list

Any agreement relating to a land payment or an infrastructure payment must be made before the chargeable development commences.

The Council is not obliged to accept a land payment or an infrastructure payment and it will consider proposed land payments and infrastructure payments on a case by case basis.

Please see the Community Infrastructure Levy Regulations 2010 for full details relating to land payments and infrastructure payments, including the conditions that apply to each type of payment.

Note: Land payments and infrastructure payments are available only in respect of liability for the Lambeth CIL, and do not apply in respect of liability for the Mayor of London’s CIL.

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APPENDIX 2

LONDON BOROUGH OF LAMBETH

COMMUNITY INFRASTRUCTURE LEVY

STATEMENT OF AVAILABILITY OF DISCRETIONARY CHARITABLE RELIEF UNDER REGULATIONS 44 AND 45

In accordance with Regulation 46 of the Community Infrastructure Levy (CIL) Regulations 2010, the Council hereby gives notice that discretionary charitable relief is available in the London Borough of Lambeth under Regulations 44 and 45.

The Council continues to accept claims for discretionary charitable relief for investment activities under Regulation 44 from 1 October 2014 and will accept claims for other discretionary charitable relief under Regulation 45 from 1 December 2014.

Discretionary charitable relief under Regulation 44 and/or Regulation 45 must be claimed for and approved prior to the commencement of the chargeable development by completing the CIL Relief Form (form 2).

In order to qualify for relief under Regulation 44 the following must apply:

the claimant owns a material interest in the relevant land and is a charitable institution; and

the whole or greater part of the chargeable development will be used as an investment where the profits will be applied for charitable purposes (whether for the claimant’s charitable institution or the claimant’s institution and other charitable institutions).

In order to qualify for relief under Regulation 45 the following must apply:

the claimant owns a material interest in the relevant land and is a charitable institution; the chargeable development will be used wholly or mainly for charitable purposes

(whether for the claimant’s charitable institution or the claimant’s institution and other charitable institutions); and

the claimant would have been eligible for exemption under Regulation 43 (exemption for charities) but for the fact that exemption under that regulation would have amounted to state aid.

Relief will be available under Regulations 44 or 45 only if the Council is satisfied that the granting of the relief would not amount to state aid that would need to be notified to and approved by the European Commission.

There may be instances where the development ceases to be eligible for relief under Regulation 44 and/or Regulation 45.

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Subject to the requirements of the Community Infrastructure Levy Regulations 2010, the Council will consider validly made claims for relief under Regulation 44 and/or Regulation 45 according to the individual circumstances of each case and the merits of the claim made. The Council will decide the amount of any relief to be granted. If the Council decides to introduce further criteria in relation to relief under either of these Regulations, these criteria will be published by way of revision to this policy statement.

For further information on these reliefs and how to apply for them please see Regulations 45, 47 and 48 of the CIL Regulations 2010.

Notes:

1. With effect from the date of this notice, this combined statement relating to the availability of reliefs under both Regulations 44 and 45 replaces the previous statement given by the Council in relation to the availability of relief as from 1 October 2014 under Regulation 44 only.

2. This statement only applies to the collection of the Lambeth CIL, and does not apply to the Mayor of London’s CIL.

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APPENDIX 3

LONDON BOROUGH OF LAMBETH

COMMUNITY INFRASTRUCTURE LEVY

STATEMENT REGARDING AVAILABILITY OF DISCRETIONARY SOCIAL HOUSING RELIEF

In accordance with Regulations 49A and 49B of the Community Infrastructure Levy (CIL) Regulations 2010, Lambeth Council hereby gives notice that Discretionary Social Housing Relief is available in the London Borough of Lambeth.

This statement is effective from 1 December 2014.

Discretionary Social Housing Relief relates to a chargeable development that includes one or more ‘qualifying dwellings’ under Regulation 49A. In order for a dwelling to be a ‘qualifying’ dwelling for these purposes, a number of conditions (specified in the CIL Regulations) must be satisfied. These include the requirement that the dwelling must be sold for no more than 80% of its open market value at the time of sale.

There may be instances where the development ceases to be eligible for discretionary social housing relief.

For further information on this relief and how to apply for it please see Regulations 49 to 54 of the CIL Regulations 2010.

For the purposes of regulation 49B(1)(a)(iii) of the CIL Regulations 2010, intending claimants for this relief should note the following. Where a proposed development includes housing of the type for which discretionary social housing relief is claimed, the Council will require the entry into a planning obligation in the form of a section 106 agreement in terms that are acceptable to the Council. Those terms will generally include a requirement that sales of dwellings for which this relief is made available are targeted in the first instance towards lower income households who have a connection (through living or working) with the London Borough of Lambeth in accordance with the GLA’s Intermediate income requirements. Intending purchasers of individual units will need to confirm their agreement, through the terms of their purchase, to these requirements. The Council will work with developers and others wishing to bring forward schemes potentially eligible for this relief to compile details of potential individual purchasers within the Borough who are likely to meet the criteria relating to household income and local connection (contained in any section 106 agreement) for sales of dwellings that are eligible for this relief. The Council will not maintain a waiting list, but will work with partners in finding applicants to purchase accommodation. Within the framework outlined here, it will be for individual buyers and sellers to agree on sales and purchases in the usual way.

Note: Discretionary Social Housing Relief is available only in respect of the Lambeth CIL and does not apply in respect of liability for the Mayor of London’s CIL.

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Cabinet - 10 November 2014

Council – 19 November 2014

Employment of Children Bylaws

Wards: All

Report Authorised by: Strategic Director for Delivery – Sue Foster OBE

Portfolio: Cabinet Member for Children & Adult Services: Councillor Jackie Meldrum

Contact for enquiries:krose@lambeth.gov.ukKeisha Rose (Child Employment Officer), 020 7926 9827

Report summary

The purpose of this report is to seek approval from Cabinet and Council to adopt the revised Child Employment bylaws attached as Appendix A. The bylaws will:

1. Provide a robust and legal framework for employers operating within the London Borough of Lambeth

2. Safeguard all children between the ages of 13 – 16 who are seeking employment/working in establishments/businesses based in Lambeth.

Finance summary

There will be some associated cost around the consultation, marketing and awareness of the new Bylaws.

Recommendations

Cabinet

a) To note the contents of the Employment of Children Bylaws attached at Appendix A

b) To recommend to Council that it adopt the Bylaws:-

Council

(a) To adopt the Employment of Children Bylaws as set out at Appendix A

(b) To delegate authority to the Director of Corporate Affairs to implement the statutory procedure for making Bylaws and to apply to the Secretary of State for their confirmation in accordance with the process as detailed at paragraph 4 of this report and to authorise officers to take all steps necessary to give effect to, conducive to or calculated to facilitate the recommendations in this report and the bringing into force of the Bylaws

Page 49 Agenda Item 7

1. Context

1.1 The Council is responsible for enforcing the law in relation to the employment of children and young persons.

1.2 A key part of this duty includes safeguarding the health, welfare and/or physical development of the child and ensuring that employment will not render the child unfit to obtain proper benefit from his or her education.

1.3 The main provisions governing the employment of children are set out in section 18 of the Children and Young Persons Act 1933 (as amended), prescribing, inter alia, the maximum number of hours and core times during which children of different ages may work.

1.4 Sections 18(2) and 20(2) of the Children and Young Persons Act 1933 supplement these provisions by extending Councils with the power to make Bylaws regulating, amongst other things, the types of employment in which children and young persons may be engaged in, as well as their hours and conditions of work and for a locally administered system of employment permits.

1.5 Section 21 of the said Act, makes it a criminal offence to employ a child in contravention of section 18 or any Bylaws made under it, punishable on summary conviction by a fine not exceeding level 3 on the standard scale (currently £1,000).

2. Proposal and Reasons

2.1 The Employment of Children Bylaws currently in force in the Borough were adopted in 1968 by the Inner London Education Authority (ILEA) and amended in 1973. Upon the abolition of ILEA those Bylaws transferred to Lambeth Council when the Council became the Education Authority for the Borough.

2.2 The Bylaws the Council inherited need updating.

2.3 In 1998 the then Department for Children, Schools and Families published model child employment Bylaws for local authorities to adopt, with some provision for the model to be adapted to meet particular local circumstances. In 2000 a number of minor changes to the law were introduced relating to the prohibition of the employment of children below the age of 13 and the model Bylaws duly amended to reflect these changes. The document at appendix A is fashioned on the model Bylaws.

3. Finance

3.1 Much of the cost related to these Bylaws will be based on the consultation and marketing processes we will follows to ensure citizens are aware of the Bylaws.

3.2 Further clarity regarding sufficiency of budgets:

The Child Employment Team currently sits with Lambeth’s School Admissions Team and is line managed by senior School Admission managers. The cost centre for this is piece of work will come from the School Admissions budget.

The Bylaws will be publicised in the local press – this may come with an associated cost.

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4. Legal and Democracy

4.1 The Council has a general power under Section 235 of the Local Government Act 1972 to make Bylaws for the good rule and government of the borough and suppression of nuisances therein.

4.2 Section 236 of the same Act sets out the procedure which must be followed by the Council in this connection. If the Council fails to follow this procedure, the Secretary of State will refuse to confirm the Bylaws. The procedure requires a resolution by full Council, notice of the intention to adopt the Bylaws being given in a local newspaper and then an application being made to the appropriate Secretary of State for confirmation of the proposed Bylaws (Appendix A refers).

4.3 Subject to Council approval, the Bylaws will be made under Seal and then placed on deposit in Council offices for a period of not less than one calendar month. Notices will also be placed in at least one newspaper circulating in the area. Any person may make representations in relation to the proposed Bylaws during that time. Following the close of the application period the Director of Corporate Affairs will apply to the Secretary of State for confirmation of the Bylaws. Any representations made during the notice will be sent to and considered by the Secretary of State. .

4.4 Section 149 of the Equality Act 2010 sets out the new public sector equality duty replacing the previous duties in relation to race, sex and disability and extending the duty to all the protected characteristics i.e. race, sex, disability, age, sexual orientation, religion or belief, pregnancy or maternity, marriage or civil partnership and gender reassignment.

4.5 The public sector equality duty requires public authorities to have due regard to the need to:

• Eliminate unlawful discrimination, harassment and victimisation

• Advance equality of opportunity and

• Foster good relations between those who share a protected characteristic and those who do not.

4.6 Part of the duty to have “due regard” where there is disproportionate impact will be to take steps to mitigate the impact and the Council must demonstrate that this has been done, and/or justify the decision, on the basis that it is a proportionate means of achieving a legitimate aim. Accordingly, there is an expectation that a decision maker will explore other means which have less of a disproportionate impact.

4.7 The Equality Duty must be complied with before and at the time that a particular policy is under consideration or decision is taken – that is, in the development of policy options, and in making a final decision. A public body cannot satisfy the Equality Duty by justifying a decision after it has been taken.

4.6 Section 1 of the Localism Act 2011 introduced a new “general power of competence” for local authorities, defined as “the power to do anything that an individual generally may do” and which expressly includes the power to do something for the benefit of the authority, its area or persons resident or present in its area.

4.7 The adoption of the bylaws is a key decision for which 28 days’ notice was given on the Forward Plan.

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5. Risk management

5.1 There are three main risks to this if Bylaws do not exist or are not ratified:

5.2 Safety of children – The proposed Bylaws sets a standard which protects all children (both Lambeth and non-Lambeth residents) whilst employed in businesses in the Lambeth area. Without such Bylaws in place then children can be exposed to practices which could put them in danger.

5.3 Lack of business structure – Businesses who employ school aged children need to know their legal rights and have clear understanding of what they can or cannot do. These Bylaws will provide employers with that framework and by default give them context and protection.

5.4 Reputation management – Without updated Bylaws, children in the borough could be left vulnerable to poor employment practices and this could have a negative impact on the Councils reputation.

6. Community safety

6.1 Lambeth Legal Services have identified their view as per section 4 of this paper.

6.2 However, in addition to their input, these proposed Bylaws makes the child employment practices of the Child Employment Team legally compliant and promotes community safety at work.

7. Organisational implications

7.1 Environmental

None

7.2 Staffing and accommodation

None

7.3 Procurement

Gateway 3 forms will be drafted to ensure that all parties involved in the marketing and promoting of these Bylaws get paid. All invoices will be £1,000 or lower, except the costs for legal advice/assistance.

7.4 Health

None

8. Timetable for implementation

Date Deadline10 Nov 201419 November 2014

Cabinet meetingCouncil Meeting

1 December 201 Go live date for bylaws and policies

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Audit trailConsultation

Name/Position Department or Organisation

Date Sent Date Received

Comments in para:

Cathy Twist – Delivery Director

Education, Learning & Skills Cluster

21/11/2013 Oct 2014 n/a

Jean-Marc Moocarme (Legal Services)

Governance and Democracy

Aug 2013 Oct 2014 Throughout

Katy Shaw (Democratic Services)

Governance and Democracy

12 June 2014

Throughout

Christina Thompson (Finance)

October

Councillor Rachel Heywood Former Cabinet Member: Children & Families

21/11/2013 n/a

Councillor Jackie Meldrum Cabinet Member for children and Adult Services

Oct 2014 Throughout

External

For internal reports, list internal meetings where issue has been considered

Report historyOriginal discussion with Cabinet Member 03/12/13, 20/01/2013 & 4/2/2014Report deadlineDate final report sentReport no. 88/14-15 Part II Exempt from Disclosure/confidential accompanying report?

No

Key decision report YesDate first appeared on forward plan 14/11/2013Key decision reasons Community impact

Background information Section 18 of the Children and Young Persons Act 1933 (as amended),http://www.legislation.gov.uk/ukpga/Geo5/23-24/12/section/18

Appendices Proposed Bylaws

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