Agenda Document Pack - Midlothian Council - 10/10/2023
Midlothian Council · 10 October 2023
Back to Midlothian Council — 10 October 2023 and its agenda
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Notice of Meeting and Agenda Midlothian Council Venue: Council Chambers/Hybrid, Midlothian House, Dalkeith, EH22 1DN Date: Tuesday, 10 October 2023 Time: 11:00 Executive Director : Place Contact: Clerk Name: Democratic Services Clerk Telephone: Clerk Email: democratic.services@midlothian.gov.uk Further Information: This is a meeting which is open to members of the public. Privacy notice: Please note that this meeting may be recorded. The recording may be publicly available following the meeting. If you would like to know how Midlothian Council collects, uses and shares your personal information, please visit our website: www.Midlothian.gov.uk Page 1 of 168
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1 Welcome, Introductions and Apologies 2 Order of Business Including notice of new business submitted as urgent for consideration at the end of the meeting. 3 Declaration of Interest Members should declare any financial and non-financial interests they have in the items of business for consideration, identifying the relevant agenda item and the nature of their interest. 4 Deputations No items for discussion 5 Minutes 5.1 Minute of Midlothian Council 29 August 2023 submitted for Approval 5 - 24 Midlothian Council Addendum to Minute of Meeting of 29 August 2023 PRIVATE 5.2 Minute of Special Meeting of Midlothian Council 13 September 2023 submitted for Approval 25 - 28 5.3 Minute Volume Index 29 - 30 5.4 Action Log 31 - 34 6 Questions to the Council Leader No items for discussion 7 Motions 7.1 Old Craighall Road 35 - 36 8 Public Reports 8.1 Scotland’s Census 2022 – Rounded Population Estimates, report by Chief Executive 37 - 44 Page 2 of 168
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8.2 Medium Term Financial Strategy – 2024/25 to 2028/29, report by Chief Financial Officer (Acting) 45 - 56 8.3 Midlothian Strategic Housing Investment Plan 2024/25 – 2028/29, report by Executive Director Place 57 - 102 8.4 Council House Building Programme - Progress Update 2023, report by Executive Director Place 103 - 118 8.5 Housing Services Assurance Statement 2023, report by Executive Director Place 119 - 130 8.6 Edinburgh and South East Scotland City Region Deal Annual Report 2022-2023, report by Executive Director Place 131 - 136 8.7 Edinburgh and South East Scotland City Region Deal – Concordat with SEStran, report by Executive Director Place 137 - 156 8.8 Home to School Transport Consultation, report by Executive Director Children, Young People and Partnerships 157 - 162 8.9 Withdrawn 8.10 Standards Commission Decision, report by Monitoring Officer 163 - 168 Exclusion of Members of the Public (A) TO CONSIDER RESOLVING TO DEAL WITH THE UNDERNOTED BUSINESS IN PRIVATE IN TERMS OF PARAGRAPH 1 OF PART 1 OF SCHEDULE 7A TO THE LOCAL GOVERNMENT (SCOTLAND) ACT 1973 - THE RELEVANT REPORTS ARE THEREFORE NOT FOR PUBLICATION; AND (B) TO NOTE THAT NOTWITHSTANDING ANY SUCH RESOLUTION, INFORMATION MAY STILL REQUIRE TO BE RELEASED UNDER THE FREEDOM OF INFORMATION (SCOTLAND) ACT 2002 OR THE ENVIRONMENTAL INFORMATION REGULATIONS 2004. 9 Private Reports 9.1 sportscotland Partnership Agreement 9.2 Appointment of Chief Financial Officer & Section 95 Officer and Chief Officer Corporate Solutions, report by Chief Executive 10 Date of Next Meeting The next meeting will be held on Tuesday 21 November 2023 at 11am. Page 3 of 168
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Minute of Meeting Midlothian Council Date Time Venue 27 June 2023 11.00 am Council Chambers, Midlothian House Present: Provost McCall (Chair) Depute Provost Bowen Councillor Parry – Council Leader Councillor Cassidy – Depute Council Leader Councillor Alexander Councillor Curran Councillor Drummond Councillor Imrie Councillor McEwan Councillor McKenzie Councillor McManus Councillor Milligan Councillor Pottinger Councillor Russell Councillor Scott Councillor Smaill Councillor Virgo Councillor Winchester In attendance: Dr Grace Vickers, Chief Executive Kevin Anderson, Executive Director Place Morag Barrow, Director of Health & Social Care: Midlothian HSCP / Chief Officer to Midlothian IJB Fiona Robertson, Executive Director Children, Young People & Partnerships Alan Turpie, Monitoring Officer, Legal and Governance Manger David Gladwin, Acting Chief Financial Officer (Section 95 Officer) Saty Kaur, (Acting) Chief Officer Corporate Solutions Derek Oliver, Chief Officer Place Fiona Clandillon, Head of Development Religious Representatives: Mrs Elizabeth Morton Janet Ritchie, Democratic Services Officer Heidi Waugh, Members Support Midlothian Council Tuesday 10 October 2023 Item No: 5.1 Page 5 of 168
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1. Welcome and Apology for Absence The Provost welcomed everyone to the meeting, advising that this meeting was a public meeting and would be webcast live to the internet. Apologies were received on behalf of Mrs Lawrie 2. Order of Business As per the agenda previously circulated 3. Declarations of interest Councillor Scott declared in interest in 8.6 Newbyres Community Trust 4. Deputations None. 5. Minutes of Previous Meetings Item No. Report Title Submitted by: 5.1 Minute of Council 9 May 2023 submitted for approval Executive Director Place Outline and Summary of Discussion The Minute of the meeting of Council on 27 June 2023 was submitted and approved as a correct record with the following amendment: Councillor Scott declared an interest in 8.21 but the notification on her leaving the meeting and returning was noted at 9.1 – the minute would be updated with this amendment. Moved by Councillor Parry, Seconded by McManus Decision The Minute having been approved, once amended the provost was authorised to sign as a true record of the meeting Action Provost/Democratic Services The provost reminded those present that she was very happy to congratulate Midlothian residents who have done something special or extraordinary. The provost highlighted that she was asked to note that there are Midlothian constituents who are part of the Boghall and Bathgate Caledonian Pipe band who are now the new World Champions and expressed her congratulations on behalf of the Council. Page 6 of 168
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Item No. Report Title Submitted by: 5.2 Minute Volume Index Midlothian Council 27 June 2023 Executive Director Place Outline and Summary of Discussion The following minutes were previously circulated to Members and subsequently noted and/or the recommendations contained therein approved. • Business Transformation Steering Group 24 April 2023 • Local Review Body 22 May 2023 • Performance Review and Scrutiny of 14 March 2023 • Midlothian Integration Joint Board, Audit & Risk 1 December 2022 Moved by Councillor Parry, Seconded by Councillor McManus Decision All to note. Item No. Report Title Submitted by: 5.3 Action Log Executive Director Place Outline and Summary of Discussion Councillor Drummond expressed her disappointment that the Cost of the School Day Briefing did not take place prior to the Summer recess as discussed and agreed at Council on 9 May 2023, and a date was not yet scheduled for September and the impact this delay has had. In response the Executive Director, Fiona Robertson advised that a date had been arranged pre summer break but due to Elected Members low attendance it was rearranged until after the Summer break, but expressed her assurances that they still had due consideration of the impact of the cost of living crisis for families, particularly in relation to school uniform costs, and at the briefing Head Teachers will share some of the actions they have taken to reduce the cost of the school day. Ms Robertson outlined an example of work undertaken at Dalkeith High School regarding school uniform costs and reassured the Council that the work and focus would continue to reduce the cost of the school day. Ms Robertson also apologised and advised in future they will try to meet agreed deadlines. The provost highlighted that a lot of the actions were now closed, and it was agreed these would be closed off and removed from the Action Log. Decision Action log updates were all noted, and it was agreed all completed actions would be removed. Action Democratic Services Page 7 of 168
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6. Questions to the Leader of the Council No items. 7. Motions Councillor Current highlighted his urgent Motion was refused under Standing Orders 8.9 and that an explanation should be given to the Mover and Seconder. Mr Turpie advised that this was not refused under 8.9 but under 7.8 quoting that less than three working days before the meeting, the Chair will have the final determination as to whether the matter will be accepted as urgent business. Councillor Curran advised that with regards to the Motion under 8.9 it states that If it is the opinion of the Chair of the meeting that a motion will not be presented for consideration, then they must provide a full explanation to the mover and seconder in respect of their decision. The Provost apologised for this and advised that she will ensure this is rectified. 8. Reports Report No. Report Title Submitted by: 8.1 Financial Monitoring 20233/23 – General Fund Revenue Acting Chief Financial Officer (S95 Officer) Outline and Summary of Discussion The purpose of this report was to provide Council with information on projections of performance against service revenue budgets in 2023/24 and to provide commentary on areas of material variance against budget. The budget performance figures as shown in appendix 1 result in a projected net overspend of £0.928 million which represents 0.3% of the revised budget. Projected overspends mainly relate to recurring areas of financial pressure or slower than planned delivery of savings measures. The Corporate Management Team have discussed these in depth and put in place recovery actions. The projection of the General Fund balance at 31st March 2024 is £13.797 million, of which £3.069 million is earmarked for specific use and a further £6.839 million relates to VAT claims leaving a non-earmarked General Fund balance of £3.889 million. Acting Chief Financial Officer, David Gladwin presented this report highlighting some of the financial pressures and the challenging financial position. This report was for information and noting. Councillor Parry expressed her disappointment on the slippage with Hillend and expressed her concerns with the complications with Scottish Water and Scottish Page 8 of 168
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Power and what can be done to get the project back on track. Councillor Parry also raised concerns with other developments within Midlothian with infrastructure problems and if it would be helpful if Councillors met with Scottish Power and Scottish Water to assist in moving forward with the problems. Ms Clandillon advised on the unforeseen delays due to the discovery of mains water pipes at the proposed junction and that discussions were ongoing to see what options could be progressed. Ms Clandillon provided an explanation on the key actions to minimise the overall impact on the programme and the delays in the construction of the Alpine coaster and confirmed that there were challenges in the wider delays across the local authority, but they had a good working relationship with key agencies and anything that could be done to support this would be welcomed. Councillor Smaill proposed internal audit look at this in terms of viability highlighting the unforeseen civil engineering issues, the deferred income and interest rates from this project and the projected income revenue and for all these reasons he proposed that internal audit team look at this project to bring the council up to date on the total picture. Councillor Milligan raised his concerns with regards to the overspends outlined in the report and in particular Sport and Leisure income projections, the cost pressures on the Council’s fleet and the loss of income with trade waste. He further stated that action is required. Councillor Imrie also raised issues with the Council run cafes running at a loss and highlighted private run cafes always seem to be busy, and also highlighted that in previous years we always did well on trade waste and that we need actions in place to address all these issues. Decision The Council noted the contents of the report Report No. Report Title Submitted by: 8.2 Housing Revenue Account Revenue and Capital Final Outturn 2022/23 and Capital Plan 2023/24 - 2025/26 Acting Chief Financial Officer (S95) Officer Outline and Summary of Discussion The purpose of this report was to provide Council with a summary of expenditure and income to 7th July 2023 for the Capital Plan and a projected outturn for both the Housing Revenue Account (HRA) and Capital Plan for 2023/24. The summarised financial performance for 2023/24 is: • Capital Investment in the year totalling £61.622 million. • A projected net overspend of £0.166 million on the Revenue Account. Page 9 of 168
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• A projected HRA general reserve at 31st March 2022 of £34.619 million. Acting Chief Financial Officer, David Gladwin presented this report highlighting the main sections of this report and apologised that there was a typo in 3.2 of the report which should read overspend not underspend which is reflected in the recommendations as an overspend. In responding to a question raised by Councillor Smaill, Mr Gladwin confirmed that the £34.6m did not include the Dalkeith Town Centre proposal. Councillor McKenzie, seconded by Councillor Scott moved the paper. Decision The Council noted the contents of the report. Report No. Report Title Submitted by: 8.3 General Services Capital Plan Outturn 2022/23 Acting Chief Financial Officer (S95 Officer) Outline and Summary of Discussion The purpose of this report was to provide Council with: • An update of the GSCP incorporating information on further additions to the Plan for approval and adjustments to existing project budgets (Section 3); • Information on the projected performance against budget for 2023/24 (Section 4); • Update on the Capital Fund (Section 5). Acting Chief Financial Officer, David Gladwin presented this report highlighting the main sections of this report. Councillor Parry moved the additional recommendation for the play park improvements and commented on the revenue budget challenge and the planned capital prioritisation projects. Councillor Milligan commented on the slippage on the capital plan advising that we have committed just under £2m and would expect this to be well underway. Mr Gladwin in responding advised that £2m was the expenditure as at the end of quarter 1 which was less than expected and planned for and explained about the lag time on invoices coming in from providers which may be part of part of the issue but there is still a significant shortfall where we expected to be. He further explained that Officers are monitoring and will take remedial action where they can to keep these projects on track. Page 10 of 168
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Mr Anderson in responding to a comment from Councillor Curran with regards to Millerhill circular path project and the unnecessary delays confirmed that approval has been given for this to be fully funded from developers’ contributions and this has now gone out to tender and a report can be brought back to Council with regards to the timescale for this programme. Mr Anderson also confirmed that any interest accrued will also be committed to the project. Councillor Parry, seconded by Councillor Cassidy moved the report. Decision Council: • Noted the inclusion of the projects listed in Section 3.1 in the General Services Capital Plan (GSCP); • Noted/approved the adjustments to the project expenditure budgets in the GSCP as set out in Section 3.2; • Approved the inclusion of the project in Section 3.3 in the GSCP; • Noted the forecast outturn for expenditure, funding and borrowing, as outlined in Section 4. Action Acting Chief Financial Officer Report No. Report Title Submitted by: 8.4 Standing Order 19.2 Decision – lease Burnbrae Road, Bonnyrigg Chief Executive Outline and Summary of Discussion The Chief Executive, Grace Vickers presented this report advising that the purpose of this report was to advise the Council of the decision taken by the Chief Executive in consultation with the Leader of the Council in terms of Standing Order 19.2 during the Summer recess highlighting that the main details are outlined in section 3.2 of the report. Councillor Milligan advised that he had not problem with the decision but raised a question with regards to the money committed to this retail unit at Burnbrae Road and the assurances that had been given that there was a client for this retail unit. He asked that an internal audit investigation takes place as to why we are now in this position trying to get a tenant for this unit and there being no legal deal already in place. Mr Anderson in responding advised that from the outset there was a preferred provider but not signed and sealed but towards the end of the construction this was no longer viable. He further confirmed that there has been active market interest and they are in a position to sign and seal a deal within the next couple of weeks. Page 11 of 168
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Councillor Milligan still advised that he could not understand why the retail outlet was built without a guarantee of a tenant at the end of it and still felt that the internal auditors need to investigate that we are not at undue risk. Councillor Smaill endorsed this recommendation and asked that Councillors are also given an update in private on the retail unit currently being constructed adjacent to this building in Buccleuch Street. Decision The Council agreed: • That Internal Auditors investigate the position of the retail unit at Burnbrae Road and that the Council are at no undue risk. • That an update is provided in private on the retail unit currently being constructed adjacent to this building in Buccleuch Street. • To otherwise note the report. Action Executive Director Place/Democratic Services Report No. Report Title Submitted by: 8.5 Outside Bodies and Appointments Executive Director Place Outline and Summary of Discussion The Executive Director Place, Mr Anderson advised that the Council is required to nominate representatives to the three outside bodies, Edinburgh Airport Consultative Committee, South East of Scotland Transport Partnership (SESTran) and Midlothian Twinning Association The Council’s representatives for Midlothian Twinning Association are Councillors McCall, Russell, Smaill and McManus. Councillor McManus now wishes to resign from this role. Council are therefore asked to appoint an alternative nomination to replace Councillor McManus. Currently, the representatives for South East of Scotland Transport (SESTran) are Councillor Imrie and Councillor Alexander. Councillor Alexander now wishes to resign from this role. It is proposed that an alternative nomination be sought to replace Councillor Alexander. For the Edinburgh Airport Consultative Committee, the Council’s representative is currently Councillor Alexander. Again, Councillor Alexander wishes to resign from this role. Council is asked to consider an alternative nomination for this position. Councillor Parry, seconded by Councillor McKenzie moved Councillor Bowen for Midlothian Twinning Association and Councillor Cassidy for SESTran and Edinburgh Airport Consultative Committee. There being no other nominations the above nominations were agreed. Page 12 of 168
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Decision The Council agreed the following nominations: • Councillor Bowen nominated for Midlothian Twinning Association • Councillor Cassidy nominated for SESTran. • Councillor Cassidy nominated for Edinburgh Airport Consultative Committee. Action Executive Director Place/Democratic Services Cllr Scott left the meeting prior to the next item being discussed at 11.35 am Report No. Report Title Submitted by: 8.6 Newbyres Community Trust – request for appointment Executive Director Place Outline and Summary of Discussion Executive Director Place, Mr Anderson in presenting this report advised that Council is requested to consider the appointment of an Elected Member as a new nominee to the Newbyres Community Trust as contained in the written request from the trust’s chair. In accordance with Standing Order 14, consideration requires to be given by Council to the appointment. Councillor Parry, seconded by Councillor Cassidy nominated Councillor Scott for this post. Councillor Milligan asked for clarity on a Councillor declaring an interest then being nominated as a representative. In responding Mr Turpie advised on the reason for Councillor Scott declaring an interest in that she was involved in helping set up the Trust and while there could be circumstances where they could not be nominated, in this case it was acceptable. There being no other nominations Councillor Scott was nominated. Decision The Council agreed to Councillor Scott being nominated to the Newbyres Community Trust Action Executive Director Place/Democratic Services Cllr Scott returned to the meeting 11.38 am Cllr Alexander joined the meeting 11.38 am Page 13 of 168
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Report No. Report Title Submitted by: 8.7 Scottish Welfare Fund and Cost of Living – funding request Executive Director Place Outline and Summary of Discussion The purpose of this report was to update Council on the current spend of Scottish Welfare Fund as at July 2023 and to invite Council to consider the use of COVID recovery funding to supplement the existing fund, fund a pilot approach to delivering Scottish Welfare Funding and fund a programme of cost of living support measures to be overseen by the Cost of Living Crisis Task Force The Chief Officer (Acting) Corporate Solutions, Saty Kaur in presenting this report advising on the request for money for a range of activities and provided a brief breakdown of the money requested as detailed within the report. Councillor Parry welcomed the paper and commented that the Cost-of-Living Task Force would be looking at winter preparedness and requested that an additional recommendation be added for a winter preparedness briefing for Councillors. Councillor Parry also highlighted the importance of supporting the local residents who are in crisis and that this is across all Councils. Councillor Milligan highlighted that it would be wrong to take £195,000 out of this fund for training purposes and that there were additional covid recovery funds which could cover training costs. Councillor Milligan also asked why the £140,000 had to go to sub-group and why Council could not just approve now. In response Mr Gladwin advised that the intention was to fund all this from covid recovery money which was carried over and use some of that for all of this. The remaining covid money set aside may be subject to further asks when going through winter period. Ms Kaur then provided further clarity on the items within 3.22 and the reasons why this was delegated to the Cost of Living Task force and also highlighted that perhaps the recommendation was not clear and confirmed also that all monies will come from the covid recovery funding and advised that the £195,000 was not being removed from the Scottish Welfare fund to apply to the pilot programme. Ms Kaur also advised that the pilot programme was not necessarily for training but to put additional staffing in to support Scottish Welfare Fund specifically and advised on the work to assist with this in the longer term. Councillor Milligan thanked officers for the explanation but would like to move an amendment that the £395,000 be put into the Scottish Welfare fund, the pilot programme for training to taken from the uncommitted covid reserves and £140,000 as per the recommendation. At this point Councillor Russell announced that under the 3.22 Additional Cost of Living Supports as it physically mentions Woodburn Pantry and as she is on the Board declared an interest and left the meeting. Councillor Imrie advised that from visiting some of the preferred partners they had different methodology for distributing the money and that this should be standardised and as an example advised on a voucher scheme which had been Page 14 of 168
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used during covid which seemed a right way to do this. He further advised that as a Council in order that we have followed the public pound we should be ensuring it is standardised and not different criteria for different preferred partners. Councillor Scott advised that we should be proud on how we have helped our communities during this time and the trusted partners may have different ways of distributing money but do it respectfully and highlighted that while she can see the merits in using vouchers it identifies the person as being vulnerable so can also see the disadvantages. Councillor Scott also highlighted that in winter there will be other challenges that we need to face with lot of families needing help but also the older people. Councillor Parry also highlighted that they have discussed some of these issues in the task force and these can be addressed again. Councillor Parry then asked if Councillor Milligan’s amendment was approved would there be any impact on the money getting to where it is needed. Ms Kaur confirmed that the debate was in the way in which it is to be funded and that it is not to be funded and the pilot programme will still be delivered. Further comments were made with regards the trusted partners and that they were doing a good job but everyone should have equal opportunity to access those funds and that Councillors Imrie’s comments were not about not being proud of trusted partners and volunteers but about scrutiny and equity. Decision The Council approved the application of COVID recovery funds to the value of £535k, for the following activity: • £395k to the Scottish Welfare Fund; • £140k to fund activity for September 2023 – March 2024 to support communities facing a Cost of Living Crisis, with the allocation of the funding delegated to the Cost Of Living Task Force to determine. Also to use uncommitted COIVD money for the following: • £195k to fund a pilot programme for SWF allocation. Action Executive Director Place During the discussion of the above item Councillor Russell announced that under the 3.22 Additional Cost of Living Supports it mentions Woodburn Pantry and as she is on the Board declared an interest and left the meeting at 11.49 am. Cllr Russell joined the meeting 11.56 am Page 15 of 168
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Report No. Report Title Submitted by: 8.8 Children’s Rights Report 2020-2023, Executive Director Children, Young People & Partnerships Outline and Summary of Discussion The Children and Young People (Scotland) Act 2014 places a duty on a range of public authorities to report, ‘as soon as practicable’ after the end of each three-year period, the steps they have taken to secure better or further effect the requirements of the United Nations Convention on the Rights of the Child (UNCRC). This report highlights the actions taken during the 2020-2023 reporting period to support children and young people in Midlothian to realise their rights. The report also sets out our next steps in supporting children and young people to realise their rights. The Executive Director Children, Young People & Partnerships, Fiona Robertson presented this report highlighting the background, actions and the next steps and advised that the Midlothian Children’s Rights Report has been submitted to the Members Library. Councillor Scott thanked Ms Robertson and all the officers for their commitment in working towards the children’s rights and the comprehensive local measure taken to listen to and act on the opinions of the young people in Midlothian. Councillor Scott further highlighted the importance of the children’s rights and them having their say and influence decisions affecting their lives and communities. Councillor Drummond also commented positively on this report and expressed her congratulations and appreciation for the work done over the last few years and raised a question if there a reason why Elected Members were not part of the Children’s Rights group. In response Ms Robertson advised that Elected Members were not excluded and that different options were being explored and highlighted that other local authorities did have groups which included Elected Members and that discussions would be taking place with the young people, and this would be brought back to the cross party following these discussions. Councillor Scott, seconded by Councillor Drummond moved the paper. Councillor Pottinger asked for clarification on 4.1 regarding A Children’s Rights and Information Officer could be appointed and that there were no resource figures attached to this and would kinship carers be included in this committee. In response Ms Robertson advised that it was important to ensure there was representation from different individuals and groups including carers but also to ensure there is no duplication and they will be reaching out to various groups. Ms Robertson in response to the question with regards to the Children’s Rights and Information Officer provided an explanation advising that this would need to be explored and consideration given to the cost of this resource. Page 16 of 168
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Councillor Virgo also expressed his congratulations and appreciation for all the work and asked while it is right that children know their rights, it is equally important that they know their responsibilities and Ms Robertson confirmed that this paper also refers to their responsibilities. Decision The Council approved the Midlothian Children’s Rights Report 2020-2023 and noted the steps taken to give further or better effect to children’s rights. Action Executive Director Children, Young People & Partnerships Report No. Report Title Submitted by: 8.9 Rapid Rehousing Transition Plan 2023/24 – 2024/25 Executive Director Place Outline and Summary of Discussion This report presented the annual review of Midlothian Council’s Rapid Rehousing Transition Plan which is to be submitted to the Scottish Government in August, 2023. Mr Oliver presented this report highlighting that this was to be submitted to the Scottish Government this month. Mr Oliver advised on the progress of homelessness and provided an update on the activities taken place during 2022/23/ Councillor McKenzie thanked Mr Oliver and his team for all the hard work and raised a question with regards to ongoing sustainability tenancies and Mr Oliver in responding confirmed that they prided themselves in getting it right first time and the good standard of tenancy and highlighted the things in place to prevent re- entering homelessness and the multi-agency work in place with third partners to support the tenant. Councillor Winchester asked if there was a reduction on people securing private residential tenancy and Mr Oliver advised that this did add a strain on what the Council could offer but there is a reduction in the private tenancy but with the numbers declining in homelessness this is being managed effectively. Councillor Curran expressed his thanks to Mr Oliver and the team and highlighted table 4 in the report which outlines the technical reasons for homelessness which dispels some of the myths on homelessness, Councillor Curran then asked if housing through education was still being delivered and Mr Oliver confirmed it was and he would provide further details following this meeting. Decision Council is recommended to note the updated Rapid Rehousing Transition Plan, which was to be submitted to the Scottish Government for August 2023. Page 17 of 168
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Report No. Report Title Submitted by: 8.10 Midlothian House and Dalkeith Town Centre Executive Director Place Outline and Summary of Discussion In December 2021 Midlothian Council supported the commissioning of a new vision for Dalkeith that would reflect Midlothian Council’s commitment to be Net Zero by 2030; incorporate revised strategies around Council assets and learning estate; and reflect different ways of working and living in a post-pandemic landscape. In addition, following recent reports to Council the refurbishment of Midlothian House is now incorporated into this regeneration masterplan as urgent action is required to progress a fabric first retrofit of the building to address its deteriorated façade, thereby significantly extend the lifespan of the building, and improve the building’s energy performance. By incorporating Midlothian House into the first phase of the town centre regeneration programme this creates the opportunity to create a one stop shop Hub within the town centre, expanding the building’s role as an anchor for accessible public sector and third sector services, not limited solely to Midlothian Council use, enabling building rationalisation and implementing hub & spoke service delivery. Executive Director Place, Kevin Anderson presented this report providing a brief background of the report and the action plan for Midlothian House, Mr Anderson then passed over Ms Clandillon who provided further information on the proposed work incorporating Midlothian House into the first phase of the town centre regeneration programme. Councillor Parry in moving the recommendations advised that, with the cost of living crisis this becoming a one stop shop for local people and third sector would be beneficial to have all those people under one roof and progress further stages of the regeneration plans in the future. Councillor Cassidy in agreeing with Councillor Parry seconded the recommendations commenting that this would be beneficial to Dalkeith and its residents. Councillor Russell commented on this and highlighted previous plans in 2007 when Dalkeith regeneration this was discussed and outlined some of those proposed plans and advised that she was positive at the beginning, but we are here again, and things have now changed with Midlothian House the major part of this document and what it represents. Councillor Russell commented that as this is office space can revenues money be used to do the building up and raised concerns of the third sector coming into what was a Council building but did comment positively on the benefit of the one stop shop for the community. Councillor Russell further highlighted there were still a lot of questions that needed answered and a lot of information in this document and also why Buccleuch House was now put aside and Midlothian House was now being considered and therefore proposed that the Council consider this being deferred to a Seminar. Page 18 of 168
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Councillor Cassidy noted that Councillor Russell commented on the delays in the past and could not understand proposing a further delay and advised that there are three choices and the importance of this project going forward as soon as possible. Councillor Milligan seconded Councillor Russell’s recommendation for a Seminar advising that it is about getting this right and commented on the information contained within the document highlighting the talks of joint ventures, bringing in more consultants and that he wasn’t sure everyone understood what was contained within the document. He further commented on the main recommendations and highlighted recommendation (a) clearly states retrofit and refurbishment of Midlothian House and this development is to be housing led, which means this building will be getting turned into houses not offices. He further advised Councillors need to understand what is being proposed and that the decision has been taken to effectively move everyone over to Fairfield House, but it needs to be clear to members what is being proposed. Mr Anderson in responding advised that he would try to provide some clarity and advised that previously it was recommended that this building be vacated but this was not approved. Mr Anderson further advised that this paper was split in that today the ask was for approval to progress with the works at Midlothian House, that are required to retain the building and remove the scaffolding pre-winter and that it is the other aspects which need to be housing led and using the HRA for that purpose. Mr Anderson commented that a Seminar might be more helpful in terms of the capital plan and the wider scope of Dalkeith. There followed further discussion where Councillors highlighted the importance of getting this moving as quickly as possible but did acknowledge the information contained in the document did require further clarity. It was noted that the works to Midlothian House should go ahead, and the building is secured but with regards to the bigger plan this requires more detail. During this discussion Councillors also raised the cost and there not being enough detail on the additional costs for this project and can costs be included. Councillor Parry in providing some clarity moved A, part of B with regards to Midlothian House and D. Mr Anderson highlighted that C was also required and this was agreed. Councillor Milligan agreed with the recommendations moved. This was agreed by Members. Decision The Council approved: • Recommendations A, part of B with regards to Midlothian House to make the building safe and secure, C and D as set out in the report. • To hold a Briefing/Seminar to further discuss the wider plan for Dalkeith. Action Executive Director Place/Democratic Services Page 19 of 168
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Report No. Report Title Submitted by: 8.11 Reinforced Autoclaved Aerated Concrete surveys Executive Director Place Outline and Summary of Discussion This report advises members of the survey work carried out to understand the process of assessing, investigating and managing any presence of Reinforced Autoclaved Aerated Concrete (RAAC) panels in floors, walls, eaves and roofs (pitched and flat), of council buildings which followed an alert by the UK Government’s Department for Education drawing attention to their advice. Chief Officer, Derek Oliver presented this report highlighting the main sections contained within the report. In respond to a question raised with regards to support and funding from the Government for the Education Estate, Mr Oliver confirmed there was no indication of additional funding but that may be different if they had discovered any Reinforced Autoclaved Aerated Concrete (RAAC). Decision The Council is recommended to note the management process and actions undertaken to date, based on the approach recommended by UK Government for Reinforced Autoclaved Aerated Concrete (RAAC) in public buildings. Report No. Report Title Submitted by: 8.12 Fireworks Control Zones Executive Director Place Outline and Summary of Discussion This report advised members that councils can designate Firework Control Zones that would make it a criminal offence to ignite a firework, or knowingly throw a lit firework in a zone, which can include private properties or gardens. https://www.legislation.gov.uk/asp/2022/9/contents/enacted Separate Guidance for Local Authorities references that the Firework Control Zones have not been designed as a measure to cover a whole local authority area and must be evidence based and proportionate. Chief Officer, Derek Oliver presented this report advising that this report provides information on the new powers for local authorities with regards fireworks and provided a brief overview of the main points contained within the report. In responding to a question raised by Councillor Virgo, Mr Oliver confirmed that if these recommendations are approved discussions will take place with the Police colleagues regarding the impact on the resources and that this will be a multi- agency report. Councillor Curran welcomed this paper and commented on the reduction of firework displays and the difficulties in organising these now and also commented on the Police, Fire and Rescue Board meetings every year falls just after bonfire night and if this can be arranged later so more feedback can be received with regards to this. Page 20 of 168
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Councillor Curran also highlighted that it would be beneficial if in the recommendations included a public consultation and that a Briefing is arranged for members. Mr Oliver in responding to a question raised by Councillor Curran with regards to waste amnesty confirmed that this remains unchanged for the areas previously collected from. Councillor Milligan advised that for the public consultation is there a requirement for this and what can be included as there are clear guidance from the Scottish Government. He further advised that a Seminar would be helpful to get clarity on the proposals and what actions can be taken. Mr Oliver confirmed that this would be multi-agency approach. Councillor McKenzie confirmed the date of the next meeting of the Police Fire and Rescue Board and advised that he would discuss with Democratic Services rescheduling this date. Decision The Council: • Noted that from 22 June, 2023 local authorities have new powers to reduce the negative impact of fireworks from implementation of the Fireworks and Pyrotechnics Articles (Scotland) Act 2022, • Considered any further action or a further report as to whether to designate any Firework Control Zones in Midlothian. • Agreed to hold a Briefing/Seminar for Elected Members • Agreed to reschedule the Police, Fire and Rescue Board meeting in November to a later date. Action Chief Officer Place/Democratic Services Report No. Report Title Submitted by: 8.13 The New Deal – Verity House agreement Executive Director Outline and Summary of Discussion This report advised members that the First Minster, Humza Yousaf, has signed a deal between the Scottish Government and Scotland’s local authorities, named as the Verity House Agreement after the headquarters building of CoSLA (Convention of Scottish Local Authorities) which represents all of Scotland’s councils. https://www.gov.scot/publications/new-deal-local-government-partnership- agreement/ Executive Director Place, Kevin Anderson presented this report highlighting the main sections and apologised for any typos contained within the report. Page 21 of 168
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Councillor Parry in noting the report commented on the signing of this agreement and that it was important that Midlothian finds the right balance in the shadow of this agreement. Decision The Council are invited to note the new deal signed between the Scottish Government and local authorities on 30 June, 2023. Report No. Report Title Submitted by: 8.14 Joint Working Group on Sources of Local Government Funding and Council Tax Reform (Council Tax Bands update) Executive Director Place Outline and Summary of Discussion Scottish Government launched a consultation in July 2023 on Council Tax. This report provides Council with the information on the consultation. Chief Officer (Acting) Corporate Solutions, Saty Kaur presented this report advising that this report was for noting and provided a brief outline of the main sections of the report and highlighting the consultation which is appended to the report. Councillor Smaill advised on his public objection to this and commented that he felt that this was not a valid consultation and outlined some of his reasons for this, he further advised that the working group did not have members from other parties therefore was no political debate on it and looks like it is just a tick box exercise. Councillor Parry advised that this was an important consultation and this consultation was supported by all council leaders from SNP, Labour and Conservative. Councillor Parry also advised that any changes would need to go through the Scottish Parliament and to reassure people watching that there was no decision being made on this today, this was a joint consultation between Scottish Government and COSLA. The Provost confirmed the importance of people knowing that this was a consultation and that it was not our consultation and gave reassurances that the council tax would not be increased due to any decision made here today, reconfirming it is all about consultation. Cllr Milligan also confirmed that it was a Scottish Government consultation in conjunction with the council leaders and was confused why group leaders agreed to this and provided an example of a similar situation and the outcome of that did not benefit the Council. He further advised that this does not just affect the big houses but houses in the council tax band E and higher and highlighted the disparity in streets for council tax bands and the unfairness of this. He further advised if councillors were asked if they supported this the answer would have to be no and especially during a cost of living crisis. Mr Anderson in responding to a question raised by the Provost with regards to properties in council tax band E advised that they do not collect those numbers. Page 22 of 168
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Councillor Imrie advised for clarity advised that this was (CoSLA) presidential team who were in negotiation/consultation with the Scottish Government about doing something about Council Tax. They came back with a report, then got leaders to sign off to go out for public consultation and did that on behalf of the 32 local authorities. He further advised there was no recommendations in this paper and it was only for noting but this could change substantially the amount of money people in band E and upwards would have to pay over and above any council tax rise that may be implemented next year. Councillor Imrie further advised on the revaluation of houses, the cost-of-living crisis and the council tax freeze for 10 years and this was not the right time to do this and rejected any changes to council tax and that the council tax should be looked at by all political parties as this needs to be replaced. There followed further discussion on the re-valuing of houses and extensions to buildings which is not reflected in the banding and that there has been no revaluation since 1991. Councillor Parry suggested that an appropriate officer put together a response from the council covering all the points raised today. Councillor McKenzie also commented on this being a consultation exercise and advised on council tax bands with single occupancy and also highlighted that there are supports in place regarding council tax. Councillor Virgo agreed that the council should put in a response collectively as well as individually and moved to propose this if there was enough time. Ms Kaur reminded members that this consultation was launched over the Summer term and that the information was sent out to members on how they could respond. Ms Kaur advised if the decision in the Chambers today was to work with members to come up with a council response, officers will do that but highlighted that the consultation closes on the 20 September so would look at completing this quickly and presenting to Council for signing off. After further discussion Councillor Virgo proposed that the council submit a response involving officers pulling the information together and holding a special council prior to the submission date of 20 September 2023 for this being ratified. Councillor Milligan seconded Councillor Virgo’s motion. On a vote being take 10 votes for the Motion and 7 against, the motion then became the decision of the Council. Decision The Council agreed that officers would work with Elected Members pulling together a council response to be submitted prior to 20 September 2023 and that a Special Council meeting will be held to sign off this response. Action Executive Director Place/Elected Members /Democratic Services Public meeting terminated at 13.07 pm Page 23 of 168
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9. Private Reports The meeting then moved to private consideration of the following reports: 9.1 Rullion Road, Penicuik – Land Acquisition – Report by Executive Director Place 9.2 Amendment to the Permanent Staffing Establishment – Report by Chief Executive. 10. Date of Next Meeting The next meeting will be held on Tuesday 10 October 2023 The meeting concluded at 13.32 pm Page 24 of 168
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Minute of Meeting Midlothian Council Date Time Venue 13 September 2023 13.00pm Council Chambers, Midlothian House Present: Provost McCall (Chair) Depute Provost Bowen (virtually) Councillor Parry (Council Leader) Councillor Cassidy – Depute Council Leader Councillor Alexander Councillor McManus Councillor Drummond Councillor McKenzie Councillor McEwan Councillor Pottinger Councillor Milligan Councillor Scott Councillor Russell Councillor Virgo (virtually) Councillor Winchester (virtually) Councillor Imrie Councillor Curran In attendance: Dr Grace Vickers, Chief Executive Kevin Anderson, Executive Director Place Morag Barrow, Joint Director Health and Social Care Fiona Robertson, Executive Director Children, Young People and Partnerships Alan Turpie, Legal and Governance Manager Myra Forsyth, Continuous Improvement Manager (virtually) Saty Kaur, Chief Officer Corporate Solutions (Acting) Michelle Strong, Education Chief Operating Officer Lorna Gilbert, HR Strategic Lead (virtually) Gary Leadbetter, Democratic Services Officer Linda Melville, Member Support Religious Representatives: Midlothian Council Tuesday 10 October 2023 Item No: 5.2 Page 25 of 168
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Anne-Theresa Lawrie 1. Welcome and Apology for Absence The Provost welcomed everyone to the Special Meeting of Midlothian Council, advising that this meeting is public and would be webcast live. Apologies were received for Councillor Smaill and Elizabeth Morton. 2. Order of Business As per the Agenda. 3. Declarations of Interest Alan Turpie, Legal and Governance Manager, explained that the Declaration of Interest is a three stage test as per the Code of Conduct: connection, interest and participation. Mr Turpie noted that the Standards Commission, in the Code of Conduct at paragraph 5.4, have expressly declared that being a Council Tax payer is not a connection in this regard and so at the first test there is no requirement to declare an interest in any matters regarding Council Tax. None. 4. Deputations None. 5. Minutes of Previous Meetings No Items for discussion. 6. Questions to the Leader of the Council None. 7. Notices of Motion None 8. Reports Item No. Report Title Report by: 8.1 Joint Working Group on Source of Local Government Funding Kevin Anderson, Executive Director Place Outline of Report and Summary of Discussion Saty Kaur, Chief Officer Corporate Solutions (Acting), presented the report noting that it follows Council’s consideration on Tuesday, 29 August 2023, of the Scottish Government’s consultation on Council Tax which was launched in July 2023. Following this consideration Council instructed officers to draft a response. This Page 26 of 168
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report provides Council with the information on the consultation and a draft response for consideration. Council are recommended to: • Note the information provided on the Scottish Government’s consultation on a fairer Council Tax; and • Agree the draft consultation response as at Appendix B. Councillor Parry noted her agreement with the responses and moved to submit the consultation response as outlined. Councillor Cassidy seconded. Councillor Milligan moved to amend the response in that Council instructs officers to respond to the consultation stating “Midlothian Council is opposed to the proposals and requests a fairer taxation system be considered and that a more equal distribution formula be implemented for local authority in the grant settlement.” Councillor Milligan states that this would ensure Midlothian Council receives its fair share, taking into account its projected growth. Councillor Imrie seconded. Councillor Imrie queried if the motion put forward by Councillor Milligan was to add the content of the motion to the response proposed by officers. Councillor Imrie further stated that the answer to question 1 of the consultation should be ‘no.’ Councillor Milligan, providing clarity, agreed that the answer to question 1 should be ‘no.’ The Provost queried if Councillor Parry was happy to accept the amendment proposed, given that she moved the consultation response. Councillor Parry confirmed but queried where the amendment proposed would sit within the consultation response. Kevin Anderson, Executive Director Place, noted that the proposed amendment could sit within the last question on the consultation response. Mr Anderson noted that the response is a structured submission, so noted the caveat is if the response to question 1 is “no,” this may not allow further questions to be answered. Mr Anderson stated officers will work around the formulaic position for the submission to allow the requests from Members to be accommodated. Alan Turpie, Legal and Governance Manager, noted that Councillor Parry had moved the report, with Councillor Milligan moving an amendment which was seconded by Councillor Imrie. Mr Turpie queried if the Council response should be as proposed by Councillor Milligan and seconded by Councillor Imrie. Councillor Parry noted that the agreement was that both she and Councillor Milligan were happy with the consultation response with the additional amendment. Mr Turpie confirmed his agreement with this. Decision Officers to amend the consultation response so that question 1 is answered “no” and that the amendment proposed by Councillor Milligan is included. Action Kevin Anderson, Executive Director Place Page 27 of 168
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Date of Next Meeting The next meeting will be held on Tuesday, 10 October at 11:00. The meeting concluded at 14:16. Page 28 of 168
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Midlothian Council Minute Volume Presented to the Meeting of Midlothian Council on Tuesday, 10 October 2023 Page 1 of 66Page 29 of 168
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1 Minutes of Meetings submitted for Approval 2 Minutes of Meetings submitted for Consideration Cabinet Minute of 30 May 2023 3 - 14 General Purposes Committee 28 March 2023_public 15 - 16 Planning Minute 16 May 2023 17 - 22 Police Fire and Rescue Board Minute of 15 June 2023 23 - 28 3 Minutes of Meetings submitted for Information Approved Minutes of Outside Organisations to which Council appoints representatives MIJB Minute of 22 June 2023 29 - 50 MIJB Audit and Risk minute of 28 June 2023 51 - 58 MIJB minute of 13 April 2023 59 - 66 Page 2 of 66Page 30 of 168
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Action Log No Subject Date Action Action Owner Expected completion date Comments 1 Motion - Infrastructure 14/12/2021 Report to Council Strategic Investment Framework Executive Director Place December 2023 Incorporate into the Capital Plan Prioritisation report as in Action No.4 2 Minute Action - CCTV 14/12/2021 To provide a report outlining an expansion of sites for CCTV Chief Officer Place October 2023 Phase 2 expansion needs further consideration with a report deferred to Council in Q2 2023/24. 3 Arm’s Length Company to Manage Industrial Sites in Midlothian 28/06/2022 Explore and outline process for creating an arm’s length company Chief Officer Place January 2024 To be included as part of the Commercialisation Strategy. Work is in progress to develop the strategy and expected to be presented to Council in Q3 2023/24. 4 Capital Plan Prioritisation 21/02/2023 Refer approved Council report to BTSG on additional affordability scope and projects. Executive Director Place August 2023 Updates regularly provided to BTSG with a series of thematic sessions to be scheduled and report due to Council before end of 2023. Midlothian Council Tuesday 10 October 2023 Item 5.4 Page 31 of 168
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No Subject Date Action Action Owner Expected completion date Comments 5 Tender Returns – Temporary Units (various) 21/03/2023 Councillor visit to temporary units Head of Development TBC Site visit being scheduled 6 Fees and Charges 2023 21/03/2023 Events Charging Policy to be presented to Council for consideration and approval Chief Officer Place Q2 2023/24 In progress – to be presented to Council by end 2023. 7 Midlothian Council Speed Policy Review 9/05/2023 Proposal for roads with other speed limits and an associated action plan for implementation Chief Officer Place TBC In progress 8 Financial Monitoring 2023/23 – General Fund Revenue 27/06/2023 Information on Non-Domestic Rates income to be circulated to all Members. Chief Finance Officer (Acting) August 2023 Recommended for closure – circulated prior to August 2023 Council 9 Beeslack Community High School and Penicuik Community High School 27/06/2023 Report back to Council on decant strategy and costs for Penicuik High School Executive Director Place December 2023 In progress 10 Standing Order 19.2 Decision – lease Burnbrae Road, Bonnyrigg 29/08/2023 Internal Auditors investigate the position of the retail unit at Burnbrae Road and that the Council are at no undue risk. An update is provided in private on the retail unit currently being constructed adjacent to this building in Buccleuch Street. Executive Director Place Executive Director Place TBC October 2023 Page 32 of 168
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No Subject Date Action Action Owner Expected completion date Comments 11 Midlothian House and Dalkeith Town Centre 29/08/2023 Briefing/Seminar to be held to further discuss the wider plan for Dalkeith Town Centre Executive Director Place TBC Incorporate into the Capital Plan Prioritisation workshop series 12 Fireworks Control Zones 29/08/2023 29/08/2023 Briefing/Seminar to be held on Fireworks Control Zones PFRB November meeting to be rescheduled Chief Officer Place Democratic Services November 2023 November 2023 Recommend for closure – briefing scheduled for 15 November 2023 Recommend for closure – rescheduled for 15 November 2023 13 Joint Working Group on Sources of Local Government Funding and Council Tax Reform (Council Tax Bands update) 29/08/2023 Officers would work with Elected Members pulling together a council response to be submitted prior to 20 September 2023 and that a Special Council meeting will be held to sign off this response. Chief Officer Corporate Solutions (Acting) September 2023 Recommended for closure – Special Council considered response on 13 September 2023 and response submitted prior to the deadline of 20 September 2023 Page 33 of 168
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Midlothian Council 10 October 2023 Notice of Motion Council notes with concern, CALA Homes proposal to close Old Craighall Rd for 12 weeks. Old Craighall Road is a major thoroughfare connecting several communities. A 12 week closure will not only cause major disruption to the local communities, but will also impact the local bus service and emergency service vehicles. Given the serious disruption the closure of this road will cause, Council agrees to refuse this request for a closure, and encourages CALA Homes to find an alternative solution. Moved: Cllr Stephen Curran Seconded: Cllr Margot Russell Page 35 of 168
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Midlothian Council Tuesday 10 October 2023 Item No 8.1 Scotland’s Census 2022: Rounded Population Estimates Report by Dr Grace Vickers, Chief Executive Report for Decision 1 Recommendations This report is for Decision. There are three recommendations: (a) Note the publication of the first census outputs in the form of Scotland’s Census 2022: Rounded Population Estimates (b) Note the ongoing analysis of this data and that a further report will be presented to the CPP Board and Council including further updates following the publication of additional census data in Spring 2024 (c) Write to the UK Government, Scottish Government and Cosla to ask that the 2022 Midlothian Population data be taken into account in respect of allocation for resource, capital and revenue funding and the updating of associated formula. 2 Purpose of Report/Executive Summary The purpose of this report is to draw members attention to the recently published Scotland’s Census 2022: Rounded Populations Estimates data. This is an initial report designed to draw members attention to this recent publication and notes that further analysis will be undertaken and that a detailed analytical report will be prepared and presented to the CPP Board and Council when available. Members are asked to note that further census information will be published by the NRS in spring 2024. Date: 21 September 2023 Report Contact: Dr Grace Vickers, Chief Executive Page 37 of 168
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2 3 Background Census day took place on 20th March 2022. On 14th September 2023, the first set of census outputs were published in the form of a document called Scotland’s Census 2022: Rounded Population Estimates: Scotland's Census 2022 - Rounded population estimates | Scotland's Census (scotlandscensus.gov.uk) Given the importance of this data in terms of planning services for our communities further analysis will be undertaken in response to this data set and also further data sets which are due to be published in Spring 2024. This report to Council is to draw members attention to the publication by way of an introduction to the first set of outputs and it intended to be used as an introduction to the early census data recognising that further in depth analysis will be published over the months ahead. 3.2 Population of Scotland On Census Day, 20 March 2022, the population of Scotland was estimated to be 5,436,600. This is the largest population ever recorded by Scotland’s Census. The population grew by 141,200 (2.7%) since the previous census in 2011. This is a slower rate of growth than between 2001 and 2011, when the population grew by 233,400 (4.6%). Since the 2011 census there were around 585,000 births and 634,800 deaths registered in Scotland. Without migration the population would have decreased by around 49,800. But the population has grown because more people moved to Scotland than moved out. There were 2,794,900 (51.4%) females and 2,641,800 (48.6%) males. This is similar to 2011 when the census showed 51.5% of the population was female and 48.5% was male. Figure 3 below compares the chages in population since the 1921 census. The outline drawn over the bars shows the population data from the 1921 census. From this illustration you can see that the 2022 age structure is much narrower at the bottom and wider at the top. This shows how Scotland's age structure has changed over time. Scotland has fewer young people and more older people in 2022.The main reasons for Scotland’s ageing population are: people born in the post-war baby boom getting older the number of births dropping since the 1960s people living longer Page 38 of 168
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3 Fig1:Population by age group and sex Source: Figure 3 – The Structure of Scotland’s Population is changing 3.2 Population of Midlothian The 2022 census highlights that Midlothian is the fastest growing local authority in Scotland at 16.1%. The 2011 census data lists Midlothian as having at population of 83, 187 which has risen to 96,600 in the 2022 census data. This level of growth is 2.3% higher than our previous calculation and is now 13.4% higher than the Scottish average of 2.7%: Figure 2: Population Change Source: Scotland’s Census 2022, Rounded Populations estimates. Figure 4 (14/9/23) In terms of households, Midlothian saw the highest percentage increase at 17.2% increase since the 2011 census: Figure 3: Scotland’s Households Source: Scotland’s Census 2022, Rounded Populations estimates. Figure 6 (14/9/23) Page 39 of 168
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4 Population density in Midlothian is 273.1 residents per square kilometre compared to the Scottish average of 69.8. Glasgow City has the highest at 3,554.5 and the Western Isles the lowest at 8.6. In Midlothian there is a total population of 96,600. 49,900 (51.7%) are female and 46,700 (48.3%) are male. In terms of age, the make-up of the Midlothian population is as follows: Age Midlothian Population (2022) % of Midlothian Population* (2022) 0-4 5,500 5.7% 5-9 6,000 6.2% 10-14 5,600 5.8% 15-19 4,800 5% 20-24 4,700 4.9% 26-29 5,500 5.7% 30-34 7,000 7.2% 35-39 6,800 7% 40-44 6,300 6.5% 45-49 5,900 6.1% 50-54 6,900 7.1% 55-59 6,800 7% 60-64 6,300 6.5% 65-69 5,200 5.4% 70-74 5,000 5.2% 75-79 3,900 4% 80-84 2,300 2.4% 85-89 1,300 1.3% 90+ 600 0.6% Table 1: Midlothian Population by age (2022). *% totals rounded up to one decimal point Page 40 of 168
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5 3.3 Further data, in the form of statistical tables can also be accessed at the following link: Scotland's Census 2022 - Rounded population estimates - data | Scotland's Census (scotlandscensus.gov.uk) 4 Report Implications (Resource, Digital and Risk) 4.1 Resource The significant growth in Midlothian (16.1%) highlighted by this report will have significant resource implications. Therefore further analysis will be conducted in response to this initial data and also the further data due to be published in Spring 2023 in order to plan future service provision. The report also recommends to Council that we write to the UK Government, Scottish Government and Cosla requesting that our population is take into account with regards funding and resource allocation. 4.2 Digital Increased reliance and investment in digital solutions and digital first solutions will be a key element of future plans. 4.3 Risk Good governance requires that up to date data is used when planning service delivery and to inform service budgets. This report outlines that Midlothian is the fastest growing local authority in Scotland which represents significant strategic opportunity but also strategic risk if funding does not take into account our rapid growth. 4.4 Ensuring Equalities Further analysis is required to understand the population data as presented in this set of statistics and the report notes that further analysis will also be conducted in response to the further statistics due to be published in spring 2024. A 4.5 Additional Report Implications See Appendix A Page 41 of 168
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6 APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan The information in this report will be analysed and a further report will be presented to the CPP Board given the significance of the data contained in this publication. A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based X Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value The report provides some introductory information only and the report notes the ongoing analysis which is currently being undertaken. A.5 Involving Communities and Other Stakeholders The information in this report will be analysed and a further report will be presented to the CPP Board given the significance of the data contained in this publication. A.6 Impact on Performance and Outcomes This report introduces members to the initial data following the publication of the 2022 census data for Scotland. It highlights that Midlothian continues to be the fastest growing local authority (16.1%). A.7 Adopting a Preventative Approach Page 42 of 168
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7 The information in this report will be analysed and a further report will be presented to the CPP Board given the significance of the data contained in this publication. A.8 Supporting Sustainable Development The scale of growth reported presents significant challenges in terms of sustainable development and a further report will be presented following full analysis of the statistical data and in response to further data due to be published in spring 2024. Page 43 of 168
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Midlothian Council Tuesday 10 October 2023 Item No 8.2 Medium Term Financial Strategy – 2024/25 to 2028/29 Report by David Gladwin Acting Chief Financial Officer Report for Information 1 Recommendations a) Note that the Business Transformation Steering Group (BTSG) will continue to consider measures necessary to support delivery of a balanced Medium Term Financial Strategy (MTFS) before any policy measures are presented to Council. b) Note that the financial outlook remains challenging for this term of Council and note the recommendation of the external Auditor that, “as a matter of urgency, officers and elected members need to work together to develop and agree the medium-term financial strategy and progress the Council’s transformation plans”. c) Note the update on Scottish Government grant prospects and ongoing pay negotiations for the current financial year. d) Note the MTFS planning assumptions set out in the report. e) Note that the budget gap for 2024/25, incorporating the planned use of service concession retrospection and a 3% Council Tax increase is projected to be £7.272 million, rising to a projected £34.677 million by 2028/29. f) Note the urgent need to finalise savings proposals, many of which will involve extremely difficult choices, to achieve equilibrium between expenditure and income; and g) Otherwise note the remainder of the report. Date: 21 September 2023 Report Contact: David Gladwin Acting Chief Financial Officer David.gladwin@midlothian.gov.uk Page 45 of 168
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2 2 Purpose of Report / Executive Summary 2.1 The report sets out the outcome of the most recent review of the Council’s financial planning assumptions pointing to an increased budget gap of £7.272 million in 2024/25 rising to £34.677 million by 2028/29. 2.2 Pressure on budgets across Local Government is severe and as the fastest growing Local Authority in Scotland the position is intensified in Midlothian. Recently published census information showed a 16.1% population growth in Midlothian between 2011 and 2022. This was 3.4% more than the 2nd highest growth figure with sustained growth seen in the Central belt. 2.3 There is a significant funding gap that will impact on what services the Council can continue to deliver and how they are delivered. Reprioritisation and redesign is crucial to balancing the MTFS and urgent action is needed. 3 Medium Term Financial Strategy 2023/24 to 2027/28 - Background 3.1 The aim of the MTFS is to provide a multiyear financial strategy aligned to the Council’s Strategic Plans. It seeks to support the Council in fulfilling its statutory duty to set a balanced budget and determine Council Tax levels annually with a key aspect being ongoing financial sustainability for the Council where recurring costs are matched by recurring income. 3.2 Council last considered the MTFS on 21 February 2023 where a range of measures were approved to balance the 2023/24 budget with Council Tax for the year set at a Band D rate of £1,514.73, a 5% increase on the 2022/23 level. Measures included non-recurring elements of a £1.166 million use of covid recovery reserve and a £4.093 million use of backdated service concession savings. 3.3 Council on 27 June 2023 approved the Council Transformation Blueprint. The five themes are: • Following the Money. • 21st Century Workforce. • Commercialisation and Income Generation • Workplaces of the Future. • Multi-Agency Transformation. Page 46 of 168
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3 3.4 Work on the blueprint will mainly involve a series of short and focused projects, described as sprints, to be phased over several years. The sprints shown below are underway and outcomes will be reported to members, through BTSG, in the coming months. The eight sprints that have commenced are: • Theme 1 – Following the Money o Commissioning, including the % spend in Midlothian. o Contract Management. o Transport Review. • Theme 2 – 21st Century Workforce o Developing the roles which move away from silo-based working to the delivery of joined-up services in “One Stop Shop” hubs. • Theme 3 – Commercialisation and Income Generation o Advertising and Marketing. o Holiday Programmes. o Sports and Creative Arts. • Theme 5 – Multi-Agency Transformation. These sprints pick up the majority of savings proposals presented to Council during 2023/24 budget deliberations but not supported by Members at that time. Theme 4 – Workplaces of the Future does not have any sprints in the first phase. Potential Revenue raising measures 3.5 Devolution of Non-Domestic Rates Empty Property Relief (EPR) provides Councils with power to end or reduce existing discounts for buildings that have been empty for six months. Officers are currently scoping this. 3.6 A Scotland-wide consultation on Council Tax for second homes and empty properties closed on 11th July 2023. This may give rise to additional income depending on the extent of changes permitted and the effectiveness of bringing properties back into use. 3.7 Consultation on Council Tax Multipliers closed this week with potential revisions to existing Council Tax multipliers of between 7.5% (band E) and 22.5% (band H). Implementation would be Scotland-wide with the decision out with the Council’s direct control. If this was implemented from 24/25 on an equal phased basis for three years approximately £1.2 million additional Council Tax per annum would be raised but there may be a dampening impact through calculation of Scottish Government Grant. Page 47 of 168
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4 4 Budget Projections 4.1 The Transformation Blueprint provided Members with an update on MTFS projections showing a budget gap of £29.121 million through to 2028/29. Projections have been updated to reflect decisions taken by Council in June and in August 2023 and are shown in table 1 below. Table 1: MTFS Projected Gap to 2028/29 2024/25 £m 2025/26 £m 2026/27 £m 2027/28 £m 2028/29 £m Opening Budget Gap 0.000 7.272 12.545 17.651 23.602 Use of Covid Funding to mitigate savings shortfall 1.166 Retrospective Service concessions 4.093 4.093 4.093 4.093 4.091 Revised Opening Budget Gap 5.259 11.365 16.638 21.744 27.693 Funding for 23/24 pay costs met from 22/23 cross year flexibility (2.5% in 23/24 budget, SG funding assumption of 3%) 0.873 Revised Opening Budget Gap 6.132 11.365 16.638 21.744 27.693 Pay Inflation (3%) 5.817 5.991 6.171 6.356 6.547 Utilities and other Contractual inflation 2.199 2.125 2.161 2.199 2.238 Containment of MIJB funding at Flat Cash (1.241) (1.271) (1.307) (1.345) (1.383) School Demographics 2.000 2.000 1.000 1.000 1.000 Loan Charges 5.255 2.370 1.434 1.749 2.758 In-year Service Concession impact (0.188) (0.209) (0.222) (0.232) (0.249) Destination Hillend Net Income (0.919) (1.413) 0.133 (0.028) (0.016) VAT on Leisure income (0.400) 0.000 0.000 0.000 0.000 Scottish Government Grant - funding for pay (otherwise flat cash) (2.012) 0.000 0.000 0.000 0.000 Council Tax Band D number increase (1.391) (1.354) (1.394) (1.436) (1.479) Lothian Buses Dividend 0.000 0.000 (0.450) 0.000 0.000 Other costs 0.065 (0.030) (0.033) (0.029) (0.033) Gap 15.317 19.574 24.131 29.978 37.076 Full year impact of 23/24 approved savings measures (1.980) (0.867) (0.212) 0.000 0.000 Council Tax Rate increase (3%) (1.972) (2.069) (2.175) (2.285) (2.399) Retrospective Service Concessions (4.093) (4.093) (4.093) (4.091) 0.000 Budget Gap to be addressed 7.272 12.545 17.651 23.602 34.677 4.2 Projections are based on some key planning assumptions which will undoubtedly change due to economic factors, Scottish Government funding decisions, pay awards and local cost pressures. The main assumptions included in the figures above are: • A flat cash Scottish Government Grant settlement to support existing services and an assumption that any new or enhanced Scottish Government policy requirement will be fully funded. A 1% increase in Scottish Government Grant would yield approximately £1.9 million. Page 48 of 168
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5 • Pay Inflation – 3% for all years. This is based on the working assumption for 2023/24 that Councils will fund 3% of any pay offer to employees with the Scottish Government providing funding for the remaining costs. Every 1% equates to approximately £2m of cost. • A continuation of the Employers Superannuation contribution rate (excluding Teachers) at 22.2%. The results of the triennial revaluation of Lothian Pension Fund are imminent and may provide opportunity to reduce contribution rates in the short term whilst preserving the longer-term funding objectives of the Fund. • Council Tax Band D – assumed 3% increase. Every subsequent increase of 1% will generate approximately £0.650m of additional income. • Inflation provision for contracts where inflation uplifts are an integral part. • Inflation provision for areas of spend where there is high inflationary pressure. • Provision for demographic growth in learning settings. • Borrowing costs in-line with the most up to date approved version of the General Services Capital Plan. • Full delivery in 2024/25 of savings measured approved by Council as part of the 2023/24 budget. • Flat cash funding (excluding any ring-fenced additional Scottish Government funding) for Midlothian Integration Joint Board. 4.3 These assumptions will all be reviewed and updated as we move through the budget process and Members will be updated on a regular basis. 4.4 It is likely that savings emanating from the Transformation Blueprint will not be sufficient, at least in the short-term, to plug budget gaps. To enhance options available to Members and to minimise any reliance on one-off measures, additional Directorate led savings measures may need to be developed at pace. 4.5 Consideration can also be given to extending some existing spending control measures beyond non-essential spend and vacancies. Limiting areas of actual spend to match external funding for certain policy initiatives or asking service managers to preserve any areas of service underspend are two further options available. Page 49 of 168
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6 5 Scottish Government Funding 5.1 The Scottish Government published its Medium Term Financial Strategy on Thursday 25th May 2023. This is a five-year look ahead at the trajectory for Scotland’s public spending and government spending priorities with forecasts produced by the Scottish Fiscal Commission. Parliamentary committees are now in the pre-budget scrutiny phase in advance of publication of the 2024/25 Scottish Government budget later this year, possibly in December. It remains unknown when Councils will be advised of funding through the Local Government Finance Settlement. Initial figures are normally provided in December with near final figures late-January the following year. 5.2 It is clear from commentary that the Scottish Government face a challenging public finance outlook, particularly in 2024/25, driven by rising demand and cost pressures. Scottish Government / COSLA Partnership Agreement 5.3 On 30th June 2023 COSLA and the Scottish Government signed a new Partnership Agreement (the Verity House Agreement) setting out a vision for a more collaborative approach to delivering a number of shared priorities. The agreement includes a commitment to improved budgetary engagement and specifically agreement, by September 2023, of a principle-based fiscal framework between the Scottish Government and Local Government. A joint review of ring-fenced grants and in-year transfers to Local Government will also be undertaken by October 2023 with a view to identifying those funding streams which can be baselined in core grant from 2024/25 thus creating more local freedom and flexibility to address priorities. Programme for Government 5.4 On 5th September the Scottish Government published their Programme for Government which sets out three missions: • Equality: Tackling poverty and protecting people form harm. • Opportunity: Building a fair, green and growing economy. • Community: Delivering efficient and effective public services. 5.5 Whilst Scottish Government spend will focus on these missions and some have a very clear link to Council budgets, like expanding access to high quality funded childcare and increasing investment in the social care sector, it is too early to understand any direct impact on the Council’s MTFS. Publication of the Scottish Budget later this year will provide a much clearer picture. 6 Next Steps 6.1 Engagement Public engagement will take place at the appropriate point on new savings options with the outcome reported back to Council. Engagement will continue throughout with recognised Trade Unions. Page 50 of 168
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7 6.2 Outline Timetable for the 2024/25 Budget and Setting Council Tax Council – Tuesday 10th October • MTFS Update (this paper) • Transport Policy BTSG – Thursday 9th November • Update on Transformation Blueprint sprints • Discussion on further savings measures • Update on MTFS projections Council – Tuesday 21st November • BTSG recommendations BTSG – Monday 4th December • Update on Transformation Blueprint Sprints • Consideration of further savings measures • Update on MTFS projections • Commentary on Scottish Government Budget (if possible) Council – Tuesday 19th December • BTSG recommendations • Update on MTFS projections / Base Budget work • Commentary on Scottish Government Budget • Commentary on Local Government Finance Settlement (if possible) BTSG – Tuesday 16th January • Presentation of options stemming from Transformation Blueprint Sprints • Consideration of further savings measures • Update on Base Budget (near final gap) • Commentary on Local Government Finance Settlement BTSG – Thursday 8th February • Consideration of final budget savings options • Consideration of Council Tax position • Final Base Budget • Final Local Government Finance Settlement Council – Tuesday 27th February • BTSG recommendations on savings options • BTSG recommendation on Council Tax. The scheduled meetings of the Business Transformation Steering Group and Council will support the approval of the MTFS and decisions required to finalise the 2024/25 budget at Council on 27th February 2024. Page 51 of 168
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8 As Council Tax funds the gap between expected income and expenditure, it is necessary to first identify the proposed expenditure to determine the resulting gap that Council Tax needs to fund. If no other action is taken to redress any shortfall, then the Council Tax has to be set at a rate that will do so, otherwise the budget will not balance. Accordingly, Council Tax decisions cannot be taken in advance of other budget decisions. 6.3 Midlothian Integration Joint Board The Chief Officer and Chief Financial Officer of the Midlothian Integrated Joint Board (MIJB) will be kept updated on the Council’s budget position and will be engaged in the development of the MTFS. The planning assumptions for the indicative budget to be delegated to MIJB for 2024/25 together with future years indicative allocations have been prepared on the basis of the minimum requirements set out by Scottish Government in previous years. That being, the 2024/25 budget should be no less than the 2023/24 recurring budget plus the IJB’s share of new monies provided in 2024/25. However, it will only be possible to formulate a formal offer for the IJB once the annual grant settlement is available and the quantum of any additional monies for delegated activities and any conditions attached to the settlement are known. MIJB is projecting a £7.871 million overspend at Quarter 1 of 2023/24 and will face further financial pressure if there is a continued expectation that the full cost of pay inflation is met without any additional funding. BTSG will be asked to consider the formal offer arising from the settlement when it meets in January 2024 and this will inform part of the final budget recommendations to Council. 7 Report Implications (Resource, Digital and Risk) 7.1 Resource Whilst this report deals with financial issues there are no financial implications arising directly from it. 7.2 Digital The adoption of digital solutions is a central strand of the Medium Term Financial Strategy. Page 52 of 168
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9 7.3 Risk Within any financial projections there are inherent risks in making assumptions to arrive at figures and also a risk of costs changing significantly or new pressures emerging. The following key risks and issues are highlighted in the context of this report: • Uncertainly over the Scottish Government’s and Council’s financial position. • The economic outlook and decision by Scottish Government on future years grant settlements and grant distribution. • Impact of UK Government budget announcements and any associated policy revision. • The risk to service provision and service users associated with a continued decline in available resources to fund services. • Future years Public Sector pay policy and current and future year pay award settlements. • Actual school rolls varying from those provided for in the budget. • The impact of the wider economic climate on range of factors including: inflation, interest rates, employment, tax and income levels and service demands. • Cost pressures, particularly demographic demand, exceeding budget estimates. • The reform of public services and the implications for the National Care Service (Scotland) Bill. • The impact of any changes to benefits. • The cost of implementing national policies varying from resources provided by Government. • Potential liabilities arising from historic child abuse. • The financial sustainability of MIJB. • The affordability of borrowing to support capital investment; and • Ability to continue to meet the expectations of communities within a period of fiscal constraint. Developing and updating a MTFS is key to support the mitigation of a number of these risks by setting out the key assumptions on which forward plans are based. The risk of not having a balanced MTFS is the potential elimination of available reserves, which in turn would severely limit the Council’s ability to deal with unforeseen or unplanned events and also the imposition of significant cuts at short notice with limited opportunity for consultation. Early agreement of the measures required to balance the 2024/25 budget is crucial. Page 53 of 168
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10 7.4 Ensuring Equalities The MTFS together with the resource allocation measures which will support financial sustainability will, as far as the constraint on resources allow, be developed within the context of the Council’s priorities, ensuring as far as possible that resources are directed towards the key priorities of reducing inequalities in learning, health and economic circumstance outcomes. The MTFS will continue, as far as is possible, to reflect Midlothian Council’s commitment to the ethos of the Equality Act 2010 with careful consideration of the interests of the most vulnerable in our communities through the preparation of equality impact assessments. Individual EQIA’s will be published in respect of future policy savings measures and an overarching EQIA will be published alongside the MTFS report presented to the Council meeting in February 2024. 7.5 Additional Report Implications See Appendix A Appendices APPENDIX A – Report Implications Page 54 of 168
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Appendix A A.1 Key Priorities within the Single Midlothian Plan The MTFS facilitates decisions on how Council allocates and uses its available resources and as such has fundamental implications for delivery of the key priorities in the Single Midlothian Plan. It helps ensure that resources are available to continue to delivery key priorities. A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value The report does not directly impact on delivering Best Value. A.5 Involving Communities and Other Stakeholders The development of the MTFS provides for public engagement. In addition, there has been and will continue to be, engagement with the recognised Trade Unions on the Council’s financial position and the development of the MTFS. A.6 Impact on Performance and Outcomes The MTFS facilitates decisions on how the Council allocates and uses its available resources and as such has fundamental implications for service performance and outcomes. The financial consequences of the pandemic have impacted on the availability and allocation of resources in pursuit of key outcomes as set out in the Single Midlothian Plan for both the immediate and longer term and therefore the ability of the Council to continue to deliver services in a financial sustainable manner. Page 55 of 168
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12 A.7 Adopting a Preventative Approach An effective Strategic plan supported by a MTFS will support the prioritisation of resources to support prevention activities. A.8 Supporting Sustainable Development There are no direct sustainability issues arising from this report and work will take place to mitigate any sustainability issues which arise as a consequence of the MTFS Page 56 of 168
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Midlothian Council Tuesday 10 October 2023 Item No 8.3 Midlothian Strategic Housing Investment Plan 2024/25 - 2028/29 Report by Kevin Anderson, Executive Director - Place Report for Decision 1 Recommendations Council is recommended to approve the Strategic Housing Investment Plan (SHIP) 2024/25-2028/29, which will be submitted to the Scottish Government in October 2023 to meet the required dateline, subject to approval by Council. 2 Purpose of Report/Executive Summary This report summarises the key points set out in Midlothian’s Strategic Housing Investment Plan (SHIP) 2024/2025-2028/29, which details the priorities for investment in new affordable housing in Midlothian. Date: 10 October 2023 Report Contact: Fiona Clandillon, Head of Development email: fiona.clandillon@midlothian.gov.uk Page 57 of 168
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2 3 Background/Main Body of Report 3.1 The Scottish Government requires all local authorities to prepare a SHIP that identifies the main strategic investment priorities for affordable housing over a five-year period. This important document is required on an annual basis as the Scottish Government requires detail on the Affordable Housing Supply Programme in each regional area towards meeting the national target of supporting the development of 110,000 new affordable homes. 3.2 The delivery of more affordable housing remains a high priority for Midlothian Council; 864 properties were completed in phase one of the Council’s new social housing programme; 489 in phase two; 645 expected on completion of phases three and four; and an additional 327 are funded for delivery in phase five. 3.3 While the SHIP sets out an increase in the number of lettings, in part as a result of Midlothian Council’s most recent new build programme, it also records a 14% increase in the number of households on the waiting list between 2021 and 2023. Despite significant levels of investment in new housing, there is still a shortage against the demand for affordable housing in Midlothian with 4,468 households now on the Council’s Housing List. 3.4 Midlothian Council has 14 projects named in the SHIP which are not yet on site. Partner Registered Social Landlords (RSLs) have an additional 30 projects listed in the SHIP. Some of these projects contain several phases of development, each having its own prioritisation and SHIP entry. 3.5 A total of £169.140 million of Scottish Government grant funding (and Charitable Bond funding) would be required by the Council and RSLs to deliver the identified units over the next five years. This is an increase of £41.62 million from the previous Strategic Housing Investment Plan. This rise is attributable to the increased level of grant that the Scottish Government is making for each affordable home (see SHIP Section 4.1). 3.6 The number of Midlothian Council new build properties to be built over the course of the SHIP is 832 with an additional 80 properties bought via the Open Market Purchase Scheme. The number of RSL new build properties planned over the same period is 1,203. Overall, the SHIP will deliver 2,115 affordable homes to the Midlothian area. The table below illustrates that the Midlothian Council Affordable Housing Programme has reduced since last year’s SHIP, while the programmes reported by the Registered Social Landlords has increased and overall SHIP numbers have reduced by only 36 units. Page 58 of 168
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3 Table 1: Changes re SHIP 23/34 and SHIP 24/25 Midlothian Council New Build Programme Registered Social Landlord(s) New Build Programme Total number of new build affordable homes (MC + RSLs) SHIP 2023/24 - 2027/28 927 1158 2071 SHIP 2024/25 - 2028/29 832 1203 2035 3.7 The SHIP contains information about Mid-Market Rent (MMR), a type of affordable housing with rents being lower than in the private market, but higher than in the social housing sector. Midlothian officers plan to present to council a mixed tenure strategy that will consider if and how MC can deliver MMR in order to increase the number of affordable homes beyond those already planned via the traditional social housing option. 4 Report Implications (Resource, Digital and Risk) 4.1 Resource It is anticipated that the Scottish Government will part-fund these homes through grant provided via the Affordable Housing Supply Programme. Grant levels were uplifted in 2023 by approximately 31.6% which helped to mitigate rises in inflation associated with the cost of materials and labour. The ability to deliver the Affordable Housing Programme relies on continuing to receive appropriate levels of grant from the Scottish Government. Midlothian Council’s Strategic Local Programme Agreement with the Scottish Government is presently scheduled to finance 60% of the grant required, therefore approval may be required to forward fund until further grant is available. Those elements not funded by grant are funded through the Housing Revenue Account, where delivered by Midlothian Council, or through affordable housing RSL partners. 4.2 Digital N/A 4.3 Risk If the Council does not support the development of new affordable housing, the level of housing need will increase with negative consequences for Midlothian’s communities. Page 59 of 168
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4 4.4 Ensuring Equalities (if required a separate IIA must be completed) Equality is central to all housing and housing services delivery. An Integrated Impact Assessment (IIA) has been undertaken on the Local Housing Strategy 2021-26 to ensure that the needs of local communities have been fully considered. The SHIP reflects identified needs and draws on findings from the IIA when considering the implications flowing from the translation of strategic aims into housing policies. 4.5 Additional Report Implications (See Appendix A) See Appendix A Appendices Appendix A – Additional Report Implications Appendix B - Strategic Housing Investment Plan 2024/25 -2028/29 Appendix C - Tables Page 60 of 168
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5 APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan This Strategy aligns with Midlothian’s Single Midlothian Plan and with corporate priorities. A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern x Sustainable Transformational x Preventative x Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you x Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value N/A A.5 Involving Communities and Other Stakeholders Extensive consultation was carried out for the Local Housing Strategy involving the input of key stakeholders, including local organisations such as housing associations and private landlords as well as the wider community. During consultation, it was widely recognised that investment in affordable housing a key priority. All developing Housing Associations have discussed their development plans with Council Officers. Private sector developers were also given the opportunity to discuss their future development plans with Council Officers. Page 61 of 168
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6 A.6 Impact on Performance and Outcomes The SHIP supports the following Local Housing Strategy (LHS) Outcomes, these are: • Households have improved housing options across all tenures. • Homeless households and those threatened with homelessness are able to access support and advice services and all unintentionally homeless households will be able to access settled accommodation. • The condition of housing across all tenures is improved. • The needs of households with particular needs will be addressed and all households will have equal access to housing and housing services. • Housing in all tenures will be more energy efficient and fewer households will live in or be at risk of fuel poverty. A.7 Adopting a Preventative Approach Setting out a programme for development in the SHIP enables the investment of affordable housing to be carried out in a balanced approach in order that any investment takes into account the needs of the community. This includes those with particular needs such as extra care housing for older people, wheelchair housing or those with complex physical or learning disabilities where provision of suitable housing would require less resourcing in comparison to traditional models of care. A.8 Supporting Sustainable Development All new build homes in the Strategic Housing Investment Plan 2024/25- 2028/29 are scheduled to meet greener standards for the first time. 191 of these will be Midlothian Council Passivhaus properties. Page 62 of 168
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1 Midlothian Council Strategic Housing Investment Plan 2024/25 - 2028/29 Page 63 of 168
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2 Front page photographs Top: Completed homes by Midlothian Council in Bonnyrigg Bottom: Completed homes by Melville Housing Association in Bilston Page 64 of 168
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3 Contents 1 Introduction and Strategic Links ................................................................................................. 5 Housing to 2040 ................................................................................................................ 5 Local Housing Strategy ..................................................................................................... 5 Rapid Rehousing Transition Plan ...................................................................................... 5 Local Child Poverty Action Report ..................................................................................... 5 2 Profile of Midlothian ..................................................................................................................... 6 Housing Market Areas (HMAs) .......................................................................................... 6 Housing Tenure in Midlothian ............................................................................................ 7 Social Housing Demand .................................................................................................... 7 Affordable Housing Development in Midlothian ............................................................... 10 Open Market Purchases .................................................................................................. 11 Open Market Shared Equity ............................................................................................ 12 Mid-Market Rent (MMR) .................................................................................................. 12 3 Partnership Working .................................................................................................................. 13 Health and Social Care .................................................................................................... 14 Local Housing Strategy 2021-2026 .................................................................................. 14 Edinburgh and South East Scotland City Region Deal ..................................................... 15 Edinburgh & South East Scotland Housing Demonstrator Programme ............................ 15 Midlothian’s Rapid Rehousing Transition Plan ................................................................. 16 Town Centre Regeneration .............................................................................................. 17 4 Investment Priorities and Resources ...................................................................................... 18 Council Development Priorities ........................................................................................ 19 RSL Development Priorities ............................................................................................. 21 Addressing Potential Development Constraints ............................................................... 23 Scottish Government Affordable Housing Supply Funding Required ............................... 23 Disposal of Council Assets and Land .............................................................................. 24 Commuted Sums ............................................................................................................. 24 Empty Homes, Second Homes and Council Tax Discounts ............................................. 24 Gypsy Traveller Accommodation ..................................................................................... 26 Wheelchair Accessible Housing Targets .......................................................................... 26 Non-Traditional Financial Models of Development ........................................................... 26 5 Housing Infrastructure Fund ..................................................................................................... 27 6 Conclusion ................................................................................................................................... 28 Equality Impact Assessment (EIA) and Strategic Environmental Assessment ................. 28 Page 65 of 168
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4 Appendix 1: SHIP Project Tables .................................................................................................... 29 Page 66 of 168
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5 1 Introduction and Strategic Links Housing to 2040 In March 2021, the Scottish Government published its first long-term housing strategy ‘Housing to 2040’ which set an ambition to deliver a further 110,000 affordable homes by 2032, with at least 70% of these for social rent. Meeting this target is ambitious and will require increased investment by the Scottish Government, Local Authorities and Registered Social Landlords and a step change in the pace of housebuilding in order that it is achieved. The delivery of more affordable housing remains a high priority for Midlothian Council, as reflected by our ongoing and ambitious development programme in Midlothian. Local Housing Strategy The purpose of Midlothian’s Strategic Housing Investment Plan (SHIP) is to set out strategic investment priorities for affordable housing over a five year period to achieve the outcomes set out in the Local Housing Strategy (LHS). The SHIP priorities are clearly aligned with the LHS Outcomes Action Plan 2021-2026 which can be accessed here: Housing strategy and performance | Midlothian Local Housing Strategy 2021-2026 Rapid Rehousing Transition Plan The strategic housing priorities of the SHIP are aligned and consistent with the priorities and outcomes within the Rapid Rehousing Transition Plan and the annual updates to the document. The latest Rapid Rehousing Transition Plan can be found here: www.midlothian.gov.uk/rapid-rehousing-plan The SHIP is the key document for identifying strategic housing projects towards meeting the Government’s 110,000 affordable housing target. This document is updated annually to present up to date information on affordable housing investment plans. The SHIP provides an opportunity for the Council to: • Set out investment priorities for affordable housing and identifies how these will be delivered; • Identify the resources required to deliver these priorities; and • Involve key partners in the delivery of new affordable housing. The SHIP will continue to inform the allocation of resources from the Scottish Government’s Affordable Housing Investment Programme, which primarily supports the delivery of affordable housing via the Council and Registered Social Landlords. In addition, other funding streams that support investment in affordable housing have also been evaluated. Local Child Poverty Action Report The latest report, published in 2022, notes that 24% of children in Midlothian are living in poverty. A target has been set to reduce this level to fewer than 10% of children living in relative poverty by 2030. A key driver for reducing the level of poverty is Page 67 of 168
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6 reducing the cost of living for families. The Strategic Housing Investment Plan will support this by increasing the total number of affordable homes in Midlothian. For many households this will result in significantly reduced rental payments and an improved quality of life, for example, by alleviating overcrowding in a household and providing a home which costs less to heat. The SHIP is aligned with the strategic housing priorities of the Midlothian Local Child Poverty Action Report. Key progress delivered as a result of the SHIP for low income families will be captured within the Local Child Poverty Action Report 2023 which is due in September 2023. 2 Profile of Midlothian Housing Market Areas (HMAs) Midlothian is situated within the Edinburgh and South East of Scotland City Region area and is therefore influenced by the wider region in terms of where households choose to live and work. The table below shows the two HMAs along with their corresponding towns and villages, while the map shows the geographical spread of the HMAs. The Midlothian West (A) HMA is denoted in purple while the Midlothian East (B) HMA is denoted in blue colour. Table 2.1: Main Settlements in Housing Sub Market Areas Midlothian West (A) Penicuik, Loanhead, Bilston, Roslin, Straiton, Auchendinny Midlothian East (B) Dalkeith, Bonnyrigg, Gorebridge, Rosewell, Mayfield, Easthouses, Pathhead, Newtongrange, Danderhall/Shawfair Figure 2.1: Map showing Midlothian Housing Sub Market Areas The Housing Market Areas are the core development areas in Midlothian which concentrates new development in Midlothian on: Page 68 of 168
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7 • The A701 Corridor • The A7/A68/ Borders Rail Corridor • Shawfair Most of the affordable housing units to be delivered are in the Midlothian East area, largely due to the population, and therefore housing need being greater in this housing market area. The Danderhall/Shawfair area will see a significant level of new development with an allocation of land for around 4,000 houses and a town centre including a supermarket and school provision. The initial new sites for development have been completed with further sites under construction. Housing Tenure in Midlothian The most common housing tenure in Midlothian is owner occupied housing (67%) followed by social rented housing by the council or housing association (24%). In addition private rented homes comprise 9% of the housing stock.1 Social Housing Demand An analysis of social housing in Midlothian shows: • There are 7,121 Council homes in Midlothian. The majority of stock has two bedrooms (3,949 homes), followed by properties with three bedrooms (1,888 homes). There are fewer properties with one bedroom (953 homes) and 4 or more bedrooms (326 homes). • There are currently 3,416 RSL properties in Midlothian. Table 2.2 below, shows how many properties each landlord has. • There is a low demand for Midlothian Council homes with three and four bedrooms. One- and two-bedroom properties are most in demand from those on the housing list (19% and 64% accordingly) whilst only 17% of applicants require 3 and 4 bed homes (12% and 5% accordingly). Table 2.2: Number of Registered Social Landlord (RSL) properties in Midlothian2 Registered Social Landlord (RSL) Number of properties Melville Housing Association 2010 Castle Rock Edinvar Housing Association 1075 Bield Housing Association 116 Dunedin Canmore Housing Association 98 Trust Housing Association 35 Viewpoint Housing Association 34 Blackwood Housing Association 23 Link Housing Association 20 Ark Housing Association 5 Total 3416 1 Scottish House Condition Survey: Local Authority Analysis 2017-2019 - gov.scot (www.gov.scot) 2 Scottish Housing Regulator July 2023 Page 69 of 168
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8 Chart 2.1 below illustrates the low demand for larger family homes in Midlothian; just 5% of waiting list applicants require a property with four or more bedrooms. Midlothian Council recognises the recommendations within the Scottish Government’s ‘Best Start, Bright Futures: tackling child poverty delivery plan 2022 to 2026’3 which states that ‘we will place the prioritisation of tackling child poverty at the heart of the Affordable Housing Supply Programme through further strengthening our housing planning processes to strengthen the focus on housing needs by size and location to ensure that larger family homes are delivered where they are required, including through the targeted purchase of appropriate ‘off the shelf’ properties’. Midlothian Council will continue to deliver new homes which focus on the housing needs of waiting list applicants by size and location. The Open Market Purchase Scheme also targets homes of a particular size and location when required. Chart 2.1: Waiting list demand by bedroom size Chart 2.2 below, shows the number of council lets in recent years. It shows that between 2015/16 and 2022/23 allocations have increased by 59% due to changes to the Housing Allocation Policy, new build completions and the Open Market Purchase Scheme. Whilst tenancy turnover remains low, it is expected that the annual number of lets will increase significantly in future years as a result of the new build programme. 3 Executive Summary - Best Start, Bright Futures: tackling child poverty delivery plan 2022 to 2026 - gov.scot (www.gov.scot) Chart 2.1: Midlothian Council waiting list demand by bedroom size 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms Page 70 of 168
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9 Chart 2.2: Midlothian Council Lettings Chart 2.3 shows that the number of households on Midlothian Council waiting lists increased by 14% between 2021 and 2023. The ‘Choice’ waiting list (where there is no housing need but a preference to move) was removed in 2020 which resulted in a sharp reduction in waiting list numbers rather than a lessening of demand for social housing which is evident in the number of households currently waiting for housing. The number of households currently on the list is attributable to a number of nationwide economic factors as well as increased local awareness of Midlothian Council’s new build programme. Chart 2.3: Number of Households on Midlothian Council Housing List 2018 – 2023 0 50 100 150 200 250 300 350 400 450 500 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 No. of Midlothian Council lets 3400 3600 3800 4000 4200 4400 4600 4800 2018 2019 2020 2021 2022 2023 No. of households on Midlothian Council waiting lists Page 71 of 168
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10 Chart 2.4 below shows the number of homeless applications received by Midlothian Council since 2015/16. It clearly shows a 32% increase in the number of applications received between 2021/22 and 2022/23. This dramatic increase is synonymous with a 44% rise in the number of adult males with children presenting themselves as homeless during the same time frame, an increase which is thought to have arisen as a result of Homeless Persons (Unsuitable Accommodation) (Scotland) Order. Chart 2.4: Number of Homeless Applications per year Affordable Housing Development in Midlothian Table 2.3 shows the level of investment in new affordable homes in Midlothian since 2006 (when the Council began building new homes again). It shows that 1,360 council homes have been built, and a total of 1,861 council and RSL affordable units have been built overall. It should be noted that these figures report completions by calendar year up to June 2023 and don’t include open market purchases or shared equity purchases which have been recorded seperately. 0 100 200 300 400 500 600 700 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23No. of Homeless Applications Page 72 of 168
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11 Table 2.3: New Affordable Housing in Midlothian since 20064 Year of completion No. of completed Council units No. of completed RSL units (Social Rent and Mid Market Rent) 2006 0 19 2007 28 12 2008 172 42 2009 237 10 2010 88 20 2011 160 33 2012 170 121 2013 76 6 2014 0 20 2015 48 0 2016 41 28 2017 87 0 2018 0 103 2019 10 39 2020 31 0 2021 90 48 2022 122 0 Total 1360 501 Open Market Purchases Midlothian Council has an Open Market Purchase Scheme whereby ex-council properties are purchased and returned to housing stock. Midlothian Council receives funding towards each Open Market Purchase from the Scottish Government. Table 2.4 below details the number of Open Market Purchases carried out in recent years. 4 Housing statistics quarterly update: new housebuilding and affordable housing supply - gov.scot (www.gov.scot) Page 73 of 168
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12 Table 2.4: Number of Open Market Purchases5 Financial year No. of Open Market Purchases 2017/18 7 2018/19 13 2019/20 42 2020/21 14 2021/22 22 2022/23 21 Open Market Shared Equity A number of Midlothian residents have been able to purchase affordable homes using the Scottish Government’s Open Market Shared Equity Scheme (OMSE) whereby purchasers pay for the biggest share of a property and the Scottish Government hold the remaining share under a shared equity agreement. Table 2.5 below shows the number of successful home purchases in Midlothian using the Open Market Shared Equity Scheme (and predecessor schemes which operated similarly). Table 2.5: No. of OMSE home purchases in Midlothian6 Financial Year No. of OMSE home purchases 2006/07 45 2007/08 62 2008/09 8 2009/10 41 2010/11 28 2011/12 3 2012/13 13 2013/14 42 2014/15 53 2015/16 93 2016/17 126 2017/18 104 2018/19 72 2019/20 16 2020/21 13 2021/22 15 2022/23 27 Total 734 Mid-Market Rent (MMR) Mid-market rent (MMR) is a type of affordable housing with rents being lower than in the private market, but higher than in the social housing sector. MMR aims to help households on modest incomes, who have difficulty accessing social rented housing, buying their own home, or renting privately. Mid-market rent properties are delivered by housing associations, local authorities and some private developers. 5 Midlothian Council Housing Strategy and Performance statistics 6 Scottish Government More Homes Division Page 74 of 168
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13 MMR is aimed at households who have a consistent income and have a local connection. MMR tenancies are let under a Private Residential Tenancy Agreement. Midlothian Council has not developed any Mid-Market Rent properties to date. If Midlothian Council were to build mid-market rent properties, an external property management company would be required to manage day to day housing matters including leasing, investigating antisocial behaviour and rent collection as current legislation prevents local authorities from directly offering tenancies other than Assured Tenancies. Midlothian Council could establish a subsidiary company or employ an existing property management company to do this. There are different MMR funding avenues available including the Affordable Residential Lease Model which doesn’t require Local Authority investment or funds from the Scottish Government’s Affordable Housing Supply. The Midlothian Local Housing Strategy 2021-2026 contained an action to ‘support the development of Mid Market Rent units and undertake further polling measuring attitudes to MMR and demand in Midlothian’. Further polling has been undertaken to ascertain demand and Midlothian Council Officers are preparing a strategy on how to take forward more Mid Market Rent housing in Midlothian. 3 Partnership Working Partnership working is crucial to the delivery of high-quality housing and housing related services across all tenures in Midlothian. As part of the development of this SHIP, Council Officers have engaged and consulted with all delivery partners on their proposals and priority projects. In order to identify suitable investment priorities council officers have worked with the Scottish Government, Housing Associations, tenants groups, private developers and colleagues in the planning, finance, estates and construction teams to determine the level of housing need in the region, the level of demand for different tenures of affordable housing and the mix of suitable house sizes and types in order to agree a five year programme of development, informed by the current housing needs and demand assessment (HNDA) and the National Planning Framework 4 (NPF4). The development priorities in the SHIP will be monitored in several ways including: • Monitoring and reviewing of the actions in the Local Housing Strategy • Annual assessment of the Council’s Housing Supply Targets • Annual assessment of RSLs’ housing delivery • Monitoring of housing need and demand. • Reports and returns submitted to the Scottish Government Page 75 of 168
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14 Health and Social Care Housing providers in Midlothian work collaboratively with health and social care colleagues to ensure that housing provision in Midlothian can better meet the needs of households who may require specialist housing provision to be able to live independently. The types of outcomes that this will facilitate include: • Increased specialist housing provision because of improved understanding of the future needs of the population, such as developing extra care housing which provides an alternative to living in a care home for some people. • Identification of the level of need for, and funding of, adaptations to ensure that people living in private sector housing and council housing can continue to live independently. • Improving the health outcomes for homeless households, many of whom currently have poorer levels of physical health and mental health than the general population. • Taking action to improve the energy efficiency of housing and reducing fuel poverty which would lessen the risk to a household’s health and wellbeing. More information is contained in the Midlothian Health and Social Care Partnership Strategic Plan 2022-2025, available here: What we do Information - Midlothian Health and Social Care Partnership Local Housing Strategy 2021-2026 The purpose of Midlothian’s Strategic Housing Investment Plan (SHIP) is to set out strategic investment priorities for affordable housing over a five-year period to achieve the outcomes set out in the Local Housing Strategy (LHS). Extensive consultation work was carried out in the preparation of the LHS and therefore to set the outcomes within the document. Stakeholders included: • Tenants • Waiting list applicants • Residents • Registered Tenants Organisations • Resident and Tenants Groups • Midlothian Tenants Panel • Registered Social Landlords • Shelter Scotland • Home Energy Scotland • Changeworks Consultation methods included: • Social media • SurveyMonkey • Microsoft Teams virtual consultation meetings • Zoom virtual consultation meetings Page 76 of 168
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15 Initially stakeholders were provided with some background information on Local Housing Strategies and the broad areas to be examined and discussed. These areas were revisited throughout the development of the strategy at different points throughout the engagement process. Stakeholders were provided with the draft document for the final consultation process along with key challenges to prioritise for the duration of the Local Housing Strategy and thus for the Strategic Housing Investment Plan. Edinburgh and South East Scotland City Region Deal The Edinburgh and South East Scotland City Region comprises the six local authorities of City of Edinburgh, Fife, East Lothian, Midlothian, Scottish Borders and West Lothian. Officers from these Councils collaborate with the UK and Scottish Governments respectively to deliver a transformational and inclusive city deal for the region which will attract investment of up to £1.1 Billion over 15 years. This includes investment and collaboration on housing. Housing is included within the City Region Deal as it is recognised as being an area of pressure but also an opportunity for accelerated economic growth while reducing social exclusion. All Councils in the South East of Scotland face the same pressures in addressing housing need with the recent housing need and demand assessment for the region estimating at least 67,000 new homes are required by 2030, with the majority of need being for households who cannot buy or rent at market prices. Key housing investment areas in Midlothian that are being supported through the City Region Deal include: • Supporting a 10-year affordable housing programme across the region with Scottish Government grant funding. • Supporting local authority borrowing and share financing risk of infrastructure delivery for key development sites. • Provision of a £50 Million housing infrastructure fund of predominantly private sector loans to be spent on projects that will unlock housing in strategic development sites across the region. • Collaborating to develop innovative approaches to increasing the use of offsite construction methods. • Establish a council-owned regional housing company to deliver mid-market and private rented sector housing (City of Edinburgh Council’s Edinburgh Living). Edinburgh & South East Scotland Housing Demonstrator Programme To take forward the opportunity to increase the use of offsite construction methods, the Edinburgh & South East Scotland Housing Demonstrator Programme seeks to create a programme of housing that will be delivered to standardised typologies and performance standards with the use of offsite construction processes for a pipeline of sites across the city region. Midlothian Council undertook a review of its garage and lock up sites as a potential source of future housing sites. From this review, and a wider look at land in Council ownership that had potential for housing development, a number of sites were put forward for further assessment as part of the feasibility stage of the Housing Demonstrator Programme. Page 77 of 168
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16 The approximately capacity of the suitable Midlothian sites is 17 homes, within an overall regional pipeline that to date comprises approximately 320 homes. Midlothian Council has entered into a Memorandum of Understanding to embed collaborative working across this programme. Each City Deal local authority has procured feasibility work to their Demonstrator sites to a common specification with the same design team. Table 3.1 contains details of the proposed Housing Demonstrator sites in Midlothian. Table 3.1: Proposed Housing Demonstrator sites in Midlothian Site name Location Approx No. of homes Build type Eastfield Drive Penicuik 4 Houses/Cottage Flats Lyne Terrace Penicuik 7 Houses/Cottage Flats Church Hall Newtongrange 6 Houses/Cottage Flats At this stage, these sites are being assessed for suitability for housing development before they form a confirmed part of the affordable housing supply programme. A catalogue of agreed housing design typologies has been developed, which will deliver a certain performance standard, aiming to achieve net zero. However, these typologies are not designed to deliver homes to a passivhaus standard, which should be noted. Discussions are ongoing regarding how we could achieve an energy performance as close to passivhaus standard as possible using off site manufacture. A contractor for these sites is to be procured by Midlothian Council in partnership with other housing authorities in the region. The route to procurement and timing is to be co-ordinated to achieve economies of scale, on the basis that the contractor will be responding to a series of co-ordinated procurements across the region. If a collective approach is not viable the sites will be progressed by Midlothian Council in the use of offsite construction. The nature of the off-site / mass customisation methodology to be used to deliver these homes will be determined by the contractor that will take these forward. Alternative approaches for the future use of other garage or lock up sites which are currently underused will also be taken forward. This will include options such as demolition, sale or re-use for other purposes. Midlothian’s Rapid Rehousing Transition Plan The vision for Midlothian Council’s Rapid Rehousing Transition Plan is that by 2024: “An increased number of homeless households will obtain permanent accommodation, no homeless household will be accommodated in bed and breakfast type accommodation, and the average time taken for the Council to complete its homeless duty will have halved from 104 to 52 weeks.” Page 78 of 168
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17 The Plan has five key outcomes to reach by 2024: Outcome 1: Increasing the supply of affordable housing in Midlothian. Outcome 2: Revise Midlothian Council’s Housing Allocation Policy to address the backlog of homeless households already in temporary accommodation, and reduce the time taken to house homeless households in the future. Outcome 3: Seek alternative models of temporary accommodation to reduce the need for bed and breakfast accommodation. Outcome 4: Ensure homeless households are supported to access a wide range of housing options, including the private rented sector. Outcome 5: Develop a ‘housing first’ approach in Midlothian to house homeless households with complex needs. The investment plans outlined in the SHIP are key to the objective of increasing the supply of affordable housing. The Scottish Government is supporting Midlothian Council to implement specific actions within the Rapid Rehousing Transition Plan and between 2018/19 and 2021/22 allocated £796,941 to support this work. Further funding is expected in future years to continue to support the implementation of this Plan. Town Centre Regeneration The Town Centre First Principle was agreed by the Scottish Government and the Convention of Scottish Local Authorities in July 2014 and asked that government, local authorities, the wider public sector, businesses and communities put the health of town centres at the heart of decision making. It seeks to deliver the best local outcomes, align policies, and target available resources to prioritise town centre sites, encouraging vibrancy, equality and diversity. In response to the COVID-19 pandemic and other pressures being experienced by town centre, a New Future for Scotland’s Town Centre was published in February 2021 by the Scottish Government. This and NPF4 support town centre living (TCL) and recognised the development of homes in town centres is critical to achieving sustainable places. Town Centre Living requires a collaborative approach which strengthens the long-term plan for each town centre. Work is underway by Midlothian Council and partner organisations to regenerate Dalkeith7 and Newtongrange town centres to provide more and better housing, enhance their role as 20 minute neighbourhoods and realise greener buildings and town centres (in order to become net zero by 2030). 7 Have your say: Dalkeith Town Centre Regeneration | Creating a fresh vision for Dalkeith town centre | Midlothian Council Page 79 of 168
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18 4 Investment Priorities and Resources In order for the SHIP to deliver strategic investment priorities for affordable housing in Midlothian, the Council has engaged with RSLs and relevant delivery partners in setting out Midlothian’s investment priorities for affordable housing. To ensure that available resources are prioritised in delivering affordable housing, each project is scored against a set of criteria: Housing Need; Land Availability; Ability to Start on Site; Constraints; Equalities Needs and Environmental Impact, as shown in the tables below. In total, a project can be awarded a maximum score of 30 points and a score less than 18 indicates a ‘low priority project’, 18-22, ‘a medium priority project’ and over 22, a ‘high priority project’. Table 4.1: Project Prioritisation Scoring Criteria Explanation Score Area Housing Need Housing need rankings are based on a waiting list demand study. 1 would indicate no housing need in an area, whilst 5 indicates the highest level of need. 1-5 Land Availability Sites ranked most highly are those owned by the Council or RSL. Also ranked highly are sites with Planning Permission in place 1-5 Ability to Start on Site A site with a high score indicates that the work could start on site once funding was approved. 1-5 Constraints Issues such as Section 75 requirements that have yet to be resolved would be given a lower score. 1-5 Equalities Needs All sites will score at least a good rating (3) due to Housing for Varying Needs. Additional points would be awarded for particular needs housing, mixed tenure development e.g. shared equity. 1-5 Environmental Impact All sites which have been allocated through the Midlothian Local Plan would not be considered as having a negative environmental impact. Use of renewable technology and building on Brownfield sites would score more points. 1-5 Table 4.2: Area Project Prioritisation Score Rank Area Points 1 Bonnyrigg/Lasswade/Poltonhall Loanhead, Newtongrange, Danderhall/Shawfair Small Settlements including Pathhead, Roslin, Rosewell, Bilston 5 2 Dalkeith, Penicuik 4 3 Gorebridge, Mayfield/Easthouses 3 Page 80 of 168
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19 It should be noted that some projects may have scored less not because they are of less strategic importance to the Council or RSLs but due to circumstances which prevent construction works from commencing on site (e.g., need for infrastructure works or demolition). In terms of the area ranking for housing need, there are no areas in Midlothian with a low level of housing need so areas judged to have lower levels of housing need are those where there has already been significant investment in new affordable housing in recent years. The sections below show both Council and RSL housing development priorities over the next five years. It should be noted that sites indicated are subject to change as some sites have not yet been approved by the developing organisation, received planning permission or land ownership has not been secured. There is also potential for additional sites to be developed within the five-year period. More detail on each site is shown in Appendix 1. Council Development Priorities The table below sets out the priorities for proposed Council projects over the next 5 years. Key notes: • 14 development projects are proposed by Midlothian Council over the next 5 years. • Projects which are currently onsite do not need to be prioritised as they are already in the process of being built. • 8 of the remaining 14 projects are considered high priority while 6 are medium priorities. There are no projects judged to have a low priority. Page 81 of 168
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20 Table 4.3: Council Housing Development Priorities Page 82 of 168
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21 RSL Development Priorities The table below sets out the priorities for proposed RSL projects over the next 5 years. Key notes: • 30 development projects are proposed by RSLs over the next 5 years. • Some of these projects contain several phases of development, each having its own prioritisation and SHIP entry. • Projects which are currently onsite do not need to be prioritised as they are in the process of being built. • 15 of the remaining 30 projects are high priority while 15 scored as medium priority. No projects scored with a low priority. • 5 RSLs have indicated their plans to develop during this period including: - Castle Rock Edinvar (14 projects) - Melville Housing Association (8 projects) - Dunedin Canmore Housing Association (6 projects) - Ark Housing Association (1 project) - Viewpoint Housing Association (1 project) Page 83 of 168
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22 Table 4.4: RSL Housing Development Priorities Page 84 of 168
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23 Addressing Potential Development Constraints Midlothian Council and developing partners are confident that the SHIP can be delivered given the actions and initiatives undertaken to date by the Council and its strategic partners to source suitable sites for development. However, a number of challenges need to be addressed by the Council and its partners in order that an accelerated pace of development can be achieved. Risks and constraints to development vary depending on the circumstances of each site and the developing landlord. These potential risks and constraints are: • Obtaining required Planning Approval. • Rising inflation and the cost of materials and labour • The emerging number of s75 sites without a confirmed affordable housing provider. • A diminishing number of Midlothian Council owned sites mean that many future sites will be controlled by a third party. • Building and Procurement Constraints. • Environmental and design issues. • The commencement of affordable housing policy sites are dependent on developers’ timescales and the economic conditions of the housing market. • Unknown site ground conditions. • The rural nature of some areas in Midlothian can mean that development is constrained in these areas, particularly in relation to available land for housing and the requirements for additional infrastructure prior to development commencement. Ongoing activities to resolve these issues include: • Proactive engagement with key agencies including Scottish Water, Scottish Power Energy Networks and Transport Scotland • Wider procurement procedures for Regional Housing Demonstrator • Maximising grant from Scottish Government • Acquiring sites from private developers Scottish Government Affordable Housing Supply Funding Required The Strategic Housing Investment Plan details potential sites for 2,115 new affordable homes to be built between 2024/25 and 2028/29, of which: • House types: 1,885 are general needs homes and 240 are specialist provision homes. • Built form: 2,035 will be new build housing and 80 will be ‘off the shelf purchases’ • Tenure type: 912 homes will be council housing and 880 will be social rented housing by an RSL, 14 will be Low Cost Home Ownership – Shared Equity housing by an RSL and 309 will be Mid-Market Rent housing provided by an RSL (MMR). • This reflects the fact that the affordable housing tenure with the highest demand is social rented housing. • 2,035 units are expected to receive additional funding due to them meeting the ‘greener homes’ standard – the remaining 80 units will be open market purchases and therefore older ex-local authority properties which do not meet the ‘greener standard’. Page 85 of 168
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24 • 227 units will be developed in sub-area A (Midlothian West) • 1,798 units are to be developed in sub-area B (Midlothian East). A total of £169.140 million of Scottish Government grant funding is required by the Council and RSLs to deliver the identified units over the next 5 years: • The year which requires the most grant funding is 2025/26, with a requirement of £49.160 Million. • 912 of the units will be new Council housing requiring £63.129 million grant funding. Monies already claimed from the Scottish Government have not been included in this figure. • 1,203 of the units will be RSL housing requiring £105.914 million Government funding. Monies already claimed from the Scottish Government have not been included in this figure. • The required level of grant funding to deliver this number of units greatly exceeds the stated level of funding available. Council Officers will continue to discuss resource requirements with the Scottish Government to ensure that projects receive appropriate levels of grant funding. In previous years Midlothian has been able to claim significantly increased resources in response to the number of projects being taken forward. Disposal of Council Assets and Land The Council is required by law to ensure it achieves best value in disposing of any asset, including land. The Council acknowledges that Best Value does not always mean highest price but can be linked to a range of wider benefits. Provision of affordable housing is a good example of where the Council has sold land and assets to RSLs at a price lower than market value while still achieving the required Best Value. There are also opportunities to undertake developments in partnership with other RSLs. Commuted Sums In some circumstances the Council may consider accepting commuted sums as opposed to the delivery of affordable housing units on some sites. In 2022/23 no commuted sums were received from private housing developers as the demand for affordable housing in Midlothian continues to grow. Empty Homes, Second Homes and Council Tax Discounts Under the Local Government Finance (Unoccupied Properties etc.) (Scotland) Act 2012 and its subsequent regulations, Midlothian Council updated the charges applicable on empty and second homes: • A discount of 10% currently applies to empty properties and second homes. The exceptions are purpose-built holiday homes and job-related properties, where a 50% discount applies. • A 50% discount applies for a maximum of 6 months to empty and unfurnished properties. (This applies from the date the maximum period of 6 months exemption ends). Page 86 of 168
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25 • There is a levy of up to 100% on long term empty properties. An increase in Council Tax liability can only be applied to a property which has been unoccupied for a continuous period of more than twelve months and is not actively being marketed for sale or let. A total of £66,232.82 was raised between 2016/17 and 2022/23 which is being used to support Midlothian’s New Build Council Housing Programme8. Midlothian Council does not have a dedicated ‘Empty Homes Officer’ and therefore advocates the use of the Scottish Empty Homes Advice Service which can look at the different options and the support available for properties which have been empty for over 6 months. Neither Midlothian Council nor the Scottish Empty Homes Advice Service have an overview of the number of empty homes brought back into use in Midlothian over the last three financial years however table 4.5 below, illustrates the number of long-term empty9 and second homes in Midlothian during the same period and compares them to the Scottish average. It is evident that Midlothian has very few long-term empty properties and second homes; in 2022 the figures for Midlothian were just 27% and 8% of the Scottish average respectively. Table 4.5: Number of Second and Long Term Empty Properties 2020-202210 2020 2021 2022 No. of long term empty properties (Midlothian) 388 379 359 No. of long term empty properties (Scottish average) 1479 1368 1340 No. of second homes (Midlothian) 50 48 57 No. of second homes (Scottish average) 765 747 759 8 Appendix A 9 Vacant for 12 months or longer 10 Housing statistics: Empty properties and second homes - gov.scot (www.gov.scot) Page 87 of 168
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26 Gypsy Traveller Accommodation Improving the lives of Gypsy/Traveller communities is a significant human-rights commitment for Midlothian Council and is crucial if we are to tackle deep-rooted inequalities and deliver a fairer society. Improving the lives of Gypsy/Travellers 2019- 202111 is the Scottish Government’s action plan to improve the lives of Gypsy/Travellers by ensuring they: • have safe and culturally appropriate places to live and travel • understand their rights and have positive experiences of accessing services • have support to maximise incomes, increase employment opportunities, and improve the standard of living • feel safe, respected and valued members of Scotland’s diverse population • have a seat at the table, are listened to, and have a say in decisions that affect their lives. Improving the lives of Gypsy/Travellers 2019-2021 has been extended until Autumn 2023 due to the effects of the Covid-19 pandemic. The Strategic Housing Investment Plan 2024/25-2028/29 acknowledges the aims and objectives of ‘Improving the lives of Gypsy/Travellers 2019-21. The Gypsy/Traveller site managed by East Lothian Council on behalf of East and Midlothian Councils closed in June 2021 following extensive vandalism. East Lothian and Midlothian Councils are now in the process of determining future accommodation options for the site and for Gypsy/Travellers in the greater communities. Wheelchair Accessible Housing Targets In August 2022 Midlothian Council set wheelchair accessible housing targets for the five-year period between 2022/23 – 2026/27. The targets cover both social and market housing and have been set following consultation with Midlothian residents, RSL partners, the Health and Social Care Partnership and Planning Officers. The targets state that 20 wheelchair accessible homes will be built per annum with 10 in the social sector and 10 in the private sector, while other available opportunities shall also be maximised. More information is contained in the Wheelchair Accessible Housing Target Report 2022/23 – 2026/27, available here: Housing strategy and performance | Wheelchair Accessible Housing Targets 2022/23 - 2026/27 (midlothian.gov.uk) Non-Traditional Financial Models of Development The use of innovative financial models is being encouraged in Midlothian to accelerate the development of new affordable housing. Innovative approaches to development often do not require traditional grant funding and will therefore increase the total number of new affordable homes that can be built. Table 4.6 shows the proposed locations for these additional units. LAR Housing Trust is an established affordable housing provider set-up to create permanent below market rent options for households that would otherwise be at risk of financial hardship. LAR is financed using loan funding from the Scottish Government and therefore does not require any direct subsidy and so will not be seeking any grant allocations from local authorities. 11 Improving the lives of Gypsy/Travellers: 2019-2021 - gov.scot (www.gov.scot) Page 88 of 168
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27 Dunedin Canmore and Ark Housing Associations have both applied for funding from the Charitable Bond Programme; a loan scheme for Registered Social Landlords to finance new development, with the interest then reinvested as grants into the social rented sector. Table 4.6 New Homes Planned using Non-Traditional Finance Models 2023/24 – 2027/28 Location Developer Number of additional new homes Estimated Date of Completion Wester Cowden, Dalkeith LAR 25 2025/26 Fordel Village LAR 24 2025/26 Rosewell, Doctors Field, Barratt Dunedin Canmore HA 25 2025/26 Windsor Square, Penicuik Ark HA 12 2024/25 5 Housing Infrastructure Fund The Scottish Government’s Housing Infrastructure Fund (HIF) is aimed at supporting housing development through loans and grants with priority being given to those projects, which will deliver affordable housing. As part of the Scottish Government’s “Housing to 2040 Strategy” Scottish Ministers have approved the continuation of the Housing Infrastructure Fund (HIF) in the current Parliamentary period. The fund comprises two main elements: • Infrastructure loans available to non-public sector organisations • Infrastructure grant available to local authorities and Registered Social Landlords (RSLs) to support affordable housing delivery. Eligible works for HIF could include on site and off site elements. Works will include physical infrastructure generally required to start a project, such as roads, sewers, SUDS ponds, decontamination, flood remediation and demolition work. Where a Section 75 obligation requires it, certain off-site infrastructure will also be eligible. The fund does not support the provision of community infrastructure required as a consequence of new housing development, for example, funding for schools. As part of developing the SHIP, Midlothian Council will work with partners to identify and prioritise those sites which are of strategic importance and cannot proceed or have stalled due to the extent and costs/financing of infrastructure works involved, and with HIF’s support, unlock these sites for the delivery of housing12. The Council will work with partners in examining the identified projects to ensure that such projects are eligible for the fund13. Further information on the Housing Infrastructure Fund can be found here: Housing Infrastructure Fund : guidance for applications - gov.scot (www.gov.scot) 12 https://www.gov.scot/policies/more-homes/housing-infrastructure-fund/ 13 https://www.gov.scot/publications/housing-infrastructure-fund-guidance-for-applications/ Page 89 of 168
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28 6 Conclusion The Midlothian Strategic Housing Investment Plan 2024/25 – 2028/29 identifies the priorities for the development of affordable housing and where development will be undertaken over the next 5 years. It identifies sites which can deliver 2,084 units during the next 5 years to meet the increasing level of housing need in Midlothian. This will not only ensure best value in the use of resources but also ensure the delivery of the right mix of houses in the most pressured areas. If you have any comments or queries on the content of this document, please contact the Housing Development Section at Midlothian Council for more information. Development Midlothian Council Midlothian House 40-46 Buccleuch Street Dalkeith EH22 1DN housing.enquiries@midlothian.gov.uk Telephone: 07808 903454 Equality Impact Assessment (EIA) and Strategic Environmental Assessment Midlothian Council is committed to ensuring equality of opportunity and combating discrimination through a series of equal opportunities and anti-discriminatory policies. The Council has embedded equalities principles into strategic planning as well as service delivery. Housing policies and services are regularly monitored, reviewed and reported on to ensure that they comply with equalities requirements. Midlothian Council carried out an Equality Impact Assessment to ensure that the Strategic Housing Investment Plan takes the needs of all equality strands into account. The assessment found no evidence that any direct discrimination will arise from any part of the strategy. The SHIP is also subject to pre-screening as part of Strategic Environmental Assessment requirements. Page 90 of 168
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Appendix 1: SHIP Project Tables Table 1 - AFFORDABLE HOUSING SUPPLY PROGRAMME 2024/25-2028/29 Page 91 of 168
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Table 2 – AFFORDABLE HOUSING PROJECTS FUNDED OR SUPPORTED BY SOURCES OTHER THAN THE RPA/TMDF BUDGET Page 96 of 168
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Table 3 - COUNCIL TAX ON SECOND AND EMPTY HOMES Table 4 - DEVELOPER CONTRIBUTIONS Page 97 of 168
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Table 1 - AFFORDABLE HOUSING SUPPLY PROGRAMME - Years 1-5 2024/25 - 2028/29 SUB- AREA PRIORITY GREENER STANDARDS APPROVAL DATE Low / Medium / High Social Rent Mid Market Rent LCHO - Shared Equity LCHO - Shared Ownership LCHO - Improvement for Sale PSR Total Units Rehab Off the Shelf NB Total Units GN Specialist Provision Type of Specialist Particular Need (If Known) Total Units by Type Enter Y or N Financial Year (Estimated or Actual) 2024/ 25 2025/ 26 2026/ 27 2027/ 28 2028/ 29 TOTAL SITE STARTS OVER PERIOD OF SHIP 2024/ 25 2025/ 26 2026/ 27 2027/ 28 2028/ 29 TOTAL COMPLETIONS OVER PERIOD OF SHIP 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL AHSP FUNDING REQUIRED OVER SHIP PERIOD Muir Group, South Tynewater: P41837 B Medium X:339221 Y:664186 5 Midlothian Council 11 11 11 11 11 11 Y 2023/24 11 11 11 11 1.090 1.090 Plot P,Shawfair, Persimmon Homes: P43738 B High X:331479 Y:668973 5 Midlothian Council 44 44 44 44 44 44 Y 2023/24 20 24 44 20 24 44 2.181 2.181 4.362 Edmonstone Road, Danderhall (Stewart Milne): P43720 B Medium X: 330444 Y: 669939 3 Midlothian Council 28 28 28 28 28 28 Y 2023/24 28 28 28 28 1.636 1.636 Rullion Road, Penicuik: P46386 A Medium X: 332062 Y: 660343 2 Midlothian Council 48 48 48 48 48 48 Y 2023/24 24 24 48 24 24 48 2.267 2.267 4.534 Millerhill, Wellington Farm/Newton Farm phase 2: P43739 B Medium X: 333025 Y: 669998 5 Midlothian Council 90 90 90 90 90 90 Y 2021/22 90 90 90 90 4.461 4.461 8.922 Lingerwood, Springfield: P41724 B High X: 334116 Y: 663691 2 Midlothian Council 113 113 113 113 113 113 Y 2024/25 56 28 29 113 28 28 28 29 113 2.668 2.668 2.668 2.668 10.674 Plot R, Shawfair, Mactaggart and Mickel: P42532 B High X: 332067 Y: 669675 5 Midlothian Council 33 33 33 33 33 33 Y 2023/24 15 18 33 15 18 33 1.636 1.636 3.271 Auchendinny, Bellway: P43835 A Medium X: 325522 Y: 662254 2 Midlothian Council 71 71 71 71 71 WFS 71 Y 2024/25 71 71 36 35 71 3.353 3.353 6.706 Newbyres Crescent, Gorebridge: T34262 B High X: 334476 Y: 661897 2 Midlothian Council 75 75 75 75 62 13 Extra Care, Bariatric and Wheelchair Bungalow 75 Y 2023/24 75 75 75 75 150 0.668 0.668 0.668 2.004 Conifer Road, Mayfield: T35733 B High X: 335094 Y:665216 2 Midlothian Council 72 72 72 72 70 2 Wet Floor Showeroom (WFS) 72 Y 2017/18 72 72 72 72 0.000 Bonnyrigg, Polton Street (Complex Care): P41758 B High X: 330668 Y: 665025 2 Midlothian Council 46 46 46 46 46 Complex Care 46 Y 2019/20 46 46 46 1.485 1.485 2.971 High Street, Bonnyrigg, phase 1 (Complex Care): P41147 B High X: 330888 Y:665255 2 Midlothian Council 20 20 20 20 12 8 WFS, Complex Care 20 Y 2019/20 0 20 20 1.694 1.694 Mayfield, Easthouses Road, former Newbattle High School, phase 1: P42523 B Medium X: 334483 Y: 665085 2 Midlothian Council 90 90 90 90 84 6 WFS, Wheelchair House 90 Y 2018/19 0 90 90 2.199 2.199 4.399 Danderhall, Newton Church Road (former leisure centre): P43833 B High X: 330832 Y: 669312 5 Midlothian Council 23 23 23 23 23 Amenity 23 Y 2019/20 0 23 23 0.382 0.382 Edinburgh Housing Demonstrator Cluster: P43740 A and B Medium Various various Midlothian Council 9 9 9 9 9 9 Y 2023/24 9 9 9 9 0.85 0.850 Newtongrange, St David's, former library Site: P43742 B Medium X: 333394 Y: 664301 2 Midlothian Council 5 5 5 5 5 WFS 5 Y 2022/23 5 5 5 5 0.472 0.472 Newtongrange, Main Street, former swimming pool B High X:333354 Y:664113 2 Midlothian Council 20 20 20 20 20 20 Y 2025/26 20 20 20 20 0.945 0.945 1.889 Plot AA2/AA3, Newton Church Road, Millerhill, Bellway B High X:330693, Y:670240 5 Midlothian Council 34 34 34 34 34 34 Y 2023/24 34 34 34 34 3.370 3.370 Open Market Purchases A and B High Various various Midlothian Council 80 80 80 80 74 6 WFS, Amenity Bungalow 80 N/A 2017/18 80 16 16 16 16 16 80 0.8 0.8 0.8 0.8 0.8 4.000 Old Craighall Road, Shawfair, Springfield: P41836 B Medium X: 332301 Y: 669281 3 Dunedin Canmore 48 48 48 48 46 2 WFS 48 Y 2023/24 48 48 48 48 5.136 5.136 Bonnyrigg, Dalhousie South, Springfield B Medium X: 332213 Y:664720 3 Dunedin Canmore 40 40 80 80 80 70 10 amenity 80 Y 2023/24 80 80 80 80 7.680 7.680 Auchendinny, Bellway A High X: 325826 Y:662327 3 Dunedin Canmore 29 29 29 29 20 9 amenity 29 Y 2023/24 29 29 29 29 1.552 1.551 3.103 Shawfair Town Centre, Avant B Medium X: 331749 Y:669779 3 Dunedin Canmore 70 30 100 100 100 80 20 amenity 100 Y 2024/25 100 100 100 100 5.020 5.020 10.040 Rosewell, Doctors Field, Barratt B Medium X:329254 Y:663298 3 Dunedin Canmore 25 25 25 25 25 25 Y 2023/24 25 25 25 25 1.338 1.337 2.675 Penicuik, Wellington School, Lochay Homes; P43726 A Medium X: 323805 Y:656726 3 Dunedin Canmore 12 12 12 12 11 1 Wheelchair 12 Y 2024/25 12 12 12 12 1.284 1.284 Oak Place, Mayfield; P41764 B High X-335690 Y-665041 Melville 39 39 39 39 37 2 Wheelchair 39 Y 2022/23 0 30 39 0.000 Newbattle High School Site B; P41722 B High X - 334128 Y- 665169 5 Melville 28 28 28 28 28 28 Y 2023/24 0 28 28 1.180 1.180 Fordel B Medium X - 336094 Y- 666704 Melville 20 20 20 20 20 20 Y 2024/25 20 20 20 20 2.151 2.151 Bilston 3a A Medium X - 325986 Y - 665034 Melville 35 35 35 35 37 8 Ambulant 35 Y 2024//25 35 35 20 15 35 1.500 1.783 3.283 Scotts Caravan Park, Mayfield B Medium X - 334464 Y- 664676 Melville 78 78 78 78 70 8 Ambulant & Wheelchair 78 Y 2025/26 78 78 35 43 78 5.000 3.985 8.985 Land off Myrtyle Crescent, Bilston B Medium X -326347 Y-664727 Melville 46 46 46 46 40 6 Ambulant 46 Y 2025/26 46 46 46 46 3.100 1.648 4.748 Wester Cowdens, Dalkeith, Lovell B Medium X- -334691 Y - 667643 Melville 30 30 30 30 28 2 Wheelchair 30 Y 2025/26 30 30 30 30 1.000 2.282 3.282 UNITS - BUILT FORM UNITS - TYPEPROJECT GEOGRAP HIC COORDINA TES (X:EASTIN G Y:NORTHIN GEOGRAPHI C CODE (Numeric Value - from Drop Down Table Below) DEVELOPER UNITS - TENURE LOCAL AUTHORITY: Midlothian STRATEGIC HOUSING INVESTMENT PLAN 2024/25 - 2028/29 SG AHSP FUNDING REQUIREMENT (£0.000M)UNITS SITE STARTS UNITS - COMPLETIONS Page 99 of 168
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Bilston 3b A Medium X - 326161 Y - 665252 Melville 21 21 21 21 21 21 Y 2025/26 21 21 21 21 1.900 0.402 2.302 Lothian Drive, Easthouses B Medium X - 328926 Y - 662370 Melville 12 12 12 12 12 12 Y 2025/26 12 12 12 12 0.991 0.991 Old School, Mayfield B Medium X - 335148 Y - 665882 Melville 30 30 30 30 28 2 Wheelchair 30 Y 2026/27 30 30 30 30 1.200 2.277 3.477 Cauldcoats Phase 1 Social Rent, Miller Homes; P43188 B High X - 330663 Y - 670906 6 Places for People 13 13 13 13 13 13 Y 2024/25 13 13 13 13 0.757 0.505 1.262 Cauldcoats Phase 2 Social Rent, Miller Homes; P43837 B High X - 330663 Y - 670906 6 Places for People 38 38 38 38 38 38 Y 2025/26 38 38 38 38 2.949 0.737 3.686 Cauldcoats Phase 2 - MMR, Miller Homes; P43838 B High X - 330663 Y - 670906 8 Places for People 12 12 12 12 12 12 Y 2025/26 12 12 12 12 0.657 0.164 0.821 Cauldcoats Phase 3 Social Rent, Miller Homes B High X - 330663 Y - 670906 6 Places for People 20 20 20 20 20 20 Y 2026/27 20 20 20 20 1.552 0.388 1.940 Cauldcoats Phase 3 - MMR, Miller Homes B High X - 330663 Y - 670906 8 Places for People 9 9 9 9 9 9 Y 2026/27 9 9 9 9 0.492 0.123 0.615 Eskbank Dandara - Social Rent; P43966 B High X - 331763 Y - 666658 6 Places for People 18 18 18 18 18 18 Y 2022/23 0 18 18 0.000 Eskbank Dandara - MMR; P43967 B High X - 331763 Y - 666658 8 Places for People 12 12 12 12 12 12 Y 2022/23 0 12 12 0.000 Shawfair Woolmet W2 - Phase 1 - Social Rent, Miller Homes B Medium X - 331679 Y - 669332 Places for People 10 10 10 10 10 10 Y 2024/25 10 10 10 10 0.970 0.970 Shawfair Woolmet W1 - Phase 2 - Social Rent, Miller Homes B Medium X - 331485 Y - 669558 Places for People 12 12 12 12 12 12 Y 2025/26 12 12 12 12 1.164 1.164 Shawfair Woolmet W1 - Phase 3 - Social Rent, Miller Homes B Medium X - 331485 Y - 669558 Places for People 8 8 8 8 8 8 Y 2026/27 8 8 8 8 0.310 0.466 0.776 Shawfair Woolmet W1 - Phase 3 - MMR, Miller Homes B Medium X - 331485 Y - 669558 Places for People 14 14 14 14 14 14 Y 2026/27 14 14 14 14 0.383 0.574 0.957 Shawfair Town Centre North Bellway - SR, Bellway B Medium X - 331770 Y - 670066 Places for People 44 44 44 44 38 6 44 Y 2024/25 44 44 44 44 2.266 2.266 4.532 Shawfair Town Centre North Bellway - MMR, Bellway B Medium X - 331770 Y - 670066 Places for People 30 30 30 30 30 30 Y 2024/25 30 30 30 30 1.070 1.070 2.140 Shawfair Town Centre North Bellway - SE, Bellway B Medium X - 331770 Y - 670066 Places for People 14 14 14 14 14 14 Y 2024/25 14 14 12 12 0.350 0.350 0.700 Shawfair Town Centre (Rettie) - SR B Medium X - 331869 Y - 669811 Places for People 102 102 102 102 90 12 102 Y 2025/26 102 102 24 24 2.100 3.350 5.049 10.499 Shawfair Town Centre (Rettie) - MMR B Medium X -331869 Y - 669811 Places for People 102 102 102 102 90 12 102 Y 2025/26 102 102 24 24 1.500 2.170 3.770 7.440 Redheugh, Gorebridge Phase 1 - Social Rent, Barratt B Medium X - 333315 Y - 662496 Places for People 25 25 25 25 25 25 Y 2026/27 25 25 25 25 1.750 0.793 2.543 Redheugh, Gorebridge Phase 1- MMR, Barratt B Medium X - 333315 Y - 662496 Places for People 10 10 10 10 10 10 Y 2026/27 10 10 10 10 0.700 0.031 0.731 Redheugh, Gorebridge Phase 2 - Social Rent, Barratt B Medium X - 333315 Y - 662496 Places for People 25 25 25 25 25 25 Y 2027/28 25 25 25 25 1.750 0.793 2.543 Redheugh, Gorebridge Phase 2- MMR, Barratt B Medium X - 333315 Y - 662496 Places for People 10 10 10 10 10 10 Y 2027/28 10 10 10 10 0.700 0.031 0.731 Windsor Square, Penicuik A High X: 324192 Y:660843 2 Ark HA 12 12 12 12 6 6 Ambulant disabled 12 Y 2023 12 12 12 12 1.547 1.547 Glenesk, Dalkeith; T36514 B X: 332394 Y: 666857 5 Viewpoint 30 30 30 30 30 Older People 30 Y 2025/26 30 30 30 0.000 Total 1792 309 14 0 0 0 2115 0 80 2035 2115 1885 240 0 2115 592 581 228 358 0 1855 332 515 603 245 328 2032 46.634 49.207 36.573 25.770 10.954 169.140 Drop Down Table Values Numerical Value 1 2 3 4 5 6 Large urban area Other urban area Accessible Small town Remote small town Geographic Code Council MMR city and u RSL social rent city and urban RSL social rent other rural RSL MMR city and urban £62,542 Remote rural area Council MMR other council social rent city Council social rent Accessible rural area RSL MMR other rural £66,049 Page 100 of 168
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LOCAL AUTHORITY: Midlothian TABLE 2 - AFFORDABLE HOUSING PROJECTS FUNDED OR SUPPORTED BY SOURCES OTHER THAN THE RPA/TMDF BUDGET SUB-AREA PRIORITY APPROVAL DATE TOTAL Low / Medium / High Financial Year (Actual or Estimated) 2024/ 25 2025/ 26 2026/ 27 2027/ 28 2028/ 29 TOTAL SITE STARTS 2024/ 25 2025/ 26 2026/ 27 2027/ 28 2028/ 29 Windsor Square, Penicuik A High X: 324192 Y:660843 Ark HA Charitable Bond Funding requested 2023/24 12 12 12 12 1.547 1.547 Rosewell, Doctors Field, Barratt B Medium X:329254 Y:663298 Dunedin Canmore HA Charitable Bond Funding requested 2023/24 25 25 25 25 2.675 2.675 Wester Cowden B X:335139 Y:667131 Lar TBC/PF 25 25 25 25 TBC Fordel B X:336078 Y:666742 Lar TBC/PF 24 24 24 24 TBC 0 0 0.000 0 0 0.000 0 0 0.000 0 0 0.000 0 0 0.000 0 0 0.000 Total 86 0 0 0 0 86 12 74 0 0 0 86 4.222 0.000 4.222 TOTAL FUNDING £0.000M OTHER NON- AHSP SG FUNDING (IF APPLICABLE) £0.000M MORE HOMES DIVISION NON SG FUNDING TOTAL £0.000M TOTAL UNIT COMPLETIONS STRATEGIC HOUSING INVESTMENT PLAN 2024/25 to 2028/29 PROJECT ADDRESS DEVELOPER UNIT COMPLETIONSGEOGRAPHIC COORDINATES (X:EASTING Y:NORTHING) FUNDING SUPPORT SOURCE Page 101 of 168
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Midlothian Council 10 October 2023 Item No 8.4 Council House Building Programme - Progress Update 2023 Report by Kevin Anderson, Executive Director, Place Report for Information 1 Recommendations Council is recommended to: a) Note the content of this report and the progress made on Phases 2 to 5; b) Note the sites now underway to complete Phase 4 and Phase 5, projected handover programme and progress related to Open Market Purchases; c) Note the potential Phase 5 sites currently under consideration to progress; and d) Note the projected costs/budget expenditure in this report. 2 Purpose of Report To update the Council on the status of the overall housing programme, on approved sites and proposed new sites for the Council new build affordable housing programme and other initiatives. Date 29th September 2023 Report Contact: Name: Greg Vettraino Contact: greg.vettraino@midlothian.gov.uk Page 103 of 168
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3 Housing Building Programme and Planned Works 3.1 Council Housing Programme – Phase 1 & 2 Sites Phase 1 provided 864 additional houses within Midlothian over a period of 7 years with a total budget of £108,700,000 and is now complete. Phase 2 targeted providing a further 412 additional homes within Midlothian within a budget of £77,121,000 funded from the Housing Revenue Capital Account enhanced with Scottish Government grant funding. 489 homes were delivered under the Phase 2 budget by that Phase’s conclusion. 3.2 Council Housing Programme - Phases 3 & 4 combined Phase 3 & 4 funding combined comprises £166,258,000 (£42,208,000 for Phase 3 and £94,050,000 for Phase 4 plus further allocated funding of £20,000,000 plus a further £10,000,000 approved at November 2022 Council). Due to actual costs being greater than initial estimates, driven by a combination of war in Ukraine, EU exit and Covid-19 impacting on building costs over recent years, the expected number of units to be delivered for the Phase 3 & 4 budgets combined has reduced from 729 to 645 units as detailed in Table 1 below. Page 104 of 168
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Table 1: Phase 3 & 4 Sites reported to Council in 2022/2023 Ref Location 2022 Position Number of Homes 2023 Position C450 Buccleuch St (excludes Retail units), Dalkeith 10 10 140 Dalhousie Mains - Springfield, Bonnyrigg 70 70 151 Dandara, Shawfair 18 18 122 Former Co-op site, 83 High St, Bonnyrigg 20 20 116 Newmills Road (former Dalkeith HS), Dalkeith 92 92 131 Burnbrae Rd Hopefield – Co-op, Hopefield 20 20 53 Morris Road, Newtongrange 79 79 149 Barratt, Millerhill/Shawfair (Barratt withdrawal) 33 0 150 Barratt, Roslin Expansion 53 53 130 (1) Newbattle HS (Phase 1), Newtongrange 90 90 C398/114 Dundas Highbank (Extra Care) St Marys, Bonnyrigg 46 46 32/34 Newbyres, Gorebridge 75 75 109 Conifer Road, Mayfield 72 72 148 Newton Church Road, Danderhall (moved to Phase 5) 23 0 142 Stewart Milne, Shawfair (moved to Phase 5) 28 0 All (Phase 3 & 4) Sites 729 645 To date, phases 1-4 of Midlothian’s affordable housing programme has delivered the following: Table 2: Delivery to date Phase Homes Phase 1 864 Phase 2 489 Phases 3&4 645 Total 1998 3.3 Council Housing Programme - Phase 5 Page 105 of 168
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Current approved budget for Phase 5 is £77.640 million however projected budget variations on previous phases and an increase in the Scottish Government Affordable Housing Supply Programme (AHSP) Grant allocation means that there is potential for a further £5.791 million to be utilised for New Social Housing. Table 3: Phase 5 Sites Ref Location Number of Homes Cumulative 155 Crichton Rd Pathhead – SHIP Ref Muir Group, South Tynewater: P41837 11 11 148 Danderhall, Newton Church Road (former leisure centre): P43833 23 34 142 Edmonstone Road, Danderhall (Stewart Milne): P43720 28 62 153 Newtongrange, St David's, former library Site: P43742 6 68 159 Edinburgh Housing Demonstrator Cluster: P43740 9 77 157 Rullion Road, Penicuik: P46386 48 125 158 Auchendinny, Bellway: P43835 71 196 156 Plot AA2/AA3, Newton Church Road, Millerhill, Bellway 34 230 153 Newtongrange, Main Street, former swimming pool 20 250 149 Plot R, Shawfair: was Barratt now Mac and Mic: P42532 33 283 tbc Plot P,Shawfair, Persimmon Homes: P43738 44 327 All Phase 5 Sites TOTAL 327 Town Centre Regeneration Midlothian Council are also developing plans for affordable housing at the heart of town centre regeneration at Newtongrange village and Dalkeith Town Centre. These plans are currently under development, with design work underway for the former pool site at Newtongrange and a Regeneration Development Framework produced for Dalkeith. The housing-led regeneration of Dalkeith is not able to call on the General Fund for its delivery. Therefore, plans for housing in the town centre cannot progress until a fully funded delivery plan for initial phases of housing in the town centre is in place. Current Programme Page 106 of 168
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The current social housing programme for 2023 is tabled below: Table 4: 2023 Site Progress Update Ref Site Name Enabling works Main Wks On site Hand over stage Handed over 32/34 Newbyres Crescent 75 116 Newmills Road, Dalkeith 92 140 Dalhousie Mains, Bonnyrigg 70 53 Morris Road, Newtongrange 79 109 Conifer Road, Mayfield 72 117 Hopefield Yard, Bonnyrigg 16 122 High Street, Bonnyrigg 21 130 Newbattle Phase 1 90 131 Burnbrae, Hopefield 13 10 150 Barratt Homes, Moat View, Roslin 32 21 151 Dandara, Shawfair, Millerhill 18 C450 Buccleuch Street, Dalkeith 10 142 Stewart Milne, Shawfair, Danderhall 28 155 Muir Group, Pathhead 11 C398 Polton Street (St Mary's) 46 Totals 75 300 115 214 Cumulative 75 375 490 704 In summary: • 214 homes have already been handed over in 2023; • 75 homes at Newbyres are at the enabling works stage with grouting works and retaining wall works completed and market prices being reviewed in October to progress to contract award; • 300 homes are on site at various stages of construction; and • A further 115 homes are on site but undergoing final snagging and in the process of final handovers. Handover Programme Page 107 of 168
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Figure 1 below illustrates the programme of 272 handovers to tenants based on current projected completions within the 2023 calendar year. Figure 1: Handover Programme At the Burnbrae site, the first phase of Passivhaus homes (10 ) have been handed over on 13 Sep 2023 with the remainder expected to be handed over in October. These are in the process of being allocated to tenants. Buccleuch Street Passivhaus homes (10) are to be handed over in October. 3.4 Routes to Development The sites confirmed as comprising Phase 5 (Table 3) can all be funded through the HRA, following the approval of the Rent Review Strategy. However their delivery is subject to availability of grant through the Scottish Government’s Affordable Housing Supply Programme. There may be potential to bring more sites into Phase 5, however this would only be if there is slippage in the programme from sites already included. With regard to future potential sites, subject to securing further funding, there are currently 4 known routes to potential development. Direct build on land already owned by Midlothian. 0 20 40 60 80 100 120 140 Programmed Handovers 2022-24 as at Sept 2023 Page 108 of 168
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Available Midlothian land suitable for social housing is now limited. Land that remains is often more difficult to develop in terms of site abnormals and is often smaller in overall site size and number of units with resultant loss of economies of scale. Available sites have recently been evaluated for potential inclusion in the Edinburgh Home Demonstrator project procurement initiative (see below). Whilst some sites have been eliminated as being unsuitable others are being looked at for possible inclusion/ feasibility assessment. To date 3 sites have been confirmed for development, all of which will progress subject to planning and other statutory consents as well as provision of grant funding from the Scottish Government. i. Newtongrange Church Hall site - Current proposal is 6 homes (currently 5 approved in principle). This site is being considered for offsite modular construction. ii. Eastfield Drive, Penicuik - Current proposal is 4 homes iii. Lyne Terrace, Penicuik - Current proposal is 7 homes (however there remains some planning risk against this progressing) * Housing Developer S75 affordable element The Council has the opportunity to secure affordable housing via a planning obligation secured through Section 75 agreements with developers, securing 25% of the total number of homes built as affordable. As a means to procurement, the Council has the opportunity to either: i. enter into land purchase/design & build contracts with these developers or ii. purchase completed houses from these developers. Utilising support from legal and estates colleagues in either scenario with developers has proven to work. House type and specification varies however between developers, and each requires significant detailed review and discussion in order to ensure these are acceptable to the Council. Developers are requested to adopt where possible design and specification requirements aligning to those of the Council. There will be instances where housing development team officers will have to make concessions. For example, no developer to date has come forward with the capability to build to Passivhaus standard. Council officers have worked hard however to secure the best result possible in terms of energy consumption and generally obtain energy performance well in excess of the developer’s own private housing stock. Sites with Developers for completed home purchases (turnkey) or Land Purchase/Building Design & Build Contracts are located in Table 5. Page 109 of 168
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Table 5: Homes deliver via Planning Obligations Midlothian Social Housing - Developer affordable sites update Completed Ref Location Number of Homes Completed 119 Millers, Shawfair 23 2020 134 Barratts, Paradykes Loanhead 21 Jan-21 144 Barratts, Roslyn 13 May-21 118 Bellway - Danderhall, Shawfair 47 Jan-22 146 Bellway - Wester Cowden, Dalkeith 27 Jul-22 140 Springfield,Dalhousie Mains - Bonnyrigg 70 Nov-22 151 Dandara, Shawfair 18 Jul-23 On site Ref Location Number of Homes Handover 150 Barratt, Roslin Expansion 53 Jun - Nov 23 155 Muir Homes, Crichton Road, Pathhead 12 Dec-24 142 Stewart Milne - Shawfair 28 Feb-25 Potential future sites Ref Location Number of Homes Handover 156 Bellway AA2/AA3 tbc tbc 157 Cala - Rullion Road - (Acquisition only) tbc tbc Bellway Auchendinny tbc tbc Shawfair Plot R tbc tbc Springfield (ex Mac & Mic site) tbc tbc Persimmon Plot P tbc tbc Land acquisition and direct build Page 110 of 168
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Whilst this is an option, finding land available suitable for social housing and affordable to the Council has become a rarity. Where developers have a land acquisition opportunity to satisfy their Section 75 obligations in relation to affordable homes, this is actively being explored. Land acquisition recently at Rullion Road, Penicuik from CALA is an example of this scenario. There are currently no other sites currently under consideration by Council officers however opportunities in the marketplace will be actively explored if and when they arise. 3.5 Edinburgh South East Scotland Home Demonstrator Programme The Council housing development team have expressed willingness for Midlothian Council to be a South East (SE) Partner within the EHD Programme (Pilot 3 element). It involves a collaborative procurement incorporating several local authorities/RSLs across multiple sites for a feasibility commission initially. This will be carried out utilising a common design team with standardised house types developed to improve efficiencies in production. The Collaborative Feasibility commission will provide a clear set of deliverables for each site that will create the conditions for successful delivery and bundling. The City of Edinburgh Council (CEC) have acted as Lead Authority to procure the initial feasibility work for all sites. For the Pilot 3 phase, actual project procurement and delivery of Midlothian EHD allocated sites will be handled by Midlothian Council directly. To become cost effective, off site construction benefits from sufficient volume to offset initial factory tooling and set up costs. It is anticipated that the use of standard design house types, developed through consultation with the various participating authorities, will result in better economies of scale. The intention is that all partners procure in the same manner. Part of the model is to engage the offsite manufacturer early in the process and the procurement will need to reflect that. 3.6 Zero Carbon In compliance with the Council’s Climate Emergency Declaration, officers developed a new Net Zero Housing Design Guide which incorporates within its design brief the need to target a Zero Carbon approach with an ambitious implementation plan and a requirement to meet Passivhaus standards. Passivhaus is an internationally known standard with exceptionally high energy efficiency working to achieve buildings close to Zero Carbon and in turn address fuel poverty issue (as heating demand is minimised) in a time of ever-increasing fuel bills. The Development Team has integrated Passivhaus into the social housing procurement programme wherever possible. This has resulted Page 111 of 168
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in Midlothian becoming one of the leading providers of new Passivhaus social housing in Scotland. Passivhaus is a fully tried and tested solution with guaranteed performance outcomes. The following Council projects currently under construction or which will deliver Passivhaus homes are: Table 6: Midlothian Council Passivhaus Sites Ref Location Number of Homes Status C450 Buccleuch St (excludes Retail Homes), Dalkeith 10 Handover Oct 23 122 High Street, Bonnyrigg 20 On site 131 Burnbrae Rd Hopefield – Co-op, Hopefield 20 part handed over – all by Oct 23 130 (1) Newbattle HS (Phase 1), Newtongrange 90 Enabling wks complete – award imminent C398/114 Dundas Highbank (Extra Care) St Marys, Bonnyrigg 46 Enabling wks complete – award imminent 148 Danderhall, Newton Church Road (former leisure centre): P43833 23 Awaiting Planning Consent 116 Newmills Road, Dalkeith 2 On site – handover expected Sep/Oct 23 Total 191 While comparator costs are set out in Table 7 below, the assessment of the specific impact of building to a Passivhaus standard on cost is difficult to ascertain because of the volatile market and high inflation on projects from factors such as Covid-19, EU exit and the war in Ukraine, which have all impacted the construction sector. A direct comparison is not possible as elements such as site abnormals, which will also impact on the overall development cost need to be extracted from the tenders and any site infrastructure costs. Table 7: Development Costs – Passive & Non-Passive Page 112 of 168
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Site Projected Number of Units Contract Cost Contract Cost per Unit Projected Dev Cost Cost Per Unit Passivhaus Site Site 26 Buccleuch St 10 2,543,000 254,300 3,302,760 330,276 Site 122 Bonnyrigg High Street (all 1 bedroom) 20 5,223,000 261,150 6,480,000 324,000 Site 130 Newbattle 90 25,867,000 287,411 30,731,000 341,456 Non - Passivhaus Site Site 109 – Conifer 72 15,236,000 211,611 18,419,000** 255,819 Site 116 - Newmills Road 92 19,555,000 212,554 22,719,000 246,946 Site 117 - Cockpen Terrace** 16 3,967,000 247,938 4,840,000 302,500 Site 53 Morris Road, Newtongrange 79 11,685,000 147,911 14,448,000 182,886 *Additional £350k cost expected **Cockpen Terrace was built to enhanced energy standards, triple glazing, additional insulation, ASHP, a heat recovery system and multiple PV panels that heat the hot water when there is a surplus of electricity generated by the panels. To try and look at this in more detail two sites recently tendered by the same contractor at Newbattle (Passivhaus specification) and Conifer Road Mayfield (Building Regulations silver active standard) were analysed by external cost consultants to try and determine the difference in cost of construction between the two. Following this detailed analysis, it was determined that there very little difference in the tendered build costs between the Passivhaus and Non- Passivhaus. This was deemed inconclusive however as the tenderer subsequently withdrew from the Passivhaus tender process at Newbattle, therefore a final price was not concluded. 3.7 Grant Funding Officers continue to pursue available grant monies to assist in land purchases/construction of Council housing in Midlothian. More detail on grant funding is available in Midlothian’s Strategic Housing Investment Plan. Regular meetings with the Scottish Government are undertaken to update programme and ensure spend is maximised. Page 113 of 168
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The Scottish Government have advised (August 2023) that the 2023/2024 funding requirement for the East of Scotland currently stands at £16.428m however the approved budget at present is £10.534m with the Council’s projected funding from that totalling £10.044m. 3.8 Open Market Purchases Midlothian Council has an Open Market Purchase Scheme whereby ex-council properties are purchased on the open market and returned to use as social rented housing stock. Midlothian Council receives funding towards each Open Market Purchase from the Scottish Government. Between 2017/18 and 2021/22, Midlothian Council bought 98 properties from the open market. There have been 11 successful purchases in the current financial year to date with a target of 26 by March 2023. 4 Report Implications 4.1 Resource All the costs of employing the necessary members of Housing Development Team staff are included in the project budgets. Staff resourcing is continually being re-evaluated to ensure that sufficient resources are in place to effectively manage this. Particular emphasis has been placed on recruitment of additional site quality control personnel to ensure build quality remains at the highest standards. 4.2 Risk The key programme risks for the affordable housing programme are: • Escalating costs due to inflation in the construction sector. • Current unavailability of funding through the Housing Revenue Account to support the extension of the programme beyond Phase 5. • Limited resources within the Development Team to support the delivery of the programme and difficulties in recruitment. • Potential risk to future funding from the Scottish Government. Funding Without further funding the Midlothian new social housing project cannot progress beyond Phase 5. Recession impacting on developer sites. There has been a recent dip in house market sales in the private sector which may cause Developers to rethink the viability of their sites and may potentially put sites on hold. If so, potential Midlothian Developer sites for Phase 5 may be at risk of being put on hold. Page 114 of 168
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Scottish Water Capacity issues Council officers continue to liaise with Scottish Water re future potential Council housing developments and be considered for inclusion in infrastructure capacity upgrades. Site availability Midlothian has exhausted the majority of available land that it owns, and which is suitable for housing development. Sites that remain are generally those that had low viability/significant site abnormals. The potential remains for further sites to become available via Council building closures. Covid-19 Currently no significant risk to project delivery is being associated with future Covid 19 outbreaks. This is being monitored however the situation appears to have stabilised. EU exit Currently no significant risk to project delivery is being associated with EU exit. The situation appears to have stabilised however it may still be impacting on inflation. 4.3 Single Midlothian Plan Themes addressed in this report: • Adult Health Care and Housing • Sustainable Growth 4.4 Impact on Performance and Outcomes The proposed works support the Council’s Local Housing Strategy and accord with Midlothian Council’s Corporate Priorities. The Scottish Government requires all local authorities to prepare a Strategic Housing Investment Plan (SHIP) that identifies the main strategic investment priorities for affordable housing over a 5 year period. This is required on an annual basis as the Scottish Government requires detail on the Affordable Housing Supply Programme in each regional area towards meeting the national target of supporting new affordable homes. The SHIP sets out Midlothian Council’s approach to promoting affordable housing investment and meeting housing supply targets identified in the Housing Need and Demand Assessment for Edinburgh and South East Scotland. The delivery of more affordable housing remains a high priority for Midlothian Council. Despite significant investment in affordable Page 115 of 168
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housing there is still a shortage of affordable housing in Midlothian with 4,468 households placed on the Council’s Housing List. 4.5 Adopting a Preventative Approach Reviewing and utilising different procurement options in order to promote early delivery. 4.6 Involving Communities and Other Stakeholders Consultations internally and externally continue to be carried out with all appropriate stakeholders ensuring input/comment on the proposed layouts / house types and mix. This will be undertaken for the additional sites. 4.7 Ensuring Equalities An Integrated Impact Assessment (IIA) has been undertaken on the Local Housing Strategy 2021-26 to ensure that the needs of local communities have been fully considered. The Strategic Housing Investment Plan 2024/25 – 2028/29 reflects identified needs and draws on findings from the IIA when considering the implications flowing from the translation of strategic aims into housing policies. 4.8 Supporting Sustainable Development The new build housing programme will comply with all current building regulations and follows best practice in line with the Council’s policies on the environment. In compliance with the Council’s Climate Emergency Declaration, the design brief has been amended to assist in the move to a Zero Carbon approach. We are currently pursuing a requirement to meet Passivhaus standard, an international proven standard which achieves low energy design through its fabric first approach. It also helps address fuel poverty issues as heating demand is minimised, an increasingly important factor with the move away from Natural Gas to electric based heating systems. All projected costs for future developments accommodate the enhanced specification. The Council’s Climate Change Emergency provides that the Council will aim to achieve Net Zero Carbon in all its activities by 2030. The RIBA have published target metrics for domestic buildings which to achieve a 2030 Net Zero Challenge require that new domestic dwellings achieve a target of between 0 and 35kWh/m2/yr. Passivhaus is a means of achieving this target however the construction process itself produces Carbon (so called ‘embodied carbon’). Officers are currently considering the implications of reducing embodied carbon which if 2030 Net Zero Challenge is to be met will require a target of less than 300KgCO2e/m2 (embodied carbon per meter squared) to be achieved in construction. Initiatives such as the Edinburgh Homes Demonstrator (EHD) Project previously mentioned, Page 116 of 168
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and the adoption of Whole Life Carbon Analysis may provide the means of achieving these goals. Fundamental to all new Passivhaus projects will be the need to undertake Post Occupancy Evaluation (POE) surveys to assess how effective projects are achieving these sustainability goals. Future involvement of Building Maintenance and other stakeholders in all of these initiatives will be fundamental to their success and developing the Council’s understanding of the implications of these changes towards achieving Net Zero targets. 4.9 Digital Building Information Modelling (BIM) is being utilised to deliver the projects. “Revit” models exist for the Council’s generic house types and flat types which get updated to reflect new legislation and design criteria. It is proposed that these models will be used for the completion of all Phases (with the exception of some Developer affordable sites where developer house types may have been adopted to allow for inclusivity, or EHD sites) The adoption of 3d modelling will also have a key role in assessing the sustainability of house designs and key construction approaches particularly in respect avoiding ‘cold bridges’ which impact on thermal effectiveness and also can be used to assess the embodied carbon content of each element of the construction. Council officers have been equipped with homeworking IT capability to enable them to continue to work in any changing work practice situation. Site Quality Inspection staff have all been equipped with SurfacePro tablets instead of laptops to allow them to have the ability to operate these on site and view drawings and make comments on screen much faster and easier. This will in turn provide more effective and efficient delivery of the service. Page 117 of 168
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Midlothian Council Tuesday 10 October 2023 Item No 8.5 Midlothian Council’s Housing Services Assurance Statement 2023 Report by Kevin Anderson, Executive Director - Place Report for Decision 1 Recommendations of Report Council is recommended to approve the Annual Assurance Statement (AAS) attached at Appendix 1 for submission to the SHR by 31 October 2023. 2 Purpose of Report/Executive Summary To comply with the Scottish Housing Regulator’s (SHR) Regulatory Framework, the Council must approve and submit an AAS each year providing assurance that it is meeting legislative and regulatory standards for social housing in Scotland. This report explains the Regulatory Framework and appends an Assurance Statement for approval by Council. The AAS confirms the Council fully meets the SHR required standard and outcomes. Following Council approval, the AAS will be published on the SHR and Midlothian Council’s websites. Date: 14 September 2023 Report Contact: Claire Douglas, Housing Services Manager Email: Claire.Douglas@midlothian.gov.uk Page 119 of 168
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2 3 Background 3.1 The Housing (Scotland) Act 2010 sets out the requirement for a Scottish Social Housing Charter (SSHC) and the statutory objectives, functions, duties and powers of the SHR. 3.2 The SSHC sets the standards and outcomes that all social landlords should aim to achieve when performing their housing activities. The SHR monitors, assesses and reports on the SSHC. The SHR’s statutory objective is to safeguard and promote the interests of current and future tenants, people who are homeless, factored owners and Gypsy/Travellers. Scottish Social Housing Charter November 2022 - gov.scot (www.gov.scot) 3.3 A Regulatory Framework sets out the approach to regulation. Regulatory Framework | Scottish Housing Regulator The SHR monitors, assesses, reports and intervenes (as appropriate) in relation to Scottish social landlord performance and housing activities. The current framework came into force in April 2019 and it requires all social landlords to submit an AAS providing assurance that their organisation complies with the relevant requirements of Chapter 3 of the framework. 3.4 The AAS provided at Appendix 1 replaces the AAS submission for 2022 approved by Council in August 2022. 3.5 As the governing body, Midlothian Council is required to approve Midlothian Council’s Housing Services Assurance Statement annually, provided at Appendix 1, and an Annual Assurance Statement of Compliance, provided at Appendix 2. 3.6 All Scottish social landlords are required to report performance to the SHR annually through the Annual Return on the Charter (Midlothian Council submitted this in May 2023) and a 2023 report to tenants. 3.7 During 2022/23 SHR reviewed and compared the data for all local authorities from the Scottish Government’s national homelessness statistics and the Annual Returns on the Charter. The SHR also spoke with all local authorities to gather further information and assurance about their homelessness services. Midlothian’s Engagement Plan March 2023/24 details, to assess the risk to people who are threatened with or experiencing homelessness. Midlothian Council is to focus on the assessment of homelessness applications, the provision of appropriate temporary accommodation and the outcomes of people who are homeless. Page 120 of 168
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3 3.8 Midlothian Council has a statutory responsibility to anyone threatened with or experiencing homelessness. Midlothian Council has existing scrutiny and performance structures in place to ensure assurance can be given that housing services are delivered in accordance with legislation, regulatory standards and best practice guidance. Midlothian Council can give assurance in compliance with all of the statutory obligations, including The Homeless Persons (Unsuitable Accommodation) (Scotland) Amendment Order 2017. 4 Report Implications 4.1 Resource There are no additional resource implications related to this report. 4.2 Risk There are no risk implications related to this report. 4.3 Digital There are no digital implications related to this report. 4.4 Ensuring Equalities (if required a separate IIA must be completed) The contents of this report were considered under the Council’s Integrated Impact Assessment process and it was determined that undertaking such an assessment was not required. 4.5 Appendices Appendix A – Report Implications Appendix B – Annual Assurance Statement Appendix C – Annual Assurance Statement Assessment of Compliance Page 121 of 168
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4 APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan Delivering housing services in accordance with legislation, regulatory standards and best practice guidance contributes to reducing the gap in health outcomes and economic circumstances. Improving the quality of life for Midlothian’s citizens and safeguarding housing assets for future generations. A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value The AAS support the delivery so that tenants and other customers receive services that provide best value for money for the rent and other service charges they pay. We continue to secure continuous improvement in performance while maintaining an appropriate balance between quality and cost. A.5 Involving Communities and Other Stakeholders Information sharing and consultation takes place with the Midlothian Tenants Panel. The AAS will be made available on the Council’s website along with the SHR’s Landlord Performance Report and Engagement Plan. A.6 Impact on Performance and Outcomes The SHR requires all social landlords to submit an AAS providing and evidencing assurance. Page 122 of 168
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5 A.7 Adopting a Preventative Approach Not applicable. A.8 Supporting Sustainable Development Not applicable. Page 123 of 168
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Corporate Solutions Place Directorate Midlothian Council Midlothian House 40-46 Buccleuch Street Dalkeith Kevin Anderson EH22 1DN Executive Director Place Midlothian Council Assurance Statement 2023 Midlothian Council complies with the regulatory requirements set out in Chapter 3 of the SHR Regulatory Framework. This includes that we: • Achieve all the standards and outcomes set out in the Scottish Social Housing Charter for tenants, people who are homeless and others who use our services; • Comply with our legal obligations related to housing and homelessness, equality and human rights and tenants’ and residents’ safety. I can confirm I have considered sufficient evidence, which to the best of my knowledge and belief, gives assurance of compliance with the Regulatory Framework. We approved our Annual Assurance Statement at the Council meeting held on 10 October 2023. Signed: Date of Signing: Councillor Stuart McKenzie, Cabinet Member for Housing Services Page 125 of 168
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Appendix C Assured - Green Scottish Housing Regulator (SHR) - Annual Assurance Statement (AAS) Assessment of Compliance SHR Requirement Status Evidence Action Prepare an AAS in accordance with published guidance, submit it to the SHR between April and 31st October 2023 and make it available to tenants and other service users. Assured - Green Council Report and Appendices approval on 10 October 2023. The ASS is published on the Council website at http://www.midlothian.gov.uk/info/917/housing/323/housing_strategy_and_performance and can be provided in other formats as requested. The tenants newsletter posted on social media platforms will provide information on and how to access the 2023 AAS. Housing pop up meeting was held on 8th June in Dalkeith Library. Notify the SHR during the year of any material changes to the assurance on our AAS. Assured - Green There are no material changes to report at present. The Council provides the SHR with regular performance information and updates on areas for improvement identified in the Council's Engagement Plan. Officers also met with SHR in-person on 18th May 2023 to discuss the governance of the Assurance Statement 2023. Governance of the Assurance Statement Assured - Green Executive Director Place has weekly briefing meetings with the Cabinet member for housing and the Chief Officer of Place has regular meetings. Once a year we hold a housing briefing session for elected members. We also participate in the SHN benchmarking and annual presentation. Regular meetings held with the Housing Cabinet member to ensure compliance with the requirements and standards and space to disclose areas to improve. Quarterly housing reports and monthly performance indicators to governance forums for scrutiny and challenge. Local hub meeting for benchmarking against other landlords. Internal Audit of services. Feedback from our customer complaints/requests. Risk register. Estates Safety and Maintenance group. Building Maintenance Services review. Whistleblowing policy. Scottish Housing Network events. Have assurance and evidence that we are meeting all our legal obligations associated with housing and homelessness services, equality and human rights, and tenant and resident safety. Assured - Green Housing services are delivered in accordance with legislation, regulatory standards and taking account of best practice guidance. The focus of the Housing Service has been ensuring the health and safety of tenants, other service users and Council employees, whilst maintaining core services and providing reassurance and contact for tenants and service users. This has been done in accordance with guidance issued by the Scottish Government, Public Health Scotland and the SHR. Policies and procedures provide clear direction to the Housing Services staff and are reviewed regularly to ensure they continue to be in line with best practice. The Making Performance Matter Appraisal process supports staff to achieve work related objectives linked to service / corporate plans and provide good levels of service to customers. Internal audit reviews are carried out. Audits are reported to Audit Committee and development plans implemented. Housing Services data is reported quarterly to the Council's Cabinet and the Performance, Review and Scrutiny Committee. The Council is a member of the Scottish Housing Network and benchmarks performance against peer local authorities and regularly engages with best practice networks in a culture of scrutiny connected to performance management. Currently transferring data sets to a new computer data base Capita Housing ONE system, which will provide access for recording of all data. Notify the SHR of any tenant and resident safety matters which have been reported to or are being investigated by the Health and Safety Executive, or reports from regulatory or statutory authorities, or insurance providers, relating to safety concerns. Assured - Green No health and safety matters have been reported to the Health and Safety Executive in the last 12 months. There are no reports from regulatory or statutory authorities relating to safety concerns. The Scottish Government’s SHQS technical guidance sets out the requirement for an Electrical Installation Condition Report (EICR) to be carried out in each property at least every five years to demonstrate compliance with element 45 of the SHQS. We are currently in the procurement process for a contractor to complete this works. This will be an ongoing contract of works working towards completion of all EICR by September/October 2025 Page 127 of 168
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Make our Engagement Plan easily available and accessible to our tenants and service users, including online. Assured - Green The Council's current Engagement Plan is published on the Council website at http://www.midlothian.gov.uk/info/917/housing/323/housing_strategy_and_performance The Engagement Plan also features in the tenant newsletter. Submit an Annual Return on the Charter to the SHR each year in accordance with the SHR published guidance. Assured - Green The Annual Return was completed and submitted for 2023. Involve tenants, and where relevant, other service users, in the preparation and scrutiny of performance information. We must: agree our approach with tenants; ensure that it is meaningful - that the chosen approach gives tenants a real and demonstrable say in the assessment of performance; publicise the approach to tenants; ensure that it can be verified and be able to show that the agreed approach to involving tenants has happened; involve other service users in an appropriate way, having asked and had regard to their needs and wishes. Assured - Green The Tenant Participation and Customer Engagement Strategy 2020-23 sets out the framework for tenant scrutiny opportunities and is available on the Council's website at https://www.midlothian.gov.uk/info/200277/tenancy/224/tenant_participation . Funding is provided to support tenant participation and engagement. Feedback from homeless service users has shaped the Council's Rapid Rehousing Transition Plan in respect of further transforming services. Report our performance in achieving and progressing towards the Charter outcomes and standards to our tenants and other service users. We must agree the format of performance reporting with tenants, ensuring that it is accessible for tenants and other service users, with plain and jargon free language. Assured - Green The annual performance report is provided to tenants and is available on the Council's website at http://www.midlothian.gov.uk/info/917/housing/323/housing_strategy_and_performance There are a range of ways tenants can engage with the Housing Service to discuss performance and influence the format and design of the annual performance report. Tenant Participation officer When reporting our performance to tenants and other service users we must: provide them with an assessment of performance in delivering each of the Charter outcomes and standards which are relevant to the Council; include relevant comparisons - these should include comparisons with previous years, with other landlords and with national performance; set out how and when we intend to address areas for improvement; give tenants and other service users a way to feed back their views on the style and form of the reporting. Assured - Green In addition to published quarterly performance data reported to the Council's Cabinet and also the Performance, Review and Scrutiny Committee, the annual performance report provides a comparison with other councils based on the Scottish Housing Network's peer group system. The report compares the Council's performance with the Scottish average and if performance has improved or deteriorated over the previous year. A narrative is provided highlighting key points and identifies areas for improvement. ARC data, SHN benchmarking data, Homelessness statistics. Make the SHR report on our performance easily available to our tenants, including online. Assured - Green The current SHR report is available on the Council's website at http://www.midlothian.gov.uk/info/917/housing/323/housing_strategy_and_performance The tenant newsletter provides information on how to access the SHR reports, and this will also be published on the Council's website. Have effective arrangements and a policy for whistleblowing by staff and elected members, which it makes easily available and which we promote. Assured - Green The Council's current Whistleblowing Policy is subject to review at present by the Integrity Group. Details are available for staff on the Council's intranet site. Policies in respect of fraud, corruption and bribery are available to members of the public on the Council's website and staff undertake mandatory eLearning training. Concerns can be reported by telephone and email. https://www.midlothian.gov.uk/forms/form/57/en/report_a_possible_crime_fraud_or_similar_c oncern Page 128 of 168
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Make information on reporting significant performance failures, including the SHR leaflet, available to tenants. Assured - Green A link to the SHR website is available on the Council's website at http://www.midlothian.gov.uk/info/917/housing/323/housing_strategy_and_performance The tenant newsletter provides annual reminder information on reporting significant performance failures. Provide tenants and other service users with the information they need to exercise their right to complain and seek redress and respond to tenants within the timescales outlined in our service standards, in accordance with guidance from the Scottish Public Services Ombudsman (SPSO). Assured - Green The complaints handling process is available on the Council's website (and link provided on the front page of the website) at https://www.midlothian.gov.uk/info/670/have_your_say/132/complaints_procedure. Leaflets are available in Council buildings used by members of the public and referred to in written and verbal communications as appropriate with customers. The complaints process is highlighted at the new tenant settling-in visit undertaken within the first 4-6 weeks of tenancy start date. The tenant newsletter will provide annual reminder information on the complaints handling procedure. The tenants handbook also provides details. Information on how to contact the SHR if dissatisfied with services is available on housing pages on the Council Website Ensure we have effective arrangements to learn from complaints and from other tenant and service user feedback, in accordance with SPSO guidance. Assured - Green Complaints performance data is considered at the Housing Services monthly performance review meeting attended by senior officers. This includes details of complaints received, outcomes and lessons learned where service failures are identified, and remedial action is taken to improve service. Housing Services complaints data is reported to the Council's Cabinet and also the Performance, Review and Scrutiny Committee. Mandatory eLearning training on Customer First and Complaints handling is undertaken by all staff to ensure they have the necessary skills, knowledge and confidence. New Council wide complaints system platform was implemented April 2023. Complaints and opportunities to learn from failures in the services are discussed at team meeting and as part of individual performance monitoring as necessary. Have assurance and evidence that we consider equality and human rights issues properly when making all of our decisions, in the design and review of internal and external policies, and in day to day service delivery. Assured - Green The Council's Equality Plan commits services to meeting the requirements of equalities legislation and promoting an equal opportunities culture. The Equality Mainstreaming Outcome Progress report sets out how the Council integrates equality across activities and functions when delivering services. These reports are published on the Council's website at https://www.midlothian.gov.uk/info/200286/equality_and_diversity/136/equality_and_diversity _-_our_commitment. The Council's Integrated Impact Assessment (IIA) tool is used to ensure the consideration of equality and human rights issues and the impact of decisions on those with protected characteristics. All new and existing housing policies and procedures are considered as part of a wider scope in the IIA, including socio-economic inequality, health inequality, human rights, environmental and sustainability matters. The Council's Equality/Diversity Officer is consulted when new policies, plans, strategies are being reviewed, renewed or developed though the IIA process. This helps to ensure that the needs of all our customers are met. The Council meets its legal requirements in respect of the corporate reporting. Equalities considerations are a standing item for consideration in all Council Reports being considered by Elected Members and the Corporate Management Team. The Council's Equality / Diversity Officer delivers appropriate training to the staff teams regarding equality and diversity awareness and IIA toolkit and guidance. Undertake discussions with the Council's Engagement Officer and Midlothian Peoples Equality Group, which is a group of that represent all the protected characteristics, to establish arrangements to encourage feedback on future policies, plans, strategies. To comply with these duties, we must collect data relating to each of the protected characteristics of our existing tenants, new tenants, people on waiting lists, governing body members and staff. We must also collect data on protected characteristics for people who apply to us as homeless and those who live on our Gypsy / Traveller site. Assured - Green Midlothian Council collects data relating to protected characteristics for the specified groups. Housing application and Homelessness applications. Page 129 of 168
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Midlothian Council Tuesday 10 October 2023 Item No 8.6 Edinburgh and South East Scotland City Region Deal (ESESCRD) Annual Report 2022 - 2023 Kevin Anderson, Executive Director Place Report for Information 1 Recommendations Council is recommended to note the Edinburgh and South East Scotland City Region Deal (ESESCRD) Annual Report 2022-2023. 2 Purpose of Report/Executive Summary This report summarises the key findings on the appended City Region Deal Annual Report as approved by the City Region Deal Joint Committee on 1 September 2023. Each year, the City Region Deal Programme Management Office is required to produce an annual report to assess how well the City Region Deal is aligning towards the overall vision and inclusive growth outcomes for the city region. Date 14 September 2022 Report Contact: Kevin Anderson, Executive Director Place Kevin.Anderson@midlothian.gov.uk Page 131 of 168
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2 3 Background/Main Body of Report 3.1 The Edinburgh and South East Scotland City Region Deal was signed by the First Minister, Prime Minister and City Region Leaders on 7 August 2018 and 2023 marks the fifth year anniversary. 3.2 The Edinburgh and South East Scotland City Region Deal Annual Report summarises progress of the Programme for the fourth year since the signing of the 15-year programme (August 2022 to July 2023). 3.3 The report contains a City Region Deal overview, Financial Statement (for the financial year 2022-23), a short summary of progress on each project and programme and expected milestones to be achieved in the next year. Six case study videos are embedded in the report to demonstrate how the Deal’s projects and programmes are benefiting people. 3.4 The report shows significant progress across the 20 projects and programmes within the City Region Deal. While cost inflation has affected the budget of some of the projects which are in delivery, all projects are considered to be within acceptable time parameters and all but one project is considered to be within acceptable budget parameters. • 2 projects are in Stage 1: Define, which means that the project’s business case is yet to be completed (same as in 2022); • 9 are Stage 2: Implement, which means that the project’s business case has been approved by Joint Committee and is in the process of being implemented (15 in 2021); • 12 are Stage 3: Deliver, which means that the project has been implemented and is working towards delivering its objectives (6 in 2022); • 15 projects are considered to be on target to be completed on time (green score) or have been completed on time (14 in 2022); • 8 projects are delayed, but considered to be within an acceptable range, with management action in place to address the issue (amber score). (9 in 2022); • 17 projects are considered to be on target to be completed within the specified budget (green score) or have been completed within the specified budget (19 in 2022); • 2 projects were projected to cost more than the specified budget, but considered to be within an acceptable range, with management action in place to address the issue (amber score). (2 in 2022); and Page 132 of 168
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3 • 1 project is projected to spend out with the acceptable budget (red score) (none in 2022) 3.5 As well as delivering on the projects in the Deal, the annual report demonstrates that the Governance structure, established to manage City Region Deal activity, has also enabled effective and strong regional partnership working on important cross-regional activities, including: • Developing and publishing a Regional Prosperity Framework for Delivery which will be a catalyst for Regional Prosperity (led by a cross- regional officers’ team, steered by the Regional Enterprise Council and overseen by the Elected Member Oversight Committee); • Identifying propositions for regional collaboration that align with the UK Government’s Shared Prosperity Fund. • Continuing to develop ESESCommunities portal to assist with delivering community benefits across the programme; • Working with CLES to develop and implement the ‘Community Wealth Building Framework for Action’. 4 Report Implications (Resource, Digital and Risk) 4.1 Resource There is no financial impact relating directly to this report. The Financial Statement shows that £58.8 million of Government money was drawn down in 2022/23, in line with the financial plan. 4.2 Digital Not applicable 4.3 Risk Not applicable 4.4 Ensuring Equalities (if required a separate IIA must be completed) An IIA is not required 4.5 Additional Report Implications (See Appendix A) See Appendix A Appendices Appendix A – Additional Report Implications Appendix B – ESESCRD Annual Report Page 133 of 168
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5 APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan Not applicable A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value Not applicable A.5 Involving Communities and Other Stakeholders Inclusion and sustainability are key drivers for the City Region Deal. Business cases for projects included demonstrate how they will reduce inequalities and tackle the inclusion challenges specific to the city region. A.6 Impact on Performance and Outcomes Not applicable A.7 Adopting a Preventative Approach Not applicable Page 135 of 168
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6 A.8 Supporting Sustainable Development Scottish and UK Government have provided joint guidance for project owners on managing potential carbon emissions associated with Scottish City Region and Regional Growth Deal projects. It accords with HM Treasury Green Book requirements and supports the quantification and minimisation of whole life carbon Appendix B – ESESCRD Annual Report 2022-2023 ESESCRD Annual Report – accessible version https://esescityregiondeal.org.uk/s/City_Region_Deal_AnnualReport_202223 _A4_08.pdf ESESCRD Annual Report – interactive version https://indd.adobe.com/view/a2dff8f2-a373-4568-909f-e07dfaf6caec Page 136 of 168
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Midlothian Council Tuesday 10 October 2023 Item No 8.7 Edinburgh and South East Scotland City Region Deal – Concordat with SEStran Kevin Anderson, Executive Director Place Report for Decision 1 Recommendations Council is recommended to approve the proposed Concordat between Edinburgh and South East Scotland City Region Deal and SEStran and note that this will also be considered for joint approval by the other five constituent Local Authorities in the Edinburgh and South East Scotland City Region (ESESCR). 2 Purpose of Report/Executive Summary This Concordat demonstrates the commitment between SEStran and ESESCRD to work together in support of further integrating economic development, transport and land use planning and delivery in the Edinburgh and South East Scotland city region. It sets out how both bodies will align their activities to ensure that regional plans can deliver shared outcomes through targeted transport interventions. It also describes how new transport interventions will progress, from strategy to delivery, through the appropriate governance structure(s), depending on the activity. Date 29 September 2023 Report Contact: Kevin Anderson, Executive Director Place Kevin.Anderson@midlothian.gov.uk Page 137 of 168
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2 3 Background/Main Body of Report 3.1 The South East of Scotland Transport Partnership (SEStran) is the statutory Regional Transport Partnership for the South East of Scotland. SEStran encompasses eight local authorities: City of Edinburgh, Clackmannanshire, East Lothian, Falkirk, Fife, Midlothian, Scottish Borders and West Lothian. 3.2 SEStran has the statutory function of producing the Regional Transport Strategy (RTS) and measuring and monitoring its implementation. It also works with constituent Councils and partner Health Boards who have a duty to perform their functions in such a way as to be in line with the RTS. SEStran aims to address a range of transportation issues, and to work towards a more sustainable and efficient transport network, in line with the National Transport Strategy. 3.3 SEStran contributes to a varied range of transport projects and events as well as partnership working with various organisations. It supports the aspirations of the various economic plans across the region and specifically the City Region and Growth Deals which have been adopted by its constituent councils. SEStran is represented on the Edinburgh and South East Scotland City Regional Deal (ESESCRD) Transport Appraisal Board (TAB) 3.4 SEStran and ESESCRD believe that there is also real merit in working between Regional Transport Partnerships, there is a need to address cross regional issues including programmes or projects that have or would benefit from cross or pan regional co-ordination. 3.5 Effective leadership is required at all levels of policy and decision making to ensure that economic development and transport investment is well planned and integrated in support of the outcomes of the above approach. SEStran and ESESCRD are committed to the following: • a shared vision for integrating economic development, land-use and transport planning and provision; • the joint aspirations of inclusive economic growth and climate action; • areas of joint working (see Section 4); and • principles of engagement (see Section 5). 3.6 SEStran and ESESCRD believe that there is also real merit in working between Regional Transport Partnerships, there is a need to address cross regional issues including programmes or projects that have or would benefit from cross or pan regional co-ordination and have developed the Concordat included at Appendix1 Page 138 of 168
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3 4 Report Implications (Resource, Digital and Risk) 4.1 Resource No additional resource requirement 4.2 Digital Not applicable 4.3 Risk Not applicable 4.4 Ensuring Equalities (if required a separate IIA must be completed) An IIA is not required 4.5 Additional Report Implications (See Appendix A) See Appendix A Appendices Appendix A – Additional Report Implications Appendix B – Concordat between SEStran and Edinburgh & South East Scotland City Region Deal Page 139 of 168
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4 APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan Not applicable A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value Not applicable A.5 Involving Communities and Other Stakeholders Not applicable A.6 Impact on Performance and Outcomes Not applicable A.7 Adopting a Preventative Approach Not applicable A.8 Supporting Sustainable Development Not applicable Page 140 of 168
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1 Concordat between SEStran and Edinburgh & South East Scotland City Region Deal August 2023 Page 141 of 168
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2 About SEStran The South East of Scotland Transport Partnership (SEStran) is the statutory Regional Transport Partnership for the South East of Scotland. SEStran encompasses eight local authorities: City of Edinburgh, Clackmannanshire, East Lothian, Falkirk, Fife, Midlothian, Scottish Borders and West Lothian. SEStran has the statutory function of producing the Regional Transport Strategy (RTS) and measuring and monitoring its implementation. It also works with constituent Councils and partner Health Boards who have a duty to perform their functions in such a way as to be in line with the RTS. SEStran aims to address a range of transportation issues, and to work towards a more sustainable and efficient transport network, in line with the National Transport Strategy. SEStran contributes to a varied range of transport projects and events as well as partnership working with various organisations. It supports the aspirations of the various economic plans across the region and specifically the City Region and Growth Deals which have been adopted by its constituent councils. SEStran is represented on the Edinburgh and South East Scotland City Regional Deal (ESESCRD) Transport Appraisal Board (TAB) – as per terms of reference of the TAB, which are updated on an annual basis (See Appendix 1) About the Edinburgh & South East Scotland City Region Deal The ambitious ESESCRD identifies collaborative ways that partners will work with the UK and Scottish Governments to deliver transformational change to the city region’s economy. In August 2018, the UK and Scottish Governments committed to jointly investing £600 million through five themes: innovation, skills, transport, housing and culture, and regional partners are committed to adding in excess of £900 million. This represents a Deal now worth £1.5 billion, with a successful track record of delivering regional programmes and projects and associated benefits. With a population of 1.4 million people representing 26% of the total in Scotland, the region contributes £43 billion of Gross Value Added to Scotland’s economy. It is an important economic, social and cultural hub for the nation. The city region has a strong and successful economy on which to build. But there remain a number of issues that need to be addressed. Prosperity and success are not universal across the city region. 22.4% of children are living in poverty; there is a lack of mid-market and affordable housing; and too many people are unable to move on from low wage/low skill jobs. Transport poverty, and the lack of capacity in transport infrastructure and services is a significant barrier to workforce mobility. Decarbonising transport is also a key priority in our transition to net zero. In the period up to 2033, the ESESCRD is working to address these issues and to improve productivity, create new economic opportunities, new jobs and to reduce inequalities. Enhanced and modernised net zero transport infrastructure and services will be key enablers of these (and wider) ambitions. The Regional Prosperity Framework (RPF), approved in 2021, and its Delivery Plan and Prospectus for South East Scotland, approved in March 2023 represents the next phase of regional economic ambition, with key priority programmes being: • Green Regeneration; • Infrastructure for Recovery & Prosperity; Page 142 of 168
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3 • Visitor Economy & Culture; and • Data Driven Innovation Economy. The development of the seven regionally significant sites, namely Blindwells new settlement, Calderwood, Dunfermline, Granton, Shawfair, Tweedbank and Winchburgh also feature as an on-going regional priority in the context of the ESESCRD and RPF. All of these ambitions and programmes will deliver significant benefits for the people and environment in the region, so effective, efficient and sustainable transport solutions are key to enabling them. Regional Transport Priorities The second Strategic Transport Projects Review (STPR2) will inform the Scottish Government’s transport investment programme in Scotland over the next 20 years (2022- 2042) and will help to deliver the vision, priorities and outcomes for transport set out in the National Transport Strategy (NTS2). It is important to note that despite being an ambitious plan for the next 20 years, STPR2 is not a funded plan. There remain are gaps in regional investment to deliver agreed economic and net-zero ambitions. The development of an equivalent Regional Transport Masterplan is necessary to identify the regional transport solutions to dovetail with the investment in STPR2 and set out a clear pipeline of projects to deliver the ambition of the Regional Prosperity Framework and Regional Transport Strategy. It will identify regional priorities and investment that are not within the remit of STPR2. The masterplan will be a reference document for future funding opportunities beyond STPR2, and a clear position statement on how regional partners need transport investment to be delivered in the South East of Scotland. Page 143 of 168
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4 1. Introduction This Concordat demonstrates the commitment between SEStran and ESESCRD to work together in support of further integrating economic development, transport and land use planning and delivery in the Edinburgh and South East Scotland city region. It sets out how both bodies will align their activities to ensure that regional plans can deliver shared outcomes through targeted transport interventions. It also describes how new transport interventions will progress, from strategy to delivery, through the appropriate governance structure(s), depending on the activity. This approach also supports land use decisions which support the National Planning Framework 4 Vision and Spatial Development Strategy as this will: • limit dependency on motorised transport; • encourage increased levels of active travel; • encourage increased levels public transport patronage; • maximise the use of existing transport networks; and • facilitate local living and the adoption of 20min neighbourhoods. Effective leadership is also required at all levels of policy and decision making to ensure that economic development and transport investment is well planned and integrated in support of the outcomes of the above approach. SEStran and ESESCRD are committed to the following: • a shared vision for integrating economic development, land-use and transport planning and provision; • the joint aspirations of inclusive economic growth and climate action; • areas of joint working (see Section 4); and • principles of engagement (see Section 5). SEStran and ESESCRD believe that there is also real merit in working between Regional Transport Partnerships, there is a need to address cross regional issues including programmes or projects that have or would benefit from cross or pan regional co-ordination. The assessment of transport governance, carried out by Jacobs for Transport Scotland in 2019 favoured an option that gives the regions more authority, as the best way to make positive outcomes to people’s lives. a) Shared Vision for Integrated Economic, Land-Use and Transport Planning and Provision "Through strengthened collaboration, joint working, co-production and engagement, SEStran and ESESCRD, in partnership with others, will seek to ensure a robust basis for integrated regional economic development, land-use and transport planning and procurement and, ensuring Edinburgh and South East Scotland fulfils its potential as Scotland's foremost city region." Page 144 of 168
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5 b) Joint Aims (Why align better?) SEStran and ESESCRD believe that an integrated approach to economic development, land-use and transport planning and procurement plays a vital role in creating a prosperous, successful, accessible and sustainable city region. Ensuring appropriate sustainable transport provision will make a positive contribution to many national, regional and local priorities, including addressing climate change and inequalities, and increasing productivity and the accessibility of jobs and amenities. The aim is to better align regional plans and strategies, governance structures and processes to deliver a shared vision and outcomes, and, where possible, appropriate and subject to agreement by all relevant parties, to pool resources and funding for more effective delivery. Councils will be required to consider individual policy and budgetary implications in line with wider regional ambitions in resourcing programme and project development. This is summarised in the graphic below: 2. Context a) Governance Both bodies have different governance structures in place and operate across different geographies. In that context there is an opportunity to seek new ways of working to maximise positive outcomes: • The ESESCRD area comprises the administrative boundaries of the City of Edinburgh, East Lothian, Fife, Midlothian, Scottish Borders and West Lothian council areas, which broadly reflect the core of Edinburgh’s functional housing and labour market areas; • The SEStran region includes Falkirk and Clackmannanshire council areas that have a close functional relationship with one another as well as the wider SEStran area and beyond. All of these places are connected to one another by the well-established regional transport corridors (major travel flows across the region), identified within the Regional Transport Strategy (pp.37-51), which transcend local authority boundaries, and ensure the connectivity that is needed between places that is so important to their ability to flourish can be provided. Page 145 of 168
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6 It is these nested functional geographies that provide significant strengths and opportunities, for example: planning and strategy development; scaling up or down to identify challenges, opportunities, solutions and interventions, and tackling common issues and finding efficient and effective ways of delivering shared priorities, ambitions and value for money. In that context, this concordat seeks to articulate a way of working that explains the practicalities of ‘why, what, who, where, when and how’ we could work together to help align governance, engagement, decision making and delivery of shared ambitions. There is no additional resource requirement expected for SEStran or ESESCRD as a result of this concordat being agreed. Rather this concordat seeks to make better use of existing resources. Should more resources be made available, for example, as a result of successful bids for funding, these will be made available to all relevant partners. The geographies and governance structures of both bodies are shown below: Edinburgh & South East Scotland City Region Page 146 of 168
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7 SEStran b) Strengths Edinburgh and South East Scotland City Region Deal Scope: The Edinburgh & South East Scotland City Region Deal Governance structure is well established and deals with a wide range of cross-cutting place-based themes (Innovation, Employability and Skills, Transport, Culture and Housing), in a collaborative way. Representation: The established Deal governance structure already has ‘all the right people in the room’ at all its levels, and provides a firm basis for collaboration, engagement and delivery across a wide range of national, regional and local policy priorities and issues. At the top of the structure (Joint Committee, Executive Board and Regional Enterprise Council) the public, private, HE/FE and third sectors are represented at the most senior level (Leaders and Chief Executives). There is also regular engagement with Governments at ministerial, Director and Deputy Director Level. In the middle of the structure, the Directors of Place, Finance, Economy and HE/FE sectors across the region ensure that the thematic boards operate effectively. UK and Scottish Government are directly represented on the Directors’ Group. In terms of delivery, local authorities and other relevant stakeholders (including Government and its agencies) work together to successfully deliver the Deal’s projects across its five themes over the past five years. One of these themes is Transport, which is overseen by the Transport Appraisal Board (TAB), which includes representatives from the local authorities, SEStran, HE/FE Sector and Transport Scotland. The Deal structure is therefore reflective of a wide range of stakeholder interests and ambitions and is well-placed to be a platform for a consolidated regional voice. It should be noted that the sovereignty of each local authority also remains, and the same is true of the other public, private and third sector organisations that participate within this governance framework. It is how parties engage and collaborate in this governance framework that sets the foundation and context for aligned autonomous decision making across these bodies. Page 147 of 168
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8 Adaptability: The structure is sufficiently wide ranging and flexible that it can adapt to deliver new or an expanded scope of planned activity or can respond rapidly to address new issues as they arise. Two examples of this in the transport theme that the TAB has developed include: Delivering the Bus Priority Rapid Deployment Fund in 2020, and successfully acting as a sounding board to coordinate and develop a bid into the Bus Partnership Fund in 2021. Business cases for measures in a number of corridors for these measures are now being coordinated by subgroups of the TAB, and overseen by the TAB. Long-Term: This structure provides a direct conduit to UK and SG in terms of Deal activity up to the Deal’s lifetime in 2033, and beyond this in terms of the Regional Prosperity Framework delivery to 2041. SEStran The SEStran 2035 Regional Transport Strategy was approved by Ministers in March 2023, and provides the framework and a direction for transport in the southeast of Scotland area covered by the eight partner local authorities. SEStran will now work with partners to deliver the RTS. The immediate next steps are to: • Align local transport strategies with Regional Transport Strategy; • Prioritise regional schemes; • Link strategies and plans across geographical LA boundaries; and • Pilot innovative ideas. SEStran will leverage its strengths to develop a range of strategies and initiatives to support partners to deliver the RTS. These will include: • A regional bus strategy, including mass rapid transit and demand responsive transport (DRT) • A regional EV charging strategy, including examination of the market following the forthcoming dissolution of ChargePlace Scotland • Regional freight study • Development and rollout of a regional, and ultimately national, journey planning app including DRT • The establishment of a shared resource forum Regional Transport Partnerships like SEStran are ideal organisations to incubate and test innovative new approaches in both urban and rural transport settings, for example MaaS (Mobility as a Service), Demand Responsive Transport (DRT), and sustainable logistic pilots. SEStran works collaboratively with: • Local authorities and transport operators on regional projects such as real time passenger information and bus partnership fund project work; • Community groups to help and support them in delivering projects and studies (e.g. GO e-Bike and Newburgh Rail Station appraisal); and • Wider national transport groupings through the national RTP network, working jointly to deliver national initiatives like Thistle Assistance and Travel Know How. As the statutory body for regional transport planning and delivery, SEStran has a direct reporting relationship with the Scottish Government via Transport Scotland. and to the UK Government via the Department for Transport on UK transport policy initiatives and regulations. Page 148 of 168
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9 3. Proposals for Complementary Working a) (What and Where?) The areas of focus for the two bodies would be first coordinated in the joint development of a Regional Transport Masterplan, which will complement STPR2 and the RTS, to set out a clear portfolio of regional programmes and projects and the approach to their funding and delivery (see page 3). Both bodies agree that there are significant benefits in joint working within and beyond the SEStran area. The role and responsibilities of SEStran and ESESCRD to deliver the interventions will be agreed by both parties on a ‘case-by-case’ basis, depending on the type of intervention, skillsets required, availability of resources and optimal governance structure to deliver the outcomes effectively and efficiently. Some examples of how this might work are set out in Table 1 below: Table 1: Examples illustrating how ESES CRD and SEStran could potentially work together to realise transport programmes and interventions Geography Programme (example) Interventions Role of SEStran Role of ESES CRD/TAB Local Intervention Local road improvements No role No role Local road improvements Cross boundary Stakeholder and coordination Is it delivered through CRD? Could be a TAB project?* Active Travel/cross boundary Stakeholder and coordination Is it delivered through CRD? Could be a TAB project?* Low Emission Zones Assess regional impacts on rest of network and services. Stakeholder and coordination of partnership mitigation Stakeholder if it affects existing projects WETIP Stakeholder and coordination CRD project with TAB Page 149 of 168
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10 Within SEStran Region (some but not all local authorities) Green Forth A number of programmes or projects that have or would benefit from cross regional co- ordination Stakeholder in emerging Transport Group. Contribution to business case development. Links with SEStran study and freight improvements Stakeholder and RPF alignment and Regional Transport Masterplan Across all SEStran Region Electric Vehicle Charging Point Provision Shared procurement to deliver economies of scale to scale up and secure better buying power in delivery. Merged planning & delivery SEStran & CRD Merged planning & delivery SEStran & CRD Integrated Ticketing/app Regional and national delivery and policy development Coordination & delivery. Stakeholder in policy development Stakeholder in delivery and policy development Freight improvements Consolidation centres, improved driver facilities, cargo bikes, EV charging points Merged planning & delivery SEStran & CRD Merged planning & delivery SEStran & CRD MaaS & RTPI Consolidation of travel information, ticket booking and payment. Passenger information and confidence Coordination & delivery Stakeholder Accessibility Network assessable for all. Physical access and digital access (including telephony) Stakeholder, coordinator, delivery Stakeholder, coordinator, delivery Regional Transport Masterplan Clear vision and pipeline of projects to deliver the ambition of RPF and RTS Stakeholder, coordinator, delivery Stakeholder, coordinator, delivery Beyond SEStran region Trunk Road Investment Coordinated lobbying through multiple Deal governance structures on Stakeholder Stakeholder, facilitator Page 150 of 168
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11 transport (and other) issues could be very impactful in that context High Speed Rail Sponsor development, develop case for change stakeholder/ coordinator Sponsor development, develop case for change stakeholder/ coordinator New rail corridors Stakeholder/ coordinator Stakeholder Rail Station Development Sponsor development, develop case for change stakeholder/ coordinator Sponsor development, develop case for change stakeholder/ coordinator Airport Stakeholder Stakeholder Ferry Stakeholder Stakeholder Drones Drone regulation and corridors. Need to input into process and lobby for development in Scotland Stakeholder/ coordinator Stakeholder/ coordinator AI/Automated Vehicles Regulation and corridors. Need to input into process and lobby for development in Scotland Stakeholder/ coordinator Stakeholder Alternative fuels Hydrogen, EV, e- fuels etc development and testing Stakeholder/ coordinator Stakeholder *TAB’s remit initially only covered CRD projects, which are already defined and signed up to. However the remit has been expanded in the current Terms of Reference (see Appendix 1) that state: To assess and agree upon the optimal transport interventions to meeting the objectives of the City Region Deal; and to do so within the context of extant and emerging policies and strategies at national, regional, and local levels. The Terms of Reference are reviewed on an annual basis, with the next update due in November 2023. Page 151 of 168
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12 b) Governance (How?) To ensure an aligned regional way of working, where planning, transport and housing strategies are aligned with the Regional Prosperity Framework in terms of content, direction and governance, the process through which associated transport interventions will be implemented must be clearly defined. However, the opportunities for a blended delivery approach should always be taken advantage of where appropriate, to utilise the merits of each governance model, accessing regional knowledge/decision making, streamline the delivery, strengthen the opportunities of regional delivery and unify engagement with governments. c) Timescales (When?) The new approach would commence in autumn 2023. The first priorities will be joint working to develop propositions for the Regional Transport Masterplan and Electric Vehicle charging expansion plan. This will include agreement on: • Its programmes and projects (prioritised); • Detail on how the programmes and projects will be funded and any sources of monies and regulatory protocols that may have a regional dimension and that may help cross subsidise the desired outcomes (WPL / LEZ / Other forms of road user charging / integrated ticketing / DRT / MaaS / lobbying for national investment etc). • Collaboration agreements for EV charging expansion; and • Regional EV charging expansion delivery and operation. 4. Areas of Joint Working SEStran and ESESCRD are committed to the following areas of joint working in seeking to deliver the Shared Vision: 1. Regular dialogue to understand each other's policy, planning, strategy, and delivery perspectives. 2. Deliver projects through the appropriate governance models (SEStran or City Region Deal), while taking every opportunity for collaborative delivery to maximise the efficiency and effectiveness of existing structures/forums. 3. Working closely and collaboratively on policy, planning, strategy research, analysis issues which are of strategic importance to both. 4. An open exchange of information during joint working, respecting any confidentiality required by either party 5. Developing a set of desired outcomes from the planning process as it relates to integrated land-use and transport planning and provision for the city region 6. Building on current and previous studies, plans and strategies to identify future economic development, land-use and transport integration solutions for the city region, in partnership with UKG & SG, Transport Scotland and other key agencies as required. 7. Identifying policies, actions and interventions which are based on a joint understanding of the development requirements of the city region which support the vision of the Economic Prosperity Plan, the emerging Regional Spatial Strategy and RTS. Page 152 of 168
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13 8. Undertaking mutually beneficial joint economic development, transport and land- use modelling, research and analysis, and transport network modelling which will inform future planning and policy decisions in the city region. 9. Where appropriate and agreed, jointly lobby external organisations on matters of mutual interest in respect of economic development, transport and related legislative and governance arrangements at a regional dimension 5. Principles of Engagement In support of the Shared Vision and Areas of Joint Working SEStran and ESESCRD will commit to the following: 1. SEStran will continue to be a represented at the ESESCRD Transport Appraisal Board and local authority representatives on the City Region Deal Directors’ Group will be responsible for delivery outcomes of the SEStran Chief Officers’ Group 2. SEStran will be a member of the external advisory group for development of future City Region Deal and associated funding proposals. ESESCRD proposals will be incorporated into the RTS Programmed Investment Plan and transport funding proposals. 3. Communications will be undertaken in an open and transparent manner, with mutual professional respect, and a joint communications plan will be developed for strategic issues. Page 153 of 168
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14 Appendix 1: Transport Appraisal Board Terms of Reference Terms of Reference for the Edinburgh and South East Scotland City Region Deal Transport Appraisal Board (TAB) Last Discussed by TAB: 7 November 2022 (to be agreed by email by next meeting on 6 February 2023) Next consideration by TAB due: 27 November 2023 Membership The Edinburgh and South East Scotland City Region Deal Transport Appraisal Board (hereinafter referred to as ‘the Board’) to comprise: • South East Scotland Regional Transport Partnership (SEStran) • Transport Scotland • Representatives from the six constituent local authorities • Representative from the higher education/further education (HE/FE) sector • City Region Deal Project Management Office (observer) The Board is also able to co-opt representatives of other bodies and/or individuals for limited periods to address specifically defined matters. Context Investment in transport infrastructure is a major theme of the City Region Deal, as it is an essential component of driving inclusive growth. It extends across almost all of the other City Region Deal themes. Two specific named transport projects are included in the inventory of City Region Deal investments, these being the upgrade of the A720 Sheriffhall junction, and public transport improvements at West Edinburgh. There are also City Region Deal projects with significant associated transport elements, including Easter Bush, the Food and Drink Innovation Hub at Queen Margaret University and the seven strategic housing sites. City Region Deal investment projects need to maximise and seek to ensure that opportunities for improving accessibility across the region (as well as to areas outwith the region) are fully taken and need to align with appropriate strategies so as to meet the overall ambitions of the City Region Deal. Purpose To make recommendations to the Joint Committee on the approach towards delivering the transport elements of the City Region Deal Investment Programme. This will include recognition of pertinent strategies and include matters of overall regional policy and strategy in relation to City Region Deal aims, objectives, and specific investment projects. Responsibilities • To assess and agree upon the optimal transport interventions to meeting the objectives of the City Region Deal; and to do so within the context of extant and emerging policies and strategies at national, regional, and local levels. These include the National Transport Strategy 2, the Strategic Transport Projects Review 2, and the Regional Transport Strategy, as well as local transport strategies and local development plans, and any similar relevant plans/policies/strategies, including the Regional Spatial Strategy, that emerge during the City Region Deal period. • To use that assessment as the basis for direct transport input to the City Region Deal’s Regional Prosperity Framework, its Implementation Plan which will recommend priority regional transport interventions through “Big Move 3 - Sustainable Transport” and any subsequent review or update of that document. • To work with the statutory planning and transport authorities of the region together with the statutory agencies and any other relevant bodies.to deliver and manage responsible economic development and growth, • To ensure that TAB input and resulting transport interventions, are consistent with the delivery of the regional spatial strategy. • To ensure close liaison of the Board with the City Region Deal Boards responsible for Data Driven Innovation, Housing, and Employability/Skills. Page 154 of 168
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15 • To ensure positive and regular engagement with the City Region Deal Regional Enterprise Council so as to be well-informed of the transport related views, issues and objectives of the commercial/business/third sectors. • To use the extensive stakeholder base of the Board partners and the outcomes of consultation work by partners, to ensure that policy and strategy is suitably informed. • To ensure a consistent approach to the business cases underpinning the specific transport projects, and those with a transport element, thereby enabling a region -wide view of the cumulative impact of transport related City Region Deal projects. • To oversee the Edinburgh and South East Scotland Bus Service Improvement Partnership and its delivery of the interventions that will arise as a result of the TAB’s bid to the Bus Partnership Fund. It is noted that Transport Scotland does not have a role in overseeing the Bus Service Improvement Partnership. With regard to the Bus Partnership Fund, Transport Scotland would not offer approval in this forum as this would be undertaken through Fund Governance. • Transport Scotland may not have a locus to comment on regional matters, therefore approval from other TAB members would be more appropriate. With regard to City Region Deal business cases, formal approvals are given by Scottish Government and they seek advice from Transport Scotland as appropriate. Given the above, it should be taken that TAB approval only relates to Regional Partners unless explicitly stated that Transport Scotland approval has been granted. • To engage with Transport Scotland as a statutory authority in relation to trunk road and rail network matters concerning other Deal projects and related regional matters overseen by the Board as appropriate. • To assist in this work the Board will be expected to have regard to the following. o The strategic rationale, demand/need, objectives, evidence, costings and delivery programme and mechanisms for projects, their relationship and phasing in the overall programme, including cumulative impact. o Shared use of data to provide a common evidence base. o Recognition of best practice, including Treasury Green Book, and Scottish Transport Appraisal Guidance. o Access to funds and budgets. o Maintain an overview of the impact of interventions across the region through environmental and other assessments. • To review these terms of reference on an annual basis to ensure that they remain relevant and optimal in supporting the delivery of City Region Deal objectives. Meetings Six weekly or as may otherwise be agreed by the Board; or as may be called by the Chair. Meetings will normally be held virtually on MS Teams to minimise travel demand on attendees. The City Deal Project Management Office will provide the secretariat. Quorum There is no quorum for the Board. Members can send substitutes from their respective organisations if desired. Where the Board intends to adopt a position or make recommendations to the Joint Committee on transport matters, every effort will be taken to ensure that all members have had the opportunity to inform the Board’s decision. Sub Groups Where agreed by the Board as necessary and beneficial, a sub-group comprising members of the Board and, with the agreement of the Board, any co-opted bodies and/or individuals, may be established for a specified period to consider and report to the Board on a defined relevant transport related matter. Page 155 of 168
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Midlothian Council Tuesday 10 October 2023 Item No 8.8 Home to School Transport Consultation Report by Fiona Robertson Executive Director Children, Young People and partnerships Report for Decision 1 Recommendations Council is requested to: • Delegate authority to the Executive Director Children, Young People and Partnerships to undertake a statutory consultation on a change to mileage limits for mainstream home to school transport; • carry out an informal consultation with parents/carers of pupils attending Saltersgate School and our specialist provisions; and • agree that a report on the outcome of the consultation exercises will be brought back to council for consideration and a decision. 2 Purpose of Report The purpose of this report is to update council on current legislation regarding home to school transport and seek approval to carry out a statutory consultation on a proposal to change Midlothian Council’s mainstream home to school transport to be more in line with legislation. The report also seeks council approval to carry out an informal consultation with parents/carers of children attending Saltersgate School and specialist provision on alternative home to school travel options. 20 September 2023 Report Contact: Fiona Robertson Executive Director Children, Young People and Partnerships Fiona.Robertson@midlothian.gov.uk Page 157 of 168
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2
3 Background
a. The Community Planning Partnership’s (CPP) vision is that by working together,
individuals and communities will:
• Lead healthier, safer and greener lives by 2030.
• No child or household need live in poverty; and
• Midlothian will be a Great Green Place to Grow by achieving our net zero
carbon ambitions and supporting local people to strengthen the skills they need
for learning, life and work.
b. The priorities within the CPP Single Midlothian Plan were informed by members of
our communities and various consultative groups highlighted active travel as a key
point for action, including:
• The 2022 Youth Platform Community Planning Hackathon identified more
active travel (cycling and paths) as a key action point.
• The annual Community Planning Conference 2022 attendees included green
travel and reduced need to travel in their key priorities.
c. Midlothian’s Education and Transport teams seek approval to carry out a statutory
consultation on changing mileage thresholds for home to school travel to
encourage wider participation in active travel options such as walking or cycling
and to promote the benefits of active and healthy choices. Encouraging physical
activity can have a positive impact on mental health and wellbeing. A reduction in
the provision of school bus routes could support the council and its community
partners to reduce carbon emissions.
d. Midlothian’s Education and Transport teams would also like to carry out an informal
consultation with parents of children attending Saltersgate School and our
specialist provisions on alternative home to school travel options.
Duties on Parents and Local Authorities
e. The Scottish Government’s School Transport Guidance 2021 sets out the following
duties placed on parents and local authorities.
Duties on Parents
Section 30 of the Education (Scotland) Act 1980[5] ("the 1980 Act") places a duty
on parents to provide an efficient education for their child, suitable to the child's
age, ability and aptitude, either by sending him/her to a public school or by other
means. The majority of parents send their children to a school managed by their
local authority and identified by the authority as their catchment school.
Parents remain responsible for their child's journey to and from school or, where
the authority is providing school transport (either through a dedicated service or
local bus service), between home and the designated pick-up/drop-off point.
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3 Duties on Local Authorities Section 51 of the 1980 Act requires local authorities to make such arrangements as they consider necessary for the provision of school transport for pupils residing, and attending schools, in their area. Local authorities have a wide discretion in this regard and the arrangements they establish can include the provision of free school transport for some or all of the journey, making bicycles or other suitable means of transport available to pupils on such terms and conditions as they may arrange (or for paying allowances in lieu), and paying some or all of travelling costs. When considering whether to make arrangements for the provision of school transport, local authorities are further required to have regard to the safety of the pupil, as well as to ensure that access to transport which meets the child’s needs is provided. This may mean an alternative vehicle, such as a minibus or taxi, however there is no requirement to alter vehicles such as school buses to meet a person’s needs. The law states that local authorities must provide free school transport for: • Any child under 8 years of age who lives more than two miles from their school. • Any child over 8 years of age who lives more than three miles from their school. Midlothian Council currently provides free school transport for: • A pupil attending their catchment school and their home address is more than two miles from the school based on the shortest recommended walking route. • A pupil may also receive free transport if the Council has placed them in a non- catchment school due to a catchment school being full. From August 2017, pupils resident in Loanhead who make a successful placing request for S1 at Beeslack High School are also eligible for free transport. • Has been assessed to attend a school with specialist provision or a special school to meet the requirements of their additional support needs. A pupil will not receive free transport if they attend a non-catchment school as a result of a placing request being granted. f. The Education and Transport Service is seeking to undertake a statutory consultation on a proposal to change the mileage limit for secondary school mainstream home to school transport to be more in line with our current statutory duty. The proposal will be to provide free home to school transport for any secondary pupil who lives more than three miles from their school. This aligns Midlothian to the other 66% of local authorities who have already implemented the three-mile limit. There is no proposed change to our current primary school home to school transport arrangements or to those where the Council has placed a child in a non- catchment school due to a catchment school being full. Page 159 of 168
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The consultation will be conducted in accordance with the Schools (Consultation) (Scotland) Act 2010. 4 Report Implications (Resource, Digital and Risk) 4.1 Resource If approved, the statutory consultation will involve the requirement to prepare a range of information for parents/carers, pupils, and community members and a dedicated mailbox for respondents. There is also the requirement to hold public meetings, one in each associated school group, as well as drop-in sessions and focus groups. The resource identified is: Potential Consultation Consultant 3,600 Independent chair 600 Publication materials 100 TOTAL £4,300 4.2 Digital None 4.3 Risk On 17 May 2023, the Account Commission for Scotland stated that the public should be “very worried” about the scale of the financial challenges facing councils further stating that budget constraints and cost pressures are putting council finance under severe strain. The Accounts Commission also stated that local authorities must radically change how they operate. The request to undertake a statutory consultation on a proposal to change mileage limits for secondary home to school transport offers the council an opportunity to implement a change in policy to be more in line with the priorities set out in the Single Midlothian Plan and to address the risk to other elements of the education service budget as a result of a continuing overspend in the home to school transport budget. 4.4 Ensuring Equalities (if required a separate IIA must be completed) To follow 4.5 Additional Report Implications (See Appendix A) See Appendix A Appendices Appendix A – Additional Report Implications Appendix B – Background information/Links Page 160 of 168
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5 APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan • Lead healthier, safer and greener lives by 2030. • Midlothian will be a Great Green Place to Grow by achieving our net zero carbon ambitions and supporting local people to strengthen the skills they need for learning, life and work. A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value In recent years, Midlothian Council has faced severe inflationary pressures in school transport costs. During financial year 2022/23, the over-spend in mainstream school transport rose to £738k (£3.372m) and at Q1 2023/24, the overspend is projected to be £790k (£3.395m) as there remains volatility and uncertainty within the market. These increasing costs place significant financial pressures on both the Education Service and wider council to maintain a balanced budget. The proposal to consult on increasing secondary home to school transport from two to three miles will help to protect funding required in schools to deliver a high-quality education service as well as encourage participation in more active, cleaner, greener travel. The continuing overspend has become unsustainable and places significant pressure and risk on other elements of education provision including staffing and specialist services. Page 161 of 168
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6 A.5 Involving Communities and Other Stakeholders The statutory consultation will involve all communities and relevant directly and indirectly affected stakeholders. A.6 Impact on Performance and Outcomes • Reduce carbon emissions. • Encourage wider participation in active travel options. • Promote benefits of active and healthy living choices. A.7 Adopting a Preventative Approach • Improves road safety skills. • Promotes independence and resilience in line with Curriculum for Excellence capacities. A.8 Supporting Sustainable Development Reduce carbon emissions and traffic around schools. APPENDIX B School transport guidance 2021 - gov.scot (www.gov.scot) Page 162 of 168
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Midlothian Council Tuesday 10 October 2023 Item No 8.10 Standards Commission Decision Report by Alan Turpie, Legal and Governance Manager/Monitoring Officer Report for Decision 1 Recommendations It is recommended that the Council considers the decision of the Standards Commission in relation to complaint reference LA/Mi/3803. 2 Purpose of Report/Executive Summary In terms of Section 18 of the Ethical Standards in Public Life etc. (Scotland) Act 2000 and Rule 10.9 of the Standards Commission Hearing Rules, the Council requires to consider, within three months, the terms of a written decision issued by the Standards Commission for Scotland. Date Tuesday 26 September 2023 Report Contact: Alan Turpie, Legal and Governance Manager/Monitoring Officer Alan.Turpie@midlothian.gov.uk Page 163 of 168
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2 3 Background/Main Body of Report 3.1 The Standards Commission in Scotland encourages high ethical standards in public life through the promotion and enforcement of Codes of Conduct for Councillors and those appointed to the Boards of Devolved Public Bodies. 3.2 It is a statutory body established under The Ethical Standards in Public Life etc. (Scotland) Act 2000 (“the Ethical Standards Act”). The Ethical Standards Act created a framework whereby Councillors and Members of Devolved Public Bodies are required to comply with Codes of Conduct and also with Guidance which is issued by the Standards Commission. 3.3 Complaints about breaches of these Codes are investigated by the Commissioner for Ethical Standards in Public Life in Scotland (“ESC”) and thereafter adjudicated upon by the Standards Commission. 3.4 Following an investigation into a complaint received on 22 September 2022 about the conduct of Councillor Bryan Pottinger (the Respondent), the Ethical Standards Commissioner (ESC) referred a report to the Standards Commission on 2 June 2023, in accordance with the Ethical Standards in Public Life etc. (Scotland) Act 2000 (the 2000 Act). 3.5 The substance of the referral was that the Respondent had failed to comply with the provisions of the Code and, in particular, that he had contravened paragraphs 3.1 and 3.3, which are as follows: • Respect and Courtesy ➢ I will treat everyone with courtesy and respect. This includes in person, in writing, at meetings, when I am online and when I am using social media ➢ I will not engage in any conduct that could amount to bullying or harassment (which includes sexual harassment). I accept that such conduct is completely unacceptable and will be considered to be a breach of this Code. 3.6 A hearing of the Standards Commission took place on 23 August 2023 held at Midlothian House, Dalkeith in relation to this complaint reference LA/Mi/3803. 3.7 The Hearing Panel considered the submissions made both in writing and orally at the Hearing and considered that it was unable to choose between the Complainer’s and Respondent’s versions of events. It was unable to conclude, on balance, that it was more likely than not that the Respondent had made the comment as alleged. The Panel therefore was unable to conclude overall and on the balance of probabilities that the Respondent had breached the Code. Page 164 of 168
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3 3.8 The Decision of the Hearing Panel is attached as Appendix B to this report. 4 Report Implications (Resource, Digital and Risk) 4.1 Resource N/A 4.2 Digital N/A 4.3 Risk The Council has a statutory duty in terms of section 18 of the Ethical Standards in Public Life etc. (Scotland) Act 2000 to consider the terms of the Commission’s findings within three months. Failure to do so would not only be a breach of the Act but could also be considered to be in breach of the Key Principles of the Code of Conduct. 4.4 Ensuring Equalities (if required a separate IIA must be completed) N/A 4.5 Additional Report Implications (See Appendix A) See Appendix A Appendices Appendix A – Additional Report Implications Appendix B – Background information/Links Page 165 of 168
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4 APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan N/A A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value N/A A.5 Involving Communities and Other Stakeholders N/A A.6 Impact on Performance and Outcomes N/A A.7 Adopting a Preventative Approach N/A A.8 Supporting Sustainable Development N/A Page 166 of 168
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5 Page 167 of 168
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6 APPENDIX B Background Papers/Resource Links Standards Commission Website: Cases - Forthcoming Hearings and Hearing Decisions | The Standards Commission for Scotland (standardscommissionscotland.org.uk) Page 168 of 168