Herts County Council to invest in property to pay for kids' care

Earlier this year it was reported that increasing demand for places in children’s homes meant ‘looked after’ children were being placed in independent care homes that were ‘out of county’ and costly.

As a result some children are being placed in foster families or homes that are more than 100 miles from home – and some placements costing up to £10,000 a week.

Now the council has agreed to invest more than £5million in the provision of around 10 more care homes in the county.

And work will be undertaken to locate, purchase and refurbish property suitable for accommodation for children with complex and challenging behaviours.

The funding was agreed by the latest meeting of the full council, on November 26.

Proposing the funding, to be secured from external borrowing, executive member for performance and resources Cllr Ralph Sangster (Rickmansworth West) said: “We feel that it’s important that they [looked after children]are retained within the county council and we are looking to develop sites and locations where that can be achieved.”

And Liberal Democrat Steve Jarvis (Royston West and Rural) said:  “The investment in additional property to enable the of care to vulnerable children within the county is an entirely good one which we would clearly support completely.”

Welcoming the move, Labour Cllr Sharon Taylor (Bedwell) also pointed to the need to address “astonishing costs” of placements.

“It is clear to see that our county along with many others has been held to ransom by providers of care particularly for complex cases and I think that needs looking at separately,” she said.

The decision was part of a package of recommendations that also enabled the council-owned company Herts Living Limited to invest up to £100million in commercial property.

That’s in excess of the £50million the company already earmarked for investment in ‘residential’ properties.

Property investment is said to offer the opportunity for the county council to generate  revenue through rental income.

And according to the report the portfolio will be constructed along sustainable principles, with a preference for sustainably located, accessible assets.

Cllr Sangster said that with low fixed interest rates, the county council had been seeking an alternative way of investing to increase financial returns.

But he said – aside from monetary returns – investment in commercial property within Hertfordshire may well help to improve retention of employment space within the county.

“The enterprise partnership are very concerned about he loss of space within Hertfordshire because of permitted development rights,” he said.

“And where possible – where they are incompatible with our investment  criteria –  we will also seek to improve our position in retaining those commercial spaces.”

Cllr Jarvis backed the principle of investment in commercial property, but said there needed to be democratic oversight of the process and democratic oversight of the results that are achieved.

And he said  there needed to be a detailed process for the investment decisions, ensuring there was advice from the right professionals in the right fields.

Meanwhile Labour Cllr Sharon Taylor said she was pleased the investment would be restricted to Hertfordshire, giving the county council a direct role in generating the county’s economy.

And she said she hoped the loss of commercial space and permitted development regulations would be looked at.

She agreed there was a need for opposition and external professional  presence on the investment board.

And she asked whether the council would lobby the government in relation to the increase in rates levelled by the Public Works Loan Board and government underfunding.

Council leader Cllr David Williams (Harpenden North East) said it was clear third party professional  advice would be sought on each investment and that results would be reported quarterly to the council’s cross party ‘members advisory group’.