HERTFORDSHIRE COUNTY COUNCIL
COMMUNITY SAFETY CABINET PANEL
WEDNESDAY 1 APRIL 2009 AT 2.00 P.M.
Agenda Item No.
7
THE CREDIT CRUNCH: THE POTENTIAL IMPACT UPON AND RESPONSE BY THE
COUNTY COUNCIL AND ITS PARTNERS (Community Safety Response)
Joint Report of the Chief of Fire Officer, Head of Trading Standards, the Head of Crime
& Drugs Strategy Unit, the Head of Statutory Services, the Head of Safety, Emergency
& Risk Management Unit
Author:
Tel:
Chris Sweeney,
Finance, Information and Commercial Services Director
01992 555303
Executive Member: Richard Smith, Community Safety
1.
Purpose of the Report
1.1
Over the last year both UK and global economies have significantly deteriorated
and the UK economy has moved into recession. A report was presented to the
Policy and Resources Cabinet Panel on 15 January providing some information
on the financial risks and uncertainties demands arising from the economic
downturn that will impact on the 2009/10 and future budgets. It also set out what
Hertfordshire County Council and its partners can do to help local businesses
and people cope with the economic situation. The Panel referred the report to
Service Cabinet Panels for further consideration of the issues that would directly
affect their respective services. This report covers those issues relating to
Community safety.
2.
Summary
2.1
The UK economy is currently one which is moving from a relatively high level of
inflation to expected lower levels or even deflation. It is also experiencing falls in
land and property prices, shortage of credit, lower growth and rising
unemployment. The impact of this is affecting all sectors including local
authorities, their residents and businesses.
2.2
Community Safety Services have looked at the potential impact of the economic
downturn on the department and identified the issues arising for them. These are
detailed below.
3.
Recommendations
3.1
That the Panel notes the information contained in this report.
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4.
Coroner Service
4.1
We have not noted any impact on death referral rates (projected to be 3200
referrals per annum). The service will deliver within budget this financial year.
Body Removals contract (£35,000 per annum) was negotiated in December 2007
with 2 years remaining. The Mortuary Services contract (£200,000) was extended
until July 2009.
5.
Registration Service
5.1
The Registration Service has an annual income of £2,000,000 per annum and
expenditure of £3,000,000. We are seeing a reduction of income from ceremonial
services including marriages, civil partnerships, civil funerals, re-affirmation of
vows and civil namings. We envisage that customers will postpone or cancel
ceremonies or change to 'cheaper option' ceremonies such as Register Office /
Statutory Weddings. Staff are paid sessional fees hence expenditure will reduce
as ceremonies reduce. Statutory Registration services such as birth, death and
stillbirth registrations appear constant.
5.2
We have ensured that our ceremonial pricing structure offers a range of options
for all budgets. We will be looking to market 'reasonably priced' ceremonies and
guidance how customers could reduce general costs. In addition, ceremonies
generate income for local private business including hotels, florists and caterers.
We will continue to explore ways of maintaining the ceremonial business whilst
controlling expenditure.
6.
Citizenship Unit
6.1
Applications for British Citizenship appear to be unaffected (2000 per annum).
Hence both Nationality Checking Service and Citizenship ceremonies throughput remains constant. The naturalisation process is expensive, costing a family of
four in excess of £1,200. Thus there could be a reduction in applications for those
who choose rather than need to become British.
7.
Fire & Rescue
7.1
History has shown that in times of recession cases of arson increase. This
increase can be expected to be seen across all types of fires and not just within
property. The obvious potential is for increases within the commercial sector as
businesses struggle to maintain financial viability. However it can be expected
that car and secondary (rubbish etc.) fires may also increase. To address the
potential for arson to increase the Service will need to be more proactive in its
preventative measures.
7.2
Pressures on income. The Service relies on the Commercial Training
Department at Longfield to generate significant revenue (£200k net). This
department in the past has had contracts with some high profile national
companies as well as locally based ones. It is anticipated that the worsening
economic climate will mean companies will be more reluctant to place training
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provision contracts, and those that do will be of less monetary value than
previously achieved.
7.3
Partnerships may be difficult to maintain. The Service delivers many of its fire
safety initiatives through partnership working. As the economic climate worsens
it can be foreseen that partners may concentrate more on their core activity
which may compromise the Service’s ability to deliver the impressive outcomes
that have been seen to date.
7.4
The Service has historically always attracted high numbers of applicant for every
firefighter position. As the number of unemployed rises it can be foreseen that
the number of applicants will increase. Historically the Service has received over
1000 applicants for as little as 20 posts – this number may well increase
significantly with every sifted application having a financial cost. A potential
benefit of this situation is that the quality of candidate may rise.
8.
Trading Standards
8.1
Background
The current recession and lack of available credit has led to the issues in
particular for Trading Standards of consumers/businesses falling into debt on
mortgages, credit cards and secured/unsecured loans with the knock on effect
that this has. In such times there is an even greater need for effective legitimate
regulated markets that work well for both consumers and business.
8.2
Implications / associated risks for Trading Standards Service

More enquiries from businesses and consumers on credit default. Reactive resource implications in terms of increased demand for service for
consumer and business advice teams.

Higher risk of dubious organisations setting up to take advantage of market
conditions e.g. credit brokers, credit unions, loan sharks – see specific
information re loan shark activities below.

Higher risk of businesses cutting corners due to market conditions / saving
on legal requirements which require cost investment. Re-active resource
implications in terms of increased demand for service for complaints
investigations and business advice teams.

Increased need for proactive investigation and monitoring of credit and
loans market to identify breaches. Resource implications in terms of
increase demand for service for complaints investigations and business
advice teams.

Increased need for effective, expedient and targeted business advice to
start up businesses during the recession so that the likelihood of success is
heightened. Resource implications in terms of increase demand for service
for business advice team.

Risk that we have not got enough staff who are sufficiently trained to
answer queries. Resource implications in terms of increase demand for
training.
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
Potential for increase in prosecutions costs both staff resource and
monetary (barristers costs). Risk of costs not being recovered.

Potential loss in income for Metrology laboratory due to recession –
businesses cutting back / companies going out of business.
Potential loss of income for weighbridge

8.3

Potential loss of income from verifications, predominantly testing petrol
pumps. Trading Standards are required to test petrol pumps if their
measures have been altered in any way. Currently some garages routinely
‘cut back’ their measures to the minimum quantity permitted (e.g. 0.3%
‘under measure’) This is at a cost to the garage, and an income to trading
standards. In the time of recession, and less sales, garages might not find it
economical to carry on this practice, meaning a loss of income to the
Service.

Potential loss of income in terms of licensing – explosives in particular.

Potential increase in the un-safe storage and sale of explosives (particularly
fireworks) due to premises looking to evade licensing and other costs
Current and future actions being planned / undertaken / considered

Trading Standards through their regional and national connections have
secured the offer for a Loan Shark Team to work in Hertfordshire (at no
extra cost to the County Council) in order to target loan sharks and work
with individuals and partner agencies to provide alternative sources of
credit. Such work would necessitate approval by Cabinet, and a full cabinet
report detailing the issues and advantages is currently being formulated.

Increased number of staff to be trained to a higher level on Credit
legislation. Service currently has 3 ‘experts’ all of whom currently undertake
(by way of staff resource necessity) a high proportion of other duties

Increase in skill levels required for advice staff to enable effective
intervention in cases and negotiate with finance companies working with
other partners such as CAB and Money Advice

Planned proactive visits to finance companies based in the County

Identification of and communication with other organisations dealing with
credit and credit problems e.g. Insolvency practitioners

Identification of any loan sharks. Increased contacts with partner
organisations to aid such identification

Liaise with other local authorities who deal with problematic credit
companies

Research needed into the role bailiffs are currently playing in the credit
crunch. Potential for increased pressure on consumers. Research needed
into legislative framework under which bailiffs operate – thought to be
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virtually unregulated. Potential need for increased regulation and TS / local
authorities as an advocate in this respect.
8.4

Increased liaison with the OFT (Office of Fair Trading) who have
responsibility for credit licensing. Does the amended Consumer Credit Act
have enough teeth to be effective? What steps could we take to be
effective in the current climate? Will the OFT revoke credit licences given
the current climate?

Possibility of renting an empty shopping centre/high street shop on a short
term lease in areas with higher deprivation indices e.g. Stevenage, Watford,
Broxbourne, and create a temporary high street/shopping centre walk in
“one stop shop for debt advice for consumer/business. Potential to be
manned by money advice, TS and CAB experts. Has potential to increase
access, awareness and use of debt advice services.

Potential to enter into a major CAB partnership regarding money advice and
provision of ‘credit crunch’ advice to consumers. Consumers likely to go to
CAB for advice in the first instance as in recent years we have not had a
high profile in dealing with credit issues

Proactively visit all debt collectors/bailiffs

Link with Probation Service /Illegal Money Lending Team to find loan sharks

Widen the Government Trustmark scheme (which only currently relates to
building / construction services) to the area of credit, providing potential for
HCC Trading Standards to Trustmark people who are credit brokers, credit
providers. Lobbying needed at Government level for this to happen
Mitigating actions Service is taking

Re-prioritizing of resources being undertaken so above implications of the
credit crunch can be met.

Monitoring of levels of service in order that quantifiable resource
implications (unable to be met by re-prioritization) are identified
9.
Safety, Emergency and Risk Management Unit
9.1
It could be argued that in challenging economic times a business continuity
challenge (fire, flood, loss of key workers) which an employer might just have had
withstood in a period of economic prosperity would almost certainly cause the
business to fail in more difficult economic circumstances if they do not have
business continuity plans. Moreover, difficult trading conditions may prompt
employers to shed staff and in turn lose any resilience capacity they might have
to cope with sudden or unplanned staff absences creating additional pressures
on the enterprise and its economic viability.
9.2
Local authorities have a statutory duty to promote business continuity awareness
to all businesses and voluntary organisations and a series of events and
initiatives aimed at promoting the sound business benefits for developing
business continuity plans have been planned throughout the year. We will
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continue to signpost employers to sources of additional advice, template plans
etc.
9.3
It is recognised that whilst benefits are to be accrued in spending time preparing
contingency plans, the pressure for simple business survival” may preclude or
severely limit the resource which business might have at their disposal to focus
on this particular work activity. The objective of increasing the percentage of
businesses in Hertfordshire which have business continuity plans may, in turn, be
more difficult to achieve.
10.
Crime & Drugs Strategy Unit

Whilst there has been a lot of discussion about rising crime levels related to
the current economic climate our collective views are as follows;

Where crime levels are rising or static there is no evidence at this stage to
suggest the economic climate is or will be a contributory factor.

Burglary figures were increasing prior to the worsening climate and it is a
crime category that crime partnerships are currently responding to.

Related to the above, an increase in burglaries might be the result of the
increase in security facilities on cars and that burglary offers an opportunity
to obtain car keys and thereby circumvent car security systems.

We have yet to see evidence that demand might well increase for ‘cheaper’
goods through unofficial channels and/or as undeclared proceeds from
acquisitive crime.

The financial value of goods is being forced down so we might witness an
increase in acquisitive crime to fund drugs habits etc but not as yet.

We might see a rise on domestic tensions as a result of redundancies etc
but from the returns qtr 3 from the domestic violence helpline this has not
been substantiated. Qtr 4 returns might well reveal a different picture.
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