Decision details

The report would seek approval of a decision to accept and approve the business case to develop a Care & Support Hub in Harrogate and proceed with its development,

The North Yorkshire Council-run Care & Support Hub would (if approved) provide specialist intermediate care as well as short and long-term specialist residential dementia care.

The report will set out the business case for the development of the Harrogate Hub, request approval for funding to proceed with its procurement as well as the Council’s aspirations with regard to Carbon Net Zero opportunities for the care and support hub building.

The Corporate Director of Resources has taken the following decisions in consultation with the Corporate Director of Health and Adult Services, the Deputy Leader & Executive Member for Finance & Resources, Executive Member for Health and Adult Services and Executive Member for Managing our Environment.

1. To note the detailed work undertaken to develop the proposal for a purpose-built Care & Support Hub (CSH) in Harrogate to address the escalating pressures on Health and Adult Services budgets driven by the requirement to purchase increasing levels of specialist older people’s residential care in the independent care sector, alongside the risk and issues faced with the current Elderly People’s Homes estate.

2. To approve a capital budget of £15.7m to procure, in accordance with NYC procurement processes, the development of a new Council-run Care & Support Hub in place of the existing Elderly Person’s Home; Station View in Harrogate, from the overall capital budget of £59.2m agreed by Council in February 2025.

3. To approve the proposed Beyond Compliance solutions on the new Harrogate Care & Support Hub site, with a cost of £219k.

1. A market management intervention is needed to address the escalating pressures on Health and Adult Services (HAS) budgets, one of the main drivers being the requirement to purchase increasing levels of high-cost specialist older people’s residential care in the independent care sector, due to a growing demand for the provision of dementia services and intermediate care.

2. An options appraisal was undertaken and the recommendation agreed by North Yorkshire Council Executive in January 2025 was to replace our current Elderly People’s Homes provision, which consists of seven homes, with new build provision of up to five Care & Support Hubs, to be operated through our in-house Care Provider Services.

3. The proposal for a new CSH in Harrogate continues to deliver the optimum savings and projected reductions in future costs to the revenue budget of c£3.7m per annum while providing the most cost-effective model for future provision of specialist residential care. This model is in line with the strategic vision for the transformation of Care Provider Services and demonstrates an ability to off-set current escalating costs in the independent sector.

4. ‘Beyond Compliance’ solutions on the site can achieve substantial improvements to the Council’s performance in relation to energy efficiency, emissions, waste, and water use, and reductions in running costs. This can be achieved for significantly lower costs than originally projected of £219k which can be repaid over 4.9 years. This strategy achieves an EPC rating of A4 and reduces carbon tonnage by 158 Tonnes CO2 per annum, approximately half the carbon tonnage of the existing EPH.

The following options set out below were rejected and were also considered and rejected by the North Yorkshire Council Executive on 7 January 2025 (minute 595 relates): -

1. Do nothing - Continue to undertake responsive maintenance only & deliver existing EPH provision.
2. Do something - Undertake essential remedial works to achieve minimal compliance & continue to deliver existing EPH provision.
3. Close & Re-provide in Independent Sector.
4. Reconfigure and refurbish existing EPH provision.