Agenda and minutes

To receive as a correct record the minutes of Cabinet held on Tuesday, 17 January 2023 (previously circulated). 

The minutes of the meeting held on Tuesday 17 January 2023 were approved as a correct record.

The Chair advised that there were no items of urgent business.

To receive declarations by Councillors of interests in respect of items on this Agenda. 

Councillors are reminded that, in accordance with the Localism Act 2011, they are required to declare any disclosable pecuniary interests which have not already been declared in the Council’s Register of Interests. (It is a criminal offence not to declare a disclosable pecuniary interest either in the Register or at the meeting). 

Whilst not a legal requirement, in accordance with Council Procedure Rule 9 and in the interests of clarity and transparency, Councillors should declare any disclosable pecuniary interests which they have already declared in the Register, at this point in the meeting. 

In accordance with Part B Section 2 of the Code Of Conduct, Councillors are required to declare the existence and nature of any other interests as defined in paragraphs 8(1) or 9(2) of the Code of Conduct. 

No declarations were made at this point.

Members were advised that there had been no requests to speak at the meeting in accordance with Cabinet’s agreed procedure.

(Cabinet Member with Special Responsibility Councillor Brookes)

Report of Director for Communities & the Environment

(Cabinet Member with Special Responsibility Councillor Brookes)

Cabinet received a report from the Licensing Manager which sought Cabinet approval of the recommendations from the Licensing Committee to set a new Hackney Carriage fare tariff. Councillor Hartley, the Chair of the Licensing Committee was invited to address the meeting with regard to the Licensing Committee’s proposals.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Option 4 is the preferred option of the Licensing Committee, as this is an executive decision, Licensing Committee are not the decision-making body so must refer their recommendation to Cabinet for approval.

Earlier in 2022, following a period of consultation with the public and licensed trade, the Councils Cabinet, on recommendation of Licensing Committee agreed a methodology for fare reviews in relation to hackney carriages operating in the district.

The approved methodology has been applied to the relevant parts of the hackney carriage tariff, with a 14% increase to flag-fall and rolling rate (rounded down to the nearest 5p). It represents a 40/60/80p increase in flag fall across the 3 tariffs with little difference to rolling rates (until tariff 3 where a 5p  ...  view the full minutes text for item 69.

(Cabinet Member with Special Responsibility Councillor Whitehead)

Report of Chief Officer Finance (Budget, Capital Programme & Treasury Management reports published on 3.2.23 – MTFS published 7.2.23)

Whilst this report is public, it may contain an exempt appendix and in accordance with Regulation 5 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012, notice is hereby given that the meeting is likely to move into private session if it is necessary to refer to the exempt appendix.  The reason that the appendix is likely to be considered in private is that it will involve the disclosure of exempt information under part 1 & 2 of Schedule 12A of the Local Government Act 1972.

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Finance Officer that set out the latest position in respect of the budget and policy framework and Cabinet’s proposed General Fund revenue budget for 2023/24.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Revenue Budget

Council may adjust its revenue budget proposals, so long as the overall budget for 2023/24 balances and fits with the proposed Council Tax level.

Other Budget Framework Matters (Reserves and Provisions)

Given known commitments, risks, and Council Tax restrictions there is little flexibility in financial terms, but Council could consider different budget strategies to be appraised for future years, or alternative arrangements for approving the use of various reserves, or different virement and/or carry forward limits. Overall, however, previous arrangements have worked reasonably well, and so no other fundamental changes are proposed.

Section 151 Officer’s Comments and Advice

Council is required to note this formally in the minutes of the meeting, hence it is reflected in the recommendations

Depending on the nature of any alternative proposals put forward, Officers may need time to assess the risks and implications. This is to ensure that relevant considerations are taken into account, to support informed and lawful decision making.

Officer preferred option

Revenue Budget 2022/24 and Reserves Position

To agree the recommendations as presented as the proposals to be put forward by Cabinet should fit with any external constraints and the budgetary framework already approved. The recommendations as set out meet these requirements; the detailed supporting budget proposals are then a matter for Members.

Councillor Whitehead proposed, seconded by Councillor Hamilton-Cox:-

“That the recommendations, as set out in the report, be approved.”

By way of an amendment, which was accepted as a friendly amendment by the proposer and seconder, Councillor Wood proposed and Councillor Thornberry seconded:-

“That the following be added at the end of the first bullet point on recommendation(1):

‘as amended to ensure the long term sustainable future of the Platform that the proposed saving be reduced to £32K throughout 2023/24 and its operation continue until a new operational model is agreed using additional savings of £43K funded from building control’ and that recommendation (3) be deleted”.

Councillors then voted on the revised recommendations:-

Resolved unanimously:

(1)             That Cabinet recommends the following for approval to Budget Council:

· The 2023/24 General Fund Net Revenue Budget and resulting Council Tax Requirement excluding parish precepts (Appendix A) and supporting budget proposals (Appendices B & B1, as amended), to ensure the long-term sustainable future of the Platform that the proposed saving be reduced to £32K throughout 2023/24 and its operation continue until a new operational model is agreed using additional savings of £43K funded from building control.

· The Section 151 Officer’s statement on the adequacy of reserves and advice that the minimum level of balances remains at £5M, subject to annual review.

· the resulting position on reserves (Appendix C to the report).

· the position on  ...  view the full minutes text for item 70.

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Finance Officer which presented Cabinet’s final budget proposals in order that the Council could approve a General Fund Capital Programme for 2022/23 to 2027/28 and a Capital Strategy 2023/24 as required by regulation. In addition, Cabinet was requested to endorse the s151 Officer advice in regard to the change in the Council’s MRP policy for 2022/23 and future years and refer this to Council for formal approval.

This report addressed the actions required to complete the budget setting process for capital, and for updating the Council’s associated financial strategy.  It was noted that due to a number of factors including the late conclusion of the budget process, delays to IT software and provision of information, the Capital Strategy 2023/24 had not been considered by the Budget & Performance Panel (B&PP). As the approval of the strategy was a function of Full Council all Members, including those sitting on B&PP might propose any changes, or amendments at that meeting.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Capital Investment and Programming

 For capital, Council may adjust its capital investment and financing proposals taking account of spending commitments and priorities, but its proposals for 2023/24 must balance. Depending on the nature of any alternative proposals put forward, Officers may need time to assess the risks and implications. This is to ensure that relevant considerations are taken into account, to support informed and lawful decision- making.

Councillor Whitehead proposed, seconded by Councillor Hamilton-Cox:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

That Cabinet recommends the following for approval to Budget Council:

· the updated Capital Programme covering financial years 2022/23 to 2027/28 · the Capital Strategy (Investing in the Future) 2023/24

Officer responsible for effecting the decision:

Chief Finance Officer

Reasons for making the decision:

The proposed capital programme and supporting strategy is part of the Council’s budget and policy framework, and fits into the Medium Term Financial Strategy.  Capital and Investment Strategies form part of the Budget Framework and their adoption is a function of Full Council.

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Finance Officer that presented the draft Treasury Management Strategy and associated documents for 2022/23 and provided an opportunity for final consideration and comment ahead of formal presentation to Council for approval, in accordance with the Council’s constitution.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Cabinet may put forward alternative proposals or amendments to the proposed Strategy, but these would have to be considered in light of legislative, professional, and economic factors, and importantly, any alternative views regarding the Council’s risk appetite. As such no further options analysis is available at this time. Furthermore, the Strategy must fit with other aspects of Cabinet’s budget proposals, such as deposit interest estimates and underlying prudential borrowing assumptions, feeding into Prudential and Treasury Management Indicators. There are no options available regarding other components of the overall framework.

The officer preferred option was to approve the framework as attached to the report, allowing for any amendments being made under delegated authority prior to referral to Council. This is based on the Council continuing to have a comparatively low risk appetite regarding the security and liquidity of investments particularly, but recognising that some flexibility should help improve returns, whilst still effectively mitigating risk. It is stressed that in terms of treasury activity, there is no risk-free approach. It is felt, however, that the measures set out above provide a fit for purpose framework within which to work, pending any update during the course of next year.

If Cabinet, or Budget Council changes its Capital Programme from that which is proposed in this report then this would require a change in the prudential indicators which are part of the Treasury Management Strategy. Delegation to the Finance Portfolio Holder is therefore requested in order to ensure that Cabinet’s final capital programme proposals are reflected in the Treasury Management Strategy

Councillor Whitehead proposed, seconded by Councillor Hamilton-Cox:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

That Cabinet recommends the following for approval to Budget Council:

            · the Treasury Management Strategy 2023/24 and its Appendices A to C

· the revision to the Councils Minimum Revenue Provision (MRP) Policy for financial year 2022/23 (Appendix D).

Officer responsible for effecting the decision:

Chief Finance Officer

Reasons for making the decision:

Treasury Management forms part of the Council’s budget framework. The Council is required through regulations supporting the Local Government Act 2003 to ‘have regard to’ the Prudential Code and to set Prudential Indicators for the next three years to ensure that the Council’s capital investment plans are affordable, prudent and sustainable. It is also required to produce an annual Treasury Strategy for borrowing and for managing its investments and for giving priority to security and liquidity of those investments. The report satisfied these requirements and sought Cabinet’s approval and recommendation to Full Council for formal adoption.

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Finance Officer that provided an update on the Council’s Medium Term Financial Strategy (MTFS) forecasts for 2023/24 to 2027/28.  The previous reports on the agenda considered the annual process for setting the Council’s revenue and capital budgets for 2023/24. This report set out the context in which future decisions on resource allocation and budgeting would be taken.

The risks to the Council were contained throughout the report and as the report was for noting, no alternative proposals had been put forward.

The Council continued to face unprecedented levels of financial and economic uncertainty in terms of Local Government funding, pandemic recovery, and the cost of living crisis. This and specific local issues such as those surrounding decommissioning plans for Heysham power station hampered the degree of confidence with which forecasts could be made and inevitably some key estimates and assumptions were likely to change in the coming months

Despite the work to date by Officers and Members to deliver on the Council’s OBR programme, a significant budget gap remained which could not be met from Council reserves. The overall size of the challenge the Council faces in addressing its underlying structural deficit and in formulating a balanced budget over the medium and longer term must be recognised as does the need to deliver considerable future savings.

The Council continued to deliver high-quality frontline services to the district’s residents. Continued focus on the application of Outcomes Based Resourcing principles such as strategic prioritisation, service transformation and continuous improvement would play a significant part in achieving the level of savings required. The Council must ,however, recognise that it would face a number of key decisions over the next financial year which would affect the manner in which it delivered its services.

Councillor Whitehead proposed, seconded by Councillor Hamilton-Cox:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)        That the draft future years budget estimates as set out in the report as the latest information available be noted.

(2)        That the update be referred on to Council 22 February 2023 for information.

Officer responsible for effecting the decision:

Chief Finance Officer

Reasons for making the decision:

Performance, project, and resource monitoring provides a link between the Council Plan and operational achievement, by providing regular updates on the impact of operational initiatives against strategic aims.

(Cabinet Member with Special Responsibility Councillor Matthews)

Report of Director for Communities and the Environment and the Chief Finance Officer

(Cabinet Member with Special Responsibility Councillor Matthews)

Cabinet received a report from the Director for Communities and the Environment and the Chief Finance Officer that sought Cabinet decisions on Council Housing rent setting proposals and HRA revenue and capital budget proposals.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

The options with regards to rent setting were set out under section 4 of the report, the maximum permitted increase for existing tenants being 7.0% for 2023/24. By applying this increase, it allowed for a budget that could deliver on the Council’s ambitions on improving housing standards and addressing the climate change emergency, whilst adhering to the Rent Standard and legislative requirements.

In relation to garage rents, the previous decision was to freeze rents for 2022/23. In order to protect current occupancy and income levels, and in line with sector benchmarking, a further 12-month freeze was recommended. Garage rents and occupancy would remain under review.

With regard to the revenue budget generally, Cabinet could consider other proposals that might influence spending in current and future years, as long as their financing was considered and addressed and coherent with the legislative and regulatory requirements of a Registered Provider.

The options available in respect of the minimum level of HRA balances were to increase the level to £750K in line with the advice of the Section 151 Officer, or adopt a different level. Should Members choose not to accept the advice on the level of balances, then this should be recorded formally in the minutes of the meeting, and it could have implications for the Council’s financial standing, as assessed by its external auditor.

The options available in respect of the Capital Programme were:

i)                 To approve the programme in full, with the financing as set out;

ii)                 ii) To incorporate other increases or reductions to the programme, with appropriate sources of funding being identified.

Any risks attached to the above would depend on measures Members proposed, and their impact on the council housing service and its tenants. As such, a full options analysis could only be undertaken once any alternative proposals were known, and Officers might require more time in order to do this.