Agenda and minutes

To receive as a correct record the minutes of Cabinet held on Tuesday 17 and Tuesday 24 July, 2012 (previously circulated). 

The minutes of the meetings held on Tuesday, 17 and Tuesday, 24 July 2012 were approved as a correct record.

To consider any such items authorised by the Leader and to consider where in the agenda the item(s) are to be considered. 

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

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

Members 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 10 and in the interests of clarity and transparency, Members 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, members 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.

To consider any such requests received in accordance with the approved procedure. 

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 Hanson)

Report of the Head of Regeneration and Planning

(Cabinet Member with Special Responsibility Councillor Hanson)

Cabinet received a report from the Head of Regeneration and Planning to seek a resolution from Cabinet to publish and consult on the Draft Meeting Housing Needs Supplementary Planning Document (SPD).

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

The officer preferred option was Option 1 so that the Council has in place complete and up to date guidance on meeting housing needs.

Councillor Hanson proposed, seconded by Councillor Leytham:-

“(1)      That the recommendation, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)             That Cabinet resolves to publish and consult  ...  view the full minutes text for item 45.

(Cabinet Member with Special Responsibility Councillor Leytham)

Report of the Head of Resources and the Head of Health and Housing

(Cabinet Member with Special Responsibility Councillor Leytham)

Cabinet received a report from the Head of Resources and Head of Health and Housing to consider options for adopting a medium term council housing rent policy and wider medium term financial strategy for council housing, in context of housing regeneration priorities and potential future funding options. 

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

Members had reaffirmed that the strategic housing regeneration priorities for the foreseeable future were:

(a)     To increase the supply and delivery of affordable housing schemes.

(b)     To complete existing unfinished schemes in the West End (the completion of outstanding housing regeneration projects at Chatsworth Gardens and Marlborough Road/Bold Street).

(c)     To bring empty properties back into use.

Options:  Future Rent Setting Policy

The Council needed to decide whether it wished to achieve rent convergence, as assumed by the Government, or whether it wished to set alternative rent objectives.

If the Council chose to move away from the Government’s social rent policy of convergence, the amount of future funding available within reserves would decrease as illustrated in the report.  In addition, there might be new or greater risks to the income available particularly through the impact of future welfare reforms, and this would affect financial and investment planning.  In particular there might be a need to increase the minimum level of HRA balances held.

It was recommended, therefore, that the Council established a stable method of determining the annual review of rent.

·               Option 1:

To continue to follow the Government’s social rent policy including convergence factors (Actual rents are increased by RPI +0.5% plus (an amount equal to the difference between the guideline rent and the actual rent) divided by the number of years remaining to convergence.  This was subject to a maximum capped increase of RPI+ 0.5% + £2 in order that rents were not subject to extremely high rent increases)

·               Option 2:

      To continue to follow the Government’s social rent policy excluding convergence factors (Actual rents are increased by RPI +0.5%)

·               Option 3:

         To establish a local social rent setting policy that supported the future investment needs of the Housing Revenue Account, drawing on the annual rent increase scenarios outlined in the report.

(Cabinet Member with Special Responsibility Councillor Bryning)

Report of the Head of Resources

(Cabinet Member with Special Responsibility Councillor Bryning)

Cabinet received a report from the Head of Resources to inform Members of various council tax changes being proposed by Government, particularly in light of future potential developments regarding empty homes strategy, and to endorse the outline approach regarding future consultation and decision-making.

As this report was presented primarily for information, no options were presented, although Cabinet was asked to endorse the outline plans regarding consultation in particular and so it might have specific ideas for consideration.

Specific Proposals contained in the Bill

Empty and Exempt Dwellings

The new discretionary powers contained in the Bill focused on the following exemption categories in relation to empty properties:

·               Class A – vacant dwellings where major repair works or structural alterations are required, under way or recently completed. (This exemption applies for a maximum period of twelve months.)

·               Class C – an empty property that is substantially unfurnished. (This exemption applies for a maximum period of six months.)

The Bill provided the discretion to remove the statutorily prescribed time periods and 100% exemption for these categories, and gave billing authorities the power to charge between 0% and 100% from the date the property becomes empty.  Proposals to implement discretionary powers to remove the exemption for Class L (in relation to properties repossessed by the mortgagee) had been postponed at this stage, pending further consultation with mortgage lenders.

Appendix A to the report contained a table detailing:

-              the numbers of properties in Class A, Class C and classed as Second Homes and Long Term Empties in the Lancaster area as at April 2012.

-              the approximate amount of overall council tax foregone in 2012/13 for this number, based on the total charge for a Band D property of £1514.13, and

-              the amount foregone by Lancaster City Council based on its own charge for a Band D property of £192.25.

Second Homes

A property was classed as a second home if it was furnished but no-one lived there as their sole or main residence.  Council tax legislation currently allowed the billing authority to award a discount on these properties of between 10% and 50%.  Currently the City Council awarded a discount of 10% only in these cases, with the bulk of the income from the 40% discretionary charge being allocated under the protocol agreed with the County Council – although it was uncertain whether this would continue next year.  The current statutory 50% charge formed part of each authority’s precept, or general funding from council tax.

The Bill provided the power for billing authorities to charge 100% on second homes in future, should they choose to do so.  The number of second homes and the financial details were also contained in Appendix A to the report.

Empty Homes Premium

Billing authorities currently had discretion to provide a discount of up to 50% on empty properties that were not exempt.  These were classed as long-term empty properties. 

The Finance Bill introduces the power for billing authorities  ...  view the full minutes text for item 47.

(Cabinet Member with Special Responsibility Councillor Bryning)

Report of the Head of Resources

(Cabinet Member with Special Responsibility Councillor Bryning)

Cabinet received a report from the Head of Resources to inform Members of the changes being proposed from April 2013 in respect of council tax benefit, and to endorse the approach regarding consultation on the new localised scheme.

As the report was presented primarily for information no options for decision were presented at this stage, although Cabinet was asked to endorse the plans regarding consultation.  Member decisions on the scheme would be sought later this year, when the outcome of the consultation was known.

Options for consultation on the new scheme:

An operational working group of Revenues and Benefit Managers across the county have been considering the possible options for a new scheme, taking into account the constraint of major changes to software systems in the limited timescales available, and with the aim of reducing the total amount of council tax support provided to manage the reduction in Government funding.  Three options had been identified and these were outlined below.  Key advantages and disadvantages were also set out but these were by no means exhaustive.  For all options, pensioners would not be affected by the proposals and therefore any reference to ‘claimants’ excludes this particular group.

Option A:        Apply a Flat Rate Minimum Charge for Council Tax to Claimants

Applying a ‘flat rate’ minimum charge for council tax to claimants would mean that:

-        those claimants in receipt of 100% support would still need to pay this minimum charge;

-        for those in receipt of a lower percentage of support, the amount they pay would increase by this minimum charge; and

-        any claimants that would have been due to receive support of less than the minimum charge would lose their entitlement altogether.

As an indication and in order for the costs of the scheme to match expected Government funding, the standard flat rate additional charge payable by working age claimants might average at a minimum of £157 per year (or £3 per week).  This calculation did not take account of the impact of those losing their entitlement; the actual reduction would require further modelling.

Advantages:

·         It appears that the software suppliers are likely to make this option available and it should therefore be practical to administer.

·         Easy to explain to customers and front line services

·         It would also be relatively easy to communicate to customers and stakeholders as additional £3 per week or so for claimants to pay.

Disadvantages:

·         A flat rate charge may be subject to challenge on the basis that it fails to differentiate between affected groups:

·         Imposition of a minimum charge would remove all entitlement to support from those currently receiving CTB at a rate equivalent to less than the proposed minimum charge. This might be construed as disproportionately affecting these customers.

·         An across the board cut takes no account of those most vulnerable.

·         Debt management would be difficult for those with existing debts.

·         A separate risk with any approach based on achieving the minimum levels of expenditure  ...  view the full minutes text for item 48.

Members are asked whether they need to declare any further declarations of interest regarding the exempt reports. 

Cabinet is recommended to pass the following recommendation in relation to the following items:- 

“That, in accordance with Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting for the following item of business, on the grounds that they could involve the possible disclosure of exempt information as defined in paragraph 3 of Schedule 12A of that Act.” 

Members are reminded that, whilst the following items have been marked as exempt, it is for the Council itself to decide whether or not to consider each of them in private or in public.  In making the decision, Members should consider the relevant paragraph of Schedule 12A of the Local Government Act 1972, and should balance the interests of individuals or the Council itself in having access to information.  In considering their discretion Members should also be mindful of the advice of Council Officers. 

The Chairman asked for any further declarations of interest from Cabinet Members regarding the exempt report.

It was moved by Councillor Hanson and seconded by Councillor Hamilton-Cox:-

“That, in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following item of business, on the grounds that it could involve the possible disclosure of exempt information as defined in paragraph 3 of Schedule 12A of that Act.”

Members then voted as follows:-

Resolved unanimously:

(1)        That, in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following item of business, on the grounds that it could involve the possible disclosure of exempt information as defined in paragraph 3 of Schedule 12A of that Act. 

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Report of the Head of Resources

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Cabinet received a report from the Head of Resources which was exempt from publication by virtue of paragraph 3 of Schedule 12A of the Local Government Act 1972.

The options, options analysis, including risk assessment and officer preferred option, were set out in the exempt report.

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

“(1)      That the recommendations, as set out in the exempt report be approved.”

Councillors then voted:-

Resolved unanimously:

(1)               That the land off Quernmore Road, Lancaster, as shown on the plan attached to the exempt report, be disposed of on the terms and conditions set out in the exempt report.

(2)               That, in view of the nature of the proposed marketing Cabinet agrees that  delegated authority be given to the Head of Resources (in consultation with the Cabinet Portfolio Holder) to complete the sale, should professional advice support such a course of action, with the outcome being reported back to Cabinet.

Officers responsible for effecting the decision:

Head of Resources

Reasons for making the decision:

The Corporate Property Strategy requires that the Council review its asset base and only retain those assets required to meet its agreed objectives and priorities. Where assets are not required for this purpose they should be disposed of at best value. This is an opportunistic sale, allowing the Council to improve the management of its assets.