Agenda and minutes

In the absence of the Leader, the Deputy Leader took the Chair

To receive as a correct record the minutes of Cabinet held on Tuesday, 18 January 2022 (previously circulated). 

The minutes of the meeting held on Tuesday 18 January 2022 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 a request to speak at the meeting from a member of the public in accordance with Cabinet’s agreed procedure, as set out in Cabinet Procedure Rule 19, with regard to Hackney Carriage Fare Review 2022 (Minute 75 refers).

Mr Kay addressed the meeting, outlined his concerns with regard to the proposals as set out in the referral report, suggested alternative proposals and responded to questions.  The Chair thanked Mr Kay for participating in the meeting. 

(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 Director for Communities & the Environment to approve the recommendation from the Licensing Committee with regard to a new Hackney Carriage Fare Tariff.  Councillor Hartley, the Chair of the Licensing Committee had been invited to the meeting to hear the discussions and participate in the meeting and with the agreement of the meeting, the Chair suspended standing orders (Rule 18) to enable Councillor Hartley to respond to any questions from Cabinet members.

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

Officers have calculated average 1-, 5- and 10-mile journeys using a variety of uplift options, including increasing rolling charges. (A rolling charge is a charge that is applied for distance travelled, eg, for every 330yards 20p is applied to the fare) By increasing the rolling charges by a marginal amount (10p) over these distances creates a significant raise in fare costs between 20-30% for the travelling public, this option is therefore not proposed.

It is thought more appropriate to increase waiting times, by increasing this to 20p per 40 seconds or uncompleted part thereof. There is no suggestion that the maximum soiling charge (£75.00) need adjustment, as it is comparable with neighbouring authorities and would reflect the cost of a valet/time spent off the road through a soiling incident. The additional passenger and luggage costs should remain at 20p, respectfully.

The officer preferred option is Option 3: Apply uplift to flag fall across 3 tariffs, suggested 50p and apply 10p uplift to waiting  ...  view the full minutes text for item 75.

(Cabinet Member with Special Responsibility Councillor Dowding)

Report of Director for Communities & the Environment

(Cabinet Member with Special Responsibility Councillor Dowding)

Cabinet received a report from the Director for Communities & the Environment that set out options arising from the review of the Council’s wider parking policies. The options were modelled so they could be presented to Council as part of the wider budget proposals.

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

The Officer Preferred Option is option 2.

Councillor Dowding proposed, seconded by Councillor Brookes:-

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

During the debate concern was raised at the possible impact the proposals might have on arts and culture in Lancaster and whether some re-modelling could be undertaken to address this within the context of the draft budget.

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

“that the following wording be inserted at the end of recommendation (2) : with  further modelling to look at an extra tariff to support art and culture organisations and that further tariff to be agreed in consultation with the Leader and Cabinet Members with responsibility for Planning & Place Making and Arts, Culture, Leisure & Wellbeing.

Councillors then voted:-

Resolved unanimously:

(1)        That as the option most consistent with Council’s priorities, Option 2 be included in Cabinet’s budget proposals.

(2)        That Subject to Council approval these  ...  view the full minutes text for item 76.

(Cabinet Member with Special Responsibility Councillor Whitehead)

Report of Chief Financial Officer  (report published on 3 February 2022)

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Finance Officer that provided information on the Council’s latest General Fund Revenue budget proposals for 2022/23, the resulting Council Tax requirement and the Section 151 Officer’s statement on the adequacy of reserves. The report addressed the actions required to complete the budget setting process for 2022/23, and for updating the Council’s associated financial strategy

and sought Cabinet’s approval and recommendations to Full Council.

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 2022/23 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.

Revenue Budget 2022/23 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.”

Councillors then voted:-

Resolved unanimously:

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

· The 2022/23 General Fund Net Revenue Budget and resulting Council Tax Requirement excluding parish precepts (Appendix A to the report) and supporting budget proposals (Appendix B to the report).

· The Section 151 Officer’s statement on the adequacy of reserves and advice that the minimum level of balances remains at £3.5M, subject to annual review.

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

· the updated position on budget transfers (Appendix D to the report)

(2)        That the Finance Portfolio Holder be given delegated authority to finalise the General Fund Revenue budget 2022/23 as updated for Cabinet’s final budget proposals, and outcomes of the Final Local Government Settlement for referral on to Council.

Officer responsible for effecting the decision:

Chief Finance Officer

Reasons for making the decision:

The budget framework in general sets out a financial plan for achieving the Council’s corporate priorities which incorporate the above cross cutting themes. The decision enables Cabinet to make recommendations back to  ...  view the full minutes text for item 77.

(Cabinet Member with Special Responsibility Councillor Whitehead)

Report of Chief Financial Officer (report published on 7 February 2022)

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Finance Officer to present Cabinet’s final budget proposals in order that the Council can approve a General Fund Capital Programme for 2022/23 to 2024/25 and a Capital Strategy 2022/23 as required by regulation.  The proposed Capital Programme and supporting Strategy, entitled ‘Investing in the Future’ (contained at Appendix B to the report), set out the relevant context and a proposed framework to support the Council’s approach to capital investment over the medium term.

The programme and strategy aligned capital investment to the Council’s four overall priorities and proposed a consistent ‘lifecycle’ for the development and delivery of capital investment activities, including the transparent, accountable democratic decision process. The strategy also set out the proposed approach to risk management as well as the monitoring and evaluation of capital projects.

No options were presented as Cabinet originally considered the strategy at its meeting of 7 December 2021 when it was agreed that further reference be made regarding the potential for investment to create social value through culture and heritage assets. The updated draft included at Appendix B to the report contained additional content in section 1.1 and Investment Streams 2 and 3 to reflect this. The strategy was considered by Budget & Performance Panel at its meeting of 14 December 2021 when the Panel noted the report and draft strategy without suggesting further amendments.

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 Cabinet recommends the following for approval to Budget Council 23 February 2022:

· the updated Capital Programme covering financial years 2022/23 to 2025/26 · the Capital Strategy (Investing in the Future) 2022/23

(2)             That the Finance Portfolio Holder be given delegated authority to finalise the Capital Programme and associated Capital Strategy, as updated for Cabinet’s final budget proposals, and outcomes of the Final Local Government Settlement.

Officer responsible for effecting the decision:

Chief Finance Officer

Reasons for making the decision:

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)

Report of Chief Officer Finance (report published on 3 February 2022)

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Finance Officer to present to Cabinet the draft Treasury Management Strategy and associated documents for 2022/23 and to provide 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 is 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 recommendation, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)             That the Treasury Management Strategy 2022/23 along with Appendices A to C, as appended to the report, be recommended to Council for formal approval.

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)

Report of Chief Officer Finance (report published on 7 February 2022)

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Financial Officer that provided an update on the Council’s general budgetary position for current and future years. Given that at the time of writing, the Final Local Government Settlement had not been laid before Parliament estimates might be subject to change.

The risks to the Council are contained throughout the report and as the report is for noting, no alternative proposals have been put forward.

There remain significant uncertainties in terms of Local Government funding over the next couple of years. These have been exacerbated by national circumstances such as COVID[1]19 and Brexit, but also by local issues around decommissioning plans for the Heysham power station. These have severely hampered the degree of confidence with which we can forecast with many key estimates and assumptions likely to change in the coming months. Despite the work to date to realise the Funding the Future Strategy the budget gap has remained.

It must be recognised that the overall size of the challenge the Council faces in addressing its underlying structural deficit is significant and the formulation of a balanced budget over the medium and longer term will require the delivery of considerable savings.

Continued focus on delivering the Funding the Future Strategy and the application of Outcomes Based Resourcing principles such as strategic prioritisation, service transformation and continuous improvement will play a significant part in achieving the level of savings required. The Council must recognise that it will face a number of key decisions over the next financial year which will affect the manner in which it delivers 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 be noted as the latest information available.

(2)             That the update be referred on to Council 23 February 2022 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 & the Environment

(Cabinet Member with Special Responsibility Councillor Matthews)

Cabinet received a report from the Director for Communities & the Environment that sought Cabinet’s decisions on Council housing rent setting proposals and HRA revenue and capital budget proposals for referral on to Budget Council in order to complete the HRA budget setting process for 2022/23.

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 are set out under section 3, the maximum permitted increase being CPI+1%. By applying this increase, it allows for a budget that can 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 2021/22. In order to protect current occupancy and income levels, and inline with sector benchmarking, a further 12-month freeze is recommended. Garage rents and occupancy will remain under review.

With regard to the revenue budget generally, Cabinet could consider other proposals that may influence spending in current and future years, as long as their financing is considered and addressed.

The options available in respect of the minimum level of HRA balances are to retain the level at £500K 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.

 With regards to the additional budget proposals as set out in section 8 of the report, Cabinet should consider the costs and benefits of the proposals and whether they are affordable, in particular, over the medium to longer term.

The options available in respect of the Capital Programme are:

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 are known, and Officers may require more time in order to do this.

(Cabinet Member with Special Responsibility Councillor Dowding)

Report of Director for Economic Growth & Regeneration (report published on 4 February 2022) 

(Cabinet Member with Special Responsibility Councillor Dowding)

Cabinet received a report from the Director for Economic Growth & Regeneration to determine whether the Vision Masterplan for the Bailrigg Garden Village prepared for the council in 2021 by JTP consultants and informed by extensive community engagement and close working with stakeholders would be the basis for the council’s planning of the garden village and specifically work to prepare the Lancaster South Area Action Plan.

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

The officer preferred option is Option1 for the reasons in the analysis above.

Councillor Dowding proposed, seconded by Councillor Heath:-

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

By way of an amendment Councillor Lewis proposed, seconded by Councillor Whitehead:

“That Cabinet requests that the Director for Economic Regeneration & Planning write to all landowners who are intended to be caught within the roof tax, highlighting Lancaster City Council’s desire to partner with them to meet the strategic priorities of the council, while respecting the financial imperatives landowners may be operating within.”

This was not accepted as a friendly amendment and Cabinet then voted on the amendment.

3 Members (Councillors Lewis,  ...  view the full minutes text for item 82.

This is to give further notice in accordance with Part 2, paragraph 5 (4) and 5 (5) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 of the intention to take the following items in private if it becomes necessary to refer to the exempt appendices.

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

“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 item includes exempt appendices, it is for Cabinet 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 also whether the public interest in maintaining the exemption outweighs the public interest in disclosing the information.  In considering their discretion Members should also be mindful of the advice of Council Officers. 

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

“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 Matthews)

Report of Director for Communities & the Environment

(Cabinet Member with Special Responsibility Councillor Matthews)

Cabinet received a report from the Director for Communities & the Environment which sought approval for the next steps for the future of Mainway.

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

In respect of the recommendations: