Agenda and minutes

The Chair thanked the Chief Executive and officers for their ongoing work during the current pandemic. 

Minutes of the Meeting held on 20^th July 2020 (previously circulated). 

It was proposed by Councillor Roger Dennison and seconded by Councillor Jason Wood and agreed that the minutes of the meeting held on 20^th July 2020 be agreed as a correct record. 

It was noted that the minutes would be signed by the Chair when the minute book was available. 

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. 

There were no declarations of interest. 

The meeting adjourned at 6.12pm and re-convened at 6.30pm to allow for the Cabinet Member with responsibility to be in attendance for minute 16. 

Report of the Head of Financial Services and S151 Officer. 

The Head of Financial Services submitted a report that provided the draft Capital Investment Strategy and its accompanying appendices to give the opportunity for consideration and comment ahead of formal presentation to Council in accordance with the Council’s Constitution. 

It was noted that the Council’s Constitution (Part 3 Section 5 – Budget and Policy Framework) required that when a new or existing strategy was being considered, the Overview and Scrutiny Committee or Budget and Performance Panel had an opportunity to comment.  If it then considered it appropriate, Cabinet may then amend its proposals before submitting them to Council for consideration. 

The Panel also discussed the investments item on the agenda.  It was noted that, due to unforeseen circumstances, a report had not been available for consideration by the Panel. 

The Panel was of the view that the information requested regarding investments was required to be considered prior to a response being submitted upon the Draft Capital Investment Strategy. 

Members discussed considering this item at either an additional meeting or next scheduled meeting of the Panel. 

Resolved:

That the item be considered at either an additional meeting or next scheduled meeting of the Panel. 

Report of the Head of Financial Services and S151 Officer. 

Councillor Anne Whitehead, Cabinet Member with Responsibility, was in attendance at the meeting to answer questions regarding the report. 

The Panel received a report from the Chief Finance Officer that provided summary information regarding the provisional outturn for 2019/20, including treasury management. It also set out information regarding the carry forward of capital slippage and other matters for Members’ consideration. 

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

The Council has a legal requirement to ensure that its expenditure is fully funded and to produce accounts in accordance with proper accounting practice. In addition, the Prudential Indicators are a statutory requirement linked to the budgetary framework. For these aspects, therefore, there are no alternative options for Cabinet to consider. Members are being asked to endorse certain actions taken by the Chief Finance Officer, and Cabinet should consider whether it has sufficient information to do so or whether it requires any further justification.

The report had requested Cabinet to consider a number of revenue overspending, capital slippage and other budget adjustment matters. The framework for considering these is set out in the report but basically Cabinet may:

·            Endorse any number of the items / requests, in full or part.

·            Refuse various requests and if commitments have already been incurred, require alternative funding options to be identified. Cabinet should note, however, that this may impact on other areas of service delivery.

·            Request further information regarding them, if appropriate.

The Officer preferred options are as set out in the recommendations, on the assumption that Members continue to support their previously approved spending plans.

Despite the financial challenges faced by the Council and the associated reductions in Government funding, the financial standing of the Council remains relatively healthy as at 31 March 2020. Officers are undertaking several pieces of work to understanding the areas of significant variance and where appropriate undertake corrective action going forward. This will lead to further improvements to the Council’s budget setting and financial monitoring processes.

Panel Members asked several questions regarding the report, including the following:

·            Investments and associated risks;

·            Walney Sub-Station green energy disregard and possible changes to Government policy;

·            Heysham Power Station;

·            Business Rates;

·            Funding the Future Strategy;

·            Detrimental effects on the budget due to the COVID-19 pandemic;

·            Car parking income;

·            Government compensation scheme;

·            LATCOs;

·            Outcome based resourcing;

·            Consultant fees, projects and efficiencies;

·            Money market investment programme and investment criteria;

·            Empty property re-let/Council housing turn around. 

Panel Members expressed their gratitude to those officers involved in the improvement to the empty property re-let times.  This had translated to additional income of £81K in 2019/20. 

Resolved:

That the report be noted.