Agenda and minutes

To receive as correct records the Minutes of the Meetings held on 15^th and 29^th January 2025. 

The minutes of the meetings held on 15^{thand 29th January 2025 were approved as correct records.} 

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. 

Chief Officer Environment and Place. 

Councillor Peter Jackson, Deputy Leader of the Council and Cabinet Member with responsibility for Communities, Well-Being and Partnerships, was in attendance at the meeting to provide information and update the Panel. 

It was moved by Councillor Sue Penny, seconded by Councillor Chris Hanna and unanimously resolved: -

That, in accordance with Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting to enable the Panel to consider he information provided at the meeting, on the grounds that it could involve the possible disclosure of exempt information as defined in paragraphs 1 and 3 of Schedule 12A of that Act. 

After considering the exempt information the meeting continued in public. 

Resolved:

That the information and update provided be noted and that Councillor Peter Jackson, Deputy Leader of the Council and Cabinet Member with responsibility for Communities, Well-Being and Partnerships, be thanked for attending for this item. 

At this point Councillor Peter Jackson left the meeting. 

Cabinet report is attached.  Recommendation 1 proposals in the report to Cabinet are recommended to be referred to Budget Council. 

Report of Chief Officer Resources. 

Councillor Tim Hamilton-Cox, Cabinet Member for Finance and Property, was in attendance at the meeting and, together with the officers present at the meeting, answered questions from Members of the Panel. 

The Panel had been provided with a Cabinet report from the Chief Finance Officer that presented Cabinet’s final budget proposals in order that the Council could approve a General Fund Capital Programme for 2025/26 to 2034/35 and a Capital Strategy 2025/26 as required by regulation. 

The options, options analysis, including risk assessment and officer preferred option that Cabinet had been asked to consider, were set out in the report as follows.

Cabinet may put forward alternative proposals or amendments to the proposed Strategy ahead of consideration by Full Council. For capital, Council may adjust its capital investment and financing proposals taking account of spending commitments and priorities, but its proposals for 2025/26 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.

Cabinet had been asked to consider the officer preferred option.  The officer preferred option is to consider the Capital Programme and Strategy, as attached to the report, allowing for any amendments being made under delegated authority prior to referral to Council.

The report addresses the actions required to complete the budget setting process for its Capital Programme and Capital Strategy.

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.

Members of the Panel asked a number of questions including heating at Williamson Park and the café/buildings, Newton Beck/Caton Road flood relief scheme and St. Johns Church.  

Resolved:

That the report be noted andthat Councillor Hamilton-Cox, Cabinet Member with responsibility for Finance and Property, be thanked for attending for this item. 

Cabinet report is attached.   The recommendations and proposals in the report to Cabinet are recommended to be referred to Council. 

Report of Chief Finance Officer. 

Councillor Tim Hamilton-Cox, Cabinet Member for Finance and Property, was in attendance at the meeting and, together with the officers present at the meeting, answered questions from Members of the Panel. 

The Panel had received a Cabinet report from the Chief Finance Officer that had proposed to Cabinet a Flexible Use of Capital Receipts Strategy for 2025-26 to complement the ongoing Council’s Outcomes-Based Resourcing programme – Fit for the Future. 

The options, options analysis, including risk assessment and officer preferred option that had been provided for Cabinet to consider, were set out in the report.  The officer preferred option for Cabinet to consider was Option 1, to enable the Council to make use of the Flexible Capital Receipts provision in supporting its savings and service transformation initiatives over the coming years.

Resolved:

That the report be noted and that Councillor Hamilton-Cox, Cabinet Member with responsibility for Finance and Property, be thanked for attending for this item.  

Cabinet report is attached.  Recommendation 1 proposals in the report to Cabinet are recommended to be referred to Budget Council. 

Report of Chief Officer Resources. 

Councillor Tim Hamilton-Cox, Cabinet Member for Finance and Property, was in attendance at the meeting and, together with the officers present at the meeting, answered questions from Members of the Panel. 

The Panel had received a Cabinet report from the Chief Finance Officer which presented the draft Treasury Management Strategy and associated documents for 2025/26 and provided an opportunity for consideration and comment ahead of formal presentation to Full Council 26 February 2025 for approval.

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

Cabinet may put forward alternative proposals or amendments to the proposed Strategy ahead of consideration by Full Council, 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 currently.

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 for Cabinet to consider was to approve the framework as attached to the report, allowing for any amendments being made under delegated authority prior to referral to Council.

Resolved:

That the report be noted and that Councillor Hamilton-Cox, Cabinet Member with responsibility for Finance and Property, be thanked for attending for this item.  

Cabinet report is attached.  Recommendations 2 proposals in the report to Cabinet are recommended to be referred to Council. 

Report of Chief Officer Resources. 

Councillor Tim Hamilton-Cox, Cabinet Member for Finance and Property, was in attendance at the meeting and, together with the officers present at the meeting, answered questions from Members of the Panel. 

Cabinet had received a report from the Chief Finance Officer that provided an update on the Council’s Medium Term Financial Strategy (MTFS) forecasts for 2025/26 to 2029/30.

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

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

The Council continues to face unprecedented levels of financial and economic uncertainty as a result of National and International concerns. Local Government funding remains a key challenge for the Council as well as local issues such as those surrounding decommissioning plans for Heysham power station. This hampers the degree of confidence with forecasts can be made and inevitably some key estimates and assumptions are 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 remains which cannot 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 continues 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 will play a significant part in achieving the level of savings required. The Council must, however, 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.

Members of the Panel asked a number of questions including on business rates and Heysham Nuclear Power Station. 

Resolved:

That the report be noted and that Councillor Hamilton-Cox, Cabinet Member with responsibility for Finance and Property, be thanked for attending for this item.  

Cabinet report is attached. 

Joint report of Chief Executive and S151 Officer. 

Councillor Tim Hamilton-Cox, Cabinet Member for Finance and Property, was in attendance at the meeting and, together with the officers present at the meeting, answered questions from Members of the Panel. 

The Panel had received a report from the Chief Executive & s151 Officer to provide members with an update on financial performance during the first three quarters of 2024/25 (April – December 2024).

As the Cabinet report was for commenting and noting no options were provided.

Members of the Panel asked a number of questions including savings due to staff turnover and posts not being filled, performance of services, recruitment to posts and the impact on staff wellbeing. 

Resolved:

That the report be noted andthat Councillor Hamilton-Cox, Cabinet Member with responsibility for Finance and Property, be thanked for attending for this item.  

Joint report of Chief Officers Finance and Governance (report published on 12.02.25). 

The Panel was provided with a report that contained updates for consideration. The Principal Democratic Support Officer reported that the item regarding Salt Ayre Leisure Centre - update report on the shortfall of income had been included on the agenda for this meeting for consideration. 

With regard to Commercial Property Income the Panel was requested to inform of the information it wished to be included in the report.  Updates were also provided on Delivering Our Priorities, in particular a request for Officers to attend to report on specific issues previously identified for scrutiny by the Panel, Strategic Risk Register and two items that had been referred to the Panel for consideration by the Overview and Scrutiny Committee. 

The Chief Officer - Finance provided an update on the previous request of the Panel for a report and information to be provided to the Panel regarding any ways being considered and proposals as part of the Fit for the Future project to generate income and deliver efficiencies.  Members were informed that this matter was discussed in more detail at the OBR Strategy and Co-Ordination Group and a meeting between SLT and Cabinet was due this month to review the initial Benefit Plans.  Following this meeting there should be more clarity in how to progress this request and the Panel will be updated accordingly. 

The Panel was also requested to advise of any items tobe considered to be included in the Panel’s Work Programme within the Panel’s Terms of Reference, set out in the Council’s Constitution and any training requirements. 

Resolved:

(1)        That, subject to officer availability, an additional meeting of the Panel be arranged to be held on 4^th June 2025, commencing at 6.00pm in Lancaster Town Hall to consider the following:

·            That the Chief Officer – People and Policy be requested to attend a meeting of the Panel to inform on staff vacancies, the well-being of Council staff and how the Council are to fill vacancies. 

·            Strategic Risk Register - That the effectiveness of the mitigation factors, in particular with regard to Risk 3 – SR03, be increased to reduce the likelihood of risk. 

·            Are the current key performance indicator and project reporting systems fit for purpose to provide the information we need as Councillors to help us understand what is happening in our Wards? 

·            Benchmarking.  What big ticket services and outcome should we be benchmarking, where would we get data from and how would we use it to improve our performance? Invite the Chief Officer – People and Policy and Projects and Performance Manager to inform on Performance Management. 

·            That the Chief Officer – Housing and Property be requested to attend a meeting of the Panel to inform on the HRA Capital Programme for Mainway. 

Note: Members of Overview and Scrutiny Committee to be invited to the meeting. 

(2)        That, with regard to Commercial Property Income, the following information be provided in the report to the Panel: 

·            The Gateway Building.

·            A general overview of the City Council’s commercial  ...  view the full minutes text for item 39.