Agenda and minutes

All Members of Council had been invited to the meeting via Microsoft Teams

To receive as a correct record the Minutes of the Meeting held on 4^th December  2024 (previously circulated). 

Prior to consideration of the minutes there was a discussion regarding outstanding actions from the previous meeting and the processes contained in the Constitution regarding officers reporting to meetings. 

The minutes of the meeting held on 4^thDecember 2024 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. 

Report of Chief Officer Resources (Cabinet report published on 14.01.25). 

Cabinet report is attached.  The recommendations and proposals in the report to Cabinet are recommended to be referred to Council on 22 January for initial consideration as well as being presented for scrutiny on 15 January prior to public consultation/stakeholder meeting on 29 January (both by Budget and Performance Panel), in order that any feedback can be provided to Cabinet at its 11 February meeting. 

The Panel received a presentation from Councillor Hamilton-Cox, Cabinet Member with responsibility for Finance and Property. 

The Panel was also provided with a Cabinet report from the Chief Finance Officer to provide an update on the Council’s budget strategy for 2025/26 and financial outlook up to 2029/30. Specifically, the report considered the budget and Council Tax proposals for 2025/26.

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

It is essential that the Council Tax rate is set in line with the Council Tax billing timetable. Any delay would put the Council at risk of not being able to collect the tax which would have serious cash flow implications.

Regarding the budget strategy, Cabinet may approve the proposals as set out, or ask for changes to be made to the suggested approach. The overriding aim of any budget setting process is to approve a balanced budget by statutory deadlines, allocating resources to help ensure delivery of the Council’s corporate priorities and service outcomes. The proposed approach is in line with that broad aim and any changes that Cabinet puts forward should also be framed in that context.

In terms of the actual budget position, this report puts forward a balanced budget. If Cabinet agrees the budget, then it will form their proposal to be presented for scrutiny on 15 January prior to public consultation/stakeholder meeting on 29 January (both by Budget and Performance Panel). The feedback from these meetings will be considered by Cabinet and incorporated into a final budget proposal which will be presented at the Cabinet meeting on 11 February 2025 and recommended to Council on 26 February 2025.

The current budget proposal produces a balanced budget for 2025/26 without the need to call on reserves.

Whilst the longer-term financial forecasts contain numerous estimates and assumptions, which will change over time, the forecasts clearly highlight potential annual and cumulative budget deficits over the next 5 years and the position the Council faces. Although this position is not unique to this Council, it is reflected nationally across many public sector bodies. The gaps identified for 2026/27 and beyond are of a level that both Members and Officers need to recognise the size of the challenge ahead and manage the transitional change to the way that the Council delivers both its statutory and non-statutory services across the district. 

Members of the Panel asked a number of questions includingthe structural deficit not being addressed, Heysham Power Station life extension and recommendation on Council Tax.  There was also a request for the Cabinet Member to provide a report back on the Council’s commercial property income. 

Resolved: -

That Councillor Hamilton-Cox, Cabinet Member with responsibility for Finance and Property, be thanked for his presentation and attendance at the meeting. 

Joint report of Chief Officer Housing and Property and Chief Officer Resources (Cabinet report published on 14.01.25). 

Cabinet report is attached. 

The Panel received a verbal report from Councillor Caroline Jackson, Leader and Cabinet Member with responsibility for Housing. 

The Panel had received a joint Cabinet report from the Chief Officer for Housing and Property and the Chief Officer Resources which had sought Cabinet decisions on Council Housing rent setting proposals and the consideration of HRA revenue and capital budget proposals.

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

The options with regards to rent setting are set out under section 4, 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 wider legislative requirements.

In relation to garage rents, it is recommended that following recent rent freezes an increase in line with dwelling rent increases is appropriate and will support maintenance requirements without adversely impacting occupancy levels.

The provision, reserves and balances position (and their use); Revenue budgets; Capital Programme; and other wider budget considerations referred to in this report will be presented fully to Cabinet on 11th February 2025.

The officer preferred option is Option 1: Set housing and garage rent levels as set out in this report in advance of consideration of wider HRA budget at February 11th 2025 Cabinet.

The report highlights challenges faced within the current economic climate, particularly in the context of the increased regulatory and legislative requirements being placed on the social housing sector.

The longer-term financial forecasts contain numerous estimates and assumptions, and the service remains attuned to the risks contained within Appendix F, and in particular the impacts of further legislative and regulatory change which could affect business planning within the HRA.

Lancaster City Council’s Housing Service remains ambitious, while continuing to operate a sensible but forward-looking approach, seeking to meet Regulatory requirements and deliver safe and decent homes.  ...  view the full minutes text for item 25.

Joint report of Chief Officers Finance and Governance. 

The Panel was provided with an updated Work Programme.  This included two additional items requested at the previous meeting of the Panel regarding staff vacancies, the well-being of Council staff and how the Council are to fill vacancies and the HRA Capital Programme for Mainway. 

Resolved: -

That the report be noted.