Agenda and minutes

Apologies for absence were submitted from Councillors Stephanie Haworth and Abdul Khan.

It was noted that all Councillors had been granted a dispensation to speak and vote in relation to setting Council Tax or a precept under the Local Government and Finance Act 1992.

The late Arthur Davidson

The Deputy Mayor paid tribute to Arthur Davidson who had died in January 2018. Arthur had been the Labour MP for Accrington from 1966 to 1983. Councillors Dawson, O’Kane, Dobson and Miles Parkinson also placed on record their tributes.

A minutes silence was held as a mark of respect.

To confirm as a correct record the minutes of the Council Meeting held on 11^th January 2018.

The Minutes of the meeting of Council held on 11^th January 2018 were submitted for approval as a correct record.

Resolved                               -   That the Minutes be approved as a correct record.

To consider the attached report which was approved by Cabinet on 14^th February 2018.

The Portfolio Holder for Resources (Councillor Gareth Molineux) presented a report relating to the Medium Term Financial Strategy which set out income and spending projections for the Council for the next three years, 2018/19 to 2020/21. The report had been submitted to Cabinet on the 14^th February 2018 and Resources Overview and Scrutiny Committee on the 19^th February 2018.

The objectives of the Strategy were:-

·         To be the financial expression of the Corporate Plan, providing the resources to deliver the plan.

·         To ensure that commitments did not exceed forecasted anticipated resources over the period and for each year.

·         To ensure that expenditure was increasingly focused on those areas which the Council had determined as its priority areas.

·         To ensure that the level of Council Tax was planned in line with what the Council and the community as a whole regarded as being acceptable, albeit within the context of guidelines from Central Government.

·         To review the effectiveness of delivery of additional resources into priority areas, to ensure that the objectives set for those target areas were actually being achieved.

·         To ensure that the Council remained in a strong financial position as measured by the size of balances and reserves (consistent with the Chief Financial Officer’s recommendations). 

·         To improve value for money assessments in all services by delivering increased efficiency savings.       

The key elements of the Strategy were:-

·         Forecasting Resources

·         Budget Monitoring and Forecasting Commitments

·         Corporate Strategic Direction and Priorities of the Council

Resolved                               -   That the report and the accompanying Medium Term Financial Strategy be approved.

To consider the attached report which was considered by Cabinet on 14^th February 2018 and is referred to Council for approval.

The Portfolio Holder for Resources submitted a report setting out the Council’s policy and objectives with respect to treasury management, explaining how it would achieve its objectives and manage its activities, and seeking agreement to an investment strategy for 2018/19.  Treasury Management was defined as:-

“The management of the Council’s investment and cash flows, its banking, money market and capital market transactions;

The effective control of the risks associated with those activities; and,

The pursuit of optimum performance consistent with those risks.”

The Council was required to operate a balanced budget which meant that cash raised during the year met cash expenditure.  Part of treasury management was to ensure the cash flow was properly planned with cash available when needed.  Surplus monies were invested in line with the Council’s low risk preferences.

The Prudential Code was a professional code that set out the framework for self-regulation of capital spending and financing which allowed councils to invest in capital projects without any limit as long as such investment was affordable, prudent and sustainable.  The Code was produced by Cipfa and required the Council to agree and monitor a minimum number of prudential indicators (including limits and statements) which related to affordability, prudence, capital expenditure, external debt and treasury management.

The aspects addressed in the report were:-

·         Capital Expenditure and the Capital Financing Requirement

·         Estimated Capital Expenditure

·         Minimum Revenue Provision

·         Affordability Prudential Indicators

·         Treasury Management Strategy 2018/19 to 2020/21

·         External Debt Overall Limits

·         External v Internal Borrowing

·         Limits on Activity

·         Debt Rescheduling

·         Investment Strategy 

·         Treasury Management Practices (TMP)

·         Policy on the use of External Service Providers

·         Treasury Management Strategy In-Year and Year-End Reporting

Resolved                           (1)   That the prudential indicators and limits detailed in the report be adopted;

                                (2)   That the treasury management strategy, and associated indicators, as set out in section 8 of the report, be approved;

                                (3)   That the investment strategy, as set out in section 13 of the report, be approved;  and,

                                (4)   That the Minimum Revenue Provision (MRP) for year 2018/19, set out in Appendix 1 to the report, be approved;

                                (5)   That the Treasury Management Policy Statement 2018/19, as set out in Appendix 2 to the report, be approved;  and,

                                (6)   That the Treasury Management Practices Statement 2018/19, as set out in Appendix 3 to the report, be approved.

To determine the General Revenue Budget, Capital Programme and Council Tax Levels for 2018/19.  To enable Council to make the required decisions, the following documents are submitted:-

a)         Revenue Budget 2018/19

The proposals put forward by Cabinet on 14^th February 2018 are set out in the attached report.  The final proposals of the Controlling Group will be submitted at the meeting.

b)         Capital Programme 2018/19

The proposals put forward by Cabinet on 14^th February 2018 are set out in the attached report.  The final proposals of the Controlling Group will be submitted at the meeting.

c)         Comments and Recommendations of Overview and Scrutiny

The Resources Overview and Scrutiny Committee met on 14^th February 2017 to consider the budget proposals for 2018/19.  The Committee’s comments will be reported at the meeting.

Before the start of the debate, the Deputy Mayor sought consent to the order and format of the debate, a copy of which had been circulated prior to and at the meeting.  The meeting gave its consent to the proposed arrangements.

The Leader of the Council presented the proposed revenue and capital budget and council tax levels for 2018/19. Proposals for the 2018/19 general fund revenue budget and capital programme had been put forward at Cabinet on the 14^th February 2018 and had been recommended to Council for approval. The Leader put forward an updated report circulated at the meeting setting out the Council’s budget requirement for 2018/19, its Precept on the Collection Fund and the formal details surrounding the Precept of other bodies on the Collection Fund and seeking permission to continue to allow former Area Council budgets for Capital and Revenue to be retained by those groups or their successors and for additional payment or payments to be made to Lancashire Pension Authority if surplus funds existed.  

The Vice-Chair of the Resources Overview and Scrutiny Committee (Councillor Jenny Molineux) submitted a report of that Committee’s consideration for the budget proposals, to which the Leader responded.

A motion was proposed by Councillor Miles Parkinson and seconded by Councillor Gareth Molineux:-

“That the recommendations for the General Fund Revenue and General Fund Capital Programme Budget and Council Tax Levels for 2018/19, now submitted by the Controlling Group of the Council, be approved.”

A number of proposals were then submitted by the Leader of the Conservative Group (Councillor Tony Dobson).

A debate on the motion then followed, after which it was put to the vote.  In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 a recorded vote was taken.  The votes were recorded as follows:-

For the Motion:

Councillors Judith Addison, Lisa Allen Mohammad Ayub, Noordad Aziz, Jean Battle, Stephen Button, Clare Cleary, Loraine Cox, Paul Cox, Munsif Dad, Bernard Dawson, Tony Dobson, Stewart Eaves, Diane Fielding, Melissa Fisher, Glen Harrison, June Harrison, Eamonn Higgins, Terry Hurn, Julie Livesey, Gareth Molineux, Jenny Molineux, Ken Moss, Tim O’Kane, Bernadette Parkinson, Miles Parkinson, Joyce Plummer, Kath Pratt, Malcolm Pritchard, Jeff Scales and Paddy Short, (31).

Against the Motion:

None.

Abstentions:

Councillor Peter Britcliffe, (1).

The motion was therefore carried.

Resolved                           (1)   That the Cabinet’s recommendations on the Revenue and Capital Budgets and Prudential Indicators and Treasury Management Report for 2018/19 to 2020/21 made at the Cabinet meeting on the 14^th February 2018 be accepted and adopted;

                                            (2)   That Council Tax for Hyndburn Borough Council be increased by £5.00 to £240.52 for the year for a Band D property.  That was equivalent to a 10 pence per week increase for a Band D property, but most people in Hyndburn would see an annual increase of £3.34 as they lived in Band A properties.  The weekly increase there would be 7 pence; 

                                            (3)   That the Council commits to continuing to strengthen its Reserves during the year and requires  ...  view the full minutes text for item 362.