Agenda and minutes

Apologies for absence were submitted on behalf of Councillors Melissa Fisher and Stephanie Haworth.

NOTE:  All Councillors have been granted a dispensation to speak and vote in relation to the following matters, which are relevant to the business due to be conducted during the meeting:

·         Setting Council Tax or a precept under the Local Government Finance Act 1992, as amended from time to time or any superseding legislation.

·         Setting a local scheme for the payment of business rates, including eligibility for rebates and reductions for the purposes of the Local Government Finance Act 2012, as amended from time to time and any superseding legislation.

There were no declarations of interest or dispensations notified.

1)    Recent Engagements

The Mayor announced that she and the Mayoress had enjoyed attending a number of recent engagements.  Of particular note were the launch of the Open Focus Exhibition at Haworth Art Gallery, an event at Prime Bazaar on Union Street, Accrington, and the Accrington Pals Memorial Service at St John the Evangelist CE Church, Accrington.

The Mayor announced that she was looking forward to seeing many councillors at the Mayor’s Ball, tomorrow evening, at the Town Hall, Accrington.

2)    Accrington Pals Memorial, Serre

The Leader of the Council, Councillor Miles Parkinson OBE, reminded Members that on 4^th July 2019 the Council had responded to a request for funding to support the upgrading of the track to Sheffield Memorial Park, Serre-lès-Puisieux, Pas-de-Calais, France, the site of the Accrington Pals Memorial.  The local French Mayor had indicated that improvements to the track were taking slightly longer than anticipated.  However, the Mayor Elect, Councillor Kath Pratt and her Consort were due to visit the area in the first weekend in July 2020, together with the Lord Mayor of Sheffield and Mayor of Barnsley.

3)    Oakhill Mansion

The Chief Executive of the Council, David Welsby, reported that he had recently attended a meeting with the Regional Director of Abbeyfield to discuss the future of Oakhill Mansion, Oakhill Park, formerly a residential care home.  The property was now vacant and alternative accommodation had been secured for all former residents.  As a registered charity that organisation was keen to sell its interest in the property.  However, the mansion was the subject of a covenant which meant that it would have to be used as a residential home for older people.  In the interim, the charity had provided an assurance that they would maintain a warden on site for security reasons.

4)    Food Poverty

The Chief Executive of the Council, David Welsby, reminded Members that they had raised the issue of food poverty and food banks at the previous Council meeting and had asked him to approach local organisations to see what assistance could be provided to alleviate the underlying causes of food poverty.  The issue had been followed up with Community Solutions, but that organisation had no spare capacity to carry out any additional work.  Maundy Relief had also been approached, but could only provide assistance if the Council was able to part fund an advice outreach or telephone based service.

It was suggested that the Controlling Group and Opposition Group each provide a councillor to work with Mr Welsby to consider the matter further and to report back.  The Leader of the Council and Leader of the Opposition Group were requested to provide the names of one representative each to Mr Welsby.

To confirm as a correct record the minutes of the last Council meeting held on 16^th January 2020.

The minutes of the Council meeting held on 16^th January 2020 were submitted for approval as a correct record.

The Leader of the Opposition Group, Councillor Tony Dobson, referred to Minute 233 – Notice Submitted on Motion – Food Poverty.  He indicated that his Group had spoken to the local MP and carried out some background research on the matter.

It was recognised that food bank services relied heavily on the efforts of numerous volunteers to help people in need.   In terms of some local providers, it was understood that Community Solutions no longer offered a food bank service.  Accrington and Rossendale College offered a ‘food exchange’ to provide food at lower cost and to reduce the amounts going to landfill.  Maundy Relief worked with some hard to reach groups, including a percentage of people with other social issues, such as gambling or drug addiction.  Many of the food banks visited estimated that some 4 out of 5 beneficiaries of their services had some form of addiction.  The focus of the previous motion had been on the levels of benefits, but there was anecdotal evidence to suggest that benefits received were being spent on addiction rather than food.  A more targeted use of resources to help people on the edge onto the first step of the ladder to rehabilitation and to reduce social isolation, might prove more effective.

It was suggested that the Council should focus on what it might do from a practical standpoint.  For example, an iPad had been donated by the Council to one organisation.  Mentoring could also be effective and councillors could play a key part in that role.

Councillors Tim O’Kane, Noordad Aziz, Glen Harrison, Paddy Short and Stewart Eaves responded to the comments made.  The relationship between the use of food banks and levels of benefit; the levels of deprivation in Hyndburn which led to children going hungry; and the types of jobs available to workers locally were all highlighted as reasons for the use of food banks.  A number of respondents confirmed that they already volunteered at charitable organisations within the borough.

Resolved                        -      That the Minutes of the Council meeting held on 16^th January 2020 be approved as a correct record.

The attached report presents a proposed amendment to the National Non Domestic Rates Retail Discount Scheme approved in February 2019 and a proposed National Non Domestic Rates Pub Discount Scheme for 2020/21.

The Portfolio Holder for Resources, Councillor Joyce Plummer, presented report onan amendment to the National Non Domestic Rates Retail Discount Scheme approved in February 2019 and the proposed National Non Domestic Rates Pub Discount Scheme for 2020/21.

Retail Discount Scheme

The National Non Domestic Rates Retail Discount Scheme for 2019 and 2020 was a temporary scheme announced by the Government in its October 2018 Budget.  This was a Government funded, two-year scheme available nationally and delivered under Council’s Discretionary Rates Relief powers under Section 47 of the Local Government Finance Act 1988.  The Retail Discount Scheme was available to eligible ratepayers from 1 April 2019 to 31 March 2021.

In 2019/20, the Retail Discount Scheme was implemented to support the local retail economy by providing businesses with a rateable value of less than £51,000 with a discount of one third after other reliefs have been applied.  The discount was fully funded by Government grants made under Section 31 of the Local Government Act 2003 and the Council had taken a proactive approach by automatically applying the relief to qualifying accounts and having an opt-out policy rather than application led process. 

In January 2020, Government had announced an increase in the value of the Retail Discount from one third of an eligible bill to 50% of an eligible bill.  As the Retail Discount was intended to be a temporary scheme, the Government had not made changes to relevant legislation and instead asked that billing authorities use their discretionary powers under section 47 of the Local Government Finance Act 1988 as amended by section 69 of the Localism Act 2011 to deliver the discount.  As a discretionary scheme, it required Council approval.

Subsidy for the relief would be made to the Council and its preceptors through a Section 31 Grant and as such the scheme was cost neutral to the Council.

As outlined in Government guidance issued by MHCLG, eligible businesses would be occupied properties being used wholly or mainly as shops, restaurants, cafes and drinking establishments.  Section 2 of the Retail Discount Scheme set out in detail which types of businesses would and would not be eligible for the discount. 

For 2020/21, the scheme had been extended to include cinemas and music venues and those amendments had also been made to the Council’s Policy.

Initial estimates indicated that around 175 businesses might benefit from this discount worth over £550k in total.

Pub Relief Scheme

In addition to its announcement to increase the Retail Discount, Government had announced in January 2020 a one-year Pub Discount of up to £1,000 for the financial year 2020/21. 

As is the case with the Retail Discount outlined above, Government had not made changes to relevant legislation and again was asking that billing authorities use their discretionary powers under section 47 of the Local Government Finance Act as amended by section 69 of Localism Act 2011 to deliver the discount.  As a discretionary scheme, it required Council approval.

The Pub Discount would be fully funded  ...  view the full minutes text for item 278.

To consider the attached report and recommendations which were considered by the Cabinet on 12^th February 2020 and which are referred to Council for approval.

Councillor Joyce Plummer, Portfolio Holder for Resources, provided a report setting out proposals for the Council’s policy and objectives with respect to treasury management, to explain how it would achieve its objectives and manage its activities; and to agree an investment strategy for 2020/21.  The report had previously been considered by the Cabinet on 12^th February 2020 and its recommendations were referred to the Council for approval.

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 these activities; and
• 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 would meet 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 second function of treasury management was funding the Council’s capital plans.  The plans gave a guide to the future borrowing need of the Council.  The management of the longer term cash flow might involve arranging long or short term loans or using longer term cash flow surpluses.  Occasionally outstanding debt might be restructured to reduce Council risk or meet cost objectives.

The report had been prepared in line with the Treasury Management Code and Guidance (2017) written by The Chartered Institute of Public Finance & Accountancy (Cipfa).  In the case of local authorities in England and Wales, the Code was significant under the provisions of the Local Government Act 2003.  The Act required local authorities ‘to have regard (a) to such guidance as the Secretary of State may issue, and (b) to such other guidance as the Secretary of State may by regulations specify’.  The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 in paragraph 24 required local authorities to have regard to this guidance.  Acceptance of the report would fulfil those obligations.

The report included further details in respect of the following matters:

• The Prudential Code and Prudential Indicators;
• Capital Expenditure and the Capital Financing Requirement;
• Minimum Revenue Provision;
• Affordability Prudential Indicators;
• Treasury Management Strategy 2020/21 – 2022/23 (Current Treasury Position; Expected Movement in Interest Rates; Borrowing and Debt Strategy  2020/21 – 2022/23);
• External Debt Overall Limits;
• External v Internal Borrowing;
• Limits on Activity (Treasury Management Indicators; Proposed Limits for Maturity Structure of Borrowing);
• Debt Rescheduling;
• Investment Strategy;
• Treasury Management Practices (TMP);
• Policy on the Use of External Service Providers; and
• Treasury Management Strategy In-Year and Year-End Reporting.

Resolved                      -      That the Council agrees:

(1)   To adopt the Prudential Indicators and Limits detailed in the report.

(2)   To approve the Treasury Management Strategy, and associated indicators, as set out in Section 8 of the report.

(3)   To approve the Investment Strategy as set out in Section 13 of the report.

(4)   To approve that the Minimum Revenue Provision (MRP) for  ...  view the full minutes text for item 279.

To consider the attached report which was approved by the Cabinet on 12^th February 2020.

Councillor Joyce Plummer, Portfolio Holder for Resources, provided a report on the 3-year projections of income and spending for the Council ahead of formulating its 2020/21 Revenue and Capital Budgets.  The report and its recommendations had previously been approved by the Cabinet at its meeting on 12^th February 2020 and were submitted to the Council for noting.

The Cabinet had required an update on its medium term financial outlook ahead of recommending the Budget for 2020/21 and the level of Council Tax for the new financial year.  The report ensured that those recommendations were made with a view to the overall position of the Council going forward and were not limited to a narrow one year perspective.

The main elements included in the Medium Term Financial Strategy (MTFS) were as follows:-

• Objectives and Elements of the Strategy;
• Service Planning to support overall Strategy;
• Integrated Resource Planning with Service Plans;
• Financial Analysis 2020/21 to 2022/23 (Resources; Government Grant; Business Rates; Council Tax; Expected Loss of Income);
• Changes in Costs (Salaries Costs; Pension Costs; Supplies and Service Costs; Capital Costs);
• Growth;
• Reserves;
• Other Assumptions;
• Scenarios;
• Robustness of Forecast; and
• Overall Net Position

Resolved                      -      That Council notes the report and the accompanying Medium Term Financial Strategy as approved by the Cabinet.

To determine the General Revenue Budget, Council Tax Levels and Capital Programme for 2020/21.  To enable the Council to make the required decisions, the following documents are submitted:-

a)     General Fund Revenue Budget 2020/21

The proposals put forward by the Cabinet on 12^th February 2020 are set out in the attached report.  The final proposals of the Controlling Group will be submitted at the meeting.

b)     General Fund Capital Programme 2020/21

The proposals put forward by the Cabinet on 12^th February 2020 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 18^th February 2020 to consider the budget proposals for 2020/21.  The Committee’s comments will be reported at the meeting.

NOTE:  In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote will be required in respect of this decision.

Before the start of the budget debate, the Mayor reminded Members of the usual order and format of the debate, a copy of which had been circulated at the commencement of the meeting.  There were no comments raised on the proposed order of debate.

The Leader of the Council presented the proposed Revenue and Capital Budget and Council Tax Levels for 2020/21.  Proposals for the 2020/21 General Fund Revenue Budget and Capital Programme had been put forward at Cabinet on the 12^th February 2020 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 2020/21, 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 Chair of the Resources Overview and Scrutiny Committee, Councillor Noordad Aziz, indicated that, at the annual Budget Overview and Scrutiny meeting on 18^th February 2020, the Committee had reviewed the Revenue and Capital Budget proposals submitted by the Leader of the Council.  No alternative budgets had been proposed.

The budget proposals submitted had been reviewed and discussed in depth by the Committee, and the following recommendations were submitted to Council:

“That Council notes the following resolutions of the Resources Overview and Scrutiny Committee:-

(1)      That the Committee gave consideration and noted the content of the reports relating to; Medium Term Financial Strategy 2020/21 – 2022/23, Prudential Indicators Monitoring & Treasury Management 2020/21, General Fund Revenue Budget 2020/21 and Capital Programme 2020/21;

(2)      That the Committee thanked the Leader of the Council and Portfolio Holder for Resources for their participation in the Scrutiny meeting and debate;

(3)      That the Deputy Chief Executive, and all other officers involved, be commended for their work in producing the budget.

(4)      That the Committee recommends the urgent establishment of a Cross Party Working Group to look at resolving issues associated with Clayton Boxing Club and their search for a new facility in Clayton-le Moors following a Sport England grant of £50,000 towards this project.

(5)      That having reviewed and debated the budget submitted, the Committee supports the content of the Revenue and Capital Budget reports as outlined.”

Councillor Aziz added that the Committee had also made some general observations that the language used around borrowing was relatively negative and that a more neutral stance might be adopted which could, for example, encourage ‘Invest to Save’ schemes.

The Leader responded that, on behalf of the Cabinet, he was happy to endorse the recommendations of the Resources Overview and Scrutiny Committee.

A MOTION was proposed by Councillor Miles Parkinson and seconded by Councillor Joyce Plummer:-

“That the recommendations for the General Fund Revenue Budget, General Fund Capital Programme Budget and Council Tax Levels  ...  view the full minutes text for item 281.