Agenda and minutes

An apology for absence was submitted on behalf of Councillor Zak Khan.

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.

There were no interests or dispensations declared at the meeting. 

The Mayor reminded the meeting that all Councillors had previously been granted a dispensation to speak and vote in relation to the following matters, which were relevant to the business due to be conducted at item 8 of the agenda:

• 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.

a)  Mayor

b)  Leader of the Council

c) Chief Executive

The Mayor made announcements on the following items:

Message from King Charles III

The worshipful Mayor had recently received a card of thanks from King Charles III in response to a message of condolence, sent on behalf of the residents of Hyndburn to the Royal family following the death of Queen Elizabeth II. The card was circulated to Members of the Council.

National Moment of Silence

Council was informed that there would be a national minute’s silence at 11 am on Friday, 24^th February to mark the one-year anniversary of the Russian invasion of Ukraine.  Locally the event would be signalled by the launch of maroon flares.

Earthquake in Turkey and Syria

Council was asked to remember the people in Turkey and Syria who had suffered as a result of an earthquake on 6^th February 2023.

Councillor Bill Pinder

Council was informed that former Councillor Bill Pinder had recently passed and was informed of the funeral details.  The Mayor paid tribute to Mr. Pinder and offered kind thoughts to his family and friends. 

The Leader of the Council (Councillor Miles Parkinson OBE), the Leader of the Opposition (Councillor Munsif Dad) and the Leader of the Conservative Group (Councillor Marlene Haworth) also paid tributes to Mr. Pinder and offered condolences to the family.  All remarked on the kind and caring character of Mr. Pinder and his great community spirit.

The Leader of the Council, Councillor Miles Parkinson, made announcements on the following:

Ministerial Visit to Clayton Civic Hall

The Leader of the Council reported on a Ministerial visit to Clayton Civic Hall and referred to the successful funding of this facility to bring it back from neglect. 

Capital and Revenue Budget 2023-24

The Leader of the Council advised Members that the capital and revenue budget for 2023-24 had been set to cover a 3-year period and that they were working with business leaders and stakeholders, to invest the £66.93 million received from Levelling-Up Funds in the borough.  

The Chief Executive made the following announcement:

The Retirement of the Deputy Chief Executive, Mr Joe McIntyre

The Chief Executive announced that Joe McIntyre, Deputy Chief Executive, would be retiring from Hyndburn Borough Council after 20 years’ service.  He referred to the significant improvements that Mr. McIntyre had made to the health of the Council’s finances during his tenure at the Council.  He referred to his commitment, hard work and dedication during his years of service, especially during the period of the Covid pandemic.  Tributes were also paid to Mr. McIntyre by the Leader of the Council, the Leader of the Conservative Party and the Leader of the Labour Party.  Lyndsey Sims, Chief Executive of Hyndburn Leisure and Terry Hosty, a former Hyndburn Borough Council employee, made presentations to Mr. McIntyre.  All thanked him for his time with the authority and wished him well for the future.

Joe McIntyre responded to their tributes.  The Mayor thanked him for all he had done for Hyndburn Borough Council.

To confirm as a correct record the minutes of the Council meeting held on 12^th January 2023.

The minutes of the Council meeting held on 12^th January 2023 were submitted for approval as a correct record.

The Leader of the Council referred to the following minutes:

Minute No. 245 Levelling Up Funding – he advised that Burtons Chambers had been acquired by the Council and that progress had started with funding.

Minute No. 246 Leisure Transformation Programme – he advised that a planning application had been submitted and notices put up to inform the public.  He indicated that this investment would build on the investment in Clayton Hall and was a positive move for Clayton le Moors.

Minute No. 246 Local Plan – he reminded Members that the Council’s Local Plan had been passed in March 2022 and that Members, including the Opposition, had voted for it. 

Minute No. 249 – he reminded Members that a bid of £30 million would be submitted for infrastructure to realise the Huncoat Garden Village development.  He referred to the aspirations of plans for Huncoat and encouraged all Members to support the project and work together.

Resolved                                    -    That the Minutes of the Council meeting held on 12^th January 2023 be approved as a correct record.

To note the attached report which was approved by the Cabinet on 25^th January 2023.

Councillor Joyce Plummer, Portfolio Holder for Resources, submitted a report to update Cabinet on the Prudential Indicators Monitoring and Treasury Management Strategy.   

Councillor Plummer introduced the report as follows:

Treasury management related to the borrowing and cash activities of the authority and the effective management of any associated risks.  The Prudential Code for Capital Finance in Local Authorities required the Council to set Prudential Indicators annually for the forthcoming three years to demonstrate that the Council’s capital investment plans were affordable, prudent and sustainable.  The Council’s current prudential indicators were adopted in February 2022.

The Council was performing within the original targets set at the start of the year although in 2022/23 the gross debt would exceed Capital Financing Requirement (CFR) due to the annual payment of Minimum Revenue Provision (MRP).   Other liabilities reflected the transfer of contract hire leases to balance sheet to comply with IFRS16.  However, borrowing was not taking place for Revenue purposes and the Council was not borrowing additional funds at this time, so it was not an issue. 

The current position of the treasury function, and its expected change in the future introduces risk to the Council from adverse movement in interest rates.  The Prudential Code is constructed on the basis of affordability, part of which is related to borrowing costs and investment returns. 

The Capital Programme 2022/23 would be funded by the use of Government Grants (including New Homes Bonus Grant and S31 Grants) and other external financing. It would also be supported during the year by greater use of internal sources of capital finance (including capital receipts reserve) because of the reduced level of external grant allocation.  It is not anticipated currently that any capital borrowing would be required. 

The Council’s strategy of continuing to yield an appropriate rate of return from investments, through a lower rate, as there is less risk attached to these deposits.  The Council also operates a policy of holding no more than £2m in any one bank (with the exception of the liquidity account held with Nat West Bank where the limit is £3m) to ensure that the risk is spread.

It is recommended that the policy on external investment is changed by increasing the maximum limit for investment with the Government’s Debt Management Agency Deposit Facility (DMADT) from £2m to unlimited.  This would allow greater flexibility for placing of funds with potential for higher returns with minimal risk.  This recommendation is included in the updated Treasury Management Strategy report. 

The report had been prepared in line with the Treasury Management Code and Guidance (2017) written by The Chartered Institute of Public Finance and 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.  This 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  ...  view the full minutes text for item 303.

To note the attached report which was approved by the Cabinet on 8^th February 2023.

Councillor Joyce Plummer, Portfolio Holder for Resources, provided a report setting out the 3-year projections of income and expenditure for the Council ahead of formulating its 2023/24 Revenue and Capital Budgets.  The report had already been considered and approved by the Cabinet on 8^th February 2023.

The Cabinet had considered an update on its medium term financial outlook ahead of making recommendations on the setting of the Budget for 2023/24 and determining the level of Council Tax for the new financial year.  This report ensured that those decisions were taken with a view to the overall position of the Council going forward and were not limited to a narrow one year perspective.

Councillor Plummer spoke to introduce the report.  The substantive report included the following summary:-

The Council’s activities and finances had been dominated this year by the continuing impact of COVID-19 and the economic consequences of the Russian invasion. 

It is expected that these two linked key events and their consequences will continue to have a major impact on the Council’s finances for at least the next financial year as a minimum, with the potential for the effects to continue much longer.

In response to the great uncertainty the Council faced, it would operate a roll forward Budget for 2023/24 based on the 2022/23 Budget adjusted for changes to salary and wages, energy and other cost pressures and anticipated changes to income from the Government.  This provided Service Managers a fixed reference point from which to continue to respond to the inflationary pressures we now face and allowed a degree of stability for one further year, while the Council recovered from another year of significant challenges.  To achieve a balanced Budget during the year, the Council would need to generate £115,279 of internal savings during the year.  Overall expenditure would need to be contained at around £14.38 million in 2023/24 to set a balanced budget.

If necessary the Council would have to use some of its Reserves to help balance the Budget.  This is particularly likely if the Government reduces the amount of financial support it provides the Council or reduces the amount of Business Rates it is allowed to retain.  Additionally, it may be necessary to use Reserves if it is believed that in the current economic climate it would be inappropriate to raise Council Tax.

The Council would face significant financial challenges over the next three years as it sought to overcome the consequence of COVID-19 and the War in Ukraine.  Addressing the impact of any proposed Government funding reforms and increased pressures on its spending would present it with further challenges over this period.  As the extent of the Government financial reforms was unclear at this time and was unlikely to emerge until December 2023 at the earliest, this produces great uncertainty and potentially significant variance around the forecasts contained in the Medium Term Financial Strategy (MTFS).

Previously, for the last four years the expectation had been that the Government would implement what it termed  ...  view the full minutes text for item 304.

To consider the attached report and recommendations which were considered by the Cabinet on 8^th February 2023 and which are referred to Council for approval.

Councillor Joyce Plummer, Portfolio Holder for Resources, provided a reportsetting out 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 2023/24.  The report had already been considered by the Cabinet on 8^th February 2023 and its recommendations had been approved for submission to the Council.

Councillor Plummer gave a brief introduction to the report.  The main report included the following information:

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 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 this 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 and 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.  This 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 this report fulfilled those obligations.  CIPFA had published revised codes on 20^th December 2021 and had stated that formal adoption was not required until the 2023/24 financial year.

The report included detailed information on the following matters:-

• The Prudential Code and Prudential Indicators;
• Capital expenditure and the capital financing requirement;
• Minimum Revenue Provision (MRP);
• Affordability prudential indicators;
• Treasury Management Strategy 2032/24 - 2025/26;
• 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; and
• Treasury Management Strategy in-year and year-end reporting.

Resolved                                    -    That the Council agrees the recommendations of Cabinet to:-

(1)    Adopt the prudential indicators and limits detailed in the report;

(2)    Approve the Treasury Management Strategy, and associated indicators, as set out in section 8 of the report;

(3)    Approve the Investment Strategy as set out in section 13 of the report;

(4)    Approve that  ...  view the full minutes text for item 305.

To determine the General Revenue Budget, Council Tax Levels and Capital Programme for 2023/24.  In order to enable the Council to make the required decisions, the following documents are submitted:-

a)     General Fund - Revenue Budget 2023/24

The proposals put forward by the Cabinet on 8^th February 2023 are set out in the attached report.  The final proposals of the controlling administration will be submitted in advance of the meeting.

b)     New Scheme Additions to the Capital Programme in 2023/24

The proposals put forward by the Cabinet on 8^th February 2023 are set out in the attached report.  The final proposals of the controlling administration will be submitted in advance of the meeting.

c)      Comments and Recommendations of Overview and Scrutiny

The Resources Overview and Scrutiny Committee will meet on 16^th February 2023 to consider the budget proposals for 2023/24.  The Committee’s comments will be reported in advance of 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.

The Mayor introduced this item and sought the approval of Council to use the Budget Procedure to be followed at the meeting, which involved changes to the usual Council Procedure Rules.  With the consent of the meeting, the proposed order of debate was duly adopted.

Members were reminded that, in accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, recorded votes would be required in respect of any financial decisions taken under this item.

Proposals for the 2023/24 General Fund Revenue Budget and Capital Programme had been put forward at Cabinet on 8^th February 2023 and had been recommended to Council for approval.  The proposals had also been submitted to the Resources Overview and Scrutiny Committee on 16^th February 2023 and a number of questions had been raisedand comments made.

The following reports were provided:-

a)     General Fund - Revenue Budget 2023/24

The report included proposals as presented to and approved by the Cabinet on 8^th February 2023.  The recommendations agreed by Cabinet were as follows:-

                            “(1)  That Cabinet proposes to Council to freeze Council Tax for 2023/24 at the same level as in 2022/2023, keeping the charge for a Band D property at £260.64;

(2)    That the Budget for 2023/24 would therefore be £14,382,673 as detailed in Appendices 1 to 3;

(3)    That Cabinet recommend approval of the changes in budget requirement including inflation, growth and savings identified in Appendix 3 to ensure the Council could set and approve a balanced budget;

(4)    That Cabinet noted the significant improvement made in relation to budget monitoring and cost reduction within the Authority over the past 19 years and confirmed its commitment to continuing this approach in the year ahead;

(5)    That Cabinet recommended during the financial year 2023/24, the Executive Director of Resources be delegated responsibility to amend the Budget (following consultation with the Leader of the Council) for technical reasons, such as the restructuring of cost centres, the re-apportionment and re-allocation of overheads etc., provided such amendments had an overall neutral impact on the Budget;

(6)    That Cabinet recommended during the financial year 2023/24, the Executive Director of Resources be delegated responsibility to amend the Budget (following consultation with the Leader of the Council) should the estimate of Business Rates not be sufficiently accurate, by drawing on reserves if needed or paying over additional contributions to reserves;

(7)    That to aid future financial management planning, any surpluses generated during 2023/24 were set aside to help the Council reduce its cost base over the next three years, to support its long term capital programme or to strengthen its overall reserve position;

(8)    That Cabinet recommended that the Service Grant awarded for 2023/24 be used to help balance the Council’s Budget; and

(9)    That Cabinet recommended that the New Homes Bonus and any additional funds from Government that are not ring-fenced funding, as well as any other surplus funds, could be used if required to support capital expenditure as determined by the Executive Director in  ...  view the full minutes text for item 306.