Agenda and draft minutes

The Mayor welcomed everyone to the Council’s Budget meeting for 2025/26.

Apologies for absence were submitted on behalf of Councillors Heather Anderson, Andrew Clegg, Paul Cox, Bernard Dawson MBEand Mohammed Younis.

NOTE:  All Councillors (with the exception of one) 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 this meeting:

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

Notwithstanding the above, the Government takes the view that a dispensation is unnecessary in certain circumstances and that councillors do not have a disclosable pecuniary interest in decisions relating to the setting of Council Tax levels.

There were no declarations of interest submitted.

It was noted that, with the exception of one individual, all councillors present had a dispensation to speak and vote on matters in relation to the setting of the Council Tax or a precept under the Local Government Act 1992.  Advice was provided setting out the Government’s view that a dispensation was not an essential requirement for participation in the debate or voting on such matters.

a)    Mayor

b)    Leader of the Council

c)    Chief Executive

The Mayor made the following announcements:

1)         Mayor’s Ball 2025

The Mayor, and on behalf of the Mayoress, thanked all who had helped to make the Mayor’s Ball a great success.  A good night of entertainment had been enjoyed by all.  Councillor Melissa Fisher added her comments in support of the event and noted that a considerable sum had been raised for charity.

The Leader of the Council then made the following announcements:

2)         Local Government Reorganisation

Progress towards local government reorganisation was continuing at a pace.  Since the last Council meeting the Government had confirmed reorganisation in Lancashire would be in place by 1^st April 2028.  Local authorities had been invited to submit initial proposals by 21^st March 2025 and councils were currently working on developing a single response.  The response was likely to provide the Government with a range of options for consideration by the final deadline of 28^th November 2025.  The Minister of State for Local Government and English Devolution, Rt Hon Jim McMahon MP, would then consider the views expressed in 2026 and determine the new structures to be implemented.  Elections for Hyndburn Borough Council would continue to take place in 2026 and in the following year there would be elections for the shadow unitary authorities.  The new authorities would be established from 2028.  The controlling administration would keep all employees informed throughout this journey.

3)         Israel/Hamas Conflict

A further e-mail had been sent to Foreign Secretary, Rt Hon David Lammy MP, signed by local councillors in connection with US President Donald Trump’s proposals for the future of Gaza.  The proposals would see the US to take long-term ownership of the Gaza Strip and the resettlement of Palestinians.  This had left many people appalled and the Foreign Secretary was urged to take action.  What was proposed was reprehensible and potentially amounted to ethnic cleansing.  Both the UN and EU had condemned the announcement.  The proposals threatened to undermine Phase 2 of the ceasefire deal and could spark renewed conflict, jeopardising stability across the region.  The sensible course of action was to develop a two state solution, but President Trump’s proposals could deal a fatal blow to this ambition.  It was hoped that an independent state comprising the West Bank, Jerusalem and Gaza could be established.

The letter called upon the Government to oppose the US plans and to prevent the carrying out of a possible war crime.  Over 180 councillors had added their signatures to the letter.

With the permission of the Mayor, the Leader of the Council invited Councillor Clare Pritchard to provide an update on the situation regarding Accrington Victoria Hospital.

4)         Accrington Victoria Hospital

Councillor Clare Pritchard reported that she had attended a steering group meeting with East Lancashire Hospitals NHS Trust to discuss Accrington Victoria Hospital, which had been quite positive.  It was noted that the Police and Fire Services had attended the premises around 20 times since its closure due to break-ins.  It was not  ...  view the full minutes text for item 361.

To confirm as correct, the minutes of the Council meeting held on 16^th January 2025.

The Minutes of the Council meeting held on 16^th January 2025 were provided.

In respect of Minute 282(4) – Israel/Hamas Conflict, Councillor Shabir Fazal OBE commented that the Leader of the Council had reported over the last few meetings that he had signed various letters to the Government about the situation in Gaza.  However, he was not aware that any replies had been received.  He asked what the Government’s stance was on Gaza and noted that arms and intelligence continued to be provided to Israel.  He mentioned that one Palestinian child was reputedly killed every 15 minutes and suggested that Britain was complicit in this loss of life.

The Leader responded that councillors listened to the views expressed by residents and that these concerns were reported to the appropriate Ministers in Government.  Written responses were not always forthcoming, but key issues were raised at the highest level.

In connection with Minute 284(2) – Oswaldtwistle Civic Theatre, Councillor Steven Smithson thanked Councillor Kate Walsh for her report at the last Council meeting.  He noted that last night a meeting had taken place of the Friends of the Civic Theatre Group, but that no representatives of the controlling group had been present.  This had led to some difficulties in answering questions from members of the public present.

Councillor Dad responded that an invitation had been received to that meeting by a number of Cabinet members, who had hoped to attend.  Unfortunately, two councillors had been required to attend Lancashire County Council’s Budget meeting and one councillor had been delayed by a traffic jam on the motorway.  The controlling group remained committed to working towards reopening the Civic Theatre and this was underlined by the funding allocation set out in the Budget item.

Regarding Minute 284(1) – King George V Playing Fields, Councillor David Heap, stated that he was pleased to be able to speak on this matter at his first Council meeting.  This was an important issue for the people of Baxenden and the news of its possible reopening in 2026 was welcomed.  He requested further information about when the work was due to commence.

Resolved                                    -    That the Minutes of the Council meeting held on 16^th January 2025 be approved as a correct record.

The following person was elected at the Borough Council By-Election held on 6^th February 2025.

Members were informed that the following person had been elected at the Borough Council By-Election held on 6^th February 2025:

On behalf of the whole Council, the Mayor extended a warm welcome to Councillor Heap and wished him well during his time serving the people of Baxenden and of Hyndburn, both in the Council Chamber and out in the wider community.

In accordance with The Local Government (Committees and Political Groups) Regulations 1990, the Council is required to review the allocation of seats to political groups under s.15 Local Government and Housing Act 1989, in certain prescribed circumstances.  This includes following the service of a notice to the proper officer under Regulation 9 by a member wishing to join a political group on the Council and the acceptance of that application by the group concerned, accompanied by a further notice under Regulation 17(c) requesting a review.

Following the recent by-election in the Baxenden ward, it is anticipated that the relevant notices will be received prior to the Council meeting.

If a review is triggered, this may result in adjustments being required to the size of committees and the political balance on those committees.  There may also be consequential amendments to the councillors appointed to serve on those committees.

Further information on any changes being proposed will be available at the meeting.

(Update report attached)

The Council considered a report of Councillor Munsif Dad BEM JP, Leader of the Council, on the outcome of a review of the allocation of seats to political groups and seeking approval to consequential amendments to committee sizes and any changes proposed to the appointment of individual councillors to serve on those committees.

Review of Allocation of Seats

In accordance with The Local Government (Committees and Political Groups) Regulations 1990, the Council was required to review the allocation of seats to political groups under s.15 Local Government and Housing Act 1989, in certain prescribed circumstances.  This included following the service of a notice to the proper officer under Regulation 9 by a member wishing to join a political group on the Council and the acceptance of that application by the group concerned, accompanied by a further notice under Regulation 17(c) requesting a review.

Following the recent by-election in the Baxenden ward, the relevant notices had been received in connection Councillor Heap joining the Conservative Group and a request for a review of the allocation of seats.

The review had resulted in minor adjustments being proposed to the size of committees to maintain to the overall political balance and consequential amendments to the seats available for councillors to serve on the various committees affected.

Allocation of Seats

The total seats available across the Council should now, in so far as is practicable, be divided between the political parties in the following ratio: 63.6% (Labour and Co-operative) 36.4% (Conservative).  The same ratio should be applied, in so far as is practicable, to the allocation of seats on each individual committee/sub-committee.  Members were reminded that at the Council’s Annual Meeting on 23^rd May 2024, it had been agreed to gift a small number of seats to the Green and Independent members on the larger committees, as this would not materially affect the overall political balance.  It was not proposed to alter this arrangement.

The basic calculation to allocate seats to committees of various sizes remained as had been indicated at the Annual Meeting and was as shown in Table 1 below.  At that time the Council had noted that some adjustment to the ratios shown might be required in the final allocation of seats across the Council, to take into account the following principles as required by the legislation:

(a)     Not all seats to go to the same group;

(b)     If a Group had a majority on the Council, it should receive a majority of seats on each committee;

(c)     Total number of seats across all bodies must be proportionate (subject to (a) and (b));

(d)     Seats on each body must be proportionate (subject to (a) to (c)).

Table 1

To note the attached report which was approved by Cabinet on 12^th February 2025.

The Council considered report of Councillor Noordad Aziz, Deputy Leader and Portfolio Holder for Transformation, Education and Skills, and Councillor Vanessa Alexander, Portfolio Holder for Resources and Council Operations, regarding the 3-year projections of income and expenditure for the Council ahead of formulating its 2025/28 Revenue and Capital Budgets.

Councillor Aziz gave a brief introduction to the report.    A copy of the report had also been provided to the Cabinet on 12^th February 2025.

The Council required an update on its medium-term financial outlook ahead of setting the Budget for 2025/26 and determining the level of Council Tax for the new financial year.

In summary, the Council’s activities and finances had been dominated this year by the focus on continuing to deliver its major capital projects, which had included the Levelling Up / Town Centre regeneration, its Leisure transformation through the construction of the new Leisure Centre at the Wilson playing fields site and securing almost £30m in funding to facilitate the development of over 1,800 new homes at Huncoat.  These activities had been carried out along-side of ensuring it delivered its day-to-day services and other key strategic projects.

It was expected that these key events and their impact on the Council’s finances would continue over the next few financial years, with the potential for the effects to continue much longer.

The Council would operate a roll forward Budget for 2025/26 based on the 2024/25 Budget with adjustments for changes to salary and wages, energy and other cost pressures.  This provided Service Managers the ability to respond to inflationary pressures and allowed a degree of stability for 2025/26.  To achieve a balanced Budget, the Council would need to generate £163,900 of internal savings during the year.  Overall expenditure would need to be contained at around £17.314m in 2025/26 to set a balanced budget.

If necessary, the Council might have to use some of its Reserves to help balance the Budget.  This was particularly likely if the Government reduced the amount of financial support it provided the Council or reduced the amount of Business Rates it was allowed to retain.  Additionally, it might be necessary to use Reserves if it was 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 both national and global issues.  Addressing the impact of any proposed Government funding reforms and increased pressures on spending would present it with further challenges over this period.  As the extent of the Government financial reforms was unclear at this time, which produced great uncertainty and potentially significant variance around the forecasts contained in the Medium Term Financial Strategy (MTFS).

With the change in Government in May 2024, the new Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government had stated that there was a vision for change, with local government at its very heart, although there  ...  view the full minutes text for item 365.

To consider the attached report and recommendations which were considered by the Cabinet on 12^th February 2025 and which are referred to Council for approval.

The report also includes the following:

·         Minimum Revenue Provision Policy Statement 2025/26

·         Treasury Management Policy Statement 2025/26

·         Treasury Management Practices 2025/26

Members considered report of Councillor Noordad Aziz, Deputy Leader and Portfolio Holder for Transformation, Education and Skills, and Councillor Vanessa Alexander, Portfolio Holder for Resources and Council Operations, setting 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 2025/26.

Councillor Aziz provided a brief introduction to the report.  A copy of the report had also been provided to the Cabinet on 12^th February 2025.

The Council required an update on the Council’s Capital and Treasury Management activities, and the strategy for the upcoming year.

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 appetite, providing adequate liquidity initially before considering investment return.

The second main 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 (2021) 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.  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 the Council had now adopted the liability benchmark treasury indicator to support the financing risk management of the capital financing requirement.

Appendix 1 of the covering report comprised the Treasury Management Strategy 2025/26-2027/28 document, which included the following detailed sections:

• Background;
• Prudential Code and Prudential Indicators;
• Capital Expenditure and Capital Financing Requirement;
• International Financial Reporting Standard (IFRS) 16 - Leasing;
• Minimum Revenue Provision;
• Affordability Prudential Indicators;
• Treasury Management Strategy2025/26 – 2027/28;

• Current Treasury Position;
• Expected Movement in Interest Rates;
• External Debt Overall Limits;
• External v Internal Borrowing;
• Liability Benchmark;
• Limits on Activity;
• Debt Rescheduling;
• Investment Strategy;
• Environmental, Social and Governance (ESG);
• Treasury Management Practices (  ...  view the full minutes text for item 366.

To determine the General Fund Revenue Budget, Council Tax Levels and Capital Programme for 2025/26.  In order to enable the Council to make the required decisions, the following documents are submitted:-

a)     General Fund Revenue Budget 2025/26

The proposals put forward by the Cabinet on 12^th February 2025 (updated) are set out in the attached report.  Should there be any further changes for consideration, the final proposals of the controlling group will be submitted in advance of the meeting.

b)     New Scheme Additions to the Cabinet Programme in 2025/26 to 2027/28

The proposals put forward by the Cabinet on 12^th February 2025 are set out in the attached report.  Should there be any further changes for consideration, the final proposals of the controlling group 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 20^th February 2025 to consider the budget proposals for 2025/26.  The Committee’s comments will be reported in advance of the meeting.

d)     Council Tax Resolution 2025/26

The report sets out the Council’s budget requirement for 2025/2026 as presented to Cabinet on 12^th February 2025, its Precept on the Collection Fund and the formal details surrounding the Precept of other bodies on the Collection Fund.  Should there be any further changes for consideration, the final proposals of the controlling group will be submitted 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, including any amendments moved and seconded.

Members considered various reports of Councillor Noordad Aziz, Deputy Leader and Portfolio Holder for Transformation, Education and Skills, and Councillor Vanessa Alexander, Portfolio Holder for Resources and Council Operations, setting out the information required to enable the Council to determine its Revenue Budget, Council Tax Levels and Capital Programme for 2025/26.

The Council firstly considered the procedure to be followed during the Budget debate, which included temporary amendments to its Standing Orders.  Approval was granted to the proposed procedure as circulated at the meeting.

Councillor Khan confirmed that the proposed Opposition amendments to the Budget would be circulated later during consideration of this item, at the formal amendment stage of the debate.

The following reports were provided:-

a)         General Fund - Revenue Budget 2025/26

The decision to set the Budget was a fundamental decision of the Council.  The role of the executive was to recommend a proposed Budget to Council.  This report comprised the proposals as presented to and approved by the Cabinet on 12^th February 2025 and incorporated a number of minor updates since that meeting.  Additional papers were also circulated at the Council meeting, as Addendum A, incorporating the authority’s final proposals on the Revenue Budget 2025/26

The report set out the Council’s Revenue Budget for 2025/26.  This would require net expenditure of £17,313,300.

Under these proposals, Council Tax for Hyndburn residents would incur a rise in charge for Hyndburn Council provided services and the charge for a Band D property would increase from £268.43 in 2024/2025 to £276.46.

A number of national and global issues had undoubtedly had an impact on the Council’s budgets and this along with the impact of higher inflation and forecast pay settlements had contributed to the Council raising its element of the Council Tax by the maximum 2.99%, an increase of £8.03 annually on a Band D property.

At the time of drafting the report, Lancashire County Council and the Police & Crime Commissioner had not yet formally taken their decisions on Council Tax Levels for 2025/26.  It was expected that the County Council would raise its Council Tax for each household by a general increase of 2.99% and a 2.0% increase to assist with meeting the cost of Adult Social Care, which would equate to a £82.50 (4.99%) increase overall.  The Police Commissioner had provisionally indicated that he would increase a Band D Property by £14.00 (5.31%).

At their budget meeting on 17^th February 2025, Lancashire Combined Fire Authority had approved an increase to its Council Tax for a Band D Property of £5.00 (5.90%).

Altham Parish Council had set a separate precept for its activities.  This year the Parish Council had decided to increase its precept by 2.66% and the Band D charge for Altham Parish Council would therefore increase from £43.18 for 2024/25 to £44.33 for 2025/26.  The Parish Council would precept the Collection Fund for £14,185.60 for 2025/26.  Details of the proposed position on other Bandings for properties in Altham were shown in Appendix 6 of the  ...  view the full minutes text for item 367.