Agenda and draft minutes

Apologies for absence were submitted on behalf of Councillors Heather Anderson, Andrew Clegg and Ethan Rawcliffe.

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 requested all Councillors to be respectful at today’s meeting.

1.           Councillor Marlene Haworth

The Mayor expressed his sadness at the loss of a dear colleague, Councillor Marlene Haworth. Marlene had served over two separate periods from 2004 to date in the St. Oswald’s Ward, totalling almost 20 years in office. She had been the Leader of Hyndburn Borough Council in 2023/24, the first female Council Leader, as well as Leader of the Conservative Group from 2020 to 2024 and Mayor in 2015/16.

One minute’s silence was observed as a mark of respect.

The Leader of the Council, Councillor Munsif Dad offered his condolences to her family and the Conservative Group.  He noted that she had left her mark on all of the years of service that she had completed.  He was looking forward to her eminent service being formally recognised at a future Council meeting.

The Leader of the Opposition, Councillor Zak Khan spoke of his sadness, noting that the Council Chamber would not be the same without her.  She had left a lasting impact on Hyndburn, inspiring, caring and strong, a dear friend who would not be forgotten.

Councillor Danny Cassidy, Clare Pritchard, Mohammed Younis, Noordad Aziz and Dave Parkins all spoke highly of Councillor Haworth and expressed sadness at her passing.

The Leader of the Council then made the following announcements:

2.           Local Government Reorganisation

The next part of the reorganisation process was a public consultation, which had now been launched and would close on the 26^th March 2026.

The consultation was open to all stakeholders, including:

• Residents;
• Businesses;
• voluntary and community groups; and
• local organisations.

Interested parties were encouraged to submit their views via the following website:

Have your say – Lancashire Local Government Reorganisation

3.           Elections

On 16^th February 2026, the Secretary of State had written to all Council Leaders and key stakeholders in affected areas to inform them that the original decision to postpone the local elections had been withdrawn.  Elections would now be held in Hyndburn on 7^th May 2026.

4.           Manchester Mosque

Following the recent incident at a Manchester mosque, and not long since the attack on the Jewish community in Manchester, the Leader of the Council and colleagues at Lancashire County Council had written to the Constabulary and Police and Crime Commissioner to request all mosques across Lancashire be provided with appropriate support.

To confirm as correct, the minutes of the Council meeting held on 15^th January 2026.

The Minutes of the Council meeting held on 15^th January 2026 were provided.

Resolved                                    –   That the Minutes of the Council meeting held on 15^th January 2026 be approved as a correct record.

To consider and give effect to a request from the Conservative Group for a change to an appointment in the list of Outside Bodies in connection with the Leisure in Hyndburn Board.

The Council makes two appointments annually to the Board of Hyndburn Leisure.  For 2025/26, the appointments comprised - a voting representative from the controlling group (Councillor Melissa Fisher) and a non-voting representative from the main Opposition group (Councillor Loriane Cox).  Councillor Cox has recently resigned from this role and Councillor David Heap has now been nominated as her replacement.

In accordance with s.16(4) The Local Government and Housing Act 1989, the Council is required to give effect to the wishes of the political group concerned.

This item was deferred.

Report attached.

Councillors considered a report of Councillor Vanessa Alexander, Portfolio Holder for Resources and Council Operations, proposing an amendment to the current Council Tax Exceptional Hardship Scheme, which would provide for the inclusion of a local Council Tax exemption for care leavers up to the age of 25.

Councillor Alexander provided a brief introduction to the report.

Since 2017, Lancashire County Council had been committed to ensuring that care leavers in Lancashire up to the age of 25 did not have to face the responsibility of paying Council Tax.

A revised process was set out in the report, which streamlined the process down to two stages, rather than four.

The scheme had previously been reviewed in 2016 and 2021.

Consultations had taken place regarding the proposed changes.

Councillor Shabir Fazal spoke to confirm that he supported the scheme and welcomed the support to care leavers.

Resolved                                  –     That the Council Tax Exceptional Hardship Scheme, attached to the report as Appendix 1, be approved and that the new local exemption be applied to Council Tax bills as soon as reasonably practical in order to provide the care leaver exemption from the 1^st April 2026.

To note the attached report which is due to be considered by Cabinet on 18^th February 2026 (NB. Report updated following that meeting).

The Council considered report of 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 2026-2029 Revenue and Capital Budgets.

Councillor Dad gave a brief introduction to the report.  A copy of the report had also been provided to the Cabinet on 18^th February 2026.

The Council required an update on its medium-term financial outlook ahead of setting the Budget for 2026/27 and determining the level of Council Tax for the new financial year.

In summary, during 2025/26, the Council’s work and finances were largely focused on

delivering major capital projects, including the Levelling Up/Town Centre regeneration, the new Cath Thom Leisure Centre at Wilson Playing Fields, and progress on the Huncoat Garden Village project, which would provide 1,800 new homes.  These efforts had been delivered alongside the Council’s day?to?day services and other key strategic priorities.

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 beyond the MTFS period.

The Council would operate a roll forward Budget for 2026/27 based on the 2025/26

Budget with adjustments for changes to salary and wages, energy and other cost

pressures. This would provide Service Managers with a degree of stability for 2026/27.  Overall expenditure would need to be contained at around £17.608m in 2026/27 to set a balanced budget.

If necessary, the Council might have to use some of its reserves to help balance the Budget. This was likely given the reductions made to Government funding across Business Rates and grants as part of the Fair Funding Review.  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 consequences of both national and global issues.  It would also face the challenges of Government funding reforms and increased pressures on spending over this period.

The 2026/27 Local Government Finance Settlement (LGFS) had introduced the major reforms consulted on as part of the Fair Funding Review, including a multi-year funding approach (the first in 10 years) and changes to grant funding and business rates.  While national Core Spending Power (CSP) was projected to grow steadily, Hyndburn Council itself faced real-terms reductions due to formula changes and limited tax–raising capacity.

The Government had issued its Fair Funding Reform 2.0 consultation paper in June 2025, which had proposed fundamental changes to local government finance.

The proposals had included:

·        A revised funding formula with a stronger link to deprivation levels and population size.

·        A full reset of the baseline for retained business rates in 2026/27.

·        Ending the New Homes Bonus and reallocating the funding to the core settlement.

·        Simplifying and merging multiple grant streams, including those for homelessness prevention, rough sleeping, and temporary accommodation.  ...  view the full minutes text for item 327.

To consider the attached report and recommendations are due to be considered by the Cabinet on 18^th February 2026 and which are proposed to be referred to Council for approval.  (NB. Report updated following that meeting).

The report also includes the following:

·         Treasury Management and Investment Strategy 2026/27

·         Treasury Management Policy Statement 2026/27

·         Treasury Management Practices Statement 2026/27

·         Capital Strategy 2026/27

Councillors considered a report of 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 2026/27.

Councillor Dad provided a brief introduction to the report.  A copy of the report had also been provided to the Cabinet on 18^th February 2026.

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 2026/27 – 2028/29 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 Strategy 2026/27 – 2028/29

·         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 (TMP)

·         Policy on the use of External Service Providers; and

·         Treasury Management Strategy In-Year and Year End  ...  view the full minutes text for item 328.

To determine the General Fund Revenue Budget, Council Tax Levels and Capital Programme for 2025/26.

The Council is firstly requested to consider and approve the procedure to be followed during the Budget debate.  The procedures may include temporary amendments to the Council’s usual Standing Orders to facilitate an effective debate.   A copy of the proposed procedure will be circulated in advance of the meeting.

In order to enable the Council to make the required decisions, the following documents are submitted:

a)         General Fund Revenue Budget 2026/27

The proposals due to be considered by the Cabinet on 18^th February 2026 are set out in the attached report.  (NB. Report updated following that meeting).  Should there be any changes agreed at that meeting and/or any subsequent changes put forward for consideration, the final proposals of the controlling group will be circulated in advance of the Council meeting.

b)         Capital Programme 2026/27 to 2028/29

The proposals due to be considered by the Cabinet on 18^th February 2026 are set out in the attached report. (NB. Report updated following that meeting).  Should there be any changes agreed at that meeting and/or any subsequent changes put forward for consideration, the final proposals of the controlling group will be circulated in advance of the Council meeting.

c)         Comments and Recommendations of Overview and Scrutiny

The Resources Overview and Scrutiny Committee will meet on 23^rd February 2026 to consider the budget proposals for 2026/26.  The Committee’s comments will be reported in advance of the meeting. (Report now attached).

d)         Council Tax Resolution 2026/27

This report will follow* and will set out the Council’s budget requirement for 2026/27 updated following the information presented to Cabinet on 18^th February 2026, together with details the Council’s Precept on the Collection Fund and the formal details surrounding the Precepts of other bodies on the Collection Fund.  (*NB. Report now attached).  Should there be any further changes for consideration, the final proposals of the controlling group will be circulated by way of alterations to the report’s recommendations and will be so moved 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, including any amendments moved and seconded.

Members were provided with a Budget Debate Procedure Note at the start of this item. Councillors were asked to consider the note and to adopt the proposed amendments to the Council Procedure Rules for the duration of this item.

Resolved                                    –   That the temporary amendments to the Council Procedure Rules be approved,for the duration of this item.

Members then considered the following information:

a)           General Fund Revenue Budget 2026/27

An updated version of the report considered by the Cabinet on 18^th February 2026 was provided, a summary of which is set out below along with the recommendations made.

The report set out the Council’s Revenue Budget for 2026/27.  This would require net expenditure of £17,607,700.

Under these proposals, Council Tax for Hyndburn residents would see no increase in the charge for Hyndburn Council provided services and the charge for a Band D property would remain at £276.46 for 2026/2027.

A number of national and global issues had undoubtedly had an impact on the Council’s budgets, including the impact of higher inflation and forecast pay settlements.  Despite this the Council had chosen to prioritise affordability for its residents and freeze its element of the Council Tax for 2026/2027.

At the time of drafting the report, Lancashire County Council, the Police & Crime Commissioner and the Lancashire Combined Fire Authority had not yet formally taken their decisions on Council Tax Levels for 2026/27.  The County Council had proposed a Council Tax increase of 3.8%, as opposed to the maximum of 4.99% that would be possible without referendum.  The Police and Crime Commissioner had proposed an increase to the Band D Property charge of £15.00 (5.41%) and the Lancashire Combined Fire Authority had proposed a £5.00 (5.57%) increase.

Altham Parish Council had set a separate precept for its activities.  This year the Parish Council had decided not to increase the Band D charge for Altham Parish Council, which would therefore remain at £44.33 for 2026/27.  The Parish Council would precept the Collection Fund for £14,141 for 2026/27.  Details of the proposed position on other Bandings for properties in Altham were shown in Appendix 6 to the report.

In setting the Budget for 2026/27 the Council faced continued volatility around some of the most significant items within its Budget.  Major reforms of local government finance had transferred the risk of business rate revenues and Council Tax Benefits to the Council.  The certainty on which the Council could budget and manage its finances had therefore decreased since 2013 and it would be important going forward to plot any deviations away from the expected figures and take appropriate action if these should start to emerge.  This might result in the need to reduce spending during the year, if revenue monitoring started to indicate the amounts of funds received would fall short of the target or if the Council faced an upsurge in spending.

The Cabinet intended to continue the good financial stewardship of the Council’s affairs by continuing its successful policies to manage costs effectively  ...  view the full minutes text for item 329.