Agenda and draft minutes

Apologies for absence were submitted on behalf of Councillor Short and Plummer and from Co-optee, Stacy Walsh.  No declarations of interest of dispensations were declared at the meeting.

There are no minutes to approve at this time.

No minutes were submitted.

The report informs the Committee of the 3-year projections of income and expenditure for the Council ahead of formulating its 2024/25 Revenue and Capital Budgets.

Recommended - That consideration be given to the report.

The Portfolio Holder for Resources, Councillor Peter Britcliffe, submitted a report giving the Council’s Medium Term Financial Position for 2024/25 to 2026/27.  The report had been submitted to Cabinet on 13^th February 2024 and the figures slightly amended due to a Government announcement which added a financial settlement of £123k.  He reported that this funding would be split equally between work on repurposing and reopening Mercer Hall and Oswaldtwistle Civic Theatre. 

The Strategy was appended to the report and set out the three year projections of income and expenditure for the Council ahead of formulating its 2024/27 Revenue and Capital Budget.  The Strategy provided a summary of the main issues taken into account when setting the budget including:-

-       The impact of global events such as the Ukrainian war and the war in the Middle East. 

-       The Council’s own financial position including inflationary pressures and energy costs.

-       The financial forecasts over the next 3 years including the uncertainty around the impact of any Government Financial reforms and increased pressures on spending or other financial challenges which could create a significant variance around the forecast.  .           

The issues raised above present the Council with two very different future budget scenarios.  These scenarios are modelled in the report with the most severe scenario being the Pessimistic model and the other the Standard model.  A third model was also presented, the Optimistic model, which was provided should the Council’s financial position be boosted with a cash injection from the Government, although this was considered very unlikely. 

The appendix attached to the report also provided more detail on:

·         Elements of the MTFS

·         Background

·         Resources

·         Government Grant

·         Council Tax

·         Business Rates

·         Charges in Costs

·         Budget Pressures

·         Capital Costs

·         Resources

·         Other Assumptions

·         Scenarios and Scenario Breakdowns

·         Robustness of the Forecast

·         Overall Net Position

·         Details of each of the 3 scenario models

Cabinet recommended that the report and accompanying Medium Term Financial Strategy is approved.

Resolved                               -   That the report be received and noted.

To set out the Council’s policy and objectives with respect to treasury management, to explain how it will achieve its objectives and manage its activities; and to agree an investment strategy for 2024/25.

Recommended - That consideration be given to the report.

The Portfolio Holder for Resources, Councillor Britcliffe, submitted a report setting out the Council’s Prudential Indicators and Treasury Management and Investment Strategy 2024/25 to 2026/7 which sets out the Council’s policy and objectives with respect to treasury management, to explain how it will achieve its objectives and manage its activities; and to agree an investment strategy for 2024/25.  The report had been submitted to Cabinet on 13^th February 2024.  The Committee was informed that the information that had changed in the document within the last 12 months was minima and that investments had been volatile which had worked to the Council’s advantage.  The following details were summarised in the attachment to the report:-

·         Background

·         Prudential Code & Prudential Indicators

·         Capital Expenditure & Capital Financing Requirement

·         IFRS 16 –Leasing

·         Minimum Revenue Provision

·         Affordability Prudential Indicators

·         Treasury Management Strategy 2024/25 – 2026/27

·         Current Treasury Position

·         Expected Movement Interest Rates

·         External Debt Overall Limits

·         External Vs Internal Borrowing

·         Liability Benchmark

·         Limits on Activity

·         Debt Rescheduling

·         Investment Strategy

·         Environmental, Social & Governance (ESG)

·         Treasury Management Practices (TMP)

·         Policy on the Use of External Service Providers

·         Treasury Management Strategy in – Year & Year-End Reporting

Also included with the report are the Minimum Revenue Provision Policy Statement 2024/25, the Treasury Management Policy Statement 2024/25 and the Treasury Management Practices 2024/25.

Cabinet made the following recommendations to Council:

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

(2)    Approve the Treasury Management Strategy, and associated indicators, as set out in Appendix 1 to the attached report;

(3)    Approve the Investment Strategy as set out in Section 13 of Appendix 1 to the  attached report;

(4)    Approve the Minimum Revenue Provision Policy for the year 2024/25 – as set out in Section 5 of Appendix 1 to the attached report;

(5)    Approve the Treasury Management Policy Statement for 2024/25 – Appendix 2 of the attached report

(6)    Approve the Treasury Management Practices Statement 2024/25 – Appendix 3 of the attached report;

(7)    Approve the Capital Strategy 2024/25 – Appendix 4 of the attached report.

Resolved                               -   That the contents of the report be noted.

This report sets out proposals contained in Revenue Budget Report 2024-2025 as attached at Appendix A. It also provides an overview of key issues arising from the Medium Term Financial Strategy.

Recommended - That consideration be given to the report

The Portfolio Holder for Resources, Councillor Britcliffe, submitted a report setting out proposals for the 2024/25 General Fund Revenue Budget which also provided an overview of key issues which had arisen from the Medium Term Financial Strategy.  The 2024/25 Revenue Budget required a net expenditure of £15,998.500 and under the budget proposals, Council Tax for Hyndburn residents would incur a rise in charge for Hyndburn Council provided services.  The charge for a Band D property would increase from £260.64 in 2022/2023 to £268.43.  The impact of the war in the Ukraine, higher inflation and higher than forecast pay settlements has contributed to the Council raising its element of the Council tax by the maximum 2.99%, an increase of £7.79 on a Band D property.  Lancashire County Council, the Police & Crime Commissioner and the Lancashire Combined Fire Authority have not yet formally taken their decisions on Council Tax levels for 2024/25.  It is expected that all three authorities will raise its Council Tax.  Altham Parish Council has set a separate precept requirement for its activities and has decided to increase its precept by 5.14% and therefore, a Band D charge would increase from £41.07 for 2023/24 to £43.18 for 2024/2025. The Parish Council will precept the Collection Fund for £13,668 for 2024/25.  Details of the proposed position on other Bandings for properties in Altham are shown in Appendix 6 of the report. 

The Council faces continued volatility around some of the most significant items within its Budget and the certainty on which the Council could budget and manage its finances has therefore decreased since 2013.  However, Cabinet intends to continue managing the Council’s affairs effectively and to promote appropriate service investment and the savings target was deemed achievable. It would therefore: 

·         Continue to limit enhancements on early retirement, continue a rigorous approach to absence management and commit to minimising borrowing costs. 

·         The Capital Programme for 2024/25 will continue to deliver key investment in council and public facilities.

·         A large proportion of the capital programme will be phased over the next few financial years which includes the delivery of £24m investment in Accrington Town Centre and a £12m investment in the borough’s Leisure Estate.

·         Continue free parking in Hyndburn Borough Council.

·         Rationalise the use of Council buildings and continuing to look at ways of reducing carbon emissions and energy costs.

The following information was attached to the report, which had been submitted to Cabinet on 13^th February 2024:- 

·         Background to Revenue Budget 2024 -25

·         Medium Term Financial Strategy

·         Continuation Budget

·         Growth & Inflation Pressures

·         Available Resources

·         Resources Summary

·         Budget Proposal

·         Budget Saving Proposals

·         Reserves

·         Risks & Management

·         Consultation

·         Conclusion

·         Appendix 1 –   Initial Outline Budget 2024/25

·         Appendix 2  -  Revenue Budget 2024/25

·         Appendix 3  -  Budget Movements in Year 2024/25

·         Appendix 4  -  HBC Tax Increase 2024/25 by Property Band

·         Appendix 5  -  Estimated Overall Change in Council Tax 2024/25

·         Appendix 6  -  Altham Parish Precept by Property Valuation Band 2024/25

Cabinet made the following recommendations to Cabinet:

                                                  (1)   That Cabinet recommends to  ...  view the full minutes text for item 320.

The report informs the Cabinet of the proposed capital programme for 2024/25 – 2026/27.

Recommended - That consideration be given to the report

The Portfolio Holder for Resources, Councillor Britcliffe, submitted a report relating to the Council’s Capital Programme 2024/25 – 2026/27.  The report set out the Council’s capital investment priorities for 2024/25 including forecast slippage on schemes from 2023/24 and the additions of new schemes to the Council’s Capital Programme for 2024/25.   The significant level of investment in previous years has only been possible by the Council obtaining external financial support as well as the Council’s own effective financial management.  The new additions to the capital programme have reduced to £4.404m compared to £8.374m in the previous year.  External funding of £2.543m has been secured towards the cost of these new capital schemes.  The additions to the programme in 2024/25 will bring the total approved capital programme to £36.104m, including forecast slippage of the unspent programme from 2023/24 of £31.700m, which can be seen in Appendix 1 of the report.  The forecast slippage from the 2023/24 programme includes £10.885m for the Leisure Estate Investment Programme and £17.116m for the Levelling Up Programme which are projects which are expected to be ongoing for the next 1-2 years.

The Council intends to continue its strong policies of financial management and look only to borrow what it needs to fund these major investment projects.

The Revenue implications to finance the Capital Programme continue to be a key element in the affordability issues on the Revenue Budget this year.

Members referred to the cost of bringing Oswaldtwistle Civic Theatre into use and the Committee was informed that estimates were being sought for the renovations and that, long term, the investments in the Civic Theatre and King George V Pavilion would be cost effective. 

Cabinet made the following recommendations to Council:

(1)   To approve the Capital Programme for 2024/25 including new scheme additions of £4,404,015 with a net cost to the Council of £1,861,000 as set out in Appendix 3 of the Appendix to the covering report.

(2)   To approve the funding of the programme by the use of newly anticipated direct external grants totalling £2,543,015 with the remaining funding of £1,861,000 to come from the Council’s resources.

(3)   To note the expected new scheme additions for 2025/26 and 2026/27.

(4)   That delegated authority is given to the Executive Director (Resources), in consultation with the Portfolio Holder for Resources to flex the programme in accordance with the available funding, provided this does not require any additional borrowing.

(5)   That the individual projects with the Capital Programme require the written authorisation of the Executive Director (Resources) following consultation with the Portfolio Holder for Resources before commencing and incurring expenditure and that Service Managers provide the Executive Director of Resources with written details of estimated costs of schemes with full justification of the need and benefits from undertaking the capital investments before approval is provided and that approval to commence is delegated to the Executive Director (Resources), in consultation with the Portfolio Holder for Resources.  That where he deems it appropriate, the Executive Director (Resources) be given authority to  ...  view the full minutes text for item 321.

Opposition groups are invited to table any budget proposals for 2024/25 for consideration by the Committee.

Recommended - That consideration be given to any alternative budget

proposals submitted.

The Main Opposition Group (Labour Group) submitted an amendment to the proposals for the Council’s 2024/25 Budget.  A paper detailing the proposed amendments was circulated to the Committee and contained five proposals, one of which had been withdrawn.  The Committee debated the following four amendments:

Budget Amendment 1 – Develop a policy and framework around HMOs and Care Homes in Community in Hyndburn  ( £10,000 Revenue Impact)

Budget Amendment 2 – Participate in Pathway to Planning LGA Programme  (£36,000 Revenue Impact)

Budget Amendment 3 – Increase support for CAB for the period 24/25 to assist more of Hyndburn residents during cost of living crisis and assist resident with the migration across to UC (Universal Credit)   (£10,000 Revenue Impact)

Budget Amendment 4 – Roll out of Community Clean Up days (2 per ward every year) – Provision for skips and safety equipment)  (£19,000 Revenue Impact)

Budget Amendment 1 - Members considered the amendment and discussions referred to the potential cost of implementing this process.  The Committee was informed that legal representation on the issue would likely to be very costly and there would also need to be greater co-operative working between the Regeneration and Planning Departments.  Reference was made to the work being done by Blackburn with Darwen Borough Council on the issue. 

Budget Amendment 2 – the aim of the programme would be to increase access to the profession of Planning Officers through an apprenticeship scheme.  Discussions related to payment of apprentices and the benefits of this to the Council.

Budget Amendment 3 – Members requested clarification that funding would be ring-fenced by CAB to be used for Hyndburn residents only.  The Leader of the Opposition, Councillor Munsif Dad, confirmed that CAB had agreed for any funding to be ring-fenced.  Detail was also given to how funding for CAB would be beneficial to residents.

Budget Amendment 4 – the Committee discussed the importance of determining how different types of waste could be disposed of, including hazardous waste.

Having given consideration to the debate, Councillor Dad informed the Committee that Budget Amendment 1 would be withdrawn for re-costing and re-drafting purposes.  In respect of the provision of funding to CAB, he clarified that any funding would be reviewed annually.

Resolved                               -   That the submission of the amendments to the proposed Budget for 2024/25 by the Main Opposition Group (Labour Group) be noted.

The Leader of the Council to receive and respond to representations and questions from members of the public and individual members of the Council relating to the 2024/25 budget proposals.

Recommended - That the committee give consideration to the questions submitted and the responses from the Leader of the Council.

There were a number of questions submitted by a Member of the Public.  The questions related to issues including the repayment of a loan to Hyndburn Leisure Trust, Reserves, Business Rates, a finance settlement and the capital investment programme.   Responses were provided to these questions at the meeting.

As part of the Council’s budget setting process, any comments or recommendations from the Resources Overview and Scrutiny Committee relating to the budget will be submitted to Council on 27th February 2024.

Having given consideration to all of the information received in this meeting, this Committee should summarise its comments and any recommendations to be submitted to Council.

The Chair thanked the Acting Leader of the Council and the Leader of the Opposition Party (Labour Party) for submitting their budget proposals and comments for consideration at the meeting.  He reported that a report and the decisions reached during the meeting of the Committee would be submitted to Full Council on 27^th February 2024.

Resolved                               -   That Council be requested to note the following resolutions of the Committee:-

                                            (1)   That the contents of the following reports be noted:-

                                                   Prudential Indicators and Treasury Management and Investment Strategy 2024/25 to 2026/27

                                                   Medium Term Financial Strategy 2024/25 to 2026/27

                                                   General Fund Revenue Budget 2024/25

                                                   Capital Programme 2024/25 to 2026/27

                                            (2)   That the contents of the General Fund Revenue and Capital Programme 2024/25 reports be supported with the Budget amendments 2, 3 and 4 as submitted by the main Opposition Group (Labour Group), as outlined in the report circulated at the meeting;

                                        (3) That the Committee thanks the Acting Leader of the Council  and the Leader of the Opposition Group (Labour Group) for their participation and contribution to the scrutiny of the Budget process.

(4) That the Executive Director Resources, and all other officers involved, be commended for their work in producing the budget.