Agenda and draft minutes

Apologies for absence were submitted on behalf of Councillors Munsif Dad BEM JP and Jenny Molineux.

There were no reported declarations of interest or dispensations.

To approve the minutes of the Cabinet meeting held on 15^th January 2020.

The minutes of the meeting of Cabinet held on 15^th January 2020 were submitted for approval as a correct record.

Resolved                          -    That the Minutes be received and approved as a correct record.

To receive the minutes of the following Boards, Panels and Working Groups:

The minutes of the following meetings were submitted:

• Regeneration and Housing Panel – 10^th June 2019
• Regeneration and Housing Panel – 21^st August 2019
• Regeneration and Housing Panel – 14^th October 2019
• Cabinet Waste and Recycling Group – 19^th December 2019

Resolved                          -    That the Minutes be received and noted.

To receive verbal reports from each of the Portfolio Holders, as appropriate.

The following verbal reports were provided:

Councillor Paul Cox (Deputy Leader of the Council)

Councillor Paul Cox reported that, a new look play area in Church Kirk was already proving popular with local children, with youngsters enjoying lots of new equipment there, including an exciting aerial runway and a large side to side swinging rope.  There was also a climbing frame and an overhead rotator, along with swings, a basket swing and an interactive snakes and ladders game for family fun.

Pupils from the Sacred Heart Primary School in Church were already fans of the large swinging rope, which provided a centre piece within the play area and was the first of its kind in Hyndburn.  It could be used by several children at once and would swing back and forth like a pirate ship at a theme park.

The Hyndburn Green Spaces Forum, working closely with Hyndburn Council’s Parks Team, had secured a grant from the Lancashire Environmental Fund for £30,000, with Hyndburn Council providing the remainder of the funding.  The facilities would help to improve the health and wellbeing of local children and their families.

Resolved                          -    To note the verbal report provided by the Deputy Leader of the Council.

Report attached.

Councillor Loraine Cox, Portfolio Holder for Housing and Regeneration, reported on a proposal to seek a waiver of the Council’s Contract Procedure Rules in respect of the purchase of casework support and voluntary sector support for the Global Resettlement Scheme implementation in Hyndburn.

Approval of the report was not a key decision.

Reason for Decision

The Global Resettlement Scheme (GRS) is being introduced by the Home Office from 2020/21 and will consolidate all current resettlement programmes for refugees.  Lancashire has been asked to be involved by the Home Office and Lancashire County Council (LCC) is the lead authority for its co-ordination on behalf of all Local Authorities in Lancashire.

The GRS will broaden the geographical focus beyond the Middle East and North Africa region.  Therefore, refugees could come from many countries including Syria, Iraq, Iran, Somalia and Sudan.

The funding structure and delivery of the programme for the first cohort arriving in 2020/21 will be very similar to the current Syrian Resettlement Programme in Lancashire.  Both the funding structure and numbers beyond 2020/21 are subject to agreement from the Treasury.

All Lancashire local authorities have been requested to pledge and commit to resettle 10 refugee households over a 5 year period.  Hyndburn has committed to receive the first 5 households in July 2020.  Preparations are now underway to enable this to happen.

Whilst a lot of the arrangements and logistics are co-ordinated by LCC there are numerous responsibilities on Hyndburn Borough Council to undertake prior to the refugees arrival.  These will be detailed in the Agreement between LCC and the Council (to be agreed) and include the following:-

• Sourcing suitable self-contained accommodation; and
• Casework Support Service.

It was reported that Onward Homes, who provided the accommodation for the 10 Syrian Refugee households who arrived in July 2018, have agreed to source and provide houses for the 5 families arriving in July 2020 under the GRS.

Alternative Options considered and Reasons for Rejection

The Council could undertake a procurement exercise to choose a service provider for the above services but this is not recommended for the reasons stated in paragraphs 3.8, 3.10 and 3.11 of the report.

Resolved                        (1)   That Cabinet waives the Council’s Contract Procedure Rules in respect of the appointment of Calico Enterprise Ltd to provide casework support for a period of 2 years for the refugee households arriving in Hyndburn in July 2020 as part of the Global Resettlement Scheme.

(2)   That Cabinet waives the Council’s Contract Procedure Rules in respect of the appointment of Maundy Relief (on behalf of THRIVE) to provide voluntary sector support for a period of 2 years for the refugee households arriving in Hyndburn in July 2020 as part of the Global Resettlement Scheme.

(3)   That Cabinet delegates authority to the Head of Regeneration and Housing in consultation with the Portfolio Holder for Regeneration and Housing to agree the terms of the Council’s agreement with Calico Enterprise Ltd and Maundy Relief and the terms of the Local Authority Agreement between the  ...  view the full minutes text for item 250.

Report attached.

Councillor Joyce Plummer, Portfolio Holder for Resources, provided a report seeking approval to the adoption of a Policy and standard conditions for the licensing of pavement cafes under section 115E of the Highways Act 1980

Approval of the report was not a key decision.

Reason for Decision

Under Section 115E of the Highways Act 1980, a district Council may grant permission for the service, amenities, recreation and refreshment facilities on pedestrianised areas of the highways.  The powers can be used to licence street cafes to enable premises fronting on pedestrian areas to have tables and chairs outside the premises for their customers.

Alfresco eating is becoming a more widespread aspect of urban life and the presence of tables and chairs on the pavement can make a positive contribution by adding vitality, colour, life and interest to an area.  Hyndburn Borough Council supports and encourages the provision of pavement cafes in the area as they can help maximise the use of public spaces, aid the local economy and add to the facilities offered to people who visit, live, and work in Hyndburn.

Whilst the Council wishes to encourage pavement cafes, it is important that they are properly located and managed.  This is to ensure that they meet the standards expected in Hyndburn and that they do not obstruct the highway nor create a hazard for pedestrians, especially for blind, partially sighted and other disabled people.

The area to be used must take into account other needs in the immediate vicinity e.g. kerbside parking, bus stops and pedestrian crossings.  Pedestrians’ needs must be paramount.  The expanse of the pavement cafe must not conflict with any access or dropped crossings that are required for free passage of normal road users.  Barriers and tapping rails should be positioned and maintained to the satisfaction of Hyndburn Council and should be totally removed outside the permitted hours of operation of the cafe, restaurant or bar.

In order to ensure that Pavement Cafes are run in such a manner so as to enhance the area and not to cause a problem to others using the pedestrianised areas, it is important that a robust policy is in place to deal with the issuing and maintenance of the licences issued under the Highways Act 1980.

The granting of such permissions is similar to the processing of other licensing applications dealt with by the Licensing Section and, as many of the premises likely to apply under the Highways Act 1980 are likely also to have premises licences issued under the Licensing Act 2003, it seems sensible for them to be dealt with within the same service.

Under Section 115F of the Highways Act 1980, a Council may attach such conditions as it feels fit to a Street Cafe licence.  Accordingly, it is proposed that the standard conditions set out in Appendix 1 to the Policy, also be approved.

Based on the predicted time spent on administering and controlling pavement cafes it is proposed that the application fee should be set  ...  view the full minutes text for item 251.

Report attached.

Councillor Loraine Cox, Portfolio Holder for Housing and Regeneration, provided a report on the findings of the Resources Overview and Scrutiny Committee “Call-in” in respect of the Cabinet’s decision to approve a £300,000 contribution from the Council’s Capital Programme towards the provision of an adult specialist unit.  The unit would form part of Lancashire County Council’s proposed development of two specialist accommodation units; one for disabled adults and one for disabled children both in Great Harwood.

Approval of the report was not a key decision.

Reason for Decision

At its meeting on the 15^th January 2020, Cabinet approved a £300,000 contribution from the Council’s Capital Programme towards an adult specialist unit.  That decision was subsequently “called in” by the Resources Overview and Scrutiny Committee, which met to consider the matter on the 6^th February 2020.

After careful consideration, the Resources Overview and Scrutiny Committee released the Cabinet decision in full for implementation.

There were no alternative options for consideration or reasons for rejection.

Resolved                          -    That the Cabinet notes that its decision of the 15^th January 2020 in respect of the Disability Service (Specialist Accommodation Unit) was released in full for implementation, following the use of the Call-In procedure.

Report attached.

Councillor Joyce Plummer, Portfolio Holder for Resources, provided a reportinforming Cabinet of the financial spending of the Council up to the end of December 2019 and the financial forecast outturn position for the Accounting Year 2019/20.  Members considered a table within the report which set out the core financial details.

Approval of the report was not a key decision.

Reason for Decision

The spend for the first 9 months of the financial year to the end of December 2019 is £8,756,000 compared to a Budget of £8,887,000 giving a positive variance of £131,000 over the first 9 months of the year.

The current forecast spend to the end of the financial year in March 2020 is £10,776,000 compared to a Budget of £10,994,000.  This forecast produces a positive variance of £218,000 by the end of the financial year.  There are small adverse forecasts for Planning and Transportation, and Environmental Services.  Regeneration and Property Services have a larger adverse variance of 16% of Budget.  Elsewhere positive variances are sufficient to produce an overall surplus for the year.

Environmental Services

Environmental Services are predicting a year end adverse variance of £21,000.  This stems from salary savings of £24,000 and £1,000 of other savings on Food Safety.  Waste Services’ income is up £48,000, along with £22,000 of salary savings and £103,000 positive variance on recycling, less £50,000 of additional miscellaneous expenditure for an overall £123,000 surplus on their budget.  Parks and Cemeteries are predicting a positive variance of £31,000 with the Parks Service indicating savings of £19,000 on salaries and £5,000 on miscellaneous costs offset by £36,000 of reduced income.  Cemeteries are predicting an additional £36,000 income this year and salary savings of £8,000 less £1,000 of additional extra miscellaneous spend.  The Town Centre and Market Hall Budget is indicating an overall adverse variance of £200,000, comprising £190,000 reduced income at the Market Hall and income from CCTV down by £10,000, less £27,000 of salary savings reduced by £27,000 of additional expenditure. 

Culture and Leisure Services

Culture and Leisure Services are indicating a positive variance of £24,000 due to £30,000 of savings on leisure budgets less £6,000 additional net expenditure at the Haworth Art Gallery.

Planning and Transportation

Planning and Transportation are predicting an adverse variance for the year of £32,000.  This is due to a predicted shortfall in income compared to budget on Building Control of £65,000 and additional salary expenditure in this area of £26,000.  Elsewhere on the Budget there are £27,000 of staff savings and £46,000 of additional income less £14,000 of miscellaneous additional expenditure.

Regeneration and Property Services

Regeneration and Property Services are predicting an adverse variance of £169,000 at year-end with salary costs up by £74,000 over the year compared to budget and expected additional costs of £138,000, less £43,000 of additional income.

Policy and Corporate Governance

Policy and Corporate Governance are predicting a positive variance of £21,000.  This stems from salary savings of £281,000 less the Corporate Savings Target for the year of £165,000, predicted increases  ...  view the full minutes text for item 253.

Report attached.

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.

Councillor Plummer highlighted some key issues from the report including:

·         Global uncertainty and uncertainty around the Government’s future approach to supporting local councils;

·         The high levels of certainty around the financial position for 2020/21;

·         Uncertainty around the financial position in 2021/22, as a result of the likelihood of the Government reactivating its Fair Funding Review;

·         The possibility of more funding being made available to local authorities in 2021/22, but questions about to which authorities that funding might be directed given the pressures on adult social care;

·         The potential for Hyndburn Borough Council to lose its Revenue Support Grant in 2021/22 and some of the funding available through Business Rates Retention, but an optimistic view that changes might only be relatively small; and

·         A forecast of a relatively balanced Budget in 2022/23.

In respect of the 2021/22, a 9.1% shortfall would equate to around £1M of savings required, but in the worst case scenario up to £2M could be required.  The Three Year Standard Model forecast set out in the report was based upon a £1M shortfall.

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

Approval of the report was not a key decision.

Reason for Decision

The Cabinet requires an update on its medium term financial outlook ahead of setting the Budget for 2020/21 and determining the level of Council Tax for the new financial year.  This report also ensures those decisions are taken with a view to the overall position of the Council going forward and are not limited to a narrow one year perspective.

Resolved                          -    That the Cabinet approves the report and the accompanying Medium Term Financial Strategy.

Report attached.

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 will achieve its objectives and manage its activities; and to agree an investment strategy for 2020/21.

Councillor Plummer highlighted that the purpose of the report was to set the limits on how the Council used its cash and the limits on both borrowing and investments.  The Council intended to live within its means and did not wish to increase borrowing unnecessarily.  It intended to repay debt whenever it could.  The report also highlighted that interest rates were currently low.  Included in the report were the Minimum Revenue Provision (MRP) for year 2020/21, the Treasury Management Policy Statement 2020/21 and the policy on capital expenditure.

Approval of the report was not a key decision.

Reason for Decision

Treasury management is 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 is required to operate a balanced budget which means that cash raised during the year will meet cash expenditure.  Part of treasury management is to ensure the cash flow is properly planned with cash available when needed.  Surplus monies are invested in line with the Council’s low risk preferences.

The second function of treasury management is funding the Council’s capital plans.  The plans give a guide to the future borrowing need of the Council.  The management of this longer term cash flow may involve arranging long or short term loans or using longer term cash flow surpluses.  Occasionally outstanding debt may be restructured to reduce Council risk or meet cost objectives.

The report has 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 is significant under the provisions of the Local Government Act 2003.  This requires 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 require local authorities to have regard to this guidance.  Acceptance of the report fulfils 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  ...  view the full minutes text for item 255.

Report attached.

Councillor Joyce Plummer, Portfolio Holder for Resources, provided a report setting out proposals for the 2020/21 General Fund Revenue Budget.  It also provided an overview of key issues arising from the Medium Term Financial Strategy.

The decision to set the Budget would be a principal decision of the Council.  The role of the Cabinet was to recommend a proposed Budget to the Council.

Councillor Plummer highlighted key points from within the report including:

• Predicted spending in 2020/21 of £11.3M;
• Estimated revenue available in the sum of £11.2M;
• A requirement of £116k to balance the Budget, to be financed by corporate in-year savings;
• A proposed Band D Council Tax of £250.52, which equated to around a 10p/week increase (approximately 2%) from last year’s figure;
• The majority of houses in Hyndburn were in Band A, which would be subject to a 7p/week increase;
• In setting the Budget, assumptions had been made about likely increases in salaries and non-pay expenses (both 2%);
• If any estimates were too low an overspend would result, for which in year action would need to be taken;
• There were a number of other potential threats during the year, but the Council had a good track record of financial management and usually returned a Budget surplus;
• A list was provided of the anticipated precept requirements of Lancashire County Council, Lancashire Police and Crime Commissioner, Lancashire Fire and Rescue Authority and Altham Parish Council.

Overall, the planned Budget gave rise to a moderate rise in Council Tax against a background of continuing pressure on public finances.

The report provided further details as follows:

The Council’s proposed Revenue Budget for 2020/21 includes net expenditure of £11,227,000.

Under these proposals, Council Tax for Hyndburn residents will rise for Hyndburn Council provided services by £5.00 (2.04%) for a Band D property.  (The amounts due for each band were set out in an Appendix to the report).  The increase is equivalent to 10p per week for a Band D property, but for most residents the increase will be less than 7p per week as the majority of households in Hyndburn are Band A properties that pay two-thirds the value of a Band D property in Council Tax.

This is the only the fourth rise in Council Tax for Hyndburn services since 2009/10 and the average annual increase over this period has been below 1%.  This is significantly below the rate of inflation over this period.  If the Council had increased Council Tax simply by inflation (CPI) over the last 11 years rather than the actual increases made, Council Tax for Hyndburn’s services would have been almost 13% more expensive at £282.83 for each average Band D property within Hyndburn which is £32.31 more than proposed for 2020/21 at £250.52.

The increase in Council Tax by Hyndburn Council is a result of cost pressures from wages, other expenditure inflation and the loss of income which have risen at a faster rate than the increases generated from Government Grant or Business Rates.  The level of increase  ...  view the full minutes text for item 256.

Report attached.

Councillor Joyce Plummer, Portfolio Holder for Resources, provided a report inviting the Cabinet to consider the Council’s capital investment priorities for 2020/21 and recommending to the Council a Capital Programme for approval at its meeting on the 27^th February 2020, having regard to key linkages between the management of the Council’s capital and revenue resources.

Councillor Plummer highlighted some key messages from the report as follows:

• Some £3.1M of capital; investment was planned in the local economy in 2020/21;
• Specific schemes included £1.25M of investment in the Market Hall including interior refurbishment and leisure usage and removal of the outdoor pavilions to create car parking and additional public space, with a view to increasing footfall;
• Support to people to continue living in their own homes through use of £1M Disabled Facilities Grant, which would help to alleviate pressure across other public services including the NHS and adult social care
• Other improvements to the Council’s sports facilities, Willows Lane Depot and ICT; and
• Capital funding would be available from both internal and external sources.

The Report sets out the Council’s Capital Programme for 2020/21.  In the past 20 years, the Council has funded significant programmes of Capital Expenditure which sometimes exceeded £15m per annum.  In these more austere times it is not possible to fund investment into the local community at these levels.  However the Council is able to put forward a substantial capital investment programme of over £3.1m, despite the severe reductions in public spending that have been necessary due to the Recession.  This has only been made possible by the Council’s effective financial management over recent years, which has seen it avoid additional borrowing and increase its revenue reserves, while reducing its operating costs.

It is intended that the Council will continue these strong policies of financial management and this year will again avoid increasing its borrowing.  It will rely on securing external sources of funding, using capital receipts, making revenue contributions to capital projects and will use unspent monies to fund its programme.  It will also apply a rigorous approach to selecting projects by examining all proposals against its corporate objectives and only selecting the most pressing and deserving projects to fund.  This is in accordance with the Council policy of limiting the increase in debt and borrowing costs, while ensuring the Council’s objectives are met.

The Revenue implications of the strategy to finance the Capital Programme are a key element in the affordability issues on the Revenue Budget this year.  The programme contains a limited amount of risk this year.  The level of risk is significantly down from previous financial years.  This is largely due to the smaller programme and the removal of much of the risk around the level of available capital funds to meet the proposed expenditure.  The Council’s overall resources and management systems are believed to be sufficiently robust to effectively monitor these risks and ensure appropriate action is taken if they should materialise.

The Council will continue with its strategy adopted for  ...  view the full minutes text for item 257.

Report attached.

In the absence of the Portfolio Holder for Education, Leisure and Arts, Councillor Munsif Dad BEM JP, the Leader of the Council introduced a report which presented Haworth Art Gallery’s proposed policies and plans which formed the Council’s Museum Accreditation submission to Arts Council England.  The report also sought the Cabinet’s approval to the detailed application for accreditation, which was available to view on the Council’s website.

Councillor Parkinson noted that the Art Gallery was one of the Borough’s jewels and featuring the renowned Tiffany Glass collection, monthly events held by staff and a privately run café.  Accreditation should help to provide better access to external funding opportunities.  Councillor Parkinson wished the Gallery and its staff well for the future.

Approval of the report was not a key decision.

Reason for Decision

The Museum Accreditation Scheme is the UK industry standard for museums and galleries and sets out nationally-agreed standards which promote and inspire confidence with the public and funding bodies.  Accreditation does this by making sure museums manage their collections properly, engage with visitors and ensure that they are governed appropriately. The Haworth needs to renew its Arts Council England Museum Accreditation and a draft submission has been prepared for Cabinet to consider.

Accreditation is required by all Museums and Art Galleries to be eligible for funding by Arts Council England or National Lottery Heritage Fund and is renewed every 5 years.  Having accreditation has allowed Haworth Art Gallery to access funding for the successful Stables and Motor House Artists’ Studios.  As a result the project has been used as a model for best practise with the National Lottery Heritage Fund (NLHF).

The application includes a number of sections, including a series of plans and policies which are summarised as follows.

For the Governance and Management section of Accreditation, an approved Forward or Business Plan is required which covers the current and subsequent planning year will be written in accordance to the Arts Council of England guidelines for Museum and Art Gallery Accreditation.  The section is required to include appropriate governance and management standards including a clear statement of purpose, an appropriate constitution and a satisfactory structure for governance and management.  It is also required to cover a set period and include the key aims Haworth Art Gallery wants to achieve and an explanation of how these aims will be achieved in terms of staff and volunteers, equipment and budgets. Budgets for the current year and subsequent planning year are required.  The section must include a review date.

Under the Managing Collections section of Accreditation three policies are required.  They are a policy for Developing Collections and include acquisition and disposal.  An approved Documentation Policy which details the management of collections ensuring all objects are properly accounted for and useable.  Lastly an approved Collections Care and Conservation Policy setting out details of ethical commitments and legal requirements to improve the way objects are cared for and conserved for future generations.  The policies must include review dates.

In  ...  view the full minutes text for item 258.