Agenda and minutes

An apology for absence was submitted from Councillor Moss.

There were no declarations of interest or dispensations.

To approve the Minutes of the last meeting of Cabinet held on 3^rd January 2018.

The Minutes of the meeting of Cabinet held on 3^rd January 2018 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 meetings:-

a)         Local Plan Member Working Group  -  23^rd October 2017

b)         Regeneration and Housing Panel  -  20^th November 2017

The Minutes of the following meetings were submitted:-

a)         Local Plan Member Working Group – 23^rd October 2017

b)         Regeneration and Housing Panel  -  20^th November 2017

Resolved                               -   That the Minutes be received and noted.

To receive reports relating to the use of the Urgent Cabinet Decision Procedure:-

a)         To Waive the Council’s Contract Procedure Rules for a Replacement Fire Alarm at the Haworth Art Gallery

b)         Fire Safety

c)         Fire Safety  -  Elmfield Hall, Church

PART B:  PORTFOLIO ITEMS

The following reports relating to the use of Urgent Cabinet Decision Procedures were submitted for noting:

a) To Waive the Council’s Contract Procedure Rules for a Replacement Fire Alarm at the Haworth Art Gallery.

b)  Fire Safety

c)  Fire Safety – Elmfield Hall, Church

Resolved                               -   That the Urgent Cabinet Decisions be noted.

To receive reports from Cabinet Members.

Leader of the Council (Councillor Miles Parkinson)

There were no reports.

Report attached.

Portfolio Holder for Resources (Councillor Gareth Molineux)

The Leader of the Council submitted a report relating to work continuing on preparation of the new Local Plan for Hyndburn. Once completed, the documents would replace the final saved elements of the 1996 Local Plan.

The report was intended to explain the context and content of three consultation documents proposed to be the subject of a public consultation exercise to be commenced in late February. This would form part of the initial preparation phase of the Site Allocations DPD and Core Strategy review (under Regulation 18 of the Town Country Planning (Local Planning) (England) Regulations 2012).

Reasons for Decision

The Local Plan was the long-term development framework for the area. The Core Strategy provided the strategic overarching planning policy framework for the Borough.  The need for a review of the Core Strategy was set out in the report and a review of the Core Strategy would be twin-tracked alongside preparation of the final part of the new Local Plan, the Site Allocations DPD.  Two stages of consultation would be undertaken under Regulation 18 (Preparation) and each stage would be presented to Cabinet and/or Council for approval at the relevant time, and the Local Plan Working Group would continue to meet on a regular basis to help steer the development of the Local Plan. Stage 2 of the Regulation 18 (Preparation) phase was currently anticipated to be in early 2019, with Submission planned for 2020 which would then commence the independent examination process. A more detailed project plan would be prepared by Officers in support of this work and brought to Cabinet at a later date.

Three documents were recommended for public consultation: the first two related to the review of the Core Strategy; the third related to the Site Allocations DPD. As part of the publicity process and communication in relation to the consultation, it was also proposed to notify all interested parties of the closure of the ‘Call for Sites’ exercise that had been open and ongoing for some years now. This would enable the Council to collate a definitive list of all site submissions in readiness for site assessments to be undertaken at the next stage.

Alternative Options Considered and Reasons for Rejection

The Core Strategy Review and Site Allocations DPD was being prepared in accordance with the Town and Country Planning (Local Planning) (England) Regulations 2012. As the preparation of this document was to be in accordance with this legal framework there were no alternative options for its preparation.

Resolved                           (1)   That the key stages of preparation for both the Core Strategy Review and the Site Allocations DPD, the final parts of the new Local Plan for Hyndburn be noted;

                                (2)   That the content of the Core Strategy Review and Site Allocations DPD consultation documents and commencement to a 6-week statutory consultation process be approved; and,

                                (3)   That authority be delegated to the Executive Director (Legal and Democratic Services) and the Chief Planning and Transportation Officer, in consultation with the Portfolio Holder for Planning, to  ...  view the full minutes text for item 336.

Report attached.

The Portfolio Holder for Resources (Councillor Gareth Molineux) submitted a report setting out the Council’s policy and objectives with respect to treasury management, explaining how it would achieve its objectives and manage its activities; and to agree an investment strategy for 2018/19. 

The Minimum Revenue Provision Policy Statement 2018/19 and the Treasury Management Policy Statement 2018/19 were attached to the report as Appendices 1 and 2 respectively.  The Treasury Management Practices 2018/19 were set out in Paragraph 14 of the report and Appendix 3.

The Prudential Code for Capital Finance in Local Authorities was a professional code which set out the framework for self-regulation of capital spending and financing.  It allowed councils to invest in capital projects without any limit as long as such investment was affordable, prudent and sustainable.  The Code was produced by Cipfa and required the Council to agree and monitor a minimum number of prudential indicators (including limits and statements) which related to affordability, prudence, capital expenditure, external debt and treasury management.  The indicators were purely for internal use and were not designed to be used as comparators between councils.

The Council was also required to set out its Treasury Management and Investment Strategy for borrowing and investment activities and the effective management of associated risks, in accordance with the Chartered Institute of Public Finance and Accountancy (Cipfa) Code of Practice on Treasury Management in Public Services, as revised or supplemented by Cipfa from time to time.

The following aspects were addressed in the report:-

v  Prudential Code and Prudential Indicators

v  Capital Expenditure and Capital Financing Requirement

v  Estimated Capital Expenditure

v  Minimum Revenue Provision

v  Affordability Prudential Indicators

v  Treasury Management Strategy 2018/19 – 2020/21

v  External Debt Overall Limits

v  External v Internal Borrowing

v  Limits on Activity

v  Debt Rescheduling

v  Investment Strategy

v  Treasury Management Practices

v  Policy on the Use of External Service Providers

v  Treasury Management Strategy In-Year and Year End Reporting

Approval of the report was not deemed a key decision.

Reasons for Decision

(1)        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 those activities and the pursuit of optimum performance consistent with those risks.

(2)        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.

(3)        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 that 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.

(4)        The report had  ...  view the full minutes text for item 337.

Report attached.

The Portfolio Holder for Resources submitted a report relating to the financial spending of the Council at the end of December 2017 and the financial forecast outturn position for the Accounting Year 2017/18.  The financial detail of the report was appended to the report.  The spend against Budget in the nine months of the year was £7,820,713 against a Budget of £8,156,995 leaving a positive variance of £336,282.  The forecast spend for the year to 31^st March 2018 was £10,811,541 against a Budget of £11,096,223.  This forecast produces a positive variance of £284,000.  The main areas of financial pressure are Parks & Cemeteries and Regeneration and Property Services.      The current estimate for the year is a £238,000 positive variance.  Approval of the report was not deemed a key decision. 

Reasons for Decision

To inform Cabinet of the financial spending of the Council at the end of December 2017 and the prediction of the outturn position to the end of the financial year in March 2018.

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

Resolved                               -   That the report be noted and Corporate Management Team be asked to reduce costs and increase income over the remainder of the year to improve the Council’s overall financial position.   

The following item was submitted as urgent business with the Chair’s agreement in accordance with Section 100b(4) of the Local Government Act 1972, the reason being to ensure the most up to date information available is provided.

Report attached.

The Portfolio Holder for Resources submitted a report relating to the three year projections of income and spending for the Council ahead of formulating its 2018/19 Revenue and Capital Budget.  The Medium Term Financial Strategy was attached to the report and set out for the next three years:-

(a)        The way in which the Council went about its financial planning processes, especially in relation to the corporate budget planning cycle, which was subject to the Budget and Policy Framework Procedure Rules.

(b)        An updated action plan for the process and arrangements for reporting on progress to date in formulating and updating future years’ budgets.  Specifically the report updated the Medium Term Financial Strategy presented to Cabinet in October 2017.

Appendix 1 of the background to the current budget predictions in figures to give an idea of commitments, funding and potential Council Tax levels.  Two further scenarios were provided in Appendices 2 and 3 to outline the potential range of values over the coming period.  Appendix 2 indicated the outer level of what the Council could face in a pessimistic future, whilst Appendix 3 showed an optimistic forecast based on many things going in the Council’s favour over the next three years.  The figures in Appendix 1 however remained the current best estimate of the likely financial position over the next three years.

The following aspects were addressed in the Strategy:-

v  Introduction

v  Objectives

v  Elements of the Medium Term Financial Strategy

v  Service Planning to Support Overall Strategy

v  Integrated Resource Planning with Service Plans

v  Background Information

v  Financial Analysis 2018/19 to 2020/21

v  Resources

v  Government Grant

v  Changes in Costs

v  Pension Costs

v  Supplies and Service Costs

v  Capital Costs

v  Growth

v  Reserves

v  Other Assumptions

v  Equality Impact Assessment

v  Scenarios

v  Robustness of Forecast

v  Overall Net Position

Approval of the report was not deemed a key decision.

Reasons for Decision

Cabinet required an update on its medium term financial outlook ahead of setting the Budget for 2018/19 and determining the level of Council Tax.  The report also ensured 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.

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

Resolved                               -   That the report and accompanying Medium Term Financial Strategy (MTFS) be approved.

The following item was submitted as urgent business with the Chair’s agreement in accordance with Section 100B(4) of the Local Government Act 1972, the reason being to ensure the latest up-to-date information was included in the report

Report attached.

The Portfolio Holder for Resources submitted a report setting out proposals for the 2018/19 General Fund Revenue Budget.  The report also provided an overview of key issues which had arisen from the Medium Term Financial Strategy.  The decision to set the Budget would be a key decision of the Council and the role of the Cabinet was to recommend a proposed Budget to Council.  The 2018/19 Revenue Budget required a net expenditure of £11,174,000 and under the budget proposals, Council Tax for Hyndburn residents would rise by £5.00 per year for a band D property.  The amounts due for each band are shown in Appendix 4 of the report.  Altham Parish Council had issued a separate precept requirement for its activities but does not intend to increase its precept.  The following information was attached to the report:-

Appendix 1  -  Initial Outline Budget 2018/19

Appendix 2  -  Revenue Budget 2018/19

Appendix 3  -  Saving Proposals 2018/19

Appendix 4  -  Hyndburn Borough Council Tax Increase 2018/19 by Property Band

Appendix 5  -  Overall Change in Council Tax 2018/19

Appendix 6  -  Altham Parish Precept 2018/19 by Property Valuation Band

Approval of the report was not deemed a key decision.

Reasons for Decision

The recommendations in the report provided an appropriate platform on which the Cabinet could recommend a Budget for the Council which met the objectives and key priorities of the people of Hyndburn.

Alternative Options Considered and Reasons for Rejection

A wide number of individual proposals had been put forward to produce a Balanced Budget.  Options had been rejected on a variety of grounds including policy objectives, practicalities and the potential for additional costs to be incurred.  Further options might be presented at the Council meeting on 22^nd February 2018.

Resolved                           (1)   That an increase in Council Tax for 2018/19 by £5.00 per year for a Band D property be recommended.  This would be equivalent to less than 10 pence per week and as most households in Hyndburn are Band a rather than Band D properties, the vast majority of households would only see a rise of 7p per week.  That the Budget for 2018/19 would therefore be £11,174,000 as detailed in Appendices 1 and 2;

                                (2)   That it be recommended that the list of savings and budget changes for 2018/19, as set out in Appendix 3 of the report, be approved;

                                (3)   That the significant improvements made in relation to budget monitoring and cost reduction within the Authority over the past 14 years be noted and the commitment to continuing that approach in the year ahead be confirmed;

                                (4)   That it be recommended that during the financial year 2018/19, the Deputy Chief Executive 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;

                                (5)   That it be recommended that during the financial year 2018/19 the  ...  view the full minutes text for item 340.

Report attached.

Portfolio Holder for Housing and Regeneration (Councillor Clare Cleary)

The Portfolio Holder for Resources submitted a report inviting Cabinet to consider the Council’s capital investment priorities for 2018/19 and to recommend to the Council a capital programme for approval at its meeting on 22^nd February 2018, having regard to key linkages between the management of the Council’s capital and revenue resources.  A Capital Programme for 2018/19 of £5 million was appended to the report.  Approval of the report was not deemed a key decision.

Reasons for Decision

The schemes represented the best value for money and met the Council’s overall corporate policy objectives, within the funding envelop for the year.

Alternative Options Considered and Reasons for Rejection

A wider programme of funding had not been considered due to the Council’s policy commitment to limiting Capital Expenditure to affordable levels and seeking to repay debt.

Resolved                               -   That the following proposals be submitted to Council:-

                                       (1)     A Capital Programme for 2018/19 of £4,939,283 as set out in Appendix 1 of the report;

                                       (2)     That the Programme be funded by anticipated direct external grants and other funding streams of £1,853,559 along with scheme funding from other sources of £947,693 and £2,138,031 of new investment from the Council’s resources.  External grant funding must be secured before any internal funds are committed to projects that rely on external funding to proceed;

                                       (3)     That authority be delegated to the Deputy Chief Executive, in consultation with the Portfolio Holder for Resources, to flex the programme in accordance with the available funding, provided that does not require any additional borrowing;

                                       (4)     That the individual projects within the Capital Programme require the written authorisation of the Deputy Chief Executive, following consultation with the Portfolio Holder for Resources, before commencing and incurring expenditure and that Service Managers provide the Deputy Chief Executive with written details of estimated costs of schemes with full justification of the need and benefits from undertaking the capital investments before approval was provided and that approval to commence be delegated to the Deputy Chief Executive, in consultation with the Portfolio Holder for Resources;

                                       (5)     That projects be timed to minimise the need for borrowing and the Deputy Chief Executive be requested to seek project start dates after September 2018 whenever that was practical;  and,

                                       (6)     That in-year underspends are not made available to fund new projects during the year.

The following item was submitted as urgent business with the Chair’s agreement in accordance with Section 100B(4) of the Local Government Act 1972, the reason being to enable the implementation of the proposed reductions in February and March 2018.

Report attached.

The Portfolio Holder for Housing and Regeneration submitted a report to inform Cabinet of proposals to carry out a comprehensive review of rents and charges at Accrington’s markets and to seek approval for a fifty per cent rent and service charge reduction for February and March 2018 for long term Market Hall businesses that are not benefitting from any current incentives or concessions.

Reasons for Decision

It is a significant number of years since Accrington Market rents and charges (indoor and outdoor) were formally reviewed and valued.  In recent years Accrington town centre retail rents have decreased as a direct result of a decline in town centre shopping.  Whilst market trading is a different offer to the high street store, traders have options and make charging comparisons.  In addition, many Markets, including some local, have reviewed their charges.  In the circumstances, it is important that we review the current charging structure at Accrington’s Market to ensure they reflect the wider trading environment and, at the same time, ensure the long term viability and sustainability of Accrington Markets.

A review of Accrington Market’s charges is underway led by a Cabinet Working Group with the aim of concluding the review in the spring of 2018 and then to report the findings of the review with recommendations back to Cabinet.

Accrington indoor market is occupied by a significant number of long term tenants who have operated alongside a number of newer tenants on incentive rates.  As per the Portfolio Holder’s recent announcement at the Full Council meeting on the 11^th January 2018 it is proposed to grant a 50% rent and service charge reduction for February and March 2018 only to eligible tenants acknowledging their long term commitment to Accrington Markets and town centre.

The proposal will therefore benefit indoor traders on the Market Hall ground floor and the Kiosk lease holders subject to the eligibility criteria.  Any eligible trader with the equivalence to one month’s arrears or more will have their discount credited to their account to reduce any arrears.

Alternative Options Considered and Reasons for Rejection

Values and charging options will be fully considered as part of the rents and charging review to be carried out:

Resolved                                  (1)     That a Cabinet Working Group carries out a comprehensive rent and charging review at Accrington indoor and outdoor markets to be completed by Spring 2018;  and

                                       (2)     That a 50% rent and service charge reduction for indoor Market Hall and Kiosk tenants for the months of February and March 2018, only as per the criteria set out in paragraph 3.4 of the report, be approved.

The following item was submitted as urgent business with the Chair’s agreement in accordance with Section 100B(4) of the Local Government Act 1972, the reason being to meet the timescale involved in the disposal of the Council’s interest in the site to the preferred bidder.

Report attached.

The Head of Regeneration and Housing submitted a report to inform Cabinet of the interest and bids received for the Steiner Street site in Accrington (as set out in Appendix 1 of the report) and to seek Cabinet’s approval to dispose of the Council’s interest in the site to the preferred bid as set out in the report.

Reasons for Decision

Over the last twelve months the Council has been actively marketing the Steiner Street site as a potential development opportunity.  The net development area of the site is approximately 1.52 acres including all existing adopted highways and existing services.

The site is a cleared site of former terraced housing but not allocated within the local plan, but Local Plan Policy allows for residential and employment development where the character of the land area is not detrimentally affected and potentially enhanced given its location on the main access route into Accrington town centre.  The site is on the edge of Accrington town centre and therefore any proposals for retail, including trade, would be subject to a sequential test.

The Council has very recently updated its valuation of the site.  It is clear from the bids submitted (refer to ‘3.4’ below) there is no interest from the market for the site at the estimated open market values.  Over recent months the Council has received four bids/expressions of interest for the Steiner Street site and after careful consideration Cabinet are invited to support bid “A”.

Subject to Cabinet’s consideration of the recommendations and subsequent decision, the Head of Regeneration and Housing can explore with the unsuccessful bidders other possible locations within the Borough where their project proposals can be supported.

The bid is less than the Council’s view of the market value. However, the Council is permitted to sell land at an under value if it is satisfied that a disposal promotes the social, environmental or economic wellbeing of the Borough or part of it or its residents.  In this particular case, the proposed disposal meets the wellbeing criteria.

Alternative Options Considered and Reasons for Rejection

The Council could consider not selling the site; however, this option is not recommended because the proposed disposal provides the Council with an opportunity to generate a capital receipt, and at the same time, redevelop the area for the social, environmental and economic wellbeing of the Borough.

Resolved                            (1)  That the proposed disposal of the Steiner Street  site to Bid A be supported;

                                (2)   That approval be given to the advertisement of the Council’s intention to dispose of public open space in accordance with Section 123(2A) of the Local Government Act 1972; and,

(3)  That authority be delegated to the Head of Regeneration and Housing to consider any responses to the advertisement of the disposal of land received and, following consultation with the Portfolio Holder for Housing and Regeneration, to decide whether to proceed with the disposal of the Steiner Street site;

(4)  That, subject to a decision being taken to proceed with the sale  ...  view the full minutes text for item 343.