Agenda and minutes

Apologies for absence were submitted on behalf of Councillor Marlene Haworth, Leader of the Council, and on behalf of Councillors Munsif Dad BEM JP, Noordad Aziz and Melissa Fisher, who were standing invitees as Leader and Acting/Joint Deputy Leaders of the Labour Group respectively.

Councillors Zak Khan and Mohammed Younis both declared a disclosable pecuniary interest in Agenda Item 6, Council Tax Empty Property Liability, on the grounds that they had, or might have, an interest in properties which would be subject to the Council Tax Empty Property Liability Policy.

The Chair announced that he intended to defer Item 6 to the end of the meeting.

There were no reported dispensations granted.

To approve the Minutes of the last meeting of Cabinet held on 24^th January 2024.

The minutes of the meeting of the Cabinet held 24^th January 2024 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 meetings of the following bodies:-

The minutes of the meeting of the following body were provided:

Resolved                                    -    That the Minutes of the meeting of the above body be noted.

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

There were no verbal reports from Portfolio Holders on this occasion.

With the agreement of the meeting, Item 6 was deferred to be taken as the last Agenda Item

Report attached.

The Cabinet considered a report of Councillor Peter Britcliffe, Deputy Leader and Portfolio Holder for Resources, setting out the 3-year projections of income and expenditure for the Council ahead of formulating its 2024/25 Revenue and Capital Budgets.

Councillor Britcliffe highlighted that the Medium Term Financial Strategy (MTFS) identified the financial outlook for the next three years.  In setting its Budget, the Council should have regard to the medium term situation and not take a narrow one year view.

Approval of the report was not considered to be a key decision.

Reasons for Decision

The Cabinet required an update on its medium term financial outlook ahead of setting the Budget for 2024/25 and determining the level of Council Tax for the new financial year

In summary, the Council’s activities and finances had been dominated this year by the impact from the War in Ukraine and focussing on the Levelling Up / Town Centre regeneration along with ensuring it delivered its day-to-day services and other key strategic projects.  It was expected that these key events and their impact on the Council’s finances would continue over the next few financial years, with the potential for the effects to continue much longer.

The Council would operate a roll forward Budget for 2024/25 based on the 2023/24 Budget with adjustments for changes to salary and wages, energy and other cost pressures.  This provided Service Managers the ability to respond to inflationary pressures and allowed a degree of stability for 2024/2025.  In order to achieve a balanced Budget the Council would need to generate £106,300 of internal savings during the year.  Overall expenditure would need to be contained at around £15.999m in 2024/25 to set a balanced budget.

If necessary, the Council might have to use some of its Reserves to help balance the Budget.  This was particularly likely if the Government reduced the amount of financial support it provided the Council or reduced the amount of Business Rates it was allowed to retain.  Additionally, it might be necessary to use Reserves if it was believed that in the current economic climate it would be inappropriate to raise Council Tax.

The Council would face significant financial challenges over the next three years as it sought to overcome the consequences of the War in Ukraine and ongoing conflict in the Middle East.  Addressing the impact of any proposed Government funding reforms and increased pressures on spending would present it with further challenges over this period.  As the extent of the Government financial reforms were unclear at this time, this produced great uncertainty and potentially significant variance around the forecasts contained in the MTFS.

Previously, for the last five years the expectation had been that the Government would implement what it termed as a “Fair Funding Review of Local Government Finance.”  This proposal would effectively end the Revenue Support Grant to the Council and potentially redistribute the amount of Business Rates the Council was allowed to retain to other Councils.  The expected impact of these  ...  view the full minutes text for item 303.

Report attached.

Members considered a report of Councillor Peter Britcliffe, Deputy Leader of the Council and Portfolio Holder for Resources, providingthe 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 2024/25.

Councillor Britcliffe indicated that this was a largely technical report, which demonstrated compliance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Guidance and Local Government Act 2003.

Approval of the report was not considered to be a key decision.

Reasons for Decision

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

Treasury Management was defined as follows:

“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 longerterm 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 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 the 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 report comprised the Treasury Management Strategy 2024/25-2026/27 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;
• Minimum Revenue Provision;
• Affordability Prudential Indicators;

• 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  ...  view the full minutes text for item 304.

Report attached.

The Cabinet considered a report of Councillor Peter Britcliffe, Deputy Leader of the Council and Portfolio Holder for Resources, setting out the Budget proposals contained in the main Revenue Budget Report 2024-2025, provided as Appendix A.  The report also provided an overview of key issues arising from the Medium Term Financial Strategy.

Councillor Britcliffe highlighted that the Council intended to set a balanced budget for 2024/25 without drawing on its reserves, reducing services or staffing levels.  This represented a very stable position, notwithstanding cost pressures caused by uncertainty around the award of Government grant (approximately £2m), the war in Ukraine, rising energy costs, inflation and the possible resurgence of pandemic issues.  On-going conflict in the Ukraine and Middle East was unlikely to dissipate soon.  The Budget included provision for the staff pay award (£1.2m).  The total net expenditure increase was £1.72m. 

The Budget would be financed mainly by Government grant, Business Rates growth, Council Tax increases and Council Tax Base growth.  The Council Tax increase for Hyndburn would be 2.99%, which would give rise to an increase in a Band D property of £7.79 per year.  The majority of Hyndburn properties were in Band A, for which the increase would be £5.20 per year.  Members were reminded that there had been no Council Tax increase for Hyndburn in 2023/24.  This year’s increase would cover inflation and some growth as well as protecting staff pay, pensions and jobs.

The final precept requirements of Lancashire County Council, the Police and Crime Commissioner, Lancashire Combined Fire Authority and Altham Parish Council would be available before the Council meeting on 27^th February 2024.

Following successful lobbying by the local MP, the Government had now announced the award of a further £123k grant per year, in addition to the amount indicated in the provisional finance settlement.  Accordingly, it was the intention of the controlling group to propose an amendment to the published Budget proposal to provide additional investment to support the reopening of Oswaldtwistle Civic Theatre, repurposing of Mercer Hall and the introduction of a food waste collection service in 2026.

In response to a question by Councillor Loraine Cox, the Chair listed a number of projects in Great Harwood, which had recently received funding.

Councillors Steven Smithson, Mohammed Younis and Loraine Cox welcomed the report and highlighted the financial support made available for the Persistent Organic Pollutants (POPs) waste service, Civic Theatre, various projects in the townships and Leisure Transformation.  The Chair added that close to £100k of Community Chest funding had recently been earmarked for local community and voluntary groups, although this had been delayed due to the operation of the call-in procedure.

Approval of the report was not considered to be a key decision.

Reasons for Decision

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

This report set out the Council’s Revenue Budget for  ...  view the full minutes text for item 305.

Report attached.

Members considered a report of Councillor Peter Britcliffe, Deputy Leader of the Council and Portfolio Holder for Resources, informing the Cabinet of the proposed Capital Programme for 2024/25 - 2026/27.

Councillor Steven Smithson commented that he was pleased to support the Programme, which included numerous projects, such as the refurbishment of Oswaldtwistle Civic Theatre and Rhyddings Park Play Area, as well as works at Jackhouse Nature Reserve and King George V Playing Fields pavilion and pitches.  Councillors Younis welcomed the overall investment in Hyndburn and thanked those involved in developing the projects.  Councillor Pratt was particularly keen to support the King George V development, which could facilitate a move there by Accrington Amateur Football Club, thereby freeing up their Livingstone Road ground for potential sale to Accrington Stanley FC.

The Chair expressed his delight at the proposed Capital Programme and was pleased that the ambition to reopen the Civic Theatre had received cross-party support at the recent Council meeting.

Approval of the report was not considered to be a key decision.

Reasons for Decision

The report and its main Appendix set out the Council’s Capital Programme 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 had only been possible by the Council obtaining external financial support, as well as the Council’s own effective financial management over recent years, which had allowed it to have the funds necessary to finance these major projects when other funding had become available.

The new additions to the Capital Programme for 2024/25 had reduced to £4.404m, compared to £8.374m in 2023/24.  External funding of £2.543m had been secured towards the cost of these new capital schemes.

The additions to the Programme in 2024/25 would bring the total approved capital programme to £36.104m, including forecast slippage of the unspent Programme from 2023/24 of £31.700m, which could be seen in Appendix 1 of the main report. The forecast slippage from the 2023/24 programme included £10.885m for the Leisure Estate Investment Programme and £17.116m for the Levelling Up Programme, which were projects that were expected to be ongoing for the next 1-2 years.

The Council intended to continue its strong policies of financial management and to look only to borrow what it needed to fund these major investment projects.  The Council would continue to rely on securing external sources of funding, using capital receipts, making revenue contributions to capital projects and would use unspent monies to fund its programme. It would 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 was in accordance with Council policy.

The Revenue implications to finance the Capital Programme continued to be a key element in the affordability issues on the Revenue Budget this year.  The Programme contained a limited amount of risk this year.  The level of risk remained elevated compared to  ...  view the full minutes text for item 306.

Report attached.

The Cabinet considered a report ofCouncillor Mohammed Younis, Portfolio Holder for Levelling Up, which provided an update on recent progress with the LUF funded Accrington Town Square projects and confirmation of the recent success with regards to the Department for Levelling Up, Housing and Communities (DLUHC) Long-Term Plan for Towns (LTPT), High Street Accelerators Pilot Programme (HSAP) and National Lottery Heritage Funding (NLHF) submissions.

Councillor Younis introduced the report and outlined the latest position.  The Market Hall decant was around 90% complete.  Some concerns had been raised about rain water ingress to the cabins and a possible solution was being considered.  Overall, traders were satisfied and some good news stories had emerged.  For example, the pet stall had reported significantly increase trade since moving into the cabin and the bakery shop had reported that it was doing well and would switch from opening 3 days per week to 6 days per week.  Councillor Younis thanked all those who were working to make the project successful.  Some minor issues had been identified and these were currently being addressed.  The cabins would be fully open soon and a celebratory event was due to be held.

Work to remove the pavilions on Peel Street was due to start in the next few weeks and work inside the Market Hall would also commence shortly.  The start of these works would be a major milestone in the transformation of the Market Hall.

A useful meeting had taken place recently about the creation of a dedicated space for the flea-market traders who operated on Thursdays and Sundays.  It was important not to lose this trade.  A solution was close to being identified.

The projects at Burtons Chambers and Market Chambers were also progressing well.  The use of the compulsory purchase order (CPO) powers might ultimately be required, but negotiations were still on-going with a view to reaching an agreement with the relevant freehold and leasdholders.

The Chair reported that he was due to attend a site visit on Broadway tomorrow to view a selection of pop-up stalls, which could be used by the flea-market traders.  The flea-market helped to maintain footfall on Thursdays and Sundays, which benefitted other town centre businesses.

Approval of the report was not considered to be a key decision.

Reasons for Decision

LUF Funded Projects

Cabinet had received regular updates on progress of the Accrington Town Square projects and this report provided a brief update on progress to date.  The Council had created a dedicated Accrington Town Square website where all relevant information about the projects, latest news and documents were available to view.  Key recent outcomes to note were:

• Submission of all planning applications for Burtons Chambers, Market Chambers, the Market Hall / Trader Decant and listed building consent for the Market Hall.  At the time of writing this report, planning permission had been approved for Burtons Chambers and the Market Trader Decant.  The remaining applications were due to be  ...  view the full minutes text for item 307.

Report attached.

Members considered a report of Councillor Peter Britcliffe, Deputy Leader of the Council and Portfolio Holder for Resources, seeking to further the Council’s strategy to improve its housing stock and the regeneration of Hyndburn by adopting new Government provisionson premium rates of Council Tax in the following circumstances:

(i)            for properties that were left vacant for over one year; or

(ii)           for properties classed as second homes.

Councillor Britcliffe outlined the main purpose of the report and highlighted that 250 properties were currently empty, and would be subject to a 200% Council Tax liability in April 2024 if, following implementation of these recommendations, they remain unoccupied.

Councillor Kath Pratt suggested that the impact of the revised Policy should be carefully monitored and that a review of the effects of its implementation should take place after six months.  Members agreed to consider this suggestion within the recommendations.

Approval of the report was not considered to be a key decision.

Reasons for Decision

The national problem of a housing shortage and many existing properties that were empty was well documented.  Hyndburn had historically suffered from a higher than normal percentage of empty properties, many being left vacant for long periods and blighting their neighbourhoods.  The Council had attempted to address the number of empty properties for a considerable time as part of its efforts to regenerate Hyndburn and provide better places to live. The Council had welcomed and had acted upon the Government’s initial introduction of a premium on Council Tax in 2013 for long term empty properties, as a means of encouraging their occupation, together with the incremental changes effective from April 2019.  While the initial Government legislation that had taken effect in 2013, and subsequent legislation in 2019 had helped reduce the number of empty properties, there were still over 800 empty properties that remained in Hyndburn that caused damage to the local housing market and neighbourhoods.  The Council was therefore proposing to introduce the new Government rules fully, to further help reduce the overall number of empty properties.

The Local Government Finance Act 2012 had granted local authorities greater flexibility over certain Council Tax discounts and exemptions from April 2013.  In January 2013, Cabinet had approved the Council’s proposal to implement changes to empty property discounts and changes had been made to the following percentage rates of normal Council Tax liability:

Table 1 – Empty Property Liabilities implemented in 2013

Owners of properties being actively marketed for sale or rent could apply to have the premium rate reduced to 100% of normal Council Tax liability.

Since 2013, the number of properties in the  ...  view the full minutes text for item 308.