Agenda and minutes

Councillor Munsif Dad BEM JP made the following announcements:

1)         Lancashire Area SEND Partnership – Ofsted / CQC Inspection

Councillor Dad declared a personal interest in the following matter as an elected member of Lancashire County Council.

He reported that Ofsted and the Care Quality Commission (CQC) had carried out a five-day inspection of the Lancashire Local Area SEND Partnership in December 2024.  The inspectors’ report, published today, was damning.  It highlighted widespread failings leading to significant concerns about the experiences of and outcomes for children and young people with special educational needs and disabilities (SEND).  This amounted to families and children being let down over a period of years of neglect.

Families of children with SEND depended on the availability of appropriate places and facilities, but the system appeared not to be working.  Councillor Dad expressed the view that the report had confirmed what Hyndburn’s controlling group had believed for some time, namely that:

• there were insufficient places available;
• support was patchy and ineffective;
• children were being failed.

The families of SEND children deserved better.  Accordingly, the Leader of the Council would write to County Councillor Phillippa Williamson, the Leader of Lancashire County Council, to ask her to take charge of the situation.

Councillor Melissa Fisher declared a personal interest in this matter as an employee of Lancashire County Council.  She raised the matter of Hilltop Lodge Children with Different Abilities (CWD) Residential Service, on the site of the former North Cliffe Special School in Great Harwood.  This facility was believed to be under-used by Hyndburn families, whereas the adjacent Meadowfold Hyndburn Ribble Valley Short Break Service for adults was well used.  The children’s facility had cost millions of pounds to build, but was not considered to be fit for purpose.  Councillor Fisher requested that the Leader add her concerns about this facility to his letter to the County Council

Councillor Aziz declared a personal interest in this matter as the Shadow Portfolio Holder for Education and Skills at Lancashire County Council.

2)         Accrington and Rossendale College – Ofsted Report

Accrington and Rossendale College, as part of the Nelson and Colne College Group, had again been graded ‘Outstanding’, following an Ofsted inspection in December 2024.  The College had been outstanding for at least 20 years.  The Leader offered his congratulations to the Group’s principal, Lisa O’Loughlin, and tutors at the College.  The Council would continue to work in partnership with the College, as appropriate.

Apologies for absence were submitted on behalf of Councillor Scott Brerton and in respect of standing invitees from the Opposition, Councillors Zak Khan and Kath Pratt.

There were no further reported declarations of interest or dispensations granted.

To approve the Minutes of the meeting of Cabinet held on 22^nd January 2025.

The minutes of the meeting of the Cabinet held on 2^nd January 2025 were submitted for approval as a correct record.

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

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

There were no verbal reports from Cabinet members on this occasion.

At its meeting on 22^nd January 2025, the Cabinet agreed to establish a Working Group to advise upon the development of an Action Plan to address the recommendations of the Corporate Peer Challenge.  The terms of reference, also agreed at that meeting, provide for the composition of the Working Group, as follows:-

·         4 councillors from the Labour Party:

·         2 councillors from other political parties.

The following nominations have been received and their appointments are recommended for approval:

At its meeting on 22^nd January 2025, the Cabinet had agreed to establish a Working Group to advise upon the development of an Action Plan to address the recommendations of the LGA Corporate Peer Challenge.  The terms of reference, also agreed at that meeting, provided for the composition of the Working Group, as follows:-

• 4 councillors from the Labour Party:
• 2 councillors from other political parties.

The following nominations had been received and their appointments were recommended for approval:

Resolved                                    -    That the above nominations to the Corporate Peer Challenge Action Plan Working Group be approved.

Report attached.

Members considered a report ofCouncillor Vanessa Alexander, Portfolio Holder for Resources and Council Operations, presenting an amendment to the Retail, Hospitality and Leisure Non Domestic Rate Relief Scheme for the period 1^st April 2025 to 31^st March 2026 providing eligible businesses with a 40% rate relief on their business rates liability for this period.

Councillor Alexander provided a brief introduction to the report.

Councillor Cassidy enquired about the level of discount under the existing Scheme (2024-2025).  Councillor Alexander responded that the current rate of relief was 75%.

Approval of the report was not deemed a key decision.

Reasons for Decision

At the Autumn Budget on 30 October 2024, the Chancellor had announced the extension of the business rates relief scheme for retail, hospitality and leisure properties, retaining the existing eligibility criteria but reducing the level of relief to 40%, up to a cap of £110,000 per business.  This would support the businesses that made the nation’s high streets and town centres a success and help them evolve and adapt to changing customer demands.

Government had supported billing authorities and their preceptors by funding, in full, the discretionary reliefs awarded under these measures using grants delivered under Section 31 of the Local Government Act 2003.

The administration of the discount scheme within this report was subject to restrictions laid out in Section 47 of the Local Government Finance Act 1988 which stipulated that any variation or termination of a discount scheme under Section 47 that would result in an increased financial liability for the ratepayer must be done at the end of a financial year and with 12 months’ notice.  By implementing this new scheme from 1^st April 2025, the Council’s administration of business rates relief remained within its discretionary powers.

Retail, Hospitality and Leisure Relief Scheme 2025/2026

Since 2019/20 the Government had provided a Business Rates Retail Discount for retail properties, which for 2020/21 it had expanded to include the leisure and hospitality sectors.  On 30^th October 2024, the Government had confirmed an extension of the Retail, Hospitality and Leisure Relief to apply in 2025/2026, but reducing the level of relief to 40%.

For 2025/2026, the Retail, Hospitality and Leisure Relief would apply after mandatory reliefs and other discretionary reliefs funded by grants made under section 31 of the Local Government Act 2003 had been applied.  Other locally applied discounts under section 47 of the Local Government Finance Act 1988 would have to be applied after the Retail, Hospitality and Leisure relief.

Retail, Hospitality and Leisure Relief awards were made under section 47 of the Local Government Finance Act 1988 as amended.

For the 2025/2026 scheme, the Council had identified approximately 200 businesses that were considered to meet the relevant eligibility criteria from 1^st April 2024 to 31th March 2025 with an estimated total of £525,000 in business rates relief to be awarded.  As a pro-active measure, and in line with Ministry of Housing, Communities and Local Government (MHCLG) guidance, the Council  ...  view the full minutes text for item 326.

Report attached.

The Cabinet considered a report of Councillor Noordad Aziz, Deputy Leader and Portfolio Holder for Transformation, Education and Skills, and Councillor Vanessa Alexander, Portfolio Holder for Resources and Council Operations, regarding the 3-year projections of income and expenditure for the Council ahead of formulating its 2025/28 Revenue and Capital Budgets.

Councillor Aziz gave a brief introduction to the report.

Approval of the report was not deemed a key decision.

Reasons for Decision

The Council required an update on its medium-term financial outlook ahead of setting the Budget for 2025/26 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 focus on continuing to deliver its major capital projects which had included the Levelling Up / Town Centre regeneration, its Leisure transformation through the construction of the new Leisure centre at the Wilson playing fields site and securing almost £30m in funding to facilitate the development of over 1,800 new homes at Huncoat.  These activities had been carried out along-side of 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 2025/26 based on the 2024/25 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 2025/26.  To achieve a balanced Budget, the Council would need to generate £163,900 of internal savings during the year.  Overall expenditure would need to be contained at around £17.314m in 2025/26 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 consequence of both national and global issues.  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 Medium Term Financial Strategy (MTFS).

With the change in Government in May 2024, the new Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government had stated that there was a vision for change, with local government at its very heart, although there were no illusions  ...  view the full minutes text for item 327.

Report attached.

The Cabinet considered a report of Councillor Noordad Aziz, Deputy Leader and Portfolio Holder for Transformation, Education and Skills, and Councillor Vanessa Alexander, Portfolio Holder for Resources and Council Operations, setting out the Council’s policy and objectives with respect to treasury management, to explain how it would achieve its objectives and manage its activities; and to agree an investment strategy for 2025/26.

Councillor Aziz provided a brief introduction to the report.

The Leader of the Council welcomed Martin Dyson, Executive Director – Resources, to his first Cabinet meeting following his illness and thanked him and his Finance Team, particularly Jody Spencer-Anforth, Head of Finance, for their dedicated work in producing the various Budget papers.

Approval of the report was not deemed 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:

“The management of the Council’s investment and cash flows, its banking, money market and capital market transactions.

The effective control of the risks associated with these activities.

And the pursuit of optimum performance consistent with those risks.”

The Council was required to operate a balanced budget which meant that cash raised during the year would meet cash expenditure.  Part of treasury management was to ensure the cash flow was properly planned with cash available when needed.  Surplus monies were invested in line with the Council’s low risk appetite, providing adequate liquidity initially before considering investment return.

The second main function of treasury management was funding the Council’s capital plans.  The plans gave a guide to the future borrowing need of the Council.  The management of this longer-term cash flow might involve arranging long or short-term loans or using longer

term cash flow surpluses.  Occasionally, outstanding debt might be restructured to reduce Council risk or meet cost objectives.

The report had been prepared in line with the Treasury Management Code and Guidance (2021) written by The Chartered Institute of Public Finance & Accountancy (CIPFA).  In the case of local authorities in England and Wales, the Code was significant under the provisions of the Local Government Act 2003.  This required local authorities ‘to have regard:

(a)     to such guidance as the Secretary of State may issue, and

(b)     to such other guidance as the Secretary of State may by regulations specify’.

The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 in paragraph 24 required local authorities to have regard to this guidance.  Acceptance of this report fulfilled those obligations.

CIPFA had published revised codes on 20^th December 2021 and the Council had now adopted the liability benchmark treasury indicator to support the financing risk management of the capital financing requirement.

Appendix 1 of the covering report comprised the Treasury Management Strategy 2025/26-2027/28 document, which included the following detailed sections:

• Background;
• Prudential Code and Prudential Indicators;
• Capital Expenditure and Capital Financing Requirement;
• International Financial Reporting Standard (IFRS) 16 - Leasing;
• Minimum Revenue Provision;
• Affordability  ...  view the full minutes text for item 328.

Report attached.

The Cabinet considered a report of Councillor Noordad Aziz, Deputy Leader and Portfolio Holder for Transformation, Education and Skills, and Councillor Vanessa Alexander, Portfolio Holder for Resources and Council Operations, introducing the proposals contained in the Revenue Budget Report 2025-2026 provided at Appendix A of that report.  The report also provided an overview of key issues arising from the Medium-Term Financial Strategy.

The decision to set the Budget was a core decision of the Council.  The role of the Cabinet was to recommend a proposed Budget to Council.

Councillor Alexander provided a brief introduction to the report.

Councillors Fisher, Aziz and Whitehead thanked Councillor Alexander for her work on the Revenue Budget and again thanked to the Finance Team for their efforts.  Councillor Aziz also highlighted the steps taken by the controlling group to address significant pressures, including community leisure costs and waste disposal/transfer issues.

Approval of the report was not deemed a key decision.

Reasons for Decision

The report set out the Council’s Revenue Budget for 2025/26.  This would require net expenditure of £17,313,300.

Under these proposals, Council Tax for Hyndburn residents would incur a rise in charge for Hyndburn Council provided services and the charge for a Band D property would increase from £268.43 in 2024/2025 to £276.46.

A number of national and global issues had undoubtedly had an impact on the Council’s budgets and this along with the impact of higher inflation and forecast pay settlements had contributed to the Council raising its element of the Council Tax by the maximum 2.99%, an increase of £8.03 annually on a Band D property.

Lancashire County Council, the Police & Crime Commissioner and the Lancashire Combined Fire Authority had not yet formally taken their decisions on Council Tax Levels for 2025/26.  It was expected that the County Council would raise its Council Tax for each household by a general increase of 2.99% and a 2.0% increase to assist with meeting the cost of Adult Social Care which equated to a £82.50 (4.99%) increase overall.  The Police Commissioner had confirmed that they would increase a Band D Property by £14.00 (5.31%) and the Lancashire Combined Fire Authority had proposed a £4.00 (5.90%) increase.

Altham Parish Council had set a separate precept for its activities.  This year the Parish Council had decided to increase its precept by 2.66% and the Band D charge for Altham Parish Council would therefore increase from £43.18 for 2024/25 to £44.33 for 2025/26.  The Parish Council would precept the Collection Fund for £14,185.60 for 2025/26.  Details of the proposed position on other Bandings for properties in Altham were shown in Appendix 6.

In setting the Budget for 2025/26 the Council faced continued volatility around some of the most significant items within its Budget.  Major reforms of local government finance had transferred the risk of business rate revenues and Council Tax benefits to the Council.  The certainty on which the Council could budget and manage its finances had therefore decreased since 2013 and it would be important going  ...  view the full minutes text for item 329.

Report attached.

The Cabinet considered a report of Councillor Noordad Aziz, Deputy Leader and Portfolio Holder for Transformation, Education and Skills, and Councillor Vanessa Alexander, Portfolio Holder for Resources and Council Operations, regarding the proposed capital programme for 2025/26 – 2027/28.

Councillor Alexander gave a short verbal introduction to the report.

Approval of the report was not deemed a key decision.

Reasons for Decision

The report set out the Council’s Capital Programme for 2025/26, including forecast slippage on schemes from 2024/25 and the additions of new schemes to the Council’s Capital Programme for 2025/26.

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 £2.476m, compared to £4.404m in 2024/25.  External funding of £1.538m had been confirmed towards the cost of these new capital schemes (Disabled Facilities Grant and UK Shared Prosperity Funding) with a further £0.052m funding to be secured.

The additions to the programme in 2025/26 would bring the total approved capital programme to £26.054m, including forecast slippage of the unspent programme from 2024/25 of £23.578m, which could be seen in Appendix 1 of the report.  The forecast slippage from the 2024/25 programme included £4.555m for the Leisure Estate Investment Programme and £16.789m for the Levelling Up Programme.  The capital budgets for the Levelling Up Programme were based on the latest forecast of costs however as these were not tendered figures, they were still subject to change and should there be any changes to the current forecast, these would be reported during the year.

It was important to note that the funding of the 2025/26 capital programme was based on the realisation of additional capital receipts during the year.  The programme assumed £3.092m of expenditure would be funded from capital receipts, of which £0.595m related to the King George V Pavilion and pitches scheme which was contingent on funding from the disposal of land.  £1.147m in available receipts was forecast to be brought forward at the beginning of the year, leaving a target of £1.350m of new receipts which were required, which if not realised would need to be replaced by funding from earmarked reserves.

The capital programme currently excluded the proposed Huncoat Garden Village scheme which would be wholly funded from the Home England Brownfield Infrastructure and Land Fund grant of £29.898m.  When the funding agreement was approved, the capital and revenue costs of the scheme and associated funding would be submitted for inclusion in the Council’s revenue and capital budgets.

The expected new schemes for 2026/27 and 2027/28 (totalling £2.4m) were detailed in Appendix 3 of the report.  This was for information only as funding would need to be identified for these schemes before they were put forward for approval into the programme in  ...  view the full minutes text for item 330.