Agenda item

Executive Committee

Minutes:

The Council received the minutes and considered the recommendations from the meeting of the Executive Committee held on 6th February 2018 as well as the recommendations that had been agreed at the meeting of the Executive Committee held on 19th February immediately before full Council.

 

6th February 2018

 

Independent Remuneration Panel Report and Recommendations for 2018/19

 

Members noted that the proposals that had been received from the Independent Remuneration Panel (IRP) would require an additional £68,500 if approved.  There was general consensus that, given the funding difficulties for local government, such an increase would not be appropriate at this time.

 

RESOLVED that

 

having regard to the report and recommendations of the Independent Remuneration Panel (IRP):

 

1)        the Basic Allowance for 2018/19 not be increased and this continue at the current level set for 2017/18, as detailed in Appendix 1 to the IRP’s report;

 

2)        the Special Responsibility Allowances remain at the current levels set for 2017/18, as detailed in Appendix 1 to the IRP’s report;

 

3)        travel allowances for 2018-19 continue to be paid in accordance with the HMRC mileage allowance;

 

4)        subsistence allowances for 2018-19 remain unchanged;

 

5)        the Dependent Carer’s Allowance remains unchanged; and

 

6)        the Parish Council in the Borough, if travel and subsistence is paid, is paid in accordance with the rates paid by Redditch Borough Council and in accordance with the relevant Regulations.

 

HRA Initial Budget 2018/19 – 2020/21

 

Members considered the content of the HRA Initial Budget 2018/19 – 2020/21 and noted that in line with Government requirements there had been a one per cent decrease on the rents paid by tenants for Council properties over a four year period. This decrease on the rents had financial implications for the Council.  In addition on the one hand it was suggested the rental decrease would help some of the most vulnerable tenants. On the other hand it was noted that this decrease would mainly be reflected in changes to housing benefit entitlements for many residents.

 

Members also noted that the Council was investing in new properties through the Housing Growth Programme and the Mortgage Buy Back Scheme.  The outcomes from these would have implications for the Council’s HRA in the long-term.

 

RESOLVED that

 

1)        the draft 2018/2019 Budget for the Housing Revenue Account attached to the report at Appendix A be approved;

 

2)        the budget projection for 2018/19 incorporating the 1% rent reduction be approved;

 

3)        the actual average rent decrease for 2018/2019 be 1%;

 

4)        that a capital budget of £150k be approved for a stock condition survey to be carried out

 

5)        that £0.876k be transferred from the general reserve in 2018/19 to fund the future HRA revenue budgets

 

6)        that £5.1m be transferred from the Major Repairs Reserve to fund the HRA capital programme.

 

Minutes

 

RESOLVED that

 

the minutes of the meeting of the Executive Committee held on 6th February 2018 be received and all recommendations adopted.

 

19th February 2018

 

Medium Term Financial Plan for 2018/19 to 2021/22

 

At the start of this item Councillor Juliet Brunner proposed an amendment to the Medium Term Financial Plan 2018/19 to 2021/22.  This amendment was seconded by Councillor Brandon Clayton.  The amendment contained the following wording:

 

“The proposed budget for the period 2018/19 – 2021/22 is only balanced for one year. If no further savings were made the remaining 3 years would result in taking £1.3m from balances. This would be unsustainable as it would leave the Council balances well below the minimum recommended level of £750k.

The following amendment (made up of 2 elements) would enable the Council to have a financially sustainable budget over the 4 years.

 

Move the Leisure services to an external trust.  This would generate approximately £800k savings per year savings which is over £350k more that setting up the Council owned company whilst maintaining the Council services. Over the 4 years this would deliver a net of £860k more than the current proposal.

 

Increase the resource in the place teams. This may cost an additional £150k per annum but would include enhancing the service and in particular the tree teams. Over the financial plan period this would increase costs by a total of £450k.

 

This amendment to budget would realise a net saving of over £400k which would result in less being taken from balances. The total drawn down from balances would be £900k which would leave them above the minimum level recommended.”

 

Following presentation of the proposed amendment a number of points were discussed in detail:

 

·                The length of time required to achieve £860k savings as a result of an external trust managing the Council’s Leisure and Cultural Services.  Members were advised that this would be a net saving over a four year period.

·                The role of a charitable trust in delivering the Council’s Leisure and Cultural Services.

·                The feedback that had been received from residents in surveys that had been completed during the consultation process in respect of the options appraisal for Leisure and Cultural Services.

·                The continuing role of the Council as the owner of any leisure assets should management of Leisure and Cultural Services be outsourced to an external trust.

·                The work of the Leisure Provision Short Sharp Scrutiny Review group in 2015 to review future arrangements for the delivery of Leisure and Cultural Services and the conclusions that this group had reached.

·                The leisure centres that had been visited in other parts of the country during the scrutiny review and the additional premises that had been visited by the Portfolio Holder for Leisure and Tourism with relevant Officers since then.

·                The potential for the Council to achieve savings from renegotiating contracts with software providers such as Microsoft.

·                The plans for the redevelopment of Redditch town centre and the extent to which the Council was likely to secure £5 million funding from the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) to help fund this project.

 

On being put to the vote the amendment was defeated with 12 Members voting in favour of the amendment and 16 against.

 

Members subsequently discussed the proposals from the Executive Committee on 19th February 2018 in respect of the Medium Term Financial Plan 2018/19 to 2021/22.  These were proposed by Councillor Bill Hartnett and seconded by Councillor Greg Chance.

 

In proposing the item Councillor Hartnett explained that Council Tax would be raised by 2.99 per cent, which equated to £6.79 extra for a Band D property for the year.  Council Tax had been increased to help the Council balance the budget.  The level of financial assistance available to Councils in the Revenue Support Grant had reduced in recent years and would be in a negative position from 2019/20 onwards.  Other local authorities in the country had also been affected by grant reductions and a number were choosing to increase Council Tax in response.  There were plans to regenerate the town centre and to enhance economic growth in Redditch. The Council would continue to work with the GBSLEP and WMCA to work in partnership on any opportunities available to the region. 

 

A lengthy debate on the budget proposals ensued, during which opposing views were expressed by Members. Some were supportive of the proposals detailed in the report.  Others expressed concerns about the plans and the extent to which this would enable the Council to have sustainable finances in the long-term.  Thanks were extended by Members to officers for their hard work on the budget.

 

At the end of the debate in accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the recommendations on the budget calculation were the subject of the following named vote:

 

Members voting FOR the resolutions below:

 

Councillors Joe Baker, Natalie Brookes, Debbie Chance, Greg Chance, John Fisher, Andrew Fry, Bill Hartnett, Pattie Hill, Wanda King, Mark Shurmer, Rachael Smith, Yvonne Smith, Paul Swansborough, Jennifer Wheeler, Pat Witherspoon and Nina Wood-Ford.

 

Members voting AGAINST the resolutions below:

 

Councillors Tom Baker-Price, Roger Bennett, Juliet Brunner, David Bush, Michael Chalk, Anita Clayton, Brandon Clayton, Matthew Dormer, Jane Potter, Gareth Prosser, Antonia Pulsford and David Thain.

 

RESOLVED that full Council

 

1)        Approve the additional income / efficiencies as attached at Appendix 1:

                                                2018/19 £708k

                                                2019/20 £18k

                                               

2)        Approve the unavoidable pressures as attached at Appendix 2:

                                                2018/19 £869k

                                                                                                                                   

3)        Approve the Revenue bids as attached at Appendix 3:

                                                2018/19 £10k

                                               

4)        Approve the Capital Programme bids as attached at Appendix 4:

                                                2018/19 £676k

                                                2019/20 £560k

                                                2020/21 £1.257m

                                                2021/22 £2.772m    

                                   

5)        Approve the return / release from balances of :

                                                2018/19 £85k (release from balances)

                                               

6)        Approve the Increase of Council Tax by 2.99% per Band D equivalent for 2018/19

 

Council Tax Resolutions

 

Further to consideration of the Medium Term Financial Plan 2018/19 to 2021/22 Members also considered the Council Tax Resolutions.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the recommendations on the Council Tax Resolutions were the subject of the following named vote.

 

Members voting FOR the resolutions below:

 

Councillors Joe Baker, Natalie Brookes, Debbie Chance, Greg Chance, John Fisher, Andrew Fry, Bill Hartnett, Pattie Hill, Wanda King, Mark Shurmer, Rachael Smith, Yvonne Smith, Paul Swansborough, Jennifer Wheeler, Pat Witherspoon and Nina Wood-Ford.

 

Members voting AGAINST the resolutions below:

 

Councillors Tom Baker-Price, Roger Bennett, Juliet Brunner, David Bush, Michael Chalk, Anita Clayton, Brandon Clayton, Matthew Dormer, Jane Potter, Gareth Prosser, Antonia Pulsford and David Thain.

 

RESOLVED that

 

the recommendations, as set out in Appendix 5 to the report and as appended to these minutes, setting a Council Tax for 2018/19 of £234.00 for a Band D unparished property, be approved.

 

Overview and Scrutiny Recommendation

 

There was general consensus that the recommendation from the Overview and Scrutiny Committee in respect of the future presentation of the Medium Term Financial Plan reports should be supported.

 

RESOLVED that

 

the format of Medium Term Financial Plans be amended in future years to reflect cumulative savings and pressures over the four year period.

 

The Pay Policy Statement

 

RESOLVED that

 

the Pay Policy as detailed in Appendix 1 to the report be approved.

Supporting documents: