Agenda and minutes

An apology for absence was received on behalf of Councillor Yvonne Smith.

To invite Councillors to declare any Disclosable Pecuniary Interests or Other Disclosable Interests they may have in items on the agenda, and to confirm the nature of those interests.

Councillor Juliet Brunner declared an Other Disclosable Interest in respect of Agenda Item 6 – Medium Term Financial Plan, as detailed at Minute 87 below.

Work Programme

The following reports which were due to be considered, or possibly considered, at the meeting had been deferred to a later date:

·       Council Procurement Rules;

·       Financial Regulations;

·       Engagement Strategy; and

·       Housing Business Case.

To confirm as a correct record the minutes of the meeting of the Executive Committee held on 17^th January 2017.

(Minutes attached)

RESOLVED that

the minutes of the meeting of the Executive Committee held on 17th January 2017 be agreed as a correct record and signed by the Chair.

To consider implementing a charging structure for users of the Shopmobility service and to consider the options for the delivery of the service to ensure a sustainable service for the future

The Committee considered a report on proposals to implement a charging structure for users of the Shopmobility service and options for the delivery of the service to ensure a sustainable service for the future. 

Members were advised that the report and its recommendations were being presented in response to the Overview and Scrutiny Budget Working Group’s report and recommendations that had been considered by the Executive Committee in December 2016.

Officers highlighted the average number of users, current costs associated with providing the service, the results of a survey of customers over a period time from September to November 2016 and proposed charges to secure a sustainable service for the future.  Members were informed that the outcomes of the survey had indicated that the majority of users would be prepared to pay a fee as detailed at 3.12 in the report.  Members also noted research carried out on charges by other Shopmobility providers showed that 75% of all schemes in the UK charged their customers. 

Officers highlighted the various charges being proposed for consideration as detailed at 3.14 in the report, together with estimated revenue income of £55k based on a current usage of 15,000 visits and 75% of the current registered users.  Members were also advised on the potential for an initial drop in visitor numbers that could potentially impact on the estimated revenue.  Members were informed that, given the combined spends from customer car parking and shopping in the region of £250k, Officers were proposing to approach the Kingfisher Shopping Centre and the Town Centre Partnership to explore the potential for additional financial contributions towards the service.

Members expressed their disappointment that ongoing budget cuts had resulted in proposals to charge for a valued and beneficial discretionary service. It was recognised, however, that whilst income generated from the charges would be of benefit, the service would still run at a loss.  

Concerns were expressed by a Member that the proposals did not go far enough to assist vulnerable residents.  A proposal to amend Recommendation 2.1 to include an additional concessionary rate of £1 for individuals in receipt of Pension Credit was moved and seconded. 

Following a brief discussion on the proposal, and the matter being taken to the vote, the proposed amendment to Recommendation 2.1 was not supported.

Clarification was provided further to a query about the involvement of the Older Peoples Forum and Disability Action Redditch (DAR) had been consulted on the proposed charges.  Members were informed that the matter had been raised at the Older Peoples Forum where no objections to the suggestion of charges had been raised.  It was noted that, whilst DAR had not been directly involved, members of the Older Peoples Forum attended DAR meetings.  Clarification was also provided relating to the costs of repairs and maintenance of the equipment which, it was noted, had been built into budget projections. A Member commented that Merry Hill used visual screens for promoting businesses and services in the Centre, it being suggested the matter  ...  view the full minutes text for item 86.

To consider an update on the Medium Term Financial Plan.

Members considered a report which set out Officer recommendations for the General Fund revenue and Capital budget for 2017/18 to 2020/21. 

Officers provided additional explanations in relation to the financial implications of the budget in terms of the considerable pressures facing the Council over the coming 4 years due to reductions in Government funding.  Particular pressures were highlighted in terms of: reductions in the New Homes Bonus Grant and its impact; the impact of Negative Revenue Support Grant, the Localisation of the Business Rates Scheme; and the transfer from Housing Benefit to Universal Credit. 

Members were informed that, further to the provisional Settlement, announced in December, Officers had been advised that the final Settlement was not due to be discussed in Parliament until the 20th February, the day the Council was due to set its Council Tax.  It was noted that the Council Tax would, therefore, be set with estimates rather than final figures.  The ability to increase Council Tax by 2% or £5, whichever was the greater, without triggering a referendum was also highlighted with Officers advising the increase of 2% or £5 had been built into projections.  The formula grant provisional settlement, which represented a 60% decrease in comparison to the 2016/17 grant was also highlighted.  Members were further advised that the projected repayment of £331k to the Government had been built into both the 2019/20 and 2020/21 projections as Officers had projected the repayment would continue into 2020/21.  

Officers advised that clarity was still awaited from central Government on Business Rate Localisation and highlighted the £2.06m government assessment baseline for business rates in 2017/18.  It was noted that if there were to be business rate growth above the baseline, the Council would retain a proportion of the funding.    With some growth expected, Officers had built in an estimated income of £50k.   Further clarification was provided in relation to the New Homes Bonus (NHB) figures, as set out at 3.81 to 3.84 in the report, in relation to the reduction in NHB payments from six to four years and an unforeseen levy to be imposed which would result a loss of NHB funding for the first 126 additional homes built each year.

Proposals for increasing Band D Council Tax payments by £5 were highlighted as was the extension of the Capital Programme to a four year rolling plan.  Members were further updated in relation to the Efficiency Plan, approved in October 2016, with Officers advising that budgets included the delivery of the savings and income identified in the Plan for 2017/18.  It was noted, however, that moving forward changes to funding and service delivery from 2018/19 may require changes in the Efficiency Plan.

In addition to the unavoidable pressures previously identified and highlighted, Officers also reported on two revenue bids that had been proposed.  Members were informed that a report on the procurement process for a Leisure operator would be brought to Committee at the end of the Summer assuming an external procurement approach was taken.  Officers also  ...  view the full minutes text for item 87.

To receive the minutes of the meeting of the Overview and Scrutiny Committee held on 10^th January 2017.

There are no recommendations to consider.

(Minutes attached)

The Committee received the minutes of the meeting of the Overview and Scrutiny Committee held on 10th January 2017.

Members were informed that there were no recommendations to consider. Further to a Member’s query, it was clarified that the Recommendation relating to Minute 59 (Housing Revenue Account 2017/18 – Pre-Scrutiny) had been discussed by the Executive Committee at its meeting on 17th January 2017.  It was further clarified that the recommendation relating to Minute 60 (Medium Term Financial Plan Update Report – Pre-Scrutiny) was for the Constitutional Review Working Party to consider.  

RESOLVED that

the minutes of the meeting of the Overview and Scrutiny Committee held on 10th January 2017 be received and noted.

There were no outstanding referrals to consider.

Members received an update report on the work of the Executive Committee’s Advisory Panels.

Members noted the cancelled Planning Advisory Panel for earlier that evening and were advised that the next scheduled meeting was scheduled for the 4th April 2017. 

In response to a query as to whether a date had been agreed for the Constitutional Review Working Party to meet, it was agreed the matter be progressed.

RESOLVED that

the report be noted.