Agenda item

Recommendations from the Cabinet held on 3rd February 2016 and 24th February 2016

To consider the recommendations from the meeting of the Cabinet on 3rd February 2016 (attached) relating to:

· Burcot Lane Homelessness Hostel – Future Options

· Medium Term Financial Plan 2016/17 – 2018/19

· New Homes Bonus 2016/17

To consider the recommendations from the meeting of the Cabinet held on 24th February 2016 (to be tabled at the meeting) relating to:

· Medium Term Financial Plan 2016/17 – 2018/19

(The full Cabinet reports are enclosed for information at the back of the Council Agenda Book)

Note: that under the Local Authorities (Standing Orders) (England) (Amendment Regulations 2014, the Council is required to take a named vote when a decision is made on the budget calculation or precept at a budget decision meeting of the Council.

Note: that under Section 106 of the Local Government Finance Act 1992, any Councillor who is 2 or more months in arrears with their Council Tax payments cannot participate in any item at the Council meeting concerning the budget.

Minutes:

Prior to the consideration of the recommendations from the Cabinet, the Chairman announced a short adjournment to enable Members to read and consider the additional information on Council Tax recommendations which had been circulated.

The meeting was therefore adjourned from 6.15pm to 6.30pm.

Burcot Lane Homelessness Hostel – Future Options

The recommendation from the Cabinet was proposed by Councillor C. B. Taylor and seconded by Councillor R. J. Deeming.

In proposing the recommendation Councillor Taylor referred to the background work which had been undertaken to bring forward a number of options in relation to the provision of alternative accommodation to Burcot Lodge. The Overview and Scrutiny Board had also recently considered the matter and had supported the implementation of proposal one.

During the debate some Members suggested that it may be prudent to wait for the outcome of the Short Sharp Review on Potential Homelessness in Bromsgrove, which had recently been established, before making any final decisions on the matter. Councillor Taylor commented that the agreement of proposal one at this stage did not preclude the consideration of proposal two at a later date or of any outcomes of the Short Sharp Review. It was important to progress with the project which had been on going for some time.

It was also suggested that the proposed option may lead to a shortage of available spaces and that evidence suggested there may be a need for more interventions in potential homelessness cases. Councillor Taylor responded that the hostel was under occupied at present and the Strategic Housing Team had developed a way forward. It was suggested that some of the comments could have been raised by Members when the matter was considered by the Cabinet.

It was

RESOLVED that the cost of the alternative option for the provision of temporary accommodation, as set out in proposal one in the report be released from balances.

New Homes Bonus Scheme 2016/17

The recommendation from the Cabinet in relation to a revised New Homes Bonus Community Grants Scheme for 2016/17 was proposed by Councillor G. N. Denaro and seconded by Councillor K. J. May.

As an amendment it was proposed by Councillor L. C. R. Mallett and seconded by Councillor C. J. Bloore that consideration of this matter be deferred until the next meeting of the Council in April, in the light of the unprecedented financial situation facing the Council. It was noted that if deferred , a sum of £23k would remain in the budget for the New Homes Bonus Scheme in 2016/ 2017.

On being put to the vote the Chairman declared the amendment to be carried.

Medium Term Financial Plan 2016/17 – 2018/19

Councillor G. N. Denaro proposed recommendations arising from the Cabinet meetings which had been held on 3rd February and 24th February 2016. The proposal was seconded by Councillor M. A. Sherrey.

In proposing the recommendations Councillor Denaro explained that there had been some amendments to the recommendations from Cabinet on 3rd February due to some transitional funding received from central government for 2016/17 (£118k) and 2017/18 (£114k) which it was proposed to use in order to minimise the amount to be taken from reserves. In addition there was now the opportunity to increase Council Tax on a Band D property by £5.

Councillor Denaro also reported that it had now been confirmed that no Authority would be required to make a payment with regard to negative Rate Support Grant until details of Business Rate Retention had been clarified. Taken together these amendments reduced the anticipated shortfall from £3.215m to £2.63m. There was however uncertainty at present regarding the future arrangements for New Homes Bonus funding.

Councillor Denaro made reference to the proposals to achieve a balanced budget for 2016/17 and to work towards meeting the Government’s efficiency targets over the following 3 years in order to achieve a fixed 4 year settlement. Confirmation had been received that the Government had extended the deadline for these budgets until October 2016. Work on this would continue and the Council’s Strategic Priorities were being reviewed in response to the significant financial pressures facing the Authority.

Councillor Denaro referred to specific actions taken in order to achieve a balanced budget for 2016/17 following receipt of the interim settlement. These had included an immediate review by officers of all budgets and expenditure. Of particular importance was the delivery of all services during the previous year at an underspend of £600k with few complaints. This had been reviewed with all Heads of Service and had resulted in an overall departmental expenditure of 2% below the projected budget for 2015/16 at £11.662m. In addition specified earmarked reserves had been reviewed and had been released as appropriate resulting in an additional £553k.

It was reported that the steps taken had allowed a balanced budget to be achieved for 2016/17 without the use of balances although there was a projection of £500k from balances in 2017/18 and 2018/19. Councillor Denaro stated that services had been maintained with a small increase in Council Tax and the retention of robust reserves and balances. It was acknowledged that difficult decisions would need to be made in the future and Councillor Denaro was proposing to set up a Cross Party Working Group to review the Government’s efficiency requirements.

Councillor L. C. R. Mallett responded to the recommendations and moved the following amendment to the Medium Term Financial Plan which was seconded by Councillor C. J. Bloore.

“Council notes the shortfall in revenue over the 3 years of the financial plan as a result of the devastating settlement from Central Government.

Council calls on the Group Leaders and Member of Parliament, standing shoulder to shoulder, in the interests of the people of Bromsgrove, to meet face to face with the Minister to resolve this funding issue.

Council further calls on the Portfolio Holder and officers to seek to prepare an emergency true zero based budget that addresses the long term funding of local services and advocates for a fundamental restructuring of the management and operational reshaping of the Council this coming year.

To allow this to happen Council resolves to postpone the Budget and Council tax vote and to call an emergency Council in the first week of March to consider a duly revised 3 year Budget”.

In proposing the amendment Councillor Mallett acknowledged the difficulties which the Council faced as a result of the Grant Settlement and expressed the wish to support the efforts to address the issues including the establishment of a Cross Party Group.

Councillor Mallett expressed concern however in respect of the short term approach taken in addressing the problems by setting a balanced budget for next year only. The view was expressed that a zero based budget should have been set for next year in order to achieve more savings and reduce the difficulties in years 2 and 3 and that a more radical approach was required which examined the structure of the Authority and its operations. Whilst Councillor Mallett stated he supported a joint approach to the Minister with a view to achieving an improved financial settlement, he did not support the current budget proposals.

During the debate on the amendment Councillor Denaro stated that the review work on the financial situation he had referred to would carry on throughout the year. In view of the deadlines for Council Tax bills deferring agreement of the budget would not be helpful.

Councillor S. J. Baxter expressed support for the amendment and also referred to the budget put forward by the Independent Alliance Group which addressed some of the issues in a alternative way. A Cross Party Working Group would be able to look creatively at the steps needed for the future. In her view the Budget proposed by the Controlling Group at present did not do that.

As required under the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 a named vote was taken on the amendment.

For the amendment: Councillors S. J. Baxter, C. J. Bloore, M. T. Buxton, S. R. Colella, C. A. Hotham, R. E Jenkins, L. C. R. Mallett, P. M. McDonald, C. M. McDonald, S. R. Peters, S. P. Shannon, M. Thompson and L. J. Turner (13)

Against the amendment: Councillors C. Allen-Jones, R. J. Deeming, G. N. Denaro, R. L. Dent, M. Glass, J. M. L. A. Griffiths, H. J. Jones, R. J. Laight, P. Lammas, K. J. May, M. A. Sherrey, R. D. Smith, C. B. Taylor P. L. Thomas, S. A. Webb and P. J. Whittaker (16)

The Chairman declared the amendment to be lost.

Councillor S. R. Colella then moved a further amendment to the Medium Term Financial Plan in the form of an alternative Budget on behalf of the Independent Alliance Group (IAG), this was seconded by Councillor C. A. Hotham.

In proposing the amendment Councillor Colella acknowledged that the proposed Budget from the IAG was radical, but this was necessary due to the level of cuts the Council was facing.

Councillor Colella referred to a number of options which were available to the Council including:

· the provision of a Sports Hall as part of a Community Leisure Centre in Sanders Park with this being funded by the disposal of the Dolphin Centre site for housing purposes;

· the Council to move back to Burcot Lane site and retention of the Burcot Lane Hostel and the Spadesbourne Suite;

· the sale of the Parkside Building for commercial purposes or housing ;

· alternative ways of supporting the regeneration of the Town Centre through housing initiatives;

· the undertaking of a Community Governance Review to increase local autonomy;

· changing arrangements for consideration of the budget including supplying Councillors with more detail in advance of the process.

During the debate on the amendment the view was expressed by some Members that the Council’s reserves should not be utilised to support expenditure on the new Leisure Centre and the move to Parkside.

In commenting on the amendment some Members expressed the view that it would be difficult to implement some of the proposals and unlikely that the budget would prove to be sufficiently robust.

As required under the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 a named vote was taken on the amendment .

For the amendment: Councillors S. J. Baxter, S. R. Colella, C. A. Hotham, R. E. Jenkins, S. R. Peters and L. J. Turner (6)

Against the amendment: Councillors C. Allen-Jones, C. J. Bloore, M. T Buxton, R. J. Deeming, G. N. Denaro, R. L. Dent, M. Glass, J. M. L. A. Griffiths, H. J. Jones, R. J. Laight, P. Lammas, L. C. R. Mallett, K. J. May, P. M. McDonald, C. M. McDonald, S. P. Shannon, M. A. Sherrey, R. D. Smith, C. B. Taylor, P. L. Thomas, M. Thompson, S. A. Webb and P. J. Whittaker (23)

The Chairman declared the amendment to be lost.

There was then further debate on the substantive motion.

The debate included the following issues:

· the lack of a zero based budget;

· the cost of the existing Senior Management Structure ;

· the cost of employing agency staff;

· the cost of the Transformation Team;

· the level of IT costs;

· the running costs associated with the Parkside building;

· a view that the housing supply figures were imbalanced and there was a subsequent impact upon the grant funding awarded.

Councillor Denaro did not accept that the proposed budget failed to recognise the need to address the financial difficulties faced. The reason for a one year budget was precisely because of the challenges ahead. There was a clear recognition of the need to look at efficiency and performance over all areas of the Council’s services. The challenge was to maintain services for residents whilst seeking efficiencies .

As required under the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 a named vote was taken on the Medium Term Financial Plan 2016/17 – 2018/19.

For the recommendations: Councillors C. Allen-Jones, R. J. Deeming, G. N. Denaro, R. L. Dent, M. Glass, J. M. L. A. Griffiths, H. J. Jones, R. J. Laight, P. Lammas, K. J. May, M. A. Sherrey, R. D. Smith, C. B. Taylor, P. L. Thomas, S. A. Webb and P. J. Whittaker (16)

Against the recommendations: Councillors C. J. Bloore, M. T. Buxton, S. R. Colella, C. A. Hotham, R. E. Jenkins, L. C. R. Mallett, P. M. McDonald, C. M. McDonald, S. R. Peters, S. P. Shannon, M. Thompson and L. J. Turner (12)

RESOLVED:

(1) that the fees and charges for 2016/17 (and garden waste for 2017/18) as detailed in appendix 1 (to the report to Cabinet on 3rd February 2016) be approved;

(2) that the savings and additional income for 2016/17 of £401k as detailed in appendix 3 (to the report to cabinet on 3rd February 2016 ) be approved;

(3) that the unavoidable pressures for 2016/17 of £507k as detailed in appendix 4 (to the report to Cabinet on 3rd February 2016) be approved;

(4) that the Capital bids for 2016/17 of £280k as detailed in appendix 5 (to the report to Cabinet on 3rd February 2016) be approved;

(5) that the payment of Parish Council grant for 2016/17 of £13,800 be approved;

(6) that the release from reserves of £849k in 2016/17 be approved;

(7) that the increase in Council Tax by £5 (2.5%) per Band D equivalent for 2016/17 be approved;

(8) that the Pay Policy (attached as appendix 1 to the report to Cabinet on 24th February 2016) be approved

Independent Remuneration Panel Report

The recommendations of the Cabinet in respect of the report and recommendations of the Independent Remuneration Panel for Worcestershire District Councils were proposed by Councillor M. A. Sherrey and seconded by Councillor G. N. Denaro.

As an amendment it was proposed by Councillor C. A. Hotham and seconded by Councillor S. R. Peters that the recommendations of the Cabinet be approved with the exception of the proposed increase in the multiplier in respect of Portfolio Holders from 1.3 to 1.5. The multiplier would therefore remain at 1.3.

On a requisition under Council procedure 17.5 , the following details of the voting were recorded:

For the amendment: Councillors C. J. Bloore, M. T. Buxton, S. R. Colella, G. N. Denaro, R. L. Dent, M. Glass, J. M. L. A. Griffiths, C. A. Hotham, R. E. Jenkins, H. J. Jones, R. J. Laight, P. Lammas, L. C. R. Mallett, K. J. May, P. M. McDonald, C. M. McDonald, S. R. Peters, M. A. Sherrey, R. D. Smith, C. B. Taylor, P. L. Thomas, M. Thompson, L. J. Turner, S. A. Webb and P. J. Whittaker (25)

Against the amendment: Councillors C. Allen–Jones and R. J. Deeming (2)

The Chairman declared the amendment to be carried. It was therefore

RESOLVED:

(1) that the recommended basic allowance of £4250 be not agreed and the Council continues to pay a basic allowance of £4326;

(2) that the multipliers recommended by the Independent Remuneration Panel for Special Responsibility Allowances be agreed, with the exception of:

· Portfolio Holders allowance to remain at 1.3;

· Deputy Leader’s allowance to remain at 2;

· Chairman of Overview and Scrutiny to remain at 1.3;

· Chairman of Planning Committee to remain at 1.3

(3) that the Independent Remuneration Panel’s recommendations relating to travel, subsistence and dependent carers’ allowances be agreed;

(4) that the Council’s Members’ Allowances Scheme be updated to take account of the decisions at 1, 2 and 3 above; and

(5) that the Independent Remuneration panel’s recommendation relating to allowances for Parish Councils be noted.

(Councillors S. R. Peters and K. J. May each declared an other disclosable interest as the Chairman of Hagley Parish Council and Belbroughton Parish Council respectively.)

Supporting documents: