Agenda item

To consider the following referrals from Cabinet:

24^th January 2023

7.1 CA/08/23   COMMITTEE TIMETABLE

7.2 CA/09/23   TREASURY MANAGEMENT

14^th February 2023

7.3 CA/18/23   QUARTER 3 FINANCIAL MONITORING REPORT 2022-23

7.4 CA/20/23   BUDGET REPORT

7.5 CA/25/23   RELEASE OF COMMUNITY INFRASTRUCTURE LEVY CORE FUNDS

PART 2

7.6 CA/27/23   LEADERSHIP TEAM (TIER 2) AND CORPORATE SUPPORT RESTRUCTURE

Cllr Williams referred to 7.1 CA0823, Committee Timetable. This was seconded and agreed.

Cllr Williams referred to 7.2 CA0923, Treasury Management. This was seconded and agreed.

Cllr Williams referred to 7.3 CA1823, Q3 Financial Monitoring Report. This was seconded and agreed.

Cllr Williams referred to 7.4 CA2023, Budget Report. Cllr Elliot commented that when he recommended the budget last year, the country was unknowingly entering a period of significant geopolitical and economic uncertainty. A year on, the Council continues to have many challenges, though is in a much improved position with services back in full operation and the local economy able to fully trade. Economic and financial challenges previously bought about by Covid were significant, though the Council took a proactive and structured response with the creation of the Economic Recovery Reserve to support services, and secured additional funding support. This has meant that the 2023 budget shows reserves increasing and a medium-term strategy to return to pre-Covid reserve levels. DBC has played a key role in the Covid response and Cllr Elliot noted his pride in the Council, whilst continuing to provide its day-to-day services, for being a beacon of stability amidst financial uncertainty.

Looking at support for business, Cllr Elliot stated that the Council has implemented the post-Covid business rates relief schemes and business grant schemes on behalf of central government. Schemes that would ordinarily be designed over a number of months or years have instead been rolled out within weeks. During 2022-23, £7.8m has been awarded in rates relief to over 850 local businesses. Cllr Elliot noted Council staff, particularly those within the Revenue and Benefits team and Economic Development team, and their ability to stay on top of constantly evolving government guidance. This has been helped by the development of the Economic Recovery Board and bringing together of major businesses, stakeholders and the Council to drive forward key requirements to support business growth. The Council has worked closely with its commercial tenants to ensure it does all it can to support them through the pandemic, resulting in occupancy levels remaining high at around 95%. The Council will continue to work closely with public and private sector partners over the coming months to ensure as much as possible is done to help the local economy during a challenging environment. Over the last 10 years, the Council has saved over £8m whilst also protecting and improving frontline services that are provided to residents.

Cllr Elliot advised that the budget outlines plans to achieve a further £2m through efficiencies and income generation in 2023-24. The medium-term future of local authority finance will remain uncertain until the end of the current parliament, when it is expected that the next government will undertake a local government finance review. The Council has proposed a budget with a strong focus on sustainability and continuing to deliver its corporate priorities into the medium term. Initiatives of over £900,000 have been identified to address medium-term financial strategy saving targets up to 2027. Investment continues in the borough, and despite financial challenges, the Council is in a position to propose a highly ambitious capital investment programme in excess of £330m over the next 5 years to further enhance the services provided to residents. Some areas identified for capital investment include £120m in existing housing stock, £146m in the housing new-build programme, £41m into various ventures, including in leisure services and facilities in neighbourhood areas, £4m into supporting the local community sector to develop community services, and £8.7m into the Council's vehicle fleet for greener vehicles to support the delivery of frontline services.

Looking at council tax, Cllr Elliot noted that the Council is proposing to increase council tax by 2.9% for 2023-24, or £6.27 per annum for a Band D property, equating to 12p per week. Central government is likely to consider each council's ability to raise tax when deciding how much funding to provide in future, and the government is likely to reduce future funding by the amount it expects the council to raise through increasing council tax. Cllr Elliot stated that proposing this increase means that they have done all they can to protect Dacorum's overall funding position for future years.

On housing, Cllr Elliot stated that the Council is proposing an increase in housing rents of 7%. The new government policy cap is over 4% lower than the previous CPI +1% option. Rent increases are below current inflationary levels following historic rent reductions, and the average rent for a council property next year will be £118.62 per week. Cllr Elliot stated that, despite recent enforced rent reductions and below inflation rent proposals for 2023-24, the Council has continued to make housing delivery one of its key priorities and the Council recently completed its 356th new home. The Council has a further 153 new build homes on site at present with a further 145 in pre-planning stages. The Council is also investing in the infrastructure that will enable it to deliver its housing obligations to the most vulnerable in the borough in the best way possible. The Council has been awarded several Homes England grants and has achieved match funding grants of £9m to support the delivery of 101 new homes. In 2022, the Council completed the delivery of its first 8 purpose-built accommodation units to provide additional support for the homeless or those at risk of homelessness.

Cllr Elliot commented that the Council faces significant financial challenges as it plays it role in supporting residents and businesses in a challenging economic environment, though the Council can enter the period feeling confident that it will continue to deliver for its residents. Cllr Elliot personally thanked the Finance team for their support over the last 12 months and stated that he looks forward to working with them for the next year.

Cllr Elliot recommended the 2023-24 budget to full Council. Cllr Williams seconded the budget.

Cllr Tindall noted that it had been a challenging year and commented on the challenge for local authorities as a result of the government's approach to funding. Cllr Tindall stated that, despite the urging of the Local Government Association, they had a 1-year settlement and last-minute notification of funding, which has put additional strain on staff, and stated that there should be 3- or 5-year supplements to allow local authorities to plan and organise finances to the best degree possible. Cllr Tindall paid tribute to officers for their work. Cllr Tindall confirmed that the opposition would be abstaining from producing a separate budget.

Cllr England commented on current food shortages and described this year's budget as the "BLT" budget with Brexit, Long Covid and Trussenomics, as well as government windfall going into the reserves.

Cllr Williams commented on council frustrations regarding short-term funding pots that the government comes up with and the need for a more longer-term funding mechanism. Cllr Williams commended the budget for looking to protect frontline services and acknowledged that the Opposition would refrain from producing a separate budget.

A Recorded vote was conducted on the 2023-24 budget. The budget was approved with 28 votes in favour, 0 against and 16 abstentions.

The recorded vote was as follows.

Cllr Williams referred to 7.5 CA2423, Release of Community Infrastructure Levy Core Funds, and the Cabinet decision to resolve to recommend under 1 and 2. Cllr Williams also noted that recommendation 3, shown as Cabinet agreed, should be a resolve to recommend to Council. Cllr Williams advised that the Cabinet recommendation is to support one of the recommendations from the Infrastructure Advisory Group in relation to releasing £600,000 for playground refurbishments, which will include Durrants Hill Road, Miswell Lane, Woodhall Farm, Warners End Valley Upper, Apsley Lock, Croft Meadow, Tower Hill and Flaunden. Cllr Williams also noted that Cabinet supports the principle of using CIL core funds on Breakspeare School and Long Marston Village Hall, subject to further information being provided by the project sponsors, which will return to Cabinet for a final decision once a further decision has been provided.

Cllr Tindall accepted the amended proposals, though noted that acceptance of the Cabinet referral will take decisions on CIL funds into the meeting rooms of the Council rather than brought to the Council for approval. Cllr Tindall referred to 3.2 on page 239 of the Cabinet report, regarding the Infrastructure Advisory Group making recommendations to Council on how CIL core funds are allocated and determining which CIL core funding should be prioritised. Cllr Tindall accepted that Cabinet is a key part of the process and any recommendations from the IAG should go to Cabinet, and he noted his concern that the Council is releasing its authority to the Cabinet. Cllr Tindall asked the Leader if he would be prepared to accept the deletion of 3.7e on page 240 of the Cabinet report, and asked that all individual members play a part in the distribution of funding.

Cllr Maddern commented on the playgrounds that will be receiving funding and noted that Barnacres had not been listed, which missed out on refurbishments last time.

Cllr Griffiths remarked that it was an anomaly when CIL was set up that spending decisions would come to full Council. Cllr Griffiths stated that releasing the money should come to full Council, noting that not all spending caps will come through to full Council and will instead go through the processes in place to spend this money where all members can attend all OSC and Cabinet meetings. Cllr Griffiths stated that the Leader of the Opposition is welcome to attend Cabinet and speak, noting that there is a process in place.

Cllr Anderson commented that expenditure needs to be discussed at committee level and noted that members also have the call-in process, and therefore if there is a Cabinet decision on current expenditure then five members have the opportunity to call-in any Cabinet decision. Cllr Anderson stated that they could therefore not remove 3.7e and stated that members have the opportunity to be involved in debates.

Cllr Tindall stated that his request was not an amendment and confirmed that his recommendation was to accept the referral regardless of whether 3.7e is removed.

Cllr England noted that the Portfolio Holder and Chair of the SPAE OSC had stated at Cabinet on 14th February that they would remove the role of ward councillors having oversight of decisions of the IAG. Cllr England stated that the use of £3m of CIL funding would be made before the election and that ward councillors are almost completely excluded from ratifying these decisions. Cllr England stated that Cllr Anderson would be the lead councillor on the IAG and suggested that scrutiny should be opposition-led. Cllr England asked if this is appropriate governance for local infrastructure.

The Mayor stated that it was not a question and answer session and thanked the member for their contribution.

Cllr Williams suggested that Barnacres was pencilled in for removal rather than refurbishment, though he was unsure of progress on this. Referring to Cllr England's comment, Cllr Williams stated that the remaining items would be unlikely to come before Cabinet before the election. Cllr Williams provided an overview of the approval process and stated that there is no part of the Cabinet process that members can't be involved in, and that ward members can be involved in proposals before they are taken to the IAG. Cllr Williams suggested that the referral came from Cabinet and that he was unsure if he has the authority to amend what has been put to Council by Cabinet.

A vote was conducted on the release of CIL core funds. The motion was carried with 39 votes in favour, 1 against and 3 abstentions.

Cllr Williams moved to 7.6 CA2723, Leadership Team (Tier 2) and Corporate Support Restructure. This was seconded and approved.

The Mayor confirmed that the item did not need to be moved to Part 2.