Agenda and minutes

To sign as a correct record the minutes of the meeting of the Cabinet held on 15 November 2022 (copy enclosed). 

The minutes of the Cabinet meeting held on 15 November 2022 were agreed and signed by the Leader.

(Where a Councillor has a Disclosable Pecuniary Interest the Councillor must declare the interest to the meeting and leave the room without participating in any discussion or making a statement on the item, except where a Councillor is permitted to remain as a result of a grant of dispensation.)

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To delegate approval to release the draft budget for consultation (report of the Deputy Chief Executive – Corporate Development (S151) enclosed).

Consideration was given to the report of the Chief Finance Officer – Public Sector Partnership Services Ltd, and the Assistant Direct – Finance, which requested delegated approval to release the draft budget for consultation.  

The Portfolio Holder - Finance, Commercialisation and Partnership presented the report and advised that it provided an overview of the 2023/24 Budget as it currently stood.  The creation of the budget had been one of the most challenging for many years.  It was set within a background of unprecedented inflationary pressures and significant changes in resident, customer and business needs. Despite these challenges the Council’s financial position meant that it was well placed and able to take a considered approach to mitigating these exceptional challenges.

The report being presented to Cabinet provided an update on the key service budget pressures, which included pay inflation, pension costs, utilities and fuel inflation - this had been offset in part by increased returns from investment balances but did not cover pressures in their entirety.

The 2023/24 provisional Local Government Settlement was announced on 19 December 2022 and was detailed within the report.

Another element of the Council’s budget was the Drainage Board Levy – like the Council, Drainage Boards were also experiencing increased cost demands.  The Council was liaising with the Boards, who were attempting to limit future increases where possible.  This was proving increasingly difficult with significant increases in power costs being experienced.  Representations to Government have been made and continued to be made due to the substantial loss of income to the Council, as the levy was previously funded through Revenue Support Grant (RSG).

Another key component of the Council budget was its share of Business Rates income.  This information was not yet available, due to changes to the national system and delays with the implementation of CAPITA system software updates which were required to produce these figures.

There was a proposed 3% Council Tax increase for 2023/24 which equated to an annual increase of £5.76 for a Band D property.

A series of short and medium-term mitigations had been identified to balance the budget, and these would be detailed further once the final budget for 2023/24 was produced.

The use of Reserves would be present within the final budget.  Similarly, consideration was still being given to the HRA budget which was also experiencing inflationary pressures.

The report recommended that delegation be provided to the Portfolio Holder for Finance, Commercialisation and Partnerships, in consultation with the Deputy Chief Executive – Corporate Development (S151 Officer) to make the decision to release the draft budget for consultation, prior to full budget proposals being provided to the next meeting of the Cabinet in February.

The following points were raised:

·         It was confirmed that the final figures from the Internal Drainage Boards would be available by the end of January 2023.

·         The Leader commented that this was the most difficult budget setting process that he could recall.  This was due to a multitude of external pressures including wage inflation; increased diesel  ...  view the full minutes text for item 59.

To determine the Council Tax Support scheme for 2023/24 (report of the Deputy Chief Executive – Corporate Development (S151) enclosed). 

Consideration was given to the report of the Deputy Chief Executive – Corporate Development (S151) which sought determination of the Council Tax Support Scheme for 2023/24.     

In November, Cabinet had agreed to consult on continuation of the current scheme, uprated in line with DWP, and to seek views on increasing the maximum amount of CTS for 2023/24.

The scheme for 2023/24 was being determined with the backdrop of the current cost of living and energy costs crises, and the report highlighted some of the other support available to customers.  In addition, details had been received of a new government Council Tax Support Fund initiative which would provide a further discount of up to £25 off Council Tax bills for households in receipt of CTS.  This information was not included within the report as details had been received after it had been written.

In accordance with legislation, consultation with major preceptors, the public and other stakeholders had been carried out.  There was general support for continuation of the current scheme, although, due to the low response rate to the consultation, there was no overriding view on the proposal to increase the maximum level of support.

Section 4 of the report outlined an administrative/minor change to the tolerance rule for Universal Credit changes.  This would continue to provide the same benefit of smoothing fluctuating awards, providing some stability by disregarding small changes each month, and would help to improve administrative efficiency.  It was proposed that this change was made in the final rules for 2023/24 as an ‘administrative/minor change’ delegated to the S151 Officer and Portfolio Holder for Finance, Partnerships and Commercialisation.

Section 5 of the report provided information for the Cabinet to consider as to whether it felt it was timely to commence a more fundamental scheme review for future years.  It was made clear that this would not form part of the scheme decision for 2023/24

The following points were raised:

·         In response to whether SHDC was looking to align its approach with the other authorities within the S&ELCP, it was confirmed that this was the case.

·         Cabinet members agreed that a fundamental review of the Council Tax Support Scheme should be pursued for future years, although this would not affect the scheme decision for 2023/24.

DECISION:

1)    That Cabinet recommend that Full Council approve:

1. Continuation of the current Local Council Tax Support scheme, including uprating in line with DWP’s annual update of allowances and premiums for housing benefit for 2023/24; and

2. An increase in the maximum level of support for working age claimants from 70% to 75%.

2)    That approval be delegated for the 2023/24 final scheme to the Deputy Chief Executive – Corporate Development (S151), in consultation with the Portfolio Holder for Finance, Partnerships and Commercialisation in line with the report, and any administrative and minor changes;

3)    That a more fundamental scheme review be progressed for future years (this would not form part of the scheme decision for 2023/24).

RECOMMENDATIONS TO COUNCIL:

That Full Council approve:  ...  view the full minutes text for item 60.

To provide an update on how the Council is performing for the period 1 July 2022 to 30 September 2022 (report of the Assistant Director – Corporate enclosed).

Consideration was given to the report of the Assistant Director – Corporate which provided an update on how the Council was performing for the period 1 July 2022 to 30 September 2022.   

The Portfolio Holder – Corporate and Communications presented the report and advised of the following:

·         Customer Services continued to perform below target due to a number of pressures that it had had to deal with.  He would be meeting with officers from PSPS to discuss improvement and the way forward;

·         Homelessness was an area that was performing below target however a significant amount of work had recently been undertaken to address these issues;

·         Housing Voids was an area that was underperforming however, more work was also underway to address these issues.  

The following points were raised:

·         Although there were areas of underperformance, it was important to keep looking forward at improvement. The area of most concern was around Customer Services – it was important that residents could contact the Council. 

·         The Portfolio Holder – Assets and Planning requested that he be included in the meeting with PSPS to discuss the way forward regarding Customer Services. 

DECISION:

That the contents of the report be noted.

(Other options considered:

·         Not to monitor performance – this was not recommended;

Reasons for decision:

·         To ensure Council performance was properly scrutinised.)

To introduce a new updated version of the Contract Procedure Rules and an amendment to the Financial Procedure Rules (report of the Assistant Director – Finance (Deputy S151 Officer) and the Assistant Director – Governance and Monitoring Officer enclosed). 

Consideration was given to the report of the Assistant Director – Finance (Deputy S151 Officer) and the Assistant Director – Governance (Monitoring Officer) which introduced a new updated version of the Contract Procedure Rules and an amendment to the Financial Procedure Rules.      

Following an audit recommendation to review the Contract Procedure Rules, as well as the setting up of the PSPS Procurement and Contracts service, a review of the Contract Procedure Rules was undertaken to update them, and to align them with the rest of the South and East Lincolnshire Councils Partnership.

The report and its appendices had been presented to the Governance and Audit Committee where the proposed amendments were considered, with recommendations to be presented to Council for consideration.  In addition, the Leader and Deputy Leaders had been briefed on the proposed amendments.

The purpose of the report was to introduce a new, updated version of the Contract Procedure Rules and an amendment to the Financial Procedure Rules.  The Cabinet was asked to consider and approve the Delegations to Officers, that set out the authorisation for decision making in relation to the proposed Contract Procedure Rules.  The main changes proposed related to the exemptions process, and the procurement thresholds (as detailed in Appendix 3 to the report).

DECISION:

1)    That the draft revised Contract Procedure Rules at Appendix 1 to the report be noted;

2)    That the suggestion that the Monitoring Officer be authorised to make the necessary changes to update the Council’s Constitution, accordingly, including delegation to amend where inconsistencies arise, noting that the CPR will take primacy, be noted.

3)    That the Delegations to Officers, that sets out the authorisation for decision making in relation to Contract Procedure Rules at Appendix 2 to the report, be approved. This approval would be subject to a Council decision to amend the Contract Procedure Rules.

RECOMMENDATIONS TO COUNCIL:

1)    That it be agreed to adopt the revised Contract Procedure Rules at Appendix 1 to this report, without amendment, as the Contract Procedure Rules (CPR).

2)    That it be agreed that the Monitoring Officer be authorised to make the necessary changes to update the Council’s Constitution, accordingly, including delegation to amend where inconsistencies arise, noting that the CPR will take primacy.

3)    That the revised financial procedure rule for Banking arrangement and cheques as detailed in Paragraph 1.12 of the report be approved

(Other options considered:

·         To do nothing – this would result in the retention of the existing Contract Procedure Rules;

Reasons for decision:

·         To ensure that the Council has robust, up-to-date Contract Procedure Rules that provide clarity to officers, members, and potential contractors;

·         In addition to the above, to ensure compliance with audit requirements as some of the Partner Councils have had audit recommendations to update their Contract Procedure Rules;

·         To ensure a clear and consistent approach in the award of contracts and safeguard the public’s trust and confidence and promote public accountability and good procurement practice;

·         To help avoid governance failures in the Council’s procurement activity.)

Note:         (i)      No other business is permitted unless by reason of special circumstances, which shall be specified in the Minutes, the Leader is of the opinion that the item(s) should be considered as a matter of urgency. 

(ii)     Any urgent item of business that is a key decision must be dealt with in accordance with the Constitution’s Access to Information Procedure Rules.

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