Agenda and minutes

The Chairperson welcomed everyone to the meeting and went through some general housekeeping arrangements for the meeting.

There were none.

To consider the Minutes of the Strategy and Resources Committee held on 23 November 2023 (copy enclosed).

RESOLVED that the Minutes of the meeting of the Strategy and Resources Committee held on 6 September 2024 be approved and confirmed.

Councillor K M H Lagan asked that it be noted that he was in attendance.  This was acknowledged by the Chairperson.

To disclose the existence and nature of any Disclosable Pecuniary Interests, Other Registrable interests and Non-Registrable Interests relating to items of business on the agenda having regard to paragraph 9 and Appendix B of the Code of Conduct for Members.

(Members are reminded that they are also required to disclose any such interests as soon as they become aware should the need arise throughout the meeting).

There were none.

To receive the views of members of the public, of which prior notification in writing has been received (no later than noon on the Tuesday prior to the day of the meeting).

Should you wish to submit a question please complete the online form at:

www.maldon.gov.uk/publicparticipation.

No requests had been received.

To consider the report of the Interim Chief Finance Officer (copy enclosed).

The Council considered the report of the Interim Chief Finance Officer seeking Members’ approval of the Local Council Tax Support Scheme (LCTS) and associated policies for 2024 / 25, with minor technical amendments as set out in section 2 (a) to (c) of the report. 

It was noted that the Scheme was significantly unchanged to support the delivery of a largely cost neutral LCTS within the proposed budget for 2024 / 25.  Provision had been made to enable changes during the year and an Equality Impact Assessment had been carried out (Appendix 1 to the repot).  The current LCTS reflected the Council’s decision to deliver a long-term sustainable Scheme based on cost neutral principles and the proposed changes ensured it reflected national legislative changes.

Members were reminded of the Council’s Hardship Provision and subject to the continuation of funding from Essex County Council (ECC) it was proposed that the Council continued to offer this scheme for 2023 / 24.  The framework was attached at Appendix 2 to the report.

The Discretionary reduction policy was attached at Appendix 3 for Members’ consideration and was largely unchanged.  The Council Tax Reduction Scheme for 2024 / 25 was attached at Appendix 4.

The Chairperson put the recommendations as set out in the report to the Committee and these were duly agreed.

RECOMMENDED

(i)         That the following changes to the existing schemes are approved:

a.         a cost of living increase in line with the Department for Work and Pensions schemes be included in the Local Council Tax Support (LCTS) Scheme for 2024 / 25 for Pensioners only;

b.         that any legislative changes being introduced to the Housing Benefit Scheme, for 2024 / 25 are mirrored in the Council’s LCTS Scheme to ensure consistency;

c.         minor technical amendments to ensure that we are able to administer the Scheme reflecting current local and national guidance and that we may disregard anything determined to be a local welfare payment from our calculation;

(ii)        that these decisions have been made following Members careful reading of and regard to the Equality Impact Assessment at APPENDIX 1 to these Minutes;

(iii)       that Members note the unchanged framework for the Hardship Provision at APPENDIX 2 to these Minutes;

(iv)       that the Policy document at APPENDIX 3 to these Minutes be approved;

(v)        that the Policy document at APPENDIX 4 to these Minutesbe approved.

To consider the report of the Interim Chief Finance Officer (copy enclosed).

The Committee considered the report of the Interim Chief Finance Officer seeking Members’ consideration of the following updated documents:

·                  Discretionary Non-Domestic Rate Relief Scheme (Appendix 1 to the report), updated to reflect changes announced by Central Government which were detailed within the report.  It was noted that Retail, Hospitality and Leisure relief was fully funded by Central Government.

·                  Empty Homes and Second Homes Premium Policy (Appendix 2) updated to reflect changes previously endorsed by Members and now legislated for by Central Government.  The updated Policy provided a framework for the administration of these changes, including mandatory exemptions, although had yet to be finalised.

The Chairman put the recommendations as set out in the report and these were duly agreed.

RECOMMENDED

(i)         That the proposed Discretionary Non-Domestic Rate Relief Scheme at APPENDIX 5 to these Minutes be approved.

(ii)        That the proposed Empty Homes and Second Homes Premium Policy at APPENDIX 6 to these Minutes be approved.

To consider the report of the Interim Chief Finance Officer (copy enclosed).

The Committee considered the report of the Interim Chief Finance Officer presenting the Treasury Management Strategy 2024 / 25 (the Strategy) (attached as Appendix 1 to the report) for approval by the Council.  The supporting Treasury Management Practices were attached as Appendix 2 to the report.

It was noted that the Strategy had been reviewed by the Council’s Treasury Advisor, Link Ltd and included their latest Interest Rate and Economic Outlooks at the time of writing (December 2023).  Members were advised that the Strategy and Treasury Management Policy were materially unchanged from 2023 / 24.

In response to a comment, it was noted that the last section of page 259 (Appendix 1) should read ‘incur operational exposures, for example though through current accounts’.

The Chairman put the recommendations as set out in the report and this was duly agreed.

RECOMMENDED that the Treasury Management Strategy 2024 / 25 (attached as Appendix 1 to the report) be approved.

To consider the report of the Interim Chief Finance Officer (copy enclosed).

The Committee considered the report of the Interim Chief Finance Officer seeking Members’ approval of the following 2024 / 25 documents:

·                  Capital Strategy (attached as Appendix1 to the report);

·                  Capital Project Bids (Appendix 2 to the report);

·                  Investment Strategy (Appendix 3 to the report). 

·                  minimum Revenue Provision Statement (Appendix 4 to the report);

It was reported that the Capital Strategy had been prepared considering the future plans of the Council, ensuring that they were affordable and prudent.  The Annual Investment Strategy had been updated in line with statutory requirements and good practice, having regard to the Council’s financial position, wider strategies, plans and aims and drew on the advice of the Council’s external treasury advisor, Link Group. 

During her presentation of the report, the Interim Chief Finance Officer reported that following discussions at the last meeting of this Committee the Dengie 100 gym extension and car park had been removed.

The Chairperson reminded Members that the Committee had previously discussed the Capital Programme for 2024 / 25 and therefore this would not be revisited as part of this meeting.

Councillor S White referred to a request she had made for information at the last meeting of this Committee.  The Chairperson advised that her request had been noted.

In response to a question, Members were advised that the Council was projecting an average interest rate of 4% which would vary depending on the type of investment, this was a base assumption on the average over the year.

Councillor M E Thompson proposed that the recommendations as set out the report be agreed.  This proposal was duly seconded and upon a vote being taken agreed.

RECOMMENDED

(i)                the 2024 / 25 Capital Strategy (Appendix 1 to the report) be approved;

(ii)              the 2024 / 25 Capital Project Bids (Appendix 2 to the report) be approved;

(iii)             the 2024 / 25 Investment Strategy (Appendix 3 to the report) be approved;

(iv)             the 2024 / 25 Minimum Revenue Provision Statement (Appendix 4 to the report) be approved.

To consider the report of the Interim Chief Finance Officer (copy enclosed).

The Committee considered the report of the Interim Chief Finance Officer presenting:

·                  for noting, the Provisional Local Government Finance Settlement 2024 / 25 announced by the Government on 18 December 2023;

·                  the revised 2023 / 24 and original 2024 / 25 General Fund Revenue Budget estimate (attached as Appendices 1, 2 and 3 to the report);

·                  the proposed Council Tax increase for 2024 / 25 (Appendix 1);

·                  the policy for the use of Reserves (Appendix 4);

·                  the Interim Chief Finance Officer (Section 151 Officer) statement on the robustness of budgets and adequacy of reserves (Appendix 5)

·                  for noting, the outcome of the budget survey 2004 (Appendix 6).

It was noted that the Council no longer received Revenue Support Grant funding from the Government meaning the majority of the funding for the Council’s services were from income raised by the authority.

The report and associated appendices to the report outlined the following:

·                  the latest information on the provisional Local Government finance settlement 2024 / 25;

·                  revised (2023 / 24) and original (2024 / 25) General Fund revenue budget estimates 2023 / 24;

·                  budget growth, savings and income generation in 2024 / 25;

·                  New Homes Bonus (NHB);

·                  Pension Fund deficit recovery;

·                  Essex Region Business Rates pool;

·                  an update on the interest on investments;

·                  the Council Tax requirement for 2024 / 25;

·                  Council Tax £6.52 increase on 2023 / 24 Band D Basic amount of £218.75;

·                  General Fund balance and Revenue Reserves;

·                  Medium Term Financial Strategy (MTFS);

·                  risks to the Council’s financial position.

The Interim Chief Finance Officer reported that due to the unknown impact of future changes to Local Government finance, it was proposed that the Council should take the opportunity to increase its financial base by increasing the average band D Council Tax by £6.52, the maximum allowed for by the government before a referendum was required.

In response to further questions raised, the Interim Chief Finance Officer provided the following information:

·                  there had been an issue with historic parish precepts, however a letter had been sent to all Parish Councils advising them of this.  It was highlighted that no Parish Council would be adversely affected by the issue, and it was regrettable that the error had occurred.  Members were advised that since this had occurred the Council had strengthened its checks and balances to make sure this did not happen again.

·                  Reference in paragraph 3.6.6 of the report to ‘salaries based on revised Council structure’ related to the Council breaking down its budgets by Directorate.  Detailed budgets reflected the Council’s current structure and Members were reminded that the recent changes to the Service Delivery Directorate had been designed to be cost neutral.

·                  It was clarified on the second bullet in paragraph 3.6.6 it was a hyphen and not a negative sign, staff had been made aware of the pay award for this year and assumptions for next year.  No deduction to staff pay was proposed.

·                  The New Homes Bonus was contributing to the general revenue expenditure of the Council.  This  ...  view the full minutes text for item 449.

To consider the report of the Interim Chief Finance Officer (copy enclosed).

The Committee considered the report of the Interim Chief Finance Officer presenting the revised Medium-Term Financial Strategy (MTFS) 2024 / 25 to 2026 / 27 (attached at Appendix 1 to the report) for recommendation to the Council.

The MTFS set out how the Council would manage its revenue finances up to the 2026 / 27 financial year and supported delivery of the Council’s objectives and priorities.  Due to the uncertainty around the economic outlook the MTFS would be kept under regular review.  It was noted that further adjustments to the MTFS may be required before approval by the Council, subject to the final 2024 / 25 settlement and business rates position being confirmed.  Any material changes would be highlighted in the Council papers.

The report provided a summary of changes to the MTFS, highlighting the reasons for some of these.  Further savings were needed to fully balance the budget and it was noted that these were being reported separated to this Committee.  There were a number of risks to the MTFS and these were set out in the report along with the impact on the General Fund balance.

Members discussed the revised MTFS and in response to comments and questions made, the Interim Chief Finance Officer advised:

·                  In her role as Section 151 Officer, she was obliged to ensure the projections were robust as possible at the time the report was published.  She highlighted the work undertaken throughout the year which had been fed into the latest position.  Although uncertainty remained based on the information at the time, she was confident that this was the position that Members needed to agree.

·                  Members were given assurance that the interest rates forecast took on board advice from the Council’s advisor who took the view across the market before coming up with their interest rate projections.

·                  The interest rate built into the MTFS reflected the projected fall in interest rates over the course of that period.  The Council was not assuming interest rates would continue at their current rate and this in part contributed to the growing budget gap shown in the report.  Members’ attention was drawn to paragraph 8.4 of the report which showed some scenarios around interest rate projections, for example what a 0.5% drop would mean to the Council.

Councillor M E Thompson proposed that the recommendations as set out in the report be agreed.  This proposal was duly seconded and upon a vote being taken agreed.

RESOLVED

(i)                That Members note further adjustments to the Medium-Term Financial Strategy may still be required before approval by the Council, subject to the final 2024 / 25 settlement and business rates position being confirmed. 

RECOMMENDED

(ii)              that the updated Medium-Term Financial Strategy for 2024 / 25 to 2026 / 27 (attached as Appendix 1 to the report) be approved.

There was none.

To resolve that under Section 100A (4) of the Local Government Act 1972 the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A to the Act, and that this satisfies the public interest test.

RESOLVED that under Section 100A (4) of the Local Government Act 1972 the public be excluded from the meeting for the following item(s) of business on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 of Part 1of Schedule 12A to the Act, and that this satisfies the public interest test.

To consider the report of the Interim Chief Finance Officer (copy enclosed).

The Committee considered the report of the Interim Chief Finance Officer presenting Members with income and savings options to address budget matters in 2024 / 25 and beyond.

The report provided an update in respect of the Medium-Term Financial Strategy (MTFS) and budget gap for future years.  Following agreement of the Finance Peer Review Action Plan by the Council in July 2023, the Finance Member Group (FMG) had met several times to consider options available to the Council to achieve its stated ambition of setting a balanced budget for 2024 / 25 and a sustainable MTFS.

The report set out a number of options to close the residual budget gap and Appendix 1 to the report detailed these savings, showing their Red, Amber, Green rating in terms of deliverability and impact.  The Chairperson confirmed to the Committee that all savings coming forward had been considered at length by the FMG.

Following some debate on the first page of Appendix 1 (page 423 of the agenda pack), Councillor A S Fluker proposed that all the savings listed on this page be agreed.  This proposal was duly seconded and agreed.

Members then moved to page 424 of the agenda pack and those savings detailed.  A robust debate took place during which comments were raised in relation to specific saving proposals and in response, further information was provided by Officers.  During the debate Councillor T Fittock proposed that the savings proposals listed on page 424 of the agenda pack be agreed.  This was not seconded.

Councillor A S Fluker proposed that saving proposals 4 and 5 not be supported but that the Director of Strategy, Performance and Governance brings back a report to the Council in relation to these proposals.  This proposal was duly seconded.  Following further discussion, Councillor Fluker amended his proposal, proposing that this Committee recommended to the Council that all savings be agreed with the exception of proposals 4 and 5.  This proposal was duly seconded.  The Chairperson clarified that Councillor Fluker was referring to pages 424 and 425 of the agenda pack and proposing (with the exception of items 4 and 5) approval of all items listed on these pages down to savings proposal number 40.  Councillor Fluker confirmed this was correct.  Upon a vote being taken this proposal was duly agreed.

RECOMMENDED that with the exception numbers 4 and 5, all other individual income and saving options as detailed at APPENDIX 7 to these Minutes be approved to allow a balanced budget to be set in 2024 / 25.