Democracy | Full Council – 19 February 2013

Full Council – 19 February 2013

Present – The Mayor – Councillor Ivan Glover
Councillors Ali, Allcock, Armitage, Bainbridge, Barker, J Briggs, Mrs Bromby, Bunyan, Carlile, Clark, Collinson, Davison, Eckhardt, Ellerby, England, Evison, L Foster, T Foster, Godfrey, Gosling, Grant, Jawaid, Kataria, Kirk, Marper, Ogg, Oldfield, O’Sullivan, Poole, Mrs Redfern, Robinson, Rowson, N Sherwood, Swift, K Vickers, P Vickers, Waltham, Wardle, Wells, Whiteley and Wilson.

The council met at The Civic Centre, Ashby Road, Scunthorpe.

2164 DECLARATIONS OF DISCLOSABLE PECUNIARY INTERESTS AND PERSONAL OR PERSONAL AND PREJUDICIAL INTERESTS – Declarations of personal interests were indicated as follows –

Member	Subject/Minute
Councillor M Ali	Licensed Hackney Carriage Driver South Humber Racial Equality Council – Trustee Crosby Community Association – Chair
Councillor J Briggs	Humberside Fire Authority – Member
Councillor T Ellerby	South Humber Racial Equality Council – Vice Chair
Councillor J England	Humberside Police and Crime Panel – Member
Councillor T Foster	Humberside Police and Crime Panel – Member
Councillor I Jawaid	South Humber Racial Equality Council – Chair
Councillor Mrs E Redfern	North Lincolnshire Homes – Board Member
Councillor R Waltham	North Lincolnshire Homes – Member Humberside Fire Authority – Member

2165 BUDGET SPEECHES – It was moved by Councillor England and seconded by Councillor Poole –

That in accordance with Procedure Rule D1.19(s) the Leader of the Council and the Leader of the Opposition be allowed up to 20 minutes to deliver their respective budget speeches.

Motion Carried

2166 (15) FINANCIAL STRATEGY 2013/2017, REVENUE BUDGET 2013/2014 AND FINANCIAL PLAN 2013/2017, CAPITAL PROGRAMME 2013/2017 AND TREASURY MANAGEMENT AND STRATEGY REPORT 2013/2014 – The Director of Policy and Resources submitted reports relating to –

The Council’s Financial Strategy 2013/2017
The Revenue Budget 2013/2014 and Financial Plan 2013/2017
The Capital Programme 2013/2017
The Treasury Management and Strategy Report 2013/2014

Each year the council decides its spending plans for the next financial year. This starts in April and the plans include –

A revenue budget to cover the day to day running costs of council services
A capital programme of investment in buildings and infrastructure
A Treasury Management and Investment Strategy which says how it will invest its cash, both investments in assets or to help its cash flow and manage its debt.

Each of these issues was dealt with by a separate report. The budget is part of a long term financial strategy because the council needs to be sure its spending on services is sustainable. It must also ensure that its resources are deployed in the most effective way to deliver improved public services and to do so would increase efficiency. The report on the Financial Strategy 2013/2017 considered some key issues and relevant factors for the financial strategy namely –

The current economic situation
The government’s deficit reduction plan for the public finances
The council’s share of resources through the Local Government Finance Settlement
Feedback from the public and other stakeholders on what they see as service and spending priorities.

That report also considered the council’s four agreed priorities and set out a vision and strategic direction for the council. They defined how the council would operate and the outcomes it was committed to achieve for people who live and work in the area. In essence, it committed the council to be a dynamic, high performing and customer focussed council giving the best possible value for money and changing outcomes for all people living and working in the area.

There were four key themes to the strategy –

To give excellent service to customers
To provide value for tax payers money
To make communities stronger
To regenerate the area and increase prosperity

There is a legal requirement to set a revenue budget each year. The council had to decide the level of spending it could afford and take account of how much government grant it would receive and the level of council tax it wished to set. The council must make sure that it sets a balanced budget – and that it has identified adequate finance to pay for its spending plans. Although the revenue budget is by law set one year at a time, it needs to fit the longer term strategic vision and in practice the council sets an indicative four year financial plan as well as a detailed one year budget.

The council also had a separate capital programme for longer term investment in services. This is spending on the construction and improvement of assets such as schools, roads and other council run facilities. It can fund these from grant, borrowing, capital receipts from asset sales or directly from revenue. The prudential code governs borrowing decisions and the council must ensure that borrowing to support investment is affordable and prudent over a long term.

The council had also adopted the CIPFA Code of Practice for Treasury Management, the standard of best practice. This was revised in the light of the Icelandic Banking Crisis and the impact it had on local government investments. The code required the council to set a strategy for the investment of cash surpluses, the management of its debt portfolio and define how and in what circumstances it would borrow.

Each of the reports submitted by the Director of Policy and Resources dealt with council priorities and the financial strategy, revenue spending, capital investment and treasury management. Each report contained a great deal of detail in relation to those specific areas which, taken together, would enable the council to set a budget for 2013/2014.

Moved by Councillor Mrs Redfern and seconded by Councillor Briggs –

Strategy

That in determining the resource allocation the Council has taken account of the state of the economy and public finances, the council’s financial position and the council’s strategic priorities as set out in report 2(a).
That the budget consultation feedback from local residents, business and other stakeholders, considered in Appendix 1 to report 2(a) be welcomed.

Revenue

That the revenue budget for 2013/14 be set in total and for each service as follows:

Budget	2013-14
	£
PEOPLE SERVICES
School Improvement	3,409,750
Commissioning & Localities	8,973,670
Specialist Services	15,972,290
Adult Services	37,521,170
Total People services	65,876,880
PLACES
Customer Services	5,921,350
Community Services	26,272,640
Technical and Environmental Services	5,039,720
Planning & Regeneration	2,817,400
Total Places	40,051,110
POLICY & RESOURCES
Human Resources	1,929,490
Legal Services	3,243,540
Financial Services	3,304,800
Business Support	3,721,600
Total Policy & Resources	12,199,430
CENTRAL BUDGETS
Corporate Budgets & Levies	13,917,000
Capital Financing	13,463,720
Contingency	1,669,920
Use of Reserves	-2,309,190
Total Central Budgets	26,741,450

Total Net Budget	144,868,870

That all budgets be strictly cash limited to the figures set by the Council and that services ensure tight control of expenditure during the year and take immediate action to contain cost pressures
At the meeting held on 27 November 2012 and in minute 34 of the Policy and Resources Cabinet Member decision of 24 January 2013 the Council set the following amounts for the year 2013/14. These are as required by regulations made under Section 33(5) of the Local Government Finance Act 1992:-

(a) 44,030.2 as its Council Tax Base for the year (Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended, the “Act”)

(b) the Council Tax Base for each part of the area as shown in Appendix A of the report to the Cabinet Member for Policy & Resources on 24th January 2013.

That the Council Tax requirement for the Council’s own purposes for 2013/14 (excluding Parish precepts) is £56,538,926

7. That the following amounts for 2013/14, as required by Sections 31 to 36 of the Local Government Finance Act 1992 as amended be approved

(a) £345,114,260 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils (gross expenditure including parish precepts and special expenses)

(b) £287,388,223 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act (gross income)

(c) £57,726,037 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).

(d) £1,311.06 being the amount at (c) above Item R, divided by Item T (8.3(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts). (Band D council tax including parish precepts and special expenses)

(e) £1,637,727 being the aggregate amount of all special items and Parish precepts referred to in Section 34(1) of the Act (as per the attached Appendix C1) (Total of all Parish Precepts and Special Expenses)

8. That it be noted that for the year 2013/14 the major precepting authorities have issued precepts to the Council, in accordance with Section 40 of the Local Government Finance Act, 1992 (police and fire precepts)

That the amounts of council tax for the year 2013/14 for each of the categories of dwellings be as specified in revised Appendices C1 and C2 of report 2(b) attached. Having calculated the aggregate in each case of the amounts at 7 and 8 above in accordance with Section 31B of the Local Government Finance Act, 1992 as amended (council tax including police, fire and parish precept for each band and each parish)
That the robustness of the estimates used in setting the level of council tax in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1)(a) of the Act) be confirmed
That the adequacy of reserves included in the budget in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1) (b) of the Act), and the policy for use of reserves as set out in Section 3 and at revised Appendix A2 of report 2(b) attached be confirmed.
That the grant awarded to parishes at Appendix C, report 2(b) be confirmed.
That the financial strategy for 2013/17 as set out in revised Appendices B1 and B2 of report 2(b) be approved and indicative council tax levels be set at 1.75% in 2014/15 and 1.9% in 2015/16 and 2016/17.
That the Director of Policy & Resources be authorised to produce the necessary taxpayer information

Capital

That the capital programme for 2012/17 be approved in line with revised Appendices A & B of report 2(c) attached.
That any further capital projects fully funded by external sources or which are self-financing be added to the capital programme when known, subject to a proper assessment of the business case, and approval of the necessary virement
That in accordance with Part 1, sections 3 and 5 of the Local Government Act, 2003 the Prudential Indicators contained in revised Appendix D of report 2(c) attached be approved
That the Director of Policy and Resources be authorised to determine the methods of capital financing within the available funding (revenue budget, capital receipts, borrowing, specific external funding and leasing)
That the Director of Policy and Resources be authorised, within the total authorised limit, and the total operational boundary, for external debt for any individual year, to effect movement between the separately agreed figures for borrowing and long term liabilities, in accordance with option appraisal and best value for money for the council. Any changes to be reported to cabinet or council as appropriate at the next meeting following the change
That the Director of Policy and Resources report any amendments required to Prudential Indicators during 2013/14, to cabinet or council as appropriate at the next meeting following the change

Treasury

That the Treasury Management and Investment Strategy for 2013/14 be approved
That the current list of approved financial institutions at Appendix C to the report 2(d) be noted and in accordance with the report recommendation 8.1(d), powers are delegated to the Director of Policy and Resources to make changes to the list in accordance with paragraph 4.11. Changes are to be reported to Council, Cabinet and the Audit Committee as part of the regular reporting process.
That the prudential indicators for 2013/17 at revised Appendix D to the report at 2(d) be approved
That the policy on the Minimum Revenue Provision at paragraph 4.26 to the report at 2(d) be approved.

During the course of the Leader’s budget speech –

It was –

Moved by Councillor England and seconded by Councillor Poole –

That in accordance with Procedure Rule D1.19(s) the Leader of the Council and the Leader of the opposition be allowed up to an additional ten minutes to deliver their respective budget speeches.

At the request of members and in accordance with Procedure Rule 1.23(d) the names of members voting for, against and abstaining from the motion are as follows –

FOR: Councillors Allcock, Briggs, Mrs Bromby, Bunyan, Clark, Eckhardt, England, Evison, T Foster, Glover, Marper, Ogg, Poole, Mrs Redfern, Robinson, Rowson, N Sherwood, K Vickers, P Vickers, Waltham, Wardle and Wells.

AGAINST: Councillors Ali, Armitage, Bainbridge, Barker, Carlile, Collinson, Davison, Ellerby, L Foster, Godfrey, Gosling, Grant, Jawaid, Kataria, Kirk, Oldfield, O’Sullivan, Swift, Whiteley and Wilson.

ABSTAINING: Nil.

Motion Carried

Moved by Councillor Kirk and seconded by Councillor L Foster as an amendment –

Strategy

That in determining the resource allocation the Council has taken account of the state of the economy and public finances, the council’s financial position and the council’s strategic priorities as set out in report 2(a).
That the budget consultation feedback from local residents, business and other stakeholders, considered in Appendix 1 to report 2(a) be welcomed.

Revenue

That the revenue budget for 2013/14 be set in total and for each service as follows:

Budget	2013-14
	£
PEOPLE SERVICES
School Improvement	3,437,880
Commissioning & Localities	8,861,330
Specialist Services	16,028,860
Adult Services	37,542,360
Total People services	65,870,430
PLACES
Customer Services	5,875,980
Community Services	25,840,520
Technical and Environmental Services	4,982,560
Planning & Regeneration	2,816,550
Total Places	39,515,610
POLICY & RESOURCES
Human Resources	1,886,030
Legal Services	3,243,540
Financial Services	3,319,230
Business Support	3,683,080
Total Policy & Resources	12,131,880
CENTRAL BUDGETS
Corporate Budgets & Levies	13,876,200
Capital Financing	13,414,080
Contingency	1,669,860
Use of Reserves	-1,609,190
Total Central Budgets	27,350,950

Total Net Budget	144,868,870

That all budgets be strictly cash limited to the figures set by the Council and that services ensure tight control of expenditure during the year and take immediate action to contain cost pressures
At the meeting held on 27 November 2012 and in minute 34 of the Planning & Resources Cabinet Member decision of 24 January 2013 the Council set the following amounts for the year 2013/14. These are as required by regulations made under Section 33(5) of the Local Government Finance Act 1992:-

(a) 44,030.2 as its Council Tax Base for the year (Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended, the “Act”)

(b) the Council Tax Base for each part of the area as shown in Appendix A of the report to the Cabinet Member for Policy & Resources on 24 January 2013.

That the Council Tax requirement for the Council’s own purposes for 2013/14 (excluding Parish precepts) is £56,538,926

7. That the following amounts for 2013/14, as required by Sections 31 to 36 of the Local Government Finance Act 1992 as amended be approved

(a) £344,463,760 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils (gross expenditure including parish precepts and special expenses)

(b) £286,737,723 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act (gross income)

That it be noted that for the year 2013/14 the major precepting authorities have issued precepts to the Council, in accordance with Section 40 of the Local Government Finance Act, 1992 (police and fire precepts)
That the amounts of council tax for the year 2013/14 for each of the categories of dwellings be as specified in revised Appendices C1 and C2 of report 2(b) attached. Having calculated the aggregate in each case of the amounts at 7 and 8 above in accordance with Section 31B of the Local Government Finance Act, 1992 as amended (council tax including police, fire and parish precept for each band and each parish)
That the robustness of the estimates used in setting the level of council tax in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1)(a) of the Act) be confirmed
That the adequacy of reserves included in the budget in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1) (b) of the Act), and the policy for use of reserves as set out in Section 3 and at revised Appendix A2 of report 2(b) attached be confirmed.
That the grant awarded to parishes at Appendix C, report 2(b) be confirmed.
That the financial strategy for 2013/17 as set out in revised Appendices B1 and B2 of report 2(b) be approved and indicative council tax levels be set at 1.9% in 2014/15, 2015/16 and 2016/17.

14 That the Director of Policy and Resources be authorised to produce the necessary taxpayer information

Capital

That the capital programme for 2012/17 be approved in line with revised Appendices A & B of report 2(c) attached.
That any further capital projects fully funded by external sources or which are self-financing be added to the capital programme when known, subject to a proper assessment of the business case, and approval of the necessary virement
That in accordance with Part 1, sections 3 and 5 of the Local Government Act, 2003 the Prudential Indicators contained in revised Appendix D of report 2(c) attached be approved
That the Director of Policy and Resources be authorised to determine the methods of capital financing within the available funding (revenue budget, capital receipts, borrowing, specific external funding and leasing)
That the Director of Policy and Resources be authorised, within the total authorised limit, and the total operational boundary, for external debt for any individual year, to effect movement between the separately agreed figures for borrowing and long term liabilities, in accordance with option appraisal and best value for money for the council. Any changes to be reported to cabinet or council as appropriate at the next meeting following the change
That the Director of Policy and Resources report any amendments required to Prudential Indicators during 2013/14, to cabinet or council as appropriate at the next meeting following the change

Treasury

That the Treasury Management and Investment Strategy for 2013/14 be approved
That the current list of approved financial institutions at Appendix C to the report 2(d) be noted and in accordance with the report recommendation 8.1(d), powers are delegated to the Director of Policy & Resources to make changes to the list in accordance with paragraph 4.11. Changes are to be reported to Council, Cabinet and the Audit Committee as part of the regular reporting process.
That the prudential indicators for 2013/17 at revised Appendix D to the report at 2(d) be approved
That the policy on the Minimum Revenue Provision at paragraph 4.26 to the report at 2(d) be approved

Moved by Councillor L Foster and seconded by Councillor Gosling –

That in accordance with Procedure Rule D1.18(m) the question be now put.

Motion Lost

At a further point during the course of the debate it was –

Moved by Councillor Davison and seconded by Councillor Kirk –

That in accordance with Procedure Rule D1.18(m) the question be now put.

Motion Lost

Following completion of the debate on the budget the council proceeded to the vote.

Amendment Lost
Motion Carried

2167 (16) IMPLEMENTATION OF THE 2013/2014 PAY POLICY STATEMENT – The Director of Policy and Resources submitted a report which outlined and sought approval for the council’s pay policy statement for 2013/2014, in accordance with Section 38 of the Localism Act 2011.

Local Authorities were now required under Section 38(1) of the Localism Act 2011 to prepare an Annual Pay Policy Statement. The statement must set out the council’s approach to pay and reward of its most senior employees set within the context of the pay of the wider workforce.

Each local authority is an individual employer in its own right and had the autonomy to make decisions on pay that were appropriate to local circumstances and which delivered value for money for local tax payers. The provisions of the Act did not seek to change this or to determine what decisions on pay should be taken. However, they did require individual councils to be more open about their policies in relation to pay and how decisions were made in this regard. The Act required that Pay Policy Statements were produced annually and considered in an open session of full council. This was the second statement and had to be published by 1 April 2013.

The council’s first policy in 2012 had been set in the context of the Senior Management Review and accordingly reflected the new structure of “Chief Officer Posts” at the time. A number of appointments to the new structure had not at that time been made and names could not be included along with dates or job titles published in order to meet the CLG Code of Recommended Practice for local authorities on data transparency. The report indicated that all roles were now currently filled and the information would be published on the council’s website in accordance with the Act and other pieces of statutory guidance which supported the transparency agenda.

The Act required that local authorities include in their Pay Policy Statements a number of details which were set out in paragraph 2.4 of the report. Section 40 of the Act required authorities in developing their pay policy statement to have regard to additional guidance including the CLG Code of Recommended Practice for local authorities on data transparency and the Account and Audit (England) Regulations 2011.

The report contained further information in relation to the pay policy, details of which were attached as appendices to the report.

Moved by Councillor Mrs Redfern and seconded by Councillor Briggs –

“That the Pay Policy Statement for 2013/2014 be approved and adopted.”

Moved by Councillor Barker and seconded by Councillor Jawaid as an amendment.

“That the proposed Pay Policy Statement for 2013/2014 be approved and adopted, subject to the inclusion, at the appropriate time, of the post of Director of Public Health on completion of all statutory transfer requirements.”

Amendment Lost
Motion Carried