Full Council – 16 February 2017
Present – THE MAYOR –Councillor T Foster
Councillors Ali, Allcock, Armiger, Bainbridge, J Briggs,Clark, A Davison, J Davison, Ellerby, England, Evison, L Foster,Glover, Godfrey, Gosling, Grant, Hannigan, Kirk, Longcake, Marper, Mumby-Croft, Ogg, Oldfield, O’Sullivan, Perry, Poole, Baroness Mrs Redfern, Reed, Robinson, Rose, Rowson, C Sherwood, N Sherwood, P Vickers, Waltham, Wells, and Wilson.
The council met at The Civic Centre, Ashby Road, Scunthorpe.
2493 MAYOR’S REMARKS – The Mayor welcomed fellow councillors, officers and members of the public to the meeting. He referred to the absence of Councillors Carlile and Collinson due to ongoing and current treatment of their illnesses respectively, and also Neville Moore the Mayor’s Chauffeur, who was ill, and on behalf of the council expressed collective thoughts and best wishes of members and officers. The Mayor then referred to the recent sad death of Scunthorpe born Graham Taylor and paid tribute to his local, national and international achievements in football over the years.
The council then observed a minute’s silence in memory Graham Taylor.
2494 DECLARATIONS OF DISCLOSABLE PECUNIARY INTERESTS AND PERSONAL OR PERSONAL AND PREJUDICIAL INTERESTS – The Mayor stated that in relation to the council budget reports on this meeting’s agenda, members would not necessarily have to make specific declaration of interests unless they were a trustee, director or holding a position of management responsibility on organisations who were to receive financial support from the council. All other declarations should be made as members considered appropriate.
Declarations of personal interests were indicated as follows –
| Councillor M Ali | Hackney Carriage Driver/Licence Holder, with schools transport contract. Crosby Community Association – Trustee |
| Councillor R Allcock Councillor Armiger Councillor J Briggs Councillor Clark Concillor T Foster Councillor Grant Councillor Longcake Councillor H Mumby-Croft Councillor Ogg Councillor D Oldfield Councillor C O’Sullivan Councillor N Poole Councillor J Reed
Councillor D Robinson Councillor H Rowson Councillor C Sherwood Councillor N Sherwood Councillor P Vickers Councillor R Waltham
Councillor Wells |
Isle of Axholme and North Nottinghamshire Water Management Board
Member of Friends of Bottesford Beck Scunthorpe and Gainsborough Water Management Board Fire Authority – Member Isle of Axholme and North Nottinghamshire Water Management Board – Member Relation Employee of North Lincolnshire Council North East Lindsey Internal Drainage Board – Member Scunthorpe and Gainsborough Water Management Board – Member Scunthorpe and Gainsborough Water Management Board. Chairman of Humberside Police and Crime Panel Employee of British Steel Scunthorpe and Gainsborough Water Management Board – Member Fire Authority – Member Member of Friends of Bottesford Beck Broughton Pocket Park Management Committee Scunthorpe and Gainsborough Water Management Board – Member Scunthorpe and Gainsborough Water Management Board – Member Member of Rape Crisis Blue Door, Scunthorpe Scunthorpe and Gainsborough Water Management Board Personal Licence Holder and Waste Contract Isle of Axholme and North Nottinghamshire Water Management Board – Member Family Member Employee of the Council Crowle Peatland Railway Isle of Axholme and North Nottinghamshire Water Management Board – Member Ancholme Internal Drainage Board – Member Ancholme Internal Drainage Board – Member Fire Authority – Member Ancholme Internal Drainage Board – Member CHAMP Friends of Baysgarth Park Humber Bridge Board – Chairman Fire Authority – Member Ancholme Internal Drainage Board North East Lindsey Internal Drainage Board – Member |
2495 LOCAL GOVERNMENT ACT 1972, SECTION 85 – The Monitoring Officer reported orally on the absence of Councillor Carlile as a result of her ongoing treatment of her illness, and pursuant to Section 85 of the Local Government Act 1972, explained that council’s assent was sought for Councillor Carlile’s continued absence from meetings of the council.
The Mayor was requested to seek council’s agreement of the above proposal.
Resolved – That the above proposal as explained in the Monitoring Officer’s oral report be approved.
2496 (13) STATEMENT OF LICENSING POLICY – LICENSING ACT 2003 – Further to minute 1389 of the Licensing Committee, the Director of Places submitted a report attaching in an appendix the council’s Statement of Licensing Policy, which in accordance with section 5 of the Licensing Act 2003 required approval by council before its implementation.
Resolved – That the Statement of Licensing Policy be approved in accordance with section 5 of the Licensing Act 2003.
2497 BUDGET SPEECHES – It was moved by Councillor England and seconded by Councillor Hannigan:–
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
2498 (14) REVENUE BUDGET 2017/2018 AND FINANCIAL PLAN 2017/2020, CAPITAL PROGRAMME 2017/2020, TREASURY MANAGEMENT STRATEGY 2017/2018 AND IMPLEMENTATION OF THE 2017/2018 PAY POLICY STATEMENT – The Director of Policy and Resources submitted reports relating to: –
Each year the council decided its spending plans for the next financial year. This started in April and the plans included: –
- A Revenue Budget to cover the day to day running costs of council’s services.
- A Capital Programme of Investment in buildings and infrastructure.
- A Treasury Management and Investment Strategy which stated how it would invest its cash, both investment 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 was part of a long term financial strategy because the council needed to be sure its spending on services were sustainable. It must also ensure that its resources were deployed in the most effective way to deliver improved public services and to do so would increase efficiency. The reports and their appendices identified options for continuing to deliver high quality services while meeting the challenges of the current financial climate. The report on the Revenue Budget 2017/2018 and Financial Plan 2017/2020 considered some key issues and relevant factors for the Financial Strategy namely: –
- Strategic Direction
- The Financial Framework.
- Central Government Funding, the Local Government Finance Settlement and other grants
- Local Resources, and
- Business Rates
There was a legal requirement to set a revenue budget each year. The council must 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 set a balanced budget and that it has identified adequate finance to pay for its spending plans. Although the revenue budget was by law set one year at a time, it needed to fit in the longer term strategic vision and in practice the council set an indicative four year financial plan as well as a detailed one year budget.
This year central government had provided social care authorities with additional flexibility to raise up to a 3% annual precept to be used for adult social care. The council’s Chief Financial Officer would have to certify that this funding was used solely for Adult Social Care, in a format determined by the government.
The council also has a separate capital programme for longer term investment in services. This was spending on the construction and improvement of assets such as schools, roads and other council run facilities. It also included grants for investment in community facilities and home improvement and government funding allocated for economic regeneration and infrastructure development. These could be funded from grants and other external funding, borrowing, capital receipts from the sale of council assets and direct contributions from the council’s general fund revenue budget. The prudential code governed borrowing decisions and the council had to ensure that borrowing to support investment was affordable and prudent over the long term.
All councils were required by regulation to give due regard to the CIPFA Prudential Code of Practice for capital finance in local authorities when setting their capital programmes. This code required that the council agreed a series of indicators and limits for the forthcoming year which would help to decide what was affordable and what was prudent. The objectives of the code were to ensure that the capital investment plans of the council were affordable, prudent and sustainable.
The council had also adopted the CIPFA’s revised Code of Practice for Treasury Management in 2011, the current standard of best practice. The revised code emphasised that risk management was a fundamental part of a Treasury Management Strategy. The code prioritised the security of investment above the return achieved. It provided a framework to ensure for a particular council that capital expenditure plans were affordable, all external borrowing and other long term liabilities were within improvement and sustainable levels and that treasury management decisions were taken in accordance with professional good practice. The code required the council to set a strategy for the investment of cash services, the management of its debt portfolio and define how and in what circumstances it would borrow.
In addition, the implementation of the 2017/2018 Pay Policy Statement Report outlined and sought approval of the council’s Pay Policy Statement for 2017/2018, in accordance with Section 38 of the Localism Act 2011. Local Authorities were now required under Section 38(1) of that Act to prepare an annual Pay Policy Statement. The statement attached as an appendix to the report set out the council’s own policy on a range of issues relating to the pay of its workforce, particularly its senior staff (or ‘chief officers’) and its lowest paid employees, set within the context of the median pay of the wider workforce (‘pay multiple’).
Each of the financial reports submitted by the Director of Policy and Resources dealt with council priorities and the financial plan, revenue and spending, capital investment and treasury management. Each report contained a significant and proportionate level of detail in relation to those specific areas which, taken together, would enable the council to set a budget for 2017/2018.
Moved by Councillor Waltham and seconded by Councillor Hannigan: –
Strategy
1 That in determining the resource allocation the Council has taken account of the state of public finances, the council’s financial resources and the council’s strategic priorities as set out in report 4(a)
Revenue
2 That the revenue budget for 2017/18 be set in total and for each service as follows:-
| Budget | 2017/18 |
| £000’s | |
| PEOPLE SERVICES | |
| Education | 5,491 |
| Prevention & Commissioning | 9,071 |
| Children’s Services | 16,590 |
| Adult Services | 32,079 |
| Total People services | 63,231 |
| POLICY & RESOURCES | |
| Human Resources | 1,573 |
| Legal Services | 2,363 |
| Financial Services | 2,581 |
| Business Support | 3,423 |
| Total Policy & Resources | 9,940 |
| PLACES | |
| Customer Services | 3,985 |
| Community Services | 24,562 |
| Technical & Environmental | 3,623 |
| Planning & Regeneration | 1,514 |
| Strategic Projects | 342 |
| Total Places | 34,026 |
| CENTRAL BUDGETS | |
| Corporate & Miscellaneous | 3,626 |
| Capital Financing | 12,989 |
| Contingency | 2,342 |
| Total Central Budgets | 18,957 |
| Total Net Budget | 126,154 |
3 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
4 At the meeting held on 15th December 2016 Council set the following amounts for the year 2017/18. These are as required by regulations made under Section 33(5) of the Local Government Finance Act 1992:-
(a) 48,147.19 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 C, column 2 (regulation 6).
5 That the following amounts for 2017/18, as required by Sections 31 to 52 of the Local Government Finance Act 1992 as amended be approved.
(i) £65,564,689 being the relevant amount of Council tax for 2017/18 (Council Tax requirement for the Council’s own purposes excluding parish precepts but including special expenses).
(ii) The following amounts for the year 2017/18:
(a) £327,368,039 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) £260,389,395 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) £66,978,644 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) £1,391.12 being the amount at (c) above Item R, divided by Item T (5(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) £1,923,154 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).
6 That it be noted that for the year 2017/18 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).
7 That the amounts of council tax for the year 2017/18 for each of the categories of dwellings be as specified in revised Appendices C1 and C2 of report 4(a) attached. Having calculated the aggregate in each case of the amounts at 5 and 6 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).
8 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.
9 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 (e) and at revised Appendix A2 of report 4(a) attached be confirmed.
10 That the use of capital receipts flexibility be approved enabling spending charged to the revenue budget on service transformation to be capitalised as set out at Appendix A3.
11 That grant be awarded to parishes in accordance with the principles agreed at council on 15th December 2016 and shown in Appendix C1.
12 That the Members Allowance Scheme for 2017/18 be approved as detailed in paragraph 1 of Council minute 2372.
13 That the constitution be amended to authorise Directors to set fees and charges for Council services, including making any necessary changes to service delivery to achieve income targets and policy requirements included in the approved budget, together with the power to undertake any necessary consultation, carry out promotional campaigns and take such other actions as maybe appropriate to achieve those targets.
14 That the financial strategy for 2017/20 as set out in revised Appendices B1 and B2 of report 4(a) be approved and the council tax increases be set at 0.99% in 2017/18 and indicatively at 1.99% in 2018/19 & 2019/20.
15 That the Adult Social Care Precept as set out in revised Appendix B1 of report 4(a) be approved and the council tax levels be set at 3% in 2017/18 and indicatively at 3% in 2018/19 and 0% in 2019/20.
16 That the Council’s Chief Financial Officer be authorised to allocate to service budgets in 2017/18 the contingency provision for pay and inflation, and to realign budgets to the new management structure.
17 That the Council’s Chief Financial Officer be authorised to make any necessary adjustments to the agreed budget consequent on the final local government settlement position being notified, any net amendment being made on the use of the revenue support account reserve.
18 That the Council’s Chief Financial Officer be authorised to produce the necessary taxpayer information.
Capital
That the capital programme for 2017/20 be approved in line with revised Appendices B & C of report 4(b) attached.
19 That, subject to the approval of the Cabinet Member for Governance and Transformation, further capital projects, fully funded by external sources or which are self-financing, may be added to the capital programme when known and assessed by a proper business case.
20 That in accordance with Part 1, sections 3 and 5 of the Local Government Act, 2003 the Prudential Indicators contained in revised Appendix A of report 4(b) attached be approved.
21 That the Chief Financial Officer be authorised to determine the methods of capital financing within the available funding (revenue budget, capital receipts, borrowing, specific external funding and leasing).
22 That the Chief Financial Officer be delegatedauthority to:-
- borrow within authorised limits and the operational boundaries for external debt
- effect movement between agreed borrowing figures and long term liabilities, in accordance with option appraisal and the achievement of value for money for the council. Movements are to be reported to cabinet or council as appropriate at the next meeting following the change
23 That any amendments required to Prudential Indicators during 2017/18 are reported to cabinet or council as appropriate.
Treasury
24 That the Treasury Management and Investment Strategy for 2017/18 be approved.
25 That the prudential indicators for 2017/20 at revised Appendix C to the report at 4(c) be approved.
26 That the revised policy on the Minimum Revenue Provision be approved to apply from 2016/17.
27 That council approves the list of approved financial institutions at Appendix B to the report 4(c) and delegates to the Chief Financial Officer the authority to make changes to the list as necessary, within the guidelines set by the Treasury Strategy. Any changes to be reported back to Council, Cabinet and Audit Committee as part of the regular reporting process.
28 That Council approves the procurement of Treasury Advisers to review the council’s Treasury Strategy and Treasury Management Practices.
Pay Policy Statement
29 That the proposed Pay Policy Statement for 2017/18 contained in report 4(d) be approved.
Moved by Councillor L Foster and seconded by Councillor A Davison as an amendment:–
‘This council rejects the implementation of the Conservative Government’s austerity based financial settlement upon the residents of North Lincolnshire.
The six year government imposed austerity programme has failed the people of North Lincolnshire, with ever restrictive financial reductions bringing more and more pain and suffering to those most in need of the services that North Lincolnshire Council should and must deliver and protect.
With ever increasing numbers of rough sleepers both nationally and locally the pressing need for additional suitable social housing provision appears to be blocked at every opportunity.
This council’s response within this budget is to do nothing to aid this sector.
The requirements of an aging population are a growing concern to everyone who genuinely care for elderly and vulnerable residents across North Lincolnshire, this should be the absolute priority for a caring society.
The reoccurring bed blocking problems at the local hospital requires a solution that can only come from a greater input by this council and by working in partnership with other agencies.
This council’s response within this budget is to do nothing to alleviate this problem’.
Following completion of the debate on the budget the council proceeded to the vote.
Members were reminded that in accordance with the Local Authorities (Standing Orders)(England) (Amendment) Regulations 2014 immediately after any vote was taken at a budget meeting the voting shall be recorded in the minutes to show whether each member present votes for or against a decision or who abstained from voting.
The names of members voting for, against and abstaining from the amendment are as follows: –
FOR: Councillors A Davison and L Foster
AGAINST: Councillors Allcock, Armiger, Briggs, Clark, J Davison, England, Evison, T Foster, Glover, Hannigan, Longcake, Marper, Mumby-Croft, Ogg, Poole, Baroness Redfern, Reed, Robinson, Rose, Rowson, C Sherwood, N Sherwood, P Vickers, Waltham and Wells.
ABSTAINING: Nil.
Amendment Lost
(The following members were not present in the council chamber at the time the vote on the amendment was taken – Councillors Ali, Bainbridge, Ellerby, Godfrey, Gosling, Grant, Kirk, Oldfield, O’Sullivan, Perry, and Wilson).
The names of members voting for, against and abstaining from the motion are as follows :–
FOR: Councillors Allcock, Armiger, Briggs, Clark, J Davison, England, Evison, T Foster, Glover, Hannigan, Longcake, Marper, Mumby-Croft, Ogg, Poole, Baroness Redfern, Reed, Robinson, Rose, Rowson, C Sherwood, N Sherwood, P Vickers, Waltham and Wells.
AGAINST: Nil
ABSTAINING: Nil.
Motion Carried
(The following members were not present in the council chamber at the time the vote on the motion was taken – Councillors Ali, Bainbridge, A Davison, Ellerby, L Foster Godfrey, Gosling, Grant, Kirk, Oldfield, O’Sullivan, Perry, and Wilson).
2499 MR MIKE WEDGEWOOD – DRECTOR OF POLICY AND RESOURCES – The Mayor confirmed that this would be the last meeting of the council before Mr Mike Wedgewood, Director of Policy and Resources retired at the end of March 2017. Mike had been a senior manager/officer of the council since its inception in 1995/96, and had previously worked for the former Humberside County Council since 1984.
Although the Leaders of both political groups in their budget speeches and other members had already referred to Mike’s retirement and had thanked him for his professionalism, leadership, and support, together with his excellent management of the council’s finances and governance arrangements, the Mayor on behalf of all members and officers, expressed his sincere thanks to Mike for all his hard work over the years, and wished him well for the future.
Mike Wedgewood responded thanking all members for their kind words. He referred to his progression and career in local government, together with specific areas of work he had managed. Finally, he thanked all members and officers of the council past and present (especially his finance teams), for their support over the years.
Resolved Unanimously – That this Council formally records it sincere thanks to Mr Mike Wedgewood for his professionalism, leadership, management and hard work over the years, and wishes him well for the future.