Agenda, decisions and minutes

No apologies for absence were received.

RESOLVED that: The Executive agreed the minutes of the meeting held on 22^nd December 2022 as a true and accurate record of the meeting.

A personal interest was declared by Cllr Harriet Pentland relating to a number of agenda items having attended meetings where the items in question had previously been discussed.

A personal interest was declared by Cllr Graham Lawman relating to Agenda Item 9, specifically the Development Pool item regarding the proposed expansion of Sir Christopher Hatton Secondary School.

The Chair, Councillor Jason Smithers reported that there were requests to address the meeting as set out below:

The Chair, Cllr Jason Smithers invited the Chair of the Finance and Resources Scrutiny Committee (F&RSC), Cllr Mark Pengelly to present the committee’s budget consultation submission following the conclusion of the process to scrutinise the Council’s draft budget for 2023/24.

Cllr Pengelly thanked all those who had taken part in the scrutiny process, noting that a significant period of time had been spent examining in-year spend and service performance for 2022/23 prior to undertaking more detailed scrutiny work for the 2023/24 budget. Pressures and uncertainties involved in the budget setting process were highlighted, with a number of factors such New Homes Bonus, Business Rates and government funding referenced.

Cllr Pengelly thanked officers and Executive members for their assistance in providing detailed responses to questions raised by committee members during the scrutiny process. It was heard that obtaining relevant details from Northamptonshire Children’s Trust to allow for effective scrutiny had been difficult, and it was critical this information was made available in future as the current overspend level for the trust was unsustainable.

Cllr Pengelly noted the concerns of Scrutiny in relation to home-to-school transport costs, although the recent disaggregation of the service would allow a greater level of control over these costs. He requested that this topic be the subject of a further review by the F&RSC in six months’ time.

Cllr Pengelly made reference to the following specific areas of interest during the scrutiny process:

·        Children’s social care and out of county placements

·        Special educational needs and disabilities (SEND) assessment timescales

·        That revised Fees and Charges to be circulated to councillors

·        Legacy council proposed income (crematoria, sports centres)

·        That the Council’s new contract with Kier be reviewed to ensure value for money

·        Harmonisation of car-parking charges across North Northamptonshire

·        The existing budget gap for Enabling Services

·        Audit fee increases

·        Reliance on agency staff, staff numbers and vacancies

·        Adult social care provision

·        The current housing repairs backlog

·        Temporary accommodation availability

Councillor Pengelly noted that a significant amount of work had been undertaken during the scrutiny process and requested that the Executive take on board the comments raised by F&RSC in order to build a better council for all involved.

The Chair, Cllr Jason Smithers thanked Cllr Pengelly and the Finance and Resources Scrutiny Committee members for the sterling work they had undertaken in supporting the Executive through their work and to ensure value for money for the Council.

Cllr Wendy Brackenbury, as Chair of the Scrutiny Commission was invited to address the meeting. Cllr Brackenbury thanked all members of the F&RSC and all the officers involved in the budget scrutiny process.

Cllr Scott Edwards made reference to the Children’s Trust overspend and noted that the Council was doing everything possible to obtain the information required to hold the Trust to account. Cllr Edwards also noted that out of area placements for children in care were not beneficial for the children involved and were not financially viable. In addition, work was ongoing to improve the Council’s  ...  view the full minutes text for item 379.

RESOLVED

That the Executive:

i)      Noted the work undertaken by the Scrutiny Task and Finish Group as instructed by the Finance and Resources Scrutiny Committee.

ii)     Discussed and provided feedback on the “Maintained Nursery Funding Review” report attached at Appendix A to the report.

iii)   Noted the recommendations and comments in the report.

The Chair, Cllr Jason Smithers invited Cllr John McGhee to address the Executive. Cllr McGhee noted the recommendation of the Scrutiny Task and Finish Group that officers should continue to work with Pen Green Nursery to support them in managing their funding gap moving forward by identifying internal and external funding sources. Cllr McGhee queried what meetings had taken place to date in this regard.

The Chair then invited Cllr Dorothy Maxwell to address the Executive. Cllr Maxwell noted that Pen Green was in receipt of greater funding levels from the Council than the other three maintained nurseries in North Northamptonshire and stated that all the maintained nurseries should be treated equally. It was heard that all children should receive access to good early years provision, and Cllr Maxwell hoped that such provision could be extended to other towns in the Council area, with specific reference made to Rushden.

The Chair then invited the Chair of the Finance and Resources Scrutiny Committee (F&RSC), Cllr Mark Pengelly to present the report of the Maintained Nursery Funding Review along with feedback from the Finance and Resources Committee.

Cllr Pengelly thanks all those elected members and officers that had been involved in the review process which had seen significant work undertaken including in-person visits to all four maintained nursery sites and meetings held with governors, head teachers, officers and the Schools Forum. As well as the above, a full audit report for all the nurseries had provided the Scrutiny Task and Finish group with the information required to form a view regarding the funding of maintained nurseries.

It was heard that both the Finance and Resources Scrutiny Committee and the Scrutiny Task and Finish Group supported the Executive’s decision for 2022/23 to adopt a participation-based rate of funding for the Maintained Nurseries Supplement of the Dedicated Schools Grant. However, it was noted that a decision for future years was to be made by the Executive.

The Chair thanked Cllr Pengelly and those involved in the review, noting the challenging nature of the task and the level of work involved. Cllr Smithers stated that he was reassured that the conclusion was to support the Executive’s recommendation in regard to funding.

The Chair of the Scrutiny Commission, Cllr Wendy Brackenbury spoke to thank the Finance and Resources Scrutiny Committee and those who had supported the review for a positive piece of scrutiny work, with the final recommendations being fair for families across North Northamptonshire and ensuring the ongoing sustainability of all four nurseries.

Cllr Scott Edwards, Executive Member for Children, Education and Skills thanked the members of the Task and Finish Group for their work and their support of the Executive recommendations to ensure an open and transparent way of funding all four maintained nurseries. In response to Cllr McGhee, Cllr Edwards stated that a full list of meetings with Pen Green could be provided. In response to Cllr Maxwell’s comment regarding equal funding, it was noted that grants were based on participation levels  ...  view the full minutes text for item 380.

RESOLVED

KEY DECISION

That the Executive endorsed the contents of the report and recommended the budget proposals on to Council for approval.  This included:

a)   the 2023-24 revenue budget for approval and adoption as set out in this report, which sets:

i.       A budget requirement of £691.458m including Dedicated Schools Grant of £354.963m resulting in a net revenue budget requirement of £336.495m as set out in Appendix A of the report.

ii.      A total Council Tax requirement for the Council’s own purposes of £189.419m as contained in paragraph 5.27.

iii.     An average Band D Council Tax of £1,657.51 for North Northamptonshire Council, representing a 2.99% increase in the ‘core’ Council Tax and a further 2% for the Adult Social Care Precept, noting that a separate Council Tax Resolution Report will be presented to Full Council.

iv.     The detailed proposals of savings, pressures and income generation for 2023-24 as set out within the report and Appendix B of the report.

v.      The provisional dedicated schools grant budget of £354.963m for 2023-24, as detailed in Appendix C of the report, and summarised in paragraphs 5.47 – 5.58.

vi.     The draft planned use of, contribution to, and movement in, reserves as identified in paragraph 5.60 and section 9 subject to the final call on reserves after any changes are required to account for final charges etc.

vii.   The corporate budget requirements as set out in paragraph 8.1, including a contingency sum of £3.651m as set out in paragraph 8.2.

viii.  The Treasury Management Strategy for 2023-24 as set out in Appendix H of the report, including the Authorised Borrowing Limit of £798m, and to note a further update to the Strategy will be provided once the disaggregation of Northamptonshire County Council’s Balance Sheet has been finalised, subject to the External Audit of the former County Council’s accounts.

ix.     That Council delegate authority to the Executive Member for Finance and Transformation in consultation with the Executive Director of Finance and Performance (Section 151 Officer) to agree any necessary variations to the budget prior to 1^st April 2023.

x.      That Council delegate authority to the Executive Member for Finance and Transformation in consultation with the Executive Director of Finance and Performance (Section 151 Officer) to agree the use of the following reserves which will provide the flexibility to manage the overall budget during 2023-24.

•        Social Care Reserve

•        Transformation Reserve

•        Public Health Reserve

•        Waste Management Reserve

•      General Risk Reserve

b)   the forecast financial position for 2024-25 and 2025-26, noting that this will be reviewed as further information becomes available and updated as part of the budget process for 2024-25 onwards.

That the Executive:

a)    Noted that the financial position has been based on the Provisional Local Government Finance Settlement announced on 19^th December 2022 together with any further announcements as at the date of the publication of this report;

b)    Noted that the Final Local Government Finance Settlement is yet to be published and, therefore, some figures may be  ...  view the full decision text for item 381.

The Chair, Cllr Jason Smithers invited Cllr John McGhee to address the Executive. Cllr McGhee queried whether the finances set aside for a 4% pay increase for staff would be sufficient and noted that additional finances may be required and asked the Executive to re-examine this figure. Cllr McGhee also referenced the staff vacancy rate within social care and noted the high cost of utilising agency staff. 

The Chair thanked Cllr McGhee for his contribution and noted that setting a balanced budget going forward would be extremely challenging, however with the Council’s very experienced officer team it would be achievable.

The Chair then invited the Executive Member for Finance and Transformation, Cllr Lloyd Bunday to introduce a report that set out the final revenue budget  2023-24) and Medium-Term Financial Plan for North Northamptonshire Council. The draft budget proposals had been considered by the Executive on 22^nd December 2022 along with an addendum to the main budget report which provided an update following the provisional Local Government Finance Settlement, published on 19^th December 2022. The settlement set out the funding for individual councils following the Autumn Statement announced earlier on 17^th November 2022. The final settlement figure announced had seen a £95,000 increase in funding and it was proposed to add this amount to the Council’s contingency fund for 2023/24.

The meeting noted that the draft budget had gone through a consultation period commencing on 22^nd December 2022 and ending on 27^th January 2023. The consultation had provided residents, local partners and other stakeholders with the opportunity to review the budget proposals and provide feedback during the five-week consultation period. A total of 449 responses had been received and Cllr Bunday thanked those who had taken the time to respond. The draft budgets had also been subject to extensive scrutiny by the Finance and Resources Scrutiny Committee.

The report set out the revenue budget for 2022-23 and the Medium-Term Financial Plan for North Northamptonshire Council, including the proposed Council Tax level for 2023-2024 with the Executive requested to recommend these proposals to Council for approval at its meeting on 23^rd February 2023 having considered the results of the consultation, and the deliberations of the Finance and Resources Scrutiny Committee.

The meeting heard that during September 2022 each directorate had entered into Capital Programme challenge sessions, reviewing capital plans and aspirations to enable the Council to provide a better forecast of planned borrowing and serviceability of funding for the general fund going forward. Following these sessions, each directorate had embarked upon a budget challenge session with each one offering economies, savings and sharing the challenges envisaged over the next year and into the medium term. Forecasts for this were based upon the results for the financial year 2021/22 and the forecast as at Period 6 of 2022/2023. A further Scrutiny review for the current year also took place in November 2022 for each directorate.

Consequently, it was reported that the draft budget had been the  ...  view the full minutes text for item 381.

RESOLVED

KEY DECISION

That the Executive recommended to Full Council the following:-

a.      The draft 2023/24 Housing Revenue Account Budgets consisting of the Corby Neighbourhood Account and the Kettering Neighbourhood Account as set out in Appendix A of the report.

b.      An increase in dwelling rents for 2023/24 of 7% which adheres to the Department for Levelling Up, Housing and Communities (DLUHC) amended Policy statement on rents for social housing for both the Corby Neighbourhood Account and the Kettering Neighbourhood Account.

c.      The draft Housing Revenue Account Medium Term Financial Plan consisting of the Corby Neighbourhood Account and the Kettering Neighbourhood Account, for 2024/25 to 2027/28 as set out in Appendix B of the report.

That the Executive

d.      Noted the forecast reserves for the Corby Neighbourhood Account and the Kettering Neighbourhood Account up to 2027/28 as set out in Appendix C of the report.

Reason for Recommendations: To ensure that the Council complies with its Constitution in setting the budget for North Northamptonshire.

Alternative Options Considered – The HRA Budgets have been subject to a formal budget consultation and comments from the consultation have been considered as part of this process.

The Chair, Cllr Jason Smithers invited Cllr Lyn Buckingham to address the Executive. Cllr Buckingham spoke to seek clarification on specific elements of the budget, querying why leaseholders were not mentioned as part of the Housing Revenue Account (HRA). Cllr Buckingham also referenced services charges for Corby tenants not being increased, queried what was involved with the Hidden Homes project and why the Decent Homes project was only undertaken in Corby and not Kettering.

The Chair then invited the Executive Member for Finance and Transformation, Cllr Lloyd Bunday to introduce the report, the purpose of which was to present the proposed housing revenue budget and medium-term financial plan to Executive. Cllr Bunday responded to Cllr Buckingham to note that leaseholder income was included within the HRA. Cllr Bunday clarified that non-increases in service charges for Corby tenants were historic and not planned for the future as suggested.

Cllr Bunday noted that Council tenants had been consulted on the proposals before members through a targeted consultation via their respective Tenant Advisory Panels.

Cllr Bunday further noted that the HRA did not directly impact on the Council’s wider General Fund budget or on the level of Council Tax, with income to the HRA primarily received through the rents and other charges paid by tenants and leaseholders. The Council was required to run a single HRA, but for a short period continued to operate two neighbourhood accounts to reflect stock holding from the two legacy councils of Kettering and Corby.

The Council had commenced work on consolidating these two accounts into a single HRA, however this required a 30-year business plan that would be informed by the Housing Strategy for North Northamptonshire. This strategy was currently in development and due to be reported to members during 2023/24.

The meeting noted that the HRA formed a ring-fenced account within the Council for the income and expenditure associated with its housing stock. The Council owned 8160 properties ranging from one to four bed houses, bungalows and flats, with a further 893 leasehold properties. This amounted to a projected annual rental income in excess of £35m.

Details of historic Government guidelines regarding rent increases were provided to the meeting, who noted that the current formula was CPI plus 1%. CPI in July 2022 had been 10.1% meaning that rent increases for April 2023 would be 11.1%, however, after consultation it had been announced by the Chancellor in September 2022 that social housing rent increases for 2023/24 would be capped at 7%. In line with previous years, the proposed increase in rent for both Neighbourhood Accounts would be the maximum permitted helping to maintain and protect levels of service. Taking into account this proposed increase, the draft Neighbourhood Accounts for 2023/24 showed a balanced position.

The medium-term position showed the Corby HRA in deficit and the Kettering account in surplus, resulting from the structuring of the self-financing of loans associated with the housing stock. The medium-term position also assumed an annual rent increase of 4% going forward.  ...  view the full minutes text for item 382.

RESOLVED

KEY DECISION

That the Executive approved for recommendation to Council:

a)    The General Fund Capital Programme 2023-26 and HRA Capital Programme 2023-26.

b)    That Council delegate authority to the Executive Member for Finance and Transformation in consultation with the Executive Director of Finance and Performance (Section 151 Officer) to agree any necessary variations to the capital budget prior to 1^st April 2023.

That the Executive noted:                       

a)    the Development Pool 2023-26 and that schemes within the pool will be subject to further approval prior to inclusion in the programme.

Reason for Recommendations:To ensure that the Council complies with its Constitution and legislative requirements in setting the budget for North Northamptonshire Council for 2023-24.

Alternative Options Considered - This is the start of the formal budget consultation for the Capital Programme and any comments from the consultation will be considered as part of this process.

The Chair invited the Executive Member for Finance and Transformation, Cllr Lloyd Bunday to introduce a report that set out the baseline Capital Programme for 2023-24 and the indicative Medium-Term Financial Plan for North Northamptonshire Council.

It was heard that the programme had been considered by the Executive on 22^nd December 2022 and became part of the wider budget proposal consulted upon in the following weeks. Details of the consultation response were provided as part of the report.

During September 2022 each directorate entered into capital programme challenge sessions, with each required to revisit capital plans and aspirations for the coming years, with the desired outcome to review each one as to its deliverability and profiling. Projects were re-profiled or deferred into the development pool until further business cases could be considered as part of a wider North Northamptonshire scheme. This exercise provided a better forecast of planned borrowing and serviceability of funding for the general fund going forward. As a result of these sessions £43.8m of underspend and slippage from previous years has been reviewed or reprofiled into the capital programme or development pool of the General Fund for 2023/24.

The report set out the key principles underpinning the current Capital Programme to ensure that the Council delivered a capital programme that was affordable and sustainable. Member’s attention was also drawn to the Treasury Management Strategy for 2023/24.

The meeting heard that the total Capital Programme amounted to £109.1m, consisting of the General Fund of £65.4m and the HRA Capital Programme totalling £43.7m across Kettering and Corby housing stock, together with significant investment of nearly £17.5m proposed for the Housing Development and New Build Programmes. There was also a Development Pool of £190.2m which included schemes awaiting formal business cases.

The Minimum Revenue Provision (MRP) that reflected the minimum amount a council must charge to the revenue budget each year to set aside a provision for repaying external borrowing was highlighted with members noting an increase in the MRP provision of £1.549m for 2023-24 to provide for this.

Members further noted that the disaggregation of capital assets, balances and debt were still to be finalised and subject to audit of the 2020-21 financial accounts for the former Northamptonshire County Council and Corby Borough Council and this may have implications for the current assumptions. The report also set out the policy of the Public Works Loan Board with regard to future funding.

Cllrs Brackenbury and Pentland spoke to welcome the ambitious projects within the development pool, noting that robust business cases were being developed to allow for external funding bids and the number of sustainable and environmental focussed projects due to come forward.

The Chair concluded the discussion by offering his thanks to the Finance Team for their efforts and support in producing the budget before members.

RESOLVED

KEY DECISION

That the Executive approved for recommendation to Council:

a)    The General Fund Capital Programme 2023-26 and HRA Capital Programme 2023-26.

b)    That Council delegate authority to the Executive Member  ...  view the full minutes text for item 383.

RESOLVED

The Chair invited Cllr David Brackenbury, Executive Member for Growth and Regeneration to introduce a report that sought approval to formally make the Barnwell Neighbourhood Plan as part of the statutory development plan, following an independent examination and positive referendum result.

Cllr Brackenbury offered congratulations to all those involved in the process of getting the neighbourhood plan to this stage, and commended the work involved in its production. Cllr Brackenbury noted that North Northamptonshire now benefitted from a suite of such plans across the area, and this was to be welcomed.

RESOLVED