Agenda and minutes

To receive any apologies for absence.

Apologies for absence were received from Councillors John Currall, David Sims, Malcolm Waters, Elliot Prentice, Steven North, Russell Roberts, Joseph Smyth, Jan O’Hara, Ian Jelley, Kevin Watt, Kirk Harrison, Jonathan Ekins, Simon Rielly, Peter McEwan, Alison Dalziel, Emily Fedorowycz, Martin Griffiths.

Members to declare any interest as appropriate in respect of items to be considered at the meeting.

Councillor Jean Addison declared a person and prejudicial interest in relation to the proposed Labour Group Amendments to the General Fund Budget report, namely the amendment relating to the Pen Green Maintained Nursery.

Councillor Graham Lawman declared a personal and prejudicial interest in relation to any discussion specifically regarding Croyland Primary School of which he was a Governor.

Councillor Harriet Pentland declared a personal interest in relation to the reports before Council, as items for discussion may have arisen in her place of work, however stressed that she would be considering each item on the merits of the report and subsequent debate.

To receive any announcements from the Chair.

Members attention was drawn to the Meeting Procedure Rules applicable to the Budget discussions, approved by Full Council at its meeting on the 26^th January 2023 and circulated with the agenda.

In order to ensure that all of the business of the meeting was completed, it was MOVED by Councillor Jim Hakewill and SECONDED by Councillor John McGhee that the Guillotine (Procedure Rule 10.1) be suspended until conclusion of all of the business on the agenda.

RESOLVED that: -

(i)               The Guillotine (Procedure Rule 10.1) be suspended until the conclusion of the business stipulated on the published agenda.

    (i)        Public Statements

  (ii)        Public Questions

The Council had received requests from five members of the public to address the meeting, with reference to the General Fund Budget report, specifically in relation to Pen Green Maintained Nursery. Dr M Whalley CBE, Ms A Prodger, Ms T Gallagher, Mr A Cooper & Ms D Gallagher addressed Council.

The report before Council set out the final revenue budget (2023-24) and Medium-Term Financial Plan for North Northamptonshire Council. The draft budget proposals were considered by the Executive on 22^nd December 2022 along with an Addendum to the main budget report which provided an update to Members following the provisional Local Government Finance Settlement, which was published on 19th December 2022, following a written statement from the Secretary of State for Levelling Up, Housing and Communities.

         The budget consultation period commenced on 22^nd December 2022 and ended on 27^th January 2023. The draft budgets had been subject to scrutiny by the Finance and Resources Scrutiny Committee. The consultation provided residents, local partners and other stakeholders the opportunity to review the budget proposals and provide feedback during the five-week consultation period.

         The budget was further updated for the latest position and presented to Executive at its meeting on 9^th February, for approval and recommendation on to Council.

         The Final Local Government Settlement was announced on 6^th February 2023 (after the report to Executive on 9^th February had been published) and had resulted in additional funding of £95k; the Services Grant had been increased by £90k and the Rural Delivery Services Grant had been increased by £5k. To maintain a balanced position the corporate contingency budget had been increased by £95k – the final budget proposals included this change.

         The report set out the revenue budget for 2023-24 and the Medium-Term Financial Plan for North Northamptonshire Council, including the proposed Council Tax level for 2023-24, for approval at this meeting.

         The Revenue Budget 2023-24 and Medium-Term Financial Plan formed part of a full suite of budget reports being presented to the Council at the meeting. These included the Housing Revenue Account Budget 2023-24, the Capital Strategy, Capital Programme, and the Treasury Management Strategy. These reports together would provide a framework for revenue and capital planning for 2023-24 and into the medium term. The Council Tax Resolution for 2023-24 was included within the report.

         The main headline assumptions within the draft budget proposals were:

·              A balanced budget for 2023-24.

·              Further investment of circa £57m to both protect vital services and invest in service change and improvement.  This included requirements set out within the 2022-23 medium term financial plan that remained in place for 2023-24.  The overall investment allowed for demand and cost increases including Home to School Transport, Adult Social Care and the Children’s Trust.  The Trust was also seeking further one-off investment of £2.2m county wide (c£1m from North Northamptonshire) to help deliver further service improvements and generate efficiencies.

·              These pressures were offset, in part, by savings, efficiencies and income generation across Council Services of £17m which included new direct service grants.  This figure also included the continuation of savings already included as part of the 2022-23 medium term financial plan and which remained deliverable. The remainder of the resource requirement had been met through improved business rates income, council tax income and Government grants.

·              The  ...  view the full minutes text for item C/206

The Government introduced a rent setting formula which covered a 5-year period (2020/21 to 2024/25). The rent setting formula was based on the Consumer Price Index (CPI) for September (of the previous financial year) + 1%. This was introduced following four years of consecutive rent reductions of 1%.

         When the current rent policy was set in 2019, inflation was forecast to be around 2% in 2022 and 2023. In July 2022 CPI was 10.1% and DLUHC (Department for Levelling Up Housing Communities) issued a consultation on the basis that if CPI were to remain at or above this level in September 2022, this would permit social housing rent increases from 1 April 2023 to 31 March 2024 of 11.1% or more. CPI in September was at the same level as in July 2022 which would have resulted in rent increases of 11.1% had government continued with the current rent setting formula.

         The increase in inflation was placing considerable pressure on many households, including those living in social housing. Providers of social housing had to consider both the pressures facing the tenants and pressures facing the financial sustainability of the HRA, when looking at setting rent levels for 2023/24.

         In the face of these exceptional challenges, the Government issued a consultation to make a temporary amendment to the CPI+1% policy for 2023/24. This new Direction would require the Regulator to amend its Rent Standard so that the current CPI+1% limit on annual rent increases would be subject to a ceiling from 1 April 2023 to 31 March 2024. By law, the Government were required to consult on a draft direction, and they issued a consultation on 31st August 2022.

         The consultation sought views on having an upper limit on the maximum permitted annual rent increase a Registered Provider is allowed to implement and the consultation considered three options at which rents could be capped these were 3%, 5% and 7%.  

         The Autumn Budget was made on 17th November 2022 and the Chancellor announced that Social Housing Rents would be capped at 7% for the financial year 2023/24.

         To help maintain and protect levels of service provision and to continue investment into the housing stock the Council consulted on an average rent increase of 7% for 2023/24. Both the Corby and Kettering Neighbourhood Accounts had increased rents in line with the maximum amount permissible in previous years and this approach continued with this strategy. Taking this into account the draft Neighbourhood Accounts showed a balanced position for 2023/24.

         The scrutiny process for the Draft HRA Budget Proposals was undertaken by the Finance & Resources Committee at a meeting on the 23rd January. This was reported to the Finance & Resources Committee meeting on 30th January for ease of reference Appendix D provided a summary of comments made from the scrutiny meeting.

         The draft HRA Budget had been discussed and debated with the TAP over a series of 3 meetings (as detailed in Section 1.4). The final budgets reflected a rental increase of 7% which  ...  view the full minutes text for item C/207

         The report before Council set out the baseline Capital Programme for 2023-24 and the indicative Medium-Term Financial Plan for North Northamptonshire Council. The draft budget proposals were considered by the Executive on 22^nd December 2022.

         The budget consultation period commenced on 22^nd December 2022 and ended on 27th January 2023. The draft budgets had been subject to scrutiny by the Finance and Resources Scrutiny Committee. The consultation provided residents, local partners and other stakeholders the opportunity to review the budget proposals and provide feedback during the five-week consultation period.  The final budget proposals were reported to the Executive at their meeting on 9^th February 2023.

         The report set out the baseline Capital Programme and identified the key factors and challenges influencing the development of North Northamptonshire Council’s commitments for 2023-24 and beyond.

         The report presented the General Fund Capital Programme for 2023-26, the Baseline Development Pool and the Housing Revenue Account (HRA) Capital Programme 2023-26.

         The key principles underpinning the current Capital programme were set out in the report and were designed to support the delivery of the capital programme which would be affordable and sustainable.

         The total capital programme was £109.1m, consisting of the General Fund baseline programme of £65.4m and HRA baseline programme totally £43.7m.  There was also a Development Pool of £190m which included schemes awaiting formal business cases.

Councillor Lloyd Bunday MOVED the report’s recommendations. These were SECONDED by Councillor Bert Jackson.

(Councillor Lee left the meeting at this point.)

The following amendment to the report received from the Labour Group was MOVED by Councillor William Colquhoun and SECONDED by Councillor Matt Keane: -

We would like to use £2.5m (to cover the backlog) paid from the capital receipts to assist with North Northamptonshire’s pothole issues. On to many occasions some pot holes are patched up and receive multiple repairs. We want a get it right first-time policy to prevent repeat jobs and keep our roads in better conditions for taxpayers. 

In introducing the amendment, Councillor Colquhoun felt it was important for the Council to provide additional resource to keeping local highways maintained and that investment now would result in savings in the future and would be appreciated by local residents.

Following debate a vote was taken on the amendment. The amendment fell.

Councillor Hakewill on behalf of the Green Alliance Group provided a response to the budget proposals within the report.

Following debate of the substantive motion, a vote was conducted.

RESOLVED that: -

a)               the General Fund Capital Programme 2023-26 and HRA Capital Programme 2023-26 be approved.

b)               the Capital Strategy as set out in Appendix D for 2023-24 be approved.

c)               delegated authority be granted 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 1st April 2023.