Minutes of the Extraordinary Meeting Held on Tuesday, 5Th January 2016 at Worksop Town Hall

CABINET

Minutes of the Extraordinary Meeting held on Tuesday, 5th January 2016 at Worksop Town Hall

Present: Councillor S A Greaves (Chair),

Councillors K Dukes, J Evans, J A Leigh, S Scotthorne, S Shaw and J White.

Advisory Member: Councillor H M Brand

Liaison Members: Councillors H Burton, K H Isard, D G Pidwell and T Taylor.

Officers: D Armiger, J Hamilton, M Hill, E Simmonds, R Theakstone, N Taylor and S Wormald.

(The meeting opened at 6.30pm with the Vice-Chair in the Chair as the Chair was absent.)

(The Chair welcomed all to the meeting and read out the Fire Evacuation Procedure. She also enquired as to whether any member of the public or press wished to film/record the meeting or any part thereof; however, there were no members of the public present.)

92. APOLOGIES FOR ABSENCE

There were no apologies for absence.

93. DECLARATIONS OF INTEREST BY MEMBERS AND OFFICERS

(a) Members

There were no Declarations of Interest by Members.

(b) Officers

There were no Declarations of Interest by officers.

SECTION A – ITEMS FOR DISCUSSION IN PUBLIC

Key Decisions

94. REPORT(S) OF THE CABINET MEMBER – CO-OPERATIVES AND CORPORATE SERVICES - COUNCILLOR K DUKES

(a)  Council Tax Reduction Scheme (Bassetlaw District Council) 2016/17 (Key Decision No. 533)

Members’ approval was sought for Bassetlaw District Council’s Council Tax Reduction Scheme for 2016/17 which must be in place by 31st January 2016, to come into effect from 1st April 2016. This will replace the Council Tax Reduction (Bassetlaw District Council) Scheme 2015/16.

The report gave some background to the scheme and outlined: the current scheme 2015/16; funding arrangements; impact of the scheme on collection; future options for 2017/18; and provided a comparator with neighbouring local authorities in respect of % limits for 2015/16.

The full scheme, as amended for uprating and any changes to the prescribed scheme, had been deposited in the Members’ Room.

Options, Risks and Reasons for Recommendations

The Council Tax Reduction Scheme is a local scheme for working age people, set by the billing authority each year, and Members asked that matters affecting the scheme be reported back annually. There is a fine balance between the cost of the scheme, the available funding and the ability of people on low incomes being able to afford to pay their Council Tax. Although there was a change to the main element of the scheme in April 2014 (from a 92% limit to a 90% limit), this has not adversely affected overall collection rates. There is a risk that any further change to the scheme could result in more people falling into arrears and collection costs increasing.

There is no option to change the scheme relating to pensioners as this is a prescribed scheme which protects this group from changes within the Council’s local scheme. Therefore the funding associated with this group (£4.0m out of £7.9m) must be maintained.

It is anticipated that the funding available in the collection fund for 2016/17 will be sufficient to make no changes to the current CTR scheme (as set out in Paragraph 3.6 of the report) except for the annual uprating of allowances and premiums to bring these in line with those of Housing Benefit.

RESOLVED that the Council Tax Reduction (Bassetlaw District Council) Scheme 2016/17 be agreed, to come into effect from 1st April 2016, and referred to the Extraordinary Meeting of Council scheduled for 28th January 2016 for formal approval and adoption, and the following be also agreed:

1.  That there are no changes to the Council Tax Reduction scheme for working age people, as described in Paragraph 3.6 of the report, except for the annual uprating and amendments of allowances and premiums in line with Housing Benefit levels from April 2016.

2.  That the Housing Benefits and Council Tax Reduction (disregard of income) Local Scheme Policy continues to apply within the Council Tax Reduction Scheme for 2016/17 in respect of war disablement and war widows’ pension disregards.

95. REPORT(S) OF THE CABINET MEMBER – FINANCE – COUNCILLOR J EVANS

(a)  Calculation of Council Tax Base 2016/17 (Key Decision No. 531)

Members’ approval was sought for the calculation of the Council’s 2016/17 tax base as required by the Local Government Finance Act 1992 in accordance with the Local Authorities (Calculation of Council Tax Base) (England) (Regulations) 2012.

As detailed in Appendix 1 of the report, the total number of dwellings in Bassetlaw is 51,368 (line 1). Once adjusted for discounts, exemptions, premiums and band reductions, this figure reduces to 46,762.0 (line 14). The total is then converted into the number of Band D equivalents, 38,413.89 (line 16). The figure is finally adjusted for the local Council Tax Reduction scheme (line 18) to produce the tax base figure of 33,917.96 properties (line 19).

A replacement Appendix 2 was tabled at the meeting, which confirmed the figures for North Leverton with Habblesthorpe as 339.48 and 263.88 for North and South Wheatley (these figures had been transposed in the original report.)

The Head of Finance and Property added that this was a positive report with an increase of 534 properties which results in increased income for the Authority.

Options, Risks and Reasons for Recommendations

The Council has a statutory obligation to set a tax base and to notify precepting authorities. To not set a tax base would mean a breach of the statutory requirement and there would be no basis on which to set a Council Tax for 2016/17.

Setting the Council tax base is the first step in determining the Council Tax for 2016/17. The tax base must be determined and notified to other relevant bodies by 31st January each year.

RESOLVED that the following be agreed and referred to the Extraordinary Meeting of Council scheduled for 28th January 2016 for formal approval:

1.  The Council tax base for the year 2016/17 shall be 33,079.77 Band D properties, in line with the approval of the Council Tax Reduction Scheme.

2.  The calculations, as set out in the amended Appendix 1 of the report, be used for the Council tax base calculation for the District for 2016/17, and officers be instructed to notify this figure to the major precepting authorities.

3.  The calculations, as set out in Appendix 2 of the report, figures which are tax bases for parts of the area, be agreed and officers be instructed to notify the 2016/17 tax base to Town and Parish Councils, Parish Meetings and Charter Trustees as soon as is practicable.

(b)  Business Rates Budget 2016/17 (Key Decision No. 532)

Members’ approval was sought to set the Council’s estimated net yield from local business rates for 2016/17, which will be used to calculate Bassetlaw’s share for the purpose of budget setting in the General Fund Revenue Budget 2016/17 to 2018/19 which will be presented to Cabinet on 11th February 2016.

The report outlined the methodology, pooling and the calculation used in accordance with Part 2 of the Non-Domestic Rating (Rates Retention) Regulations 2013 which places a statutory duty on all billing authorities. The calculations must be notified to the Secretary of State and any relevant precepting authorities by 31st January each year via the NNDR1 return.

As reported in Appendix 1 of the report, line 25 provides the officers’ latest forecast of business rates to be collected in 2016/17 of £55.7m, with Bassetlaw’s share before taking account of the tariff payment being £22.7m. The provisional Local Government Finance Settlement has set the tariff at (£15.4m) giving a net benefit to Bassetlaw of £7.3m.

The Head of Finance and Property explained the term ‘hereditaments’, from which approximately 45% of Bassetlaw’s business rate income is derived. These are very large properties and include the four power stations in the District, Bassetlaw Hospital, B&Q, Wilkinsons, etc.

Options, Risks and Reasons for Recommendations

The figures reported in the Appendix to the report represent the best estimates of the likely retained business rates forecast for 2016/17 and associated surplus at the end of 2015/16. The final NNDR1 return and any associated changes to this report will be reported to Members as part of the referral to the Extraordinary Council meeting on 28th January 2016.

(Councillor S A Greaves joined the meeting during consideration of this item and took the Chair.)

RESOLVED that:

1.  The provisional calculation of the NNDR1 return for 2016/17 be approved, as follows:

·  the net yield from local business rates of £48.390m;

·  the cost of collection allowance of £0.174m;

·  the amounts retained in respect of renewable energy schemes of £0.460m;

·  the declared surplus at the end of 2015/16 of £6.699m.

2.  The report be referred to the Extraordinary Meeting of Council scheduled for 28th January 2016 where the final figures from the NNDR1 return for 2016/17 will be considered.

(c)  Housing Capital Programme 2016/17 to 2020/21 (Key Decision No. 534)

Members’ approval was sought for the Housing Capital Programme for 2016/17 to 2020/21, as appended to the report.

The report gave some background to the programme and outlined proposals for the four elements of the five-year plan, namely: Major Improvements; Green Energy; Decent Neighbourhoods; and Homes for Life.

Other schemes, including Airey Housing at Harworth and the redevelopment of Abbey Grove, Worksop, were listed in the report at Paragraph 3.13. The report also discussed: funding; capital receipts; the Right To Buy scheme; and affordability.

Options, Risks and Reasons for Recommendations

The Chancellor’s announcement regarding a 1% rent reduction each year for four years has effectively meant a 3% swing (as the business plan projected a 2% increase in rent each year). This has significantly impacted on the business plan in that £30.2m of rent has been lost as result of this decision over the next ten-year period.

Members can decide what schemes to include or exclude, and the timing of those commitments. The summary provided under the section ‘Affordability’ sets out the full situation. In coming to a view on what priorities Members want to establish, consideration must be given to the overall limit on investment set by the Overall Borrowing Limit of £105.4m, coupled with the impact that long term borrowing has on the affordability within the Housing Revenue Account.

The year 2013/14 saw the end of Government funding for the Decent Homes programme, but for Bassetlaw, the legacy and further commitment to the programme will be ongoing.

What should be avoided at all costs is a full commitment right up to the Overall Borrowing Limit of £105.4m. The Council will always need some room for manoeuvre and for this reason only full approval for the 2016/17 programme is being sought at this stage. Following years’ capital programmes are therefore only being approved on an indicative basis and will be confirmed in succeeding financial years.

The Government-prescribed reduction in rent has had a significant detrimental impact on the sustainability of the HRA Business Plan, and caution should be exercised when considering any more proposals for new build in the medium term up to 2020.

The Head of Finance and Property reiterated that the loss of £30.2m of rent over the next ten-year period has forced some difficult decisions to be made; although, the 30-year plan is still sustainable as it is. It was noted that some 250 houses could have been built in the District if this sum had not been lost.

Members discussed this, together with other issues including: the re-allocation of Council properties which have already been adapted for disabled tenants to those with similar needs, wherever possible; and the recent announcement by central Government for local authorities to work in partnership with private developers to deliver new homes on brownfield land.

RESOLVED that the Capital Programme for 2016/17 and the indicative programmes for 2017/18 to 2020/21, as set out in Appendix 1 of the report, be agreed and referred to the Extraordinary Meeting of Council scheduled for 28th January 2016 for approval.

(d)  Housing Revenue Account Budget 2016/17 and Future Years to 2018/19 (Key Decision No. 535)

Members’ approval was sought for the Housing Revenue Account (HRA) budget for 2016/17 and provided with indicative figures for 2017/18 and 2018/19, which will be used to set the budget and rent levels for 2016/17.

The HRA is a single service account which is funded by tenants’ rent income for the social housing and the landlord functions provided by A1 Housing. The new ‘self-financing regime for housing’ which become effective in April 2012 means that expenditure now has to be entirely supported from rental and other income. The main tool is the 30-year business plan referred to in the previous report.

The report outlined: the 2016/17 HRA Revenue Budget; the impact of the 1% rent reduction; repairs and maintenance; pensions provisions; depreciation; Value For Money; the A1 Housing Management Fee; provision for bad debts; treasury management; and reserves, with the minimum working balance being retained at £1.3m.

Members discussed: the lack of savings targets for A1 Housing; synergies and efficiencies through shared services; opportunities for new ways of working; capacity issues for a smaller organisation; debt management; and the roll-out of Universal Credit.

The Leader of the Council commended officers for their hard work, particularly those who had “stepped up” to replace individuals who had left the Authority.