Agenda and minutes
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Contact: Andrew Randell Email: a.randell@somersetwestandtaunton.gov.uk Marcus Prouse Email: m.prouse@somersetwestandtaunton.gov.uk
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Apologies
To receive any apologies for absence. Additional documents: Minutes: No apologies were received. |
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To approve the minutes of the previous meeting of the Committee held on 2 December 2020 and 6 January 2021. Additional documents: Minutes: (Minutes of the meeting of the Scrutiny Committee held on 2nd December 2020 and 6 January 2021 circulated with the agenda)
Resolved that the minutes of the Scrutiny Committee held on 2nd December 2020 and 6 January 2021, following minor amendments be considered at the next meeting. |
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Declarations of Interest
To receive and note any declarations of disclosable pecuniary or prejudicial or personal interests in respect of any matters included on the agenda for consideration at this meeting.
(The personal interests of Councillors and Clerks of Somerset County Council, Town or Parish Councils and other Local Authorities will automatically be recorded in the minutes.) Additional documents: Minutes: Members present at the meeting declared the following personal interests in their capacity as a Councillor or Clerk of a County, Town or Parish Council or any other Local Authority:-
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Public Participation
The Chair to advise the Committee of any items on which members of the public have requested to speak and advise those members of the public present of the details of the Council’s public participation scheme.
For those members of the public who have submitted any questions or statements, please note, a three minute time limit applies to each speaker and you will be asked to speak before Councillors debate the issue.
Temporary measures during the Coronavirus Pandemic Due to the Government guidance on measures to reduce the transmission of coronavirus (COVID-19), we will holding meetings in a virtual manner which will be live webcast on our website. Members of the public will still be able to register to speak and ask questions, which will then be read out by the Governance and Democracy Case Manager during Public Question Time and will either be answered by the Chair of the Committee, or the relevant Portfolio Holder, or be followed up with a written response. Additional documents: Minutes: No members of the public had requested to speak on any item on the agenda. |
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Scrutiny Committee Forward Plan
To receive items and review the Forward Plan. Additional documents: Minutes: (Copy of the Scrutiny Committee Forward Plan, circulated with the agenda).
Councillors were reminded that if they had an item they wanted to add to the agenda, that they should send their requests to the Governance Team.
Resolved that the Scrutiny Committee Forward Plan be considered at the meeting scheduled on 3rd February 2021. |
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Full Council Forward Plan
Additional documents: Minutes: (Copy of the Full Council Forward Plan, circulated with the agenda).
Councillors were reminded that if they had an item they wanted to add to the agenda, that they should send their requests to the Governance Team.
Resolved that the Full Council Forward Plan be considered at the meeting scheduled on 3rd February 2021. |
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Executive Forward Plan
Additional documents: Minutes: (Copy of the Executive Forward Plan, circulated with the agenda).
Councillors were reminded that if they had an item they wanted to add to the agenda, that they should send their requests to the Governance Team.
Resolved that Executive Forward Plan be considered at the meeting scheduled on 3rd February 2021.
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Additional documents: Minutes: The report updated Members on the proposed Housing Revenue Account (HRA) Annual Revenue Budget and Capital Programme for 2021/22, the proposed Rent Setting for 2021/22 and an update on the 30-Year Business Plan Review. The proposals included in the report enabled the Council to set a balanced budget for the HRA for 2021/22.
The HRA is a ring fenced account used to manage the Council’s housing stock of some 5,700 properties, with the Council acting as the Landlord.
In April 2012, under the Localism Act 2011, the HRA (under the administration of Taunton Deane Borough Council (TDBC)) moved away from a national subsidy system (which required an annual payment from the HRA to Central Government) to become ‘self-financing’. This enabled the Council to retain all rental income to meet the costs of managing and maintaining the housing stock, as well as meeting the interest payments and repayment of debt. As part of the self-financing agreement, a one-off payment of £85.198m was made to Government.
In order to manage the freedoms gained by the HRA through self-financing, a new 30- Year Business Plan (2012-2042) was introduced. This set out the Council’s overall aims and objectives for Housing Services, as well as laying out plans to manage the increased risks and opportunities.
The HRA Business Plan has been reviewed and updated annually since 2012, with a full review undertaken in 2016 and 2020 in response to the changes in national policies and local aspiration. The 30-Year Business Plan has again been reviewed as part of the 2021/22 budget setting cycle and the key changes / updates to the plan are described in section 5 below.
The HRA continued to face a number of risks and issues, many of which could be significant but the actual financial impact is not yet known. These risks and issues are more significant for us as we proactively drive forward substantial investment in social housing development, with both existing schemes and more schemes planned for the future. These risks and issues are discussed in section 3 above.
As part of the self-financing agreement, an individual housing revenue borrowing cap of £116m was implemented for TDBC. This meant that the HRA was unable to exceed a capital borrowing requirement of £116m within the HRA Business Plan. In October 2018 this borrowing cap was officially removed.
The HRA has benefited from these freedoms in particular the ability to develop new homes; with the addition of 183 homes to the housing stock since 2012.
The HRA 2021 30-Year Business Plan Review
Whilst the business plan was updated on a regular basis, a more thorough review was undertaken again this financial year as part of the budget setting process. This was as a direct result of the significant financial and economic impact caused by the COVID pandemic as well as the need to ensure a comprehensive financial investment appraisal was undertaken for the significant social development schemes recently considered.
Independent financial housing advice was sought from Altair to support the business ... view the full minutes text for item 124. |
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Draft General Fund Revenue Budget and Capital Programme 2021/22
Additional documents: Minutes: The report set out the draft budget estimates for 2021/22, Medium Term Financial Plan (MTFP) forecasts, and 2021/22 Capital Programme and the proposed sources of funding.
The Provisional Finance Settlement for 2021/22 was issued by Government on 17 December, and included details regarding general revenue grant funding, New Homes Bonus, COVID funding and business rates retention baseline and tariff. The information arising is better than the estimates previously included in the MTFP. The final Finance Settlement is expected to be published in late January/early February. Funding for later years is subject to future Spending Reviews by Government and anticipated funding reform.
Executive is minded to implement a council tax increase of 3.04% (£5 on a Band D) in 2021/22, making the annual Band D charge £169.63. The increase in the tax rate provides an additional £279,739 income, however a reduction in the tax base equating to £81,766 results in a net additional council tax income of £197,963 compared to 2020/21.
Executive is also minded to precept £29,093 in special expenses for the Unparished Area of Taunton. This results in an annual council tax rate at £1.91 for a Band D for the Unparished Area of Taunton.
The budget for 2021/22 has been prepared in the context of increased uncertainty. The Government’s Spending Review and Finance Settlement has again been for one year only. The effects of the COVID pandemic on both the local economy and public sector services is ongoing with the country currently in the third national lockdown and a range of restrictions in place as national policy has evolved. The Council has settled its organisation structure during 2020/21 with budgets reorganised into directorates. SMT and the directorate management teams have reviewed budgets in detail to ensure budgets align with up to date cost and income estimates, creating a stronger foundation for future resource planning and decision making.
SMT and the Executive present a balanced draft budget for 2021/22, which includes use of temporary funding from reserves to soften the budget gap in the face of current service demands and funding uncertainty. Longer term the Medium Term Financial Plan presents a significant structural challenge which needed to be addressed.
During the debate the following comments and questions were raised:-
· Concerns were expressed in relation to asset disposals and the process around this. · Hinkley business case funding allocated was questioned. · 75% of losses funded by the government was anticipated · Business rates income was not at the collection levels expected, levels were based on award of the valuation office. · Many Income streams carried risk as a result of the pandemic, New Homes Bonus and general grant funding predicted levels were lower than anticipated. · Predictable funding streams were set around council tax, reasonable assumptions had been made and significant reserves based on investment risk cover had been set aside. · Assets and sales of disposable assets were considered. Decisions relating to disposals would be an asset and treasury management consideration to draw down on when required. · Work would be undertaken to ensure appropriate ... view the full minutes text for item 125. |