Agenda, decisions and minutes

The minutes of the meeting held on 23 October 2013 were submitted and approved and the Chairman was authorised to sign them as a correct record.

Declarations of disclosable pecuniary interests (DPIs) by members as required under Section 31 of the Localism Act and of other interests as required by the Code of Conduct and regulation 12(2)(d) of the 2012 Access to Information Regulations.  (Please see note at end of agenda).

No declarations were made.

Report of Deputy Chief Executive.

Cabinet lead members:  Councillors Troy Tester and Gill Mattock.

(1) Performance against indicators agreed.

(2) General Fund, Housing Revenue Account and Collection Fund financial performance as set out in sections 3, 4 & 6 of the report agreed.

(3) Virements and transfer to and from reserves as set out in Appendix 3 to report agreed.

(4) Capital programme as set out in Appendix 4 agreed.

(5) Treasury Management performance as set out in section 7 agreed.

55.1 Cabinet considered the report of the Deputy Chief Executive and Chief Finance Officer reviewing the council’s performance against corporate plan priority indicators and action targets; financial performance of general fund revenue expenditure, housing revenue account and capital programme; and treasury management activities for the second quarter of 2013/14.  Throughout the year, performance against these key indicators and milestones was reported to Cabinet on a quarterly basis and to Scrutiny Committee members each month. 

55.2 Resolved (key decision) (1) That the performance against national and local performance indicators and actions from the 2010/15 corporate plan (2013 refresh) be agreed.

(2) That the general fund, housing revenue account and collection fund financial performance for the quarter ended September 2013, as set out in sections 3, 4 and 6 of the report be agreed.

(3) That the virements and transfer to and from reserves as set out in appendix 3 to the report be approved.

(4) That the amended capital programme as set out in appendix 4 to the report be approved.

(5) That the treasury management performance as set out in section 7 of the report be agreed.

Report of Chief Finance Officer.

Cabinet lead member:  Councillor Gill Mattock.

(1) Provisional Council Tax Base of 32,126.5 for 2014/15 agreed.

(2) Provisional Retained Business Rates Income of £35.225m for 2014/15 agreed.

(3) Chief Finance Officer, in consultation with the Portfolio Holder for Finance, authorised to determine the final amounts for the Council Tax Base and Retained Business Rates income for 2014/15.

56.1 Cabinet considered the report of the Chief Finance Officer.  The Council was required to set its council tax base and the expected business rate income for the forthcoming year.  These calculations were used as the basis for the amount of income the Council will precept from the collection fund.

56.2 The council tax base for Eastbourne was calculated by multiplying the ‘relevant amount’ by the ‘collection rate’.  The relevant amount was the estimated full year equivalent number of chargeable dwellings within the borough.  This was expressed as the equivalent number of ‘band D’ dwellings with 2 or more liable adults.  The relevant amount had decreased by 359 (1.1%) Band D equivalent dwellings from 2013/14.  This reflected the higher take up of the council tax reduction scheme than the 2013/14 original model predicted pending the introduction of the scheme from 1 April 2013.  This had been offset by a reduction in the number of single person discounts awarded. The effect of these changes had resulted in the reduction to the total number of chargeable dwellings by 382.

56.3 The collection rate was the Council's estimate of the proportion of the overall Council Tax collectable for 2014/2015 that would ultimately be collected. This was expressed as a percentage.  Given the current level of Council Tax collection and the forecast of a small deficit balance on the collection fund it was considered prudent to maintain the current collection rate of 97.5%.  Taking the relevant amount of 32,950.3 and applying the collection rate of 97.50% produced a council tax base for 2014/15 of 32,126.5.

The Local Government Finance Act 2012 had introduced a new system for the local retention of business rates. This meant that the Council was required to formally approve the expected business rate income for the forthcoming year. The estimate for the 2014/15 financial year must be approved by 31 January 2014.

56.4 The report described how the net rate income for 2014/15 would be calculated.  The actual ‘NNDR1’ form for 2014/15 had not yet been received but the provisional figures based on the 2013/14 form plus known changes had been calculated and indicated a net yield of £35,225,000.  The allocation would be in the proportion of:

• 50% to central government
• 40% to the local billing authority (this council)
• 10% to the other precepting authorities (9% to the county and 1% to the fire authority)

56.5 As some local authorities collected more business rates than they currently received in formula grant (which was based on relative need and resources), whilst others were lower the government would rebalance to ensure that no local authority was worse off as a result of it business rates at the outset of the scheme though a system of tariffs and top ups.  Tariff and top ups would be self funding and fixed in real terms (i.e. only up rated by RPI in future years) ensuring that changes in retained income were driven by business rate growth.  This authority had a business rate baseline  ...  view the full minutes text for item 56.

Report of Head of Corporate Development.

Cabinet lead member:  Councillor Troy Tester.

(1) Corporate priority theme portfolio holders and lead officers to take into account the community evidence and trend analysis, summarised in the appendices to report, and in particular the key headlines set out in appendix 5, when formulating proposed priority projects and activity for inclusion in the 2014/15 edition of the plan.

(2) Timetable and activity set out in paragraph 4 of report approved.

(3) Proposed actions and timelines relating to the review of the overall lifespan of the 2010-15 corporate plan and the production of the new 2015-20 corporate plan, as set in paragraph 5 of report endorsed.

57.1 Cabinet considered the report of the Head of Corporate Development presenting a summary picture of ongoing community evidence and a timeline for the final year refresh of the 2010-15 corporate plan and setting out the intended high level proposals for the production of the next corporate plan.

57.2 The proposed high level timetable for refreshing the corporate plan for 2014/15 was as follows:

·         During January - Senior heads of service in liaison with Cabinet portfolio holders to agree priority projects

·         End of January - Leadership Team to agree draft priorities

·         11 February – Presentation of emerging year 5 plan content to Scrutiny committee seminar

·         February/March - Finalising of refreshed corporate plan chapters for 2014/15

·         19 March - Cabinet to receive and approve refreshed corporate plan for recommendation onto Council

·         7 May - Council final ratification of 2014/15 refreshed corporate plan

57.3 Over the last five years, the Council had consulted widely both at a high strategic level and at a more operational level in order to build a picture of the needs of the town as a whole and of specific communities. Over this period, over 900 members of the Eastbourne resident and business communities had participated in various consultation activities and provided information on what should be prioritised for the future benefit of the town.  The Council’s appreciation for the time and effort given by participants was noted.

57.4 The cumulative consultation and feedback over the last five years ensured that the Council could point to a robust and ongoing bank of community evidence as a guide to setting its priorities. Taken alongside local, regional and national data, government led initiatives and legislative changes, and the insight of local elected members, this provided a sound basis for the setting of high level goals backed up by priority projects for the future.

57.5 Resolved (key decision) (1) That corporate priority theme lead Cabinet members and lead officers take into account the community evidence and trend analysis, summarised in the appendices, and in particular the key headlines set out in appendix 5 to the report, when formulating proposed priority projects and activity for inclusion in the 2014/15 edition of the plan.

(2) That the timetable and activity involved in producing the 2014/15 edition of the current corporate plan, as set out in paragraph 4 of the report, be approved.

(3) That the proposed actions and timelines relating to the review of the overall lifespan of the 2010-15 corporate plan and the production of the new 2015-20 corporate plan, as set in paragraph 5 of this report, be endorsed.

Report of Chief Finance Officer.

Cabinet lead member:  Councillor Gill Mattock.

(1) Draft budget proposals approved for consultation.

(2) The approach to dealing with changes in the expected resources available for the 2014/15 budget as detailed in para. 5.3 of report including the closing of a currently forecast gap of £104,000 between the recurring resources and recurring proposed budget agreed.

(3) Agreed that as details of the Government’s proposed tax freeze grant for 2014/15 are not yet available, the maximum potential council tax rise will be less than 2%.

(4)  Main risks to the draft budget in para. 5.4 agreed.

58.1 Cabinet considered the report of the Chief Finance Officer.  Each year the Council consulted a range of stakeholders on its detailed draft budget proposals for the following financial year.  This followed consultation on the corporate plan (see minute 57 above) and medium term financial strategy (MTFS), which had been carried out over the summer and autumn.  Cabinet was asked to give initial responses to the consultations at this meeting and finally on 5 February 2014 in order to recommend a final budget and additions to the existing capital programme for 2014/15 to the Council on 19 February 2014.

58.2 The process of service and financial planning was an integral part of the corporate planning cycle that looked over a medium term horizon. The corporate change programmes under the Council’s DRIVE programme picked up the challenge of the MTFS.

58.3 The MTFS agreed in July 2013 modelled the overall reduction in government support by 40% in cash terms over the whole comprehensive spending review (CSR) period (2013/17) which equated to around 50% in real terms at past and projected levels of inflation.  At the time of writing the report, the Chancellor’s autumn statement and the results of the CSR for 2013 were not known, however in June 2013, the Chancellor had made announcements that indicated further reductions in government support of between 10 and 20 percent (on top of the 28.4% covering the period 2011-2014).

58.4 In addition to changes in the amount of funding for local government, there were two significant changes that came into force in 2013/14 that gave a greater volatility to local government finance over the medium term.  These changes were the retention of a proportion business rates and the localisation of council tax support.

58.5 The current strategy set out a rolling three year plan to:

• Deal with the anticipated reduction in the government support of around 50% from the 2010/11 level.
• Integrate fully the service and financial planning process with the main change programmes under DRIVE
• Work with clearly defined medium term efficiency targets to the corporate transformation programmes and allow services to put forward savings proposals in addition.
• Deal with the continued economic downturn and unavoidable growth in service demands
• Maintain front line services to the public
• Make further recurring savings of  £2.1m per annum by 2016/17 (in addition to the £3.5m achieved in setting the 2011-2014 budgets)
• Maintain at least a minimum level of reserves of £2m
• Use surplus reserves in the medium term for:

-Invest to save projects

-Smooth the requirement for savings over the cycle of the MTFS

-Invest in one off service developments in line with the corporate plan

• Benchmark fees and charges against the service standard
• Reinvest in value adding priority services when headroom is created
• Set council tax rises at or below the level of inflation
• Maintain a strategic change fund to finance the DRIVE programme in order to increase efficiency
• Maintain an economic regeneration reserve to finance external interventions that promote economic activity
• Finance capital expenditure  ...  view the full minutes text for item 58.

Recommendations of Cabinet Portfolio Holder for Corporate Development and Infrastructure and report of Senior Head of Development.

Cabinet lead member:  Councillor Troy Tester.

(1) Contents of the report of the Senior Head of Development and the report of Locality noted.

(2) Recommendations in first report above agreed as follows: (a) To implement measures necessary to progress towards a sustainable asset base; and (b) to authorise the implementation of a full Corporate Landlord model by April 2015, using the remaining £45,000 of the original budget for assistance with the implementation plan.

(3) Agree the general principle of the recommendations made by Locality and accept the strong financial business case that sits behind these recommendations but also accept that Eastbourne Borough Council has ambitions and concerns which are not entirely financial and so there will be a need to temper these principles in some cases. To this end, cabinet accepts that: (a) There is a need to consider the value of the contribution of all assets on a case by case basis. The total value of an asset is the financial, social, community, environmental, cultural, health, and economic development value of the asset to the local community and the council. (b) Where a decision is taken to not achieve best financial value for the council in relation to any asset, it must be clear what other value is being placed upon that asset.  (c) There is a limit as to how many times and to what extent the council will be able to make non financial led decisions if it is to achieve the stated ambition of a sustainable asset base.

(4) Delegate to Chief Finance Officer in consultation with the Strategic Property Board the task of exploring means to make the process in 3(b) above transparent within the council's financial reporting arrangements.

59.1 Cabinet considered the report of the lead member for Corporate Development and Infrastructure which set out a series of recommendations in relation to the accompanying report of the Senior Head of Development.  The Council’s commitment to strategic asset management and the corporate plan objective of a sustainable asset base was supported by previous Cabinet recommendations in October 2011 and October 2012.

59.2 In May 2013, Cabinet authorised an asset challenge programme to assist in achieving the sustainable asset base.  Specifically, Cabinet authorised two scoping exercises to establish (a) the viability and programme for transfer of assets to trust and (b) the savings and improvements to quality of service by transferring the retained asset base into a Corporate Landlord model.  The asset transfer and the corporate landlord reviews had been undertaken by Locality and the Chartered Institute of Public Finance and Accountancy (CIPFA) respectively.  Additional input was provided by iESE (Improvement and Efficiency Social Enterprise) and the estates team. 

59.3 The key findings of the Locality report concerning asset transfer were summarised as follows:-

1. The Council owned significant sites with considerable potential as well as numerous smaller holdings which could deliver increased revenue or capital returns if managed strategically.

2. When decisions were taken to retain operational assets (that might be subject to substantial investment), the business cases should be independently ‘stress tested’ to fully understand the level of long term subsidy and its impact on the Council’s future revenue budget and its ability to achieve a sustainable asset base.

3. The Council was not in a position to create a council wide trust or multiple trusts (e.g. community or leisure trusts) before detailed progress was made to restructure, improve efficiency and effectiveness and become more skilled at entrepreneurialism.

4. There were potential efficiencies and savings through moving corporate property to an independent trust; either as a management agent or with an asset portfolio. However the Council was not yet in a position to undertake this without going through a process of strategic planning and internal restructuring.

The key recommendations were as follows:-

1. Every asset, operational or non operational should generate a surplus (or be cost neutral at worst) or capital receipt within agreed timescales with the possible exception of core service support/administration facilities (such as 1 Grove Road).

2. Strategic assets must generate significant capital and/or revenue returns for the Council to reinvest in the retained operational portfolio to assist with achieving the best possible sustainable asset base.

3. When assessing operational assets the Council should be aware and take account of the combined social, cultural, environmental and financial objectives; the Council needed to be clear on the relative weight attributed to these objectives and the potential long term subsidy required to support operational assets.

59.4 The key findings from the CIPFA report supported the implementation of a full Corporate Landlord model.  The key recommendations were as follows:-

1. The Council should move towards a full corporate landlord approach in respect of the key components  ...  view the full minutes text for item 59.

Report of Senior Head of Development.

Cabinet lead member:  Councillor Steve Wallis.

(1) Plan approved for consultation with the community and key stakeholders between December 2013 and March 2014.

(2) Delegated authority given to the Senior Head of Development in consultation with the Lead Cabinet Member to make minor amendments before the commencement of the 12 week consultation period.

60.1 Cabinet considered the report of the Senior Head of Development.  In May 2012, the Eastbourne core strategy local plan had been subject to public examination by a planning inspector.  The inspector had expressed concerns over the evidence that supported core strategy policy D2: economy, particularly relating to the employment land supply.  In order to address this issue without delaying the adoption of the core strategy, the Inspector recommended that this particular policy be the subject of an early review, leading to its replacement with an additional local plan to deal specifically with the employment land supply.  This review would be subject to public examination and should be adopted by the end of 2014.  The core strategy was subsequently adopted in February 2013.

60.2 In order to meet this requirement, an employment land local plan (ELLP) had been prepared for consultation.  The plan would guide job growth and economic development to 2027 as well as identifying an appropriate supply of land for future employment development.

60.3 There was a requirement to provide 43,000 sq.m. of class B floor-space over the plan period.  This amount was based on forecasting projections that assumed growth in key sectors in Eastbourne and increased participation rates as economic activity and working age population grew.  It was considered important that more jobs were created in more diverse areas to reduce reliance on tourism, and that space be provided for start-up businesses to encourage indigenous business growth.  The report commented that much of existing commercial space in the town did not meet occupier standards, which meant that employment land was being lost to other uses.  The plan aimed to encourage the supply of high quality space that met business needs and ensured key sites in employment locations were protected.

60.4 Resolved (key decision): (1) That the proposed draft employment land local plan be approved for the purposes of consultation with the community and key stakeholders between December 2013 and March 2014.

(2) That the Senior Head of Development, in consultation with the lead Cabinet member, be given delegated authority to make minor amendments to the draft plan before the commencement of the 12 week consultation period.

Report of Revenues and Benefits Manager.

Cabinet lead member:  Councillor Margaret Bannister.

Policy adopted.

61.1 Cabinet considered the report of the Revenues and Benefits Manager presenting a policy for the collection of council tax and business rates.  A copy of the proposed policy and equality analysis were appended to the report.  In drafting the policy account had been taken of the Citizens Advice Bureau’s ‘Collection of Council Tax Arrears Good Practice Protocol’ and the Department for Communities and Local Government’s ‘Guidance to local councils on good practice in the collection of Council Tax arrears’.

61.2 The aims of the policy were:

·         To bill customers accurately and in a timely manner.

·         To help customers get the discounts and exemptions they are entitled to.

·         To comply with relevant legislation.

·         To take into account guidance and best practice.

·         To collect taxes due in a fair and efficient manner.

·         To provide payment methods that are convenient to the taxpayer.

·         To discharge the Council’s duty in relation to the recovery of council tax and business rates.

·         To take recovery action taking into account individual’s circumstances as far as practicable.

·         To make use of distress or committal only as a last resort.

·         To treat individuals consistently and fairly, regardless of age, sex, gender, disability, race and sexual orientation.

·         To protect individuals rights under data protection and human rights legislation.

61.3 Consultation had taken place with Citizens Advice Bureau, Eastbourne Disability Involvement Group, East Sussex Credit Union, Salvation Army, Eastbourne Cultural Communities Network, Crime Reduction Partnership, East Sussex County Council and Activating Eastbourne.

61.4 Resolved (key decision): That the policy is adopted.

Report of Head of Corporate Development.

Cabinet lead member:  Councillor Troy Tester.

(See item below in confidential section of agenda for the appendix comprising exempt information.)

(1) Actions taken to date and the work undertaken by the Equal Pay Working Party noted.

(2) Action plan for the next 12 to 18 months agreed.

(3) Agreed to commit to a further Equal Pay Audit in 2015/16 following the completion of Phase 2 of Future Model.

62.1 Cabinet considered the report of the Head of Corporate Development giving an update on the actions taken following the equal pay audit conducted in 2011 and further actions scheduled for the next 12 to 18 months.

62.2 Following the introduction of a revised pay and grading structure for the Council in 2008, a commitment had been made to test the model via an equal pay audit once the full suite of pay and reward processes had embedded.  The audit took place between April and July 2011 and the findings were reported to Cabinet in December 2011.  The Cabinet were told of the key findings and further work that was required to ensure the Council continued to improve equality in pay.  Most importantly, the audit found no evidence that the gender pay gap was attributable to direct or indirect unfair discrimination in the Council’s processes or decision making.

62.3 Work on implementing the recommendations of the audit was deferred until the outcome of phase one of Future Model had bedded in.  In the Spring of 2013, a working group officers from across a range of services and a representative of the Unison branch had been established.  The group had met several times to consider the recommendations and actions arising from the audit.  The group determined that the gender pay gap remained similar to the original audit at about 15% and when the chief officer roles were excluded this reduced to 5.28%.  Although these figures could only be regarded as indicative, they demonstrated that the same issues remained in relation to the pay gap.

62.4 The group had agreed an action plan (circulated separately in the confidential part of the agenda as it comprised exempt information - Exempt information reasons 1 and 2 - information relating to an individual or likely to reveal the identity of an individual) which identified actions already undertaken, as well as areas for further development and action.  The group would continue to meet to further develop the Council’s approach to ensuring equality of pay and address the key issue of how the Council would reduce or eliminate the gender pay gap.  Key work streams would continue to be:

• Raising awareness of gender pay gap/imbalance at the top in future recruitment
• Ensuring challenge for corporate change proposals which may compound pay gap, especially with part-timers
• Reviewing support and development for females over age 40 who are part timers and/or post-maternity leave

• Identifying options for making the workforce more representative of the local community in terms of ethnic make up and disability.

62.5 Resolved: (1) That the actions taken to date and the work undertaken by the Equal Pay Working Party be noted.

(2) That the action plan for the next 12 to 18 months be agreed.

(3) That a further equal pay audit in be undertaken in 2015/16 following the completion of Phase 2 of Future Model.

Chief Executive considers that discussion of the following items are likely to disclose exempt information as defined in Schedule 12A of the Local Government Act 1972 and may therefore need to take place in private session.  The exempt information reasons are shown beneath the items listed below.  Furthermore, in relation to paragraph 10 of Schedule 12A, it is considered that the public interest in maintaining the exemption outweighs the public interest in disclosing the information. (The requisite notices having been given under regulation 5 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.)

(Note: Exempt papers are printed on pink paper).

Resolved: That the public be excluded from the remainder of the meeting as otherwise there was a likelihood of disclosure to them of exempt information as defined in schedule 12A of the Local Government Act 1972.  The relevant paragraphs of schedule 12A and descriptions of the exempt information are shown in minute 62 above and in the items below.  (The requisite notices had been given under regulation 5 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.).

The full minutes of the under-mentioned items are set out in the confidential section of these minutes.  The reports remain confidential.

Report of Head of Corporate Development.

Cabinet lead member:  Councillor Troy Tester.

Exempt information reasons 1 and 2.  Information relating to an individual or likely to reveal the identity of an individual.

Update report on position of employees currently subject to the procedure noted.

64.1 Cabinet noted that 2 employees were subject to the procedure at present. They noted the actions taken to manage implications of change for displaced individuals.

Exempt information reasons 1 and 2 – Information relating to an individual or likely to reveal the identity of an individual.

Report of Lawyer to the Council and Monitoring Officer.

Cabinet lead member:  Councillor Carolyn Heaps.

Exempt information reasons 3 and 5 - Information relating to the financial or business affairs of any particular person (including the authority holding that information) and information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.

Cabinet considered legal advice in relation to the Council’s proposed financial support to the Devonshire Park project and agreed European Commission notification was not required in relation to the current proposals.

64.2 Cabinet considered legal advice in relation to the Council’s proposed financial support to the Devonshire Park project and agreed European Commission notification was not required in relation to the current proposals.

Exempt information reasons 3 and 5 - information relating to the financial or business affairs of any particular person (including the authority holding that information) and information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.