North Yorkshire County Council
Executive
Minutes of the meeting held on Tuesday, 24th January, 2023 commencing at 11.00 am.
County Councillor Carl Les in the Chair plus County Councillors Gareth Dadd, Derek Bastiman, Michael Harrison, Simon Myers, Janet Sanderson, David Chance, Keane Duncan, Greg White and Annabel Wilkinson.
In attendance: County Councillors Karin Sedgwick, George Jabbour, Steve Mason, Bryn Griffiths and Andrew Lee and Paul Haslam (virtually)
Officers present: Karl Battersby, Stuart Carlton, Gary Fielding, Richard Flinton, Barry Khan, Richard Webb, Daniel Harry and Neil Irving and Will Baines.
Officers present (virtually): Karen Iveson, Howard Emmett, Lisa Herdman, Gareth Bentley (Harrogate BC), Sharon Cousins (Selby DC), John Lee, Amanda Newbold and Dean Richardson (Harrogate BC).
|
Copies of all documents considered are in the Minute Book
|
|
158 |
Introductions
County Councillor Carl Les welcomed everyone to the meeting.
|
|
159 |
Minutes of the Meeting held on 17th January 2023
It was decided to consider the draft Minutes of the meeting held on 17 January 2023 at the next meeting of the Executive on 7 February 2023.
|
|
160 |
Declarations of Interest
County Councillor Michael Harrison declared a personal non-prejudicial interest in regard to Agenda item 5 - Revenue Budget 2023/24 & Medium Term Financial Strategy (MTFS) Report as he is an employee of an organisation named in the Treasury Management report. The Standards Committee have given him a dispensation for this, enabling him to participate in, and vote at the meeting.
County Councillor Gareth Dadd declared a personal non prejudicial interest in regard to Agenda item 5 - Revenue Budget 2023/24 & Medium Term Financial Strategy (MTFS) Report in case a debate on holiday lets arises, as he is the Director of a company that operates a small number of holiday lets. The Standards Committee have given a dispensation for this, enabling him to participate in, and vote at the meeting.
|
|
161 |
Public Questions and Statements
There were no public questions or statements.
|
|
162 |
Revenue Budget 2023/24 and Medium Term Financial Strategy (MTFS)
Considered – The joint report of the Chief Executive and the Corporate Director - Strategic Resources setting out the financial issues and risks for the new North Yorkshire Council and asking the Executive to make recommendations to the County Council regarding the Revenue Budget for 2023/24, the Medium Term Financial Strategy (MTFS) for 2024/25 to 2025/26, Council Tax for 2023/24, the Capital Five Year Spending Plan, and an updated Treasury Management Strategy for the financial year 2023/24.
County Councillor Gareth Dadd introduced the report and thanked Gary Fielding and his team for their work on the budget, and for the production of the detailed report. The circumstances in which the budget had been prepared, with the fluctuations in the financial markets, rising inflation and fetching eight budgets into one, had made this a difficult task this year.
Revenue Budget for 2023/24, the Medium Term Financial Strategy (MTFS) for 2024/25 to 2025/26, & Council Tax for 2023/24
Gary Fielding, Corporate Director for Strategic Resources introduced the report, beginning by thanking those involved in the preparation of the documents for their hard work and collaboration to get to the current position, in particular the Section 151 officers from the district and borough councils.
With bringing eight councils into one, there will always be issues that arise, but it was felt that the new unitary authority is in a good position to confront these. He commented that there had never been a situation as financially challenging as the current one, even considering the events of the last 10 years, with austerity and having to recover from the Covid-19 pandemic. Last year was the largest single deficit for the County Council of circa £11m, but with North Yorkshire Council set to take on a projected £30m in year deficit next year as the unitary council, it remained a massive financial challenge. The £30m deficit is broken down to £18m worth of structural deficits inherited from the eight predecessor councils (made up of £11m from the county council and £7m from the district and borough councils) and a projected £12m shortfall due to inflation. It was noted that these inflationary pressures are likely to continue as are the pressures that are currently on council services.
Gary continued by detailing the £53m in extra cost pressures to be faced next year by North Yorkshire Council compared to this time last year. Examples of this include a rise in energy costs, from £6m spent in 2021/22 amongst the eight councils, increasing to an expected spend of £15.5m in 2022/23 and an estimated £31m in 2023/24. This substantial increase in energy will affect all services, but in particular Leisure services. In social care, despite an extra £18m of Government funding for next year, spending is forecast to increase by £33m, with £15m of that having to be found from core budgets. Another area of extra pressure is the provision of home to school transport, jumping from £30m in 2022/23 to increase by an extra £5.6 million for 2023/24.
The Equality Impact Assessment was highlighted and the implications set out, as well as the Section 25 statement, to offer a view of the robustness of estimates used in the Revenue Budget 2023/24 and the associated level of balances/reserves, in particular section 8.11.
Gary concluded his remarks by stating he was content that the new council was in as good a place as it can be and not in immediate danger of a Section 114 notice unlike other local authorities. The next 12 months would be key to deliver lasting, sensible and deliverable savings proposals, with the use of Reserves and Balances buying time to come forward with opportunities to transform services over the next financial year. Savings of circa £70m need to be targeted over the next 3 years with an immediate focus on a very significant reduction to the in-year deficit in 2024/25. A dynamic approach will be needed and close working relations were required, but planning has already started to look ahead to this.
County Councillor Bryn Griffiths noted the very difficult times ahead, particularly if the economic situation deteriorates, but asked a question about the table at section 2.6 and the projected reduction in Business Rates (NNDR) income. Gary Fielding responded that the forecast in the table was a reflection of business rates changes nationally and an expectation of putting less reliance on bringing in income through business rates in the future, with more businesses offered concessions that is likely to continue.
County Councillor Steve Mason asked about community infrastructure levy (CIL) charge funds and the ability of Ryedale District Council to use funds received as CIL to be distributed as grants against a strict application criteria until 31st March 2023 as a sovereign council. He asked if Ryedale were forced to stop their CIL grant scheme, what guarantees would local residents have that the money available would still be spent in their local area? County Councillor Gareth Dadd responded that if district councils such as Ryedale came forward seeking approval for proposals to spend money received as CIL, this would be considered when they are received. He also noted that North Yorkshire Council will become the sole authority from 1st April 2023 and would have to deal with the ramifications if there was little or no CIL funds available yet a new school was required. Gary Fielding added that the Pickering starter units project had received general consent which remains in place, with this including a £200k headroom to factor in inflation. However, the costs of the scheme had now gone above this headroom limit and the scope of the scheme may have to be revisited.
County Councillor Paul Haslam congratulated the Finance team on the work undertaken in preparing the report, before asking about section 10 and ensuring the appropriate audit and governance arrangements are in place around climate change to measure and monitor progress to ensure it is maintained towards the target of net carbon neutrality by 2030 (or as close as possible). In response, Gary Fielding noted the carbon footprint of the council is being regularly monitored to check it is reducing, and it was important as there will be big opportunities to reduce the environmental, operational and financial effect of these. He noted securing external funding will be of even greater importance as part of the new council to support transforming the energy efficiency of some of the property assets to get to carbon neutral. County Councillor Gareth Dadd added there may be an element of an ‘invest to save’ approach in a number of property assets to carry out carbon reduction works if a robust business case is presented.
Richard Flinton noted the monitoring of financial savings from climate change policies would be included on a savings scoreboard, with the progress of projects taking place in the Environment team to be scrutinised through the existing performance monitoring arrangements.
County Councillor Simon Myers spoke about the proposal to raise council tax by 4.99% and stated that although he disliked increasing council tax, giving the increased cost of living, he also realised the gravity of the financial situation the new Council would face. He felt members would be failing in their long-term duty to residents if they did not raise council tax to deliver essential services, in particular to those who are vulnerable. County Councillor Gareth Dadd responded that he made the proposal to recommend to Full Council that council tax is increased by 4.99% with a heavy heart, and it was going to be tough to balance the need to provide services with the propensity of people to pay. He also noted that £2m had been allocated to prioritise limited funds to those who need it as part of the Council Tax Reduction policy.
Councillor Myers also asked about the proposal he had received from supporters of the ‘20s Plenty’ initiative to spend £1m to start implementing a 20mph speed limit in urban areas across North Yorkshire, and if this was taken forward, where the money would come from to fund it? County Councillor Gareth Dadd responded by setting out the choices that would be required, such as to cut £1m from another directorate to find the money, or that the funds could be found by dipping into reserves to fund a new 20mph speed limit, but this would be saving the financial problems for another day.
Gary Fielding concluded by noting that discussions were ongoing about the special expenses proposed for the Harrogate and Scarborough town councils and that the council tax rise proposed is only for the North Yorkshire Council element of the annual bill and there were future decisions to be taken by the PFCC and parish and town councils on their precept to note.
Gareth Dadd summed up the opportunities for savings that Local Government Reorganisation presented, and although the next 12 months in particular would be tough for the new authority as the section 25 statement made clear, the future could be bright. He noted that there may be technical changes made to the report ahead of consideration by the County Council.
Resolved -
That the Executive recommends to the County Council:
a) That the Section 25 assurance statement provided by the Corporate Director, Strategic Resources regarding the robustness of the estimates and the adequacy of the reserves (paragraph 8.12) and the risk assessment of the MTFS detailed in Section 9 are noted;
b) An increase in Council Tax of 4.99% (basic 2.99% and Adult Social Care 2%) resulting in a Band D weighted average charge of £1,759.96 – an increase of £83.64 (paragraph 4.3.8 and Appendix D);
c) That, in accordance with Section 31A of the Local Government Finance Act 1992 (as amended by Section 74 of The Localism Act 2011), a Council Tax requirement for 2023/24 of £427,729,811.74 is approved;
d) That a Net Revenue Budget for 2023/24, after use of reserves, of £623,458k (Section 5.0 and Appendix H) is approved;
e) That in the event that the level of overall external funding (including from the final Local Government Settlement) results in a variance of less than £5m in 2023/24 then the difference to be addressed by a transfer to / from the Strategic Capacity Unallocated Reserve in line with paragraph 4.2.3 with such changes being made to Appendix F as appropriate.
f) That the Corporate Director – Children and Young People’s Service is authorised, in consultation with the Corporate Director, Strategic Resources and the Executive Members for Schools and Finance, to take the final decision on the allocation of the Schools Budget including High Needs, Early Years and the Central Schools Services Block (paragraph 3.1.16).
g) That the Medium Term Financial Strategy for 2023/24 to 2025/26, and its caveats, as laid out in Section 3.0 and Appendix G is approved in line with the proposed council tax option.
h) That the Corporate Director – Environment is authorised, in consultation with the Executive Members for Highways & Transportation and Open for Business, to carry out all necessary actions, including consultation where considered appropriate, to implement the range of savings as set out in Appendix B (ENV1 to 6).
i) That the Corporate Director – Community Development is authorised, in consultation with the Executive Member for Planning for Growth, to carry out all necessary actions, including consultation where considered appropriate, to implement the range of savings as set out in Appendix B (CDS 1).
j) That the Corporate Director – Health and Adult Services is authorised, in consultation with the Executive Members for HAS, to carry out all necessary actions, including consultation where he considers it appropriate, to implement the range of savings as set out in Appendix B (HAS 1 to 3).
k) That the Corporate Director – Children and Young People’s Services are authorised, in consultation with the Executive Members for CYPS, to carry out all necessary actions, including consultation where he considers it appropriate, to implement the range of savings as set out in Appendix B (CYPS 1 to 5).
l) That the Chief Executive is authorised, in consultation with the Executive Members for Central Services, to carry out all necessary actions, including consultation where he considers it appropriate, to implement the range of savings as set out in Appendix B (CS 1 to 3).
m) That any outcomes requiring changes following Recommendations h), i), j), k) and l) above be brought back to the Executive to consider and, where changes are recommended to the existing major policy framework, then such matters to be considered by full Council.
n) That the proposed policy target for the minimum level of the General Working Balance is £62m in line with Appendix E.
o) That £900k be provided annually to provide for a Member Locality Budget at £10k per annum per Member as set out in paragraph 4.8.2.
p) That £50k be provided annually for each Area Constituency Committee to commission works they feel appropriate for their local areas as set out in paragraph 4.8.3 and to delegate authority to the Corporate Director, Community Development in consultation with the Executive Member for Planning for Growth to determine application of the scheme.
That the Executive notes and agrees the delegation arrangements referred to in Section 11 that authorise the Corporate Directors to implement the Budget proposals contained in this report for their respective service areas and for the Chief Executive in those areas where there are cross-Council proposals.
That the Executive confirms introduction of a council tax premium of 100% on second homes following consultation subject to the legislation receiving Royal Assent as currently drafted.
That the Executive have regard to the Public Sector Equality Duty (identified in Section 7 and Appendix J) in approving the Budget proposals contained in this report.
North Yorkshire Council Capital Five Year Spending Plan
Gary Fielding introduced the report by setting out the consolidation of work that had been undertaken in developing a capital programme that brought eight councils into one. This was an ongoing piece of work, but it was a starting position for the new council, with further work needed to consider the exciting opportunities around property rationalisation, place shaping, regeneration and linking in with the Council Plan and objectives.
County Councillor Gareth Dadd noted the disappointment that only one of the Levelling Up Fund Round 2 bids submitted in North Yorkshire, for £19m to improve Catterick town centre by Richmondshire District Council, had been successful.
Resolved –
The Executive is recommended to:
a) Approve the consolidated Capital Plan summarised at Appendix A;
b) Note the next steps in transitioning to the new unitary council; and
c) Agree that no action be taken at this stage to allocate any additional capital resources (paragraph 6.7)
Treasury Management
Gary Fielding introduced the report by noting it was an important strategy to have in place to be legally compliant and following best practice.
Resolved - That Executive Members recommend to the Council: -
a) The Treasury Management Strategy Statement at Annex 1, consisting of the Annual Treasury Management Strategy (Section 1), Capital Prudential Indicators (Section 2), Borrowing Strategy (Section 3) and Annual Investment Strategy 2023/24 (Section 4), including in particular;
i. an authorised limit for external debt of £652.1m in 2023/24;
ii. an operational boundary for external debt of £631.1m in 2023/24;
iii. the Prudential and Treasury Indicators based on the Council’s current and indicative spending plans for 2023/24 to 2025/26;
iv. a limit of £60m of the total cash sums available for investment (both in house and externally managed) to be invested in Non-Specified Investments over 365 days;
v. a Minimum Revenue Provision (MRP) policy for debt repayment to be charged to Revenue in 2023/24;
vi. the Corporate Director – Strategic Resources to report to the Council if and when necessary during the year on any changes to this Strategy arising from the use of operational leasing, PFI or other innovative methods of funding not previously approved by the Council;
b) The Capital Strategy as attached as Annex 2;
c) The Debt Recovery Policy set out at Annex 3;
d) That the Audit Committee be invited to review Annex 1, 2 and 3 and submit any proposals to the Executive for consideration at the earliest opportunity.
|
|
163 |
Council Plan 2023 - 2027 for North Yorkshire Council
Considered – A report of the Assistant Director – Policy, Partnerships and Communities seeking agreement of the Executive to submit the first Council Plan for North Yorkshire Council to the County Council for adoption.
County Councillor David Chance introduced the report, noting that the Council Plan 2023 – 2027 would be a key component of the policy framework and closely linked with the budget setting process. It sets out the Council’s vision, ambitions and priorities over the next 4 years. The Council Plan is a ‘live’ document and will be refreshed annually. It will include an introduction to the new unitary authority and how it will deliver services locally and how it will measure performance. The plan has been developed by officers from all eight councils and the findings from the ‘Let’s Talk’ campaign have been used to inform the ambitions and priorities included in the plan. An early draft was considered by Corporate & Partnerships Overview & Scrutiny Committee and a full draft shared with all county councillors for comment. A full Equality Impact Assessment is included along with a Climate Change Impact assessment. The Council Plan has been developed in the context of public sector financial restraint, and unprecedented service demand pressures. The Covid-19 pandemic and current cost of living rises have only exacerbated this, and we know that the long-term financial position remains uncertain. The anticipated impacts of our ambitions and priorities are therefore positive ones. Due regard to equalities and climate change will be paid when making decisions on actions to realise these ambitions and priorities where appropriate.
The five key themes will be: Place & Environment; Economy; Health & wellbeing; People and Organisation.
Neil Irving, Assistant Director – Policy, Partnerships and Communities thanked everyone involved in the development of the Council Plan 2023 – 2027 and noted the changes proposed to the Council Plan in 12 months time are likely to be more significant.
Resolved –
1. That the Executive approves the draft Council Plan and recommends it to the County Council for approval at its meeting on 22 February 2023, and
2. That the Executive recommends that the County Council authorises the Chief Executive to make any necessary changes to the text, including reflecting decisions made by the County Council on the budget and Medium Term Financial Strategy, and updated performance data and key performance indicators.
|
|
164 |
Housing Revenue Account Budget 2023/24
Considered – Report of the Corporate Director – Strategic Resources setting out the Housing Revenue Account (HRA) budget for 2023/24 and agreeing the rent increase for 2023/24 to the County Council for approval.
County Councillor Simon Myers introduced the report, thanking the Housing workstream and noting that this will be the first time that a Housing Revenue Account (HRA) will need to be considered by the County Council as a result of the transfer of responsibilities on 1st April due to Local Government Reorganisation. North Yorkshire Council will inherit roughly 8,500 council tenants living in Harrogate, Selby and Richmondshire. As a Housing Revenue Account authority, it does provide opportunities for the new Council to try and help tackle the housing crisis that many residents across the county are facing. However, there are pressures as HRAs have to be self funding, but are subject to the cost inflationary pressures and it is imperative that fair social rented accommodation is provided and that it is built to decent standards. In order to do this, it requires capital expenditure that is included within the budget to bring stock up to a decent standard, and futureproof the HRA to the extent that we can futureproof properties and develop further properties.
In setting rent increases for the forthcoming year, it is recommended to increase rents by the maximum allowed by government, which is capped at 7%. In normal times, councils are allowed to increase rents by the combination of CPI + 1%, which would be 11% currently, therefore the government has capped the increase. If the maximum rent increase was not introduced by the council, then it would limit the ability to achieve the ambition to improve the current housing stock and develop new properties.
Paul Foster, Head of Finance at Harrogate BC added that every 1% below the 7% proposed would reduce rental yield by an estimated £357k in 2023/24 and after 10 years, total rental income collected would be £4.1m less for each 1% below the 7%. It is a ringfenced account, so expenditure on maintaining and managing stock has to be paid for from housing rents and with inflation at 10%, a 7% rent increase is the recommended approach.
County Councillor Derek Bastiman supported the proposal and felt it was incumbent on the new authority to increase rents by the maximum amount to fund the provision of efficient and decent homes in the future.
Resolved –
That the Executive recommends to Council:
a) the approval of the HRA budget for 2023/24 as set out in paragraph 4.3, being a net expenditure of £2,219k to be funded from the HRA working balance.
b) agrees an increase of 7% be applied to social, affordable and hostel rents from 1 April 2023 and recommends this to the Council for approval;
c) agrees an increase of 2% be applied to shared ownership rents from 1 April 2023 and recommends this to the Council for approval.
|
|
165 |
North Yorkshire Hackney Carriage Maximum Table of Fares
Considered – A report of the Corporate Director – Business and Environmental Services seeking Executive permission to consult on a maximum Hackney Carriage fare to cover the whole of North Yorkshire administrative area from the 1 April 2023.
County Councillor Derek Bastiman introduced the report, noting that the creation of North Yorkshire Council will bring together the seven licensing authorities from the district and borough councils. Each legacy authority has a current maximum Hackney Carriage fare, with the report proposing a £7.40 maximum fare for the first two miles for North Yorkshire Council, although a lower price can be charged. There are no national guidelines or guidance for the setting of maximum fares and each local authority currently uses different methods and information to produce the local maximum rates.
County Councillor Simon Myers supported the proposal, recognising the important role that taxi drivers play in the life of the county, from the night town economy to providing transport to vulnerable citizens. Therefore, it is important that they have proper renumeration to make it an attractive business to enter.
Resolved –
i. To approve the proposed table of fares as shown in Appendix 2
ii. Give permission to carry out a public consultation for 14 days, proposing that the new fares come into effect from 1 April 2023 unless there are objections / or objections that are not withdrawn.
|
|
166 |
Proposal to cease to maintain Hovingham Church of England Voluntary Controlled Primary School
Considered – A report of the Corporate Director – Children and Young People’s Service detailing the outcomes of the public consultation carried out by the County Council on the proposal to close Hovingham CE VC Primary School and asking the Executive to authorise the publication of proposals and statutory notices on 3 February 2023, and to schedule taking a final decision on the proposal on 21 March 2023.
County Councillor Annabel Wilkinson introduced the report, detailing that in autumn 2022 at a governing body meeting of the Federation of Hovingham CE Primary School and St Hilda’s CE Primary School, it was agreed with regret and reluctance to ask the County Council to consult on closure proposals for Hovingham CE VC Primary School.
Stuart Carlton, Corporate Director for Children and Young People confirmed that there were no first or second preferences on applications for the school, and although there were three lower placed applications, it was high likely that these children would be allocated to higher placed preferences. Therefore it was expected that there would be no applications for the next academic year at Hovingham CE VC Primary School.
County Councillor Steve Mason said he understood the decision to consult on closure proposals given no pupils had made an application to enrol at the school for the next academic year, but noted the building was a gift to the community for educational purposes and did not want it to fall into disrepair. He also raised potential options for keeping the school going and asked for these considerations to be considered when it comes to making a final decision.
County Councillor George Jabbour thanked the Executive member for attending the recent public consultation meeting and detailed the work he had done on this matter, including attending an open morning to try and attract new pupils.
Resolved –
i) Statutory proposals and notices be published on 3 February proposing to cease to maintain Hovingham CE VC Primary School with effect from 31 March 2023.
iii) The Executive schedule taking a final decision on these proposals on 21 March 2023.
|
|
167 |
School Admission Arrangements for the School Year 2024/2025
Considered – A report of the Corporate Director – Children and Young People’s Service seeking the views of Members on the response to the proposed admission arrangements for Community and Voluntary Controlled schools for the school year 2024/25, and to seek approval for recommendation to the County Council for determination.
Resolved –
That the proposed Admission Arrangements for 2024/2025 be recommended to the County Council for approval on 22 February 2023 include:
i) the proposed co-ordinated admission arrangements (Appendix 1)
ii) the proposed co-ordinated in year admission arrangements (Appendix 1a)
iii) the proposed admission policy for community and voluntary controlled schools (Appendix 2)
iv) the proposed admission policy for nursery schools, schools with nursery classes and pre-reception classes, (Appendix 3)
v) the proposed published admission numbers (PAN’s) for community and voluntary controlled schools as shown in appendices 4 (Primary) and 5 (Secondary)
|
|
168 |
NYC Pay Policy
Considered – Report of the Assistant Chief Executive – HR & Business Support detailing the pay policy for North Yorkshire Council, setting out the parameters in which any pay decisions are made throughout the year, and providing the current pay details of senior members of staff in line with transparency requirements of the Localism Act.
Resolved –
That the Executive consider the 2023-24 Pay Policy and recommend to County Council, at their meeting on 22 February 2023, the approval of the Pay Policy for publication.
|
|
169 |
Report and recommendations of the Independent Remuneration Panel for Member Allowances for 2023-24
Considered - Report of the Assistant Chief Executive – Legal and Democratic Services detailing the report of the Independent Remuneration Panel for Member Allowances and recommendations to be made to the meeting of the County Council on 22 February 2023.
County Councillor Gareth Dadd detailed the evidence gathering process and the method used by the Independent Renumeration Panel to produce the report and recommendations.
County Councillor David Chance reaffirmed the independent nature of the panel and emphasised the new allowances scheme proposed are for a new council. He also suggested that pay levels for elected members should be set nationally in the future.
Barry Khan, Assistant Chief Executive (Legal & Democratic Services) noted the reduction in the number of councillors in the county as part of North Yorkshire Council from 319 down to 90. He also stated that the IRP reviewed comparator data for similar unitary authorities, submissions from county councillors regarding their role, submissions from senior officers regarding the responsibilities and scope of the new council and economic data on inflation, the cost of living and national pay awards as part of their deliberations.
Resolved –
That the Executive consider the report of the Independent Remuneration Panel for Member Allowances and to make recommendations to the meeting of the County Council on 22 February 2023 regarding the recommended Basic Allowance and Special Responsibility Allowances for the new Council.
|
|
170 |
Forward Plan
Considered –
The Forward Plan for the period 16 January 2023 to 31 January 2024 was presented. County Councillor David Chance noted that the report on the Local Area SEND Strategy Adoption scheduled for the meeting today would be considered at a future meeting.
Resolved - That the Forward Plan be noted.
|
The meeting concluded at 12.50 pm.