County Councillor Carl Les welcomed everyone to the meeting.

It was decided to consider thedraft Minutesof themeeting heldon 17 January 2023 at the next meeting of the Executive on 7 February 2023.

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.

Members of the public may ask questions or make statements at this meeting if they have given notice to Will Baines of Democratic and Scrutiny Services and supplied the text (contact details below) by midday on Thursday 19 January 2023, three working days before the day of the meeting.  Each speaker should limit themselves to 3 minutes on any item.  Members of the public who have given notice will be invited to speak:-

·       at this point in the meeting if their questions/statements relate to matters which are not otherwise on the Agenda (subject to an overall time limit of 30 minutes);

·       when the relevant Agenda item is being considered if they wish to speak on a matter which is on the Agenda for this meeting.

If you are exercising your right to speak at this meeting, but do not wish to be recorded, please inform the Chairman who will instruct anyone who may be taking a recording to cease while you speak.

There were no public questions or statements.

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.

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 be 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 taking into account 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.  ...  view the full minutes text for item 162.

Recommendations:

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.

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.

That the Executive:

a)             recommends to Council 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.

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 1^st 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 same cost inflationary pressures as across the council and it is imperative that fair social rented accommodation is provided and that it is built to decent standards. However, this 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 to 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, Community Development 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.

Recommendations:

That the Executive:

1.             Approve the proposed table of fares as shown in Appendix 2

2.              Give permission to carry out a public consultation for 14 days, proposing that the new fares come into effect on the 1 April 2023 unless there are objections / or objections that are not withdrawn.

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 seven licensing authorities. 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.

Recommendations:

i)               Statutory proposals and notices be published on 1 February proposing to cease to maintain Hovingham CE VC Primary School with effect from 31 March 2023.

ii)      The proposals include that from 1 April 2023 the parishes of Gilling East, Grimstone, Cawton and the smaller part of Coulton parish  which currently form a part of a shared catchment area between Hovingham CE and St Hilda’s CE will remain part of the St Hilda’s CE catchment area. The parish of Stonegrave which was part of the discrete catchment area for Hovingham CE would also become part of the St Hilda’s CE catchment area. The parish of Scackleton and the larger part of the parish of Coulton which were part of Hovingham’s discrete catchment area will become part of the catchment area for Terrington CE VA Primary School. The parish of Fryton and the larger part of Hovingham Parish which formed part of the Hovingham catchment area will become part of the catchment area for Slingsby Community Primary School.

iii)    The Executive schedule taking a final decision on these proposals on 21 March 2023.

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 Primary School.

Stuart Carlton, Corporate Director for Children and Young People confirmed that there were no first or second preferences on applications, and although there were three lower placed applications, but it was high likely that these children would get their higher placed preferences, therefore there were no applications for the next academic year.

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 taken into account when it comes to making a final decision.

County Councillor George Jabbour thanked the Executive member for attending the public consultation meeting and detailed the work he had done on this matter the 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.

ii)       The proposals include that from 1 April 2023 the parishes of Gilling East, Grimstone, Cawton and the smaller part of Coulton parish which currently form a part of a shared catchment area between Hovingham CE and St Hilda’s CE will remain part of the St Hilda’s CE catchment area. The parish of Stonegrave which was part of the discrete catchment area for Hovingham CE would also become part of the St Hilda’s CE catchment area. The parish of Scackleton and the larger part of the parish of Coulton which were part of Hovingham’s discrete catchment area will become part of the catchment area for Terrington CE VA Primary School. The parish of Fryton and the larger part of Hovingham Parish which formed part of the Hovingham catchment area will become part of the catchment area for Slingsby Community Primary School.

iii)      The Executive schedule taking a final decision on these proposals on 21 March 2023.

Recommendations:

That the proposed Admission Arrangements for 2024/2025 be recommended to the County Council for approval on 22 February 2023 include:

·       the proposed co-ordinated admission arrangements appendix 1

·       the proposed co-ordinated in year admission arrangements appendix 1a

·       the proposed admission policy for community and voluntary controlled schools appendix 2

·       the proposed admission policy for nursery schools, schools with nursery classes and pre-reception classes, appendix 3

·       the proposed published admission numbers (PAN’s) for community and voluntary controlled schools as shown in appendices 4 (Primary) and 5 (Secondary)

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)

Recommendation:

That the Executive consider the 2023-2024 Pay Policy and recommend to County Council, at their meeting on 22 February 2023, the approval of the Pay Policy for publication.

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.

Recommendation:

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.

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.

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.