Agenda and minutes

To note the names of apologies given and deputy members who are attending the meeting in place of appointed members.

Apologies for the meeting were noted as above.

To receive any disclosure of interests from Members and Officers in matters to be discussed.

Note:  Councillors are reminded of their obligations to declare disclosable pecuniary interests, personal and/or prejudicial interests in accordance with legislation and the Council’s Code of Conduct.      

If you require advice, please contact the appropriate Democratic Services Officer, prior to the meeting.

Councillor Scott declared a non-pecuniary interest regarding the agenda item “Housing Revenue Account (HRA) Business Plan and Budget Options”

as he was a Council housing tenant.

No announcements were made.

That the minutes of the meeting be signed as a correct record.

RESOLVED:

That the minutes of the previous meeting held on 6 September 2023 be approved and adopted.

To receive and note questions asked and statements made from members of the public on matters which fall within the remit of the Committee.

Members of the public and visiting councillors may speak at the committee, provided they have registered to speak three working days in advance.  Please complete this form (https://forms.office.com/r/Y87tufaV6G) by 5pm on 16 November 2023 or call (01962) 848 264 to register to speak and for further details.

Councillor Wallace addressed the committee regarding agenda items “Housing Revenue Account (HRA) Business Plan and Budget Options “and

“Q2 Finance & Performance monitoring” and his contributions were captured within the agenda items below.

RECOMMENDATIONS:

That:

1.             It is recommended that the committee comment on the proposals within the attached Cabinet Report, ref CAB 3432.

2.             It is noted that the committee will be presented with the detailed Housing Revenue Account report at its meeting on the 6th February 2024 prior to Cabinet on the 8th February 2024 and Full Council on the 22nd February 2024.

Councillor Westwood, Cabinet Member for Housing introduced the report, ref CAB3432 which set out proposals for the Housing Revenue Account (HRA) Business Plan and Budget Options, (available here) and which could be summarised as follows.

1.    That an unprecedented financial challenge was being faced in the Housing Revenue Account (HRA).

2.    That the HRA operated as a ring-fenced landlord account for social housing provision and that financial sustainability was needed to ensure rents and service charges covered expenditure.

3.    That the HRA had a 30-year financial planning horizon, requiring a viable business plan and that the period faced high inflation and increased building costs affecting housing provision.

4.    That over £45,000,000 was being invested in retrofitting council homes for energy efficiency.

5.    Prioritisation was crucial to deliver value and improve existing housing and new energy-efficient homes.

6.    Members were being presented with a sustainable business plan involving investments and targets.

7.    Business planning occurred annually, adapting to economic changes for viability.

8.    Surplus assets would be considered for disposal to fund greener housing initiatives.

9.    That investments aimed at digitising processes for customers were being made.

The committee was recommended to comment on the proposals within the report, ref CAB3432 which had been considered by the cabinet at its meeting on the 21 November 2023. These comments and any resolution of the committee would be tabled at the Cabinet Member Decision Day on the 4th of December 2023.

The report contained 14 recommendations, which covered a range of issues including the following:

1.    It introduced the draft HRA Business 30-year Plan for the period 2023-24 to 2052-53 with specific metrics detailed in Appendix 1.

2.    It sought approval for budget options specified in the report. It highlighted a proposed additional investment of £30 million over eight years until 2030-31 for retrofitting properties aimed at enhancing energy efficiency in council housing.

3.    It discussed strategic changes from direct home delivery to acquiring affordable housing from developers and utilising Right to Buy resources.

4.    It noted the financial assessment for new build sites, proposed adjustments in rent rates for viability, set revenue savings targets, and outlined plans for property disposal and cost recovery initiatives.

5.    It acknowledged ongoing evaluations of the housing management system and procurement plans, ensuring the sustainability of the 30-year plan to deliver affordable housing goals.

The committee was advised that recommendation number 9 of CAB3432 had been amended at the cabinet meeting and was now: “That, subject to consultation, the terms of individual leases and a review of costs, the move to full cost recovery for private connections of the council’s sewage treatment works be approved and note that this will include transitional protection and be achieved within a five-year timeframe.”

Councillor Wallace addressed the committee and raised several matters which could be summarised as follows:

1.    He noted that there was a plan in Appendix 1 to increase the debt turnover ratio by almost 50% from .21 and 2023/24 to .30 in 2031/2032  ...  view the full minutes text for item 6.

RECOMMENDATIONS:

That:

1.    It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, which can then be considered by cabinet prior to its meeting in February 2024.

2.    It is noted that the committee will be presented with an updated General Fund Budget report at its meeting on the 6th February 2024 prior to Cabinet on the 8th February 2024 and Full Council on the 22nd February 2024.

Councillor Cutler, Deputy Leader and Cabinet Member for Finance & Performance introduced the report, ref CAB3430 which set out proposals concerning the General Fund Budget Options & Medium-Term Financial Strategy (available here). The introduction included the following points.

1.    The public sector faced significant financial challenges and demand pressures, with many upper-tier and unitary authorities warning that they might have to issue section 114 notices in the near future. Moreover, 52% of district councils were warning that they would have to utilise reserves to produce a balanced budget. The City Council's immediate financial position until 2026 was sound and stable, outlined in a strategy to manage limited financial resources to protect the core Council service.

2.    However, the medium-term Financial Plan in Appendix 1 showed a projected annual budget shortfall of £3.4 million per annum, increasing to £5.7 million in 2029.

3.    There was an increased deficit over the medium-term financial strategy published last year. The gap reported primarily resulted from new responsibilities placed on district councils, particularly focusing on significantly increasing recycling rates.

4.    There was a window of opportunity to steer the Council towards financial sustainability in the future, and robust measures were being put in place to address medium-term budget challenges.

5.    The paper outlined some aspects of TC25, an organisation-wide transformation program aimed at delivering changes and achieving £3.5 million in savings within three years. The aim was to transform services to save money, digitise, and reduce the carbon impact of service delivery. Efforts were being made to make services more accessible, simplifying online access while enabling the majority of customers to access services as required.

6.    Investments were planned to digitise and modernise services, alongside allocating additional funding to address unavoidable budget pressures like providing temporary accommodation.

7.    The paper also detailed assumptions concerning service income budgets, emerging capital budgets, and the adequacy of reserves.

The committee was recommended to comment on the proposals within the attached report, ref CAB3430 which had been considered by the cabinet at its meeting on 21 November 2023. Comments and any resolution of the committee would be tabled at the Cabinet Member Decision Day on the 4^th of December 2023.

The report contained several recommendations, which covered a range of issues including the following:

1.    To note the assumptions outlined in Section 13 of the report and the projections detailed in Appendix A.

2.    To approve the Medium-Term Financial Strategy in Sections 13 to 17 of the report.

3.    To approve the preparation of a detailed budget to present to the Council in February 2024. This budget would be based on the assumptions from the Medium-Term Financial Strategy, final spending review announcements, and specific options including financial allocations for carbon reduction, digital transformation, service funding adjustments, Council Tax increase, and reserve establishment.

4.    To approve an inflationary increase in the Waste Collection contract cost, necessitating a corresponding CPI rate increase to Garden Waste subscriptions from March 2024 onwards, resulting in charges rising to £45 for small bins and  ...  view the full minutes text for item 7.

RECOMMENDATIONS:

That the Scrutiny Committee:

1.             Notes that the Performance Panel met on the 7 November 2023 to scrutinise the attached report, CAB 3424 and its associated appendices. The notes of the panel’s meeting are included as an appendix of the Cabinet report.

2.             Notes that a verbal update will be provided at the Scrutiny Committee.

3.             Raises with the Leader or relevant Cabinet member any issues arising from the information in this report, ref CAB 3424, which is being presented to Cabinet on the 13 December 2023 and considers whether there are any items of significance to resolve or to be drawn to the attention of Cabinet.

Councillor Cutler, Deputy Leader and Cabinet Member for Finance and Performance introduced report CAB3424 outlining the Q2 2023/24 Financial And Performance Monitoring report (available here).

The report covered financial updates, a summary of Council progress, and the refreshed key performance indicators adopted in December. It also encompassed reports for each Tier 1 project.

Councillor Horrill, Chairperson of the Performance Panel, provided an overview of the 7 November 2023 meeting of the Performance Panel. Key points highlighted were:

1.    The panel conducted a detailed review of the Q2 report.

2.    Officers agreed to respond to several meeting questions, with most responses received.

3.    The Performance Panel recommended to the Scrutiny Committee that the panel should contribute to the annual review of Key Performance Indicators, as detailed in the 7 November 2023 meeting notes.

The committee was recommended to raise any issues arising from the information in this report, ref CAB 3424, which was being presented to Cabinet on 13 December 2023 and to consider whether there were any items of significance to resolve or to be drawn to the attention of Cabinet.

Councillor Wallace addressed the committee and raised several matters which could be summarised as follows:

1.    He identified conflicting carbon emission targets for 2023 (1873 tonnes on page 114 and 3750 tonnes on page 129).

2.    He requested access to the Carbon Neutrality Board minutes and details of the solar canopy project.

3.    He believed there were conflicting key performance indicators (green on page 132 and amber on page 138) regarding a funding bid's success.

4.    He was concerned about the absence of the Hampshire County Council carbon assessment tool in the current report.

5.    He acknowledged report improvements but suggested further simplification and shortening of the report.

The committee proceeded to ask questions and debate the report. In summary, the following matters were raised.

1.    An update on item 7 from the Performance Panel meeting notes (income split from garden waste and car parking).

2.    The recirculation of the Performance Panel notes reflecting responses to raised questions.

These points were responded to by Sharon Evans, Strategic Director and Monitoring Officer and were noted by Councillor Cutler, Deputy Leader, and Cabinet Member for Finance & Performance;

RESOLVED:

1.    The Performance Panel to contribute to an annual review of Key Performance Indicators, focusing on TC1, TC2, TC7, and TC8 as referenced in the meeting notes.

2.    The meeting notes would be updated to include received responses.

3.    Councillor Wallace would provide further details on report discrepancies and suggestions for report simplification.

Sharon Evans, Strategic Director & Monitoring Officer; introduced the report, ref SC091 regarding the Determination Of Call-In Request, (available here). The introduction included the following points.

1.    That a Call-In Notice was received on 21 September 2023 regarding a decision made at the Cabinet meeting on 13th September 2023 (report reference CAB3423).

2.    The Monitoring Officer reviewed the Notice against call-in grounds specified in the Constitution.

3.    The call-in request was not accepted, communicated to the Chair of the Scrutiny Committee and signatories.

4.    That the constitution required that when a Call-In Notice was not accepted, the Monitoring Officer would present a report at the next available Scrutiny committee meeting explaining the request and reasons for non-acceptance.

The committee was recommended to note the contents of this report and proceeded to debate the report and discuss matters relating to transparency in the council's decision-making process. These points were responded to by Sharon Evans, Strategic Director, and Monitoring officer accordingly.

RESOLVED:

1.       That the report was noted.

The latest version of the committee work programme can be found here: https://democracy.winchester.gov.uk/mgPlansHome.aspx?bcr=1

The committee discussed the future work programme and the forward plan of key decisions and raised several points which included

1.    Whether future decisions relating to the local plan, and regeneration projects would be tabled at a future meeting of the Scrutiny Committee.

2.    Regarding an item in the December 2023 Forward Plan, clarification was sought on whether the property disposal is related to the general fund or part of the Housing Revenue Account.

3.    Regarding an item in the December 2023 Forward Plan, clarification was sought on whether the Park & Ride Bus Contract renewal and the Property disposal item affected more than the wards stated in the forward plan.

The Chairperson advised that she had met with the Chief Executive, and the Monitoring Officer, to review the upcoming items of business through to the end of January 2024. It was agreed that there were no key decisions requiring Scrutiny to be added to this agenda. She advised that she would meet regularly with the Chief Executive and Monitoring officer to review this and that other items may be included as required.

RESOLVED

1.    That the December 2023 Forward Plan of Key Decisions and the Work programme be noted.

2.    That officers respond to points 2 and 3 above.

That the latest version of the work programme (which can be found here https://democracy.winchester.gov.uk/mgPlansHome.aspx?bcr=1 ) be noted.