Meeting documents

73 WELCOME AND INTRODUCTIONS

The Chair was taken by Councillor Francine Haeberling, Leader of the Council.

The Chair welcomed everyone to the meeting.

74 EMERGENCY EVACUATION PROCEDURE

The Chair drew attention to the emergency evacuation procedure as set out on the Agenda

75 APOLOGIES FOR ABSENCE

There were none.

76 DECLARATIONS OF INTEREST UNDER THE LOCAL GOVERNMENT ACT 1972

Councillor Malcolm Hanney declared a personal and non-prejudicial interest relating to Agenda Items 7, 12 and 13, as Chair of the Primary Care Trust.

77 TO ANNOUNCE ANY URGENT BUSINESS AGREED BY THE CHAIR(PERSON)

There was none.

78 QUESTIONS FROM PUBLIC AND COUNCILLORS

There were 5 questions from the following people: Councillors Nicholas Coombes, Nathan Hartley, Sarah Bevan, Caroline Roberts (2)

[Copies of the questions and responses, including supplementary questions and responses if any, have been placed on the Minute book as Appendix 1 and are available on the Council's website.]

79 STATEMENTS, DEPUTATIONS OR PETITIONS FROM PUBLIC AND COUNCILLORS

Fabian Richter made a statement [a copy of which is attached to the Minutes as Appendix 2] in which he referred to the problems experienced by residents because of all-day parking by employees at Bath Royal United Hospital.

80 MINUTES: WEDNESDAY 14^th January 2009

On a motion from Councillor Francine Haeberling, seconded by Councillor Charles Gerrish, it was

RESOLVED that the minutes of the meeting held on Wednesday 14^th January 2009 be confirmed as a correct record and signed by the Chair(person)

Councillor Charles Gerrish referred to a matter arising from Minute 68 (Local Development Scheme Review). He had said at the previous meeting that he anticipated the issue being discussed at Council in June; but he had since received information which suggested that the timing of the Government response might oblige the Council to delay its considerations until July. He asked members to note this.

81 CONSIDERATION OF SINGLE MEMBER ITEMS NOW REQUISITIONED TO CABINET

There were none.

82 CONSIDERATION OF MATTERS REFERRED BY OVERVIEW AND SCRUTINY BODIES

The Chair invited Councillor David Dixon, Chair of Corporate Performance & Resources Overview & Scrutiny Panel, to report to Cabinet the outcome of the Panel's recent consideration of the Budget.

Councillor Dixon presented the Panel's submission, [a copy of which is attached to the Minutes as Appendix 3 and copies of which had been provided in the public gallery before the meeting]. He thanked the Cabinet member for Resources, and his officers, for their excellent presentation to the Panel. He drew the Cabinet's attention in particular to the Liberal Democrat Group proposals; the Labour Group proposals; the paper showing the conclusions and resolutions from other O&S Panels; and the 3 comments which had arisen from the Panel's considerations.

The Chair asked the Cabinet to bear in mind Councillor Dixon's comments when considering Agenda Item 13 later.

83 SINGLE MEMBER CABINET DECISIONS PUBLISHED SINCE PREVIOUS CABINET MEETING

The Cabinet noted the report.

84 BATH & NORTH EAST SOMERSET COUNCIL CORPORATE PLAN REFRESH (Report 12).

Councillor Adrian Inker made a statement [a copy of which is attached to the Minutes as Appendix 4] in which he welcomed the proposals in the Corporate Plan to mitigate the effects of the recession. The Labour Group wished to emphasise its commitment to increasing social housing in the area. He was pleased to see the priority was being maintained in the Cabinet's proposals but said that this must be reflected in actual homes being built. He also repeated the Labour Group's view that the Council must remain focussed on the priority needs at youth hot-spots.

Councillor Francine Haeberling, in proposing the item, said that the Corporate Plan had been updated using the existing agreed Council's priorities taking into account emerging issues.

Councillor Malcolm Hanney seconded the proposal reminded the Cabinet that the updated Plan had needed to recognise the changing economic circumstances. He acknowledged Councillor Inker's comments about affordable housing; he felt that the delayed comments from Government about the Regional Spatial Strategy indicated that new problems had been identified. He felt that the only way to achieve the targets for social housing would be by means of s.106 agreements.

Rationale

The Corporate Plan refresh took account of a robust evidence base of the issues facing Bath & North East Somerset over the next few years. This evidence base compared issues from the whole framework of the Social, Environmental and Economic spectrum. It was shared with partners and was considered alongside evidence of existing performance in order to set out the issues on which the Council wishes to focus more of its time and resource.

Other Options Considered

The key measures and targets were developed looking at a range of issues and a judgement has been made based on the rationale above to focus on the proposed indicators as areas where we need to have greatest impact over the time of the plan period.

On a motion from Councillor Francine Haeberling, seconded by Councillor Malcolm Hanney, it was

RESOLVED (unanimously)

(1) To recommend the refreshed Corporate Plan 2008-11 (incorporating the Medium Term Financial Plan) to full Council for adoption as a Policy and Budget Framework item.

85 FINANCIAL PLAN 2009/10 - 2011/12, BUDGET AND COUNCIL TAX 2009/10 (Report 13).

Councillor Paul Crossley made a statement [a copy of which is attached to the Minutes as Appendix 5] in which he presented the Liberal Democrat Budget proposals. He appealed to Cabinet to consider other options rather than new-build for the Council's office accommodation; to increase local working to improve engagement; and to set up a fund to provide home efficiency grants.

Councillor Colin Darracott made a statement [a copy of which is attached to the Minutes as Appendix 6] in which he regretted that the Cabinet's proposed budget was based only on numbers and not on the needs of the local community. He suggested that one way to mitigate the effects of the recession would be for the Council to move towards more prompt payment of invoices. The proposed budget made no mention of apprenticeships, which he regretted. He appealed to the Cabinet to re-designate some of the "Reserves" funds as "economic contingency" funds to allow them to be used more readily. He felt that a strenuous Council programme would have a positive effect on the local economy.

Councillor Caroline Roberts made a statement [a copy of which is attached to the Minutes as Appendix 7] in which she expressed her bitter disappointment over the lack of extra funding for street cleaning and the deferment of kitchen waste collections. She also regretted that no budget had been identified for 20mph zones.

Councillor Dave Dixon made a statement [a copy of which is attached to the Minutes as Appendix 8] in which he said that the Liberal Democrat proposals were fully costed and demonstrated a shift of resources to deliver the services that matter to local residents, while still reining in the rises in Council Tax over a 3-year period.

Councillor Steve Hedges made a statement [a copy of which is attached to the Minutes as Appendix 9] in which he highlighted the Liberal Democrat proposal to allocate £200k per year for 3 years to combat antisocial behaviour. He mentioned in particular the initiative by local residents in Odd Down to set up a community association after the Cabinet had closed the Odd Down Youth Club.

Councillor Tim Ball made a statement [a copy of which is attached to the Minutes as Appendix 10] in which he said that £500k should be allocated over 3 years to detached youth workers and £100k to secure the future of The Hut crèche facility in Twerton. He opposed the transfer from Council funds of £1m per year to make up the Pensions deficit. He also proposed a cut in the Council's Communications department which he felt had become politicised.

Councillor Andy Furse made a statement [a copy of which is attached to the Minutes as Appendix 11] in which he welcomed the "good" rating for the Council's Youth Service but felt that the Youth Service was still failing to engage with disaffected youth. He also commended the Liberal Democrat proposals to provide "home to school" transport which he said would reduce congestion and help parents during the economic difficulties.

Councillor Adrian Inker made a statement [a copy of which is attached to the Minutes as Appendix 12] in which he recommended the proposals put forward by the Labour Group. He acknowledged the need to avoid a large Council Tax increase but stressed that the council must deliver good services to its residents. He appealed to the Cabinet in particular to allocate £20k to provide free concessionary internet access in libraries; £25k as a one-off cost to investigate youth homelessness; and £30k to increase the number of detached youth workers. He also felt that the costs of transport to secondary schools should be considered. He appealed to the Cabinet to ensure that the extension of Council Connect services to act as an access point for Social Services assessments would be properly funded.

Councillor John Bull made a statement [a copy of which is attached to the Minutes as Appendix 13] in which he appealed to the Cabinet to allocate £20k for allowing free internet usage in libraries because the existing list of free websites was too narrow and did not fully meet the needs of users of the service. He said that the costs of this could be allocated out of the 'headroom' funds already identified in the Cabinet's proposals.

Councillor Dr Eleanor Jackson made a statement [a copy of which is attached to the Minutes as Appendix 14] in which she reminded the Cabinet how easy it might be to lose sight of the impact their proposals would have on real people. She commended the Labour Group proposals to fund a research officer on homelessness, which would cost £25k. She supported the £3M identified in the budget to contribute towards a replacement hostel in Bath. She also commended the Labour Group proposal for free internet use in libraries, because it would help students to find a job or a college course.

David Redgewell made an ad hoc statement in which he drew the Cabinet's attention to the submission previously provided for the Cabinet's consideration [a copy of which is attached to the Minutes as Appendix 15].

Councillor Malcolm Hanney, in proposing the item, said that the report before Cabinet was the most comprehensive set of budget papers in his experience. He referred to the updated papers [copies of which had been made available in the public gallery before the meeting]. These were:

Councillor Hanney welcomed the realism of the Labour Group's proposals. He said that he was pleased to be able to allocate the requested £20k for internet use and £25k for the homelessness investigation. The Labour Group request for £30k for detached youth workers would be referred to the Cabinet member for Children's Services for his consideration. He assured the Labour Group that adequate funding would ensure that the successful expansion of Council Connect to deliver Social Services assessments.

Since the Liberal Democrat Group had now said they were against the proposed new office build, Councillor Hanney said that it was not clear what they were in favour of - since the other options could not deliver the environmental benefits of a new building. He defended the Council's decision to top up the underfunded pensions scheme and pointed out that private sector companies would be required to top-up their underfunded schemes. He felt very strongly that the Liberal Democrat waste proposals would not be cost effective; and reminded the meeting that the Liberal Democrat Group had been part of the administration which had agreed to reduce funding of the Youth Service. He also pointed out that the cost of paying invoices in 14 days would not be only the loss of interest - but that there would be an additional administrative cost. Home Energy schemes were quite properly the responsibility of government, not of local councils so he rejected the Liberal Democrat proposals.

Finally, Councillor Hanney said that his proposed budget was balanced, costed, sound and prudent. He recommended it to Cabinet.

Councillor Francine Haeberling seconded the budget proposals. She informed the meeting that the Cabinet would note the comments received from the O&S Panels, from the other political Groups, and from individuals. She anticipated that the alternative proposals would be debated at Council only if Council indicated its collective wish to do so. She said that no action would be taken except those already listed in Annex 2B.

Councillor Chris Watt objected to the suggestion made by Councillor Steve Hedges that children from low income families would inevitably behave badly. He agreed that there was a need to continue the pressure for more funding to go to front-line youth services rather than management; and was pleased to say that the balance had improved to 30:70 (from 50:50 two years ago). The policy was still in operation that all new funding for the youth service would be directed towards engagement with young people and he welcomed the calls for an increase in detached youth workers.

He referred to the Liberal Democrat proposals on Home to School Transport and said that the effect of implementing in full would be a 12.8% increase in Council Tax.

Councillor Charles Gerrish noted that the alternative budgets did not contain any proposals to address climate change issues. He had been horrified to hear Councillor Darracott's proposals that the Council should borrow more in order to help the local economy - he stressed on the contrary that borrowing must be curtailed. Nor did he agree that the Council had been unsupportive of the apprenticeship scheme - he was aware of 4 apprentices in the Parks Department which he felt was a positive step.

Councillor Gerrish also said that it was not feasible to allocate more funds to street cleansing, above the £54k which had already been allocated from headroom funds - he was awaiting the results of the review before considering any further commitment. He pointed out that in Annex 2B, the wording "Reduction in parking charges proposed" of £150k should read as "Mitigation of Parking Charge increases".

Councillor Vic Pritchard acknowledged Councillor Hedges' concern about antisocial behaviour and reminded the meeting that a team had been set up in November to look into this and was fully funded in the budget. He said that, of the funding allocated for the replacement hostel in Bath, two awards of £2.5M and £2M had been pledged by government and up to £3M still needed funding by the Council.

Councillor Hanney in summing up said that the government would not bail out Councils whose pensions were not fully funded. Nor would government fund the costs of home-to-school transport. The Council was meeting the statutory requirements regarding home-to-school transport and could not commit to further funding.

Rationale

The Council is required to set a Budget each year.

Other Options Considered

None.

On a motion from Councillor Malcolm Hanney, seconded by Councillor Francine Haeberling, it was

RESOLVED (unanimously)

To recommend to Council:

(1) That the Council approve:

a) The General Fund net revenue budget for 2009/10 of £123.261m and the associated Council Tax increase of 3.50%.

b) That no Special Expenses be charged other than Town and Parish Council precepts for 2009/10.

c) The working balances statement at Appendix 2 Annex 4 with un-earmarked revenue balances set at £10.685m, which is at the target risk-assessed level.

d) The individual service cash limits for 2009/10 contained in Annex 1 to the budget proposal.

e) That proposals for use of the `one off' and invest to save funding provisionally allocated as set out in Appendix 2 Annex 2, be subject to final agreement of the Cabinet Member for Resources in consultation with the Chief Executive and s151 Officer, and agrees the parameters and criteria as set out in Appendix 2 Section 1E.

f) That the remaining 'headroom' be allocated as set out in Appendix 2 Annex 2B, including use of the proposed initial drawdown from the Exceptional Risk Reserve - Recession Reserve of £220k.

g) The Adult Social Services fees and charges as set out in Appendix 2 Annex 7, and note that other decisions on fees and charges are delegated to officers, in consultation with the relevant Cabinet Member, on the basis that increases will be in line with the guidelines set out in section 1 paragraph H of Appendix 2.

(2) That the Council include the Local Precepts of Town Councils, Parish Councils and the Charter Trustees of the City of Bath, and those of the Fire and Police Authorities in its Council Tax setting.

(3) That the Council acknowledges the Section 151 officer's report on the robustness of the proposed budget and the adequacy of the Council's reserves (Appendix 2, Annex 5) and approves the conditions upon which the recommendations are made as set out throughout Appendix 2.

(4) That in relation to the capital budget the Council:

(5) That the Council agree that any grant allocation to Council under the Local Authority Business Growth Incentive Scheme be treated as an additionto the Exceptional Risk Reserve - Recession Reserve.

(6) That the Council note the O&S review of Medium Term Service and Resource Plans and 2009/10 Service Action Plans and instructs the relevant officers to finalise and publish their Medium Term Service and Resource Plans and Service Action Plans by end of March 2009, in consultation with the relevant Cabinet Member and in light of feedback from the O&S review, and in line with the cash limits set out in Annex 1 of Appendix 2, unless amended under (7) below.

(7) That the Council authorise the Divisional Director - Finance, in consultation with the Cabinet Member (Resources) to amend the cash limits set out in Annex 1 of Appendix 2 to take account of the final re-allocation of budgets in respect of the actual pay award, any inflation adjustments or other minor technical items when these are known.

(8) That in light of the likely medium term funding gaps arising from pressures on public sector spending generally, the Council instruct the Strategic Directors Group to work on ideas for reducing the overall cost base of the Council's services in order to protect essential service delivery into 2010/11 and beyond, with initial feedback in July 2009, recommending actions to pursue in this and future years.

That Cabinet agrees:

(9) To authorise the Council's s151 Officer in consultation with the Cabinet Member (Resources), to drawn down on the exceptional risk reserve, if required, consistent with the purposes set out in Section 3 of Appendix 2 to this report.

(10) To authorise the Council's s151 Officer in consultation with the Cabinet Member (Resources), to decide whether the provision for increased pension contributions in 2009/10 should be held as an earmarked reserve as currently contemplated or actually paid over as increased contributions to the Avon Pension Fund.

(11) To authorise the Divisional Director - Finance, in consultation with the Cabinet Member (Resources), to make any necessary presentational improvements to the draft Budget Proposal prior to submission to Council.

To recommend to Council:

(12) That the Council note the funding within the budget proposal of £20k per annum to fund the free concessionary Internet usage following its approval of Councillor Speir's resolution on this issue in September 2008.

(13) That the Council note the allocation from headroom of £35k in 2009/10 rising to £186k per annum by 2011/12 in respect of potential debt charges arising from the 'places for change' project (to enhance facilities for the homeless in Bath) should it be necessary for the Council to match the £2.5M from the Department for Communities and Local Government and Local Government and any further external capital contributions, eg from the Homes and Communities Agency, with a Council capital contribution up to £3M.

(14) That the Council note the allocation from headroom of £25k in 2009/10 for Youth Homelessness which is as proposed in the Labour Group Budget amendment notified to CPR O&S on 2 February 2009.

(15) That the Council note the measures already being taken or which are planned to be taken by the Council in response to the recession, as set out in the Corporate Plan, and the additional funding set aside in the allocation of headroom and through the creation of and proposed uses of the "Recession Reserve".

86 TREASURY MANAGEMENT STRATEGY STATEMENT AND ANNUAL INVESTMENT STRATEGY 2009/10 (Report 14).

Councillor Malcolm Hanney, in proposing the item, praised the hard work done by finance officers. Their sound advice had left the Council well positioned for the difficult times ahead.

Councillor Francine Haeberling seconded the proposal.

Rationale

The report is a statutory requirement.

Other Options Considered

None.

On a motion from Councillor Malcolm Hanney, seconded by Councillor Francine Haeberling, it was

RESOLVED (unanimously)

(1) To approve the actions proposed within the Treasury Management Strategy Statement;

(2) To approve the proposed borrowing and debt rescheduling strategy;

(3) To approve the proposed investment strategy;

(4) To approve the proposed changes to the authorised lending lists;

(5) To approve the proposed policy on Minimum Revenue Provision and depreciation of assets, noting that it is the same as the approved 2008/09 policy.

(6) To note the Prudential Indicators and to delegate authority for updating the indicators prior to approval at Full Council on 17th February 2009 to the Divisional Director - Finance and Cabinet Member for Resources, in light of any changes to the recommended budget as set out in the Budget Report.

87 LEARNING AND SKILLS MACHINERY OF GOVERNMENT (Report 15).

Councillor Paul Crossley made an ad hoc statement expressing his concern that no consideration had apparently been given to the option of the Council delivering the service itself. The seemingly unstoppable move to "Avon" was leading to a lack of scrutiny which he found very regrettable. If possible, he appealed to the Cabinet to reconsider its position and to give serious consideration to in-house provision.

David Redgewell made an ad hoc statement welcoming sub-regional partnership and encouraging the Cabinet to adopt the proposals.

Councillor Dr Eleanor Jackson made an ad hoc statement saying that she agreed with David Redgewell. She felt that many modern issues, including homelessness and employment issues, had no boundaries and needed a sub-regional approach. The proposals being considered would have a direct impact on these issues, particularly for young people.

Councillor Chris Watt, in proposing the item, thanked Councillor Crossley for his observations, which he agreed with. He found himself however unable to propose an in-house solution because he felt that government would then impose a regional solution to learning and skills, which would be even less suitable than the sub-regional solution being proposed. He referred to paragraphs 5.3 and 5.4 of the report, which made it clear that if the DCSF did not accept the Council's proposed arrangements, the responsibility would pass to the Regional agency. For this reason, he felt there was no option but to pursue the sub-regional solution.

Councillor Malcolm Hanney seconded the proposal.

Rationale

The report outlines legislative changes now in train which will impact upon all local Authorities and suggests a way forward for Bath and North East Somerset subject to thorough risk appraisal.

Other Options Considered

None.

On a motion from Councillor Chris Watt, seconded by Councillor Malcolm Hanney, it was

RESOLVED (unanimously)

(1) To agree in principle to the establishment of a sub regional arrangement across the West of England to address the transfer of the Learning and Skills Council's 16-18 commissioning responsibilities to Local Authorities in 2010;

(2) To agree, in principle, that the sub regional arrangements should be in the form of a shared service subject to a fuller financial, personnel, legal, risk appraisal;

(3) To agree that officers from the four Local Authorities should be authorised to submit the necessary proposals to the Government Office South West by 27 February;

(4) To authorise officers from the four Local Authorities, in consultation with the West of England Learning and Skills Council and key provider stakeholders to explore the options for a shared service and report back to the Leaders at the earliest possible opportunity;

(5) That the Leader of the Council will determine the way forward in due course, including whether or not a joint executive committee is appropriate (and if so agreeing its constitution) and the scope of any functions to be delegated;

(6) To delegate to the Head of Legal & Democratic Services, in consultation with the Leader, the approval of the terms of any Joint Working Agreement.

The meeting ended at 18:43

Chair(person)

Date Confirmed and Signed