Councillor Janette Williamson announced that the Council had been commended for an award at the National Social Value Award Conference for its work on its Care Leavers’ Apprenticeship Scheme. She thanked the Assistant Director – Commercial Management (Nicola Butterworth) for the fantastic work she had carried out on this important initiative.

Councillor Phil Davies informed that this achievement was terrific news that the Council was now facilitating care leavers to obtain apprenticeships.  He was aware that Councillor Bernie Mooney had been involved with this work, this would be built upon and more work would be carried out.  Councillor Davies thanked everyone concerned.

Members of the Cabinet are asked to consider whether they have any disclosable pecuniary and/or any other relevant interest, in connection with any item(s) on this agenda and, if so, to declare them and state the nature of the interest.

Councillor Anita Leech declared a personal and prejudicial interest in Item No. 11 on the agenda – Council Tax 2019/20 (Tax Base, Discounts, Exemptions and Council Tax Scheme) (Minute No. 39 refers) by virtue of her being a Board Member of the Prima Group.  She informed that she would be leaving the meeting whilst this item of business was under discussion.

RESOLVED:

That the Minutes of the meeting of Cabinet held on 1 October 2018 be confirmed as a correct record.

Key Decisions – taken under delegated powers. Period 21 September, 2018 (date of publication of last Cabinet agenda) to date.

Decision Maker – Cabinet Member – Environment

The Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018

(Executive Member Decision Form attached).

RESOLVED:

That the following Key Decisions taken under delegated authority from the period 21 September 2018 (date of publication of last Cabinet agenda) to date be noted:

Key Decision – taken under delegated powers.  Period 21 September, 2018 (date of publication of last Cabinet agenda) to date.

Decision Maker – Cabinet Member – Environment

The Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018

Effective 25 October 2018.

Councillor Angela Davies introduced a report by the Subject Matter Expert: Assets, the purpose of which was to initiate an extensive consultation programme to support the development of Birkenhead Commercial District.  The Cabinet noted that this development was intended to drive the wider regeneration of Birkenhead through the provision of 300,000 square feet of Grade An office space with 70% destined for private sector occupancy together with a new leisure and market offer.  The consultation would shape how and when these developments  ...  view the full minutes text for item 32.

Councillor Phil Davies introduced a report by the Assistant Director – Community Services that informed that the Council provided extensive leisure, recreation, cultural, open space and library services. The cost to the Council of delivering these services was £17 million, when income from external funding was taken into account. The Council faced significant budget savings due to the removal of the revenue support grant and needed to review how services could be delivered effectively whilst reducing costs, especially for discretionary services.

The Cabinet noted that over the past year the Council had undertaken a detailed review of Leisure and Cultural Services to try and find ways of transforming these services to make them more sustainable, flexible and appropriate. The Council did not wish to be in a situation where it needed to consider closing or reducing services in order to balance its budget. The Council’s preference was for a model which allowed for discretionary services to generate their own funds so they could grow. There was no legal requirement for the Council to provide a theatre service either directly or indirectly.

It was reported that the Floral Pavilion currently cost the Council £899,300 per year to keep open. As a mid-scale (800 seat) receiving theatre, the Floral Pavilion was limited as to the performances it may attract, the percentage of ticket sales it may retain and the income it may generate. Whilst the Council could and would continue to develop new commercial opportunities within the facility – extended bar opening and maximising secondary spend, reviewing programming, developing marketing campaigns to attract new conference and wedding business among others; it was not thought that the Council could get the subsidy to ‘£0’ within the medium term using the  ...  view the full minutes text for item 33.

Councillor Phil Davies introduced a report by the Assistant Director – Community Services which informed that the Council provided extensive leisure, recreation, cultural, open space and library services.  The cost to the Council of delivering these services was £17 million, when income from external funding was taken into account.  The Council faced significant budget savings and needed to review how services could be delivered effectively whilst reducing costs, especially for discretionary services.

The Cabinet noted that over the past year the Council had undertaken a detailed review of its Leisure and Cultural Services to try and find ways of transforming them, to make them more sustainable, flexible and appropriate. The Council did not wish to be in a situation where it needed to consider closing or reducing services in order to balance its budget.

It was reported that the Council ran three 18 hole golf courses, one 9 nine hole golf course and two ‘fun courses’ (Pitch & Putt and Crazy Golf). The operational revenue cost of municipal golf in Wirral in the financial year (2018/19) was £255k (£430k if the current overspend was included).  The Cabinet noted that a number of reviews of Council golf provision had been undertaken in previous years which had identified the requirement for significant capital investment in courses in order that they remained playable. The Cabinet also noted that the current service model for this service was, therefore, financially unsustainable.

The Cabinet was informed that whilst the Council was working with Celtic Manor on developing options for the Hoylake Municipal Golf Course there were also opportunities to seek alternative providers for the remainder of the Council’s golf courses. A number of options for the future delivery of the golf courses had been considered as follows:

·  No change - retain golf courses ‘in house.’ Whilst the courses had been managed in house in the  ...  view the full minutes text for item 34.

Councillor Janette Williamson introduced a report which set out the projected revenue position for 2018/19 as at the end of Quarter 2. (30 September 2018).

The Cabinet noted that the forecast outturn position as at the end of Quarter 2 was a potential overspend of £0.907m. It was anticipated that mitigating savings could be identified to offset the potential overspend, however as these were yet to be formalised, it was prudent to report an overspend position.

Since the 2018/19 the budget was set in March 2018, there were several areas of significant pressure across the Council as a result of increasing demand and there was a robust mitigation programme in place to ensure these pressures did not materialise.

The report provided an update on the achievement of savings proposals for 2018/19, some of which were currently not being realised, however the Cabinet noted that areas to offset these via other means were being explored so that the total savings target could be met by the end of the year.

The Cabinet was made aware that in addition to its formal Quarterly report, the budget position was reported monthly at Directorate Management Team meetings and at Strategic Leadership Team meetings.  This was to ensure that any early warning highlighting pressures could be collectively resolved. The outcome of the quarterly monitoring and any medium to long term effects was fed into the Medium Term Finance Strategy to ensure the impact could be assessed against the Council’s future financial sustainability.

This was a key decision which affected all Wards within the Borough.

RESOLVED: That

(1)  the Quarter 2 forecast to the year-end of a £0.907m overspend which incorporated a number of adverse variances across the range of directorates, be noted;

(2)  officers be requested to continue to identify actions and take measures to effectively manage the overall budget and reduce the impact of any adverse projected pressures that may result in overspends; and

(3)  the change to the bottom line net budget in paragraph 3.2.2 of the report and as follows be referred to the Council for approval:  ...  view the full minutes text for item 35.

Councillor Janette Williamson introduced a report updating the Cabinet on the progress of the Capital Programme 2018/19 as at the end of September 2018.  It recommended that the Cabinet agreed the 2018/19 Capital Programme of £60.9 million which took account of re-profiling identified since June together with any additional funding requirements.  Expenditure to date was £16.3 million.

This matter was a key decision which affected all Wards within the Borough.

Appended to the report were:

·  Appendix 1 – The Capital Programme and Funding 2018/19; and

·  Appendix 2 – The Capital Receipts.

Councillor Bernie Mooney drew the Cabinet’s attention to the significant spending on schools that was detailed in the report at paragraph 3.6.  She welcomed the fact that the Council was putting children and their schools first.

Councillor Stuart Whittingham referred to the investment the Council was making in the highways network, cycling schemes and street lighting despite austerity.

RESOLVED: That

(1)  the spend at Quarter 2 of £16.3 million be noted;

(2)  additional funding for the schemes referred to in paragraph 3.9 of the report and below be noted:

·  Hoylake Golf Depot (3110,000)

·  Landican Crematoria (£280,000)

·  Williamson Art Gallery creation of an online catalogue (£150,000)

·  Leasowe Leisure Centre Outdoor 3G Pitches (£323,000)

·  Access Wirral (£250,000)

·  Early Voluntary Retirement/Voluntary Severance (£2,000,000)

(3)  Council be recommended to approve the revised Capital Programme of £60.9 million for 2018/19 as set out in Table 1 of the report and below:

  £000

Programme agreed by Cabinet on 16 July 2018  86,391

Re-profiling  (26,869)

Additional requirements  2,989

Reduced requirements  (1,563 )

  Revised 2018/19 Programme  60,948

  Table 1: Capital Programme 2018/19 at 30 September 2018

.

Councillor Janette Williamson reported that the Council’s treasury management activity was underpinned by CIPFA’s Code of Practice on Treasury Management (“the Code”), which required the production of annual Prudential Indicators and a Treasury Management Strategy Statement on likely financing and investment activity. The Code also recommended that Members were informed of treasury management activities at least twice a year.

The Cabinet noted that the report fulfilled the Council’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the Ministry of Housing, Communities and Local Government (MHCLG) Investment Guidance.

Proactive Treasury Management activity had resulted in:-

·  Estimated one-off savings in year of a minimum £1.1 million from reduced 2018/19 interest payments and management of the Council’s Capital Financing. The ongoing savings were being used to support the Council’s budget for 2019/20.

·  Due to the implementation of the Council’s revised Minimum Revenue

Provision (MRP) policy, approved by the Council in 2017/18, the charge the Council would pay in 2018/19 had reduced by £3.8 million compared to the charge scheduled under the original MRP policy. This reduction had been accounted for when setting the 2018/19 Budget. 

This matter affected all Wards within the Borough and the decisions to be made were key decisions.

Appended to the report were:

·  Appendix 1 – Prudential Indicators 2018/19; and

·  Appendix 2 – Revised Authorised Signatory List.

RESOLVED: That

(1)  the Treasury Management Mid-Year Report for 2018/19 be agreed; and

(2)  the revised Authorised Signatory List relating to Treasury Management activity be approved.

Councillor Phil Davies introduced a report which was part of the Council’s formal budget process as set out in its Constitution and in line with the legal requirements to set a balanced and sustainable budget for 2019/20.  The report presented an update on the Medium Term Financial Strategy (MTFS) agreed earlier in the year including details of the preparations for the following financial years.  The Cabinet was required to initiate and propose financial options to set the budget for next year.  The purpose of the report was to approve a set of proposals.

The Cabinet considered the following financial matters:

·  The approach to the preparation of the Council’s 2019/20 Budget.  It was anticipated that the Council would set a balanced budget in 2019/20 via increased income including that received from Council Tax, the implementation of a number of financial proposals that were included in Appendix 1 to the report and the use of one-off funding that would close the budget gap.

·  an update on the progress of the MTFS, a renewed version would be considered by the Cabinet in February 2019.

·  Details of the main financial challenges and changes that would occur in the next financial year.  The Council continued to face a funding gap projected at £45 million as a result of financial pressures and, in part, the planned reduction in Government grant.

This was a key decision which affected all Wards within the Borough.  ...  view the full minutes text for item 38.

Councillor Phil Davies introduced a report which brought together related issues regarding the proposed Council Tax Base for 2019/20 upon which the annual billing and Council Tax levels would be set; the proposed Council Tax Discounts including Local Discounts, exemptions for 2019/20 and the Council Tax Support Scheme to be used during 2019/20.  These needed to be approved by the Council by 31 January 2019.

The Cabinet noted that the Council Tax Base had to be set by 31 January each year and there are no other options. The Local Discounts, Exemptions and the Council Tax Support Scheme were reviewed annually and could be amended which would have a financial impact for the authority and this was detailed in the report.

RESOLVED: That it be recommended to the Council: That

(1)  the figure of 93,497.8 be approved as the Council Tax Base for 2019/20;

(2)  the level and award of each local discount for 2019/20 be:-

Wirral Women’s and Children’s Aid

To continue to award Wirral Women’s and Children’s Aid 100% discount.

Care Leavers’ Discount

To award Care Leavers the requisite amount to reduce their Council Tax liability to zero until they are 25, from 1 April 2019.  This remains unchanged from 2018/19.

Empty Property Discounts

Discount category D = 0% Full charge on properties undergoing renovations

Discount category C = 0% Full charge on empty properties from date they become unoccupied.

Both remain unchanged.

Empty Property Premium = 200%.  Unfurnished properties empty for more than two years.  This is a change from 150% in 2018/19 allowed by the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018.

This change was reported in last year’s report.

Council Tax Discretionary Relief Scheme

The Council Tax Discretionary Hardship Relief Scheme continues in its current format for 2019/20.

Council Tax Support Scheme

(3)  the Council Tax Support Scheme be approved for use in 2018/19 be also approved as the Scheme for 2019/20 with additional amendments to incorporate the introduction of Full Service for Universal Credit, including backdating of reduction for up to 3 months.

Councillor Janette Williamson introduced a report by the Lead on Commercial Approach and the Assistant Director – Commercial Management that informed that Wirral’s Medium Term Financial Strategy 2019-20-2022/23 (MTFS) focus was on building the foundations for a sustainable financial future with sufficient support for services and described how to provide the funding and services so that residents received the support for their lives and communities. 

The Cabinet noted that a key approach in the MTFS was to increase income for the Council.  To deliver this increase in income and become more commercial required a fundamental change in how the Council did business.

The Commercial Strategy was one element of this change.  The Council’s approach to becoming more commercial was not about simply charging more for its services, it was not about becoming purely profit driven, it was about becoming more business-like and so more able to take advantage of commercial opportunities which would benefit the borough, and its residents.

Appended to the report was:

·  Appendix 1 – Commercial Strategy

·  Appendix 2 – Report of the Business Overview and Scrutiny Committee (Aug 2018)

The Cabinet noted that the Council continued to progress a range of measures including recommissioning, contractual negotiation and service re-design to develop its approach to the medium term budgetary pressures it faced. This was in order to maintain a financially  ...  view the full minutes text for item 40.

Councillor Phil Davies introduced a report of the Director of Governance and Assurance that recommended that the existing community budgets be designated as the Wirral Together Fund, and that it be distributed on a Ward Member basis. It also recommended that the current funding be increased by £50,000 and the amount allocated to each Ward Member be weighted for population, deprivation and age (populations aged 0-4 and 75 and over). Staff resources were recommended to be redirected to directly supporting Councillors in this approach instead of the current focus on Constituency Committees.

The report also recommended that the Cabinet agreed the process and criteria as set out in the appendices attached to the report as follows:

·  Appendix A – Ward Member Budget Allocations;

·  Appendix B – Draft Guidance on Ward Member Budgets (subject to amendment as required);

·  Appendix C – Draft Ward Member Budget Application Form (subject to amendment as required); and

·  Appendix D – Equalities Impact Assessment.

These appendices set out guidance on how these Budgets would operate.

The Cabinet was also asked to agree the necessary officer delegations to administer the Ward Member budgets.

This matter affected all wards within the borough and was therefore a Key Decision.

The Cabinet was informed that a review had taken place during 2017/18 led by the then Portfolio Holder for Community Engagement. As part of that review, the effectiveness of existing Constituency Committees had been raised as an issue. After consideration of this the proposal in that report was that those arrangements should be brought to an end and, instead, a more focussed approach should be put in place  ...  view the full minutes text for item 41.

RESOLVED:

That under section 100 (A) (4) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that they involve the likely disclosure of exempt information as defined by the relevant paragraphs of Part I of Schedule 12A (as amended) to that Act. The Public Interest test has been applied and favoured exclusion.

Appendices to agenda item 4.

Exempt by virtue of paragraph 3 as they contain commercially sensitive information.

RESOLVED:

That further to Minute No. 32 above the content of the following exempt documents circulated with the agenda be noted:

·  Appendix 1 – Birkenhead Commercial District Full Business Case.

·  Appendix 2 – Staff Relocation & Asset Consolidation Full Business Case.

·  Appendix – 5 Strategic Acquisitions within redline boundary.

Appendix to agenda item 6.

Exempt by virtue of paragraph 3 as it contains commercially sensitive information.

RESOLVED:

That further to Minute No 34 above that the content of the Appendix to Item No. 6 which is an exempt document, circulated with the agenda, be noted: