Agenda and minutes

Venue: Floral Pavilion, New Brighton

Contact: Andrew Mossop  Principal Democratic Services Officer

Media

Items
No. Item

120.

Welcome and Introduction

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Minutes:

The Chair welcomed everyone to the meeting and those watching the webcast.

121.

Apologies

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Minutes:

The Chair confirmed that apologies had been received from Councillor Lesley Rennie and that Councillor Andrew Hodson was deputising.

122.

Members' Code of Conduct - Declarations of Interest

Members are asked to consider whether they have any disclosable pecuniary interests 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.

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Minutes:

Members were asked to declare any disclosable pecuniary interests and any other relevant interest and to state the nature of the interest.

 

The following declarations were made:

 

Councillor

Jeff Green

Personal interest by virtue of him being Chair of Wirral Golf Club and also as a Director of the Wirral Growth Company.

Councillor Jean Robinson

Personal interest by virtue of her being a Director of Wirral Growth Company.

 

123.

Minutes pdf icon PDF 78 KB

To approve the accuracy of the minutes of the meeting held on 17 January, 2022.

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Minutes:

Resolved – That the minutes of the meeting held on 17 January, 2022 be approved and adopted as a correct record.

124.

Public Questions

Notice of question to be given in writing or by email by 12 noon, Thursday, 10 February, 2022 to the Council’s Monitoring Officer (committeeservices@wirral.gov.uk) and to be dealt with in accordance with Standing Order 10.

 

For more information on how your personal information will be used, please see this link:

Document Data Protection Protocol for Public Speakers at Committees | Wirral Council

 

Please telephone the Committee Services Officer if you have not received an acknowledgement of your question by the deadline for submission.

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Minutes:

The Chair informed the meeting that nine questions had been received from members of the public, eight of whom were in attendance, and one who had asked that their question be read out at the meeting.

 

The nine questions and responses were attached as an appendix to the minutes.

125.

Statements and Petitions

Notice of representations to be given in writing or by email by 12 noon, Thursday, 10 February, 2022 to the Council’s Monitoring Officer (committeeservices@wirral.gov.uk) and to be dealt with in accordance with Standing Order 11.1.

 

Petitions may be presented to the Committee. The person presenting the petition will be allowed to address the meeting briefly (not exceeding one minute) to outline the aims of the petition. The Chair will refer the matter to another appropriate body of the Council within whose terms of reference it falls without discussion, unless a relevant item appears elsewhere on the Agenda. Please give notice of petitions to committeeservices@wirral.gov.uk in advance of the meeting.

 

Please telephone the Committee Services Officer if you have not received an acknowledgement of your question by the deadline for submission.

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Minutes:

The Chair informed the meeting that a number of petitions had been received and invited those in attendance to present their petitions, as follows:

 

1.  Stephen Bennett presented a petition in respect of the proposed closure of Woodchurch Leisure Centre.

2.  Councillor Yvonne Nolan presented a petition in respect of the proposed closure of Rock Ferry Library.

3.  Julienne McGeough presented petitions on her behalf and on behalf of Paul Jobson in respect of proposals for increasing charges or introducing charges around residents’ parking charges at Tranmere Rovers, Sainsbury’s Prenton area and the Birkenhead town area.

4.  Alan Dollery presented a petition in respect of the proposed closure of Prenton Library.

5.  A petition had been delivered from Matt Webb in respect of the proposed 12 month closure of Bidston Tennis Centre and loss of three indoor courts on reopening.

6.  Councillor Wendy Clements presented a petition in respect of the proposed closure of Greasby Library.

 

Resolved – That the petitions be noted and referred to the appropriate Chief Officers in accordance with Standing Order 11.2.

126.

Questions by Members

Questions by Members to dealt with in accordance with Standing Orders 12.3 to 12.8.

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Minutes:

No questions from Members had been received.

127.

BUDGET MONITORING QUARTER 3 2021/22 pdf icon PDF 295 KB

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Minutes:

The Director of Resources introduced a report which set out the financial monitoring information for the Council as at quarter 3 (October - December) of 2021-22 and provided an overview of budget performance.

 

The Committee was aware that the Department for Levelling Up, Housing and Communities (DLUHC) had provided a conditional offer of Exceptional Financial Support (capitalisation directive) for 2021/22 of up to £10.7m. One of the conditions of that offer was that the Council would need to provide evidence from the assurance review of the authority’s financial position and its ability to meet any or all the identified budget gap without any additional borrowing. An Independent Panel had been appointed to monitor the progress of the implementation of the recommendations of the review.

 

It was therefore vitally important that the Council had robust processes in place to manage and monitor the in-year financial position, to ensure it delivered a balanced position at the end of the year. The report outlined a number of improvements which had been made to address this.

 

The projected year-end revenue outturn, recorded as part of Quarter 3 financial monitoring activity, represented a favourable variance against revenue budget of £1.345m.As any favourable variance had to contribute to the reduction in the value of the Exceptional Financial Support for 2021/22, the forecast year end position was a balanced budget. This budget position included the utilisation of the Government’s Exceptional Financial Support (EFS) but it was not anticipated that the full amount would be required, following a review of new funding received and a reduction in pressures estimated in March. The value of the EFS had now reduced to £6.355m.

 

The Director of Resources in response to comments from Members agreed that she would supply figures in writing with regard to the aggregated costs of the capitalisation of salaries for this year and future years, and that the list of earmarked reserves with a commentary, would be circulated to all Members.

 

On a motion by the Chair, seconded by Councillor Yvonne Nolan, it was -

 

Resolved – That,

 

(1)  the favourable forecast position, prior to the proposed adjustment to the exceptional financial support, presented at Quarter 3, be noted;

 

(2)  the forecast reduction in the requirement to utilise the Government’s Exceptional Financial Support (EFS), be noted;

 

(3)  the impact of funding and expenditure as a direct consequence of Covid-19, including the additional funding sources which had been identified, be noted.

128.

CAPITAL MONITORING QUARTER 3 2021/22 pdf icon PDF 237 KB

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Minutes:

The Director of Resources introduced a report which provided an update on the progress of the Capital Programme 2021/22 at the end of December 2021. The report recommended to Council a revised 2021/22 Capital Programme of £71.9 million which took account of re-profiling, virements, additional funding requirements and grant variations identified since the Capital Programme was formally agreed on 1 March 2021.

 

In response to comments from Members, the Director stated that any reduction in the capital programme would reduce borrowing and feed into a reduction in revenue spend too. With regard to the reduction in the capitalisation amount and the instruction from Department for Levelling Up, Housing and Communities (DLUHC) to sell off assets, this requirement would reduce as the Council would only be looking to sell off assets equivalent to the loan.

 

On a motion by the Chair, seconded by Councillor Yvonne Nolan, it was -

 

RECOMMENDED – To Council,

 

(1)  the approval of the revised Capital Programme of £71.9 million for 2021/22, including the addition of the new grant funding referred to in section 3.4 in the report;

 

(2)  the approval of additional funding for the schemes referred to in section 3.5 in the report;

 

(3)  the approval of the virements referred to in Appendix 3 in the report.

 

129.

BUDGET 2022/23 AND MEDIUM TERM FINANCIAL PLAN pdf icon PDF 365 KB

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Minutes:

The Director of Resources introduced a report which was part of the Council’s formal budget process, as set out in the constitution and in accordance with the legal requirements to set a balanced and sustainable budget for 2022/23.

 

This report presented details of the annual budget for 2022/23; key elements contributing towards the preparation of the budget; recommendations on the budget and council tax, and an update on the Medium-Term Financial Plan (MTFP) covering the period from 2022/23 to 2026/27, previously reported to the Committee on 1 December 2021 (minute 101 refers) as a component of the Medium-Term Financial Strategy (MTFS).

 

The report contained several appendices, some of which were required to be published as part of the statutory annual budget process and others which provided the Committee with relevant information relating to short and medium-term budget planning, inclusive of consultation aspects and financial assumptions. These assumptions would change, and changes would be reported through the governance process for budget monitoring within the Committee system.

 

Included with these appendices was also the detailed Schools Budget for 2022/23.

 

The 2022/23 budget had been compiled using the figures in the provisional Local Government Finance Settlement for 2022/23 as the final settlement, had not at the time of agenda publication, been received. The Director confirmed that the final settlement had been received with a slight improvement of £1k, which did not impact on the assumptions included within the 2022/23 budget report

 

The 2022/23 budget had been developed with consideration of the recommendations made in the Department for Levelling Up, Housing and Communities (DLUHC) external assurance reports and in consultation with the Independent Panel convened to advise on the Council’s financial recovery plan.

 

The budget proposals, which had been produced with the engagement of Policy and Resources Committee and other Service Committees, and the associated recommendations laid out in this report were a key step in achieving the Council’s commitment to produce a stable, prudent and sustainable financial basis to operate from, recognising the finite resources available and prioritising them for the best outcomes for Wirral, with the ongoing aim of delivering better services.

 

The report was extensive, covering complex information on a number of areas including:

·  The national context and local government funding

·  Government engagement, DLUHC and Exceptional Financial Support (EFS)

·  Organisational change

·  The approach to formulating the budget, inclusive of Directorate budget envelopes

·  The budget proposals

·  The MTFS and future year assumptions

·  Council Tax

·  Business Rates

·  Schools’ budgets

·  Levies

·  The General Fund and earmarked reserves

·  Flexible Use of Capital Receipts (FUCR)

·  The Section 151 officer’s report on the robustness of estimates for budget calculations

 

Both the Director and Chief Executive responded to a number of comments from Members clarifying the external advice given of the need for a contingency fund of £3m minimum and also assuring the Committee of the rigour with which the Change Programme and delivery of savings would be implemented.

 

The Chair then moved, seconded by Councillor Jean Robinson, the recommendations set out in the report, with the following  ...  view the full minutes text for item 129.

130.

CAPITAL PROGRAMME 2022-27 pdf icon PDF 193 KB

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Minutes:

The Chair suggested that this and the next three items be taken en bloc and this was agreed by the Committee.

 

The Director of Resources introduced a report on the draft Capital Programme 2022/27 for consideration and referral to Council for approval. It also included information regarding the revenue implications of this Programme and an update on the latest forecast for capital receipts.

 

The 2022/27 Capital Programme represented a combination of schemes originally approved as part of the 2021/26 Programme, updated through the Capital Monitoring reports in 2021/22 and new bids for inclusion as detailed in this report.

 

A Member suggested the need for a forward programme of improvements required to leisure facilities in respect of the £660k Leisure Capital Improvement Programme funding.

 

The Director responded to a number of comments from Members and confirmed that DLUHC had instructed the Council not to use any portion of capital receipts for a community fund, but that all capital receipts were to be used to fund the cost of the capitalisation directive. She suggested that the idea of a capital pot for some form of community funding in areas where assets had been sold off could be revisited.

 

On a motion by the Chair, seconded by Councillor Yvonne Nolan, it was -

 

RECOMMENDED – To Council -

 

(1)  the approval of the new bids as detailed in Appendix 2 to the report requiring £8.963 million borrowing for inclusion in the Capital Programme;

 

(2)  the approval of any new bids supported by grant funding do not commence until written confirmation has been received from the granting authority;

 

(3)  the approval of the Capital Programme 2022/27 (as detailed in Appendix 3 to the report).

 

(4)  that the Director of Resources be requested to present updates on the capital programme in accordance with the agreed capital monitoring arrangements.

131.

CAPITAL FINANCING STRATEGY 2022/23 pdf icon PDF 166 KB

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Minutes:

The Director of Resources introduced a report on the Capital Financing Strategy. The Authority’s treasury management activity was underpinned by the Chartered Institute of Public Finance and Accountancy (CIPFA) 2017 Code of Practice on Treasury Management (“the Code”), in which there was the requirement for Council to approve an annual Capital Strategy. The report fulfilled the Authority’s legal obligation under the Local Government Act 2003 to have regard to the CIPFA Code.

 

On a motion by the Chair, seconded by Councillor Yvonne Nolan, it was -

 

RECOMMENDED – To Council -

 

(1)  the approval of the Capital Strategy for 2022/23;

 

(2)  the approval of the associated Prudential Indicators to be adopted;

 

(3)  the approval of the Council’s Minimum Revenue Provision policy.

132.

TREASURY MANAGEMENT STRATEGY 2022/23 pdf icon PDF 213 KB

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Minutes:

The Director of Resources introduced a report on the Treasury Management Strategy. The Authority’s treasury management activity was underpinned by the Chartered Institute of Public Finance and Accountancy (CIPFA) 2017 Code of Practice on Treasury Management (“the Code”), which required the production of annual Treasury Management Indicators and a Treasury Management Strategy Statement on likely financing and investment activity. The Code also recommends that Members were informed of treasury management activities at least twice a year.

 

The report fulfilled the Authority’s legal obligation under the Local Government Act 2003 to have regard to the CIPFA Code. It did not cover the requirements of the 2018 Department for Levelling Up, Housing and Communities (DLUHC) Investment Guidance, which mostly referred to non-treasury investments and was the subject of a separate report.

 

On a motion by the Chair, seconded by Councillor Yvonne Nolan, it was -

 

RECOMMENDED – To Council -

 

(1)  the approval of the Treasury Management and Investment Strategy for 2022/2023;

 

(2)  the approval of the Treasury Management Indicators.

 

133.

INVESTMENT STRATEGY 2022/23 pdf icon PDF 138 KB

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Minutes:

The Director of Resources introduced a report on the Investment Strategy. In February 2018, the former Ministry for Housing, Communities and Local Government (MHCLG), (now Department for Levelling Up, Housing and Communities (DLUHC)) published updated ‘Guidance on Local Government Investments’. The previous edition covered only Treasury Management investments. In recent years local authorities had had an increasing focus on commercial activities including but not exclusive to property. Such activity had the potential to bring both increased returns and increased positive and negative risk. The revised Guidance on Local Authority Investments required that a separate Investment Strategy focusing on non-treasury investments was produced and approved annually by Council.

 

This report fulfilled the requirement of the DLUHC to produce an investment strategy that covered non-treasury activities.

 

On a motion by the Chair, seconded by Councillor Yvonne Nolan, it was -

 

RECOMMENDED – To Council, the approval of the Investment Strategy for 2022/2023 which includes potential investment in the following activity areas:

 

1.  Commercial Property

2.  Service Investments: Loans

3.  Service Investment: Shares (non-currently held)

4.  Loan Commitments and Financial Guarantees

134.

PROCEDURE FOR BUDGET DECISION MEETING OF COUNCIL pdf icon PDF 129 KB

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Minutes:

The Director of Law and Governance introduced a report on the assurance process in formulating the draft Council Budget with a recommendation to Council on a process for adoption at the Budget decision making meeting.

 

On a motion by the Chair, seconded by Councillor Yvonne Nolan, it was -

 

RECOMMENDED - To Council, that for the duration of the extraordinary meeting of 28th February 2022 (Budget Council):

 

(a)  the procedure attached as Appendix A be followed in respect of the meeting; and

 

(b)  Council Standing Order 15.4 (timing of speeches) be suspended together with such other standing orders as may conflict with the Budget Council procedure or the Mayor’s administration of the meeting, in such a manner as the Mayor in his or her absolute discretion dictates, to ensure the objective of Council setting a lawful budget and council tax requirement prevails.

135.

CHAIR'S THANKS

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Minutes:

At the conclusion of the meeting, the Chair expressed her thanks for the manner in which the Committee had discussed and debated the matters before it, appreciative of the difficult process which the Council was going through and thanked Members and officers for all their hard work.

Appendix - Public questions and responses pdf icon PDF 84 KB

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