to

Tuesday 23 February 2016

Council Will meet on Wednesday 2 March 2016 at 7.00 pm in Council Chamber - Allerdale House

Membership:

Councillor Len Davies (Chairman)

Councillor Tony Annison Councillor Carole Armstrong Councillor Mary Bainbridge Councillor Peter Bales Councillor Barbara Cannon Councillor Nicky Cockburn Councillor John Colhoun Councillor John Cook Councillor Joseph Cowell Councillor John Crouch Councillor Adrian Davis-Johnston Councillor Duncan Fairbairn Councillor Janet Farebrother Councillor Bill Finlay Councillor Mark Fryer Councillor Malcolm Grainger Councillor Konrad Hansen Councillor Hilary Harrington Councillor Michael Heaslip Councillor Alan Hedworth Councillor Vaughan Hodgson Councillor Joe Holliday Councillor Margaret Jackson Councillor William Jefferson Councillor Mark Jenkinson Councillor Peter Kendall Councillor Angela Kendall Councillor Jim Lister Councillor Tony Lywood Councillor Patricia Macdonald Councillor Louise Maguire Councillor Anthony Markley Councillor Carni McCarron-Holmes Councillor Billy Miskelly Councillor Jacqueline Mounsey Councillor Ron Munby Councillor Eric Nicholson Councillor Jim Osborn Councillor Bill Pegram Councillor Alan Pitcher Councillor Martin Pugmire Councillor Denis Robertson Councillor Joe Sandwith Councillor Neil Schofield Councillor Alan Smith Councillor Christine Smith Councillor Stephen Stoddart Councillor Celia Tibble Councillor Philip Tibble Councillor Lee Williamson Councillor David Wilson Councillor Martin Wood Councillor Janice Wood

If you have any questions or queries contact Gayle Roach on 01900 702817.

Agenda

1. To approve as a correct record the minutes of the Council Meeting held on Wednesday 20 January 2016 (Pages 1 - 10)

2. Apologies for absence

3. Declaration of interests

Councillors/Staff to give notice of any disclosable pecuniary interest, other registrable interest or any other interest and the nature of that interest relating to any item on the agenda in accordance with the adopted Code of Conduct.

4. Exclusion of the Press and Public

To consider whether there are any items on the agenda for which the press and public should be excluded.

5. Questions from Members

To answer questions from Councillors under Procedural Rule No. 4.17.2.

6. Questions and Petitions from the Public

To answer questions under Procedural Rule No. 4.16 and to receive Petitions under the Access to Information Rules from members of the public.

7. Notices of Motion

To receive Notices of Motion.

8. Councillor Speeches

To hear speeches (not exceeding 5 minutes each), for up to a specified period of 15 minutes, from individual members or a local issue in the Member’s Ward, of which 24 hours’ notice has been given to the Chief Executive.

9. Mayor's Announcements (Pages 11 - 12)

To consider the Mayors engagements since the last meeting.

10. Portfolio Holder Reports (Pages 13 - 22)

To consider reports from Members of the Executive.

11. Executive Minutes (Pages 23 - 28)

To note the contents of the minutes of the meeting of the Executive held on 13 January 2016.

12. Budget 2016-17 – Revenue and Capital (Pages 29 - 84)

13. Council Tax Resolution 2016-17 (Pages 85 - 98)

14. Reference from Audit Committee 12 February 2016 - Treasury Management Strategy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy Statement 2016/17 (Pages 99 - 146)

15. Reference from Licensing Committee 18 February 2016 - Review of Hackney Carriage Table of Fares (Pages 147 - 168)

16. Reference from Executive 22 February 2016 - Conservation Areas Supplementary Planning Document (Pages 169 - 212)

17. Changes to Committee Memberships and Joint Advisory Committee Representation (Pages 213 - 216)

18. Calendar of meetings (Pages 217 - 220)

19. Pay Policy Statement (Pages 221 - 230)

Chief Executive

Date of Next Meeting Wednesday 18 May 2016 at 7.00 pm Council Chamber - Allerdale House

This page is intentionally left blank Agenda Item 1

At a meeting of the Council held in Council Chamber - Allerdale House on Wednesday 20 January 2016 at 7.00 pm

Members L Davies (Chairman)

C M Armstrong J Lister M Bainbridge P Macdonald P Bales L Maguire B Cannon A J Markley N Cockburn C McCarron-Holmes J Cook B Miskelly J Cowell J M Mounsey J Crouch R Munby A Davis-Johnston J Osborn D S Fairbairn B Pegram J Farebrother A Pitcher B Finlay D Robertson M Fryer J Sandwith M Grainger A Smith K Hansen C Smith H Harrington S Stoddart M Heaslip C Tibble J Holliday P Tibble C M Jackson L Williamson W H Jefferson D Wilson M Jenkinson M G Wood P G Kendall J Wood A H Kendall

Apologies for absence were received from Councillors T Annison, B Bacon, J I Colhoun, A Hedworth, V Hodgson, T Lywood, E Nicholson, M Pugmire and N Schofield

Staff Present

S Bell, D Devine, I Frost, A Gilbert, C Hadfield, C Holmes, C Nicholson, Z Pluckrose, G Roach, A Seekings, S Sewell, L Tomlinson and P Wood

Also Present

T Abraham, J W MacLeod, C Orr and R Swift

305 To approve as a correct record the minutes of the Council Meeting held on Wednesday 18 November 2015

The minutes of the meeting held on 18 November 2015 were signed as a correct record.

306 Declaration of interests

None declared. Page 1 307 Exclusion of the Press and Public

There were no items on the agenda for which the press and public should be excluded.

308 Questions

Councillor Pugmire submitted the following question which the Mayor read out in his absence:

‘The Executive, its officers and all its staff deserve the praise and appreciation that it is receiving over the support for those flooded in Keswick, Braithwaite, Cockermouth and elsewhere, but at the same time its draft parking charge proposals for the 2016 to 2017 year, which aim to raise revenue from Tourism in Keswick, will inflict real damage on local people; specifically on the pensioners and the infirm of Keswick, and apparently inadvertently on the viability of Allerdale's theatre, and also more generally on local businesses such as B &B’s. Can the Executive assure Council it will take steps to address the three key issues, which are as follows? :- 1. Pensioners and the infirm. Keswick has no town bus service, and those who find walking a distance difficult are forced to use cars or taxis, unless they can afford to buy invalidity vehicles, to get into the town centre. And when they get there, they cannot just rush around: they need time to buy what they need and to pay their bills. They as locals need therefore an extended free period of parking, say a minimum of 1 hour, for when they visit the town centre. In addition the current pricing of the annual free-use pass should be retained. This can be done without loss of income from tourism, and should be viewed as a matter of social policy and compassion. 2. The Executive proposes to treat the out of town Lakeside car-park like the town car-parks. But it is in fact well away from the centre, reached by poorly lit walkways, and after dark there is no way in which anyone would park there unless visiting the theatre. But it is proposed to extend the charge-time from 7pm to 9pm, and in addition to introduce an overnight charge. At Christmas, and even at the Easter holidays, this is simply a tax on the visitors to the theatre, adding £7 onto each car-visit. A major blow. If this one car park continued to be treated as now, between October and May, this problem would vanish, and a local charity would be protected. 3. In general, town centre businesses fear that the overnight and late evening charging will damage business considerably. It must be pointed out that what is proposed is, for these businesses, in effect an additional business rate levied by Allerdale. Much good can be achieved at quite minor cost on these issues, if the Executive has the will. I hope very much that it will give the needed assurances, and prevent suffering in Keswick’.

In his response, Councillor Heaslip said it was difficult to respond at that moment in time as the consultation was still in progress and open for responses and he did not want to pre-determine the Executive’s position on the matter.

Page 2 Councillor Heaslip said that the Council had held back from increasing the parking charges across the whole of the district for the last 4 years and in that they were probably due for a review. The Council was considering a town by town and carpark by carpark approach and had not singled out Keswick on its own. Councillor Heaslip was pleased the Council had received a lot of responses during the consultation which the Executive would then consider very carefully.

Ms Judy Whiteside submitted the following question which the Mayor read out in her absence:

‘With reference to the development of Strawberry How by Story Homes: Given the recent flooding events in Cockermouth and the admission by the Environment Agency, DEFRA and government ministers that the Environment Agency modelling used to determine the decision is now flawed and out-of-date, is Councillor Fryer aware that, contrary to popular belief, the local authority has the power to revoke planning permission under the Town and Country Planning Act, Standard Note SN/SC/905?. Would you confirm that this option is indeed being considered and if not, why not?’

Mr Christopher Orr asked the following question on the same subject:

‘Without doubt the flood events of the last 10 years have been a wake-up call for Cumbria and especially Cockermouth. Both the Floods Minister (Rory Stewart) and the Environment Agency Director (Peter Fox) have admitted that the modelling and flood risk data provided by the EA has been flawed - Peter Fox recently wrote to me and his letter states "The (flood recovery) work will include a review of our knowledge and understanding of risks in the light of the recent flood events". This flood risk data and EA modelling was a key element in the original Allerdale decision to give planning approval for Story Homes to build houses that will surround the Flood Zone 2 area of Tom Rudd Beck on Strawberry How.

Under the Town and Country Planning Act, Standard Note SN/SC/905 all local authorities have the power to revoke planning permission. My question is that given the last 7 years of serious flooding events in Cockermouth (and the potential for worse flooding events in the future) would Mark Fryer and all Councillors agree that the permission for development of Strawberry How by Story Homes should now be revoked or, as a minimum, be put on hold until the flood risk data and the Environment Agency's modelling methods have been fully updated and approved such that Allerdale Councillors can have confidence that this development will not further aggravate or enhance flooding in Cockermouth. If not, why not?’

Councillor Fryer responded to say there had been no admission by either the Environment Agency, DEFRA of government ministers that the modelling used to inform the decision to grant planning permission for the development at Strawberry How was either flawed or out of date. The Flood Risk Assessment used to inform the planning decision was based on a bespoke hydraulic model and no evidence had been provided to demonstrate that the model was flawed or that the extent of recent flooding in the vicinity of Strawberry How exceeded Page 3 that considered in the model, and for which mitigation had been provided for in the design of the approved development. As local planning authority the Council did not have the power to unilaterally revoke the planning permission. I accept that the Council could seek an order to revoke the planning permission but such an order would have to be confirmed by the Secretary of State and the Council would have to provide clear and convincing evidence that the planning permission should be revoked. Despite the various, unsubstantiated claims that have been made, there was no evidence that the decision to grant planning permission was either flawed, or was based on flawed information and therefore there was no sound basis for the Council to seek to revoke the planning permission.

Mr Orr asked whether he could assume that all 47 of the conditions of the scheme would be dealt with through the Development Panel? Councillor Fryer agreed to provide a written response on what the process would be.

Councillor Sandwith asked the following question:

‘Due to the fact that the site on which the new leisure centre in Workington is being built has suffered serious flooding 5 times in the last 13 years, my question is: Once completed how much will the insurance cost, and when there is a claim for flooding, what will the excess be?’

In response, Councillor Heaslip said the comments in the question were not fact, the site had not flooded 5 times in the last 13 years. He said from memory there had been water on the site in 2009 and since then the floor levels of the site had been raised, they were now about the same level as the football pitch which had never flooded. Councillor Heaslip continued, once the leisure centre was complete the contents were covered by the operator Greenwich Leisure Limited (GLL) and the building insurance was a mixture of Allerdale Borough Council and GLL. Allerdale would arrange the building insurance under their policy and the operator (GLL) then payed the annual cost of the cover. The sum that would be insured for the new leisure centre was approximately £11 million, the annual cost being £13,490.88 would be payable by GLL.

Who would pay the excess on a claim would depend on the circumstances. The excess on flood claims was £100,000 which was payable by Allerdale Borough Council and the Council currently holds a reserve of £115k for excess.

Ms Tonia Abraham asked the following question:

‘Historically, the site of the new leisure centre has been flooded over the centuries and more recently in 2002, 2005, 2009, and by a tidal surge in January 2014, followed by yet another flood in December 2015. There is also the problem of the rising sea levels. As seen on the front page of the Times and Star our MP declared she is against building on flood plains, my question is: Will Allerdale Borough Council stop throwing good tax payers money after bad and stop building the new leisure centre on this ancient flood plain?’

Page 4 In his response Councillor Heaslip said that the site did not flood on the dates that you mention. There was water on site in December 2015 however I saw for myself that it did not reach the floor level height and therefore did not flood. The Council would not be stopping the build of the new leisure centre.

Mrs J. W. MacLeod asked the following question:

‘As is common knowledge locally, five times over the past thirteen years the site on which Workington’s new leisure centre, many say foolishly, is presently being erected has rapidly been overwhelmed by serious flood water, the last time as recently as December 2015. As the responsible local Authority what are the health and safety contingency plans Allerdale Borough Council has now put in place to safely evacuate potentially trapped people from their dangerous situation when as is glaringly obvious and in my opinion certainly inevitable the area will flood again many times in future and when does Allerdale as is their duty intend to alert the general public to the details of the evacuation plan and potential financial compensation due to those people traumatically affected?’

Councillor Heaslip referred Mrs McLeod to his answers to the previous two questioners in respect of flooding of the site. In response to the Health & Safety issue, he responded by saying the Council takes health and safety seriously and as such employed a Health and Safety Advisor to oversee procedures in all council owned premises. We own a variety of buildings and each one had its own bespoke arrangements in place to minimise risk and protect life from whatever threat. He continued, the planning process ensured that the design of buildings was appropriate to safeguard life and where appropriate plan for evacuation. In relation to the new leisure centre we are working with the chosen operator to ensure health and safety procedures, including evacuation, are developed and adopted. Throughout the life of the centre our health and safety officers would undertake regular inspections in line with statutory health and safety legislation.

308a) Petitions

Ms Rachel Swift of Theatre by the Lake, Keswick presented a petition to the Mayor regarding the proposed increase in car parking charges, changes to charging periods and overnight fees in Keswick. Ms Swift presented the petition on behalf of several businesses including Theatre by the Lake, Lake District Hotels, Keswick Retailers Association as well as the communities of Keswick to express the concern over the proposals made by the Council over car parking prices. She said they were campaigning as a group against the scale of the increase detailed in the proposals because of the serious threat it posed to the businesses and communities of Keswick.

For Theatre by the Lake, the increases, changes to the hours of charge and introduction of an overnight fee would dramatically affect, not only visitors who would pay up to 40% more to park during the day but also the locals would be hugely affected attending evening shows and paying a minimum of £5 for parking. The local audiences constituted 60% of the annual audiences so that would affect them even more than the visitors. Page 5 The Lake District Hotels would see a 72% rise in the cost of the car parking passes they purchased for their customers. Their bill would increase from £22,620 to £39,000.

She concluded the numbers of signatures on the petition, not to mention the 94 pages of comments left by those who signed it, showed an unequivocal message that the collective customers (and supporters) wholeheartedly supported the campaign to stop the increases, that they would damage businesses and that the Council needed to rethink their car parking proposal from top to bottom.

In response as Portfolio Holder for Locality and Commercial Services, Councillor Heaslip thanked those involved for the submission of the petition. He said Arts and Leisure facilities were key to the Council Plan and a lot had been done to support the arts in the town centres, enhancing town centres being one of the key objectives in the Plan. He concluded that the petitioners and the Council did not differ in their objectives except however the fifth part of the Council Plan – the Sustainability of the Council – and that was what the Executive had to consider in addition. Councillor Heaslip welcomed the petition, confirmed it would be looked at very seriously and proposed that; 1 – the Council received the petition with comments 2 – the Council noted the contents with interest and, 3 – the petition be referred to Executive along with all consultation responses received. This was seconded by Councillor A. Smith.

Councillor Davis-Johnston said he welcomed the efforts by the people of Keswick and recommended the referral of the petition to Executive.

Councillor Munby was in full support of the referral and added that the opposition was cross party and asked that the Executive took that in to consideration.

A vote was taken on Councillor Heaslip’s proposals, 45 in favour, 0 against and 1 abstention. The motion was carried.

Agreed – That –

1. The Council received the petition with comments 2. The Council noted the contents with interest and, 3. The petition be referred to Executive along with all consultation responses received.

309 Notices of Motion

None received.

Page 6 310 Mayor's Announcements

The Mayor made reference to the engagements he had attended since the last meeting.

311 Portfolio Holder Reports

Those present considered the contents of the Portfolio Holders reports which gave details of the key activities of the Executive since the last meeting. Executive members paid thanks to Allerdale staff and councillors for their hard work, time and commitment in the flood recovery process. They expressed thanks to the volunteer groups and the council’s contractors who had worked tirelessly following the aftermath of the storm and also special thanks to the Armed Forces troops. It was agreed that a ‘thank you’ event would be arranged to pay tribute to the Royal Lancaster regiment.

Particular reference was also made to sports development within Allerdale, flood recovery funding and the Bellwin Scheme application and the completed Veteran’s Unit in Ewanrigg.

Councillor Jenkinson questioned the issue of Penalty Charge Notices showing a £nil penalty in service yards in Workington town centre and requested confirmation that they were valid having regard to a Parking Order and associated signage. Councillor Heaslip agreed to undertake to find out the detail of the parking order and signage and come back.

312 Calculation of Council Tax Base for 2016-17

The Head of Financial Services submitted a report which gave details of the council tax base for the purposes of sections 33(1) of the Local Government Finance Act 1992 (as amended) and to calculate the council tax base for each part of the area for the purposes of section 34(3) of the Act.

Councillor Cannon moved the recommendations and this was seconded by Councillor A. Smith. The motion was unanimously agreed.

Resolved – That:

a) The report for the calculation of the Council’s tax base for the year 2016-17, as set out in the appendices, be approved b) Pursuant to the report and in accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 2012, the amount calculated by Allerdale Borough Council as its tax base for the whole area for 2016-17 shall be 29,470.69 c) The major precepting authorities (Cumbria County Council and the Cumbria Office Police and Crime Commissioner) be notified for the purpose of calculating the basic amount of its council tax d) The tax bases be used by Allerdale Borough Council for calculating the basic amount of council tax as required by the Local Government Finance Act 1992 as amended. Page 7 313 Councillors Allowances 2016/17

The Head of Governance and Monitoring Officer submitted a report which sought member’s consideration of the recommendations of the Independent Panel for Councillors Allowances for 2016/17, and a revised Members Allowances Scheme, following a full review.

The Independent Panel had recommended that the Basic Allowance be increased by £100 per councillor for the forthcoming year and an increase in Special Responsibility Allowance for the Chair of Development Panel and Chair of Licensing Committee. The report also recommended that members travel allowances be brought in line with the HMRC approved rates.

Councillor Cannon moved the recommendations as per the report. Councillor A. Smith seconded this.

Councillor Wilson moved that the recommendations not be approved and that councillor allowances remain the same. This was seconded by Councillor Jenkinson.

A vote was taken on Councillor Wilson’s amended motion, 3 in favour, 38 against and 4 abstentions. The motion was lost.

A vote was taken on Councillor Cannon’s motion, 40 in favour, 3 against and 2 abstentions. The motion was carried.

Resolved – That:

a) The report and recommendations from the Independent Panel be endorsed as Appendix 1 b) The allowances paid to the Mayor and Deputy Mayor remain at £7,071 and £507 respectively c) The Members Allowances Scheme be approved as Appendix 2.

314 Local Listings Adoption Arrangements

The Head of Development Services submitted a report which sought members to endorse the concept of locally listed buildings, to agree a decision process and to confirm delegated powers. This report had been considered by Executive on 4 November 2015 and Community Overview and Scrutiny on 4 December 2015.

Councillor Fryer moved the recommendations as per the report including recommendations from Overview and Scrutiny. This was seconded by Councillor A. Smith.

Members debated the importance of the inclusion of a Ward member on the Panel membership when assessing local listing nominations. It was agreed that Ward members would be consulted with to obtain and make use of the local knowledge.

Page 8 A vote was taken, 34 in favour of the motion, 0 against and 11 abstentions. The motion was carried.

Resolved – That:

a) The principle of adopting locally listed buildings outside of Conservation Areas be supported b) The membership of a panel to make recommendations on local listings be agreed, taking account of the recommendations of the Overview & Scrutiny Committee to exclude local ward members from the panel c) Delegated powers be given to the Head of Development Services to authorise adoptions, amendments and additions to the local list following recommendation by the panel.

315 Reference from Audit Committee (23/11/15) - Treasury Management Operations – Mid-year review 2015/16

This report was considered at Audit Committee on 23 November 2015. Members considered the details in the report and the recommendation.

Councillor Bainbridge moved the recommendation. This was seconded by Councillor Farebrother.

Resolved – That the contents of the mid-year review report be noted and the actions of the Treasury Management staff be ratified.

316 Changes to Development Panel Membership

The Head of Governance and Monitoring Officer submitted a report which sought members to agree a change to the membership of the Development Panel following the resignation of Councillor Peter Kendall.

Councillor Cannon moved that Councillor Farebrother be appointed as member on the Development Panel and Councillor Davies be appointed as substitute. This was seconded by Councillor A. Smith.

Resolved – That Councillor Peter Kendall be removed from the membership of the Development Panel and be replaced by Councillor Farebrother and Councillor Davies be appointed substitute.

317 Audit Committee Chair Six Monthly Briefing Update

The Chairman of the Audit Committee submitted a report which sought members to note the work undertaken by the Audit Committee for the first six months of financial year 2015/16.

Councillor Bainbridge moved the report which was seconded by Councillor Bales.

Resolved – That the report and the work undertaken by the Audit Committee during the first six months of financial year 2015/16 be noted.

Page 9 318 Overview and Scrutiny Annual Report

The Chairmen of both the Corporate and Community Overview and Scrutiny Committees submitted a report which sought to update members on the work of the Committees between May 2015 and January 2016.

Councillor C. Tibble moved the report which was seconded by Councillor P. Kendall.

Agreed – That the report be noted.

The meeting closed at 9.15 pm

Page 10 Agenda Item 9

The Mayor, Councillor Len Davies. Engagements since the last Council Meeting on 20 January 2016

Wigton Town Council Civic Service, St Mary’s Sunday 24 January 2016, 9.15am Church, Wigton

Binsey Team Mission Community Commissioning, Friday 29 January 2016, 7.30pm Torpenhow Church

Wednesday 3 February 2016, 7.00pm Maryport Army Cadets Presentation, Cleator Moor

Friday 5 February 2016, 7.00pm Maryport Sea Cadets Presentation, Maryport

Charity bag pack in aid of Mayor’s Charities, Sunday 14 February 2016, 10.00am Morrissons Supermarket, Workington

Workington Town Civic Dinner, Washington Saturday 20 February 2016, 7.00pm Central hotel, Workington

Gen II DEET Graduation Ceremony, Energus, Friday 26 February 2016, 6.00pm Lillyhall

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Page 12 Agenda Item 10

Allerdale Borough Council

Council – 2 March 2016

Portfolio Holder Updates

The Reason for the Decision To update full Council on the activities and decisions of Portfolio Holders since the last meeting

Summary of options considered N/A

Recommendations That members note the content of the report

Financial / Resource Implications None

Legal / Governance Implications None

Community Safety Implications None

Health and Safety and Risk None Management Implications

Equality Duty considered / Impact N/A Assessment completed

Wards Affected As indicated in the main body of the report

The contribution this decision would Portfolio Holder activity relates to the make to the Council’s priorities development of the new Council’s key aims

Is this a Key Decision No

Portfolio Holder Councillor Alan Smith - Leader

Lead Officer Corporate Management Team – as indicated

Report Implications (Please delete where applicable).

Community Safety N Employment (external to the Council) N Financial N Employment (internal) N Legal N Partnership N Social Inclusion N Asset Management N Equality Duty N Health and Safety N

Page 13 1.0 Introduction

The purpose of the report is to provide Full Council with an update and overview of the activities of individual portfolio holders.

2.0 Content (to include alternative options considered)

The activities of the Portfolio Holders are as follows:

2.1 Leader of the Council: Cllr Alan Smith

Devolution

Since Council last met, a new version of the Devolution deal was sent from central Government. Unfortunately, the document included no figures outlining the amount of money Cumbria would receive, or for how many years. The Government have made it clear in the document that they expect a Combined Authority and Elected Mayor, in order for a devolution deal to happen in Cumbria.

Following the release of the document, each Authority were asked to comment on it before a special Cumbria Leaders’ Board. Following this, I travelled to London with a contingency from Cumbria. We met with Lord O’Neill and a senior Civil Servant from the Treasury.

A positive outcome of the meeting is that Lord O’Neill agreed to hold a meeting in Cumbria to discuss the deal. The meeting was scheduled for week commencing 22rd February. I will update members verbally on the outcome of this meeting.

Northern Powerhouse

I attended a meeting held in Manchester to discuss the Northern Powerhouse. The meeting was specifically about a review of the North’s economy. Cumbria did not feature much on the agenda, which I raised during the meeting. AECOM, the company completing the infrastructure plan for the Cumbria LEP, are coming into the Council soon in order to discuss their plans for making Cumbria the ‘engine’ for the Northern Powerhouse.

On Friday 19th February I attended the North West Regional Leaders’ Board. We discussed the Northern Powerhouse and I once again asked why Cumbria had not been sufficiently involved. I argued the economic importance of Cumbria, especially West Cumbria, and that we should be a key player in the Northern Powerhouse in the future.

Star Chambers

In January, we held Star Chamber meetings with all Portfolio Holders and members of the Senior Management Team. In the meetings we discussed budgets and forward planning within each portfolio. These meetings were positive and we will be holding quarterly Star Chambers in the future.

Page 14 Flood partnership meeting

I represented Allerdale at a Cumbria Flood Partnership Meeting on 4th February. We discussed resilience, upstream management and flood defences. There was general agreement that evidence needed to be gathered to support the work of the group, which will be used alongside local and expert knowledge to decide on the best way forward. The meeting was positive and the group will continue to meet to keep discussions moving.

2.2 Deputy Leader: Economic Growth Portfolio: Cllr Mark Fryer

Energy

In partnership with DECC, the Council have commissioned a peer review of the consultancy undertaken by Manvit into a District Heat Network in Allerdale. This review is in advance of discussions with DECC regarding capital funding to support the development of schemes. The Energy Positive Allerdale report has been developed by Bizcat on behalf of the Council. The report indicates a number of energy related activities and projects that could develop into an energy programme for the Council.

Flood Recovery

Officers continue to support the work of the Business and Economic Recovery Group in addition to supporting with a number of businesses on future resilience issues. Officers are maintaining a dialogue with businesses to identify longer term issues.

Employment Sites Study

The Council is working with Britain’s Energy Coast to produce an Employment Sites Study for Allerdale. The document will establish a single source of information to illustrate the scope and range of development opportunities across the study area in addition to detailing the opportunities and constraints/barriers of individual sites. Broader consultation will take place during February and the document should be completed in the Spring.

CoNE

Officers continue to engage with the emerging Centre of Nuclear Excellence. A series of workshops have been held to confirm the Vision, Mission and Guiding Principles of CoNE.

Cumbria Skills Plan

The LEP have formally adopted a new Skills Plan 2016-2020. The plan identifies the scale of the skills challenge facing Cumbria over the coming years. It is estimated that 80,300 jobs may need to be filled in Cumbria between the start of 2016 and the end of 2021. The full document will be available on the Cumbria LEP website.

Page 15 Festivals and Events

The Council recognise the importance of supporting festivals and events in Allerdale as they offer a wealth of culture and enjoyment for both local people and for visitors that come to the area. These sporting, arts, music, food and cultural events improve the lives of both those participating and also the many volunteers that help with the setting up and running of these events. We also know that supporting them brings more people into the area who spend their money and help the local businesses in our towns and villages.

It is for this reason that we continue to provide small grants of up to £1,000 (or exceptionally up to £5,000) to support the start-up and continuation of festivals and events which can often become the cultural life-blood of a local area. We will continue to support the Taste Cumbria Food Festival which was established in the wake of the floods in 2009. I would encourage one and all to get out this year and get involved either as an attendee, participant or as a volunteer, and see for yourselves just how important these events are and the positive impact they have in improving people’s lives.

We are working with Workington Zebras to support facility improvements through the offer of financial support of £10k once community agreements and delivery plans are received. We are working with the local community in Moorclose to carry out improvements to the Junior football pitch through light surface works to improve the surface of the pitch.

The Malcolm Wilson Rally will be returning for a Cockermouth Town Centre start on the 12 March with the support of Allerdale Borough Council.

Planning Policy

The current public consultation on the draft Developer Contributions Supplementary Planning Document ends on 4 March. The proposed Supplementary Planning Document will provide detailed information about the type of planning obligations that the Council may seek to secure from development and the basis on which the level of obligation will be calculated.

2.3 Transformation Portfolio: Cllr Phil Tibble

Emergency Planning, Audit and Assurance

Emergency Planning

Our response to the recent floods has now moved into the Recovery phase. The Authority has links with the County Recovery Group and also with the sub groups, Infrastructure, Health and Well Being, Communications, Community. There are also Community Groups for each of the affected Districts and the Allerdale group has met weekly since the Recovery Phase began. Apart from the Local Authorities, the group includes Third Sector, CCF, CALC, Rotary, Flood Action Groups and Churches Together. Through this group, information can be cascaded to affected residents but it also acts as a conduit for

Page 16 concerns, problems etc. to be fed up the chain. At the moment Allerdale Borough Council chair and provide admin support to the group.

Allerdale staff have also been present at the recent Environment Agency roadshows, offering advice on resilience grant applications etc. We also have a weekly internal resilience meeting at which senior managers are updated and our own response as an Authority is discussed and planned.

All Councillors will have received a copy of our procedure should there be a terrorist incident in the area. This covers such things as suspect parcels, cyber-attacks, bomb threats etc. It should be remembered that these may come not just from organised groups, but from individuals as well.

Within the document the duties of the Prevent Duty Guidelines and the Councils responsibilities within the Counter Terrorism Act 2015 are outlined. Although the risk of radicalisation is small in the Borough, all staff who deal with the public will still need to be aware of how to recognise any potential problems, and the appropriate way of dealing with them. I recently attended a seminar on the Prevent Strategy, organised by Safer Cumbria and delivered by the Police. It is hoped that we can get a similar event organised within the Council.

Integrated Assurance and Risk Management

All financial system reviews for 2014/15 have now been finalised and the Risk Management have worked with the Policy Team to improve the Service Plan template. The document will now include service risk registers and assurance responsibilities for each area; providing a more holistic overview of each business areas objectives, opportunities, challenges, risks and responsibilities.

Transformation and ICT

The Council has procured the Abavus Customer Relations Management system. This will be the platform through which we will improve access to and delivery of services. This will facilitate online web forms, making links between frontline staff and residents quicker and smarter. It will also enable more agile working removing the requirement for frontline staff to return to Allerdale House to access information. The Programme Office have worked with Street Scene in the first phase of this project. This links to the new Customer Contact Centre which is being produced which to improve service delivery. We are also providing WIFI links to our area offices. The procurement of a new Telephony system is ongoing and a Mobile Device Management system for Officers has been implemented. Migration of services to the Cloud via Office 365 is ongoing. Solway House has been developed as the Business Continuity Centre should the need arise.

We are currently surveying Councillors on the usefulness of the My Ward system. Unfortunately the presentation to Full Council on the work of the

Page 17 Programme Office was postponed but it is still the intention that this will happen.

A review of the work if the Programme Office, projects undertaken, projects complete and savings made has been completed. Again this will be presented to the Exec and hopefully to Full Council.

2.4 Corporate Resources Portfolio: Cllr Barbara Cannon

Finance

The last few weeks have been taken up with finalising the budget which will be presented to Council later in the agenda.

Cost of Flooding

I mentioned in the last report that there had been a cost to the council following the floods and that we were still finalising what those costs were. We have not yet had final guidance from Government of how much the Council can expect to get as a contribution. Hopefully I will be able to report on this to the next council meeting.

Democratic Services

Following the resignation of Councillor Sharpe and the sad death of Councillor Bacon if contested by elections will be held in Dalton Ward and in Moss Bay Ward on Thursday 24th March.

2.5 Regulatory Services Portfolio: Cllr Konrad Hansen

Bereavement Services

Burial numbers are down on this time last year. One major initiative we are working on is the implementation of the BRAMM (British Register of Accredited Memorial Masons) scheme. This is a national register whereby Memorial Masons have to undertake a theory and practical test to achieve registration. On successfully achieving this they will be issued with a fixer’s license which would entitle them to fix memorials in any local authority cemeteries throughout the country. BRAMM hold all documentation supplied by Memorial Masons such as Insurance details etc. We are holding a theory course here in Allerdale House, followed by a practical test which will take place in one of our cemeteries. We are ongoing with Headstone Inspections and have Cockermouth and Harrington Road to inspect. ISS are edging paths in most of the cemeteries.

Revs & Bens

A one off Discretionary Housing Payment (DHP) for housing or universal credit claimants affected by the floods has been paid to 103 recipients with a

Page 18 further 11 cases still to be considered.

We have just started the year end processes and the mass recalculations of claims for the new financial year so all our customers will receive new awards letter around the middle of March (anticipated date 15th March 2016).

The government has indicated that the new benefit cap £20,000 per annum will be introduced around September/ October 2016.

Universal credit is set to go digital in the south of Allerdale (all working age claimants covered by the Workington and Whitehaven jobcentre plus offices) from November 2016. This means that application for universal credit will no longer be restricted to straightforward claims and will be open to any customer type including more complex claimant groups. Analysis of how this will affect the council still needs to be undertaken.

Council Tax

Council Tax flood relief has been issued to

Unoccupied 430 Partly Occupied 162 Temporary Accommodation 51 2nd Home/Empty 65 Total 708

And also 102 business rates premises.

2.6 Locality & Commercial Services Portfolio: Cllr Michael Heaslip

Streets

Following a re-tendering exercise Executive awarded a new three year contract for Grounds Maintenance to ISS Facility Services Ltd, from 1 April 2016. The new contract will secure savings for the Council with a minimal impact on service delivery.

Specialist equipment to deep clean streets (gum and similar problems) is being obtained through our contract partner FCC. This should improve cleansing standards. The equipment is through the existing contract with no additional cost to the Council.

Open Spaces

A new environmental improvement scheme has been prepared for a small area of public greenspace at the confluence of the Derwent and Cocker in Cockermouth through a partnership with Lovells and Jennings. Implementation to commence this spring.

Page 19 We have just started to work with a new community group, Friends of Allonby Green, who are looking at ways to enhance areas of green space in the village.

Early-stage consultation is underway for possible environmental improvements at Fleming Square and Harrington South Foreshore.

Waste & Recycling

We continue to pursue savings in the cost of residual waste (black bin) collection with delivery partner FCC and are making changes to collection rounds for greater efficiency. Collection days are unchanged, but some bins may be emptied sooner or later in the same day. Where the time is significantly different, details will be publicised.

Council Car Parks

A meeting of the Executive on 22 February agreed to delay making a decision on proposed changes to its car parking fees and charges. Prior to the meeting the Council received legal representations which outlined a number of issues to be considered. I proposed that the Executive agree to remove the report from the agenda to ensure all relevant considerations had been taken into account as part of the decision-making process. The Executive voted in favour of this motion. A new date for consideration shall be announced in due course.

Council Sports Recreation and Play Facilities

We applied for a grant from Sport England to improve the swimming facilities at Cockermouth Leisure Centre however this was not successful as the fund was significantly over subscribed.

Council Environmental Heritage Property

Officers have supported local “Friends Groups” at Siddick Pond and Harrington Reservoir who have both secured £15k each from the Robin Rigg West Cumbria Fund. The money will be used to improve public access and conservation work. Tenders are currently being prepared for the access improvements at Harrington. Unfortunately an application to the Tesco Community Fund in respect of Bankfield, Workington was unsuccessful.

Land & Water Ltd are preparing detailed design, specification and contract documents for the de-silting and restoration of Harrington reservoir, so that the work can be tendered this spring.

Page 20 2.7 Tourism and Culture Portfolio: Cllr William Jefferson

Coastal Community Teams

The final economic plans for Silloth and Maryport have been submitted to DCLG in accordance with the conditions of funding laid down by Government. The plans outline a wide range of projects aimed at boosting the tourism economy of the two coastal community areas. The Council will continue to support the two teams in developing an approach to the delivery of the plans.

Heritage Lottery Fund

The Council are working with the Heritage Lottery Fund (HLF) to produce a strategy combining the Heritage needs of the Borough with their many and varied funding streams that are available to us. The Council have commissioned Bowles Green Consultants to pull the strategy together combining our heritage assets from buildings to landscape to museums and archives. This will allow the Council to target specific HLF funding themes to support a range of community lead initiatives providing a much stronger and collaborative approach to conserving, restoring, celebrating and marketing our area.

Museums

Maryport Maritime Museum has recently introduced a “Virtual Tour” to enable visitors to the Museum with access difficulties to view the museum’s collection through a newly introduced touch display screen. The new screen allows visitors to view all three areas of the Museum – the White Star Room; Raised Floor area and the Main Gallery, and can move around between objects, displays and areas, zooming in to view displays in high resolution and explore objects in detail, reading points of interest on the screen with descriptions and information.

Carnegie Theatre

The theatre continues to thrive in its first year of being managed independently by the Carnegie Theatre Trust. The theatre recently hosted a wonderful youth amateur production of Les Miserable and has a very exciting new programme of shows and events planned for the spring. I’d encourage all Members to visit the theatre (and our Museums) and see for yourselves some of the great work that they are undertaking.

Britain in Bloom

Silloth has been named as a finalist in the Britain in Bloom competition. The town is in the coastal towns category and judges will visit in August to make their final decision.

Silloth will be judged on three criteria - horticultural achievement, community participation and environmental responsibility. Other national finalists in this category are Bute, Tenby, Filey, Mablethorpe amongst others.

Page 21 2.8 Housing Health & Wellbeing Portfolio: Cllr Carni McCarron-Holmes

Westfield Housing Association

The membership of this RSL stands at 41. Appraisal of the Director has taken place, Members were unanimous in their support of his performance. The staff had been given opportunity to offer their confidential views and without exception the response had been good. The management of the organisation finances were seen as good. No problems had been seen with the Board or the number of outside agencies the Director had business interaction with. Due to a variety of legislative changes over the past few years this Association operates on 4 different categories of Rent using different approaches as a result of circumstances. Voids and bad debts are under budget as a result of good management practices. Its Risk Management Strategy serves to address the expectations and requirements of the social housing sector and to meet this encourages risk awareness throughout the organisation ensuring it meets this by all staff.

Health

Health Watch Cumbria have been engaged by NHS Success Regime to carry out information gathering to inform on a new Strategy for Health and Care Delivery in April this year.

Throughout February the “Chatty Van” will visit Workington four times, Cockermouth on one occasion to ascertain views on:-

 How would people feel about receiving treatment in Cumbria delivered by specialist providers i.e. Newcastle Hospital Trust?  How far people are prepared to travel to receive treatment?  What services people would like to see delivered in their Local Community/Cottage Hospital?  What kind of support a family might need if their child was receiving treatment at a specialist centre away from home?

There will be other locations available in March for “Chatty Van” visits please log on to www.healthwatchcumbria.co.uk to see when it will visit you area.

Page 22 Agenda Item 11

At a meeting of the Executive held in Council Chamber, Allerdale House on Wednesday 13 January 2016 at 9.00 am

Members

A Smith (Chairman)

B Cannon W H Jefferson M Fryer P Tibble M Heaslip

Apologies for absence were received from Councillors K Hansen and C McCarron- Holmes

Staff Present

S Bell, S Elsworth, I Frost, C Hadfield, C Holmes, K Kerrigan, J Laycock, C Nicholson, Z Pluckrose, G Roach, A Seekings, S Sewell, G Wilson and P Wood

Also Present

Councillors C M Armstrong and C Tibble

292 Minutes

The minutes of the meetings held on 14 October and 4 November 2015 were signed as a correct record.

293 Declaration of Interest

None declared.

294 Questions

None received.

295 Members Announcements

None received.

296 Council Plan Delivery Plan Quarter 2 Performance Report 2015/16

The subject of the decision:

The Senior Policy and Performance Officer submitted a report which sought to advise members of the Council’s performance at the end of quarter two 2015/16, as measured by the Council Plan Delivery Plan.

Members considered the latest progress made against each of the key projects and actions set in the Plan.

Page 23 It was noted that a new risk ‘Significant unbudgeted expenditure arising from severe weather conditions’ had been added to the Corporate Risk and Issues log, currently rated the highest risk score at 16.

Members had a full and frank discussion around the style and content of the report.

The recommendation was moved by Councillor A. Smith and seconded by Councillor Fryer.

Alternative options considered:

None.

The reason for the decision:

To advise members of progress against the Council Plan key actions and projects.

The decision:

Resolved – That the report be noted.

297 Ageing Well - Report of Community Overview and Scrutiny Committee

The subject of the decision:

The Chair of Community Overview and Scrutiny submitted a report to provide an update to the Executive on the work and findings of the Ageing Well Work Group and asked members to consider the recommendations from the Community Overview and Scrutiny Committee.

Members were asked to note the content of a report from a meeting of the Ageing Well Work Group and to approve the subsequent recommendations from Community Overview and Scrutiny from 23 October 2015.

The Portfolio Holder for Locality Services thanked Scrutiny for the piece of work and welcomed the report. All members welcomed the proposed recommendations and felt it highlighted the importance the Council attached to improving health across the borough. Members asked whether there was scope to linking it in to the reducing poverty strategy.

Councillor Heaslip moved the recommendations. This was seconded by Councillor Cannon.

Alternative options considered:

Not to agree the recommendations.

Page 24 The reason for the decision:

To consider the findings of the Community Overview and Scrutiny: Ageing Well Work Group and consider the recommendations of the Community Overview and Scrutiny Committee.

The decision:

Resolved – That –

a) Allerdale Borough Council should act as a strategic facilitator, by being a bridge between organisations in order for best practice to be passed between organisations and allow those that are newly formed to have access to mentoring from established and experienced groups

b) Allerdale Borough Council should seek to support Neighbourhood Care Independence, a programme of activities, services & support for adults aged 18+ in local communities. Provided in Allerdale and Copeland by a partnership of voluntary organisations, led by Age UK West Cumbria

c) Allerdale Borough Council should use its avenues of communication with the residents of the borough to promote the ‘Ageing Well’ agenda and distribute related information, for example distributing checklists with Council Tax demands

d) Allerdale Borough Council should use its position to continue to encourage the provision of extra care housing within the borough

e) Each member of Allerdale Borough Council undertakes to map the facilities available in their ward and feedback twice a year.

298 Developer Contributions Supplementary Planning Document

The subject of the decision:

The Head of Development Services submitted a report which sought members to endorse a draft Developer Contributions Supplementary Planning Document (SPD) to go out for a 6 week public consultation.

The SPD would provide guidance on how the Council would calculate necessary Developer Contributions to support sustainable new development across the district.

The release of the document for consultation would offer members of the public, developers, landowners and parish and town councils the opportunity to provide comments on the Councils approach in line with the Statement of Community Involvement and the Town and Country Planning (Local Planning) (England) Regulations 2012.

Councillor Fryer moved the recommendation. This was seconded by Councillor Cannon. Page 25 Alternative options considered:

Not to endorse the draft Supplementary Planning Document.

The reason for the decision:

To meet the commitment made in the Local Plan (part 1) which stated that the Council would develop a Developer Contributions Supplementary Planning Document (SPD) to support Policy S21 (Developer Contributions).

The decision:

Resolved – That the draft Developer Contributions Supplementary Planning Document, as contained within Appendix 1 of the report, be approved for release for public consultation.

299 Award of Contract for Grounds Maintenance Services

The subject of the decision:

The Head of Community Services submitted a report which sought members to award the contract for a grounds maintenance service for a three year period from 1 April 2016 until 31 March 2019.

During the tendering period 66 potential suppliers had registered an expression of interest via the electronic portal ‘The Chest’. The Council issued a form invitation to tender to 9 suppliers that had pre-qualified, of which four tenders were submitted by the deadline on 4 December 2015.

Members were advised that the contract included many efficiencies including £200k of savings off the existing contract in line with the councils Medium Term Financial Plan. Financial penalties had also been put in place if the contractor failed to meet any of the contract conditions.

Councillor Heaslip moved the recommendations and was seconded by Councillor P. Tibble.

Alternative options considered:

To award the contract to the highest scoring tenderer or not to award the contract.

The reason for the decision:

The grounds services contract with ISS Facility Services Ltd was due to expire on 31 March 2016.

Page 26 The decision:

Resolved – That –

a) The contract for the provision of grounds maintenance services on behalf of the Council, for a total cost of £2,054,877, be awarded to Tenderer 3 as per the report b) The contract shall commence on the 1 April 2016 and unless terminated at an earlier date in accordance with the Agreement, shall continue in force for a period of thirty six (36) months and shall terminate on 31 March 2019 (co-terminus with the contract for refuse, recycling and street cleansing). There was to be no option to extend the contract period beyond the 31 March 2019.

The meeting closed at 10.40 am

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Page 28 Agenda Item 12 Allerdale Borough Council Council – 2 March 2016 Recommendations referred to Council Budget 2016-17 – Revenue and Capital ______The following recommendations have been referred to Council by the Executive held on the 22 February 2016. It is for Council to consider its response. Following the Executive meeting on 22 February, there have been no amendments to parish precepts and therefore no amendments to the figures. Recommended – That Council be requested to agree that:

1) The total planned revenue expenditure was £15,510,043 including parish precepts of £1,797,392

2) £14,908,188 be approved as the Council’s net Budget requirement for 2016-17

3) An increase in Council Tax of 1.9% be approved

4) A review of the policy on the use of reserves be undertaken as part of the four year efficiency plan required as part of the local government finance settlement

5) It was not proposed to make any changes to the Council’s Council Tax Reduction discount scheme and Executive recommend the current scheme to remain in place for 2016/17

6) The amount of central government funding in respect of council tax support funding included in the Councils Settlement Funding Assessment to be paid to Town and Parish Council be set at £61,997 (Appendix A)

7) The revenue estimates as approved are used in the calculation of the basic amount of tax under Section 31of the Local Government Finance Act 1992

8) The minimum level of non-earmarked general fund balances be set at £2.7m and that no maximum level be set

9) That the capital budget of £8,215,000 (comprising £3,265,000 in 2016-17 and £4,950,000 2017-18 to 2019-20) be approved

10) That the proposed capital budget be financed as follows:

 Capital Receipts………..£97,000

 Government Grants……£600,000

 Borrowing……………….£1,918,000

 Revenue………………...£650,000

G Roach Democratic and Support Services Manager

Page 29 This page is intentionally left blank

Page 30 Allerdale Borough Council

Executive – 22 February 2016 Council – 2 March 2016

Budget 2016-17 – Revenue and Capital

The Reason for the Decision To present the draft revenue and capital budget and the formal advice of the chief financial officer on the robustness of the estimates included in the budget and the adequacy of the reserves which support the Council’s budgetary plans.

Summary of options considered The Council has a statutory requirement to approve a balanced budget. The draft budget proposes an increase in Council Tax of 1.9%. A number of growth bids and savings bids were submitted and are considered in this report. The proposed budget will result in a requirement to draw on the Council’s financial reserves (GF and earmarked GF balances) to support the Council Priority expenditure. A public consultation exercise relating to options included in the Council’s draft budget proposals was carried out between November 2015 and January 2016.

Recommendations It is recommended that: 1. The total planned revenue expenditure is £15,510,043 including parish precepts of £1,797,392. 2. £14,908,188 is approved as the Council’s net Budget requirement for 2016-17. 3. An increase in Council Tax of 1.9% is approved. 4. A review of the policy on the use of reserves is undertaken as part of the four year efficiency plan required as part of the local government finance settlement. 5. No changes are made to Council’s Council Tax Reduction discount scheme and that the current scheme remains in place for 2016-17. 6. The amount of central government funding Page 31 in respect of council tax support funding included in the Councils Settlement Funding Assessment to be paid to Town and Parish Council is set at £61,997 (Appendix A). 7. The revenue estimates as approved are used in the calculation of the basic amount of tax under Section 31of the Local Government Finance Act 1992 8. The minimum level of non-earmarked general fund balances is set at £2.7m and that no maximum level is set. 9. That the capital budget of £8,215,000 (comprising £3,265,000 in 2016-17 and £4,950,000 2017-18 to 2019-20) is approved. 10. That the proposed capital budget is financed as follows:  Capital Receipts………..£97,000  Government Grants……£600,000  Borrowing……………….£1,918,000  Revenue………………...£650,000

Financial / Resource Implications As set out in the report. The revenue estimates will form part of the calculation of the overall council tax level to be set.

Legal Implications Statutory requirement to set a balanced budget.

Community Safety Implications None

Health and Safety and Risk The budget contains provision for the Council to Management Implications discharge its obligations under health and safety legislation, and to maintain a reserve in order to manage risks. There are also risks that the Council will not be able to operate within agreed budgetary provisions but this can be minimised by the financial monitoring process and by the prudent policy on the level of reserves and balances.

Equality Duty considered / Impact As part of the budget growth bids and savings Assessment completed bids process.

Wards Affected All

Page 32 The contribution this decision would The revenue budget is set to support the Council make to the Council’s priorities in achieving priorities through the Council Plan and to facilitate control of expenditure on its activities.

Is this a Key Decision Yes

Portfolio Holder Councillor Barbara Cannon

Lead Officer Catherine Nicholson Head of Financial Services 01900 702503 [email protected]

Report Implications (Please delete where applicable).

Community Safety Y Employment (external to the Council) Y Financial Y Employment (internal) Y Legal Y Partnership Y Social Inclusion Y Asset Management Y Equality Duty Y Health and Safety Y

1.0 Introduction

1.1 The Council has a statutory responsibility to set a balanced budget for each financial year. This means that the Council’s expenditure on services must be contained within the available funding envelope.

1.2 This report sets out the following:  outcome of the 2016-17 Budget Consultation;  the proposed revenue budget for 2016-17; and  the proposed capital budgets for 2016-17 to 2019-20.

1.3 This report also sets out the chief finance officer’s report to the Council (made under section 25 of the Local Government Act 2003) on the: (a) the robustness of the estimates made for the purposes of the Council’s budget calculations and (b) the adequacy (or otherwise) of the Council’s financial reserves

to which members are required to have regard to when making decisions about the Council’s budget calculations.

Page 33 2. Budget Consultation

2.1 Consultation with the public is a key part of the budget setting process, where proposals put forward by the Executive are considered and commented on by individuals and organisations. After this is completed and the results analysed the budget is considered by the Executive prior to referral to Council for further consideration and approval.

2.2 The Budget consultation was held between 9 November 2015 and 14 January 2016. The consultation was held largely via our website and the designated consultation pages, allowing people to electronically submit responses. All parish and town councils were sent the consultation, as were various partner organisations and third parties. Hard-copy versions of the consultation were available in our offices for people to send back in the post.

2.3 The consultation document included a background to the Council’s financial situation and the fact the Council has to “close a financial gap of £3.47million over four financial years until 2018/19”. The consultation also included detail of where the Council’s money came from and concentrated on a number of key areas of spend.

2.4 From the responses received the majority were in favour of the proposals put forward in the consultation. The key points from the consultation were as follows:

 76% of the responses received were in favour of the 1.9% increase in Allerdale’s portion of the Council Tax bill.

 With regards to the question relating to reviewing our contacts, 90% of the responses received were in favour of some slight changes to services if it meant savings could be achieved through better procurement and renegotiation.

 61% of responses agreed with the proposal to introduce charges for our trade waste customers for their recyclable waste.

 With regards to car parking, 76% of the responses received agreed that we are right to review our fees and charges given that they have not been reviewed for nearly four years.

2.5 A summary of consultation responses can be found in Appendix K.

Page 34 3. National and Local Context

2015 Spending Review and Autumn Statement

3.1 The Council’s annual budget is set within the context of the 2015 Spending Review and Autumn Statement on 25 November 2015. This sets out the government’s economic forecasts and spending plans for 2016-17 to 2020-21 along with the action required to achieve a public spending surplus in 2019-20.

3.2 Measures announced in the joint Spending Review and Autumn Statement include:  phasing out revenue support grant over the course of the current Parliament and additional responsibilities devolved to local authorities; a consultation on the details is expected in 2016;  an extension of the doubling of small business rates relief for a further 12 months until 31 March 2017  abolition of the uniform business rate with local authorities to retain 100% of business rate revenues by the end of the current Parliament. However the system of top ups and tariffs which redistributes revenues between local authorities will be retained  proposals to reduce the funding for New Homes Bonus by £800m, or about two-thirds, with a consultation on reforms to the New Homes to be published alongside the provisional local government finance settlement  flexibility to spend 100% of fixed asset receipts (other than receipts from right to buy), on the revenue costs reform projects - subject to conditions and qualifying criteria  increasing funding for the Disabled Facilities Grant (DFG) from £220m in 2015-16 to £500m by 2019-20  giving local authorities responsible for adult social care additional flexibility to raise council tax by up to 2% in order to fund adult social care (on top of their existing referendum threshold).

3.3 Whilst improvements in public finances since the Summer Budget of 2015 brought some respite to departmental budgets, core central government funding to local government - comprising business rates and revenue support grant - will fall by 24% in real terms, or £4.1bn, over the Spending Review period. When taking into account the Office for Budget Responsibility’s (OBR) forecasts of income raised locally by councils, the overall position is a 6.7% cent real terms reduction in local government spending over the spending between now and 2020.

Page 35 Local Government finance report and provisional settlement 2015

3.4 The provisional local government finance settlement for 2016-17 was issued on 17 December 2015, and sets out the distribution of centrally allocated resources for local authorities in England. The final settlement was issued on 8th February 2016. The settlement also includes indicative local authority allocations up to 2019-20 and an offer to any council that wishes to take it up of a four-year funding settlement to 2019-20. This offer is however subject to revision as a result of changes to the business rates multiplier; the effects on top-ups and tariffs of business rates revaluation in 2017-18; the outcome of the consultations on New Homes Bonus and the Better Care Fund and progress towards 100% business rates retention. The offer is also dependent on local authorities publishing efficiency plans by October 2016.

3.5 The Settlement outlines the provisional Settlement Funding Assessment – (SFA) (comprising Revenue Support Grant and Baseline Funding) for local authorities and the impact on the core spending power of local authorities, as defined by Government for 2016-17, (i.e. the aggregate of the SFA, council tax income, new homes bonus, Better Care Fund funding and rural services delivery grant).

3.6 At the national level local authorities will, on average, see a reduction in the Settlement Funding Assessment in 2016-17 of 12.5% compared to 2015-16 and a reduction of 31.8% between 2015-16 and 2019-20. Core spending, compared to 2015-16 will reduce by an average of 2.3%. Over the spending review period the spending power for local authorities across England will fall from £44.50bn in 2015-16 to £44.32bn in 2019-20. – a 0.4% reduction in cash terms and a real terms reduction of over 6%. The reduction in the settlement funding assessment over the period 2015-16 to 2019-20, includes a reduction of £7.3bn (77%) in revenue support grant funding

3.7 Between 2015-16 and 2019-20 the Council’s core spending power is projected to fall by 10.1% in cash terms, from £11.5m to £10.3m. This includes a reduction of £2m (34%) in the Settlement Funding Assessment offset by a projected increase of £0.6m (13%) in council tax income (including base growth and levels increasing by CPI). Revenue grant funding is expected to fall from £2.523m in 2015-16 to £0.196m in 2019-20.

3.8 Despite receiving a ‘flat-cash’ settlement over the next four years, there are still very significant challenges ahead for councils who will have to make savings sufficient enough to compensate for any additional cost pressures they face. These include those arising from general inflation, increases in demand for services and increases in core costs such as national insurance, the National Living Wage and pension contributions.

3.9 The maintenance of a broadly flat cash settlement, in the context of significant grant reductions, is achieved largely through an assumption that throughout the period to 2019-20:  Councils will take up the option to raise council tax in line with the OBR’s forecast for CPI for each year (which is an annual average of 1.75%) (plus an additional 2% for social care where relevant) Page 36  average annual growth in the council tax base remains consistent with the growth achieved between 2013-14 and 2015-16; an average of around 1.9% annually.

4. Local Government funding - resources available to support the 2016-17 Revenue Budget

4.1 The Council’s net revenue budget is funded from:  Central Government grants  The Business Rate Retention Scheme (non-domestic rates)  Council Tax  Income from fees and charges  Interest and investment income.

Government Grants

4.2 Following introduction of the Business Rate Retention Scheme (BRRS) in April 2013 central government support for local government (the Settlement Funding Assessment) now comprises two main funding streams: i. Revenue Support Grant (RSG), and ii. amounts funded through the Business Rates Retention scheme (the (NNDR) baseline funding level).

4.3 The Settlement Funding Assessment incorporates a number of grants previously paid as separate funding streams. There are also various specific grants (sometimes called targeted grants) distributed outside the settlement. The basis on which these grants are distributed varies from grant to grant. They include non-ring fenced grants, which have no accompanying restrictions on what councils can spend the money on, and ring-fenced grants where the expenditure is controlled to fund a particular service that is a national priority.

Revenue Support Grant

4.4 Revenue Support Grant is a non-ring-fenced central government grant that can be used to finance revenue expenditure on any service. The amount of Revenue Support Grant to be provided to local authorities is established through the local government finance settlement.

4.5 The Council’s RSG settlement for 2016-17 - included in the Finance Settlement for 2016-17 - is £1.7m. This represents a reduction of £0.823m (33%) on the amount (£2.523m) awarded in 2015-16 and a cumulative reduction of £3.1m (65%) on the amount received in 2013-14.

Page 37 Table 1: Provisional local government settlement 2016-17 2015-16 2016-17 Change Change Settlement Funding Assessment £000 £000 £000 % Revenue Support Grant 2,523 1,700 (823) 32.6 Baseline funding 3,318 3,346 28 0.84 Total 5,841 5,046 795 13.6

Rural Services Delivery Grant (RSDG)

4.6 In 2015-16 RSDG was rolled into Revenue Support Grant (allocation included was £62k). For 2016-17 onwards this is a separate grant.

4.7 In the provisional settlement extra funding was made available for RSDG nationally and our share increased pro-rata to £80k.

4.8 However at final settlement the government has decided to increase nationally the amount of rural services delivery grant for the next 2 years, to reduce the pace of decline in overall funding of rural authorities.

4.9 Allerdale’s allocation – which will now be paid in addition to revenue support grant is £323,546 in 2016/17 and £261,249 in 2017/18.

Other Government Grants – New Homes Bonus

4.10 The New Homes Bonus was announced as part of the Comprehensive Spending Review in 2010. It match funds the council tax raised on the net number of additional new homes and long term empty properties brought back into use and is based on data included in the Council Tax Base Return (CTB1) submitted in October each year. In two-tier areas the bonus is split 80:20 between the district and county councils. The grant is currently payable for a total of six years. This means that the total will rise for at least the first six years of the scheme which commenced in 2011-12.

Table 2: New Homes Bonus Grant Year of Payment (Allerdale Borough Council Share) Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 £000 £000 £000 £000 £000 £000 1 84 84 84 84 84 84 2 16 16 16 16 16 3 222 222 222 222 4 469 469 469 5 277 277 6 458 Total 84 100 322 791 1,068 1,526

4.11 The provisional allocations of new homes bonus funding for 2016-17 was announced in early December. Final allocations were published alongside the Page 38 final local government finance settlement in February 2016. The Council’s allocation of New Homes Bonus grant funding for 2016-17 is £1,525,500. The New Homes Bonus is paid as a non-ring-fenced grant meaning the Council is free to decide how to spend it and can spend it on either revenue or capital or place it in reserves.

4.12 Although no changes are proposed to the calculation of New Homes Bonus grant allocations in 2016-17 a consultation on reforms to the New Homes Bonus, was issued alongside the provisional 2016-17 settlement. Reforms under consideration include:  reducing the number of years for which legacy payments under the Bonus are to be paid will from 6 years to 4 years.  other measures to improve the incentive impact of the bonus in order to better reflect local authorities’ performance on housing growth.

Business rates (non-domestic rates- NNDR) 4.13 Under the business rates retention scheme, 40% of business rates (NNDR) collected is retained by the Council. The remainder is paid to Central Government (50%) and Cumbria County Council (10%). The scheme also provides that certain sums are to be treated as being outside the scheme and retained in their entirety by the Council (or by the Council and the County Council).The Council is also able to retain the growth in the local share of business rates subject to the payment of a levy to central government designed to prevent disproportionate increases in the Council’s funding as a result of growth in business rates income.

4.14 A system of top-up and tariffs ensures the Council’s share of estimated business rates income (business rates baseline) does not exceed the level of funding to be provided through the business rates retention scheme (baseline funding). Tariffs, top-ups and baseline funding levels are indexed each year in line with the small business rates multiplier (usually set at the September RPI). The Council’s baseline funding for 2015-16 is £3.346m and the amount of tariff payable in 2016-17 £6.952m.

4.15 The amount of business rates income available to the general fund and taken into account when setting the budget is based on an estimate - made in January preceding the start of the financial year - of business rate income to be collected in the financial year. This estimate, reported in the government return NNDR 1, also determines how much the Council must pay to central government and the County Council during the course of the year.

4.16 The estimate of business rates income takes into account any projected increases in the tax base, estimated losses due to appeals and expected collection rates. Because the amounts paid to the County Council and central government, and retained by the Council are fixed at the outset of each year (based on estimates included in the Council’s NNDR 1return) any difference between estimated amounts and final outturns will result in a surplus, or deficit on the Council’s Collection Fund. An estimate must therefore be made by the Council of the surplus or deficit on the Collection Fund at the end of the previous financial year. This estimated amount is then shared between the Council, Page 39 Cumbria County Council and central government and added (or subtracted) from each Authorities share of the following year’s non-domestic rating income.

4.17 A summary of the business rate income included in the 2016-17 budget is shown in the following table

Table 3: NNDR funding 2016-17 based on the Council’s NNDR 1 form Funding Element £’000 Allerdale Share of NNDR Income (from NNDR1) 11,617 Net tariff payable to Central Government (6,952) S31 grant 813 Levy payable (net of reduction under pool arrangements) (519) 4,959 Share of estimated collection fund deficit at 31 March 2016 (261) Total estimated income from NNDR 4,698

4.18 As part of the business rates retention scheme, local authorities have the option of working with neighbouring authorities to seek formal designation as a pool which is treated as a single authority for the purpose of certain calculations under the scheme. This provides the opportunity to increase the amount of growth in the local share retained locally (through a reduction in the levy rate). Pooling also provides scope to manage the impact of volatility in rates income across a wider economic area.

4.19 After undertaking appropriate due diligence including modelling the individual position alongside the pool position the Authority entered into a formal pooling arrangement with Barrow Borough Council, Carlisle City Council, Cumbria County Council, Eden District Council and South Lakeland District Council in October 2013. The pool commenced on 1st April 2014 and will continue to operate in 2016-17. In 2016-17 it is anticipated that additional business rates income of £257k – that would otherwise have been paid to central government through the levy payment – will remain available to the Council’s general fund.

4.20 In the Autumn Statements 2012, 2013, 2014 and 2015 the Government announced changes to the business rates system that affect the business rates income of local authorities. The following changes will affect the Council’s business rates income in 2016-17: i) exempting empty new build properties from empty property rates for 18 months (Autumn Statement 2012) ii) permitting ratepayers receiving Small Business Rate Relief that take on an additional property to continue to receive their current relief for 12 months(Autumn Statement 2013) iii) providing a 50% business rates relief for 18 months for businesses that - between 1 April 2014 and 31 March 2016 - move into retail premises that have been empty for a year or more (Autumn Statement 2013) iv) providing discretionary relief to ratepayers with a rateable value of £50,000, or less, in lieu of transitional relief for 2015-16 and 2016-17 (Autumn Statement 2014) Page 40 v) extending the doubling of small business rates relief for a further 12 months until 31 March 2017 (Autumn Statement 2015).

4.21 The Government has undertaken to compensate local authorities for the loss of income they suffer as a result of these changes by means of a grant payment under Section 31 of the Local Government Act 2003. Section 31 grant will also be payable to compensate authorities for the ongoing loss of business rates as a result of the decision to cap the increase in the small business multiplier to 2% in each of 2014-15 and 2015-16

Council tax

4.22 Each year the Council must calculate the amount of revenue it needs to raise through council tax (the council tax requirement). Calculation of the council tax requirement is calculated based on the Authority’s estimates of:  the expenditure it will incur in the year less estimates of the income it will receive from government grants, business rates and fees and charges  allowances required for contingencies in relation to amounts to be charged or credited to revenue  the financial reserves it will be appropriate to raise in the year for meeting its estimated future expenditure, less  the amount of the financial reserves that will be used in the financial year to meet expenditure.

4.23 The Authority’s council tax requirement must also take into account the amounts the Council is required to transfer during the year between its General Fund and Collection Fund in respect of its share of any surpluses or deficits on the Collection Fund for the previous year in respect of business rates and council tax.

4.24 The amount of council tax income available to the Council’s general fund in the financial year is fixed at the level determined when the council tax is set. This amount is paid out of the Council’s Collection Fund regardless of how much council tax is actually collected during the year. As a consequence if more council tax is collected than expected a surplus on the Collection Fund will arise; if less is collected, a deficit will result. Statutory provisions require the surplus or deficit on the council tax element of the collection fund for the previous year to be estimated on 15th January of that year. The estimated surplus/deficit on the Collection Fund is shared out between the Council and the major precepting authorities (Cumbria County Council and the Police and Crime Commissioner for Cumbria) in the following year and taken into account in the budget calculations for that year.

4.25 The estimate of the collection fund surplus in respect of council tax at 31 March 2015, to be distributed in 2016-17, is £1,115,213 of which Allerdale Borough Council’s share is £148,971.

Page 41 Table 4: Allocation of collection fund surplus (council tax) at 31 March 2016 Share of surplus £000 Cumbria County Council 819 Cumbria Police and Crime Commissioner 147 Allerdale Borough Council 149 Total estimated surplus 1,115

Proposed council tax increase

4.26 The Council has the ability to set any level of council tax increase. However whilst the Localism Act 2011 abolished Council Tax capping in England it introduced, in its place, a power for local electorates to approve or veto excessive council tax rises. From 2012-13 onwards, an authority setting a council tax increase which exceeds principles endorsed by the House of Commons alongside the local government finance settlement (i.e. which is “excessive”) will be required to hold a council tax referendum. The result of a council tax referendum is binding.

4.27 In 2015-16 increases of 2% or more in council tax (the relevant basic amount of council tax plus any levies) exclusive of parish precepts were sufficient to trigger a referendum. The threshold for 2012-13 was 3.5% and for 2013-14 and 2014- 15, 2% respectively. For 2016/17 the threshold level at which council tax increases will be considered excessive is 2% or more and £5 greater than the amount of council tax in 2015-16.

4.28 In the 2010 spending round the government announced that it would fund a four year council tax freeze to enable local authorities to freeze their council tax over the four year period of the spending review (2011-12 to 2014-15) at a rate of 2.5% in each year of the Spending Review period. In the Spending Round 2013 the government announced further council tax freeze grant would be payable to support councils that froze or reduced Council Tax in 2014-15 and 2015-16 - the grant being equivalent to a 1% increase in council tax.

4.29 The Council accepted the freeze grant in 2011-12; worth around £114k p.a. for each of the four years. However, based on the Council’s assessment of the longer term impact on its capacity to raise income through council tax, subsequent offers of council tax freeze grant, in four years 2012-13 to 2015-16, were declined. Council tax was subsequently increased by 2.9% in 2012-13 and 1.9% in 2013-14, 2014-15 and 2015-16. Legacy funding for council tax freeze grants is now included in the local government settlement totals (revenue support grant) for future years.

4.30 In line with expectations the Finance Settlement 2016-17 included no provision for the payment of Council Tax Freeze Grant for the period 2016-17. The Council therefore proposes to increases Council Tax by 1.9%.

Page 42 Council tax base

4.31 After calculating its council tax requirement each local authority then sets its basic amount of council tax (band D) at the level necessary to raise this amount, taking into account its likely collection rate. The basic amount council tax is calculated by reference to the Council’s council tax requirement and its council tax base.

4.32 The council tax base is the number of Band D equivalent dwellings in a local authority area. The tax base is therefore an estimate of the taxable capacity for the borough as a whole and for each parish area. To calculate the tax the number of dwellings in each council tax band is reduced to take account of discounts and exemptions. This includes reductions awarded under the Council’s Council Tax Reduction Scheme. The resulting figure for each property band is then multiplied by its proportion relative to Band D (from 6/9 for Band A to 18/9 for Band H) and the total across all eight bands is calculated. An adjustment is then made for the collection rate.

4.33 The tax base for 2016-17 has been set at 29,470.69. This represents an increase of 1.96% on the 2015-16 tax base of 28,905.29.

4.34 Council tax raised on behalf of parish and town councils (‘Parish Precepts) are incorporated into the Council’s general fund budget and council tax requirement. Details of parish precepts for 2016-17 are set out in Appendix B.

Grant to Parish Councils re Local Support for Council Tax

4.35 Under the Welfare Reform Act 2012, Council Tax benefit paid to low income households was abolished from 1st April 2013. In its place, all Billing Authorities were required to put in place a Local Support for Council Tax scheme (LSCT),which is a discount scheme (similar to single person discounts but with variable rates of discount depending on individual circumstances). The changes introduced by the 2012 Act also necessitated amendments to the way in which the Council Tax base is calculated.

4.36 Prior to 2014-15, funding for Council Tax Support schemes was separately identifiable in the formula grant settlement. However, from 2014-15 this funding has been “rolled up” into the Council’s Revenue Support Grant which has subsequently been scaled back and hence the amount of grant available to pass onto parishes continues to reduce.

4.37 DCLG has continued to stress that it is for each local authority to determine how the funding to Town and Parish councils is allocated. Whilst there are no plans to make the redistribution of these monies compulsory, the Government is expecting some funding to be allocated to parishes. As this Council’s revenue budget continues to come under pressure from continuous reductions in Central Government funding, the level of redistributed to parishes also needs to be reviewed.

Page 43 4.38 The DCLG’s preferred approach to funding local precepting authorities in relation to local council tax support schemes is through a voluntary arrangement whereby billing and local precepting authorities agree the amount of funding, allocated initially to billing authorities, to be passed down to local precepting authorities.

4.39 In 2015-16 the amount of CTRS grant funding passed to Town and Parish Councils was reduced to £92,533; the reduction of 30% mirroring the reduction in the funding receivable by the Council from Central Government in 2015-16. In 2016-17 it is proposed that  the budget for 2016-17 is set at £61,997; the reduction of £30,536 (33%) mirroring the reduction in the funding receivable by the Council from Central Government for 2016-17.  the grant to be redistributed is allocated based on the indicative council tax discount entitlements included in calculation of the Council’s Council Tax Base.

4.40 The proportionate share of the £61,997 grant allocated to individual Parish and Town Councils is summarised in Appendix A to this report.

4.41 Members are requested to approve the allocation of this grant to Parish Councils, which will be paid as part of the normal precept funding to Parish & Town Councils.

5. Determination of the council’s net budget (budget requirement)

5.1 Preparation of the council’s 2016-17 net revenue budget begins with a roll forward of the 2015-16 recurring base budget (£12,466k). This figure is then adjusted to accommodate:  changes to pension deficit funding payable to the Cumbria Local Government Pension Scheme;  changes to salary costs including the impact of pay awards, incremental pay increases and changes to establishment ;  recurring growth and savings ;  self-sufficiency savings; and  non- recurring growth and savings - i.e. those required for the current year only.

Page 44 5.2 The key the assumptions / parameters that were adopted as part of this budget are:-  to prioritise delivery of the council plan with a strong emphasis on supporting economic growth to support our self sufficiency plans  to continue to identify areas where efficiencies, both cash and non- cash, can be identified;  income from fees and charges will be generated and / or increased in line with the charging policy;  Inflation will be added to the base budget in line with our contractual commitments based on the relevant measure of inflation;  the salary budget provision will be calculated based on revised structures and will continue to allow for a 2% reduction to account for the fluctuation and movement of staff throughout the year; and  Council Tax increases to be built into the budget at 1.9% p.a.

5.3 The Council’s net revenue budget (budget requirement) for 2016-17 is shown in table 5

Table 5: 2016-17 Revenue Budget 2016-17 Reference £000 Base Budget 12,466 Pension deficit funding 209 5.7 Change in salary costs 214 5.8 Recurring growth 699 5.10/Appendix D Recurring savings (386) 5.11/Appendix D Self-sufficiency savings (1,028) 5.13 Recurring (base) budget 12,174 Non-recurring growth 1,236 5.15/Appendix E Non-recurring savings (300) 5.16/Appendix E 13,110 Expenditure on earmarked priorities 602 Appendix H Proposed Budget (excluding parish precepts) 13,712 Parish precepts 1,797 Appendix B Proposed Budget (including parish precepts) 15,509 Appendix C Less: Planned use of earmarked balances (602) Appendix H 14,907

Page 45 5.4 The Council’s net budget requirement is funded as follows:

Table 6: 2016-17 Revenue Funding 2016-17 Paragraph £000 Revenue support grant 1,700 4.5 Rural Services Delivery Grant 323 Other government grants (New Homes Bonus) 1,526 4.6 Council tax – including parish element 6,511 4.26 Collection fund surplus/(deficit) - Council Tax 149 4.21 NNDR funding 4,959 4.13 Collection fund surplus/(deficit) - NNDR (261) 4.13 Total funding 14,907

5.5 The draft net expenditure for 2016-17, excluding parishes and spend on earmarked priorities (met from the use of earmarked reserves) is £13,110k. This compares with a total of £12,696k for 2015-16 (revised). The reasons for the movement between 2015-16 (revised) and 2016-17 is detailed in Appendix F.

5.6 The Revenue Budget for 2016-17 is presented by service at Appendix C. It should be noted that these budget figures are presented prior to the allocation of salary and support costs to the appropriate service heads. This exercise will be undertaken prior to the publication of the budget but will not have any impact on the funding requirements for budget approval.

Pension increase - £209k

5.7 The latest triennial actuarial valuation of the Cumbria Local Government Pension Scheme was completed as at 31 March 2013. This set the Authority’s Employers Contribution Rate for the three years beginning 1 April 2014 at 12.6% plus employers deficit funding contributions of £615.8k in 2014-15; £791.3k in 2015- 16 and £980.2k in 2016-17.

Change in salary costs – £214k

5.8 This is the total increase required to cover a number of changes in the salary budgets. It covers the cost of the nationally agreed pay award (£76k), the cost of annual increments due, known changes to staffing structures, as well as any changes to the national insurance rates payable (£138k).

Recurring growth - £699k

5.9 Details of recurring growth bids included as adjustment to the Councils base budget are summarised in table 7 below:

Page 46 Table 7: Recurring growth bids 2016-17 Bid Bid Detail £000’s Waste Management: Contractual inflationary increase. 86 Town Centres: Continued Funding for Town Centre Projects. 80 Apprentices & Graduates: Increase in support for the apprentices and 72 graduate employment scheme Off-Street – Owned Car Parks: Out Sourcing of cash collection. 68 Festivals and Events: Funding to support local festivals (Taste Cumbria, 60 Northbound) and events (Allerdale Live). Insurance: Retendering of insurance cover and anticipated increase in 39 policy costs Banking & Interest: Increase in PWLB interest costs to reflect full year 35 impact of additional borrowing expected in 2016-17 Policy & Performance: Annual funding for fixed term post of Executive 32 Policy Officer required for the period April 2016 to May 2019 Communications: Communications and Marketing Officer (new post) 30 Multi Storey Car Park: Increase in rental charge per agreement 30 Trade Waste: Increase in disposal costs per tonne of waste 24 Sports Centre: Increase in base contract price 22 Parks & Grounds Maintenance: Contractual inflationary increase 21 Domestic Waste: Purchase of replacement bins 20 Electoral Registration: Additional resources for 2016-17 canvasses to ensure the Authority complies with the requirements of Individual Electoral 19 Registration. Sports Development: Funding for the provision of ‘’10p swimming’’ for 15 children and young people Corporate Property: Maintenance costs for empty non-operational 13 properties Elections: Annual contribution to earmarked reserves to cover elections 10 costs Total of service bids with an individual value <10k 23 Total recurring growth bids 699

Recurring savings – (£386k)

5.10 Details of recurring savings bids included as adjustment to the Councils base budget are summarised below:

Page 47 Table 8: Recurring savings bids 2016-17 Bid Bid Detail £000’s Benefits: Net reduction in Housing Benefit payments due to an anticipated (112) reduction in caseload and associated subsidy. Minimum Revenue Provision: Reduction in MRP generated from the (86) application of general fund balances and MRP charged in prior year Shared Revenues & Benefits: Reduction in staff costs (45) Shared ICT Costs: Net reduction in shared ICT costs (34) Parish Councils: Reduction in Council Tax Reduction Scheme grant (31) Economic Growth: Cessation of grant to BEC (20) Carnegie Trust: Reduction in subsidy awarded as per agreement (15) Crime Prevention: Savings following transfer of CCTV monitoring to police (14) Keswick Museum and Art Gallery: Planned reduction in subsidy (12) Total of service bids with an individual value <10k (17) Total recurring savings bids (386)

Self - sufficiency savings

5.11 The 2016-17 budget is set within the context of the Council’s Medium-Term Financial Plan (see Appendix I). This shows that in order for the Council to continue to meet its statutory obligation to deliver a balanced budget it will need to deliver self-sufficiency savings totalling £3.548m over the period 2015-16 to 2018-19 (see Appendix J).

5.12 To ensure that the Council remains financially sustainable and deliver a balanced budget the proposed 2016-17 budget includes savings of £1,028k (summarised in Table 9 below) and an increase in financing of £300k; giving an overall self- sufficiency target for 2016-17 of £1,328k.

Page 48 Table 9: 2016-17 Self Sufficiency Savings Target 2016-17 Service £000 Economic Growth Economic Development Initiatives (150) (150) Operational Efficiencies Service redesigns (75) Transformation and Commissioning (50) Advertising (20) Planning (45) Sports Centre Management (188) Town and parish transfers (50) (428) Service Delivery Off Street owned Parking (75) Waste Management (175) Parks & grounds Maintenance (200) (450) Total revenue savings (1,028) Financing Increase business and C-tax base (300)

Total self-sufficiency savings (1,328)

Non-recurring growth/savings

5.13 There are a number of bids that are non-recurring, i.e. they are required for one year only and these are detailed below:

Non-recurring growth - £1,236k:

5.14 Details of non-recurring growth bids included in the Council’s net budget requirement are:

Page 49 Table 10: Non-Recurring growth bids 2016-17 Bid Bid Detail £000 Legal Services: Provision for potential appeals, judicial reviews, contract 500 reviews/agreements and procurement Economic Development: Financial support for delivery of the economic 219 development strategy Shared IT Services: Improvements to core network infrastructure - £50k Virtual Workspace - £50k;Replacement of multi-functional printers - £30k; Developments of Content Management solution to meet future service 175 needs - £20k Implementation of a suitable back up internet connection to deliver business continuity - £15k; Implementation of Member/Officer wi-fi access at area offices - £10k Major Incident Reserve: Contingency for response to future major 100 incidents Communications & Marketing: Supporting marketing of the Borough to 100 increase visitor numbers and encourage business growth Maryport Town Centre: Shop Front Improvement Scheme 50 Off Street Parking – Owned: Investment required to improve car parks 30 throughout the borough Coast Protection & Inland Flooding: Repairs to hand rails at Maryport 30 promenade Supporting Leisure Activities: Additional contribution to Wigton Pool 20 Total of service bids with an individual value <10k 12 Total non-recurring savings bids 1,236

5.15 The Council holds a central contingency for unquantifiable risks. Including the balance held for the 2016-17 pay award shown above the contingency for 2016- 17 stands at £202,934 as shown in Appendix C.

Non- recurring savings - (£300k):

5.16 Details of non-recurring saving bids included in the Councils net budget requirement are summarised in table 11.

Table 11: Non-recurring savings bids 2016-17 Bid Bid Detail £000 Minimum revenue provision : reduction in MRP generated from the application of general fund balances and deferring commencement of MRP (206) on the new leisure centre until 2017-18 Director of Operations: removal of vacant post (94) Total non-recurring savings bids (300)

Page 50 6. Capital budget

6.1 Capital expenditure includes the acquisition and construction of non-current assets, such as land and buildings, which have a useful life in excess of 12 months as well as expenditure on additions to or enhancement of existing non- current assets. It also includes items such as grants towards capital expenditure incurred by third parties (for example Disabled Facilities Grants).

6.2 The following paragraphs set out the Council’s proposed capital programme for 2016-17 and subsequent years together with a summary of how this expenditure will be financed.

6.3 Capital expenditure may also impact on the Council’s revenue budget. Where this is the case the revenue implications of capital expenditure are dealt with as part of the Revenue Budget Process. Revenue implications of capital expenditure include:  increases/decreases in operating costs, e.g. heating & lighting, staff costs or increased income from new or enhanced assets.  for expenditure not financed up front from capital receipts, grants or contributions from revenue - the Minimum Revenue Provision, which is an annual amount the Council is required to be set aside from the General Fund to meet the capital cost of expenditure funded by borrowing or credit arrangements.  increased finance costs either by way of interest on borrowing or the loss of income on investment balances used to fund capital expenditure.

Financing the capital programme

6.4 Resources available to finance capital expenditure include:  Capital receipts (usable proceeds from asset sales)  Grants and contributions from third parties  Direct financing from revenue.

6.5 Capital expenditure that is not financed up-front from these resources will increase the Council’s underlying need to borrow, as measured by the capital financing requirement (CFR). The Council’s underlying borrowing is not necessarily the same as its actual borrowing position. The level of external debt will be determined in accordance with the Council’s treasury management strategy and practices. As a consequence an increase in the Council’s underlying borrowing position will not necessarily mean a corresponding increase in the amount of external borrowing.

6.6 Capital receipts and grants received to date together with (capital) grant funding allocations for 2016-17 have been fully committed to support the Council’ s capital programme.

Page 51 6.7 Statutory provisions set out the purposes to which the Council can apply its available capital receipts. The uses specified in regulations are:  to meet capital expenditure in the current year  to reduce the underlying borrowing requirement associated with capital expenditure not financed from capital receipts, grants or revenue  to pay a premium charged in relation to any amount borrowed  to meet the administrative costs of or incidental to a disposal of an asset.

6.8 In accordance with the Codes of Practice published by the Chartered Institute of Public Finance and Accountancy and good professional practice capital receipts received in 2016-17 and subsequent years will only applied to fund new (capital) priorities where – after carrying out option appraisals and whole life costings - it can be demonstrated that this offers better value for money to the Council when compared with alternative uses. Alternative uses include their use to meet existing capital commitments in order to reduce:  the Council’s existing borrowing requirement and  the impact of this (borrowing) on the Council’s revenue budget.

Proposed capital programme

6.9 The proposed capital programme covering 2016-17 and subsequent years is set out in table 12.

Page 52 Table 12: Proposed Capital Programme & methods of financing Proposed Budget 2016-17 2017-18 2018-19 2019-20 Total £000 £000 £000 £000 £000 Gross expenditure1 : Housing, Health and Wellbeing 850 1,650 1,650 1,650 5,800 Economic Growth 2,050 - - - 2,050 Corporate Resources 365 - - - 365 Total Expenditure: 3,265 1,650 1,650 1,650 8,215 Financed by External funding sources: Disabled Facilities Grant (Better 600 600 550 550 2,300 Care Fund) ABC resources: General Fund (Corporate 650 650 Priorities) General Fund 0 0 Earmarked Reserves 0 0 Capital Receipts 97 97 Unfinanced expenditure 1,918 1,050 1,100 1,100 5,168 (borrowing) Total financing 3,265 1,650 1,650 1,650 8,215 1 Gross expenditure does not include any proposed budget carry forwards from the approved 2015-16 capital programme; these requests will form part of the Capital Outturn Report.

6.10 The capital expenditure bids being submitted for approval cover gross expenditure of £3,162k in 2016-17 and £4,950k over the next three financial years (2017-18 to 2019-20). The remaining portion of the planned expenditure for 2016-17 (£103k) was approved in March 2015 as part of the 2015-16 capital budget.

6.11 This expenditure will be financed from:  revenue contributions (reserves) of £650k  expected disabled facilities grants of £2,300k  capital receipts of £97k.

Page 53 6.12 Unfinanced expenditure, that is, capital expenditure not financed from grants, revenue contributions or capital receipts will be funded from borrowing. Unfinanced expenditure totals £1.9m in 2016-17 and £3.25m over the three years 2017-18 to 2018-19. The revenue implications of this unfinanced expenditure including the amounts chargeable to the general fund in respect of the associated minimum revenue provision and interest costs on additional external loans is included in the revenue budgets for 2016-17 and subsequent years.

Detail of Schemes within the Housing, Health and Wellbeing Portfolio

Disabled Facilities Grants (DFG) £600k (2016-17)

6.13 This involves grant support provided by the Authority to cover the cost of housing adaptations to enable people to stay living in their own home and is a statutory function that the Authority is required to undertake. The proposed budget of £2.4m over the four years 2016-17 to 2019-20 comprises  £600k in 2016-17 – including £103,000 re-profiled from the 2015-16 budget - fully funded from disabled facilities grant  £1.8m (£600k p.a.) over the period 2017-18 - 2019-20 funded from expected disabled facilities grant of £600k in 2017-18 (including a balance of £50k brought forward from prior years) and £550k in 2018-19 and 2019-20. The balance of expenditure not financed by grant income will be funded from borrowing

6.14 From 2015-16 grant funding supporting DFG expenditure forms part of the Better Care Funding allocations paid to upper-tier authorities. However, the statutory duty on local housing authorities to provide DFG to those who qualify for it will remain. Conditions attached to the DFG Conditions of Grant Usage (under Section 31 of the Local Government Act 2003) therefore stipulate that, where relevant, upper-tier local authorities or CCGs must ensure they cascade the DFG allocation to district council level in a timely manner such that it can be spent within year.

6.15 Pending clarification of individual grant funding allocations for DFG , the proposed DFG expenditure budget for 2017-18 and subsequent years is restricted to £550k, consistent with the 2015-16 grant allocation of £547k.

Healthy Homes (£200k: 2016-17)

6.16 The proposed 2016-17 capital budget includes £200k to support the introduction of a Home Improvement programme and an extension of the existing grant scheme to install central heating systems in homes which currently have no heating. The Home Improvement programme is aimed at securing improvements to sub-standard homes on an individual, block or area basis. It is proposed that a further £1m will be made available to support the scheme in each of the subsequent three years (2017-18 to 2019-20).

Page 54 6.17 The scheme will include; renovation grants (£25k maximum), empty homes grants (£10k maximum), small repairs assistance (£6k maximum), central heating provision (£7k maximum) and group repair scheme assistance (effective from 17-18).

Securing affordable homes (2016-17: £50k)

6.18 The proposed budget of £50k in 2016-17 and each of the three subsequent years is targeted at providing grant support to assist registered housing providers to improve housing stock in high need areas, which would otherwise be sold

Detail of Schemes within the Economic Growth Portfolio

Strategic acquisitions and development (2016/17: £950k)

6.19 The proposed budget of £950k is earmarked for the acquisition and redevelopment of commercial properties to support business start-ups and the small business sector. Planned expenditure includes leasehold improvement works to the former Keswick Motor Museum to form 16 retail kiosks including a café and space for a small soft play area.

Land Acquisition -Lillyhall Industrial Estate (2016-17: £1.1m)

6.20 The proposed budget of £1.1m relates to the acquisition of undeveloped portions of the Lillyhall site from the Homes and Communities Agency (HCA). The site is suitable for a number of industrial and commercial uses and has been identified as being of strategic importance to future economic growth within the borough. The purchase will ensure the Council is best placed to determine the future use of the site and will contribute to the objective of ensuring land is available within the borough to support new inward investment and the expansion of existing small and medium sized enterprises. The scheme will be partially funded from capital receipts (£97k) and general fund balances (£285k).

Detail of Schemes within the Corporate Resources Portfolio

Demolition of Moorclose Sports Centre (2016-17: £200k)

6.21 Following completion of works to the new leisure facility demolition of the existing sports centre leisure centre and swimming pool along with changes to the existing plant room to enable it to be transferred to Cumbria County for use with the adjoining community centre. The scheme will be fully funded from general fund balances

Other schemes - (2016-17: £165k)

6.22 Other capital expenditure proposed for 2015-16 and funded from general fund balances (revenue) comprise:

Page 55  Brow Top car park; extension of works included in the 2015-16 revised capital budget to cover the overflow car park-lorry park - £56k  Evolution Centre; - roofing and electrical works required to facilitate use of the building as a food bank- £50k  Workington Town Centre; replacement of existing lighting designed to enhance the coast line feature in the Workington Town Centre, with more durable and more easily maintained alternative - £34k  Curwen Hall; Contingency provision to ensure existing planned works enable the building to be taken off the at risk register.

7. Budget Assurance statement from the Chief Financial Officer

7.1 The Council must set a balanced budget each year. Section 25 of the Local Government Act 2003, requires the Council’s chief financial officer (Head of Financial Services) to report to the Council when it is making the statutory calculations required to determine its council tax or precept. The authority is required to take the report into account. The report must deal with the robustness of the estimates and the adequacy of the reserves for which the budget provides and is detailed in the paragraphs below.

Robustness of Estimates

7.2 Based on information and assurances from Members and the Senior Management Team, it is my opinion that the 2016-17 budgets are based on robust budget estimates.

7.3 There continues to be a number of significant risks facing the Council, however the Executive and Management teams are working very closely with officers and partners to address and take any mitigating actions deemed necessary.

7.4 This opinion is supported by the maintenance of the Council reserves at a prudent level and the Council’s Self-Sufficiency plans. These will be further developed into the four year “efficiency plan” to achieve a balanced and robust budget as set out in the government’s four year offer.

Adequacy of Reserves

7.5 In the current climate it is essential that the Council maintains reserves to deal with the unexpected, such as continued spending pressures or further reductions in income.

7.6 The Council’s financial strategy has been to maintain the strength of the balance sheet to provide resilience in the challenging financial environment, whilst reducing the recurring net cost base.

7.7 The Executive has previously agreed to deploy balances to meet priorities and this budget continues to ensure funds are set aside for these and to focus on creating economic growth and development. This spend has been taken into consideration when looking at the adequacy of general fund balances. Page 56 7.8 It is considered prudent that the minimum level of balances is held at £2.7 million and that a review of the policy on the use of reserves is undertaken as part of the four year efficiency plan required as part of the local government finance settlement.

7.9 A summary of the Council’s expected general fund reserves remaining available for us at 1 April 2016 is shown in table 13.

Table 13 Estimated General Fund balances 2015-16 2016-17 2017-18 2018-19

£000 £000 £000 £000 Opening Balance at 1 April 6,075 4,329 3,679 3,512 Adjustment to reflect 2014-15 outturn 900 Less: : Use of GF to finance capital budget New Leisure Centre (1,728) Workington Hall (105) Improvement to Public Toilets (150) Flooding/landslip works (100) Works to Brow Top car park (74) Replacement parking meters (350) Demolition of Moorclose Sports Centre (200) Other Capital Schemes (450) Add: Released from of Earmarked Reserves 4 Less: Use of GF to fund Revenue Budget (143) Less: Projected Revenue Deficit (167) (308) Projected Balance at 31 March 4,329 3,679 3,512 3,204 Retained for Corporate Priorities (650) Retained - Minimum Balance (2,700) (2,700) (2,700) (2,700) Available for use 979 979 812 504

7.10 In addition to general fund balances the council also holds Earmarked Reserves balances. These have largely been created from under spends/ additional income received in previous years and have been set aside for specific purposes.

7.11 These funds are reviewed on a monthly basis to ensure that they are applied in line with corporate priorities. A detailed breakdown of the remaining earmarked reserves is included at Appendix H.

Page 57 8. Conclusions

8.1 The proposed total revenue expenditure for 2016-17 including Parish Councils will be £15,510k of which £602k will be funded from earmarked reserves. This results in a net budget requirement of £14,908k.

8.2 The proposed capital budget will be £8,215k comprising expenditure of £3,265k in 2016/17 and £4,950k over the period 2017/18 to 2019/20. It is proposed that this is financed from the following resources  Capital Receipts…………….£97k  Government Grants….…£2,300k  Borrowing…………….….£5,168k  Revenue……………………£650k

8.3. An increase in Council Tax of 1.9% is approved.

8.4 The current self-sufficiency programme and use of reserves plan has served the Council well over the last three years. However, following the changes to local government funding announced in the spending review, it is evident now that our existing plans are not sufficient.

8.5 During the course of 2016-17, the Executive will continue with their review and challenge of all the budgets and develop a four year efficiency plan to address and close the forecast budget gap.

Catherine Nicholson Head of Financial Services

Page 58 Appendices

A Council tax support for parishes B Parish precepts C Budget analysed by portfolio D 2016-17 recurring growth and savings bids E 2016-17 non-recurring growth and savings bids F Movement in revenue budget 2015-16 to 2016-17 G Increase in council tax v Council tax freeze H Summary of Earmarked reserves I MTFP J Self Sufficiency savings - 2015/16 to 2018/19 K Parish and Town Council Consultation responses

Page 59 Appendix A

Council Tax Support for Parish's

Council Tax Council Tax Parish Support Parish Support Grant Grant

£ £ Above Derwent 337.02 Holme Abbey 449.17 Aikton 64.80 Holme East Waver 49.83 Allerby & Oughterside 411.01 Holme Low 188.08 Allhallows 265.09 Holme St Cuthbert 97.46 Allonby 335.64 Ireby & Uldale 76.88 Aspatria 2,467.16 Keswick 2,818.04 Bassenthwaite 87.99 Kirkbampton 86.21 Bewaldeth & Snittlegarth 0.00 Kirkbride 238.73 Blennerhassett& Torpenhow 160.48 Little Clifton 276.75 Blindbothel 0.00 Lorton 82.36 Blindcrake 95.41 Loweswater 67.68 Boltons 212.23 Maryport 11,035.78 Borrowdale 29.79 Papcastle 90.33 Bothel & Threapland 197.13 Plumbland 149.50 Bowness on Solway 367.35 Seaton 1,969.12 Bridekirk 106.53 Sebergham 66.45 Brigham 357.20 Setmurthy 23.20 Bromfield 147.02 Silloth-on-Solway 2,217.59 Broughton 914.13 St Johns,Castlerigg & Wythburn 118.48 Broughton Moor 485.01 Thursby 496.67 Buttermere 4.53 Underskiddaw 71.25 Caldbeck 132.47 Waverton 109.00 Camerton 83.05 Westnewton 67.68 Cockermouth 4,118.48 Westward 108.72 Crosscanonby 577.53 Wigton 3,584.19 Dean 215.39 Winscales 82.23 Dearham 1,146.41 Woodside 124.10 Dundraw 70.02 Workington 22,380.85 Embleton 37.89 Wythop 0.00 Gilcrux 78.25 Great Clifton 1,039.20 Greysouthen 202.62 Hayton & Mealo 124.24 Total 61,997.38

Page 60 Appendix B

Parish Precepts 2016-17

£ £ Above Derwent 23,468 Holme Low 1,812 Aikton 4,435 Holme St Cuthbert 4,903 Allerby & Oughterside 9,729 Ireby & Uldale 6,363 Allhallows 8,735 Keswick 201,554 Allonby 8,664 Kirkbampton 7,000 Aspatria 60,033 Kirkbride 9,700 Bassenthwaite 7,350 Little Clifton 5,173 Bewaldeth & Snittlegarth 0 Lorton 5,418 Blennerhassett & Torpenhow 9,340 Loweswater 2,382 Blindbothel 3,400 Maryport 188,660 Blindcrake 6,007 Papcastle 8,870 Boltons 4,538 Plumbland 5,000 Borrowdale 4,925 Seaton 49,756 Bothel & Threapland 4,803 Sebergham 4,500 Bowness on Solway 18,784 Setmurthy 487 Bridekirk 6,341 Silloth 165,093 Brigham 9,290 St Johns, Castlerigg & Wythburn 5,882 Bromfield 5,853 Thursby 21,738 Broughton 11,812 Underskiddaw 4,772 Broughton Moor 14,715 Waverton 1,945 Buttermere 1,395 Westnewton 4,899 Caldbeck 11,768 Westward 5,891 Camerton 1,500 Wigton 163,921 Cockermouth 184,043 Winscales 2,918 Crosscanonby 10,575 Woodside 4,247 Dean 14,085 Workington 384,439 Dearham 25,354 Wythop 860 Dundraw 1,680 Embleton 4,045 Gilcrux 8,322 Great Clifton 10,000 Greysouthen 11,797 Hayton & Mealo 3,876 Holme Abbey 12,050 Holme East Waver 6,500 TOTAL 1,797,392 *

Change in Precept

Precept 2015-16 1,624,819 Precept 2016-17 1,797,392 * % Change in Precept 10.62% *

* The total precepts figure will be updated once all parish precept forms have been returned.

Page 61 SUMMARY OF BUDGET BY PORTFOLIO

2016/17 Base Recurring Salary Recurring Recurring Non-Recurring Non-Recurring Reserve funded Portfolio Proposed Budget Budget Adjustments Growth Savings Growth Savings projects

REVENUE Leader of the Council 494,300 6,380 32,440 (33,841) 0 (93,670) 0 405,609 Economic Growth (945,600) 14,300 157,000 (20,000) 274,000 0 0 (520,300) Corporate Resources 5,384,810 34,660 476,813 (117,762) 600,000 (205,963) 0 6,172,558 Tourism & Culture 304,370 0 0 (27,000) 0 0 0 277,370 Locality & Community Services 3157650 17,510 270,430 (12,000) 30,000 0 0 3,463,590 Regulatory Services 689,960 15,870 7,640 (156,971) 500 0 0 556,999 Housing, Health & Wellbeing 1,011,540 30,920 2,150 (13,830) 20,000 0 0 1,050,780 Transformation 1,341,730 17,950 37,310 (4,300) 311,500 0 0 1,704,190

Page 62 Page REVENUE Sub Total 11,438,760 137,590 983,783 (385,704) 1,236,000 (299,633) 0 13,110,796

Parish Precepts 1,689,330 0 108,062 0 0 0 0 1,797,392

TOTAL REVENUE 13,128,090 137,590 1,091,845 (385,704) 1,236,000 (299,633) 0 14,908,188

RESERVE FUNDED PROJECTS Leader of the Council 0 0 0 0 0 0 0 0 Economic Growth 0 0 0 0 0 0 130,727 130,727 Corporate Resources 0 0 0 0 0 0 69,251 69,251 Tourism & Culture 0 0 0 0 0 0 50,780 50,780 Locality & Community Services 0 0 0 0 0 0 215,086 215,086 Regulatory Services 0 0 0 0 0 0 64,361 64,361 Housing, Health & Wellbeing 0 0 0 0 0 0 2,250 2,250 Transformation 0 0 0 0 0 0 69,400 69,400 TOTAL RESERVES 0 0 0 0 0 0 601,855 601,855

TOTAL 13,128,090 137,590 1,091,845 (385,704) 1,236,000 (299,633) 601,855 15,510,043

Appendix C

PORTFOLIO : LEADER OF THE COUNCIL

Net Recurring Cost 2016/17 Base Recurring Recurring Non-Recurring Non-Recurring Reserve funded Proposed Description Salary Centre Budget Growth Savings Growth Savings projects Budget Adjustments REVENUE 1004 Corporate Management (138,000) 0 0 0 0 0 0 (138,000) 1052 Corporate Complaints 3,340 0 0 0 0 0 0 3,340 1140 Shared ICT Costs 94,110 0 0 (33,841) 0 0 0 60,269 1146 Referral Centre 20,000 0 0 0 0 0 0 20,000 5040 Head of Services PA 32,660 610 0 0 0 0 0 33,270 5640 Director of Operations 94,530 (860) 0 0 0 (93,670) 0 0 5660 Director of Resources & PA 122,990 1,360 0 0 0 0 0 124,350 5680 Chief Executive & PA 165,530 1,880 0 0 0 0 0 167,410 5720 Policy & Performance 99,140 3,390 32,440 0 0 0 0 134,970 Total Revenue 494,300 6,380 32,440 (33,841) 0 (93,670) 0 405,609 RESERVES Total Reserves 0 0 0 0 0 0 0 0

Page 63 Page Total Leader of the Council 494,300 6,380 32,440 (33,841) 0 (93,670) 0 405,609

Appendix C Cont'd PORTFOLIO : CORPORATE RESOURCES Net Recurring Cost 2016/17 Base Recurring Recurring Non-Recurring Non-Recurring Reserve funded Proposed Description Salary Centre Budget Growth Savings Growth Savings projects Budget Adjustments REVENUE 1001 Training 70,450 0 0 0 0 0 0 70,450 1002 Corporate Recruitment 13,350 0 0 0 0 0 0 13,350 1003 Pensions 189,000 0 0 0 0 0 0 189,000 1007 Mayoral Services 13,570 0 0 0 0 0 0 13,570 1008 Mayor's Fund 3,250 0 0 0 0 0 0 3,250 1009 Members Services 265,670 0 4,630 0 0 0 0 270,300 1010 Leaders Services 30,000 0 0 0 0 0 0 30,000 1011 Electoral Registration 41,000 0 19,000 0 0 0 0 60,000 1012 Elections 32,500 0 10,000 0 0 0 0 42,500 1013 Corporate Advertising Statutory 1,550 0 0 0 0 0 0 1,550 1015 Corporate Property Maintenance 534,570 0 12,750 0 0 0 0 547,320 1032 Harrington Harbour 1,000 0 0 0 0 0 0 1,000 1034 Banking and Interest 908,340 0 35,100 0 0 0 0 943,440 Page 64 Page 1035 MRP & Finance Charges 700,260 0 0 (85,762) 0 (205,963) 0 408,535 1036 Insurances 176,740 0 38,899 0 0 0 0 215,639 1038 Parish Councils 142,290 0 0 (30,500) 0 0 0 111,790 1041 Contingencies 127,400 0 75,534 0 0 0 0 202,934 1066 Out of Hours Telephones 8,640 0 0 0 0 0 0 8,640 1069 Public Building Cleaning 66,490 (60) 0 0 0 0 0 66,430 1118 Car Parks Inspection & Maintenance 30,300 0 0 0 0 0 0 30,300 1123 Pension Deficit Employer Contribution 841,300 0 208,900 0 0 0 0 1,050,200 1128 Self Sufficiency Programme (75,000) 0 0 0 0 0 0 (75,000) 1156 Major Incident Response 0 0 0 0 100,000 0 0 100,000 5000 Human Resources Pay Group 133,960 7,210 0 0 0 0 0 141,170 5060 Democratic Services Pay Group 100,400 4,090 0 0 0 0 0 104,490 5100 Asset Management Pay Group 232,900 4,970 0 (1,500) 0 0 0 236,370 5120 Finance and Accounting Pay Group 457,240 10,290 0 0 0 0 0 467,530 5480 Legal Services 153,200 3,790 0 0 500,000 0 0 656,990 5520 Head of Financial Services 62,150 1,140 0 0 0 0 0 63,290 5540 Head of Governance 62,150 1,140 0 0 0 0 0 63,290 5790 Governance Support Assistants 60,140 2,090 0 0 0 0 0 62,230 6515 Apprentices & Graduates 0 0 72,000 0 0 0 0 72,000 Total Revenue 5,384,810 34,660 476,813 (117,762) 600,000 (205,963) 0 6,172,558

Parish Precepts 1,689,330 0 108,062 0 0 0 0 1,797,392

6081 Members Training 0 0 0 0 0 0 5,000 5,000 6084 Allerdale House - Internal Works 0 0 0 0 0 0 10,130 10,130 Appendix C Cont'd 6104 Anti Poverty 0 0 0 0 0 0 54,121 54,121 Total Reserves 0 0 0 0 0 0 69,251 69,251

Total Corporate Resources 5,384,810 34,660 476,813 (117,762) 600,000 (205,963) 69,251 6,241,809 PORTFOLIO : ECONOMIC GROWTH

Net Recurring Cost 2016/17 Base Recurring Recurring Non-Recurring Non-Recurring Reserve funded Proposed Description Salary Centre Budget Growth Savings Growth Savings projects Budget Adjustments REVENUE 1018 Tenanted Properties (290,870) 0 2,000 0 0 0 0 (288,870) 1019 Industrial Units (272,120) 0 0 0 0 0 0 (272,120) 1020 Other Land & Buildings (134,950) 0 0 0 5,000 0 0 (129,950) 1025 Camping & Caravan Sites (476,460) 0 0 0 0 0 0 (476,460) 1027 Workington Town Centre (492,870) 0 0 0 0 0 0 (492,870) 1028 Circuses & Fairs (8,840) 0 0 0 0 0 0 (8,840) 1054 Building Control - Chargeable (283,090) 0 0 0 0 0 0 (283,090) 1058 Planning and Development (537,900) 0 0 0 0 0 0 (537,900) 1073 Markets (79,000) 0 0 0 0 0 0 (79,000) 1098 Economic Regeneration 92,920 0 0 (20,000) 219,000 0 0 291,920 1100 Grants to Voluntary Organisation 72,130 0 0 0 0 0 0 72,130 1101 Planning Policy 44,250 0 0 0 0 0 0 44,250 1114 Sports Development 0 0 15,000 0 0 0 0 15,000

Page 65 Page 1116 Festivals & Events 44,080 0 60,000 0 0 0 0 104,080 1122 Building Control - Non-Chargeable 1,010 0 0 0 0 0 0 1,010 1142 Corporate Property (22,280) 0 0 0 0 0 0 (22,280) 1147 Town Centres 0 0 80,000 0 0 0 0 80,000 1157 Maryport Shop Front Improvements 0 0 0 0 50,000 0 0 50,000 5260 Building Control Pay Group 296,940 8,160 0 0 0 0 0 305,100 5300 Planning and Development Pay Group 498,590 8,830 0 0 0 0 0 507,420 5440 Regeneration Pay Group 162,780 3,620 0 0 0 0 0 166,400 5600 Head of Development Services 60,670 1,150 0 0 0 0 0 61,820 5740 Business Support Unit, Devt Services 155,500 4,630 0 0 0 0 0 160,130 5750 Head of Economic Growth 58,580 2,240 0 0 0 0 0 60,820 5800 Estates 150,330 (14,330) 0 0 0 0 0 136,000 6535 Disposal of Allerdale Sites 15,000 0 0 0 0 0 0 15,000 Total Revenue (945,600) 14,300 157,000 (20,000) 274,000 0 0 (520,300)

RESERVES 6703 Financial Planning & Economic Growth 0 0 0 0 0 0 80,727 80,727 6704 Strategic Acquisition Works 0 0 0 0 0 0 50,000 50,000 Total Reserves 0 0 0 0 0 0 130,727 130,727

Total Economic Growth (945,600) 14,300 157,000 (20,000) 274,000 0 130,727 (389,573)

Appendix C Cont'd PORTFOLIO : LOCALITY & COMM SERV Net Recurring Cost 2016/17 Base Recurring Recurring Non-Recurring Non-Recurring Reserve funded Proposed Description Salary Centre Budget Growth Savings Growth Savings projects Budget Adjustments REVENUE 1023 Footways 127,940 0 0 (3,000) 0 0 0 124,940 1051 Confidential Waste 3,600 0 0 0 0 0 0 3,600 1053 Bereavement Services (102,750) 0 13,260 (5,000) 0 0 0 (94,490) 1067 Parks and Grounds Maintenance 557,940 0 7,570 0 0 0 0 565,510 1068 Street Cleansing 1,104,700 0 21,850 0 0 0 0 1,126,550 1070 Public Convenience Cleaning 138,300 320 0 (1,000) 0 0 0 137,620 1071 Animal Welfare 33,620 0 0 0 0 0 0 33,620 1074 Parks Development 15,120 0 0 0 0 0 0 15,120 1075 Domestic Waste 1,594,830 0 53,730 0 0 0 0 1,648,560 1076 Trade Waste (345,190) 0 28,910 0 0 0 0 (316,280) 1077 Recycling 523,180 0 25,960 0 0 0 0 549,140 1079 Environmental Initiatives 49,050 0 0 0 0 0 0 49,050 1083 Off-street - Owned (2,036,310) 0 67,500 0 30,000 0 0 (1,938,810) Page 66 Page 1085 Multi-storey Car Park 141,000 0 30,000 0 0 0 0 171,000 1086 Off-street - Managed (104,790) 0 0 0 0 0 0 (104,790) 1103 Localities & Partnerships 15,000 0 0 (3,000) 0 0 0 12,000 1112 Sports & Leisure Centres 439,170 0 21,650 0 0 0 0 460,820 1115 Maryport Wave 236,770 0 0 0 0 0 0 236,770 1153 Workington Nature Partnership 13,200 910 0 0 0 0 0 14,110 5240 Bereavement Services Pay Group 67,980 740 0 0 0 0 0 68,720 5360 Environmental Services Pay Group 346,600 8,300 0 0 0 0 0 354,900 5400 Parking Services Pay Group 279,020 6,090 0 0 0 0 0 285,110 5580 Head of Community Services 59,670 1,150 0 0 0 0 0 60,820 Total Revenue 3,157,650 17,510 270,430 (12,000) 30,000 0 0 3,463,590 RESERVES 6096 Post Funding - Env Initiatives 0 0 0 0 0 0 3,600 3,600 6540 Weekly Collection Support Scheme 0 0 0 0 0 0 124,533 124,533 6708 Leisure Activities 0 0 0 0 0 0 59,550 59,550 6720 Footway Lighting Scheme 0 0 0 0 0 0 27,403 27,403 Total Reserves 0 0 0 0 0 0 215,086 215,086

Total Locality & Comm Serv 3,157,650 17,510 270,430 (12,000) 30,000 0 215,086 3,678,676

Appendix C Cont'd PORTFOLIO : REGULATORY SERVICES

Net Recurring Cost 2016/17 Base Recurring Recurring Non-Recurring Non-Recurring Reserve funded Proposed Description Salary Centre Budget Growth Savings Growth Savings projects Budget Adjustments REVENUE 1059 Revenue (376,600) 0 0 0 0 0 0 (376,600) 1060 Benefits (438,460) 0 0 (111,836) 0 0 0 (550,296) 1061 Shared Revenues & Benefits 251,997 0 0 (45,000) 0 0 0 206,997 1062 Licensing Service (172,160) 0 0 0 0 0 0 (172,160) 1063 Land Charges Service (87,640) 0 0 0 0 0 0 (87,640) 1072 Pest Control (32,690) 0 0 0 0 0 0 (32,690) 1080 Food and Occupational Health 3,330 0 0 (135) 0 0 0 3,195 1081 Environmental Protection (17,340) 0 7,640 0 500 0 0 (9,200) 5140 Document Management Pay Group 162,300 2,140 0 0 0 0 0 164,440 5280 Customer Services Pay Group 447,330 10,240 0 0 0 0 0 457,570 5320 Licensing Pay Group 78,780 1,700 0 0 0 0 0 80,480 5340 Land Charges Pay Group 250 0 0 0 0 0 0 250 5770 Housing Benefits Pay Group 439,750 0 0 0 0 0 0 439,750

Page 67 Page 5780 Revenues Pay Group 361,153 0 0 0 0 0 0 361,153 5810 Elections Pay Group 69,960 1,790 0 0 0 0 0 71,750

Total Revenue 689,960 15,870 7,640 (156,971) 500 0 0 556,999 RESERVES 6077 Shared Revenues & Benefits Projects 0 0 0 0 0 0 50,000 50,000 6091 New IT Initiatives 0 0 0 0 0 0 14,361 14,361 Total Reserves 0 0 0 0 0 0 64,361 64,361

Total Regulatory Services 689,960 15,870 7,640 (156,971) 500 0 64,361 621,360

Appendix C Cont'd PORTFOLIO : HOUSING, HEALTH & WELLBEING

Net Recurring Cost 2016/17 Base Recurring Recurring Non-Recurring Non-Recurring Reserve funded Proposed Description Salary Centre Budget Growth Savings Growth Savings projects Budget Adjustments REVENUE 1026 Crime Prevention 13,800 0 0 (13,800) 0 0 0 0 1078 Health and Safety 1,500 0 0 0 0 0 0 1,500 1089 Housing Strategic Function 1,220 0 0 (30) 0 0 0 1,190 1092 Homelessness 4,600 0 2,150 0 0 0 0 6,750 1093 Assistance - Housing Services (52,000) 0 0 0 0 0 0 (52,000) 1096 Gypsy & Traveller Sites 18,000 0 0 0 0 0 0 18,000 1136 Supporting Leisure Activity 0 0 0 0 20,000 0 0 20,000 5560 Head of Housing & Health 59,670 1,150 0 0 0 0 0 60,820 5760 Housing & Health Pay Group 964,750 29,770 0 0 0 0 0 994,520 Total Revenue 1,011,540 30,920 2,150 (13,830) 20,000 0 0 1,050,780 RESERVES 6073 Mortgage Repossession Support 0 0 0 0 0 0 2,250 2,250

Page 68 Page Total Reserves 0 0 0 0 0 0 2,250 2,250

Total Housing, Health & Wellbeing 1,011,540 30,920 2,150 (13,830) 20,000 0 2,250 1,053,030

Appendix C Cont'd PORTFOLIO : TOURISM & CULTURE

Net Recurring Cost 2016/17 Base Recurring Recurring Non-Recurring Non-Recurring Reserve funded Proposed Description Salary Centre Budget Growth Savings Growth Savings projects Budget Adjustments REVENUE 1056 Silloth TIC 1,650 0 0 0 0 0 0 1,650 1106 AONB Contribution 29,000 0 0 0 0 0 0 29,000 1110 Museums 63,570 0 0 (12,000) 0 0 0 51,570 1111 Arts Development 10,150 0 0 0 0 0 0 10,150 1144 Carnegie Trust Contribution 150,000 0 0 (15,000) 0 0 0 135,000 1158 Tourism Incentive 50,000 0 0 0 0 0 0 50,000 Total Revenue 304,370 0 0 (27,000) 0 0 0 277,370 RESERVES 6707 Festivals & Community Events 0 0 0 0 0 0 50,780 50,780 Total Reserves 0 0 0 0 0 0 50,780 50,780

Total Tourism & Culture 304,370 0 0 (27,000) 0 0 50,780 328,150 Page 69 Page

Appendix C Cont'd PORTFOLIO : TRANSFORMATION

Net Recurring Cost 2016/17 Base Recurring Recurring Non-Recurring Non-Recurring Reserve funded Proposed Description Salary Centre Budget Growth Savings Growth Savings projects Budget Adjustments REVENUE 1000 Communications and Marketing 34,100 0 0 0 0 0 0 34,100 1024 Coastal Protection and Inland Flooding 45,200 0 0 0 30,000 0 0 75,200 1037 Risk Management 3,000 0 0 0 0 0 0 3,000 1046 Corporate Improvement Team 9,970 0 0 0 0 0 0 9,970 1047 IT Services 399,730 0 7,500 0 181,500 0 0 588,730 1048 Shared Revs & Bens IT Costs 72,420 0 0 (4,300) 0 0 0 68,120 1050 Multi-functional Printers 35,530 0 0 0 0 0 0 35,530 1064 Community Safety 10,000 0 0 0 0 0 0 10,000 1065 Emergency Planning 18,700 0 0 0 0 0 0 18,700 5080 Internal Audit Pay Group 85,740 3,810 0 0 0 0 0 89,550 5160 Shared IT Services Pay Group 346,750 6,250 0 0 0 0 0 353,000 5500 Head of Org Dev & Transformation 59,670 1,150 0 0 0 0 0 60,820

Page 70 Page 5620 Head of Business & Property (1,030) 1,030 0 0 0 0 0 0 5700 Customer & Transformation Programme 139,290 3,000 0 0 0 0 0 142,290 5710 Communications 71,840 2,710 29,810 0 100,000 0 0 204,360 5730 Commissioning Support Pay Group 10,820 0 0 0 0 0 0 10,820 Total Revenue 1,341,730 17,950 37,310 (4,300) 311,500 0 0 1,704,190 RESERVES 6114 Purchase of Equipment 0 0 0 0 0 0 7,500 7,500 6705 CCTV Cameras Decommissioning 0 0 0 0 0 0 15,000 15,000 6706 Community Safety 0 0 0 0 0 0 22,900 22,900 6719 Direct Debits & System Development 0 0 0 0 0 0 24,000 24,000 Total Reserves 0 0 0 0 0 0 69,400 69,400

Total Transformation 1,341,730 17,950 37,310 (4,300) 311,500 0 69,400 1,773,590

Appendix C Cont'd Appendix D

Recurring Growth & Savings Bids

Growth Saving Net Service Description £000 £000 £000

Portfolio - Leader - Alan Smith Shared ICT Costs Net reduction in shared ICT costs 0 (34) (34) Funding for fixed term post of Executive Policy Officer Policy & Performance 32 0 32 . 32 (34) (1) Portfolio - Economic Growth - Mark Fryer Town Centres Funding for 7 Towns plus Seaton 80 0 80 Festivals & Events Bid to support Taste Cumbria annual event, 60 0 60 Northbound & Allerdale Live. Economic Development Cessation of grant to BEC 0 (20) (20) Sports Development Bid to support the provision of 10p swimming for 15 0 15 children and young people Tenanted Properties Provision for EPC and Electrical checks related to 2 0 2 disposals 157 (20) 137 Portfolio - Transformation - Phil Tibble Communications New Post of Communications & Marketing Officer 30 0 30 Crime Prevention Responsibility for CCTV in town centres transferred to 0 (14) (14) the Police. Implementation of a new IT Services Management Shared IT Services 7 0 7 Tool. Revs & Bens IT Costs Reduction in expenditure in IT costs. 0 (4) (4) Total 37 (18) 19 Portfolio - Regulatory Services - Konrad Hansen Benefits Net reduction in HB payment due to an anticipated 0 (112) (112) reduction in caseload Shared Revs & Bens Reduction in Staff Costs 0 (45) (45) Environmental Protection Increasing our environmental protection budget to 8 0 8 enable us to carry out our statutory functions Total 8 (157) (150) Portfolio - Tourism and Culture - Bill Jefferson Carnegie Trust Reduction in subsidy awarded as per agreement. 0 (15) (15) Museums Reduction in Keswick Museum and Art Gallery grant. 0 (12) (12) Total 0 (27) (27) Portfolio - Corporate Resources - Barbara Cannon Minimum Revenue Provision Reduction in MRP generated from the application of 0 (86) (86) general fund balances to finance capital expenditure. HR - Apprentices To fund apprentices employment scheme 72 72 Banking and Interest Reduction in borrowing costs. 35 0 35 Insurances Re-tendering of the insurance cover and an increase 39 0 39 in the insurance premiums and brokerage services Parish Councils Reduction in grants to Parish Councils. 0 (31) (31) Electoral Reg Additional costs required in relation to the resources 19 0 19 for the 2016/17 canvass. Elections To cover the costs of ABC elections (every 4 years) 10 0 10 Corporate Property Maintenance costs for empty non-operational 13 0 13 properties. Members Services Allowance increase 4 0 4 Asset Management Pay Group Facility Management Saving 0 (2) (2) Total 192 (118) 74

Page 71 Growth Saving Net Service Description £0 £0 £0

Portfolio - Locality and Commercial Services - Mike Heaslip Waste Management Contract Inflationary uplift to contract price 86 0 86 Trade Waste Increase in Disposal costs per tonne of waste 24 0 24 Off-street - Owned Car Parks Cash collection and banking from the Council’s pay 68 0 68 and display machines. Multi Storey Car Park Increase in rental as per agreement 30 30 Domestic Waste Purchase of replacement bins 20 20 Public Conveniences Facility Management saving 0 (1) (1) Sports / Leisure Centre Increase in base contract price 22 22 Parks and Grounds Maintenance Parks and Ground Maintenance contract increase 21 (5) 16 Localities & Partnerships Reduction in the cost of Subscriptions 0 (3) (3) Footway Maintenance Utility saving 0 (3) (3) Total 271 (12) 259 Portfolio - Housing, Health and Wellbeing - Carni McCarron-Holmes

Homelessness To cover current temporary accommodation estimated 2 0 2 occupancy. Total 2 0 2

Sub-Total 699 (386) 313 General Pension Deficit Pension Costs – The costs associated with pension 209 0 209 charge per valuation Contingencies 1.2% Pay Award 76 76 Salaries Impact of changes in National Insurance scheme and 138 138 increments. 423 0 423

Total Recurring Growth / Savings 1,122 (386) 736

Page 72 Appendix E Non- Recurring Growth & Savings Bids Growth Saving Net Service Description £000 £000 £000

Portfolio - Leader of the Council - Alan Smith Director of Operations Vacant Post 0 (94) (94) Total 0 (94) (94) Portfolio - Economic Development - Mark Fryer Maryport town Centre Maryport Shop Front Improvement Scheme. 50 0 50 Economic Regeneration To support the delivery of the Economic Development 219 0 219 strategy. Other Land & Buildings Professional fees relating to feasibility studies on vacant 5 0 5 land and buildings. Total 274 0 274 Portfolio - Transformation - Phil Tibble Communications & Marketing To support marketing of the borough to increase visitor 100 0 100 numbers and business growth Shared IT Services Core Network Infrastructure 50 0 50 Shared IT Services Virtual Workspace. 50 0 50 Coastal Protection & Inland Repair of handrails at Maryport Promenade 30 0 30 Flooding Shared IT Services Replace Corporate Multi-Functional Printers . 30 0 30 Shared IT Services Content Management Solution. 20 0 20 Shared IT Services Backup Internet Connection from Allerdale House. 15 0 15 Shared IT Services Enable ABC Area Offices with Member/Officer Wi-Fi 10 0 10 Shared IT Services GIS Mapping Services. 5 0 5 Shared IT Services Internet and Mail Filtering Services 2 0 2 Total 312 0 312 Portfolio - Corporate Resources - Barbara Cannon Legal Services Provision for potential appeals, judicial reviews, contract 500 0 500 reviews/agreements and procurement. Minimum Revenue Provision Reduction in MRP generated from the application of general fund balances and deferring the commencement of MRP on 0 (206) (206) the new leisure centre until 2017/18. Major Incident response Contingency for response to future Major Incidents 100 0 100 Total 600 (206) 394 Portfolio - Locality & Commercial Services - Mike Heaslip Off-street - Owned Car Parks Investment required to improve Car Parks throughout the 30 0 30 Borough. Environmental Protection Increasing our environmental protection budget to enable 1 0 1 us to carry out our statutory functions Total 31 0 31 Portfolio - Housing, Health and Wellbeing - Carni McCarron-Holmes Supporting Sports Activities Contribution towards Wigton Swimming Pool 20 0 20 Total 20 0 20

Total Non-recurring growth / savings 1,236 (300) 936

Page 73 Appendix F

MOVEMENT IN REVENUE BUDGET 2015-16 TO 2016-17

£'000 £'000 £'000

REVISED BUDGET 2015-16 (excluding Parish Precepts) 12,695

Less: Non-Recurring Growth (1,286) Less: Non-Recurring Growth - Salaries 49 Plus: Non- Recurring Savings 1,008

ADJUSTED OPENING BASE BUDGET 2016-17 12,466

Changes for 2016-17:

Recurring Growth Salary Related Adjustments 214 Pensions 209 Recurring Growth Bids 699 1,122 Recurring Savings Increase in income 0 Reduction in Expenditure (386) (386) Plans for Self sufficiency Economic Growth (150) Operational efficiencies (428) Service Delivery (450) (1,028)

Total Recurring changes (291)

Non-Recurring Growth/Savings Non-Recurring Growth 1,236 Non-Recurring Savings (300)

Total one-off changes 936

TOTAL CHANGES 645

REVENUE BUDGET 2016-17 (excluding Parish Precepts) 13,111

Page 74 Appendix G

COUNCIL TAX INCREASE 2016-17

Estimated Council Tax Base 2016/17 29,470.69 2015-16 Council Tax Band D: 156.97

INCREASE COUNCIL TAX BY 1.9%

Band D Council Increase by Potential Yield Freeze Grant Total Income Tax 1.9% each year £'s £'s £'s £'s £'s

2016-17 156.97 159.95 4,713,908.48 0.00 4,713,908.48

TOTAL INCOME RECEIVABLE 4,713,908.48

Page 75 Appendix H Earmarked Reserves by Portfolio

Opening Projected Projected Profiled Projected Reserves Balance at Movement in Balance at Spend Balance at 01/04/15 2015/16 31/03/16 2016/17 31/03/17

Revenue Reserves

Corporate Resources Redundancy Costs (2,078) 2,078 0 0 0 Legal Counsel (22,029) 22,029 0 0 0 Excess Insurance Costs (116,039) 6,499 (109,540) 0 (109,540) Building Revaluation Costs (987) 987 0 0 0 Provision for Elections (109,793) 109,793 0 0 0 Approved Training (3,587) 3,587 0 0 0 Member Training (9,000) 4,000 (5,000) 5,000 0 IER work -Elections (20,570) 20,570 0 0 0 Water/Sewer works (15,540) 15,540 0 0 0 Allerdale House - Internal Works (10,130) 0 (10,130) 10,130 0 Carnegie Toilets - Refurb (3) 3 0 0 0 Building Management System Inspection (1,920) 1,920 0 0 0 Maryport Town Hall Refurbishment (39,750) 39,750 0 0 0 Pension Scheme Auto Enrolment (50,000) 0 (50,000) 0 (50,000) Anti Poverty (214,934) 160,813 (54,121) 54,121 0 Young People/Apprentices (50,000) 50,000 0 0 0 Statutory Training - Community Services (2,040) 2,040 0 0 0 (668,399) 439,608 (228,791) 69,251 (159,540)

Economic Growth Planning Service Delivery Improvements (50,746) 50,745 (1) 0 (1) Local Development Framework (50,742) 0 (50,742) 0 (50,742) Front Runners Project (971) 971 0 0 0 Sports Action Zone Scheme (365) 365 0 0 0 Markets - Service Development (11,063) 11,063 0 0 0 Planning Policy (52,404) 46,404 (6,000) 0 (6,000) AIP - Solicitors costs (9,908) 9,908 0 0 0 Apprentice Scheme (12,000) 12,000 0 0 0 Portas Grant - Wigton (415) 415 0 0 0 Enterprise Coaches (WISE) (153,801) 153,801 (0) 0 (0) Financial Planning & Economic Growth (360,727) 280,000 (80,727) 80,727 0 Strategic Acquisition Works (70,000) 20,000 (50,000) 50,000 0 BEC Partnership - Business Plan for Wigton Free For All (1,200) 1,200 0 0 0 Landscape Assessment at Hayton Windfarm (4,020) 4,020 0 0 0 Planning Policy Retail Study re AIP (20,000) 20,000 0 0 0 Planning Resource Review (3,430) 3,430 0 0 0 Planters & bike stands - Cockermouth (2,090) 2,090 0 0 0 Replacement Bins - Workington (3,510) 3,510 0 0 0 The Hub - Performance Rights Licence (210) 210 0 0 0 (807,600) 620,131 (187,469) 130,727 (56,742)

Housing, Health & Wellbeing Mortgage Repossession Support (14,250) 12,000 (2,250) 2,250 0 Npower Energy Efficiency Programme (2,490) 2,490 0 0 0 (16,740) 14,490 (2,250) 2,250 0

Leader of the Council Corporate Priorities (1,360) 1,360 0 0 0 Group Accounts (15,000) 15,000 0 0 0 Taxes Review (8,000) 8,000 0 0 0 Shared ICT Costs (31,270) 31,270 0 0 0 (55,630) 55,630 0 0 0

Page 76 Opening Projected Projected Profiled Projected Reserves Balance at Movement in Balance at Spend Balance at 01/04/15 2015/16 31/03/16 2016/17 31/03/17

Locality & Commercial Services Sustaining Strategic Sites (805) 805 (0) 0 (0) Post Funding - Env Initiatives (13,600) 10,000 (3,600) 3,600 0 Grounds Works - Parks Development (383) 383 0 0 0 MSCP Maint fund (10,000) 0 (10,000) 0 (10,000) Weekly Collection Support Scheme (249,533) 125,000 (124,533) 124,533 0 Footway Lighting Scheme (82,209) 27,403 (54,806) 27,403 (27,403) New Lighting Columns (9,341) 9,341 0 0 0 Leisure Activities (149,550) 90,000 (59,550) 59,550 0 Water Quality Signage (10,800) 10,800 0 0 0 (526,221) 273,732 (252,489) 215,086 (37,403)

Regulatory Services Shared Revs & Bens (121,400) 50,000 (71,400) 50,000 (21,400) New IT Initiatives -HR (50,361) 36,000 (14,361) 14,361 0 IT Project 1 - Sharepoint Project (7,053) 7,053 0 0 0 IT Project 2 (12,300) 12,300 0 0 0 Court Orders - Legal (15,000) 15,000 0 0 0 Revs & Bens Trans Programme (83,390) 83,390 0 0 0 Revs & Bens Service Improvements (79,483) 0 (79,483) 0 (79,483) Licensing Service Re-design (11,100) 11,100 0 0 0 (380,086) 214,843 (165,243) 64,361 (100,883)

Tourism & Culture Restructure Options (1,175) 0 (1,175) 0 (1,175) Small Blue Butterfly Project (2,316) 2,316 0 0 0 Carnegie Refit (1,404) 1,404 0 0 0 Festivals & Community Events (110,780) 60,000 (50,780) 50,780 0 (115,675) 63,720 (51,955) 50,780 (1,175)

Transformation New Technology Fund (46,106) 46,106 0 0 0 Business Continuity (2,501) 2,501 0 0 0 Purchase of Equipment (Enveloper) (22,500) 7,500 (15,000) 7,500 (7,500) Business Support Scheme - Flooding (15,000) 15,000 0 0 0 Community Safety (35,400) 12,500 (22,900) 22,900 0 Coastal Works (6,600) 6,600 0 0 0 Direct Debits & System Developments (64,000) 40,000 (24,000) 24,000 0 Well Lane Landslip (13,680) 13,680 0 0 0 Emergency Planning Equipment & Training (4,820) 4,820 0 0 0 Groundworks re: Flooding Risk (13,260) 13,260 0 0 0 IT Services (22,890) 22,890 0 0 0 CCTV Cameras Decommissioning (15,000) 0 (15,000) 15,000 0 Land Charges Service Improvement Challenge - ICT (4,130) 4,130 0 0 0 PC Replacement (2,210) 2,210 0 0 0 (268,097) 191,197 (76,900) 69,400 (7,500)

Other NNDR Rate Pool Volatility Fund (41,845) 0 (41,845) 0 (41,845) Business Rate Income (621,000) 0 (621,000) 0 (621,000) AIP Loan Note Interest (95,104) 0 (95,104) 0 (95,104) (757,949) 0 (757,949) 0 (757,949)

SUB TOTAL - REVENUE (3,596,397) 1,873,350 (1,723,047) 601,854 (1,121,192)

Capital Reserves

Corporate Resources Revenue Financing for Capital Programme (10,000) 10,000 0 0 0 Brow Top Car Park Resurfacing Works (109,000) 109,000 0 0 0 Keswick Museum & HTM Capital Works (36,690) 36,690 0 0 0 Total (155,690) 155,690 0 0 0

Economic Growth Financial Planning & Economic Growth (221,273) 221,273 0 0 0 SUB TOTAL - CAPITAL (376,963) 376,963 0 0 0

GRAND TOTAL (3,973,360) 2,250,313 (1,723,047) 601,854 (1,121,192)

Page 77 Appendix I

MEDIUM TERM FINANCIAL PLAN REVISED Final 2015-16 2016-17 2017-18 2018-19 2019-20 £000's £000's £000's £000's £000's

Base Budget 12,220 12,466 12,174 11,872 11,678 Adjustments to Base (190) 0 0 0 Pension Increase 175 209 100 100 100 Salary related Costs 204 214 125 125 125 Recurring Growth 996 699 336 287 260 Self Sufficiency (627) (1,028) (888) (706) 0 Recurring Savings (311) (386) 0 0 0

Recurring (base) budget 12,467 12,174 11,847 11,678 12,163

Non-Recurring Growth 1,286 1,236 200 200 200 Non-Recurring Savings (1,008) (300) 0 0 0 Non-Recurring Salary related Costs (49) 0 0 0 0

12,696 13,110 12,047 11,878 12,363

Spend on Earmarked Priorities 1,716 602 0 0 0

Estimated Requirement (Excluding Precepts) 14,412 13,712 12,047 11,878 12,363

Parish Precepts 1,689 1,797 1,841 1,933 1,933

Estimated Requirement (Including Precepts) 16,101 15,509 13,888 13,811 14,296

Funding from Earmarked Reserves (1,716) (602) 0 0 General Fund Balances (143) 0 0 0

14,242 14,907 13,888 13,811 14,296

Revenue Support Grant 2,523 1,700 1,060 650 200 Other Government Grants (NHB) 1,079 1,526 1,441 1,425 1,204 Other non-ring fenced grants 149 323 261 201 261 Council Tax - Allerdale only 4,537 4,714 4,804 4,895 4,988 Council Tax - Parish element 1,689 1,797 1,841 1,933 1,933 Collection fund surplus/(Deficit) C'Tax 108 149 0 0 0 NNDR Funding 4,845 4,959 4,600 4,600 4,600 Collection fund surplus/(Deficit) NNDR (688) (261) 0 0 0

Estimated Financing 14,242 14,907 14,007 13,704 13,186

MTFP Projected Shortfall 0 0 (119) 107 1,110

Page 78 Appendix J

SELF SUFFICIENCY PROGRAMME

2015-16 2016-17 2017-18 2018-19 £000's £000's £000's £000's

Economic Growth Economic Development Initiatives (100,000) (150,000) (200,000) (250,000)

Operational Efficiencies Customer Services (80,000) 0 0 0 Service redesigns (70,000) (75,000) (100,000) (71,000) Service Restructure (25,000) 0 0 0 0 (50,000) 0 0 ICT improvements and strategy (50,000) 0 (40,000) (30,000) Reduction in Banking Contract (10,000) 0 0 0 Revenues and Benefits (50,000) 0 0 0 Advertising (5,000) (20,000) (20,000) (10,000) Planning 0 (45,000) (40,000) (20,000) Sports Centre Management 0 (187,500) (62,500) (75,000)

Service Delivery Town and parish transfers (25,000) (50,000) (50,000) (50,000) Toilets & Facilities Management (75,000) 0 0 0 Off Street Owned Parking (30,000) (75,000) (75,000) 0 Waste Management (75,000) (175,000) (50,000) 0 Trading services (32,000) 0 0 0 Parks & grounds Maintenance 0 (200,000) 0 0 (627,000) (1,027,500) (637,500) (506,000) Financing Increase business and C-tax base 0 (300,000) (250,000) (200,000)

Total Self Sufficiency (627,000) (1,327,500) (887,500) (706,000)

Accumulative Savings (3,548,000)

Page 79 This page is intentionally left blank

Page 80 Appendix K

Budget 2016/17 consultation – response document Questions & Summary of responses

1. Working more commercially and doing things differently – Trade Waste Services

A strong theme from the Residents’ Survey carried out in 2014, was that we should reduce costs by making services operate more commercially.

We have an obligation to collect waste from residential properties. However, we also offer a paid waste collection service for businesses which up to now has included a free collection service for recycling and green waste. This service is becoming less cost-effective due to the international downturn in the price which we receive for material which can be recycled. This means it is currently costing us more to collect the waste than we receive in income from it.

We therefore propose to introduce a nominal charge to our Trade Waste customers for this recycling service. This is in line with the practices of our local competitors. This will involve increasing income from recycling, and reducing the amount spent on land-fill costs. We will also look to introduce minor modifications to the way we deliver the service and will be communicating these to our existing trade waste customers.

Do you agree with the proposals to introduce charges for our Trade Waste customers for their recyclable waste?

Budget Consultation Response:

Response Percentage Yes 60.5 No 26.4 Don’t know 10.5 Not answered 2.6

2. Working more commercially and doing things differently - Car Parking (1)

We are looking at the way we run our Car Parks. One option we are looking at is the need to introduce better ticket machines in our car parks which can offer more ways to pay for tickets and a better range of charges. This will require an investment of around £350,000 in new machines. In return we will be able to provide a greater variety of ways to pay, including contactless and credit card payments.

Do you agree that we should invest in better ticket machines in our car parks to make it easier and more convenient for residents and visitors to pay for their parking?

Budget Consultation Response:

Page 81 Appendix K

Response Percentage Yes 55.2 No 34.3 Don’t know 7.9 Not answered 2.6

3. Working more commercially and doing things differently - Car Parking (2)

Charges for our car parks were last increased in April 2012 (nearly four years ago). We are also proposing to look at the fees and charges across all of our car parks. Proposals might include either increases or reductions in car parking charges depending on demand and need in different car parks. A further, more detailed, consultation on any fees and charges proposals will be taking place with representatives from groups who may be affected by any such changes including local businesses, parish councils and residents.

Do you agree that we are right to review our fees and charges for car parking given that they have not been reviewed for nearly four years?

Budget Consultation Response:

Response Percentage Yes 76.3 No 15.8 Don’t know 5.3 Not answered 2.6

4. Providing great services – non-statutory services

In the Residents’ Survey carried out in 2014, you told us that you were on the whole happy with the various services that we deliver. We provide all sorts of services from parks to planning, from business support to emptying bins – many of these we have to provide by law, but many we do not.

We continue to deliver some services which we are not obliged to (non-statutory services) because we know they are valued by, and important to, our communities. These non- statutory services include working on and supporting economic development to bring more businesses and jobs to our area, supporting festivals and events, providing leisure facilities and activities and encouraging town centre improvements.

Do you agree with our strategy to continue to offer non-statutory services?

Budget Consultation Response:

Response Percentage Yes 63.2 No 29.0

Page 82 Appendix K

Don’t know 5.2 Not answered 2.6

5. Better quality for less - reviewing of our contracts

We regularly review our contracts to ensure they are providing us with value for money. We anticipate that we could save £450,000 through better procurement and renegotiation of a number of contracts. We shall keep the impact on services to a minimum. For instance it may mean some changes to the day of the week when waste and recycling is collected, but not the frequency of collection.

Do you agree that this is the correct approach to take when considering the need for savings?

Budget Consultation Response:

Response Percentage Yes 89.5 No 7.9 Don’t know 0 Not answered 2.6

6. Grants to Parish Councils re Local Support for Council Tax

Under the Welfare Reform Act, Council Tax benefit paid to low income households was abolished from 1 April 2013. In its place, we were required to put in place a Local Support for Council Tax scheme (LSCT). This provides a discount on the amount of Council Tax owed for eligible residents. The Department for Communities and Local Government (DCLG) previously provided specific grant funding to Councils, including grants to parish councils to compensate them for the impact of this scheme.

However, in 2014/15 this funding was no longer ring fenced and it now forms part of the main Revenue Support Grant from central Government; and it is for local authorities to determine how much money should be allocated to the parishes.

As funding from central government continues to be reduced, we need to review the level of funding which goes from Allerdale Borough Council to town and parish councils. This does not affect the amount that parish councils can raise from their own precepts.

The amount we passed to town and parish councils this year (2015/16) is £92,500. As our Revenue Support Grant from central Government continues to decrease, the intention is to phase out this funding over the next three years. This would mean a 33% reduction in funding for 2016/17 and equivalent cash amounts for the following two years. Setting this reduction out over three years will enable town and parish councils to plan for these future reductions.

Do you agree with our proposals to reduce the amount of funding provided to town and parish councils?

Page 83 Appendix K

Budget Consultation Response:

Response Percentage Yes 63.2 No 26.3 Don’t know 5.2 Not answered 5.3

7. Next year’s Council Tax

We collect Council Tax for ourselves but also on behalf of Cumbria County Council, the Police, and your local town or parish council. This means that only about 13% of your Council Tax bill pays for services provided by us. This is about £156.97 a year for an average Band D property, or about £3 a week.

From 2012-13 we have not accepted the Council Tax freeze grants from government because of the adverse longer term impact this would have on our ability to raise income. Instead we have approved a year-on-year increase to Council Tax to keep up with inflation.

In a recent survey nearly 60% of residents supported an increase in Council Tax if this meant services that were important to them were protected. An increase in Council Tax will allow us to protect front-line services such as:

• Street cleaning

• Bin collections

• Recycling services

• Grass-cutting

We would like to know your views on whether we should increase the Council’s share of your Council Tax by 1.9% next year. If we increased the Allerdale Borough Council part of the Council Tax bill by 1.9% in 2016/17, it would raise £86,000 of additional income for us next year. For an average Band D household this is equivalent to paying £2.98 extra a year (or 6p a week), for an average Band A household this would equate to an increase of £1.99 a year (or 4p a week).

Do you agree with this proposed increase of 1.9% in Allerdale’s portion of the Council Tax bill?

Budget Consultation Response:

Response Percentage Yes 76.3 No 15.8 Don’t know 5.3 Not answered 2.6 .

Page 84 Agenda Item 13 Allerdale Borough Council

Council – 2 March 2016

Council Tax Resolution 2016-17

The Reason for the Decision To approve the necessary resolutions for Council Tax setting in accordance with Sections 31 – 36 of the Local Government Finance Act 1992.

Summary of options considered The Council is required to set a Council Tax in support of its budget each year.

Recommendations That the resolutions, as detailed in Appendix A be approved.

Financial/Resource Implications The Council is required to set the Council Tax each year in accordance with the legislation set out in this report.

The Council will be required to hold a referendum if Members decide to increase the Council Tax by 2% and more than £5 above its 2015-16 level.

Legal Implications Statutory requirement to set the Council Tax.

Community Safety Implications None

Health and Safety and Risk If the Council Tax is not set in accordance with Management Implications the legislation then there is a risk that the Council will be unable to bill in a timely manner with a consequential loss of revenue and this may affect the prudent management of the Council’s financial affairs.

Equality Duty considered/Impact Considered in entitlement to certain discounts Assessment completed and benefits.

Wards Affected All

The contribution this decision would Setting the Council Tax enables the Council to make to the Council’s Strategic collect the income it needs to fulfil its key aims Objectives and objectives.

Is this a Key Decision Yes

Portfolio Holder Cllr Barbara Cannon

Lead Officer Catherine Nicholson, Head of Financial Services, 01900 702503 [email protected] Page 85 Report Implications (Please delete where applicable).

Community Safety N Employment (external to the Council) N Financial Y Employment (internal) N Legal Y Partnership N Social Inclusion N Asset Management N Equality Duty Y Health and Safety N

Background papers - working papers within Financial Services and Revenues, Calculation of Council Tax Base for 2016-17 was approved at Council on 20 January 2016.

Appendices attached to this report:

Appendix A – Recommendations for Council to resolve for approval

Appendix B1 – The amount of Council Tax which relates to the Parish Precepts applicable to each valuation band

Appendix B2 – Aggregate of the Council Tax for Allerdale Borough Council and Parish Precept by valuation band

Appendix B3 – The Total amount of Council Tax to be levied in 2016-17, inclusive of Cumbria County Council, and the Police and Crime Commissioner for Cumbria Precept, applicable to each valuation band in each part of Borough

Appendix C – Parish Precept Council Tax Band D charge for 2016-17

Page 86 1.0 Background

1.1 The purpose of this report is to enable the Council to calculate and approve the Council Tax requirement for 2016-17, as required by The Local Government Finance Act 1992, as amended.

1.2 The precept levels of other precepting bodies provided below are based on the most up to date information that was available at the date of submitting this report. If any revised Precepts are submitted after this report is published, these will be tabled at the Council meeting on the 2 March 2016.

Town and Parish Councils

1.3 The Town and Parish Council Precepts for 2016-17 are detailed in Appendix C and total £1,797,392. The increase in the average Band D Council Tax for Town and Parish Councils is 2.58% and results in an average Band D Council Tax figure of £60.99 for 2016-17.

1.4 The £1,797,392 Precept figure included in Appendix A and Appendix C is based on the information that the Council has received from Parishes on the 2016-17 precepts.

1.5 However, under section 41 (4) of the Local Government Finance Act 1992 a local precepting authority has until the 1 March to submit their Precept to the billing authority. If any revised Precepts are submitted after this report is published, these will be tabled at the Council meeting on the 2 March 2016.

Cumbria County Council

1.6 Based on information that the Council has received from Cumbria County Council, their precept is £36,304,354, this results in a Band D Council Tax of £1,231.88.

1.7 The Cumbria County Council will meet on 18 February 2016 to set their precept. If any revised Precepts are submitted after this report is published, these will be tabled at the Council meeting on the 2 March 2016.

Police and Crime Commissioner for Cumbria

1.8 Based on information that the Council has received from The Police and Crime Commissioner for Cumbria, their precept is £6,384,236, this results in a Band D Council Tax of £216.63.

1.9 The Police and Crime Commissioner for Cumbria will meet on 24 February 2016 to set their precept. If any revised Precepts are submitted after this report is published, these will be tabled at the Council meeting on the 2 March 2016.

Page 87 2.0 Proposed Tax Levels 2.1 The recommendations are set out in the formal Council Tax resolution in Appendix A.

2.2 If the formal Council Tax Resolution at Appendix A is approved, the total Band D Council Tax will be as follows:-

2015-16 2016-17 Increase £ £ % Allerdale Borough 156.97 159.95 1.90% Council Cumbria County 1,184.61 1,231.88 3.99% Council Police and Crime 212.58 216.63 1.91% Commissioner for Cumbria Sub Total 1,554.16 1,608.46 3.49% Town and Parish 58.44 60.99 4.36% Council (average) TOTAL 1,612.60 1,669.45 3.53%

3.0 Other Options 3.1 The Localism Act 2011 makes provision for Council Tax referendums to be held if an authority increases its basic amount of Council Tax (Town and Parish Council precepts are excluded when making this calculation) in excess of principles determined by the Secretary of State. The excessiveness principles are set each year and the Secretary of State has proposed that for 2016-17 a referendum will be triggered if Allerdale Borough Council, Cumbria County Council or Police and Crime Commissioner for Cumbria set a Council Tax increase which exceeds 2% and more than £5 (4% for Cumbria County Council), compared to the 2015-16 Council Tax level. If any of these authorities Council Tax increase is above this level, they will be required to seek the approval of the electorate in a referendum.

4.0 Policy Decisions 4.1 At the Council meeting held on 20 January 2016, The Council approved the Calculation of the Council Tax Base for 2016-17, which outlined the basis of the calculation of the taxbase, which takes into consideration discounts at the relevant percentage for single person households, disregarded properties, second homes, unoccupied properties, family annex, uninhabitable properties and discounts and premiums for empty properties, and an estimate of the discounts through the Council Tax reduction Scheme.

5.0 Conclusion

5.1 The recommendations are set in the formal Council Tax Resolution in Appendix A for approval.

Catherine Nicholson Head of Financial Services

Page 88 APPENDIX A

The Council is recommended to resolve as follows:

1) It be noted that on 20 January 2016 the Council calculated:

a) the Council Tax base 2016-17 for the whole Council area as 29,470.69 (item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”)) and;

b) the dwellings in those parts of its area to which a Parish Precept relates as in the attached Appendix C.

2) The Council calculates that the Council Tax requirement for the Council’s own purposes for 2016-17 (excluding Parish precepts) is £4,713,837.

3) That the following amounts be calculated for the year 2016-17 in accordance with Sections 31 to 36 of the Act.

a) £53,439,477 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issues to it by Parish Council;

b) £46,928,248 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act;

c) £6,511,229 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council in accordance with Section 31A (4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act);

d) £220.94 being the amount at (c) above (Item R) divided by Item T (1 a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish Precepts); (as detailed in Appendix B1 parish only by valuation band and Appendix B2 parish and district by valuation band);

e) £1,797,392 being the aggregate amount of all special items (Parish Precepts) referred to in Section 34 (1) of the Act. (as detailed in Appendix B1 parish only by valuation band and C Parish Precepts);

f) £159.95 being the amount at (d) above less the result given by dividing the amount at (e) above by Item T (1 a) above), calculated by the Council, in accordance with Section 34 (2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no parish precept relates.

Page 89 APPENDIX A

4) To note that Cumbria County Council and The Police and Crime Commissioner for Cumbria have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

Valuation Bands Band A Band B Band C Band D Band E Band F Band G Band H Precepting Authority £ £ £ £ £ £ £ £ 821.25 958.13 1,095.00 1,231.88 1,505.63 1,779.38 2,053.13 2,463.76 Cumbria County Council 144.42 168.49 192.56 216.63 264.77 312.91 361.05 433.26 Cumbria Police Authority

5) The Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables detailed in Appendix B (1,2 and 3), as the amounts of Council Tax for 2016-17 for each part of its area and for each of the categories of dwellings.

Page 90 APPENDIX B1

Council Tax for Parish Precept by valuation band.

Valuation Bands A B C D E F G H Part of the Council’s area £ £ £ £ £ £ £ £ Above Derwent 23.87 27.85 31.83 35.81 43.77 51.73 59.68 71.62 Aikton 18.09 21.10 24.12 27.13 33.16 39.19 45.22 54.26 Allerby & Oughterside 33.72 39.34 44.96 50.58 61.82 73.06 84.30 101.16 Allhallows 34.64 40.41 46.19 51.96 63.51 75.05 86.60 103.92 Allonby 37.75 44.04 50.33 56.62 69.20 81.78 94.37 113.24 Aspatria 56.79 66.26 75.72 85.19 104.12 123.05 141.98 170.38 Bassenthwaite 24.11 28.13 32.15 36.17 44.21 52.25 60.28 72.34 Bewaldeth & Snittlegarth 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Blennerhasset & Torpenhow 38.47 44.88 51.29 57.70 70.52 83.34 96.17 115.40 Blindbothel 34.03 39.70 45.37 51.04 62.38 73.72 85.07 102.08 Blindcrake 28.97 33.79 38.62 43.45 53.11 62.76 72.42 86.90 Boltons 12.26 14.30 16.35 18.39 22.48 26.56 30.65 36.78 Borrowdale 17.03 19.86 22.70 25.54 31.22 36.89 42.57 51.08 Bothel & Threapland 19.77 23.07 26.36 29.66 36.25 42.84 49.43 59.32 Bowness 34.24 39.95 45.65 51.36 62.77 74.19 85.60 102.72 Bridekirk 14.37 16.76 19.16 21.55 26.34 31.13 35.92 43.10 Brigham 18.61 21.72 24.82 27.92 34.12 40.33 46.53 55.84 Bromfield 19.77 23.07 26.36 29.66 36.25 42.84 49.43 59.32 Broughton 14.43 16.83 19.24 21.64 26.45 31.26 36.07 43.28 Broughton Moor 45.61 53.22 60.82 68.42 83.62 98.83 114.03 136.84 Buttermere 13.92 16.24 18.56 20.88 25.52 30.16 34.80 41.76 Caldbeck 24.11 28.13 32.15 36.17 44.21 52.25 60.28 72.34 Camerton 16.48 19.23 21.97 24.72 30.21 35.71 41.20 49.44 Cockermouth 41.46 48.37 55.28 62.19 76.01 89.83 103.65 124.38 Crosscanonby 20.64 24.08 27.52 30.96 37.84 44.72 51.60 61.92 Dean 18.67 21.78 24.89 28.00 34.22 40.44 46.67 56.00 Dearham 24.03 28.03 32.04 36.04 44.05 52.06 60.07 72.08 Dundraw 18.91 22.07 25.22 28.37 34.67 40.98 47.28 56.74 Embleton 18.15 21.17 24.20 27.22 33.27 39.32 45.37 54.44 Gilcrux 46.71 54.50 62.28 70.07 85.64 101.21 116.78 140.14 Great Clifton 22.07 25.74 29.42 33.10 40.46 47.81 55.17 66.20 Greysouthen 36.65 42.75 48.86 54.97 67.19 79.40 91.62 109.94 Hayton & Mealo 32.11 37.47 42.82 48.17 58.87 69.58 80.28 96.34 Holme Abbey 37.97 44.29 50.62 56.95 69.61 82.26 94.92 113.90 Holme East Waver 37.07 43.24 49.42 55.60 67.96 80.31 92.67 111.20 Holme Low 11.41 13.31 15.21 17.11 20.91 24.71 28.52 34.22 Holme St Cuthbert 22.49 26.24 29.99 33.74 41.24 48.74 56.23 67.48 Ireby & Uldale 21.37 24.94 28.50 32.06 39.18 46.31 53.43 64.12 Keswick 67.12 78.31 89.49 100.68 123.05 145.43 167.80 201.36 Kirkbampton 26.53 30.96 35.38 39.80 48.64 57.49 66.33 79.60 Kirkbride 44.09 51.44 58.79 66.14 80.84 95.54 110.23 132.28

Page 91 APPENDIX B1

Valuation Bands A B C D E F G H Part of the Council’s area £ £ £ £ £ £ £ £ Little Clifton 24.95 29.11 33.27 37.43 45.75 54.07 62.38 74.86 Lorton 24.03 28.04 32.04 36.05 44.06 52.07 60.08 72.10 Loweswater 12.07 14.09 16.10 18.11 22.13 26.16 30.18 36.22 Maryport 48.79 56.93 65.06 73.19 89.45 105.72 121.98 146.38 Papcastle 32.45 37.85 43.26 48.67 59.49 70.30 81.12 97.34 Plumbland 26.60 31.03 35.47 39.90 48.77 57.63 66.50 79.80 Seaton 23.19 27.05 30.92 34.78 42.51 50.24 57.97 69.56 Sebergham 22.01 25.68 29.35 33.02 40.36 47.70 55.03 66.04 Setmurthy 6.42 7.49 8.56 9.63 11.77 13.91 16.05 19.26 Silloth 132.25 154.29 176.33 198.37 242.45 286.53 330.62 396.74 St Johns & Castlerigg & Wythburn 20.23 23.61 26.98 30.35 37.09 43.84 50.58 60.70 Thursby 35.19 41.05 46.92 52.78 64.51 76.24 87.97 105.56 Underskiddaw 18.78 21.91 25.04 28.17 34.43 40.69 46.95 56.34 Waverton 12.26 14.30 16.35 18.39 22.48 26.56 30.65 36.78 Westnewton 38.69 45.14 51.59 58.04 70.94 83.84 96.73 116.08 Westward 12.33 14.39 16.44 18.50 22.61 26.72 30.83 37.00 Wigton 66.52 77.61 88.69 99.78 121.95 144.13 166.30 199.56 Winscales 34.63 40.41 46.18 51.95 63.49 75.04 86.58 103.90 Woodside 14.55 16.97 19.40 21.82 26.67 31.52 36.37 43.64 Workington 40.36 47.09 53.81 60.54 73.99 87.45 100.90 121.08 Wythop 23.05 26.89 30.73 34.57 42.25 49.93 57.62 69.14

Page 92 APPENDIX B2

Aggregate of the Council Tax for Allerdale Borough Council and Parish Precept by valuation band.

Valuation Bands A B C D E F G H Part of the Council’s area £ £ £ £ £ £ £ £ Above Derwent 130.50 152.26 174.01 195.76 239.26 282.77 326.26 391.52 Aikton 124.72 145.51 166.30 187.08 228.65 270.23 311.80 374.16 Allerby & Oughterside 140.35 163.75 187.14 210.53 257.31 304.10 350.88 421.06 Allhallows 141.27 164.82 188.37 211.91 259.00 306.09 353.18 423.82 Allonby 144.38 168.45 192.51 216.57 264.69 312.82 360.95 433.14 Aspatria 163.42 190.67 217.90 245.14 299.61 354.09 408.56 490.28 Bassenthwaite 130.74 152.54 174.33 196.12 239.70 283.29 326.86 392.24 Bewaldeth & Snittlegarth 106.63 124.41 142.18 159.95 195.49 231.04 266.58 319.90 Blennerhasset & Torpenhow 145.10 169.29 193.47 217.65 266.01 314.38 362.75 435.30 Blindbothel 140.66 164.11 187.55 210.99 257.87 304.76 351.65 421.98 Blindcrake 135.60 158.20 180.80 203.40 248.60 293.80 339.00 406.80 Boltons 118.89 138.71 158.53 178.34 217.97 257.60 297.23 356.68 Borrowdale 123.66 144.27 164.88 185.49 226.71 267.93 309.15 370.98 Bothel & Threapland 126.40 147.48 168.54 189.61 231.74 273.88 316.01 379.22 Bowness 140.87 164.36 187.83 211.31 258.26 305.23 352.18 422.62 Bridekirk 121.00 141.17 161.34 181.50 221.83 262.17 302.50 363.00 Brigham 125.24 146.13 167.00 187.87 229.61 271.37 313.11 375.74 Bromfield 126.40 147.48 168.54 189.61 231.74 273.88 316.01 379.22 Broughton 121.06 141.24 161.42 181.59 221.94 262.30 302.65 363.18 Broughton Moor 152.24 177.63 203.00 228.37 279.11 329.87 380.61 456.74 Buttermere 120.55 140.65 160.74 180.83 221.01 261.20 301.38 361.66 Caldbeck 130.74 152.54 174.33 196.12 239.70 283.29 326.86 392.24 Camerton 123.11 143.64 164.15 184.67 225.70 266.75 307.78 369.34 Cockermouth 148.09 172.78 197.46 222.14 271.50 320.87 370.23 444.28 Crosscanonby 127.27 148.49 169.70 190.91 233.33 275.76 318.18 381.82 Dean 125.30 146.19 167.07 187.95 229.71 271.48 313.25 375.90 Dearham 130.66 152.44 174.22 195.99 239.54 283.10 326.65 391.98 Dundraw 125.54 146.48 167.40 188.32 230.16 272.02 313.86 376.64 Embleton 124.78 145.58 166.38 187.17 228.76 270.36 311.95 374.34 Gilcrux 153.34 178.91 204.46 230.02 281.13 332.25 383.36 460.04 Great Clifton 128.70 150.15 171.60 193.05 235.95 278.85 321.75 386.10 Greysouthen 143.28 167.16 191.04 214.92 262.68 310.44 358.20 429.84 Hayton & Mealo 138.74 161.88 185.00 208.12 254.36 300.62 346.86 416.24 Holme Abbey 144.60 168.70 192.80 216.90 265.10 313.30 361.50 433.80 Holme East Waver 143.70 167.65 191.60 215.55 263.45 311.35 359.25 431.10 Holme Low 118.04 137.72 157.39 177.06 216.40 255.75 295.10 354.12 Holme St Cuthbert 129.12 150.65 172.17 193.69 236.73 279.78 322.81 387.38 Ireby & Uldale 128.00 149.35 170.68 192.01 234.67 277.35 320.01 384.02 Keswick 173.75 202.72 231.67 260.63 318.54 376.47 434.38 521.26 Kirkbampton 133.16 155.37 177.56 199.75 244.13 288.53 332.91 399.50 Kirkbride 150.72 175.85 200.97 226.09 276.33 326.58 376.81 452.18

Page 93 APPENDIX B2

Valuation Bands A B C D E F G H Part of the Council’s area £ £ £ £ £ £ £ £ Little Clifton 131.58 153.52 175.45 197.38 241.24 285.11 328.96 394.76 Lorton 130.66 152.45 174.22 196.00 239.55 283.11 326.66 392.00 Loweswater 118.70 138.50 158.28 178.06 217.62 257.20 296.76 356.12 Maryport 155.42 181.34 207.24 233.14 284.94 336.76 388.56 466.28 Papcastle 139.08 162.26 185.44 208.62 254.98 301.34 347.70 417.24 Plumbland 133.23 155.44 177.65 199.85 244.26 288.67 333.08 399.70 Seaton 129.82 151.46 173.10 194.73 238.00 281.28 324.55 389.46 Sebergham 128.64 150.09 171.53 192.97 235.85 278.74 321.61 385.94 Setmurthy 113.05 131.90 150.74 169.58 207.26 244.95 282.63 339.16 Silloth 238.88 278.70 318.51 358.32 437.94 517.57 597.20 716.64 St Johns & Castlerigg & Wythburn 126.86 148.02 169.16 190.30 232.58 274.88 317.16 380.60 Thursby 141.82 165.46 189.10 212.73 260.00 307.28 354.55 425.46 Underskiddaw 125.41 146.32 167.22 188.12 229.92 271.73 313.53 376.24 Waverton 118.89 138.71 158.53 178.34 217.97 257.60 297.23 356.68 Westnewton 145.32 169.55 193.77 217.99 266.43 314.88 363.31 435.98 Westward 118.96 138.80 158.62 178.45 218.10 257.76 297.41 356.90 Wigton 173.15 202.02 230.87 259.73 317.44 375.17 432.88 519.46 Winscales 141.26 164.82 188.36 211.90 258.98 306.08 353.16 423.80 Woodside 121.18 141.38 161.58 181.77 222.16 262.56 302.95 363.54 Workington 146.99 171.50 195.99 220.49 269.48 318.49 367.48 440.98 Wythop 129.68 151.30 172.91 194.52 237.74 280.97 324.20 389.04

Page 94 APPENDIX B3

Aggregate of the Council Tax for Allerdale Borough Council, Cumbria County Council, Cumbria Police Authority and Parish Precept by valuation band.

Valuation Bands A B C D E F G H Part of the Council’s area £ £ £ £ £ £ £ £ Above Derwent 1,096.17 1,278.88 1,461.57 1,644.27 2,009.66 2,375.06 2,740.44 3,288.54 Aikton 1,090.39 1,272.13 1,453.86 1,635.59 1,999.05 2,362.52 2,725.98 3,271.18 Allerby & Oughterside 1,106.02 1,290.37 1,474.70 1,659.04 2,027.71 2,396.39 2,765.06 3,318.08 Allhallows 1,106.94 1,291.44 1,475.93 1,660.42 2,029.40 2,398.38 2,767.36 3,320.84 Allonby 1,110.05 1,295.07 1,480.07 1,665.08 2,035.09 2,405.11 2,775.13 3,330.16 Aspatria 1,129.09 1,317.29 1,505.46 1,693.65 2,070.01 2,446.38 2,822.74 3,387.30 Bassenthwaite 1,096.41 1,279.16 1,461.89 1,644.63 2,010.10 2,375.58 2,741.04 3,289.26 Bewaldeth & Snittlegarth 1,072.30 1,251.03 1,429.74 1,608.46 1,965.89 2,323.33 2,680.76 3,216.92 Blennerhasset & Torpenhow 1,110.77 1,295.91 1,481.03 1,666.16 2,036.41 2,406.67 2,776.93 3,332.32 Blindbothel 1,106.33 1,290.73 1,475.11 1,659.50 2,028.27 2,397.05 2,765.83 3,319.00 Blindcrake 1,101.27 1,284.82 1,468.36 1,651.91 2,019.00 2,386.09 2,753.18 3,303.82 Boltons 1,084.56 1,265.33 1,446.09 1,626.85 1,988.37 2,349.89 2,711.41 3,253.70 Borrowdale 1,089.33 1,270.89 1,452.44 1,634.00 1,997.11 2,360.22 2,723.33 3,268.00 Bothel & Threapland 1,092.07 1,274.10 1,456.10 1,638.12 2,002.14 2,366.17 2,730.19 3,276.24 Bowness 1,106.54 1,290.98 1,475.39 1,659.82 2,028.66 2,397.52 2,766.36 3,319.64 Bridekirk 1,086.67 1,267.79 1,448.90 1,630.01 1,992.23 2,354.46 2,716.68 3,260.02 Brigham 1,090.91 1,272.75 1,454.56 1,636.38 2,000.01 2,363.66 2,727.29 3,272.76 Bromfield 1,092.07 1,274.10 1,456.10 1,638.12 2,002.14 2,366.17 2,730.19 3,276.24 Broughton 1,086.73 1,267.86 1,448.98 1,630.10 1,992.34 2,354.59 2,716.83 3,260.20 Broughton Moor 1,117.91 1,304.25 1,490.56 1,676.88 2,049.51 2,422.16 2,794.79 3,353.76 Buttermere 1,086.22 1,267.27 1,448.30 1,629.34 1,991.41 2,353.49 2,715.56 3,258.68 Caldbeck 1,096.41 1,279.16 1,461.89 1,644.63 2,010.10 2,375.58 2,741.04 3,289.26 Camerton 1,088.78 1,270.26 1,451.71 1,633.18 1,996.10 2,359.04 2,721.96 3,266.36 Cockermouth 1,113.76 1,299.40 1,485.02 1,670.65 2,041.90 2,413.16 2,784.41 3,341.30 Crosscanonby 1,092.94 1,275.11 1,457.26 1,639.42 2,003.73 2,368.05 2,732.36 3,278.84 Dean 1,090.97 1,272.81 1,454.63 1,636.46 2,000.11 2,363.77 2,727.43 3,272.92 Dearham 1,096.33 1,279.06 1,461.78 1,644.50 2,009.94 2,375.39 2,740.83 3,289.00 Dundraw 1,091.21 1,273.10 1,454.96 1,636.83 2,000.56 2,364.31 2,728.04 3,273.66 Embleton 1,090.45 1,272.20 1,453.94 1,635.68 1,999.16 2,362.65 2,726.13 3,271.36 Gilcrux 1,119.01 1,305.53 1,492.02 1,678.53 2,051.53 2,424.54 2,797.54 3,357.06 Great Clifton 1,094.37 1,276.77 1,459.16 1,641.56 2,006.35 2,371.14 2,735.93 3,283.12 Greysouthen 1,108.95 1,293.78 1,478.60 1,663.43 2,033.08 2,402.73 2,772.38 3,326.86 Hayton & Mealo 1,104.41 1,288.50 1,472.56 1,656.63 2,024.76 2,392.91 2,761.04 3,313.26 Holme Abbey 1,110.27 1,295.32 1,480.36 1,665.41 2,035.50 2,405.59 2,775.68 3,330.82 Holme East Waver 1,109.37 1,294.27 1,479.16 1,664.06 2,033.85 2,403.64 2,773.43 3,328.12 Holme Low 1,083.71 1,264.34 1,444.95 1,625.57 1,986.80 2,348.04 2,709.28 3,251.14 Holme St Cuthbert 1,094.79 1,277.27 1,459.73 1,642.20 2,007.13 2,372.07 2,736.99 3,284.40 Ireby & Uldale 1,093.67 1,275.97 1,458.24 1,640.52 2,005.07 2,369.64 2,734.19 3,281.04 Keswick 1,139.42 1,329.34 1,519.23 1,709.14 2,088.94 2,468.76 2,848.56 3,418.28 Kirkbampton 1,098.83 1,281.99 1,465.12 1,648.26 2,014.53 2,380.82 2,747.09 3,296.52 Kirkbride 1,116.39 1,302.47 1,488.53 1,674.60 2,046.73 2,418.87 2,790.99 3,349.20

Page 95 APPENDIX B3

Valuation Bands A B C D E F G H Part of the Council’s area £ £ £ £ £ £ £ £ Little Clifton 1,097.25 1,280.14 1,463.01 1,645.89 2,011.64 2,377.40 2,743.14 3,291.78 Lorton 1,096.33 1,279.07 1,461.78 1,644.51 2,009.95 2,375.40 2,740.84 3,289.02 Loweswater 1,084.37 1,265.12 1,445.84 1,626.57 1,988.02 2,349.49 2,710.94 3,253.14 Maryport 1,121.09 1,307.96 1,494.80 1,681.65 2,055.34 2,429.05 2,802.74 3,363.30 Papcastle 1,104.75 1,288.88 1,473.00 1,657.13 2,025.38 2,393.63 2,761.88 3,314.26 Plumbland 1,098.90 1,282.06 1,465.21 1,648.36 2,014.66 2,380.96 2,747.26 3,296.72 Seaton 1,095.49 1,278.08 1,460.66 1,643.24 2,008.40 2,373.57 2,738.73 3,286.48 Sebergham 1,094.31 1,276.71 1,459.09 1,641.48 2,006.25 2,371.03 2,735.79 3,282.96 Setmurthy 1,078.72 1,258.52 1,438.30 1,618.09 1,977.66 2,337.24 2,696.81 3,236.18 Silloth 1,204.55 1,405.32 1,606.07 1,806.83 2,208.34 2,609.86 3,011.38 3,613.66 St Johns & Castlerigg & Wythburn 1,092.53 1,274.64 1,456.72 1,638.81 2,002.98 2,367.17 2,731.34 3,277.62 Thursby 1,107.49 1,292.08 1,476.66 1,661.24 2,030.40 2,399.57 2,768.73 3,322.48 Underskiddaw 1,091.08 1,272.94 1,454.78 1,636.63 2,000.32 2,364.02 2,727.71 3,273.26 Waverton 1,084.56 1,265.33 1,446.09 1,626.85 1,988.37 2,349.89 2,711.41 3,253.70 Westnewton 1,110.99 1,296.17 1,481.33 1,666.50 2,036.83 2,407.17 2,777.49 3,333.00 Westward 1,084.63 1,265.42 1,446.18 1,626.96 1,988.50 2,350.05 2,711.59 3,253.92 Wigton 1,138.82 1,328.64 1,518.43 1,708.24 2,087.84 2,467.46 2,847.06 3,416.48 Winscales 1,106.93 1,291.44 1,475.92 1,660.41 2,029.38 2,398.37 2,767.34 3,320.82 Woodside 1,086.85 1,268.00 1,449.14 1,630.28 1,992.56 2,354.85 2,717.13 3,260.56 Workington 1,112.66 1,298.12 1,483.55 1,669.00 2,039.88 2,410.78 2,781.66 3,338.00 Wythop 1,095.35 1,277.92 1,460.47 1,643.03 2,008.14 2,373.26 2,738.38 3,286.06

Page 96 APPENDIX C

PARISH PRECEPT COUNCIL TAX BAND D 2016-17

2016-17 Net Parish Parish Parish Tax Band D Precept Base Rate £ £ Above Derwent 23,468.22 655.41 35.81 Aikton 4,435.20 163.46 27.13 Allerby & Oughterside 9,729.28 192.36 50.58 Allhallows 8,734.91 168.10 51.96 Allonby 8,664.36 153.04 56.62 Aspatria 60,032.84 704.68 85.19 Bassenthwaite 7,350.00 203.19 36.17 Bewaldeth & Snittlegarth 0.00 16.62 0.00 Blennerhasset & Torpenhow 9,339.52 161.86 57.70 Blindbothel 3,400.00 66.61 51.04 Blindcrake 6,006.59 138.25 43.45 Boltons 4,537.77 246.74 18.39 Borrowdale 4,925.00 192.86 25.54 Bothel & Threapland 4,802.87 161.95 29.66 Bowness 18,784.00 365.71 51.36 Bridekirk 6,341.00 294.28 21.55 Brigham 9,289.80 332.77 27.92 Bromfield 5,852.98 197.36 29.66 Broughton 11,812.20 545.78 21.64 Broughton Moor 14,714.99 215.08 68.42 Buttermere 1,395.47 66.82 20.88 Caldbeck 11,767.53 325.37 36.17 Camerton 1,500.00 60.68 24.72 Cockermouth 184,042.52 2,959.30 62.19 Crosscanonby 10,575.00 341.52 30.96 Dean 14,084.61 503.02 28.00 Dearham 25,353.59 703.56 36.04 Dundraw 1,679.98 59.22 28.37 Embleton 4,044.60 148.57 27.22 Gilcrux 8,321.75 118.77 70.07 Great Clifton 10,000.00 302.14 33.10 Greysouthen 11,797.38 214.60 54.97 Hayton & Mealo 3,875.76 80.46 48.17 Holme Abbey 12,049.59 211.60 56.95 Holme East Waver 6,500.00 116.91 55.60 Holme Low 1,811.92 105.91 17.11 Holme St Cuthbert 4,902.53 145.30 33.74 Ireby & Uldale 6,363.12 198.46 32.06 Keswick 201,554.00 2,001.96 100.68 Kirkbampton 7,000.00 175.88 39.80 Kirkbride 9,700.00 146.65 66.14 Little Clifton 5,173.25 138.21 37.43

Page 97 APPENDIX C

2016-17 Net Parish Parish Parish Tax Band D Precept Base Rate £ £ Lorton 5,417.64 150.29 36.05 Loweswater 2,382.32 131.56 18.11 Maryport 188,660.21 2,577.56 73.19 Papcastle 8,869.67 182.25 48.67 Plumbland 5,000.00 125.32 39.90 Seaton 49,756.00 1,430.77 34.78 Sebergham 4,500.00 136.30 33.02 Setmurthy 487.41 50.59 9.63 Silloth 165,093.41 832.26 198.37 St Johns & Castlerigg & Wythburn 5,881.52 193.80 30.35 Thursby 21,738.33 411.89 52.78 Underskiddaw 4,771.73 169.38 28.17 Waverton 1,945.00 105.74 18.39 Westnewton 4,898.99 84.40 58.04 Westward 5,891.28 318.50 18.50 Wigton 163,920.83 1,642.84 99.78 Winscales 2,917.77 56.17 51.95 Woodside 4,246.90 194.65 21.82 Workington 384,439.00 6,350.52 60.54 Wythop 860.16 24.88 34.57

TOTAL 1,797,392.30 29,470.69

Page 98 Agenda Item 14

Allerdale Borough Council

Council – 2 March 2016

Recommendations Referred to Council

Treasury Management Strategy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy Statement 2016/17

The following recommendations have been referred to Council by Audit Committee on 12 February 2016.

It is for Council to consider its response.

Recommended

That Council be requested to approve the proposed:

a) Treasury Management Strategy Statement & Investment Strategy for 2016/17 b) Minimum Revenue Provision Policy Statement for 2016/17 c) Prudential and treasury indicators for 2016/17 to 2018/19 – including the Council’s Authorised Borrowing Limit

Dean Devine Democratic and Support Services Officer

Page 99 This page is intentionally left blank

Page 100 Allerdale Borough Council

Audit Committee - 12 February 2016 Council - 2 March 2016

Treasury Management Strategy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy Statement 2016/17

The Reason for the Decision Provisions contained in the Local Government Act 2003, statutory guidance issued by the Department for Communities and Local Government (CLG) and codes of practice issued by the Chartered Institute of Public Finance and Accountancy (CIPFA) require the Council to prepare and approve, before the start of each financial year:  a Treasury Management Strategy Statement (TMSS) and Investment Strategy setting out its proposed treasury management activities for the year and policies for the prudent management of its investments  a statement of its policy on making Minimum Revenue Provision (MRP) indicating how it is proposed to discharge the duty to make prudent MRP in the forthcoming financial year  a set of prescribed prudential and treasury indicators for the forthcoming and following years - including the Council’s Authorised Borrowing Limit - demonstrating that its capital expenditure plans are affordable and that external borrowing is within prudent and sustainable levels.

Summary of options considered N/A

Recommendations a) That the proposed Treasury Management Strategy Statement & Investment Strategy for 2016/17 (included in sections 2 and 3 of Appendix 1) be agreed.

b) That the MRP Policy Statement set out in section 4 (of Appendix 1) be agreed.

c) That the prudential and treasury indicators - including the Council’s Authorised Borrowing Limit set out in Section 5 of Appendix 1 be agreed.

Page 101 Financial/Resource Implications None directly, however the Council provides for interest receivable and interest payable and MRP within its annual revenue budget.

Legal Implications Noted above

Community Safety Implications None directly

Health and Safety and Risk The Council regards the successful identification, Management Implications monitoring and control of risk to be the prime criteria by which the effectiveness of its treasury management activities will be measured.

Equality Duty considered/Impact N/A Assessment completed

Wards Affected None directly

The contribution this decision Effective treasury management and compliance with would make to the Council’s the Prudential Code will provide support towards the Strategic Objectives achievement of the Council’s business and service objectives.

Is this a Key Decision No

Portfolio Holder Cllr Barbara Cannon

Lead Officer Catherine Nicholson. Head of Financial Services Ext: 2503 e-mail: [email protected]

Report Implications (Please delete where applicable).

Community Safety N Employment (external to the Council) N Financial Y Employment (internal) N Legal Y Partnership N Social Inclusion N Asset Management N Equality Duty N Health and Safety N

Background papers

Appendix 1: Treasury Management Strategy Statement, Annual Investment Strategy and Minimum Revenue Policy Statement - 2016/17

Page 102 1.0 Introduction

1.1 Provisions contained in the Local Government Act 2003, statutory guidance and regulations issued by the Department for Communities and Local Government (CLG) and codes of practice issued by the Chartered Institute of Public Finance and Accountancy (CIPFA), require the Council to prepare and approve, before the start of each financial year:  a Treasury Management Strategy Statement (TMSS) and Investment Strategy setting out its proposed treasury management activities for the year and policies for the prudent management of its investments  a statement of its policy on making Minimum Revenue Provision (MRP) indicating how it is proposed to discharge the duty to make prudent MRP in the forthcoming financial year  a set of prescribed prudential and treasury indicators for the forthcoming and following years - including the Council’s Authorised Borrowing Limit - demonstrating that its capital expenditure plans are affordable and that external borrowing is within prudent and sustainable levels.

1.2 This report - prepared in accordance with the statutory framework and codes of practice issued by CIPFA in relation to treasury management and capital finance - presents for approval by the full council, the Council’s proposed:  Treasury Management Strategy Statement and Investment Strategy for 2016/17  Minimum Revenue Provision Policy Statement for 2016/17  Prudential and treasury indicators for 2016/17 to 2018/19.

1.3 The Council’s proposed Treasury Management Strategy Statement, Investment Strategy and Minimum Revenue Provision (MRP) policy for 2016/17 are appended to this report (Appendix 1). The proposed TMSS, Investment Strategy and MRP policy for 2016/17 includes no significant changes to the policies and strategies adopted in respect of the financial year 2015/16.

1.4 To enable the Audit Committee to fulfil its responsibilities for ensuring effective scrutiny of the treasury management strategy and policies the Council’s Treasury Management Practices (TMPs) require treasury management reports - including the report covering those matters listed in paragraph 1.2 above - to be submitted to the Audit Committee prior to their consideration by full council.

1.5 The following sections provide an overview and summary of the contents of the proposed TMSS, Investment Strategy and MRP policy statement included in Appendix 1 to this report.

Page 103 2.0 Treasury Management Strategy Statement

2.1 The Treasury Management Strategy Statement sets out the Council’s proposed treasury management activities for the year - based on budget proposals, interest rate forecasts and economic outlook.

2.2 The issues covered in the Treasury Management Strategy Statement include:  the current treasury position  treasury indicators required by CIPFAs Prudential Code for Capital Finance in Local Authorities and Treasury Management in the Public Services: Code of Practice and accompanying sector guidance  economic background and prospects for interest rates  borrowing strategy  policy on borrowing in advance of need  debt rescheduling  policy on the use of derivatives  the process adopted for reviewing and addressing the training needs of officers and members in relation to treasury management  use of treasury management consultants including services provided and procedures employed for monitoring the quality of those services.

2.3 The Council’s treasury activities expose it to a number of financial and operational risks including credit and counterparty risk, liquidity risk, and interest rate risk. The Council’s Treasury Management Policy Statement highlights the successful identification, monitoring and control of risk as being the prime criteria by which the effectiveness of its treasury management activities will be measured. Risk management is therefore central to the Council’s adopted treasury management and investment strategies.

3.0 Investment Strategy

3.1 The Annual Investment Strategy for 2016/17 - included in section 3 of Appendix 1- sets out the Council’s policies for the prudent financial management of its investments and for giving priority first to the security of those investments and secondly, to their liquidity.

3.2 The contents of the Council’s Investment Strategy follow the recommendations set out in the CLG Guidance on Local Government Investments (second edition). It includes:  procedures for determining the counterparties with whom investments may be placed, including the Council’s approach on the use of credit ratings and other sources of information to assess credit and counterparty risk  the types of investment instruments that may be used

Page 104  limits placed on the amount that may be invested with any single institution or group of institutions  limits on the maximum period for which funds may be prudently committed  reporting arrangements.

4.0 Minimum revenue provision (MRP) policy statement 2016/17

4.1 The MRP is an annual amount required to be set aside from the General Fund to meet the capital cost of expenditure funded by borrowing or through credit arrangements such as on balance sheet leasing arrangements (finance leases). The Council’s proposed MRP policy, setting out how it will discharge the duty under the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (as amended) to make prudent MRP in the financial year, is set out in section 4 of Appendix 1. It includes:  a description of what MRP is intended to achieve  commentary on the Council’s underlying duty to make prudent provision and ensure that debt is repaid over a period commensurate with that over which the capital expenditure provides benefits, or - for borrowing supported by central government funding (Revenue Support Grant) - over the period implicit in the determination of that funding  consideration of the ‘options’ for calculating MRP outlined in the statutory guidance on MRP and the restrictions on their use  the policy proposed for the forthcoming year.

4.2 Having regard to the statutory guidance on MRP issued by CLG and the ‘options’ for calculating MRP set out in that guidance the Council will calculate MRP:  for all capital expenditure funded from borrowing incurred before 1 April 2008 and for all supported capital expenditure funded from borrowing incurred on or after 1 April 2008, based on 4% of Capital Financing Requirement at the end of the preceding financial year (Option 2- CFR method)  for unsupported capital expenditure funded from borrowing expenditure incurred after 1 April 2008 by applying Option 3 - Asset Life Method, using either the equal instalments or annuity method  for credit arrangements such as such as on balance sheet leasing arrangements (finance leases) by charging an amount (MRP) equal to the element of the rent/charge that goes to write down the balance sheet liability.

5.0 Prudential & Treasury Indicators

5.1 The Prudential Code for Capital Finance in Local Authorities requires authorities to self-regulate the affordability, prudence and sustainability of their

Page 105 capital expenditure and borrowing plans, by setting estimates and limits and by publishing actuals for a range of prudential indicators. It also requires them to ensure their treasury management practices are in accordance with good practice.

5.2 The prudential and treasury indicators for the forthcoming and following years must be set before the beginning of the forthcoming year. They may be revised at any time, following due process, and must be reviewed, and revised if appropriate, for the current year when the prudential indicators are set for the following year.

5.3 The Council’s prudential and treasury indicators for 2016/17 and following years are set out in section 5 of Appendix 1. They include:  indicators required by the Prudential Code covering affordability, prudence, capital expenditure, external debt and treasury management. These include the statutory limit on borrowing determined under section 3 of the Local Government Act 2003 (the Authorised Limit for External Debt)  indicators required by the sector guidance accompanying the Treasury Management Code and designed to ensure the Council operates its treasury activities within defined limits 5.4 At Audit Committee on the 12 February 2016, the Interim Accountant provided amended estimates on the ratio of financing costs to net revenue stream (Table 12). The estimate for 2016/17 was amended from 8.8% to 8.5%, the estimate for 2017/18 was amended from 11.5% to 11.3% and the estimate for 2018/19 was amended from 12.4% to 12.2%. 5.5 The estimates for the incremental impact of capital investment decisions (Table 13) were also amended. The estimate for 2016/17 was amended to (£1.21) from (£2.06) for the 2016/17 capital programme only and the capital programme 2016/17 to 2018/19. The estimate for 2017/18 was amended to £1.37 (was £0.24) for the 2016/17 capital programme only and £1.98 (was £0.85) for the capital programme 2016/17 to 2018/19 and the estimate for 2018/19 was amended to £1.41 (was £0.28) for the 2016/17 capital programme only and £5.76 (was £4.63) for the capital programme 2016/17 to 2018/19. Members agreed to accept the recommendations within the report, including all amendments.

Page 106 6.0 Recommendations

6.1 That the proposed Treasury Management Strategy Statement & Investment Strategy for 2016/17 (included in sections 2 and 3 of Appendix 1) be agreed.

6.2 That the MRP Policy Statement set out in section 4 (of Appendix 1) be agreed.

6.3 That the prudential and treasury indicators, (including the Council’s Authorised Borrowing Limit), set out in Section 5 of Appendix 1 be agreed.

Catherine Nicholson

Head of Financial Services

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Treasury Management Strategy Statement & Investment Strategy Minimum Revenue Provision Policy 2016/2017

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Contents

1. Introduction ...... 4 1.1 Background ...... 4 1.2 Reporting requirements ...... 4

2. Treasury Management Strategy Statement (TMSS) ...... 6 2.1 Current treasury position ...... 6 2.2 Treasury Indicators: limits on borrowing & investing activity ...... 6 2.3 Economic Background ...... 7 2.4 Prospects for interest rates ...... 12 2.5 Borrowing strategy ...... 14 2.6 Policy on borrowing in advance of need ...... 15 2.7 Debt rescheduling ...... 15 2.8 Policy on the use of derivatives ...... 16 2.9 Training ...... 17 2.10 Treasury management consultants ...... 17

3. Annual Investment Strategy...... 18 3.1 Investment policy - objectives ...... 18 3.2 Creditworthiness policy (credit risk management) ...... 18 3.3 Approved investment counterparties ...... 18 3.4 Approved instruments ...... 20 3.5 Limits on principal sums invested ...... 21 3.6 Limits on investment maturities...... 21 3.7 Changes to credit rating methodology ...... 22 3.8 Reporting arrangements ...... 23

4. Minimum revenue provision (MRP) policy statement...... 24

5. Prudential & treasury Indicators 2016/17 - 2018/19...... 27 5.1 Indicators required by the Prudential Code ...... 27 5.2 Indicators required by the Treasury Management Code...... 33

6. Appendices ...... 36 A. Interest Rate Forecasts 2016 - 2019 ...... 37 B. Short & Long term credit ratings ...... 38

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1. Introduction

1.1 Background 1.1.1 For public sector organisations, the Chartered Institute of Public Finance and Accountancy (CIPFA) defines treasury management as “the management of the organisations investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks”.

1.1.2 This definition expects a ‘best value’ approach in which authorities should seek to minimise the cost of borrowing (or maximise the returns from investment), subject to the over-riding management of risks, with risk limitation being more important than return (yield).

1.1.3 The statutory framework for treasury management within local authorities is laid out in a series of legislations, statutory guidance and codes of practice, the key elements of which are:  The Local Government Act 2003 - (‘the 2003 Act’)  The Local Authorities (Capital Finance and Accounting)(England) Regulations 2003 (as amended) - (‘the 2003 Regulations’)  Department for Communities and Local Government (CLG) Guidance on Local Government Investments - second edition (March 2010)  CLG guidance on Minimum Revenue Provision - third edition (February 2012)  The Prudential Code for Capital Finance in Local Authorities - 2011 Edition - (‘the Prudential Code’)  CIPFA’s Treasury Management in the Public Services: Code of Practice and Cross-Sectoral Guidance Notes 2011 Edition - (‘the Treasury Management Code’)

1.2 Reporting requirements

1.2.1 Provisions contained in the Local Government Act 2003, statutory guidance and regulations issued by the Department for Communities and Local Government and Codes of Practice issued by CIPFA in relation to treasury management and capital finance, require local authorities to prepare and approve, before the start of each financial year:  a Treasury Management Strategy Statement (TMSS) and Investment Strategy setting out its proposed treasury management activities for the year - based on budget proposals, interests rate forecasts and economic outlook - and policies for the prudent management of its investments  a statement of its policy on making Minimum Revenue Provision (MRP) indicating how, in the forthcoming financial year, the duty to make prudent MRP will be discharged

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 a set of prescribed prudential and treasury indicators for the forthcoming and following years - including the Council’s Authorised Borrowing Limit - demonstrating that its capital expenditure plans are affordable and that external borrowing is within prudent and sustainable levels.

1.2.2 The Treasury Management Code also requires authorities to ensure that the Full Council receives:  a mid-year review providing: - an update on the economic environment and interest rate forecasts - a Treasury Management Strategy Statement and Investment Strategy update, including details of variations (if any) from agreed policies/practices - a review of investing and borrowing activities - confirmation of compliance with treasury and prudential indicators.  after the year-end, an annual report on the performance of the treasury management function, on the effects of the decisions taken and the transactions executed in the past year, and on any circumstances of non-compliance with the Council’s treasury management policy statement.

1.2.3 This document - prepared in accordance with the statutory framework and codes of practice referred to above - sets out the Council’s:  Treasury Management Strategy Statement (TMSS) and Investment Strategy for 2016/17  Minimum revenue provision (MRP) policy statement for 2016/17  Prudential and treasury indicators for the three year period 2016/17 to 2018/19

1.2.4 The TMSS and Investment Strategy, MRP policy and the prudential and treasury indicators are required to be approved by Full Council prior to the commencement of the financial year to which they relate.

1.2.5 To enable the Audit Committee to fulfil its responsibilities for ensuring effective scrutiny of treasury management strategy and policies the Council’s Treasury Management Practices (TMPs) require treasury management reports - including this report - to be submitted to the Audit Committee prior to their consideration by Full Council.

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2. Treasury Management Strategy Statement

2.1 Current treasury position

2.1.1 The Council’s treasury portfolio position at 31st December 2015 is summarised in table 1. Table 1 also shows a comparison of the Council’s actual external debt (borrowing) postion with its underlying capital borrowing need (the Capital Financing Requirement - CFR), highlighting any over or under borrowing.

Table 1: Investment and borrowing At 31 At 31 At 31 At 31 Dec 2015 Mar 2015 Dec 2014 Mar 2014 £000 £000 £000 £000 Investments Specified Investments: Term, call & notice accounts 2,874 7,024 12,654 5,022 Money Market Funds 10,316 3,813 45 4,469 Non-specified investments: UK Government securities 0 1 21 21 Equities 10 10 10 10 Total investments 13,200 10,848 12,730 9,522 Borrowing PWLB 9,833 9,885 9,889 9,937 Other borrowing 93 245 245 245 Other long-term liabilities 0 0 0 0 Total (gross) debt 9,926 10,130 10,134 10,182 Capital Financing Requirement 14,009 13,355 12,201 12,725 (Under)/Over borrowing (4,083) (3,225) (2,067) (2,543)

2.2 Treasury Indicators: limits on borrowing and lending activity

2.2.1 The Local Government Act 2003 requires a local authority to create and keep under review limits on how much money it can afford to borrow by way of loans and other forms of credit (for example finance leases). The processes authorities must follow in setting these limits (the ‘Authorised Limit for external debt’) are set out in the Prudential Code which authorities must ‘have regard to’. An authority is free to vary its affordable borrowing limit - subject to approval by Full Council – provided there is good reason for doing so. However breach of the Affordable Borrowing Limit is prohibited by the 2003 Act and any borrowing above the affordable borrowing limit is ultra- vires.

2.2.2 In addition to the Authorised Limit the Prudential and Treasury Management Codes and accompanying sector guidance include a number of other key treasury management indicators designed to ensure the Council operates its treasury activities within well-defined limits. These include:

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 setting an operational boundary for external debt based on the expectations of the most likely maximum external debt for the year and reflecting the authority’s plans for capital expenditure, estimated capital financing requirement (CFR) and cash flow requirements for the year for all purposes  ensuring that gross debt does not, except in the short term, exceed the total of the CFR in the preceding year plus the estimates of any additional CFR for current and the following two financial years.  placing upper limits on: - fixed interest and variable interest rate exposures - the total of principal sums invested longer than 364 days  placing upper and lower limits on the maturity structure of its fixed rate borrowing.

2.2.3 Details of the Council’s prudential and treasury indicators are set out in section 5 of this report.

2.3 Economic Background UK Economy

2.3.1 UK GDP growth rates of 2.2% in 2013 and 2.9% in 2014 were the strongest growth rates of any G7 country. The 2014 growth rate was also the strongest UK rate since 2006. Although the 2015 growth rate is likely to be a leading rate in the G7 again, it looks likely to disappoint previous forecasts and come in at about +2.2%. Growth in quarter 1 of 2015 was weak at +0.4% (+2.9 y/y). Although there was a slight increase in quarter 2 to +0.5% (+2.3% y/y), growth fell back +0.4% in quarter 3 (+2.1%y/y).

2.3.2 GDP growth in Q3 was underpinned by increased output in three of the four main industrial groupings within the economy. However the UK economy is still reliant on the service sector. Output in the service sector expanded by 0.6% during the quarter with production and agriculture each increasing by a more modest 0.2%. Within the production grouping manufacturing, the largest component, fell by 0.4%. Output in the construction sector decreased by 1.9%.

2.3.3 Despite the headwinds faced by the UK economy the Bank of England’s November Inflation Report included a forecast for growth to remain around 2.5% - 2.7% over the next three years (2015-2017). This growth is expected to be driven mainly by strong consumer demand as the squeeze on the disposable incomes of consumers has been reversed by a recovery in wage inflation at the same time that CPI inflation has fallen to, or near to, zero since February 2015. Investment expenditure is also expected to support growth. However, since the August Inflation report was issued, most worldwide economic statistics have been weak and financial markets have been particularly volatile. The November Inflation Report flagged up particular concerns for the potential impact of these on the UK.

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2.3.4 There also remain concerns that for the UK’s recovery to become more balanced and sustainable in the longer term, it still needs to move away from dependence on consumer expenditure and the housing market to manufacturing and investment expenditure.

2.3.5 The strong growth since 2012 has resulted in unemployment falling quickly over the last few years to a current level (September to November) of 5.1%, down from 5.8% a year earlier. The employment rate (age 16-64 years) is also now at a record 74%, up from 73% a year ago.

2.3.6 The Bank of England’s Monetary Policy Committee (MPC) has been particularly concerned that the squeeze on the disposable incomes of consumers should be reversed by wage inflation rising back above the level of CPI inflation in order to underpin a sustainable recovery. It has, therefore, been encouraging in 2015 to see wage inflation rising significantly above CPI inflation which has been around zero since February. However, despite current levels of growth in average earnings (1.9% at the beginning of Q4 2015), it is unlikely that the MPC would start raising rates until wage inflation was expected to consistently stay over 3%, as a labour productivity growth rate of around 2% would mean that net labour unit costs would still only be rising by about 1% y/y.

2.3.7 Key to MPC decision making is inflation. However the Bank of England’s November Inflation Report was notably subdued in its forecasts for inflation. CPI inflation was expected to struggle to get back up to the 2% target within the 2-3 year time horizon. The falls in oil, gas and food prices over late 2014 and the first half 2015 will fall out of the 12 month calculation of CPI, during late 2015 and early 2016. However a second, subsequent round of falls in fuel prices is now expected to delay a significant tick up in inflation from the current near zero rate.

2.3.8 CPI inflation in December 2015 was 0.2% (up from 0.1% in November) and is currently expected to get back to around 1% by the end of 2016. Thereafter the Bank of England expects CPI inflation to get back to near the 2% target in the second half of 2017 and above it in 2018. The increase in the forecast for inflation at the three year horizon is the biggest in a decade and at the two year horizon the biggest since February 2013. However the uncertainties which surround these projections means there is a downside skew to CPI inflation projections over course of the next two years. This could lead to inflation undershooting current forecasts.

2.3.9 In particular further falls in the price of oil and commodities imported from emerging countries in early 2016 (several of which have seen their currencies already fall by 20-30%, (or more), over the last year) could further delay the pick-up in inflation. These developments could in turn lead the Bank of England to lower the pace of increases in inflation in its February 2016 Inflation Report. On the other hand, the start of the national living wage in April 2016 (and further staged increases until 2020), will raise wage inflation; however, it could also result in a decrease in employment so the overall inflationary impact may be muted.

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2.3.10 There is, therefore, considerable uncertainty around how quickly pay and CPI inflation will rise in the next few years. This makes it difficult to forecast when the MPC will decide to make a start on increasing the Bank Rate. There are also concerns around the fact that the central banks of the UK and US currently have few monetary policy options left to them given that central rates are near to zero and huge QE is already in place. There is therefore a case for suggesting they need to raise rates sooner, rather than later, so as to have some options available for use if there was another major financial crisis in the near future. But it is unlikely that either would raise rates until they are sure that growth was securely embedded and ‘noflation’ was not a significant threat.

2.3.11 The forecast for the first increase in Bank Rate has, therefore, been pushed back progressively over the last year from Q4 2015 to Q4 2016. Increases thereafter are expected to be at a much slower pace and to much lower final levels than prevailed before 2008, as increases in Bank Rate will have a much bigger effect on heavily indebted consumers and householders than they did before 2008. There has also been an increase in momentum towards holding a referendum on membership of the EU in 2016, rather than in 2017, with Q3 2016 being the current front runner in terms of timing; this could impact on MPC considerations to hold off from a first increase until the uncertainty caused by it has passed. USA

2.3.12 GDP growth in 2014 of 2.4% was followed by first quarter 2015 growth, depressed by exceptionally bad winter weather, of only +0.6% (annualised). However, growth rebounded very strongly in Q2 to +3.9% (annualised) before falling back to 2.0% in Q3.

2.3.13 Until the turmoil in financial markets in August caused by fears about the slowdown in Chinese growth, it had been strongly expected that the Federal Reserve (the Fed) would increase rates in September. However, the Fed pulled back from that first increase in response to:  global risks which might depress US growth and put downward pressure on inflation, and  a 20% appreciation of the dollar which caused the Fed to lower its growth forecasts.

2.3.14 Although the non-farm payrolls figures for growth in employment in August and September were disappointingly weak, the October figure was extremely strong. Figures for November were also reasonably strong. This opened up the way for the Federal Reserve to embark on its first increase in rates of 0.25% at its December meeting. However, the accompanying message with this first increase was that further increases will be at a much slower rate and to a much lower ultimate ceiling, than in previous business cycles, mirroring comments by the Bank of England’s MPC.

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Eurozone

2.3.15 The Eurozone (EZ) continues to face the threats of weak or negative growth and from deflation. In response to these threats the European Central Bank (ECB) unleashed a massive €1.1 trillion programme of quantitative easing during 2015 to buy up high credit quality government debt of selected EZ countries. This programme of €60bn of monthly purchases started in March 2015 and was intended to run initially to September 2016. At the ECB’s December meeting, the current QE programme was subsequently extended to March 2017 although it was not increased in terms of the amount of monthly purchases. The ECB also cut its deposit facility rate by 10bps from -0.2% to -0.3%.

2.3.16 This programme of monetary easing appears to have had a limited positive effect in helping a recovery in consumer and business confidence and a start to an improvement in economic growth. GDP growth rose to +0.5% in Q1 2015 (1.3% y/y) but then eased to +0.4% (+1.6% y/y) in Q2 and +0.3% (+1.6% y/y) in Q3. Financial markets were disappointed by the ECB’s lack of more decisive action in December and it is likely that it will need to boost its QE programme if it is to succeed in significantly improving growth in the EZ and getting inflation up from the current level of around zero to its target of 2%.

2.3.17 During July, Greece finally capitulated to EU demands to implement a major programme of austerity and is now cooperating fully with EU demands. A €86bn third bailout package has since been agreed, though it did nothing to address the unsupportable size of total debt compared to GDP. However, huge damage has been done to the Greek banking system and economy by the resistance of the Syriza Government, elected in January, to EU demands.

2.3.18 The surprise general election in September gave the Syriza government a mandate to stay in power to implement austerity measures. However, there are major doubts as to whether the size of cuts and degree of reforms required can be fully implemented and so Greek exit from the euro may only have been delayed by this latest bailout.

2.3.19 In Portugal and Spain the general elections in September and December respectively have opened up new areas of political risk where the previous right wing reform-focused pro-austerity mainstream political parties have lost power. A left wing / communist coalition has taken power in Portugal. The general election in Spain produced a complex result where no combination of two main parties is able to form a coalition with a majority of seats. It is currently unresolved as to what administrations will result from both these situations. This has created nervousness in bond and equity markets for these countries which has the potential to spill over and impact on the whole Eurozone project.

China and Japan

2.3.20 Japan is causing considerable concern as the increase in sales tax in April 2014 suppressed consumer expenditure and growth. In Q2 2015 quarterly

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growth shrank by -0.2% after a short burst of strong growth of 1.1% during Q1 but then came back to +0.3% in Q3 after the first estimate had indicated that Japan had fallen back into recession. Japan has been hit hard by the downturn in China during 2015 and there are continuing concerns as to how effective efforts by the Abe government to stimulate growth and increase the rate of inflation from near zero, are likely to prove when it has already fired the first two of its ‘arrows’ of reform (quantitative easing by the Bank of Japan and fiscal stimulus) but has dithered about firing the third - deregulation of protected and inefficient areas of the economy.

2.3.21 In China, the Government has been very active during 2015 in implementing several stimulus measures to try to ensure the economy hits the growth target of about 7% for 2015. It has also sought to bring some stability after the major fall in the onshore Chinese stock market during the summer and then a second bout in January 2016. Many commentators are concerned that recent growth figures around that figure could have been massaged to hide a downturn to a lower growth figure.

2.3.22 There are also major concerns as to the creditworthiness of much of bank lending to corporates and local government during the post 2008 credit expansion period. Overall, China is still expected to achieve a growth figure that the EU would be envious of. Nevertheless, there are growing concerns about whether the Chinese economy could be heading for a hard landing and weak progress in rebalancing the economy from an over dependency on manufacturing and investment to consumer demand led services. There are also concerns over the volatility of the Chinese stock market, which was the precursor to falls in world financial markets in August and September and again in January 2016, which could lead to a flight to quality to bond markets. In addition, the international value of the Chinese currency has been on a steady trend of weakening and this will put further downward pressure on the currencies of emerging countries dependent for earnings on exports of their commodities.

Emerging countries

2.3.23 Considerable concerns exist about the vulnerability of some emerging countries and their corporates, who are getting caught in a perfect storm. Having borrowed massively in dollar and other western currency denominated debt since the financial crisis (as investors searched for yield by channelling investment cash away from western economies with dismal growth, depressed bond yields and near zero interest rates into emerging countries) there is now a strong flow back to those western economies with strong growth and a path of rising interest rates and bond yields.

2.3.24 This change in investors’ strategy and the massive reverse cash flow, has depressed the currencies of emerging countries. Expectations over central interest rate increases in the US have also contributed to a significant appreciation of the dollar against these currencies. In turn, this has made it much more costly for emerging countries to service their dollar denominated debt at a time when their earnings from commodities are depressed by a simultaneous downturn in demand for their exports and deterioration in the

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value of their currencies. There are also likely to be major issues when previously borrowed debt comes to maturity and requires refinancing at much more expensive rates.

2.3.25 Corporates (worldwide) heavily involved in mineral extraction and / or the commodities market may also be at risk and this could also cause volatility in equities and safe haven flows to bonds. Financial markets may also be buffeted by the sovereign wealth funds of those countries that are highly exposed to falls in commodity prices and which, therefore, may have to liquidate investments in order to cover national budget deficits.

2.4 Prospects for interest rates

2.4.1 The Council has appointed Capita Asset Services as its treasury advisor. Part of their service is to assist the Council to formulate a view on interest rates. Capita Asset Services undertook its latest review of interest rate forecasts in January 2016. It updates the forecast issued shortly after publication of the Bank of England’s quarterly Inflation Report in November 2015 to reflect the downbeat UK and global economic news of recent weeks and the extreme volatility in financial markets. This latest forecast also follows comments made by the Governor of the Bank of England in January 2016 that rule out an increase in the bank rate in the very near future.

2.4.2 This latest forecast includes a first increase in the Bank Rate in quarter 4 of 2016, (compared to quarter 2 in the previous forecast) together with a trend of rising PWLB borrowing rates over the forecast period.

Table 2: Forecast interest rates 2016-2019 Quarter ending Bank Rate PWLB Borrowing Rates1 % 5 year % 10 year % 25 year % 50 year % Jan 2016 (28/1/16) 0.50 1.86 2.52 3.25 3.05 Mar 2016 0.50 2.00 2.60 3.40 3.20 Jun 2016 0.50 2.10 2.70 3.40 3.20 Sep 2016 0.50 2.20 2.80 3.50 3.30 Dec 2016 0.75 2.30 2.90 3.60 3.40 Mar 2017 0.75 2.40 3.00 3.70 3.50 Jun 2017 1.00 2.50 3.10 3.70 3.60 Sep 2017 1.00 2.60 3.20 3.80 3.70 Dec 2017 1.25 2.70 3.30 3.90 3.80 Mar 2018 1.25 2.80 3.40 4.00 3.90 Jun 2018 1.50 2.90 3.50 4.00 3.90 Sept 2018 1.50 3.00 3.60 4.10 4.00 Dec 2018 1.75 3.10 3.60 4.10 4.00 Mar 2019 1.75 3.20 3.70 4.10 4.00 1Certainty rates are calculated by subtracting 0.2% from the standard new loan rates. Certainty rates apply to authorities who provided DCLG with required information on their plans for long-term borrowing and associated capital spending.

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2.4.3 Economic forecasting remains difficult with so many external influences weighing on the UK. As a consequence the Bank Rate forecasts, (and also MPC decisions), will be liable to further amendment depending on how economic data evolves over time. The overall balance of risks to economic recovery in the UK is currently to the downside and only time will tell just how long the current period of reasonably strong economic growth will continue. The UK economy also remains exposed to vulnerabilities in a number of key areas.

2.4.4 The overall balance of risks to the current Bank Rate forecast is probably to the downside, i.e. the first increase, and subsequent increases, may be delayed further if recovery in GDP growth, and forecasts for inflation increases, are lower than currently expected. Market expectations in January 2016, (based on short sterling), for the first Bank Rate increase, are currently around quarter 1 2017.

2.4.5 Whilst there are no magic thresholds the governor of the Bank of England has previously set out three criteria that need to be met in order to warrant an increase in the bank rate. These criteria are patently not being met at the current time: i) Quarter-on-quarter GDP growth is above 0.6%. i.e. growth momentum is consistent with eliminating spare capacity in the economy. This condition was met in Q2 2015, but Q3 came up short and Q4 looks likely to also fall short. ii) Core inflation (stripping out volatile components) registers a concerted increase towards the MPC’s 2% target. This measure was on a steadily decreasing trend since mid-2014 until November 2015 (1.2%). December 2015 saw a slight increase to 1.4%. iii) Unit wage costs are on a significant increasing trend. This would imply that spare capacity for increases in employment and productivity gains are being exhausted and that further economic growth will fuel inflationary pressures.

2.4.6 In line with the base rate forecasts investment returns are likely to remain relatively low during 2016/17 and beyond. There will also remain a cost of carry to any new borrowing which causes an increase in investments as this will incur a revenue loss as a consequence of the differential between borrowing costs and investment returns.

2.4.7 Gilt yields have remained at historically low levels during 2015. However there remains much volatility in rates and bond yields as alternating bouts of good and bad news have promoted optimism and then pessimism in financial markets. This volatility in bond yields - strongly correlated to emerging market, geopolitical and sovereign debt crisis developments - is likely to endure throughout 2016/17 as investor fears and confidence ebbs and flows between favouring more risky assets i.e. equities, or the safe haven of bonds.

2.4.8 The overall trend in the longer term will be for gilt yields and PWLB rates to rise when economic recovery is firmly established accompanied by rising inflation and consequent increases in Bank Rate and the eventual unwinding

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of QE. At some point increasing investor confidence in eventual world economic recovery is also likely to compound this effect as recovery will encourage investors to switch from bonds to equities.

2.4.9 The PWLB rate forecasts included in table 2 are based around a balance of risks. However, there are a number potential upside and downside risks to UK gilt yields and PWLB rates, especially for longer term PWLB rates.

2.4.10 Downside risks to current forecasts for UK gilt yields and PWLB rates currently include:  geopolitical risks in Eastern Europe, the Middle East and Asia, increasing safe haven flows  UK economic growth and increases in inflation turning weaker than currently anticipated  weak growth or recession in the UK’s main trading partners - the EU and US  a resurgence of the Eurozone sovereign debt crisis  recapitalisation of European banks requiring more government financial support  emerging country economies, currencies and corporates destabilised by falling commodity prices and / or Federal Reserve Funds Rate increases causing a flight to safe havens (bonds)  monetary policy action failing to stimulate sustainable growth and combat the threat of deflation in western economies, especially the Eurozone and Japan.

2.4.11 The potential for upside risks to current forecasts for UK gilt yields and PWLB rates, especially for longer term PWLB rates, include: -  uncertainty around the risk of a UK exit from the EU  the pace and timing of increases in the US Federal Funds Rate causing a fundamental reassessment by investors of the relative risks of holding bonds as opposed to equities and leading to a major flight from bonds to equities  UK inflation returning to significantly higher levels than in the wider EU and US, causing an increase in the inflation premium inherent to gilt yields.

2.5 Borrowing strategy

2.5.1 The Council is currently maintaining an under-borrowed position (see table 1). This means that the capital borrowing need (the Capital Financing Requirement - CFR), has not been fully funded with loan debt. By utilising cash from reserves, revenue balances and favourable cashflow the Council has been able to avoid the need to borrow up to the level of the CFR. This has allowed the Council to minimise borrowing costs and reduce treasury risk by reducing its external investment balances. This strategy is prudent as investment returns are low and counterparty risk is relatively high. The

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Council will continue with this policy during 2016/17 to the extent permitted by its forecast liquidity requirements and the management of its interest rate exposures.

2.5.2 Against this background and the risks within the economic forecast, caution will be adopted with the 2016/17 treasury operations. Treasury staff will monitor interest rates in financial markets and adopt a pragmatic approach to changing circumstances:  if it was felt that there was a significant risk of a sharp fall in long and short-term rates (e.g. due to a marked increase of risks around relapse into recession or of risks of deflation), then long-term borrowings will be postponed, and potential rescheduling from fixed rate funding into short term borrowing will be considered.  if it was felt that there was a significant risk of a much sharper rise in long and short-term rates than that currently forecast, (e.g. due to a greater than expected increase in world economic activity or a sudden increase in inflation risks), then the portfolio position will be re- appraised with the likely action that fixed rate funding will be drawn whilst interest rates are still lower than they will be in the next few years.

2.5.3 Any decisions taken in this regard will be reported to members at the next available opportunity.

2.6 Policy on borrowing in advance of need

2.6.1 The Local Government Act 2003 allows local authorities to borrow or invest for ‘‘any purpose relevant to its functions, under any enactment’’, or “for the purpose of the prudent management of its financial affairs. This allows the temporary investment of funds borrowed for the purposes of expenditure in the near future. However, the speculative procedure of borrowing purely or explicitly for the purpose of re-investment remains unlawful.

2.6.2 The Council will not borrow more than, or in advance of, its needs purely in order to profit from the investment of the extra sums borrowed. Any decision to borrow in advance will be within forward approved Capital Financing Requirement estimates and will be considered carefully to ensure that value for money can be demonstrated and that the Council can ensure the security of such funds.

2.6.3 Risks associated with any borrowing in advance activity will be subject to prior appraisal and subsequent reporting through the mid-year or annual reporting mechanism.

2.7 Debt rescheduling

2.7.1 Debt rescheduling includes the premature repayment of loans and the replacement of existing loans with new loans on different terms (repayment method, loan period, interest rate). The reasons for rescheduling include:

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 aligning long-term cash flow projections and debt levels in order redistribute the burden of debt financing costs between years of account  generating savings in risk adjusted interest costs  rebalancing the interest rate structure of the debt portfolio to reduce exposures to interest rate risk  changing the size and/or maturity profile of the debt portfolio to reduce refinancing risk exposures and/or align the debt maturity profile with the underlying need to borrow for capital purposes (the capital financing requirement).

2.7.2 As short-term borrowing rates will be considerably cheaper than longer term fixed interest rates, there may be potential opportunities to generate savings by switching from long-term debt to short-term debt. However, these savings will need to be considered in the light of the current treasury position and the size of the cost of debt repayment (premiums incurred).

2.7.3 Consideration will also be given to identifying if there is any residual potential for making savings by running down investment balances to repay debt prematurely as short-term rates on investments are likely to be lower than rates paid on current debt.

2.7.4 The economic environment and consequent structure of interest rates has limited the Council’s rescheduling opportunities during recent years. The Council will however continue to monitor interest rate structures for opportunities to reschedule debt in order to generate savings and/or rebalance risks within the loan portfolio. All rescheduling will be reported to the Audit Committee and Full Council at the earliest meeting following its action.

2.8 Policy on the use of derivatives

2.8.1 The Council will only use derivatives for the management of risk and for the prudent management of its financial affairs. Transactions involving standalone derivative products such as forward rate agreements, interest rate swaps and options (interest rate caps, floors and collars) require authorisation by the Head of Financial Services and will only be entered into:  after seeking proper advice to ensure the product is fully understood including how underlying risks are affected and the additional risks that may result from its use (for example credit exposure to derivative counterparties)  after seeking confirmation that the Council has legal power to enter into the transaction  where use of the product can be shown to reduce the overall level of financial risks the Council is exposed to (after taking into consideration additional risks that may result from use of the derivative instrument)  after ensuring treasury staff have received training to ensure competent use of the product.

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2.8.2 Financial derivative transactions may be arranged with any organisation that meets the approved investment criteria outlined in section 3 below. The current value of any amount due from a derivative counterparty will count against the counterparty limits set out in paragraph 3.5.1.

2.9 Training

2.9.1 CIPFA’s Treasury Management Code of Practice and Cross-Sectoral Guidance Notes require the responsible officer (the Head of Financial Services) to ensure that:  all staff involved in the treasury management function are fully equipped to undertake the duties and responsibilities allocated to them  members tasked with treasury management responsibilities, including those responsible for scrutiny, have access to training relevant to their needs and those responsibilities.

2.9.2 In complying with these requirements the Council regularly reviews the training needs of officers and members and training will be arranged as required to ensure that officers and members have the requisite skills and knowledge.

2.10 Treasury management consultants

2.10.1 The Council currently uses Capita Asset Services, Treasury Solutions (Capita) as its external treasury management advisors. They provide a range of services to the Council including:  technical support on treasury matters and capital finance issues  economic and interest rate analysis  debt services including advice on the timing of borrowing  debt rescheduling advice  generic investment advice on interest rates, timing and investment instruments  credit ratings and creditworthiness information.

2.10.2 The Council recognises that responsibility for treasury management decisions remains with the organisation at all times and will ensure that undue reliance is not placed upon our external service providers. It also recognises that there is value in employing external providers of treasury management services in order to acquire access to specialist skills and resources. The Council will ensure that the terms of their appointment and the methods by which their value will be assessed are properly agreed and documented, and subjected to regular review.

2.10.3 Capita Asset Services were appointed in 2013 for the three year period 2013- 2016. An exercise for the procurement treasury advisory services for the three year period 2016-2019 will be completed during 2016. Any changes to the arrangements and methodologies described in this document following

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completion of this exercise will be reported to members at the earliest available opportunity thereafter.

3. Annual Investment Strategy

3.1 Investment policy - objectives

3.1.1 The Council’s investment policy has regard to the CLG’s Guidance on Local Government Investments (‘CLG Investment Guidance’) and CIPFA’s Treasury Management in the Public Services: Code of Practice and Cross- Sectoral Guidance Notes 2011Edition (‘the Treasury Management Code’).

3.1.2 Accordingly, the Council’s primary policy objective in relation to its investment activity is to ensure the security of principal sums invested in priority to liquidity (second) and yield (third). The Council will aim to achieve the optimum return on its investments commensurate with the proper levels of security and liquidity. However, yield will only determine investment decisions when deciding between two or more investments satisfying security and liquidity objectives.

3.2 Creditworthiness policy (credit risk management) 3.2.1 Ensuring the security of principal sums invested is achieved through active management of the Council’s credit risk exposures. This includes placing restrictions and limits on:  the counterparties with whom investments may be placed based on the creditworthiness of the counterparty (section 3.3)  the types of investment instruments that may be used (section 3.4)  the amount invested with any single institution or group of institutions on the Council’s list of approved counterparties (section 3.5)  the duration of individual investment instruments depending on the financial standing (creditworthiness) of the counterparty (section 3.6).

3.3 Approved investment counterparties

3.3.1 Counterparties with whom investments may be placed are restricted to financial institutions and other bodies of high credit quality. High credit quality financial institutions and other bodies are defined by the Council as those with a minimum long-term rating across all three of the main credit ratings agencies (Fitch, Moody’s and Standard & Poor’s) of A- or equivalent (AA+ or equivalent for non-UK sovereigns).

3.3.2 The minimum rating criteria applied by the Council uses the lowest common denominator method of selecting counterparties and applying limits. This means the Council’s minimum criteria will apply to the lowest available rating for any institution. For example, if an institution is rated by two agencies, one rating meets the Council’s criteria, the other does not, the institution will fall

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outside the lending criteria and will be excluded from the list of approved counterparties.

3.3.3 Whilst credit ratings remain a key source of information they are not the sole determinant of the Council’s assessment of the credit quality of potential counterparties. Before making investment decisions reference will also be made to:  ratings outlooks (indicating the likely direction of an issuer's rating over the medium term)  credit watches and watchlists (indicating that downgrading or upgrading of the credit rating could be imminent)  sovereign ratings and support mechanisms  credit default swap (CDS) spreads (indicating perceived market sentiment regarding the credit risk associated with a particular institution and an early warning of potential creditworthiness problems which may only belatedly lead to actual changes in credit ratings).

3.3.4 This information is fully integrated into the creditworthiness methodology used by Capita Asset Services to produce its colour coded ratings assessment to indicate the relative creditworthiness of potential counterparties. This rating information is used by the Council to determine the maximum duration of individual investment instruments (see section 3.6).

3.3.5 Other information sources used to assess the suitability of potential investment counterparties include the financial press, share price and other information pertaining to the banking sector and the economic and political environments in which these institutions operate. Regardless of the credit rating assigned to an institution if this additional information casts doubt over its financial standing then that institution will be removed immediately from the Council’s counterparty lending list.

3.3.6 Credit ratings and creditworthiness information is supplied to the Council by Capita Asset Services and monitored weekly. The Council is also alerted by e-mail when there is an amendment by any of the agencies to the credit rating of an institution. If as a result of downgrade a counterparty no longer meets the Council’s minimum credit ratings criteria it will be removed immediately from the Council’s counterparty (dealing) list. Notification of rating changes, rating watches and rating outlooks is provided to officers almost immediately after they occur and this information is considered before dealing. For instance, a negative rating watch applying to a counterparty, currently at the minimum Council criteria, will result in the counterparty being suspended from use, with all others being reviewed in light of market conditions. Capita Asset Services also provide the Council with information relating to movements in credit default swap spreads against the iTraxx benchmark and other market data on a weekly basis. Extreme market movements may result in downgrade of an institution or removal from the Council’s lending list.

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3.4 Approved instruments

3.4.1 The types of investment instruments that may be used by the Council - subject to the counterparty and maturity limits set out in sections 3.5 and 3.6 - are shown in table 3. Permitted instruments are categorised as either “Specified” or “Non-Specified” investments - as defined in CLGs Investment Guidance - to distinguish those (specified) investment instruments offering relatively high security and high liquidity from those with higher credit risk (non-specified investments). All investments will be in sterling.

Table 3: Permitted investment instruments - specified & non-specified Non- Investment Specified Specified

Term deposits, call and notice accounts with banks &   building societies Term deposits with UK local authorities   Certificates of deposit with banks & building societies   Gilts issued by the UK Debt Management Office (DMO)   Treasury Bills (T-bills) issued by the UK DMO  Bonds issued by Multilateral Development Banks   Local Authority Bills   Commercial Paper   Corporate Bonds  

AAA rated Money Market Funds (with a 60-day   Weighted Average Maturity (WAM)) Other Money Market & Collective Investment Schemes   Debt Management Account Deposit Facility   Equity investments with other organisations 

3.4.2 A specified investment - offering high security and high liquidity - is defined as an investment that is: (a) denominated in sterling with any payments or repayments payable only in sterling (b) not a long-term investment (i.e. is repayable within 12 months of acquisition) (c) not defined as capital expenditure under regulations (i.e. acquisition of share capital) (d) made with a body or in an investment scheme of high credit quality (as defined by the Council in paragraph 3.3.1) or with the UK Government, a local authority or a parish council or community council.

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3.4.3 Non-specified investments refer to any investments not meeting the definition of ‘specified investments’. The Council currently holds a limited quantity of non-specified investments (unquoted equity shares). These account for less than 1% of the Council’s investment portfolio. No additional non-specified investments are planned during 2016/17 and all new investments made in 2016/17 will be subject to a maximum maturity of 364 days.

3.4.4 Non-specified investment will only be made with prior approval by the Head of Financial Services and will only be undertaken:  following external credit assessment and due diligence to assess the financial strength and creditworthiness of the counterparty, and  after taking such professional advice as is considered necessary to inform the decision to invest.

3.4.5 In the event that the credit rating of the Council’s banker fails below the minimum credit criteria referred to above, the Council will continue to use the bank for transactional purposes but will seek to minimise balances as far as is possible.

3.5 Limits on principal sums invested

3.5.1 With the exception of funds placed with HM Treasury’s Debt Management Office (DMO) the maximum amount that may be placed with any institution or group of institutions that are part of the same banking group is £4 million. For funds placed with the DMO’s Account Deposit Facility the limit is £12m (subject to maximum maturity of 3 weeks for all sums in excess of £4m).

3.6 Limits on investment maturities

3.6.1 To ensure that access to cash to meet forecast liquidity is not impaired, decisions regarding the maturity of investments instruments must be taken having regard to cash flow requirements. The maturity of investment instruments is also subject to the maximum maturity periods set out below (table 4). These are established to ensure that access to cash is not unduly restricted and to reduce the risk of being locked into an investment whilst the creditworthiness of the counterparty is deteriorating.

3.6.2 The maximum period for which funds may prudently be committed by the Council is determined using the Creditworthiness service provided by Capita Asset Services. This combines credit ratings information provided by the three main credit rating agencies - Fitch, Moody’s and Standard & Poor’s - with ratings outlooks, credit watches and sovereign ratings in a weighted scoring system. This is combined with an overlay of credit default swap (CDS) spreads to produce a colour rating to indicate the relative creditworthiness of the counterparty. These colour codes are used to determine the maximum duration for investments made with individual counterparties.

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3.6.3 In the current economic climate it is considered appropriate to keep investment terms short to cover cash flow needs, but also to seek out value available in periods of up to 12 months with high credit quality institutions using Capita’s creditworthiness approach. Using this approach the Council will use the following duration bands - shown in table 4 - subject to a maximum maturity of 364 days (from the date of acquisition).

Table 4: Upper limits on investment maturities

Colour rating Maximum duration (term to maturity) Yellow 5 years- restricted to 12 months (see paragraph 3.6.3) Purple 2 years - restricted to 12 months (see paragraph 3.6.3) Orange 12 months Red 6 months Green 100 days No colour 0 months (counterparty not to be used)

3.7 Changes to credit rating methodology

3.7.1 The main rating agencies (Fitch, Moody’s and Standard & Poor’s) have, through much of the financial crisis, provided some institutions with a ratings “uplift” to reflect implied levels of sovereign support. Commencing in 2015, in response to the evolving regulatory regime - designed to see greater stability, lower risk and the removal of expectations of government financial support should an institution fail - all three agencies have begun removing these “uplifts” with the timing of the process determined by regulatory progress at the national level.

3.7.2 The process has been part of a wider reassessment of methodologies by each of the rating agencies. In addition to the removal of implied support, new methodologies are now taking into account additional factors, such as regulatory capital levels. In some cases, these factors have “netted” each other off, to leave underlying ratings either unchanged or little changed. A consequence of these new methodologies is that they have also lowered the importance of the (Fitch) Support and Viability ratings and have seen the (Moody’s) Financial Strength rating withdrawn by the agency.

3.7.3 As a consequence the agencies’ new methodologies the rating element of the colour coded credit assessment provided by Capita Asset Services no longer incorporates Viability, Financial Strength and Support Ratings and instead focus solely on the short and long-term ratings of an institution supplemented with overlays for credit watches, credit outlooks and CDS spreads. While this is the same process that has always been used for Standard & Poor’s, this has been a change in the use of Fitch and Moody’s ratings. The assessment of Rating Watch and Outlook information as well as the Credit Default Swap (CDS) overlay remains unchanged.

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3.7.4 These rating agency changes do not reflect any changes in the underlying status or credit quality of the institution. They are merely reflective of a reassessment of rating agency methodologies in light of enacted and future expected changes to the regulatory environment in which financial institutions operate.

3.7.5 While some banks have received lower credit ratings as a result of these changes, this does not mean that they are suddenly less creditworthy than they were formerly. Rather, in the majority of cases, this mainly reflects the fact that implied sovereign government support has effectively been withdrawn from banks. They are now expected to have sufficiently strong balance sheets to be able to withstand foreseeable adverse financial circumstances without government support. In fact, in many cases, the balance sheets of banks are now much more robust than they were before the 2008 financial crisis when they had higher ratings than now. However, this is not universally applicable, leaving some entities with modestly lower ratings than they had through much of the “support” phase of the financial crisis.

3.8 Reporting arrangements

3.8.1 The Treasury Management and Prudential Codes require the Council to report regularly on its treasury management activities including its performance against all forward-looking prudential and treasury management indicators set out in section 5 below. In meeting the recommended reporting requirements of the Treasury Management Code (outlined in section 1.2 above) the Head of Financial Services will, in addition to this report, submit to the Audit Committee and Full Council:  a mid-year review of the Council’s treasury management activities covering the six months to 30th September 2016, and  an annual treasury report after the year-end.

The annual report will be submitted as soon as reasonably practicable after the end of the financial year, but in any case no later than 30th September 2017.

3.8.2 A summary of treasury management activities will also be included in the quarterly finance reports submitted to the Council’s Executive.

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4. Minimum revenue provision (MRP) policy statement

4.1 Regulation 27 of the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (‘the 2003 Regulations’) requires local authorities to ‘charge to a revenue account a minimum revenue provision (MRP) for that year’. The minimum revenue provision is an annual amount required to be set aside from the General Fund to meet the capital cost of expenditure funded by borrowing or credit arrangements, that is, capital expenditure not financed from grants, revenue contributions or capital receipts.

4.2 Regulation 27 also allows authorities to charge to a revenue account any amount, in addition to the MRP, in respect of the financing of capital expenditure incurred in the current financial year or any financial year before the current year (voluntary revenue provision - VRP).

4.3 The calculation of MRP is covered in regulation 28 of the 2003 Regulations. From 31 March 2008, Regulation 28, as amended by Regulation 4(1) of the Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2008 (‘the 2008 Regulations’), requires each authority to: 'determine for the current financial year an amount of minimum revenue provision which it considers to be prudent.’

4.4 The 2003 Regulations (as amended) are accompanied by statutory guidance on minimum revenue provision, issued by CLG under section 21(1A) of the Local Government Act 2003 (‘the 2003 Act’). In meeting the requirement to ‘make prudent provision’, the 2003 Act requires local authorities to ‘have regard to’ this guidance. This means that an authority must consider what the statutory guidance says. It does not mean that a local authority is obligated to follow the guidance. However, if an authority does decide to depart from the guidance, it must be able to show good reasons for doing so.

4.5 The current version of regulation 28 was implemented by the 2008 regulations. It came into force on 31 March 2008 and, along with the statutory guidance issued by CLG, is effective for 2007/08 and later years. Before this change regulation 28 set out detailed formula - based on an authority’s capital financing requirement - which authorities were required to follow when calculating MRP.

4.6 Neither the 2003 Regulations nor the statutory guidance define the term “prudent provision”. The statutory guidance does however establish the broad aim of making prudent provision, which is to ensure that debt is repaid over a period:  commensurate with the period over which the capital expenditure provides benefits, or  for borrowing supported by central government funding (RSG), over the period implicit in the determination of that funding.

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4.7 The CLG guidance outlines four possible ‘options’ as methods of calculating a prudent amount of MRP. However approaches other than the four listed in the guidance are not ruled out provided they are consistent with the statutory duty to make a prudent provision. This provides authorities with wide discretion in determining MRP. The statutory guidance also includes specific recommendations on the calculation of MRP in respect of finance leases and on-balance PFI contracts.

4.8 The four options for calculating MRP outlined in the CLG guidance, and restrictions on their use, are summarised in table 5.

Table 5: Options for prudent provision of MRP Option Method of calculation Applicability and limits on use ‘Option 1 Apply the statutory Available for: Regulatory formula set out in the . All capital expenditure incurred before method’ 2003 Regulations (as 1 April 2008. amended) before it was . Supported capital expenditure for revoked by the 2008 RSG purposes incurred on or after 1 Regulations April 2008. ‘Option 2 Multiply the (non- Available for: CFR housing) Capital . All capital expenditure incurred before method’ Financing Requirement 1 April 2008. at the end of the . Supported capital expenditure for preceding financial year RSG purposes incurred on or after 1 by 4%. April 2008. ‘Option 3 Amortise expenditure Must be used for capital expenditure Asset life financed by borrowing incurred on or after 1 April 2008 that falls method’ or credit arrangement outside supported capital expenditure for over the estimated RSG purposes (unsupported capital useful life of the expenditure). This includes all relevant assets using expenditure capitalised under either the equal regulations or direction on or after 1 April instalment or annuity 2008 falling outside the scope of ‘Option method. 1’. May be used in relation to any capital expenditure whether or not supported and whenever incurred. ‘Option 4 Charge MRP to revenue Must be used for capital expenditure Depreciation based on proper incurred on or after 1 April 2008 that falls method’ accounting practices for outside supported capital expenditure for depreciation as they RSG purposed (unsupported capital apply to the relevant expenditure). assets. May be used in relation to any capital expenditure whether or not supported and whenever incurred.

4.9 Where capital expenditure on an asset is financed wholly or partly by borrowing or credit arrangements, authorities applying ‘Option 3’ should calculate MRP by reference to the life of the asset. Two main variants of this option exist: (i) the equal instalment method and (ii) the annuity method.

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4.10 Both variations allow authorities to make additional voluntary revenue provision (VRP), in which case they may make an appropriate reduction in later years’ levels of MRP. Where an authority uses Options 3 or 4, the CFR for the purposes of Options 1 and 2 is reduced by the amount of the relevant expenditure and cumulative provision for MRP made under Options 3 and 4.

Policy adopted for 2016/17

4.11 Having regard to the statutory guidance on minimum revenue provision issued by CLG and the ‘options’ for calculating MRP set out in that guidance the Council will calculate MRP:  for all capital expenditure funded from borrowing incurred before 1 April 2008 and for all supported capital expenditure funded from borrowing incurred on or after 1 April 2008, based on 4% of the non- housing Capital Financing Requirement at the end of the preceding financial year (Option 2- CFR method)  for unsupported capital funded from borrowing expenditure incurred after 1 April 2008 by applying Option 3 - Asset life method - using either the equal instalments or annuity method

 for credit arrangements such as such as on balance sheet leasing arrangements (finance leases) by charging an amount (MRP) equal to the element of the rent/charge that goes to write down the balance sheet liability.

4.12 In applying ‘Option 3’:  MRP should normally begin in the financial year following the one in which the expenditure was incurred. However, in accordance with the statutory guidance, commencement of MRP may be deferred until the financial year following the one in which the asset becomes operational.  The estimated life of the asset should be determined in the year that MRP commences and not subsequently be revised.  If no life can reasonably be attributed to an asset, such as freehold land, the life should be taken to be a maximum of 50 years. However, for freehold land on which a building or other structure is constructed, the life of the land may be treated as equal to that of the structure, where this would exceed 50 years.  For expenditure capitalised by virtue of a capitalisation direction or regulation 25(1) of the 2003 regulations, the ‘asset’ life should equate to the value set out in paragraph 24 of the statutory guidance.

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5. Prudential and treasury indicators 2016/17 – 2018/19

5.1 Indicators required by the Prudential Code 5.1.1 The Prudential Code requires local authorities to self-regulate the affordability, prudence and sustainability of their capital expenditure and borrowing plans, by setting estimates and limits, and by publishing actuals for a range of prudential indicators. It also requires them to ensure their treasury management practices are carried out in accordance with good professional practice.

5.1.2 The prudential and treasury indicators required by the Prudential Code, the Treasury Management Code and accompanying sector guidance issued by CIPFA are designed to support and record local decision making. They are not designed to be comparative performance indicators and should not be used for this purpose. The prudential and treasury indicators for the forthcoming and following years must be set before the beginning of the forthcoming year. They may be revised at any time, following due process, and must be reviewed, and revised if appropriate, for the current year when the prudential indicators are set for the following year.

Estimates of capital expenditure 5.1.3 The estimate of capital expenditure indicator summarises the Council’s capital expenditure plans for the forthcoming year and the following two financial years. Estimates of capital expenditure include both those agreed previously and those forming part of the current (2016/17) budget cycle.

5.1.4 Capital expenditure is defined as in section 16 of the Local Government Act 2003 and includes all expenditure that falls to be capitalised in accordance with proper practices together with any items capitalised in accordance with regulation 25 of the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (as amended), or by virtue of a capitalisation direction issued under section 16(2) of the 2003 Act. Estimates of capital expenditure include any capital expenditure that it is estimated might (depending on option appraisals) or will be dealt with as other long-term liabilities.

Table 6: Capital expenditure Planned expenditure 2015/16 2015/16 2016/17 2017/18 2018/19 Approved1 Revised2 Estimate Estimate Estimate £000 £000 £000 £000 £000 Approved in 2015/16 9,956 13,396 103 0 0 (& prior years) Approved/planned 3,162 1,650 1,650 2016/17 - 2018/19 Total expenditure 9,956 13,396 3,265 1,650 1,650 1 Approved capital programme for 2015/16; 2 Updated to reflect revised carry forward of budget from 2014/15 and additional capital bids included in the revised capital budget for 2015/16.

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5.1.5 Table 7 shows how these capital expenditure plans will be financed through the application of capital and revenue resources. Any excess of capital expenditure over resources applied (unfinanced expenditure) will result in a corresponding increase in the underlying need for borrowing (the capital financing requirement).

Table 7: Financing of capital expenditure 2015/2016 Estimate Approved Revised 2016/17 2017/18 2018/19 £000 £000 £000 £000 £000 Total expenditure 9,956 13,396 3,265 1,650 1,650 Expenditure financed by: Capital receipts 60 343 97 0 0 Capital grants 2,472 3,940 600 600 550 Revenue/Reserves 1,853 2,884 650 0 0 Total financed 4,385 7,167 1,347 600 550 Unfinanced expenditure: 0 6,229 1,918 1,050 1,100 Supported borrowing1 0 0 Unsupported borrowing 5,571 6,229 1,918 1,050 1,100 Financed & unfinanced 9,956 13,396 3,265 1,650 1,650 1 Following the Spending Review 2010 there have been no new supported borrowing allocations since 2010/11 (although the level of assumed outstanding debt is still included in the calculation of formula grant allocations). This form of financial support has been discontinued from 2011/12.

Estimates of Capital Financing Requirement

5.1.6 The Capital Financing Requirement (CFR) is a measure of an authority’s underlying need to borrow for capital purposes. It represents the historic cost of capital expenditure that has yet to be financed by setting aside resources (grants, contributions, capital receipts or direct revenue financing). It does not necessarily correspond with an authority’s actual borrowing position. The level of external debt will be determined in accordance with an authority’s treasury management strategy and practices and authorities should not associate borrowing with particular items of expenditure unless required to do so under statute.

5.1.7 Capital expenditure that is not financed up-front through the application of capital grants, contributions, capital receipts or a direct charge to revenue will increase the Capital Financing Requirement. Charging the minimum revenue provision or a voluntary revenue provision against the general fund will reduce the CFR. The CFR includes items of capital expenditure included in the Council’s balance sheet associated with other long term liabilities, such as assets held on finance leases, but excluding the underlying liability.

5.1.8 Table 8 sets out estimates of the Council’s capital financing requirement at the end of 2016/17 and the following two financial years.

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Table 8: Capital financing requirement 2015/16 Estimate Approved Revised 2016/17 2017/18 2018/19 £000 £000 £000 £000 £000 CFR at 1 April 14,013 13,355 19,078 20,587 20,964 CFR at 31 March 19,078 19,078 20,587 20,964 21,337 Movement in CFR 5,065 5,723 1,509 377 373 Represented by: Unfinanced expenditure 5,571 6,229 1,918 1,050 1,100 Less MRP/VRP (506) (506) (409) (673) (727) Movement in CFR 5,065 5,723 1,509 377 373

Gross debt and the capital financing requirement (CFR)

5.1.9 A fundamental provision of the Prudential Code, and a key indicator of prudence, is that over the medium term debt will only be for a capital purpose. To ensure this is the case the Prudential Code requires that gross external debt should not, except in the short term, exceed the total of capital financing requirement in the preceding year plus the estimates of any additional capital financing requirement for the current and next two financial years.

5.1.10 This requirement allows some flexibility for limited early borrowing for future years but ensures that borrowing is not undertaken for revenue purposes. If in any of these years there is a reduction in the CFR, this reduction is ignored in estimating the cumulative increase in the CFR used for comparison with gross external debt. Gross debt refers to the sum of borrowing and other long-term liabilities (credit arrangements).

Table 9: Gross debt & the CFR 2016/17 Limit 2016/17 £000 £000 Forecast CFR at 31 March 2016 19,078 Estimated additional CFR for: 2016/17 (see table 8) 1,509 2017/18 (see table 8) 377 2018/19 (see table 8) 373 2,259 Limit 21,337 Gross Debt 2016/17 (maximum) Estimated gross debt at 31March 2016 - existing borrowing 9,922 Estimated (maximum) net additional borrowing - 2015/16 6,000 Estimated (maximum) net additional borrowing - 2016/17 1,900 Estimated gross debt 2016/17 17,822 Excess of CFR over gross debt 3,515

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5.1.11 At 31st December 2015 the Council was under-borrowed against its capital financing requirement by approximately £4.1m. The Council does not anticpate any difficulties in complying with this indicator during 2016/17 or the following two financial years.

Authorised limit for external debt

5.1.12 The Authorised Borrowing Limit represents the statutory limit on borrowing determined under section 3 of the Local Government Act 2003 (Affordable Limit). It imposes an upper limit on the Council’s gross external debt (excluding investments), separately identifying borrowing (external loans) from other long-term liabilities (for example finance lease liabilities). Breach of the Affordable Borrowing Limit is prohibited by section 2(1)(a) of the Local Government Act 2003.

5.1.13 The Authorised Borrowing Limit is set with reference to the Council’s capital expenditure plans, capital financing requirement (or underlying borrowing requirement) and the potential need to borrow to meet temporary revenue borrowing requirements pending the receipt of amounts due to the Council. The Affordable Borrowing Limit also includes headroom over and above the Operational Boundary (see below) to accommodate any unusual or unforeseen cash movements. The indicator separately identifies limits for borrowing and other long-term liabilities.

Table 10: Authorised Limit for External Debt 2015/16 2016/17 2017/18 2018/19 Limit Limit Limit Limit £000 £000 £000 £000 Borrowing 23,000 25,000 25,000 25,000 Other long-term liabilities 0 0 0 0 Total 23,000 25,000 25,000 25,000

Operational boundary for external debt

5.1.14 The Operational Boundary represents the limit beyond which (gross) external debt is not expected to exceed. It is based on expectations of the maximum external debt of a local authority according to probable events (that is the most likely (prudent) but not worst case scenario) and is consistent with the maximum level of external debt projected by these estimates. The Operational Boundary links directly to the Council’s plans for capital expenditure, estimates of the capital financing requirement and cash flow requirements for the year for all purposes but without the additional headroom included within the Authorised Limit. The indicator separately identifies limits for borrowing and other long-term liabilities.

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Table 11: Operational boundary for external debt 2015/16 2016/17 2017/18 2018/19 Limit Limit Limit Limit £000 £000 £000 £000 Borrowing 21,000 23,000 23,000 23,000 Other long-term liabilities 0 0 0 0 Total 21,000 23,000 23,000 23,000

5.1.15 Provided that the total Authorised Limit and total Operational Boundary for a year is unchanged, the Head of Financial Services has delegated authority to make changes to the separately identifiable limits for borrowing and other long-term liabilities. Any movement between these separate totals will be reported to the next meetings of the Audit Committee and Full Council.

Estimates of the ratio of financing costs to net revenue stream

5.1.16 This indicator of affordability highlights the revenue implications of existing and proposed capital expenditure by identifying the proportion of the revenue budget required to meet financing costs (net of interest and investment income).

5.1.17 Financing costs comprise the aggregate of:  interest charged to the General Fund with respect to borrowing  interest payable under finance leases and any other long-term liabilities  premiums and discounts from debt restructuring charged or credited to the amount to be met from government grants and local taxpayers  interest and investment income  amounts payable or receivable in respect of financial derivatives  minimum revenue provision plus any additional voluntary contributions  any amounts for depreciation/impairment charged to the amount to be met from government grants and local taxpayers.

5.1.18 Estimates for net revenue stream for current and future years are taken from the Council’s estimates of the amounts to be met from government grants and local taxpayers, using the equivalent figures from the original and revised budgets.

Table 12: Ratio of Financing Costs to Net Revenue Stream 2015/16 2015/16 2016/17 2017/18 2018/19 Approved Revised Estimate Estimate Estimate % % % % % Ratio 9.7 8.2 8.5 11.3 12.2

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Estimates of the incremental impact of capital investment decisions on the council tax 5.1.19 The incremental impact of capital investment decisions on the council tax is a fundamental indicator of affordability and highlights the impact of capital investment decisions - taken during the current budget cycle - on council tax. The incremental impact is calculated by comparing:

 the total revenue budget requirement of the current approved (three year) capital programme (including any updates to forecasts to the current programme not arising from capital investment decisions being taken during the current budget-making cycle (for example, a revision to the expenditure profile or timing of anticipated capital receipts)).  an equivalent calculation of the revenue budget requirement arising from the proposed capital programme - incorporating changes to the capital program arising from decisions taken during the current budget-making cycle.

5.1.20 Calculations of the incremental impact are based on the Council’s budget proposals, but will invariably include some estimates, such as the levels of government support, which are not published over a three year period. Estimates are made on the basis of best information available at the time and by making reasonable assumptions where there is a significant element of uncertainty.

Table 13: Incremental impact of capital investment decisions 2015/16 Estimate Increase in Band D Approved Revised 2016/17 2017/18 2018/19 Council Tax £ £ £ £ £ 2016/17 capital 0.04 0.04 (1.21) 1.37 1.41 programme only Capital programme 0.04 0.04 (1.21) 1.98 5.76 2016/17 to 2018/19

Acceptance of the CIPFA Treasury Management Code

5.1.21 Regulation 24 the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (as amended) requires a local authority to ‘have regard to’ the CIPFA’s Treasury Management in the Public Services: Code of Practice and Cross-Sectoral Guidance Notes when carrying out its capital finance functions under Chapter 1 of Part 1 of the Local Government Act 2003.

5.1.22 The Council formally approved its adoption of CIPFA’s Treasury Management Code and Cross-Sectoral Guidance Notes on 7th March 2012. This followed the publication of the fully revised second edition of the Treasury Management Code in 2011.

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5.1.23 Adoption of the Treasury Management Code demonstrates the Council’s treasury management practices are carried out in accordance with good practice. This includes having in place:  formally adopted, codified treasury objectives, policies and practices  a clear separation of responsibilities between treasury management policy formulation and treasury management execution  proper reporting arrangements  arrangements which give priority to identifying, monitoring and controlling risk.

5.2 Indicators required by the Treasury Management Code

5.2.1 In addition to the indicators required by the Prudential Code there are also a number of treasury indicators required by the Treasury Management Code and accompanying sector guidance. These are:  upper limits on fixed interest and variable interest exposures  upper and lower limits to the maturity structure of its borrowing  upper limits on the total of principal sums invested longer than 364 days. 5.2.2 These treasury management indicators specify ranges (rather than targets) designed to limit the Council’s exposure to interest rate, liquidity and refinancing risks.

Upper limits on fixed interest and variable interest exposures

5.2.3 The upper limits provided by these indicators establish ranges within which the Council will manage its exposures to fixed and variable interest rates. The sector guidance which accompanies the Treasury Management Code allows these limits to be calculated on the basis of absolute amounts or as a percentage of the Council’s net interest or net principal sum outstanding on its borrowing/investments. Table 14a shows the upper limits on net exposures to fixed and variable rate interest rates expressed as a percentage of the Council’s projected net interest (payable). Tables 14b and 14c show the limits based on principal sums outstanding in respect of fixed and variable investments and borrowings expressed as percentages of total (gross) investments and borrowing respectively.

5.2.4 The upper limit for variable rate exposure has been set at a level to ensure maximum flexibility of operation given the Council’s interest rate exposure is significantly influenced by historic fixed rate debt from the PWLB. Investments will be short-term and at fixed or variable rates depending on the Council’s requirements and prevailing interest rates. The limit allows for the use of variable rate debt to offset exposure to changes in short-term rates on investments.

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Table 14a Upper limit on fixed & variable interest rate - net exposures Upper limit 31.3.15 2015/16 2016/17 2017/18 2018/19 Actual Limit Limit Limit Limit % % % % % Net interest payable/ (receivable) on fixed rate 111 115 115 115 115 debt & investments Net interest payable/ (receivable) on variable (11) 115 115 115 115 rate debt & investments

Table 14b: Upper limits on interest rate exposures – gross investments 31.3.15 2015/16 2016/17 2017/18 2018/19 Actual Approved Limit Limit Limit % % % % % Fixed interest rate 18 100 100 100 100 exposure Variable interest rate 82 100 100 100 100 exposure

Table 14c: Upper limits on interest rate exposures – gross borrowing 31.3.15 2015/16 2016/17 2017/18 2018/19 Actual Approved Limit Limit Limit % % % % % Fixed interest rate 98 100 100 100 100 exposure Variable interest rate 2 100 100 100 100 exposure

5.2.5 The limits above provide the necessary flexibility within which decisions will be made for drawing down new loans on a fixed or variable rate basis. These decisions will ultimately be determined by expectations of anticipated interest rate movements as set out in the Council’s treasury management strategy.

Upper and lower limits to the maturity structure of its (fixed rate) borrowing

5.2.6 This indicator highlights potential exposures to refinancing risk arising from concentrations of fixed rate debt falling due for refinancing and is designed to facilitate reductions in the Council’s exposure to refinancing at times of volatile or high interest rates.

5.2.7 It is calculated as the amount of projected borrowing that is fixed rate maturing in each period as a percentage of total projected borrowing that is fixed rate. The maturity of borrowing is determined by reference to the earliest date on which the lender can require payment.

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Table 15: Lower/upper limits on % of fixed rate borrowing maturing in each period 2015/16 2016/17 31.3.15 31.3.16 Lower Upper Lower Upper Actual forecast limit limit limit limit % % % % % % Under 12 months 0.90 2.09 0 20 0 20 12 months to 2 years 0.60 1.94 0 20 0 20 2 years to 5 years 2.20 6.05 0 20 0 20 5 years to 10 years 5.30 11.15 0 30 0 30 10 years to 20 years 10.30 20.76 0 40 0 40 20 years to 30 years 0 7.57 0 30 0 40 30 years to 40 years 20.20 12.61 0 40 0 80 40 years to 45 years 60.50 37.83 20 80 0 80

Upper limits to the total of principal sums invested longer than 364 days

5.2.8 A local authority that invests, or plans to invest, for periods longer than 364 days is required to set an upper limit for each forward financial year period for the maturing of such investments. The purpose of these limits for principal sums invested for periods longer than 364 days is for the local authority to contain its exposure to the possibility of loss that might arise as a result of its having to seek early repayment or redemption of principal sums invested.

Table 16: Upper limit for principal sums invested to final maturities beyond the period end 2015/16 2016/17 2017/18 2018/19 Approved Limit Limit Limit £000 £000 £000 £000 Principal sums invested > 364 days 50 20 20 20

5.2.9 For its cash flow generated balances the Council will seek to utilise its call and notice accounts, money market funds and short-dated deposits (overnight to 6 months). The Council will not invest for periods longer than 364 days during 2016/17.

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6. Appendices

A. Interest Rate Forecasts 2016 - 2019

B. Credit Ratings

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Appendix A - Interest Rate Forecasts 2016 – 2019

PWLB rates and forecast shown below have taken into account the 20 basis point certainty rate reduction effective as of the 1st November 2012. Page 145 Page

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Appendix B – Credit Ratings International long-term credit ratings

Fitch Moody’s Standard Definition Permitted & Poor’s counter- party Investment Grade AAA Aaa AAA Highest quality/Best quality/Extremely strong Yes AA Aa AA Very high quality/High quality/Very strong Yes A A A High quality/Upper medium grade/Strong Yes* BBB Baa BBB Good quality/Medium grade/Adequate No Non-investment/speculative grade Speculative/Lower medium grade/Speculative – BB Ba BB No Less vulnerable B B B Highly speculative/Low grade/More vulnerable No CCC Caa CCC Poor quality/Currently vulnerable No High default risk/Highly speculative/Currently CC Ca CC No highly vulnerable High default risk/Extremely poor/Imminent C C C No default D D In default No *except non UK sovereigns

Note: Fitch Ratings and Standard and Poor’s ratings from 'AA' to 'CCC' may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. Moody’s append numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa to denote relative status.

Page 38 Page 146 Agenda Item 15

Allerdale Borough Council

Council – 2 March 2016

Recommendations Referred to Council

Hackney Carriage Vehicles - Annual Review of Table of Fares

The following recommendations have been referred to Council by Licensing Committee on 18 February 2016.

It is for Council to consider its response.

Recommended

That Council be requested to agree that the Table of Fares:

a) be retained as existing b) continue to be reviewed on an annual basis

Dean Devine Democratic and Support Services Officer

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Page 148 Allerdale Borough Council Licensing Committee – 18 February 2016 Hackney Carriage Vehicles - Annual Review of Table of Fares

The Reason for the Decision To consider in light of current economic circumstances whether the table of fares charged by a hackney carriage shall be changed and to what level. In addition to decide whether the table of fares should continue to be reviewed on an annual basis or only by request from a hackney carriage proprietor who provides sufficient information/evidence to supported a review

Summary of options considered a) To retain the table of fares as existing; b) To change the table of fares and set the fares in accordance with economic considerations; c) To continue to review the table of fares on an annual basis; d) To review the table of fares in future by request from a hackney carriage proprietor who provides sufficient information/evidence to support a review

Recommendations a) Retain the table of fares as existing – based on the key information the price of fuel has reduced, the vehicle test fees remain unchanged and the licence fees are static for the time being. The inflation rate for the previous year is 1.2% and equates to an increase of 3p on the first mile or part thereof on the table of fares. There is currently 147 licensed hackney carriage vehicles in Allerdale and in view of one comment received there appears to be a lack of appetite from the taxi trade for an increase in fares. b) Continue to review the table of fares on an annual basis – this will encourage regular and open reviews with the taxi trade and ensure that the table of fares is set at a realistic level for their business.

Financial/ Resource Implications a) Advertisement costs to the Council if amendments required to the table of fares. This is within budget. b) Costs to the hackney carriage proprietors to recalibrate meters if changes to the table of fares. This would be approximately £20 per meter but fees are dependent on the meter supplier.

Page 149 Legal/Governance Implications Advertising and other statutory procedures to follow to ensure any amendments are legally valid.

Community Safety Implications None

Health and Safety and Risk None Management Implications

Equality Duty considered / Impact No Assessment completed

Wards Affected All

The contribution this decision would N/A make to the Council’s priorities

Is this a Key Decision No

Portfolio Holder Councillor K Hansen

Lead Officer Gillian Collinson Senior Licensing and Compliance Officer Tel: 01900 702861 [email protected]

Report Implications

Community Safety N Employment (external to the Council) N Financial Y Employment (internal) N Legal Y Partnership N Social Inclusion N Asset Management N Equality Duty N Health and Safety N

Appendices

Appendix 1 Comparison of Table of Fares nationally Appendix 2 Comparison of Table of Fares in Cumbria

1.0 Introduction

1.1 The principal features of a hackney carriage are: it can carry passengers for hire and reward; it can be hailed by a prospective passenger; and it can park on a rank to await the approach of passengers. It must be driven by a driver who holds a hackney carriage drivers licence.

Page 150 1.2 The Local Authority lays down conditions to regulate hackney carriage vehicles such as the type that can be used and for hackney carriage drivers to assess suitability and propriety of the individual.

1.3 The Local Authority can also fix the rates or fares within the borough that a hackney carriage proprietor can charge for his services. This can cover time, distance and all other charges in connection with the hire of a vehicle and is known as the “table of fares” Once the fares are set the hackney proprietor must have the meter in the vehicle calibrated to those fares and sealed to prevent tampering. This is the maximum that can be charged but a proprietor does have discretion to charge less than the meter price. The meter must always be used for each fare and display the current table of fares. There is also a separate tariff card which is displayed in the vehicle for the passengers benefit.

1.4 The fares are fixed in accordance with Section 65(1) of the Local Government (Miscellaneous Provisions) Act 1976. If Members agree to vary the fares subject to confirmation from Council this must be published in at least one newspaper circulating in the Borough. Following the publication of such Notice, the new table of fares will come into operation on 1 April 2016 provided no objections are received. If objections are received either from the trade or the public, the item is referred back for consideration.

1.5 The last variation of the table of fares by this Authority was on 1 June 2010. The change consisted of an increase to Tariff 1 from 260 pence to 290 pence, an increase from 36 pence to 39 pence for each subsequent 1/5 of a mile and the waiting time. It also included additions to Tariff 3; which traditionally deals with bank and public holidays.

1.6 The current table of fares for Hackney Carriage vehicles is as follows:

Distance (Tariff 1) If the distance does not exceed 1.6 kilometre (1 mile) for the whole distance 290 pence If the distance exceeds 1.6 kilometre (1 mile) for the first kilometre (1 mile) 290 pence For each subsequent 0.32 (1/5 of a mile) or uncompleted part thereof 39 pence Waiting Time For each period of three minutes or uncompleted part thereof 39 pence Extra Charges (Tariff 2) PLUS 50% For hiring commenced between Midnight and 6am OF TARIFF 1 (Tariff 3) All day on Bank and Public Holidays including Easter Sunday, Boxing Day and any Bank Holidays given in lieu of Boxing Day and to 4am on the day following those listed above. Hirings commenced between 6pm and Midnight on Christmas Eve and PLUS 75% New Years Eve OF TARIFF 1

Page 151 (Tariff 4) PLUS 100% Christmas Day and New Years Day OF TARIFF 1 For each article of luggage conveyed outside the passenger compartment or the carriage for the whole distance 15 pence For each person in excess of two 50 pence Fouling Charge £50.00 The above rates of fare are applicable to: 1. Journeys taken entirely within the Borough of Allerdale. 2. Journeys ending outside the Borough of Allerdale where no fare or rate is agreed in advance of such journeys between the hirer and the driver.

2.0 Background Information

2.1 The table of fares are reviewed on an annual basis. For Members information previous year’s amendments have been as follows:

i 10/3/1999  increase from £1.60 to £1.80 for first mile  increase from 26 pence to 30 pence for each 1/5 of a mile  increase in three minute waiting charge from 32 to 35 pence.

ii 23/2/2000  increase from £1.80 to £2.00 for first mile  increase from 30 pence to 32 pence for each 1/5 of a mile (members originally recommended that Tariff 2 commence at 11pm. However this was amended to midnight at full Council on 12 January 2000).

iii 01/4/2002  increase from £2.00 to £2.20 for first mile  increase from 32 pence to 36 pence for each 1/5 of a mile  increase in three minute waiting charge from 35 to 36 pence  fouling charge increased from £25 to £50.

iv 01/4/2003  Licensing Committee recommended an increase but was not accepted by Full Council. The tariff remained unchanged.

v 01/4/2004  Only Tariff 3 amended to include between 6.00pm and Midnight on Christmas Eve and New Year’s Eve.

vi 01/4/2005  Increase of Tariff 1 from £2.20 to £2.40 for first mile.

vii 01/4/2006  No change.

viii 01/4/2007  Increase of Tariff 1 from £2.40 to £2.60 for first mile  For each person in excess of two from 25p to 50p.

Page 152 ix 01/4/2008  No change.

x 01/4/2009  Tariff 3 extended to 4am on days following bank and public holidays.

xi 01/6/2010  Tariff 1 and 3 amended as per paragraph 1.5.

xii 01/04/2011  No change

xiii 01/04/2012  No change

xiv 01/04/2013  No change

xv 01/04/2014  No change

xvi 01/04/2015  No change

3.0 Key Considerations

3.1 Responses from the Trade

There has been one request for a review from a hackney carriage proprietor in the following terms:

Brian Sparks - Having been held off for so long the Hackney Carriage table of fares needs a 10% raise across the board. Not forgetting the sharp increases in wages going to be needed each year to meet the move from minimum to living wage, I would like to again suggest linking the table raises be matched with national inflation yearly.

4.0 Comparison of Table of Fares

4.1 The National Fares Table dated February 2016 is attached (Source: PHTM Feb 2016 – Private Hire Taxi Monthly – Official newspaper of National Private Hire Association). Out of 365 authorities published Allerdale falls at position 321 therefore in the lower sector of tariff charging (Appendix 1)

4.2 Detailed Tables of Fares from all councils in the county are attached for information (Appendix 2). For information there is a mix in the county of whether the fares are reviewed annually or by request. Of the information received to date three councils review annually but one intends to change to by request and two are by request.

5.0 Fuel Price Report (Source: AA)

5.1 For Members information the following are extracts from the Fuel Price Report. The first one from one year ago and the second being the most recently available from January 2016 and published February 2016.

Page 153 5.2 January 2015

5.2.1 The pace of fall in petrol and diesel pump prices accelerated in December as supermarkets took advantage of plunging wholesale prices to compete for customers with cars. However, with oil needing to fall to $40 a barrel at least but staying in the $45-$50 range, £1 a litre predictions look misplaced.

5.2.2 Unleaded prices are down 7.4p from 116.3 ppl to 108.9 ppl. Diesel prices have fallen 6.1p from 122.2 ppl to 116.1 ppl. The price difference between unleaded and diesel has increased to 7.2 ppl.

5.2.3 East Anglia has recorded the highest price for unleaded at 109.4 ppl. The North, Northern Ireland, South West and Yorkshire and Humberside have recorded the lowest price for unleaded at 108.8 ppl. Scotland has recorded the highest diesel price at 116.9 ppl. Northern Ireland has the cheapest diesel at 115.7 ppl.

5.2.4 The North and London have recorded the lowest price for unleaded at 130.1 ppl.

5.2.5 Supermarket prices for unleaded have fallen to 107.1 ppl. The gap between supermarket prices and the UK average for unleaded has shrunk to 1.8 ppl.

5.3 January 2016

5.3.1 Extract from Fuel Price Report January 2016 (Fuel price data is supplied by Experian Catalyst in cooperation with Arval UK Ltd)

5.3.2 Six weeks after petrol prices fell to below £1 a litre on supermarket forecourts, the UK average has yet to fall to that level. AA analysis has found that potential price cuts from the lower cost of oil have been lost in commodity market prices that have failed to fall in line with oil.

5.3.3 Unleaded prices have dropped 2.2p from 104.4 ppl to 102.2 ppl. Diesel prices have fallen back 5.1p from 107.7 ppl to 102.6 ppl. The price difference between unleaded and diesel is just 0.4 ppl

5.3.4 National and Regional

The North West, West Midlands and Scotland have recorded the highest price for unleaded at 102.6 ppl. East Anglia and Yorkshire & Humberside have recorded the lowest price for unleaded at 101.9 ppl. The North and Scotland have recorded the highest diesel price at 103.1 ppl. Northern Ireland has the cheapest diesel at 101.6 ppl.

5.3.5 Supermarkets

Supermarket prices for unleaded remain at 99.9 ppl. The gap between supermarket prices and the UK average for unleaded has shrunk to 2.3 ppl.

Page 154 6.0 Fuel Price Comparisons (Source: Petrol Prices.com)

6.1 The table below shows fuel price comparisons according to post code as of 14 January 2015 and 8 February 2016.

CA14 CA13 CA7 CA12 January 107.9 112.9 110.9 110.9 2015 Petrol February 103.9 103.9 102.9 102.9 2016 HIGHEST January 114.9 118.9 116.9 116.9 2015 Diesel February 102.9 104.9 101.9 102.9 2016 January 104.9 112.9 110.9 109.9 2015 Petrol February 99.7 103.9 102.9 102.9 2016 LOWEST January 111.9 118.9 114.9 116.9 2015 Diesel February 97.7 104.9 101.9 102.9 2016

7.0 Inflation – Retail Price Index (RPI) (Source: Office for National Statistics)

7.1 The RPI is the main domestic measure of inflation. The measure of inflation adopted tracks the changing cost of a fixed basket of goods and services over time. It combines together around 180,000 individual prices for over 650 representative items. RPI covers a range of costs including:

 Mortgage interest payments  Council tax  House depreciation  Buildings insurance  House purchase costs, e.g. estate agent fees  TV Licence  Road fund licence  Trades union subscriptions

The RPI includes a price index for cars which is based entirely on used car prices.

7.2 If RPI was applied at 10% as per the suggestion of the taxi proprietor, the rate for the first mile would increase from £2.90 to £3.19.

7.3 From 2011 inflation has increased by 8.97%. If this was applied, the rate for the first mile would increase from £2.90 to £3.16.

Page 155 7.4 If RPI was applied at 1.03% the rate for the first mile would increase from £2.90 to £2.93.

8.0 Minimum Wage and Living Wage

8.1 From April 2016 the government will introduce a new mandatory national living wage (NLW) for workers aged 25 and above initially set at £7.20 per hour. This is 50p above the current National Minimum Wage (NMW) rate. It will gradually increase to £9 per hour by 2020 and applies to part time and full time workers. It will change every April. The voluntary living wage (VLW) set by the Living Wage Foundation is currently set at £8.25 per hour and changes every October.

9.0 Summary Information for Consideration

9.1 Members are asked to consider the current table of fares taking into consideration the following:

a) The representation(s) made from the trade; b) Currently the vehicle and drivers licence fees are £130.00 and £70.00 respectively. At the writing of this report it is not known whether fees will be increased in 2016/17. These fees have been static since 1 April 2012; c) Comparison of table of fares nationally and locally; d) Extract from Fuel price reports; e) Fuel Price Comparison Table; and f) Retail Price Index figures.

10.0 Recommendations

10.1 Members are asked to:

a) Retain the table of fares as existing – based on the key information the price of fuel has reduced, the vehicle test fees remain unchanged and the licence fees are static for the time being. The inflation rate for the previous year is 1.2% and equates to an increase of 3p on the first mile or part thereof on the table of fares. There is currently 147 licensed hackney carriage vehicles in Allerdale and in view of one comment received there appears to be a lack of appetite from the taxi trade for an increase in fares. b) Continue to review the table of fares on an annual basis – this will encourage regular and open reviews with the taxi trade and ensure that the table of fares is set at a realistic level for their business.

Gillian Collinson Senior Licensing and Compliance Officer

Page 156 www.npha.org.uk For full tablessee www.phtm.co.uk FARE REDUCED RISE IN 2005 RISE IN 2006 RISE IN 2007 RISE IN 2008 RISE IN 2009 RISE IN 2010 RISE IN 2011 RISE IN 2012 RISE IN 2013 RISE IN 2014 RISE IN 2015 RISE IN 2016

National Fares Tables  
 

FEBRUARY 2016 

If you are going for a fare rise and you would like to see your financial percentages call 0161 280 2800 or email [email protected] Pos. 73 72 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 10 11 9 8 7 6 5 4 3 2 1 RN £.015DVR£.018GSOT£5.60 198 £6.00 GOSPORT 188 £6.00 SCARBOROUGH 125 £5.60 £6.40 £6.40 £6.40 121 £6.40 119 £6.40 £6.40 £5.70 DOVER £6.40 115 £6.40 £6.40 £5.70 BASILDON £5.80 182 £6.45 PURBECK 111 £6.00 OXFORD 110 £6.50 £5.80 £6.60 £6.40 NORWICH £6.50 £6.60 MALVERN HILLS £5.80 OFMAN ISLE £6.60 HARROGATE NORTHSOMERSET GREAT 169 BRACKNELL FOREST HARLOW 174 118 109 £6.60 106 GUERNSEY £6.20 104 £6.10 GRAVESHAM £6.40 £6.60 £6.60 NORTH £6.60 CAMBRIDGE £6.60 TAMWORTH 191 BATH &N.E.SOMERSET 163 STOCKPORT £6.60 ARUN £6.00 162 £6.20 RESTORMEL £5.80 MOLE VALLEY £6.20 CHELMSFORD £6.60 TEIGNBRIDGE WEALDEN 96 ELMBRIDGE WAVENEY £6.70 SELBY YARMOUTH 101 TUNBRIDGE WELLS 159 £6.75 94 £6.74 POOLE £6.60 £6.20 MEDWAY £6.80 WEST £6.80 95 MAIDSTONE £6.70 SOLIHULL JERSEY GLOUCESTER 90 £6.80 SHEPWAY EXETER 91 153 89 CRAWLEY £6.80 £6.80 BOURNEMOUTH £6.80 £6.20 £6.80 BASINGSTOKE &DEANE £5.60 NORTHAMPTON ADUR £6.60 86 WEYMOUTH &PORTLAND EASTLEIGH £6.90 SEVENOAKS £6.80 KERRIER £7.00 LEICESTER WEST BERKSHIRE £7.00 £6.90 CHICHESTER READING £7.00 80 HART £7.00 EAST LOTHIAN £7.00 COLCHESTER £7.00 £7.20 CARRICK CARADON BRIGHTON &HOVE £8.40 VALE OFWHITEHORSE £7.20 GUILDFORD WEST WILTSHIRE SALISBURY £7.60 £9.20 NORTH WILTSHIRE MID SUSSEX KENNET HERTSMERE DARTFORD LONDON EPSOM &EWELL LONDON (HEATHROW) WATFORD LUTON (AIRPORT) UETN&BDOT 62 4 ASL 59 1 WND £5.50 £5.50 DUMFRIES&GALLOWAY £5.50 213 217 £5.60 £5.50 GWYNEDD £5.90 £5.90 218 CENTRAL BEDFORDSHIRE £5.90 212 210 EASTCAMBRIDGESHIRE £5.90 £5.60 214 £5.92 £5.90 £6.22 RUSHMOOR £5.60 144 DUDLEY 140 WYRE £6.27 143 WALSALL CHRISTCHURCH 203 204 145 139 £6.30 SUFFOLKCOASTAL £6.27 £6.00 199 £6.00 £6.25 £6.30 £6.30 EASTDORSET HIGH PEAK £6.00 141 137 £6.30 £6.30 £6.30 £6.30 132 MIDLOTHIAN TAMESIDE THREERIVERS 200 NUNEATON &BEDWORTH £6.40 130 £6.40 HARBOROUGH THURROCK £6.00 134 FOREST OFDEAN 131 £6.40 YORK SLOUGH £6.30 £6.40 TONBRIDGE &MALLING 126 SWALE PENWITH £6.40 SOUTHEND-ON-SEA £6.40 LEWES 127 EAST DEVON £6.40 DACORUM £6.40 COVENTRY COUNTY OFHEREFORD WOKINGHAM WOKING SURREY HEATH STROUD SOUTH LAKELAND SOUTH GLOUCESTER SOUTH CAMBRIDGE ROTHER Council Now Wiltshire (EastZone)

aif1:2MlsPos. 2Miles Tariff 1: £7.00 Page 157 £6.30 81 Council RW ATIH£6.20 CREWE &NANTWICH 4 ATLNSY£.0215 £5.90 LINDSEY EAST 142 4 OT EO 58 1 ABEO £5.50 £5.50 HAMBLETON 219 £5.85 £5.56 MORPETH CASTLE 211 £5.92 209 NORTH DEVON 146 £5.95 208 CHERWELL £5.95 £5.60 206 £5.60 £6.00 £5.60 TORRIDGE 138 TENDRING 136 DARLINGTON 135 197 WEST DORSET 133 SANDWELL £6.00 196 RUSHCLIFFE WOLVERHAMPTON 195 193 201 £6.00 £6.00 129 £6.00 STEVENAGE £6.00 128 ROCHFORD 124 NORTH DORSET £5.70 123 MILTON KEYNES 122 KETTERING £5.70 120 181 £6.00 PLYMOUTH MONMOUTHSHIRE 175 173 £6.10 £6.15 ABERDEENSHIRE 108 107 105 103 NEW FOREST 102 TORBAY 100 1 ATHMSIE 60 8 ICLY&BSOT £5.60 £5.60 HINCKLEY &BOSWORTH 189 186 £6.00 £6.00 BROXBOURNE 185 £6.00 117 HAMPSHIRE EAST 116 114 CASTLE POINT 113 CARMARTHENSHIRE 112 7WVRE 62 7 SEO IH £5.70 172 ISLEOFWIGHT 170 £6.20 £6.20 £5.80 WINCHESTER 99 161 REIGATE WAVERLEY &BANSTEAD 98 160 158 97 £6.20 £5.80 157 £6.20 156 £6.20 £6.20 £6.20 155 93 92 £6.20 SEDGEMOOR 152 RUNNYMEDE 88 £6.20 87 BLACKPOOL 148 MENDIP LINCOLN 85 £6.20 LEEDS 84 HORSHAM 83 82 CHELTENHAM BROMSGROVE 79 149 78 BIRMINGHAM£6.20 77 ASHFORD 76 75 74 £5.80

ETOFR £6.20 £6.20 £6.20 WEST OXFORD ST ALBANS SPELTHORNE £6.20 £6.20 £6.20 BRISTOL, CITY OFUA BRENTWOOD ARGYLL &BUTE HTADILNS£6.05 £6.08 £6.10 SHETLAND ISLANDS SOUTH SOMERSET NORTH HERTS ATNS£5.90 HASTINGS £6.00 £6.00 WORTHING WARWICK ETVLE £6.00 £6.00 TEST VALLEY £6.00 £6.00 LUTON IPSWICH £6.00 £6.00 £6.00 FIFE CHESTER £6.05 £6.10 CANTERBURY BRAINTREE CHARNWOOD SWINDON £6.20 £6.20 £6.20 TAUNTON DEANE STRATFORD ON AVON SOUTHAMPTON aif1:2MlsPos. 2Miles Tariff 1: Council 154

aif1:2Miles Tariff 1: AAT£5.80 HAVANT 1 DN£5.50 EDEN 216 £5.55 DURHAMCOUNTY COUNCIL 207 205 6 ETSMRE £5.80 171 166 WESTSOMERSET 165 £5.80 £5.85 151 EASTHERTS 150 TEWKESBURY 147 0 RXA £5.60 WREXHAM £5.60 202 194 NOTTINGHAM 192 190 £5.70 187 £5.65 184 183 VALE OFGLAMORGAN 180 179 178 177 RYEDALE £5.70 176 £5.80 168 EASTKILBRIDE 167 UTTLESFORD 164 OTMUHU £5.60 PORTSMOUTH UA WYCOMBE £5.65 OT UKNHM£5.60 SOUTH BUCKINGHAM £5.75 MANCHESTER £5.70 SCOTTISH BORDERS £5.80 FYLDE I EO £5.70 MID DEVON £5.80 £5.80 £5.80 £5.80 £5.80 £5.80 SOUTH RIBBLE SOUTH AYRSHIRE NORTH WARWICKS NEWCASTLE UPONTYNE LEICESTER GLASGOW PIGFRS £5.50 £5.50 £5.50 EPPING FOREST £5.59 EAST STAFFORDSHIRE CANNOCK CHASE CARDIFF £5.60 £5.60 £5.60 RENFREWSHIRE £5.60 £5.60 NORTH KESTEVEN £5.65 £5.70 FOREST HEATH £5.70 BRECKLAND BOSTON CARLISLE WORCESTER £5.70 WELWYN HATFIELD EASTBOURNE DNUG £5.60 EDINBURGH UDE£5.58 DUNDEE RXOE £5.50 BROXTOWE NEWPORT SHEFFIELD £5.60 £5.51 This page is intentionally left blank

Page 158 Pos. Council TTaariffff 1 : 2 Miles Pos. Council TTaariffff 1 : 2 Miles 220HUNTINGDONSHIR E £5.50 293 SOUTH STTAAFFORDSHIRE £5.10 THE NATIONAL AVERAGE FARE 221 MORAY £5.50 294 WIGAN £5.10 222OLDHAM £5.50 295 ALNWICK £5.05 Flag at T1 is now £2.76 223SHROPSHI RE £5.50 296 SOUTH HOLLAND £5.05 Flag at T2 is now £3.63 224SOUTH H AMS £5.50 297 SWWAANSEA £5.05 225 STTAAFFORD £5.50 298BLLYYTH VVAAL LEY £5.00 1 mile fare T1 is now £3.82 226TYNEDA LED £5.50 299CHESTERFI EL £5.00 227WWAANSB ECK£5.50 300 CONWY £5.00 1 mile fare T2 is now £5.02 228GEDLIN G £5.50 301COPELA ND £5.00 229ABERD EEN £5.50 302DAVENT R Y £5.00 2 mile fare T1 is now £5.68 230ANG US £5.50 303 EREWWAASH £5.00 2 mile fare T2 is now £7.45 231BARROW IN FUR NESS £5.44 304LIVERPOO L £5.00 232CHILLTT ERN £5.40 305NEATH PORT TTAALBO T £5.00 5 mile fare T1 is now £11.27 233 CLACKMANNAN £5.40 306NORTH EAST DERBYSHI RE £5.00 234 DERBY £5.40 307 PETERBOROUGH £5.00 5 mile fare T2 is now £14.73 235 FFAAREHAM £5.40 308 SOUTH LANARKSHIRE(clydsle) £5.00 236LANCA STER £5.40 309 SOUTH NORTHANTS £5.00 10 mile fare T1 is now £20.71 237 MACCLESFIELD £5.40 310THA NET £5.00 10 mile fare T2 is now £27.06 238MID SUFFOL K £5.4031 1 WEST LIND SEY £5.00 239 NEWWAARK & SHERWOOD £5.40 312 STOKE ON TRENT UA £4.95 Running mile on T1 is now £1.87 240NORTH LINCOLNSHI RE £5.40 313BRIDGEN D £4.90 241 PEMBROKESHIRE £5.40 314CHOR LEY £4.90 Running mile on T2 is now £2.45 242PERTH & KINRO SS £5.40 315 FLINTSHIRE £4.90 243 RUGBY £5.40 316KINGSTON-UPON-HUL L £4.90 244 SUNDERLAND £5.40 317 ROSSENDALE £4.90 245TANDRIDG E £5.40 318TELFORD & WREKI N £4.90 AREA FARE AVERAGES 246TRAFFORD £5.40 319WELLINGBOROUG H £4.90 247WEST LOTHI AN £5.40 320REDDITC H £4.88 Tariff One 248 WINDSOR & MAIDENHEAD £5.40 321 ALLERDALE £4.85 249 WYCHAAVVON £5.40 322 ASHFIELD £4.80 Running 250KINGS LLYYNN & W. NORFO LK £5.40 323 CAERPHILLLYY £4.80 Flag 1 mi. 2 mil. 5 mi. 10 mi. Mile 251B324ESASSETLA W £5.40 DERBYSHIRE DAL £4.80 252RICHMONDSHI RE £5.40 325 DONCASTER £4.80 253 BURY ST EDMUNDS £5.40 326HAMILT ON £4.80 East Anglia £3.03 £3.95 £5.74 £11.04 £19.92 £1.78 254 BRADFORD £5.36 327 INVERCLLYYDE £4.80 255 COTSWOLD £5.35 328MANSFIEL D £4.80 Midlands £2.73 £3.70 £5.47 £10.74 £19.53 £1.76 256CRA VEN £5.30 329 NORTH AYRSHIRE £4.80 257 DUMBARTON £5.30 330 NORTH LANARKSHIRE £4.80 North £2.46 £3.52 £5.23 £10.36 £19.00 £1.72 258FENLA ND £5.30 331 ROCHDALE £4.80 259LICHFI ELDM £5.30 332ROTHERH A £4.80 South £2.97 £4.25 £6.24 £12.25 £22.63 £2.01 260 MELLTTON £5.30 333RUTHERGL EN £4.80 261NORTH EAST LINCOLNSHIR E £5.30 334 TORFAEN £4.80 South West £2.72 £4.02 £6.15 £12.51 £23.18 £2.12 262NORTH NORFOLK £5.30 335 BARNSLEY £4.70 263 RIBBLE VVAALLEY £5.30 336BERWICK ON T WEED £4.70 Scotland £2.74 £3.55 £5.33 £10.68 £19.62 £1.80 264 WYRE FOREST £5.30 337 BLACKBURN £4.70 265SALFO RD £5.30 338 EAST AYRSHIRE £4.70 Wales £2.82 £3.32 £5.16 £10.65 £19.79 £1.83 266VVAALE ROYYAA L £5.30 339EAST NORTHAN TS £4.70 267 BLABY £5.30 340FALKI R K £4.70 Nat. Avg. £2.76 £3.82 £5.68 £11.27 £20.71 £1.87 268BEDFO RD £5.26 341 HIGHLANDS £4.70 269 BOLLTTON £5.25 342 HYNDBURN £4.70 270 BURY £5.24 343WEST LANCASHIR E £4.70 271 CALDERDALE £5.10 344 BOLSOVER £4.60 Tariff Two 272 DENBIGHSHIRE £5.20 345 CORBY £4.60 273ELLESMERE POR T £5.20 346EAST DUNBARTONSHI RE £4.60 Running Flag 1 mi. 2 mil. 5 mi. 10 mi. 274 HALLTTON£5.20 347EAST RENF R EW £4.60 Mile 275 NORTH TYNESIDE£5.20348SEFTO N £4.60 276 ORKNEY ISLANDS £5.20 349 WWAAKEFIELD £4.60 277POW YS £5.20 350 BURNLEY £4.50 East Anglia £3.95 £5.10 £7.39 £14.24 £25.65 £2.28 278PREST ON £5.20 351 MERTHYR TYDFIL £4.50 279RHONDDA CYNON TTAA FF £5.20 352 REDCAR & CLEVELAND £4.50 Midlands £3.63 £4.90 £7.24 £14.10 £26.14 £2.34 280SOUTH TYNESI DES £5.20 353 T. HELENS £4.50 281 STTAAFFS MOORLANDS £5.20 354 STOCKTON ON TEES £4.50 North £3.05 £4.37 £6.55 £13.09 £24.00 £2.19 282 STIRLING £5.20 355 KIRKLEES £4.40 283 WARRINGTON £5.20 356 KNOWSLEY £4.40 South £4.08 £5.86 £8.68 £16.83 £30.84 £2.76 284 WIRRAL£5.20 357 OADBY & WIGSTON £4.40 285YNYS MO N £5.20 358 PENDLE £4.40 South West £3.76 £5.44 £8.29 £16.91 £31.27 £2.87 286 CEREDIGION £5.20 359 AYLESBURY VVAALE £4.30 287 EAST RIDING £5.20 360 BLAENAU GWENT £4.30 Scotland £3.44 £4.34 £6.31 £12.21 £22.05 £1.97 288 AMBER VVAALLEY £5.20 361 MIDDLESBROUGH £4.30 289BABERG H £5.18 362 NEWCASTLE-U-LLYYME £4.20 Wales £3.57 £4.20 £6.58 £13.66 £25.46 £2.36 290 CONGLETON 1 S N E Page. 159 291 CLLYYD N R O . Nat. Avg. £3.63 £5.02 £7.45 £14.73 £27.06 £2.45 292 GATE A 5 5 O K E £3.50 This page is intentionally left blank

Page 160 HACKNEY CARRIAGE TARIFFS

The fares are as follows:-

Normal Fare (7am until midnight) If the distance does not exceed 805 metres (5/10 mile) for the whole distance £2.40 If the distance exceeds 805 metres (5/10 mile) for each subsequent 161 metres (1/10 of a mile) or uncompleted part £0.20 Waiting time – for each 30 seconds £0.10

For hirings begun between midnight and 7.00 a.m. If the distance does not exceed 805 metres (5/10 mile) for the whole distance £3.60 If the distance exceeds 805 metres (5/10 mile) for each subsequent 161 metres (1/10 of a mile) or uncompleted part £0.30 Waiting time – for each 30 seconds £0.15 For hirings on all bank holidays, Christmas Eve and New Years Eve If the distance does not exceed 805 metres (5/10 mile) for the whole distance £4.80 If the distance exceeds 805 metres (5/10 mile) for each subsequent 161 metres (1/10 of a mile) or uncompleted part £0.40 Waiting time for each 30 seconds £0.20

Soiling charge - £10 outside/maximum £100 inside Payment of estimate may be required as deposit at start of journey Extra charge of £0.20 per person over two people.

Operative date for the above tariffs:- 1st August 2012.

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Page 162 CITY OF CARLISLE

HACKNEY CARRIAGE (MAXIMUM) FARES

MILEAGE

TARIFF ONE If the distance does not exceed 0.7 mile £2.85p (Approx. 1126 metres) For each subsequent 170yds or £0.20p uncompleted part thereof (Approx. 155 metres) WAITING TIME For each period of one minute or £0.25p uncompleted part thereof.

Page 163 Page TARIFF TWO For hirings commenced between 2300 hours Plus One Third and 0700 hours, and between 1200 hours of Tariff One and 1800 hours on Christmas and rate of fare New Years Eve.

TARIFF THREE All day of Bank and Public Holidays and Plus One Half between 1800 hours and 2400 hours on of Tariff One Christmas and New Years Eve. rate of fare

EXTRA CHARGES For each ADULT (17 yrs & over) in excess of four £0.50p

For each perambulator or dog conveyed. £0.10p (Other than Assistance Dog) For each article of luggage conveyed outside £0.10p the passenger compartment of the carriage.

A charge may be requested if the user soils £35.00p the vehicle. This will not exceed:- 6th October 2014 This page is intentionally left blank

Page 164 Hackney Tariffs as from 1 August 2011

Tariff One (basic day rate) between 6.00am and 11.00pm

Tariff Two between 11.00pm and 6.00am

Tariff Three Bank or Public Holiday (to include Christmas Day, Boxing Day, New Years Day and Easter Sunday) for the period up to 6.00am on the following day; and also between 6.00pm and midnight on 24 December and 31 December.

Tariff One Tariff two Tariff Three If the distance is 8/10 Mile or under For the whole distance £2.50 £3.50 £4.50 If the distance exceeds 8/10 Mile then each subsequent 1/10 Mile £0.25 £0.35 £0.45 Waiting Time For each single period of 3 minutes or £0.90 £0.90 £0.90 uncompleted part thereof Extra charges For Soiling the Carriage £75.00 £75.00 £75.00 For each person carried in excess of £0.50 £0.50 £0.50 two For each article of wheeled luggage £0.50 £0.50 £0.50 carried outside of passenger compartment

Page 165 This page is intentionally left blank

Page 166 South Lakeland District Council HACKNEY CARRIAGE MAXIMUM FARES From 07:00h until 23:00h (Normal Fare)

If the distance does not exceed 1609 metres (one mile) for the whole distance £3.70

For each subsequent 161 metres (1/10 mile) £0.27

Waiting time – for each period of one minute £0.30

EXTRA CHARGES Page 167 Page For hirings begun between 23:00h and 07:00h, the above rate + 50%

For hirings begun between 00:00h and 24:00h on Bank Holidays, the above rate + 100%

For hirings begun between 19:00h and 24:00h on Christmas Eve and New Years Eve, the above rate + 100%

For each person* in excess of two (*or two children under the age of 11) £0.70

Soiling charge £100 max

Any complaints regarding this vehicle or the driver should be addressed to: Licensing Section, South Lakeland District Council, South Lakeland House, Lowther Street, Kendal, LA9 4UD Telephone: 0845 050 4434 or E-mail: [email protected]

Mr D Sykes, Interim Corporate Director (Communities) Effective Date: 14 April 2014 This page is intentionally left blank

Page 168 Agenda Item 16

Allerdale Borough Council

Council – 2 March 2016

Recommendations Referred to Council

Conservation Areas Supplementary Planning Document

The following recommendation has been referred to Council by Executive held on the 22 February 2016. It is for Council to consider its response.

Recommended – That Council be requested to agree the wording of the Conservation Areas Supplementary Planning Document as contained in Appendix 1 of the report.

G Roach Democratic and Support Services Manager

Page 169 This page is intentionally left blank

Page 170 Allerdale Borough Council

Executive - 22 February 2016

Conservation Areas Supplementary Planning Document

The Reason for the Decision The purpose of the Conservation Areas Supplementary Planning Document (SPD) is to encourage improved design of new developments within conservation areas in order to avoid any further decline, and to encourage improvements, in the characters and appearances of our Conservation Areas.

Summary of options considered Options available to Members are - To endorse the wording of the SPD (attached in the appendix ) - To suggest changes to the document - To not endorse the SPD

Recommendations That Full Council formally adopts the wording of the Conservation Areas SPD contained in Appendix 1.

Financial / Resource Implications None

Legal / Governance Implications None

Community Safety Implications None

Health and Safety and Risk The Conservation Areas SPD will help to manage Management Implications the risk of further deterioration in the character and appearance of conservation areas in Allerdale.

Equality Duty considered / Impact An equality impact assessment screening has Assessment completed been carried out which has shown that a full assessment is not required.

Wards Affected All wards outside of the National Park which have conservation areas.

The contribution this decision would Enhancing our towns, Strengthening our make to the Council’s priorities economy, Improving our health and wellbeing

Is this a Key Decision Yes

Portfolio Holder Councillor Mark Fryer

Lead Officer Kevin Kerrigan, Head of Development Services [email protected] 01900 702799 Page 171 Report Implications (Please delete where applicable).

Community Safety N Employment (external to the Council) N Financial N Employment (internal) N Legal N Partnership N Social Inclusion N Asset Management N Equality Duty N Health and Safety N

1.0 Introduction

1.1 The Conservation Areas SPD provides guidance to the public and developers on what to consider when designing proposals for development in a conservation area. It is supplementary to the Allerdale Local Plan Part 1, in particular Policies S27 Heritage Assets, S4 Design Principles, DM10 Improvements to Public Realm, DM14 Standards of Good Design and, DM15 Extensions and Alterations to existing Buildings and Properties. As an adopted Supplementary Planning Document it would be a material consideration when determining planning applications.

2.0 Background Information

2.1 The draft SPD has been subject to consultation with all statutory consultees and interested parties. It was advertised in the local press and was available for comment for a six week period. Comments have been received from five bodies, including Historic England and the North of England Civic Trust. A summary of the comments received and how the document has been amended as a consequence is set out in appendix 2.

2.2 The SPD contains advice and guidance on the approach to be taken when considering and designing new development within a conservation area. The purpose is to try to ensure that the positive characteristics of our conservation areas are protected and that their characters and appearance are enhanced and not harmed, as is required by National Planning Policy Guidance (NPPF) and Allerdale Local Plan part 1 (2014) policies. The NPPF and Allerdale Local Plan have stricter conservation and design policies than previously, that requires all development to protect or enhance local character.

2.3 There has been some deterioration in the character and appearance of some of Allerdale’s conservation areas through the installation of inappropriate alterations to buildings and the design of new buildings which do not reflect the positive characteristics of the area. Three of Allerdale’s conservation areas have been designated by Historic England (formerly English Heritage) as being ‘at risk’ in 2015.

2.4 The SPD explains the importance of good design and what considerations need to be taken account of when designing new development in order to protect and enhance local character. These include; the history of the area, the wider landscape and local settings, topography and views, the existing pattern of development and spaces, streetscape, trees, architecture and development form, building materials and other architecturalPage 172 details. 2.5 A copy of the final version of the SPD is contained in Appendix 1 of this report.

3.0 Customer Satisfaction and Service

3.1 The document was sent to all statutory consultees and interested parties and has been advertised in the local press and was available for a six week period. Comments have been received from five bodies and where relevant, the comments have been taken into account and been included in the revised document.

4.0 Services Delivered as Locally as Possible

4.1 The advice given within the document will be used to inform the designs and the decisions made on local development proposals. As such the benefits of the document will be entirely local to the conservation areas concerned.

5.0 Finance/Resource Implications

5.1 None

6.0 Legal Implications and Risks

6.1 In addition to managing the risk of further deterioration in the character and appearance of the conservation areas in Allerdale, the SPD may also provide some mitigation against Corporate Risk 29 – Community opposition to further development. The adoption of this SPD would not result in additional risk of communities objecting to the principle of any development. There may be an increased chance of community members challenging the design of a proposed development based on some guidance contained with the SPD. However if the document is used as intended, to ensure that the design of new development respects the character and appearance of a conservation area, the risk of community opposition to development in conservation areas should be reduced.

7.0 Recommendations

7.1 That the wording of the Conservation Areas SPD contained in Appendix 1 is approved for adoption.

8.0 Conclusion

8.1 It is a requirement of the National Planning Policy Framework and of Allerdale Local Plan that characters of Conservation Areas are maintained and enhanced. It is also a Council Priority that we enhance our Towns.

8.2 It is considered that this document would help the above by providing guidance to designers and owners of land and buildings on how to achieve their aims whilst also enhancing the character and appearance of local areas to the benefit of the local communities and economies.

Kevin Kerrigan Head of Development Services Page 173 This page is intentionally left blank

Page 174 Appendix 1 Final version of Conservation Areas Supplementary Planning Document

Page 175 Conservation Areas SPD January 2016

Conservation Areas Supplementary Planning Document “AllerdalePage – a 176 great place to live, work and visit”

January 1 2016 Conservation Areas SPD January 2016

Page 177 2 Discussion Paper: January 2013 Conservation Areas SPD January 2016

Contents

Purpose and Introduction 4 1

Planning Context and Policy Background 6 2

General Guidance 7 3 - History - Setting - Landscape - Local setting - Topography and views - Development Pattern - Spaces and Landmarks - Streetscape - Trees - Architecture and Development Form - Materials - Architectural details

Allerdale’s Conservation Areas 22 4 - Main Towns - Coastal Settlements - Rural Villages - Other

Conclusions 28 5

Page 178 3 Conservation Areas SPD January 2016

Purpose and Introduction 1 Purpose

1.1 Conservation Areas bring considerable opportunities for regeneration, investment and tourism and retaining and enhancing their character is important to maintaining these economic advantages. The purpose of this Supplementary Planning Document (SPD) is to provide help and guidance to the public and developers when considering proposals for development in a Conservation Area, by assisting in identifying its main qualities and characteristics so that its ‘special interest’ can be protected and reinforced. If the main qualities and characteristics of a conservation area have been identified, then designing sympathetic and appropriate new development will be easier and will allow for the significance of the conservation area to be preserved and, enhanced as is required by National Guidance and Local Policy.

1.2 Most Conservation Areas have some buildings whose historic appearance has been lost or degraded by inappropriate coverings (such as pebble dash), and by insertion of windows of a style/opening method which do not fit the historic character of their building. The main towns all have areas where the quality of the public realm (i.e. public spaces such as roads, pavements and squares) does not adequately compliment the quality of their historic layouts and buildings. For example many areas could be significantly enhanced (and some have been) by reducing the amount of tarmac and replacing some of it with more traditional or natural paving materials.

Introduction

1.3 No one is surprised that the most popular and valuable housing areas and the most popular town centres are those which have a historic layout, historic buildings and a general historic ‘feel’.

1.4 Being a popular shopping and visitor destination provides huge economic benefits for the area, but protecting our historic assets is often seen as something we do for a greater good, rather than for economic benefit. Historic buildings are often seen by individual landowners and investors as harming the potential for economic growth, but the much poorer quality modern buildings that result when new ones take their place, often remove the long term economic benefits to the local area that would have existed if the historic building(s) were retained and converted, as they add quality, attractiveness and value to the area as a whole and in the long term.

1.5 Conservation area designation itself does not add value to an area, but maintaining and enhancing the quality of its buildings, features and public realm does add considerable long term value.

Page 179

4 Discussion Paper: January 2013

Conservation Areas SPD January 2016

1 Purpose and Introduction

1.6 Conservation Areas are legally defined as ‘areas of special architectural or historic interest, the character or appearance of which it is desirable to preserve or enhance’. They cover an area as a whole, including its roads and pavements, trees, open spaces and signs (although this list is not exhaustive) as well as its buildings.

1.7 Allerdale Borough Council is responsible for 21 Conservation Areas (those outside of the National Park) which cover the oldest parts of the Borough’s built environment and those with the most surviving and least spoilt historic fabric and character.

1.8 Allerdale’s main towns of Workington, Cockermouth, Maryport and Wigton all have important conservation areas, as do many of the smaller agricultural settlements and villages. Allerdale’s Conservation Areas (outside of the National Park) are:

• Allonby • Hayton • Torpenhow • Blennerhasset • Kirkbampton • West Curthwaite • Bowness • Maryport • West Newton • Caldbeck • Mawbray • Wigton • Cockermouth • Papcastle • Workington (St. Michaels, • Gamelsby • Port Carlisle Portland Square and • Greysouthen • Silloth Brow Top)

1.9 Each Conservation Area has its own special characteristics and significance with positive qualities as well as economic and physical challenges. However there are also some common characteristics and challenges that can be identified which exist in most conservation areas. The individual planning considerations and management aims of the conservation areas can be very similar, although the solutions to specific problems could be different.

1.10 More detailed historic descriptions and character appraisals exist for Maryport (draft) and West Newton. Cockermouth has a conservation and design guide Supplementary Planning Document (SPD) which includes a list of the key characteristics of the Conservation Area and Cockermouth and Wigton have (informal) Shopfront Guides. These are available on Allerdale’s website (or accessed through a search engine by putting the word ‘Allerdale in front of the name of the document you are interested in).

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Planning Context and Policy 2 Background

2.1 The need for Conservation Areas was first recognised in the planning process in the 1960’s, largely due to public outcries at some of the comprehensive redevelopments of the 1960s. Until then the only elements of our built environment that could be protected from demolition were listed buildings. But saving individual buildings did not protect streets or the wider context or setting and it was realised that this often lead to a complete loss of the building’s context and therefore its meaning and significance.

2.2 The legislation covering Conservation Areas is contained within the Planning (Listed Buildings and Conservation Areas) Act 1990. Section 72 of the Act requires Local Planning Authorities to pay special attention in the exercise of planning functions, to the desirability of preserving or enhancing the character and appearance of a conservation area.

2.3 The National Planning Policy Framework (NPPF), sets out the Government’s planning policies for England and how these are expected to be applied, and the conservation of heritage assets is one of its 12 core principles. The whole NPPF needs to be read together to understand the overall priorities, but Chapters 7 ‘Design’ and 12 ‘Conserving and Enhancing the Historic Environment’ set out the relevant principles and policies for new development (https://www.gov.uk/government/publications/national-planning-policy- framework--2)

2.4 Allerdale Local Plan (Part 1) - Strategic and Development Management Policies was adopted in July 2014. The main relevant policies are S4 ‘Design Principles’ and S27 ‘Heritage Assets’. However, the whole plan needs to be taken together to take account of all development principles and there are many other policies that may also be directly relevant to development in a Conservation Area including: S5 ‘Development Principles’; DM7 ‘Town Centre Development’; DM10 ‘Improvements to the Public Realm’; DM14 ‘Standards of Good Design’ and DM15 ‘Extensions and Alterations to Existing Buildings and Properties’.

2.5 Supplementary Planning Documents, such as this one, are designed to provide more detailed guidance and help on how to achieve compliance with adopted local planning policies. In this case it is for the benefit of the Conservation Areas and all who use them.

2.6 For some of the larger Conservation Areas, including Cockermouth, Maryport, Silloth, Wigton and Workington, Allerdale Borough Council has removed some of the ‘Permitted Development rights’ that normally allow alterations to houses without planning permission. This is done through ‘Article 4 Directions’; if you are altering a house within these areas, you should check whether or not an Article 4 Direction applies.

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3 General Guidance 3.1 The specifically relevant parts of the NPPF and Allerdale Local Plan (Part 1) as mentioned in Chapter 2, establish the basic principle that no application should be approved if it will cause harm to a conservation area, unless there is a public benefit to the proposals that will outweigh that harm.

3.2 This section contains guidance that will apply to all conservation areas and include processes that are required to be gone through, ideally, before anything is designed. If there is a character appraisal of the area, then this should be the starting point. If there is not, the first stage is to gain some understanding of the history, geography and character of the Conservation Area and what gives it its special qualities. Basic information about Conservation Areas is contained at: http://www.allerdale.gov.uk/planning-and-buildings/ planning/conservation/conservation-areas.aspx

History

3.3 There needs to be an understanding of the basic history of the area, the reason, or likely reason, for the development of the settlement in that location, its early industries and any subsequent industries that have been important to the economic base or physical development of the area as well as any other factors that have caused it to develop in the way that it has. It is not normally too difficult to identify the area containing the earliest surviving buildings, and then work out later stages of development from there.

Woods Map of Cockermouth 3.4 However, it takes more research to identify which buildings in an area were important to which industries and how they were used. If you are thinking of converting, demolishing, extending or obscuring any historic building, it is important that its original and later purpose(s) and history is understood so that the impact on its historic and/or architectural value can be understood and, if necessary, mitigated against, and recorded.

3.5 In order to assess the character of a conservation area, and to assess the effect a proposal will have on it, its setting, landscape, topography, views, development pattern, streetscape, development form, architectural style, materials and details all need to be taken into account. The following links may help in finding someone who can carry out appropriate assessments for you:

• www.aabc-register.co.uk • www.careregister.org.uk • www.buildingconservation.com/directory/prodlist.php? category=Conservation+planning+and+policy+consultants Page 182 7 Conservation Areas SPD January 2016

3 General Guidance Setting

Landscape

3.6 The wider, or landscape, setting of a conservation area and elements within it should be protected from substantial harm, as set out in the NPPF and Allerdale Local Plan.

Allonby with Scottish Hills behind Maryport North Quay with Scottish Hills behind

Cockermouth Brewery and hills to the south east Cockermouth Castle and Lake District Fells

3.7 The effect of any applications on the setting of the Conservation Area should be considered at the outset. An evaluation of the effects on setting will include changes to appearance and any views into, out of or within the Conservation Area. Changes can be positive; for example, by better revealing important views or attractive elements or by screening less attractive elements. If a proposal will cause any harm to the significance of a heritage in any way including by affecting its setting, then there will need to be a public benefit to the proposal that is considered to outweigh that harm if the application is to be approved. Historic England guidance ‘Historic Environment Good Practice Advice in Planning Note 3’ (March 2015) (https://www.historicengland.org.uk/images-books/ publications/gpa3-setting-of-heritage-assets/) is useful in explaining how impacts on setting should be evaluated.

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Local Setting

3.8 The landscape within, and immediately surrounding, the conservation area, often makes an important contribution to its historic context. The natural features such as coastlines and rivers may explain not only the origins of the settlement but the reasons why it has developed in the places and in the shapes that it has.

Rubby Banks, Town Hall and the River Cocker, Cockermouth

Allonby from the north

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Topography and Views

3.9 Topography is extremely important to how much and how a settlement is viewed from within and outside and as such is crucial to its setting and character. Viewing the area from the highest building or hills around will assist in understanding the topography and how any new development, in particular its roofscape, will fit in with it.

Maryport Harbour

Silloth with Scottish hills in the distance

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3 General Guidance

Development Pattern

3.10 Much of the character of a conservation area is derived from the evolution of the street pattern. In towns, there will be a hierarchy of streets relating to their commercial importance. Their historic role will have affected road width, average plot sizes and average number of building storeys, as well as the quality of materials and architectural design.

Historic Map of Wigton

3.11 Most larger settlements, including those which had regular markets, developed with a series of continuous terraces of buildings because the cost of land was high and because it was commercially advantageous to have uses in close proximity to each other. This leads to compact linear street patterns, which often provide an attractive rhythm of windows, roofs and chimneys.

Burnfoot/Market Hill, Wigton Brow Top, Workington

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3.12 New development should respect this pattern and fit traditional street frontage lines and patterns. This does not rule out contemporary architecture and detailing providing that it respects the traditional overall shapes, footprints and, usually, materials.

Contemporary architecture fitting street pattern, Parliament Street, York

3.13 On the other hand, smaller, more rural villages often developed as a cluster of farms which resulted in very ad-hoc frontages. This more random (visually at least) layout is just as important to a settlement’s individuality, and any new development should take account of this and not create formal or straight layouts that would dilute this Plan showing ad-hoc agricultural frontages in Westnewton important element of character.

3.14 Historically, town centre areas had a wide mix of uses within a densely packed area, which created very compact forms of development, built right onto the street (or yard) frontage and with very narrow frontages. These often result in a juxtaposition of building shapes and sizes with distinctive roofscapes which provide an interesting and unique character. These patterns are very important to recognise and reflect when designing new development and is something that is often overlooked particularly in rear streets and yard areas.

Burnfoot, Wigton

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3.15 Gaps and spaces, create patterns and sun/shade contrasts that contribute to the character of an area and gaps left either deliberately (e.g. for markets or for drying cloth or grazing animals) or left incidentally due to very specific building shapes, as well as back yards and lanes, are also very important to the feel of a place and these qualities should Important space in Allonby not be lost by new development patterns.

3.16 Development proposals should be appropriate to their site and should reflect approximate plot sizes and building heights as well as in how they address the frontage (e.g. building line, door position and size of openings).

Spaces and Landmarks

3.17 Public spaces and spaces between and around buildings and the views they allow can be the most identifiable and unique aspects of a conservation area and are important to consider before demolishing or building. Landmark buildings on corners and buildings such as churches, monuments and other large or unique buildings should not be obscured if at all possible. Conversely, the demolition of buildings that will reveal unattractive buildings or sites should be timed to coordinate with replacement buildings or with the tidying up of any site or building revealed by the demolition.

Cockermouth Brewery yard with landmark All Saints Church and Brewery chimney Page 188 1 3 Conservation Areas SPD January 2016

3 General Guidance Streetscape

3.18 The development pattern creates the backdrop of the streetscape. The streetscape itself is made up of the spaces between the buildings and how they look and feel. How they look and feel is affected by the size and shape of spaces, how they are enclosed the ground surface materials, the balance between road, pavement and green spaces as well as the colour and texture of the materials, the street furniture and any signs.

Fleming Square, Maryport Portland Square, Workington

Before and after upgrading and public realm works, Market Place, Cockermouth, showing how the feel of a place can be altered by different surface materials.

3.19 As well as the wider context of the whole street, smaller details such as traditional walls and railings, old gates, lampposts, drinking troughs, water fountains and boat fixings also provide context, setting and interest. Useful links include: • www.historicengland.org.uk/images-books/publications/streets-for-all-north-west/ • www.gov.uk/government/uploads/system/uploads/attachment_data/file/341513/ pdfmanforstreets.pdf

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3.20 Historic street signs, signposts, milestones, lampposts, post boxes etc. as well as historic adverts can add significantly to the character and significance of a conservation area. These should be retained wherever possible.

3.21 Modern standard highway signs, bollards, lighting columns, notice boards and litter bins can all create a cluttered appearance unless they are well designed and sited. Often many of these aren’t necessary and a ‘clutterbusting’ exercise can be undertaken to remove unattractive, redundant or unnecessary signs. This clearly needs to be undertaken in conjunction with the Town or Parish Council as well as Allerdale Borough Council and the County Council (as Highway Authority) to ensure that no statutory or important safety signs are removed.

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Trees

3.22 Trees are specifically protected by Conservation Area legislation, in recognition of their potentially very important contribution to the setting, character and significance of a Conservation Area.

3.23 As they vary in size and shape, colour and density throughout the year, their presence can be a dynamic and lively contribution to the character of a Conservation Area. In addition there are many less visual qualities and benefits of green spaces and vegetation, including the existence and experience of wildlife and associated sounds and smells as well as the opportunity for many leisure activities.

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3 General Guidance Architecture and Development Form

3.24 Conservation areas are by definition, areas that have a mixture of many of the qualities described above. But, the elements that are probably most consciously noticed or appreciated are the buildings themselves, their form, height, scale, materials, architectural style, surface articulation, colour and detailing. Useful links include: • www.historicengland.org.uk/images-books/publications/building-in-context • www.historicengland.org.uk/images-books/publications/constructive-conservation- sustainable-growth-historic-places/ https://historicengland.org.uk/images-books/ publications/valuing-places/

Market Place, Cockermouth Portland Square, Workington

Materials

3.25 Normally, all pre-C19, as well as most C19 buildings, were constructed from the most readily available local building material. This is because building materials were extremely expensive to transport before the arrival of the railways and even for quite a long time afterwards, it was only wealthy customers who would have materials imported from elsewhere and only for the more prestigious buildings.

Bowness on Solway Page 192 1 7 Conservation Areas SPD January 2016

3 General Guidance 3.26 The predominant use of local materials creates a unity and harmony with the surrounding landscape, as well as within the settlement that is rarely achieved by modern building materials.

Design

3.27 Building patterns and styles were also developed by local builders to be particularly suitable to the local materials and conditions. This is known as vernacular architecture. In smaller settlements, this continued until the early C20. From the C18, pattern books from early architects were available, but generally only to wealthy customers. In cities and market towns, some examples of ’polite’ architectural styles exist. These are usually banks, theatres, post offices, schools, libraries and other civic buildings. Carnegie Theatre, Workington 3.28 ‘Architecture’ is described as the art and science of designing buildings, and developed as the designing of a building became a separate process from the building process. The architectural profession as we would recognise it, started in the early C19 and the Royal Institute of British Architects was founded in 1834.

3.29 A high quality of design will always be expected for alterations and new developments in Conservation Areas. However, what is an appropriate high quality development in one conservation area or one part of a conservation area may not be acceptable in another, as local context and distinctiveness will determine what is appropriate where. Useful references are: • www.historicengland.org.uk/images-books/publications/building-in-context • www.historicengland.org.uk/images-books/publications/constructive-conservation- sustainable-growth-historic-places/ • www.historicengland.org.uk/images-books/publications/valuing-places/

Extension to Market Hall, Wigton Modern extension to Georgian townhouses in York Page 193 18 Discussion Paper: January 2013 Conservation Areas SPD January 2016

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Architectural Details

3.30 In addition to the form and style of architecture, it can be the small details of the architecture that can be the most varied between different Conservation Areas, and for that reason they are often very important in maintaining and creating distinctiveness and so should not, if at all possible, be removed or degraded.

3.31 Obvious examples are windows. As shown in these photos, the traditional buildings have all been retained, but the later windows and pebble dash render on one property adversely affects the character of this group of houses and this part of the Conservation Area.

King Street, Maryport, before and after re-instatement of original window details

Shipping Brow, Maryport before and after removal of C20 inappropriate windows and pebbledash

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3.32 In these shops in Cockermouth, the top sections of traditional shopfronts were covered by large boards, removing some of the detailing and elegant proportions. The removal of boards and reinstatement of the original details creates a much more pleasing effect and also allows more daylight in.

Before and after return to traditional shopfront proportions, Market Place, Cockermouth

3.33 Less obvious building details, but ones which are still very important to retaining local distinctiveness are shown below.

Decorative dentilles, bargeboards, and finials, Old bakery chimney, Allonby Cockermouth

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3.34 Unique architectural details contribute to character and distinctiveness:

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Allerdale’s Conservation 4 Areas

4.1 Most of Allerdale’s Conservation Areas fit within three broad categories: the main towns; (Workington, Cockermouth, Maryport and Wigton); the coastal settlements (Allonby, Silloth, Bowness and Port Carlisle) and the rural villages. Papcastle does not fit clearly within these categories.

4.2 Most of the surviving historic buildings in Allerdale are constructed of local sandstone, or rubble dressed with sandstone. There are many individually designed buildings, some such as churches and Pele Towers, as well as vernacular farm buildings or cottages which are many centuries old. From the late C18 onwards many buildings were built, or re-faced, in a local Georgian style of architecture, frequently consisting of a rendered facade with sliding sash windows (in straight rows and columns) with raised sandstone bands surrounding them. Until the mid C19, most roofs were covered with local ‘green’ Cumbrian slate. After this the railways brought in cheaper Welsh slate which started to be widely used.

4.3 As has been stated above, each of the Conservation Areas has its own pressures and physical problems, but there are some common problems that exist in many of them. For example many have buildings whose historic character has been harmed by inappropriate coverings (such cement render or pebble dash), and by the insertion of windows of a style/opening method which do not fit the character of the building. The main towns all have some areas where the materials and quality of the public realm (i.e. public spaces) does not adequately compliment the quality of their historic characters. .

4.4 A very basic outline of the main Conservation Areas (by category, in order of size of conservation area) is set out below. These do not comprehensively describe or evaluate the conservation areas and before any development proposals are put forward, an evaluation of the character of the conservation area and what is significant will be required as well as how the proposal will affect that significance (positively or negatively).

Main Towns

Cockermouth

4.5 Cockermouth’s Conservation Area encompasses most of the pre-C20 development in the town. Its medieval market town layout is very evident, particularly in the oldest parts including Market Place, Castlegate and Kirkgate, as well as parts of Main Street. Some of the buildings in this area have C17 and older elements behind the facades, and a very high proportion of buildings in this area are listed.

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4.6 From the late C18, the town developed larger industries, initially using water from the two main rivers. A number of the industrial buildings still exist converted (mostly to residential) which has maintained some of their character and an important link to the area’s history. Many Victorian terraces were developed on the, then, edges of town, particularly on the higher land to the south. Some of these are high quality terraces adorned with architectural detailing which adds significantly to the character of the conservation area.

4.7 Cockermouth’s historic character remains strong and is undoubtedly part of the reason why it is a very popular place to live and visit. One of the detractors from the character of the Conservation Area is the quantity of traffic travelling through its heart.

4.8 Until recently, some poorly designed shopfronts and shop signs were a notable detractor from the distinctiveness of the Conservation Area. However, work following the 2009 flood has significantly improved many of the formerly poor quality shopfronts in Main Street in particular, although a number of inappropriate shopfronts still exist in Station Street.

4.9 Much more information on Cockermouth’s conservation area is contained in the Conservation and Design guide, and is available at: http://www.allerdale.gov.uk/planning- and-buildings/planning/planning-policy/current-local-plan/supplementary-planning- documen/cockermouth-conservation-area.aspx. There is also a draft shopfront design guide which is available on request.

Maryport

4.10 A Roman fort was developed immediately to the north of the present town, the outlines of which are still very evident and are included within the Conservation Area boundary. A fishing village and port existed on the site of Maryport at the mouth of the Ellen until Maryport Town was created in its present form in the mid/late C18 by Humphrey Senhouse who built a new port and town (named after his wife Mary) on a grid plan on the high ground just inland of the harbour.

4.11 The Conservation Area is characterised, in part, by the harbour and C18/C19 buildings associated with it but it is centred around the new town which is made up of a shopping core and long terraces of mostly simple but well proportioned local Georgian style town houses, set along quite spacious hilly streets. On the northern side are some larger detached properties, with more elaborate architectural features. Fleming Square, surrounding a large cobbled square, is at the heart of this and provides a focus to the Georgian ‘new town’.

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4.12 Further east are Victorian terraces, which are quite different in style but reflect the grid lines of the earlier town and also contribute positively to the town’s character. This architecture and layout, together with the town’s spectacular setting above the port and views across the Solway, provides a spectacular and very distinctive character.

4.13 A significant problem faced by Maryport’s Conservation Area is the poor local economy and low land values, which means that building maintenance and improvements are not encouraged by good returns. As such, there is a notable lack of upkeep of some buildings including some prominent and historic buildings.

Wigton

4.14 Wigton is a medieval market town at the centre of a large agricultural area. Its churches and former market places give the town its layout, whilst its central streets remain its shopping centre. The town grew significantly in the early C19 with many industrial developments and this led to a large expansion of residential development, mostly in the local Georgian style.

4.15 Wigton has a number of institutional, public & ecclesiastical buildings within the Town Centre which provides a variety of architectural styles, which break up the predominance of Georgian fronted buildings in the centre. It also has some attractive small Victorian terraced housing with the Conservation area. Traffic still runs through the central streets and public realm and shopfront improvements could significantly improve the character of the Conservation Area.

Workington

4.16 Workington has three conservation areas: Portland Square, St. Michael’s and Brow Top.

Portland Square

4.17 This area on high land to the east of the current town centre, was designed and laid out by the Curwen Family of Workington Hall (just to the north) in the 1770s as residences and commercial properties. Its architectural style is Georgian with many townhouses of varying sizes set out in a grid around Portland Square, a long rectangular cobbled space.

4.18 Whilst the area is now very largely residential, much commercial activity occurred in the area from its construction and into the C20. Its retail heart is Wilson Street and Market Place, however limited commercial activity remains. At the eastern side of the Conservation Area are some large later Victorian residential villas. Some buildings in the

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St. Michael’s

4.19 St. Michael’s Conservation Area is named after the large St. Michael’s church at its northern edge which, together with St. Michaels’s school is set within an open area of grassland. These, together with St. Michael’s (former) rectory, form the historic core and much of the distinctive character of the Conservation Area. St. Michael’s was one of the first parts of Workington to be developed, however, the majority of the existing architecture is Victorian, built after the railway station which also provides a context and character to the Conservation Area. The area suffers from being dissected by two busy main roads as well as a lack of investment in its buildings and its public realm.

Brow Top

4.20 This area is essentially two streets running east-west back to back. Those with the greatest character are the houses on Brow Top. These face north and overlook a lower plateau which was estuary before the C17, and probably the reason for the first development of this site and its outlook. The buildings are C18 and C19 and range from large classical ‘villas’ and other large detached properties, reported to originally be home to sea captains and the like, to smaller terraced properties.

4.21 The south facing properties to the rear form the north side of Finkle Street, one of the Town’s shopping streets, and are dominated by their ground floor shop frontages. Control of the overgrown vegetation on the north side of Brow Top would enhance the quality of the local environment and may allow greater appreciation of the quality of the architecture. Improved shopfronts and associated signage would enhance the character of the Finkle Street side of the Conservation Area.

Coastal Settlements

Silloth

4.22 Silloth was built from 1856 as a Victorian seaside resort with a small deep water dock. It was served by a railway from Carlisle. Behind the beach and promenade is a strip of trees and The Green, a very large grassed area separating the town centre from the coast. The main part of the town was developed on a grid pattern and is fronted by Criffell Street which is set behind a wide cobbled street overlooking The Green. Criffell Street consists of large three storey Victorian buildings, many of which were designed as hotels. The Green and the impressive architecture fronting it provides a very distinctive Victorian Seaside Resort character which gives the impression of being a larger town than it is.

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Allonby

4.23 Allonby is set on a wide sweeping bay with extensive views south to Maryport and north to Dumfriesshire. It originated as a fishing and farming settlement with local services providing for farms further afield. It has strong Quaker links and a history of attracting wealthy incomers and benefactors, which has led to the construction of some interesting buildings in a variety of architectural styles. It has thrived into the C20 and C21 as a destination for holiday makers and day trippers as well as a desirable place to live.

Bowness on Solway

4.24 Bowness is the site of a Roman fort on Hadrian’s Wall on the banks of the Solway Estuary. Its C12 St Michael’s Church is thought be built on the granary of the Roman fort. It is the largest village on the western Solway Plain and has grown organically with much vernacular architecture including farm buildings, as well as later Victorian properties.

4.25 In 1869 a railway bridge was built to link Bowness to Annan in Scotland which linked into the Maryport to Carlisle line, but the bridge was considered to be unsafe and was demolished in 1934 soon after the railway closed. This may have reduced its use as a holiday destination, but it remains popular for day trips as well as for long distance cyclists and walkers following Hadrian's Wall.

Port Carlisle

4.26 Port Carlisle is one mile east of Bowness on Solway and was developed as a port in the early C19 in order that boats could dock and make their way by canal to Carlisle. Much of the large sandstone docking quay remains and is an essential part of the history and character of the Conservation Area. The canal was used until the 1850s after which the canal basin was turned into a railway line, which was operational until the1930s; the old sidings and station platform can still be seen.

4.27 Port Carlisle’s houses were built at the time of the construction of the canal in the early C19 mainly on one single sided street. The architecture is simple but very well proportioned and almost all of its buildings are listed. The village became a destination for day trip tourists from Carlisle and elsewhere, which is a function it still fulfils.

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Rural Villages

4.28 The remainder of Allerdale’s Conservation Areas (outside of the national park) are fairly small rural villages which developed around a number of traditional farms. Many of the villages are linear in their layout but a few are clustered around a village green. In addition to being a collection of farms, these villages were local centres which had shops, pubs and schools which also served outlying and more isolated farms. Much of the architecture is vernacular in origin, some with later additions or frontages added in a more polite, mostly Georgian, style. Many of the former farm buildings are purely residential now and some of the villages have few if any working farms. Schools, churches, pubs and shops still exist in some but others have no remaining local services. The main reasons for the loss of character and distinctiveness in most of these villages are the development of houses of generic modern design, that have not taken account of local characteristics. However, much character has also been lost by the inappropriate alteration of traditional buildings, such as by cement rendering or pebble dashing or the installation of inappropriate windows and doors. Sometimes such alterations can lead to the almost total loss of historic character of old buildings so that they are barely identifiable. The impact of individual inappropriate buildings can have a significantly adverse impact upon a small village.

Other

Papcastle

4.29 The Village of Papcastle contains the site and remains of a Roman fort. Its oldest buildings are related to its agricultural roots. In the early to mid C19, it developed as a wealthy Victorian suburb of Cockermouth, which is a function it still fulfils, but it retains the visual character of a distinctive settlement. Its positive characteristics derive from and include its position on a south facing slope looking towards the lake District fells, its organic layout, vernacular cottages and farm buildings as well as large Victorian houses, many mature trees and gardens.

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5 Conclusions

5.1 Whilst some Conservation Areas have economic and physical challenges, much research shows that attractive historic areas fare much better economically than settlements that are not valued for their historic layouts and assets.

5.2 National Guidance and Local Plan Policy require that no harm is caused to the character, appearance or significance of Conservation Areas (unless there is some overwhelming public benefit to offset that harm) in order that we don’t allow our conservation areas to deteriorate.

5.3 This guidance explains the important principles that need to be considered before it is possible to design buildings or other structures/features that will conserve or enhance the positive qualities of the area. It cannot simply explain what is appropriate or good design as that will vary considerably according to its local context.

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“AllerdalePage – a 204great place to live, work and visit”

2 9 Appendix 2 - Comments received to draft consultation document

Consultees North of England Historic England Papcastle Parish United Crosscanonby Response to Civic Trust Council Utilities PC comment

General Adoption of the SPD The document comes to an No The Parish An additional comments cannot replace the end rather abruptly, you could comments Council felt that Chapter has been need for an adopted introduce a paragraph to sum to make at Crosby should added to character appraisal for up what the reader should this stage be included in Summarise the each of the 21 have learnt from your SPD, but wish to the document. main purpose of the conservation areas. with a contact for further be included document. Crosby Appraisals are design and heritage advice. in any has not been fundamental to good further included as it is not area conservation as consultation a conservation they provide the . area. However Page 205 Page agreed reference many of the point for what it is that principles contained we are seeking to within the SPD are conserve relevant outside of conservation areas. Chapter 1 The document would Historic England supports the A sentence has be strengthened if a overall purpose of a generic been added to the paragraph was Conservation Area design beginning of para included which SPD for Allerdale. To 1.1 pointing out the covered the maximise its value we economic opportunities that recommend adding weblinks opportunities within conservation areas to best practice guidance to conservation areas bring e.g. for reinforce the points that are regeneration, being made. investment, tourism and community engagement Appendix 2 - Comments received to draft consultation document

Chapter 2 Para 2.2 You could summarise the Part The relevant II principles and LA duties at sections have been s69, 71, 72, 74 and 76, also added the grant making opportunities at s 77, 79 and 80 Para 2.3 Para 2.3 It would be A weblink to the relevant Added reference to worth mentioning that NPPF guidance would be NPPF core the conservation of useful principles at Para heritage assets is one 2.3 of the NPPF's 12 core principles (in Para 17)

Chapter 206 Page 3 Ppara 3.1 Readers might benefit from a This link has been link to the national register: added https://historicengland.org.uk/li sting/the-list/ and to contact details for the Cumbria HER

Para 3.2 In light of NPPF s128/129, it Links have been would be helpful to provide a added link to sources of professional advice to help understandwhat is meant by 'significance'. http://www.aabc- register.co.uk/, https://www.careregister.org.u k http://www.buildingconservatio n.com/directory/prodlist.php?c ategor Conser ation+plannin Appendix 2 - Comments received to draft consultation document

Para 3.4 Suggest adding Materials has been Materials to the list of added as a issues to be taken into separate section at account when Para 3.24 assessing the character of a site being affected by development. Para 3.6 It should be made Any harm has been clear that the principle added to the of public beneft relevant sentence outweighing harm for clarity. applies to development affecting

Page 207 Page a conservation area in any way rather than just affecting its Para 3.8 It would be worth Seeing History in the View Reference to mentioning that could be a useful link here: roofscape has been topography can have https//historicengland.org.uk/i added a strong influence on mages- the impact of a books/publications/seeing- development's history-view/ roofscape. Viewing a site from above due to topography increses the importance of understanding the character of the roofscape Appendix 2 - Comments received to draft consultation document

Para 3.13 It would be good to refer to A sentence has those contextual elements that been added help to define 'local distinctiveness' Para 3.14/3.16 Reference to the role and Reference to back value of snickets and ginnels yards and lanes (or their local names) could and the contribution usefully be added here, along of sun/shade with a few words about design contrasts has been for legibility (landmark corners, added. signalling entrances etc). I also recommend adding a

Page 208 Page paragraph on the significance of 'back of pavement' development especially in the urban context and designing for light and shadow (understanding the sun's path and the delight of shadow on articulated facades - recessed doors and windows etc). Appendix 2 - Comments received to draft consultation document

Para 3.17 I suggest you emphasise the importance of understanding the relationshipbetween building height and the width of space(s) (street/plot ratios) and how this proportion can change the overall sense of enclosure and feeling of a place. The image of Fleming Square is a good one; would an image of Portland Square be useful to illustrated the Para 3.19 I advise removing 'unless they unless they are are causing a particular causing particular

Page 209 Page problem' from this paragraph. I problems' has been recommend adding these web removed links to your streetscape section: https://historicengland.org.uk/i mages- books/publications/streets-for- all-north-west/, http://www.rudi.net/files/paper/ optional_files/WEB_Creating_I nspiring_Spaces_Low_res_0. pdf, http://www.gov.uk/government /publications/manual-for streets-2 Appendix 2 - Comments received to draft consultation document

Para 3.23 Last sentence I suggest The suggested revising to say "..their form, wording and links height, scale, materials, have been added. architectural style, surface articulation, colour and detailing." Para 3.28 A useful point here to refer to The suggested CABE/HE building in context references have guidance. been added. http://historicengland.org.uk/im ages- books/publications/building-in-

Page 210 Page context, https://historicengland.org.uk/i mages- books/publications/constructiv e-conservation-sustainable- growth-historic-places/, https://historicengland.org.uk/i mages- Chapter 4 Recommend taking the Further references opportunity to say more about to problems and design and development ambitions for ambitions for each of the CAs. specific For example any good conservation areas planning approvals that have been added. haven’t been built or aspirational enhancement/development projects that could be illustrated or promoted e.g. Appendix 2 - Comments received to draft consultation document

Para 4.1 Pleased that Noted Papcastle has been identified seperately. Para 4.4 The message in para Some of this has 4.4 is one of the most been added at 1.1. important in the document and I suggest it is worth highlighting it in some way to strengthen its importance to development management

Page 211 Page decisions. Para 4.13 Perhaps the economic/market A new Conclusion issues refered to affect other has been added Town Centre CAs. Could you which outlines how end on a positive note. positive current guidance and policies are. Appendix 2 - Comments received to draft consultation document

Para 4.29 The document The text has been states that corrected and Papcastle is added to where adjacent to the relevant. Relevant site of the Roman policies are Fort. The Fort is contained within the inside Papcastle. Local Plan. The Village developed with large early Victorian houses. Its character should be Page 212 Page retained by not allowing its boundaries to extend and merging, in particular with Agenda Item 17

Allerdale Borough Council

Council – 2 March 2016

Changes to Committee Memberships and Joint Advisory Committee Representation

The Reason for the Decision To approve changes to the memberships of the Audit Committee, Corporate Overview and Scrutiny Committee, Development Panel and Licensing Committee following the resignation of Colin Sharpe as Councillor, Councillor Bill Pegram’s resignation from the Corporate Overview and Scrutiny Committee and the passing of Councillor Bill Bacon.

To appoint a Member to serve as the Council’s representative on the Solway Coast AONB Joint Advisory Committee until 18 May 2016 following the passing of Councillor Bill Bacon.

Summary of options considered a) To appoint Councillor representatives

b) Not to appoint Councillor representatives

Recommendations 1. That Councillor Adrian Davis-Johnston be appointed to the Audit Committee

2. That Councillor John Cook be appointed to the Corporate Overview and Scrutiny Committee

3. That nominations be sought from the Labour group to appoint a Member to the Corporate Overview and Scrutiny Committee

4. That nominations be sought from the Labour group to appoint a Member as a reserve on the Development Panel

5. That nominations be sought from the Labour group to appoint a Member to the Licensing Committee

6. That nominations be sought to appoint a Member to serve as the Council’s representative on the Solway Coast AONB Joint Advisory Committee

Page 213 Financial / Resource Implications Travel and subsistence will be met from within the existing budget.

Legal / Governance Implications The Council operates on the basis that appointments to Committees are made by Council and in accordance with the politically proportionality provisions of the Local Government and Housing Act 1989.

Community Safety Implications There are no community safety implications arising from this report.

Health and Safety and Risk There are no health and safety and risk Management Implications management implications arising from this report.

Equality Duty considered / Impact The Equality Duty has been considered. Assessment completed

Wards Affected All

The contribution this decision would Representation on committees clearly defines make to the Council’s priorities roles and responsibilities and enhances accountability.

Is this a Key Decision No

Portfolio Holder Councillor Barbara Cannon

Lead Officer Dean Devine Democratic and Support Services Officer 01900 702556 [email protected]

Report Implications

Community Safety N Employment (external to the Council) N Financial N Employment (internal) N Legal N Partnership N Social Inclusion N Asset Management N Equality Duty N Health and Safety N

1.0 Introduction

1.1 Colin Sharpe resigned as a Councillor on 20 January 2016. He was a member of the Audit Committee and the Corporate Overview and Scrutiny Committee.

Page 214 1.2 Councillor Bill Pegram resigned from the Corporate Overview and Scrutiny Committee on 26 January 2016.

1.3 Councillor Bill Bacon passed away on 28 January 2016. He was a reserve member of the Development Panel and a member of the Licensing Committee.

1.4 As a result of the above, the membership of the Audit Committee currently stands at 6/7; the Corporate Overview and Scrutiny Committee membership currently stands at 10/12, the Licensing Committee membership currently stands at 14/15 and there is currently only one Labour Member appointed as a reserve on the Development Panel.

1.5 Councillor Bill Bacon had been appointed as a representative on the Solway Coast AONB Joint Advisory Committee, to serve until 18 May 2016. A new Member will need to be appointed to the Joint Advisory Committee to serve as a representative of the Council until 18 May 2016.

2.0 Committee Memberships

2.1 Following Colin Sharpe’s resignation, the Conservative group are asked to nominate a Member to be appointed to the Audit Committee and a Member to be appointed to the Corporate Overview and Scrutiny Committee in accordance with the politically proportionate provisions of the Local Government and Housing Act 1989.

2.2 Following Councillor Bill Pegram’s resignation, the Labour group are asked to nominate a Member to be appointed to the Corporate Overview and Scrutiny Committee in accordance with the politically proportionate provisions of the Local Government and Housing Act 1989.

2.3 Following the passing of Councillor Bill Bacon, the Labour group are asked to nominate a Member to be appointed as a reserve on the Development Panel and a Member to be appointed to the Licensing Committee in accordance with the politically proportionate provisions of the Local Government and Housing Act 1989.

3.0 Nominations to Committee Memberships

3.1 The Conservative group have nominated Councillor Adrian Davis-Johnston to be appointed to the Audit Committee.

3.2 The Conservative group have nominated Councillor John Cook to be appointed to the Corporate Overview and Scrutiny Committee.

3.3 Nominations are sought from the Labour group to appoint a Member to the Corporate Overview and Scrutiny Committee.

3.4 Nominations are sought from the Labour group to appoint a Member as a reserve on the Development Panel.

Page 215 3.5 Nominations are sought from the Labour group to appoint a Member to the Licensing Committee.

4.0 Nominations to Solway Coast AONB Joint Advisory Committee

4.1 Nominations are sought from Council for a Member to be appointed to serve as the Councils representative on the Solway Coast AONB Joint Advisory Committee.

5.0 Recommendations

5.1 That Councillor Adrian Davis-Johnston be appointed to the Audit Committee

5.2 That Councillor John Cook be appointed to the Corporate Overview and Scrutiny Committee

5.3 That nominations be sought from the Labour group to appoint a Member to the Corporate Overview and Scrutiny Committee

5.4 That nominations be sought from the Labour group to appoint a Member as a reserve on the Development Panel

5.5 That nominations be sought from the Labour group to appoint a Member to the Licensing Committee

5.6 That nominations be sought to appoint a Member to serve as the Council’s representative on the Solway Coast AONB Joint Advisory Committee

Sharon Sewell Head of Governance and Monitoring Officer

Page 216 Agenda Item 18

Allerdale Borough Council

Council – 2 March 2016

Calendar of Meetings

The Reason for the Decision To consider and approve the calendar of meetings from June 2016 to December 2017

Summary of options considered None

Recommendations That the calendar of meetings for the period of June 2016 to December 2017 be approved

Financial / Resource Implications Members allowances, mileage etc for which there is budgetary provision

Legal Implications None

Community Safety Implications None

Health and Safety and Risk None Management Implications

Equality Duty considered / Impact The Equality Duty has been considered Assessment completed

Wards Affected All wards

The contribution this decision would High performing services that meet make to the Council’s priorities community needs and deliver value for money

Is this a Key Decision No

Portfolio Holder Councillor Barbara Cannon

Lead Officer Gayle Roach, Democratic and Support Services Manager – 01900 702817 [email protected]

Report Implications (Please delete where applicable).

Community Safety N Employment (external to the Council) N Financial Y Employment (internal) N Legal N Partnership N Social Inclusion N Asset Management N Equality Duty N Health and Safety N

Page 217 1.0 Introduction

1.1 Council committee meetings were last agreed by Council on 10 September 2014 with dates running to May 2016, June 2016 for some committees.

1.2 Members are therefore requested to consider the below calendar of meetings, which covers the period June 2016 to December 2017.

1.3 Meetings not included in the suggested dates will be arranged as and when required.

2.0 Suggested Meeting Dates

Council

2016 Wednesday 20 July Wednesday 21 September Wednesday 16 November 2017 Wednesday 18 January Wednesday 1 March Wednesday 17 May (AGM) Wednesday 19 July Wednesday 20 September Wednesday 15 November

Executive

2016 Wednesday 13 July Wednesday 7 September Wednesday 5 October Wednesday 2 November 2017 Wednesday 11 January Wednesday 15 February Wednesday 8 March Wednesday 5 April Wednesday 10 May Wednesday 7 June Wednesday 12 July Wednesday 6 September Wednesday 4 October Wednesday 1 November

Page 218 Audit Committee

2016 Monday 15 August Monday 26 September Monday 28 November 2017 Monday 13 February Monday 8 May Friday 30 June Monday 21 August Monday 25 September Monday 27 November

Community Overview & Scrutiny

2016 Friday 22 July Friday 23 September Friday 25 November 2017 Friday 20 January Friday 24 March Friday 19 May Friday 21 July Friday 22 September Friday 24 November

Corporate Overview & Scrutiny 2016 Friday 19 August Friday 21 October Friday 16 December 2017 Friday 24 February Friday 21 April Friday 23 June Friday 25 August Friday 20 October Friday 15 December

Development Panel 2016 Tuesday 5 July Tuesday 26 July Tuesday 16 August Tuesday 6 September

Page 219 Tuesday 27 September Tuesday 18 October Tuesday 8 November Tuesday 29 November Tuesday 20 December

2017 Tuesday 17 January Tuesday 7 February Tuesday 28 February Tuesday 21 March Tuesday 11 April Tuesday 2 May Tuesday 23 May Tuesday 13 June Tuesday 4 July Tuesday 25 July Tuesday 15 August Tuesday 5 September Tuesday 26 September Tuesday 17 October Tuesday 7 November Tuesday 28 November Tuesday 19 December

Licensing Committee

2016 Thursday 21 July Thursday 20 October 2017 Friday 27 January Thursday 20 April Thursday 20 July Thursday 19 October

3.0 Finance/Resource Implications

3.1 Travel / subsistence would be met from existing budget provision.

4.0 Recommendations

4.1 That the calendar of meetings for the period of June 2016 to December 2017 be approved.

Sharon Sewell Head of Governance and Monitoring Officer

Page 220 Agenda Item 19 Allerdale Borough Council

Council – 2 March 2016

Pay Policy Statement

The Reason for the Decision The Pay Policy Statement sets out the Council’s approach to pay policy in accordance with the requirements of Section 38 of the Localism Act 2011.

Summary of options considered N/A

Recommendations That Council approves the Pay Policy Statement.

Financial/Resource Implications All financial implications are included in the report.

Legal Implications All legal implications are included in the report.

Community Safety Implications N/A

Health and Safety and Risk N/A Management Implications

Equality Duty considered/Impact Yes Assessment completed

Wards Affected All

The contribution this decision would The statement provides transparency with make to the Council’s Strategic regard to the Council’s approach to setting Priorities the pay of its employees.

Is this a Key Decision Yes

Portfolio Holder Councillor Barbara Cannon

Lead Officer Ian Frost, Chief Executive, 01900 702975, [email protected]

Report Implications (Please delete where applicable).

Community Safety N Employment (external to the Council) N Financial Y Employment (internal) Y Legal Y Partnership N Social Inclusion Y Asset Management N Equality Duty Y Health and Safety N

Page 221

Background papers ……………………………………………………………………………… ______

1. Introduction and Purpose Under section 112 of the Local Government Act 1972, the Council has the “power to appoint officers on such reasonable terms and conditions as the authority thinks fit”. This Pay Policy Statement (the ‘statement’) sets out the Council’s approach to pay policy in accordance with the requirements of Section 38 of the Localism Act 2011.

The purpose of the statement is to provide transparency with regard to the Council’s approach to setting the pay of its employees by identifying;

 the methods by which salaries of all employees are determined;  the detail and level of remuneration of its most senior staff i.e. ‘chief officers’, as defined by the relevant legislation;  the Chief Officer’s Employment Panel and the Chief Executive (as the Head of Paid Service) are responsible for ensuring the provisions set out in this statement are applied consistently throughout the Council and recommending any amendments to the Council.

Once approved by the Council, this policy statement will come into immediate effect and will be subject to review on a minimum of an annual basis, the policy for the next financial year being approved by 31st March each year.

The introduction of the Code of Practice for Local Authority on Data Transparency 2013 places additional duties on Local authorities in terms of publication of pay details which are included in the document. The Code also requires the publication of Trade Union Facility Time and the annual publication of organisation structure charts which are contained in Appendix 1.

2. Other legislation relevant to pay and remuneration In determining the pay and remuneration of all of its employees, the Council will comply with all relevant employment legislation. This includes legislation such as the Equality Act 2010, Part Time Employment (Prevention of Less Favourable Treatment) Regulations 2000 and where relevant, the Transfer of Undertakings (Protection of Earnings) Regulations 2006.

The Trade Union Bill (2015/2016) may introduce further changes in relation to reporting on trade union time.

The Council ensures there is no pay discrimination within its pay structures and that all pay differentials can be objectively justified through the use of job evaluation mechanisms, which directly establish the relative levels of posts in grades according to the requirements, demands and responsibilities of the role.

3. Pay and Grading Structure The Council uses the nationally negotiated pay spine (i.e. a defined list of salary points) as the basis for its local pay structure, which determines the salaries of its employees (published on the intranet). The actual salary levels for each post other than Chief Officers are determined by reference to the Council’s Job Evaluation Scheme. This is a national scheme and is covered by the Grading of Posts Policy (currently under review). In light of the National Living Wage which is due to be introduced from April 2016, this will impact on other scp within the Councils pay Page 222

scale. The Council is awaiting the outcome of the national negotiations regarding the NJC pay award 2016-18.

The Council adopts the national pay bargaining arrangements in respect of the establishment and revision of the national pay spine, for example through any agreed annual pay increases negotiated with joint trade unions.

All other pay related allowances are the subject of either nationally or locally negotiated rates, having been determined from time to time in accordance with collective bargaining machinery.

In determining its grading structure and setting remuneration levels for any posts which fall outside its scope, the Council takes account of the need to ensure value for money in respect of the use of public expenditure, balanced against the need to recruit and retain employees who are able to meet the requirements of providing high quality services to the community, delivered effectively and efficiently and at times at which those services are required.

New appointments will normally be made at the minimum of the relevant pay scale for the grade, although this can be varied where necessary to secure the best candidate. Where the appointment salary is above the minimum point of the pay scale this will be within the discretion of the appointing officer applies under the Recruitment and Selection Policy.

From time to time it may be necessary to take account of the external pay levels in the labour market in order to attract and retain employees with particular experience, skills and capacity. Where necessary, the Council will ensure the requirement for such is objectively justified by reference to clear and transparent evidence of relevant market comparators, using data sources available from within the local government sector and outside, as appropriate, in accordance with the Market Factor Supplement Policy.

Any temporary supplement to the salary scale for the grade is approved in accordance with the Pay and Reward Policy.

All employees are covered by the National Joint Council Agreement on Pay and Conditions of Service except for Chief Officers who are covered by a separate National Joint Council Agreement for Chief Officers of Local Authorities.

Salary levels for Chief Officers were set by Council after consideration of an independent review which was undertaken externally by North West Employers Organisation (NWEO) in 2012. The determination of any new salary structure is undertaken in accordance with the guidance produced by the Joint Negotiating Committees for Chief Executives and Chief Officers which says that when deciding the level of remuneration the following factors should be considered:  The Chief Executive’s salary and that of senior staff not covered by the Chief Officers’ JNC;  Any special market considerations;  Any substantial local factors not common to authorities of similar type and size.  Comparative salary information from other similar authorities;  Top management structures and the size of the management team compared to those of other authorities of similar type and size;  The relative job size of each post, as objectively assessed. Page 223

There is no separate provision for Chief Officers in relation to the Council’s general employment policies and statements. Arrangements for Chief Officers are dealt with in accordance with the Council’s ordinary policies.

4. Senior Management Remuneration Details of the senior management remuneration are included below:

Job Title Points Salary Chief Executive 1 £100,000 Corporate Director** 3 £72,450, £74,460, £76,500 Heads of Service** 3 £45,900, £47,940, £49,980

** An individual’s progression through the relevant pay scale is annual increments subject to satisfactory performance.

Returning Officer The designation of the Returning Officer currently sits with the Corporate Director. The Council is required to provide funding to the Retuning Officer to discharge statutory functions relating to the administration of local government elections. The Returning Officer will make payments to those officers who undertake specific duties in relation to the elections in accordance with their role.

Monitoring Officer and Deputy The designation of the Monitoring Officer currently sits with the Head of Governance. The Monitoring Officer is paid on the normal salary for a Head of Service, with an additional 10% annual allowance in recognition of their particular statutory responsibilities.

Section 151 Officer and Deputy The designation of the Section 151 Officer currently sits with the Head of Financial Services. The Section 151 Officer is paid on the normal salary for a Head of Service, with an additional 10% annual allowance in recognition of their particular statutory responsibilities.

The Council is currently awaiting confirmation of the pay award for Chief Officers and Chief Executives.

Further details are published in the Council’s Annual Statement of Accounts.

5. Recruitment of Chief Officers The Council’s policy and procedures with regard to recruitment of Chief Officers is set out within section 8.5 of the Constitution.

When recruiting to all posts the Council will take full and proper account of all provisions of relevant employment law and its own equal opportunities in Recruitment & Selection, and Change Management Policy.

The determination of the remuneration to be offered to any newly appointed Chief Officer will be in accordance with the pay structure and relevant policies in place at the time of recruitment.

Page 224

6. Additions to Salary of Chief Officers With the exception of progression through the incremental scale of the relevant grade being subject to satisfactory performance, which is assessed on an annual basis.

To meet specific operational requirements it may be necessary for an individual to temporarily take on additional duties to their identified role. The Council’s arrangements for authorising any additional remuneration (e.g. honoraria, ex gratia, ‘acting up’) relating to temporary additional duties are the same for all officers and are set out in the Acting up, Honorarium & Secondment Policy.

In addition to basic salary, the following posts receive additional pay as set out below;

Post / Tier of post Payment details Corporate Director The designation of Returning Officer is made by Full Council and currently sits with the Corporate Director.

The fees paid for Returning Officer services are as follows :

In accordance with the national agreement the Returning Officer is entitled to receive and retain the personal fees arising from performing the duties of the RO, ACT, DRO or DARO and similar position which they perform subject to the payment of pension contributions thereon, where appropriate.

In respect of Borough and Parish Council elections the fee is based on a calculation of £100 per Borough Ward and £100 per contested parish.

Fees for elections duties for other elections (County Council, National and European, etc.) are paid as an additional sum at the rate prescribed by government as and when they arise, they are distinct from the process for the determination of pay for Chief Officers.

Some officers may attract a supplement for deputy returning officer duties Statutory Officers Salary supplements payable for fulfilling statutory officer duties (e.g. S151 / MO)

Chief Executive The Chief Executive and Corporate Directors are Corporate Director designated as essential car users and receive a payment in line with the policy.

7. Bonus Payments The Council does not operate any variable pay or bonus schemes.

Page 225

8. Pension Contributions Where employees have exercised their statutory right to become members of the Local Government Pension Scheme, the Council is required to make a contribution to the scheme representing a percentage of the pensionable remuneration due under the contract of employment of that employee. The rate of contribution is set by Actuaries advising the Cumbria Pension Fund and reviewed on a triennial basis in order to ensure the scheme is appropriately funded. The proposed rate to be used in the financial year 2016/17 is 12.6%.

The employee contribution rates are based on actual pensionable pay as detailed in the table below. These rates are published each year. At time of publication of this pay policy, the 2016/17 rates have not been published.

Contribution table 2015/16 Actual Pensionable Pay Employee contribution rate £ Up to £13,600 5.5% £13,601 - £21,200 5.8% £21,201 - £34,400 6.5% £34,401 - £43,500 6.8% £43,501 - £60,700 8.5% £60,701 - £86,000 9.9% £86,001 - £101,200 10.5% £101,201 - £151,800 11.4% £151,801 or more 12.5%

9. Payments on Termination The Councils approach to statutory and discretionary payments on termination of employment of Chief Officers, prior to reaching normal retirement age, is the same as for all employees set out within its Pension Discretion Policy in accordance with Regulations 5 and 6 of the Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations 2006 and Regulation 12 of the Local Government Pension Scheme (Benefits, Membership and Contribution) Regulations 2007.

Any payments falling outside these provisions or the relevant periods of notice within the contract of employment shall be subject to a formal decision made by the Head of Paid Service, or the Chief Officers Employment Panel in line with the Councils constitution.

10.Pay Analysis

Median Salary This calculation is made including all staff within the paid services of the Council, including the Chief Executive. The median salary using the December 2015 payroll was £24,472. This is based on a staffing number of 259 and total remuneration of £6,625,035.00 (based on all posts at their full-time equivalent rate).

Lowest paid employees Using December 2015 payroll data, the lowest paid employee was on a salary of £13,614, however the Council pays the Living Wage which is currently £8.25 per hour. This means that the lowest employee is actually paid £15,915 per annum.

Page 226

Apprentices are appointed to Allerdale Borough Council on the living wage (currently £8.25).

Pay Multiple The relationship between the rate of pay for the lowest paid and Chief Officers is determined by the processes used for determining pay and grading structures as set out earlier in this policy statement.

The average full time salary throughout the Authority is £25,678, with the highest salary being £100,000 per annum. Therefore, the ‘pay multiple’, the ratio between the highest paid salary and the median average salary (£24,472) of the whole of the authority’s workforce, is 1:4 (as at December 2015).

As part of its overall and ongoing monitoring of alignment with external pay markets, both within and outside the sector, the Council will use available benchmark information as appropriate. In addition, upon the annual review of this statement, the Council will also monitor any changes in the relevant ‘pay multiples’ and benchmark against other comparable local authorities.

11.Trade Union Facility Time There are currently seven employees who are official union representatives. The union that is represented in the Council is Unison.

The Code of Practice on Data Transparency 2013 requires that Councils produce a basic estimate of time spent on union activities. Representatives are currently not asked to record the amount of time that they spent on union activities, No union representation spends 50% of their time consistently every week on trade union activities, however, a basic estimate as a proportion of the total pay bill is 0.43% (£28,035 divided by total pay bill x 100).

12.Publication Upon approval by the Full Council, this statement will be published on the Council’s website.

13.Accountability and Decision Making In accordance with the Constitution of the Council, the Head of Paid Service, Chief Officer Employment Panel and Council are responsible for decision making in relation to the recruitment, pay, terms and conditions and severance arrangements in relation to Chief Officers of the Council.

14.Re-employment/Re-engagement of former Chief Officers The Council will not normally employ or engage under a contract of service Chief Officers who have previously received a redundancy or severance payment or who are in receipt of a pension under the Local Government Pension Scheme.

The previous government passed legislation (Small Business, Enterprise & Employment Act 2015), to prevent highly paid individuals who return to the public sector within 12 months of exit from retaining their full exit payment. This measure will take effect from April 2016 and will ensure that the taxpayer is not unduly compensating an individual for loss of employment only for them to return to the public sector within one year.

The government is taking forward changes that mean that no public sector exit payment can be more than £95,000. Page 227

15. Proposed changes from last adopted policy This Pay Policy Statement includes some proposed changes in section 4 and section 14. These include:

 Section 151 and Monitoring Officer – currently paid an annual allowance of £2000. Proposal to increase this to 10% of salary (up to £4,998), as comparative salaries of roles with statutory duty are considerably higher than Allerdale Borough Council’s Head of Service.

 Cap on public sector exit payment (section 14).

Ian Frost Chief Executive

Page 228

Allerdale Borough Council Organisation Structure

Chief Executive Monitoring Officer Permanent Section 151 Officer [email protected] £100,000 Net budget £418,430 (CMT budget) X3 staff

PA to the Chief Executive

Corporate Director Permanent PA to the [email protected] PA to the Corporate Director £72,450 - £76,500 Corporate Director Page 229 Page Net budget (see above CMT budget) AONB

Head of Head of Head of Head of Head of Head of Head of Head of Customer People Financial Services Governance Housing and Community Economic Development Transformation Resources Permanent Permanent Health Services Growth Services & (shared role with Catherine.nicholson Sharon.sewell@ Permanent Permanent Temporary Permanent Commissioning Copeland) @allerdale.gov.uk allerdale.gov.uk Graeme.wilson@all Charles.holmes@a Nik.hardy@allerda Kevin.kerrigan@aller Permanent Permanent erdale.gov.uk llerdale.gov.uk le.gov.uk dale.gov.uk Paul.wood@allerd Zoe.pluckrose@ £45,900 - £49,980 £45,900 - £45,900 - £49,980 £45,900 - £49,980 £45,900 - £49,980 £45,900 - £49,980 ale.gov.uk allerdale.gov.uk (Plus 10%) £49,980 Net budget Net budget Net budget Net budget £45,900 - £49,980 Net budget (Plus 10%) £1,061,675 £4,137,960 £660,281 £412,190 Net budget £45,900 - £49,980 £6,372,662 Net budget X33 X34 staff X7 staff Net budget £2,661,201 X35 staff £1,180,150 Museums X33 staff X102 staff £519,014 X18 staff Housing Strategy Arts & Leisure Economic Development X4 staff Financial Services and Research Streetscene Development Management Customer Insight Payroll Democratic Private Sector Parks and Open Town Centre Planning Policy and Services Human Resources Business Continuity Services Housing Spaces Management Planning Information Building Cleaning Legal Services Housing Options Grounds Markets Conservation Management Leadership and Public Conveniences Audit and Homelessness Maintenance Tourism Building Control Corporate Project Talent Coast Protection Licensing Environmental Refuse Collection Development Management Drainage Land Charges Health and Recycling Corporate Estate Policy and Asset Management Risk Corporate Health Pest Control Management Communications Insurance Management and Safety Sports ICT Emergency Development Procurement & Planning Nuclear Commissioning Car Parking

Page 230 Page