Public Document Pack

SOUTH LAKELAND DISTRICT COUNCIL South Lakeland House, Kendal, Cumbria LA9 4UQ www.southlakeland.gov.uk

You are summoned to attend a meeting of the Council on Tuesday, 18 December 2018, at 6.30 p.m. in the District Council Chamber, South Lakeland House, Kendal Please note that a Budget Briefing for Members will be held between 4.30 p.m. and 5.45 p.m. in the Assembly Room, Kendal Town Hall. For those who wish to attend, Prayers will be said in the District Council Chamber at 6.20 p.m.

Membership Councillors

Caroline Airey Alvin Finch Helen Ladhams James Airey Gill Gardner Kevin Lancaster Giles Archibald Anne Hall Pete McSweeney Robin Ashcroft Tom Harvey Ian Mitchell Rupert Audland Eamonn Hennessy Eric Morrell (Chairman) Pat Bell Hazel Hodgson Jon Owen Ben Berry Chris Hogg Doug Rathbone Roger Bingham Rachael Hogg Vivienne Rees Matt Brereton John Holmes Amanda Rigg Jonathan Brook Kevin Holmes Matt Severn Andrew Butcher Vicky Hughes Peter Thornton Sheila Capstick Anne Hutton Graham Vincent Stephen Coleman (Vice-Chairman) Helen Irving David Webster Brian Cooper Andrew Jarvis David Williams Michael Cornah Janette Jenkinson Mark Wilson Tracy Coward Dyan Jones Shirley-Anne Wilson Philip Dixon Dave Khan

Note – Where relevant, agendas for Members are labelled “Private Document Pack” and contain exempt information within the papers. Any relevant pages are marked as restricted within Agendas labelled “Public Document Pack”.

Friday, 7 December 2018

Debbie Storr, Director of Policy and Resources (Monitoring Officer)

For all enquiries, please contact:- Committee Administrator: Inge Booth Telephone: 01539 793190 e-mail: [email protected]

Roll Call : Apologies

AGENDA

Page Nos. PART I

1 MINUTES 7 - 20 To authorise the Chairman to sign, as a correct record, the minutes of the meeting of the Council held on 10 October 2018. 2 DECLARATIONS OF INTEREST To receive declarations by Members of interests in respect of items on this Agenda.

Members are reminded that, in accordance with the revised Code of Conduct, they are required to declare any disclosable pecuniary interests or other registrable interests which have not already been declared in the Council’s Register of Interests. (It is a criminal offence not to declare a disclosable pecuniary interest either in the Register or at the meeting.)

Members may, however, also decide, in the interests of clarity and transparency, to declare at this point in the meeting, any such disclosable pecuniary interests which they have already declared in the Register, as well as any other registrable or other interests.

If a Member requires advice on any item involving a possible declaration of interest which could affect his/her ability to speak and/or vote, he/she is advised to contact the Monitoring Officer at least 24 hours in advance of the meeting. 3 LOCAL GOVERNMENT ACT 1972 - EXCLUDED ITEMS To consider whether the items, if any, in Part II of the Agenda should be considered in the presence of the press and public. 4 CHAIRMAN'S ANNOUNCEMENTS To receive announcements by the Chairman. 5 PUBLIC PARTICIPATION Any member of the public who wishes to ask a question, make representations or present a deputation or petition at this meeting should apply to do so by no later than 0:01am (one minute past midnight) two working days before the meeting. Information on how to make the application can be obtained by viewing the Council’s Website www.southlakeland.gov.uk or by contacting the Committee Services Team on 01539 733333.

(1) Questions and Representations

To receive any questions or representations which have been received from members of the public.

(2) Deputations and Petitions

To receive any deputations or petitions which have been received from members of the public. 6 PETITION 21 - 24 To receive and debate a Petition presented to Council on 10 October 2018 by representatives on behalf of Save Grange Lido. 7 REPORT FROM THE INDEPENDENT REMUNERATION PANEL FOR 25 - 50 2019/2020 To consider the recommendations of the Independent Remuneration Panel for Members’ Allowances with effect from 1 April 2019. 8 CORPORATE FINANCIAL MONITORING QUARTER 2 51 - 74 To note the projected year end position based on performance to the end of Quarter 2 2018/19 and to approve the changes to the Capital Programme as set out in the report. 9 2019/20 TO 2023/24 DRAFT BUDGET 75 - 108 To consider the draft budget proposals for the financial years 2019/20 to 2023/24 and proposed pay scales from 1 April 2019 resulting from the national local government pay settlement for 2018/20. 10 COMMUNITY GOVERNANCE REVIEW - END OF STAGE 1 109 - 218 To consider the responses to the first stage of the public consultation carried out as part of the Community Governance Review and the draft recommendations for the next round of consultation. 11 EQUALITY, DIVERSITY AND INCLUSION STRATEGY 219 - 232 To consider adoption of the South Lakeland District Council Equality, Diversity and Inclusion Strategy 2019-22. 12 GOVERNANCE UPDATE 233 - 292 To consider the results of the review of the Council’s Local Code of Governance and Constitution carried out by the Audit Committee. 13 LEADER'S ANNOUNCEMENTS AND CABINET QUESTION TIME, 293 - 322 INCLUDING THE COMPOSITE REPORT OF THE CABINET (1 HOUR MAXIMUM) Council is asked to receive the Executive Reports (Mid-Year 2018/19) from the Leader and Cabinet and to deal with any questions raised by Members to the appropriate Cabinet Members on the contents of the reports.

To receive announcements from the Leader and, in accordance with Paragraphs 10.2 and 10.3 of the Council’s Rules of Procedure, to deal with any questions to the Leader and/or Portfolio Holders on any topic which is within the jurisdiction or influence of the Council and is relevant to their Portfolio. Any Member who poses a question will be entitled to ask one supplementary question on the same topic.

Members are encouraged to give 24 hours’ written notice of questions to the Solicitor to the Council of questions to be raised under the Agenda Item. If no notice is received, then the Portfolio Holder can reserve the right to give a written answer. Where written notice of questions has been given, these will be taken first. Should a Member wish to ask more than one question, questions should be listed in order of priority. If more than one Member sends in a question, these will be taken in alphabetical order of Members’ names, alternated from meeting to meeting. Each question and each response is restricted to three minutes. 14 MINUTES OF MEETINGS To receive Chairmen’s comments (if any notified) in respect of the minutes of the Committee meetings held between 17 September and 23 November 2018. 15 QUESTIONS TO CHAIRMAN OF THE COUNCIL OR CHAIRMAN OF ANY COMMITTEE OR SUB-COMMITTEE To deal with any questions under Rule 10.6 of the Council’s Rules of Procedure, of which due notice has been given and/or the Chairman allows as a matter of urgent business and which are in relation to any matter over which the Council has powers or duties or which affect the area. 16 NOTICE OF MOTION The following Notice of Motion has been given in accordance with Paragraph 11.1 of the Council’s Rules of Procedure:-

“The Council notes:

The increase in child poverty in this District over the past four years, from 14% to 15.9% (measured after housing costs).

The increasing use of food banks in the country, as evidenced by the Trussel Trust figures, showing an annual 13% increase in usage, and Kendal’s Kings Food Bank showing a 16% increase.

The current freeze on Benefits and the rollout of Universal Credit are partly to blame for these increases.

Council calls on the government:

To review its welfare strategy with a view to providing more support for the most vulnerable in our society.

To take urgent steps to address this appalling trend and to reinstate ambitious targets for lowering child poverty.

To take urgent action to help those who are most affected by poverty.

In addition, Council asks:

That the Chair of the Council write to the Local Government Minister expressing our dismay at these trends and seeking his support in requesting additional funds be provided to Local Authorities by Central Government to help those most disadvantaged.”

(signed by Councillor Philip Dixon)

PART II

Private Section (exempt reasons under Schedule 12A of the Local Government Act 1972, as amended by the Local Government (Access to Information) (Variation) Order 2006, specified by way of paragraph number) There are no items in this Part of the Agenda. This page is intentionally left blank Item No.1 27 10.10.2018 Council

SOUTH LAKELAND DISTRICT COUNCIL

Minutes of the proceedings at a meeting of the Council held in the District Council Chamber, South Lakeland House, Kendal, on Wednesday, 10 October 2018, at 6.30 p.m.

Present

Councillors

Eric Morrell (Chairman) Stephen Coleman (Vice-Chairman)

Caroline Airey Tom Harvey Kevin Lancaster James Airey Eamonn Hennessy Pete McSweeney Giles Archibald Hazel Hodgson Ian Mitchell Robin Ashcroft Chris Hogg Jon Owen Rupert Audland Rachael Hogg Doug Rathbone Pat Bell John Holmes Amanda Rigg Ben Berry Kevin Holmes Matt Severn Roger Bingham Vicky Hughes Ian Stewart Jonathan Brook Anne Hutton Peter Thornton Andrew Butcher Helen Irving Graham Vincent Sheila Capstick Andrew Jarvis David Webster Tracy Coward Janette Jenkinson Mark Wilson Philip Dixon Dyan Jones Shirley-Anne Wilson Alvin Finch Dave Khan Gill Gardner Helen Ladhams

Apologies for absence were received from Councillors Matt Brereton, Brian Cooper, Michael Cornah, Anne Hall, Vivienne Rees and David Williams.

Also in attendance at the meeting was Jonathan Holden, Legal Adviser.

Officers

Inge Booth Senior Committee Services Officer Hardeep Burnley Principal Food, Licensing and Safety Officer Lawrence Conway Chief Executive Dan Hudson Development Strategy and Housing Manager Anthea Lowe Solicitor to the Council Richard Machin Senior Communications Officer Shelagh McGregor Assistant Director Resources (Section 151 Officer) Simon Rowley Assistant Director Neighbourhood Services Debbie Storr Director of Policy and Resources (Monitoring Officer) David Sykes Director People and Places

C/35 MINUTES

RESOLVED – That the Chairman be authorised to sign, as a correct record, the minutes of the meeting of the Council held on 24 July 2018.

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C/36 PUBLIC PARTICIPATION

Questions and Representations

Three members of the public addressed Council with regard to the Ulverston Leisure Site Masterplan project development work which had been considered by Cabinet on 10 September 2018 (CEX/35 (2018/19) refers).

Caroline Clutterbuck explained that she had played tennis for 35 years. She had moved to Ulverston 14 years ago as a newly qualified tennis coach and had chosen Ulverston to live in, particularly for its tennis facilities. She pointed out that, over recent years, the number of public tennis courts in the Furness area had reduced significantly, with no public courts in Barrow, and the Leisure Centre providing the only ones in Ulverston. Ulverston Tennis Club had played tennis for over 60 years on this land and, having recently lost three courts at the Leisure Centre to a 3G pitch, its membership had decreased. Ms Clutterbuck referred to the various groups of tennis players using the courts throughout the year, often using two or three courts at least, and referred to competitions which involved use of four courts for up to four hours. There was a good amount of usage overall and demand from the local community. Ms Clutterbuck pointed out that it was vital that all age groups were given the opportunity to play the game that was proven to be beneficial to health and wellbeing. She asked if the current facility could be maintained, whether the air hall was really feasible and if a sauna was an essential addition to the pool as recently added in the latest proposals. She wished for the latest proposals to be revised and for fair consideration to be given to tennis.

Peter Barton, resident of Rosside, near Ulverston, addressed Members on behalf of the Furness tennis community. They believed that in one key respect the new plan needed a re-think and was fundamentally flawed. They felt that further consultation needed to take place before the Council sanctioned a £100,000 contribution to fund further development work on the Ulverston Leisure Site Masterplan, because the new plan potentially took the proposals in the wrong direction. Mr Barton said that, in 2016, FMG had produced a report in conjunction with GSK to propose a facilities mix and layout for a leisure complex to meet the needs of the Ulverston and district area for the 21st Century. Four options had been proposed which included new facilities such as a new swimming pool, new sports hall and gym, and retention of existing facilities such as the tennis centre, AstroTurf pitch, etc. Crucially, all four options had included the provision of a minimum of two indoor tennis courts, as well as the outdoor existing courts. More recently a revised report, proposing reduced facilities had been published in September 2018, which took into account the reduced contribution that GSK was proposing to make. The revised proposal contained within the report was that the indoor tennis courts be scrapped altogether – the exact term used was ‘not provided’. Crucially, the report claimed that this proposal, to decimate the indoor tennis facilities was, “a key part of the consultation with strong representation from existing user groups.” Mr Barton was of the opinion that the idea that existing user groups had been consulted on, and had agreed to their facilities being scrapped, was untrue. He pointed out that Ulverston Tennis Club had not known until last month that the revised plan was to provide no indoor tennis courts. Mr Barton had also been in touch with the local secondary school, UVHS, and it had been confirmed that the school had not been consulted about the proposal to scrap the existing tennis facilities and that they were completely against the new plan. It seemed, therefore, that the statement that there had been, “strong representation from existing user groups,” in the proposal to scrap the facilities was not correct. Mr Barton pointed out that the first paragraph of the 2018 report referred to the, “ageing indoor facilities at Priory Road.” He felt that it seemed

Page 8 29 10.10.2018 Council reasonable to assume that a swimming pool that was built in the 70s and had not been significantly upgraded needed replacing, but pointed out that this was being grouped together with a tennis centre that had only been built in 2001. In the 2016 report the only lifecycle costs for tennis had been £40,000 in the next five years, whereas it was at least £170,000 for the pool and £100,000 for the artificial pitch. In 2015, the revenue for the pitch had been only £18,000, whereas the revenue for the tennis centre had been four times that, at over £73,000. The revised plan had an estimated capital cost of £9.2m. The tennis community would settle for a significantly smaller budget, but one that preserved the existing much loved and much used tennis facility. Mr Barton said that the principle of enhancing the sports facilities for the Furness area was to be applauded. Enhancing the community’s ability to engage in more physical activity was a core way to improve the health and wellbeing of the local community. In addition, with an ageing UK population with more leisure time, it was clear that improving the facilities for all was a fundamental way to improve the quality of life for all ages, making the Furness peninsula an even more desirable place in which to live. As a local employer who was constantly facing the challenge of recruitment, Mr Barton felt that anything that made Ulverston a more attractive place to live and work was to be encouraged. However, to conclude, Mr Barton stressed that what the tennis community was objecting to was the direction of travel in the September 2018 report. The Council’s own stated objective in 2016 had been to, “improve the quality of life and deliver a strategic sporting and leisure destination for Ulverston.” What the Furness community needed was a plan that enhanced the facilities for all. Before £100,000 of taxpayers’ money was spent on more development work, Mr Barton strongly recommend that all interested parties were consulted to ensure that the revised plan was one that benefitted the community as a whole and provided enhanced, not merely different, facilities.

Annette Foot read out a representation on behalf of David Foot who was a tennis player at Ulverston Tennis Centre and who shared many others’ concern regarding the agenda item recently presented to Cabinet which appeared to give a steer as to how the overall cost of a new Leisure Centre could be reduced, primarily by reducing the tennis facilities. The revisions to the proposed facilities mix had also been summarised within the report. Mr Foot sought assurances that, despite the suggested revised mix, specifically the removal of the two indoor tennis courts, further development work and the consultation promised with players would consider all options to aim to retain at least two indoor and two outdoor courts. Mr Foot also requested that the original Consultant’s report be made available to the public and if not, why not?

The Chairman thanked the speakers and advised that a written response would be provided within seven working days. Deputations and Petitions M/s Pamela Parker, on behalf of the Save Grange Lido Campaign Group, presented a petition containing 3,135 signatures, “we want GRANGE LIDO restoration to include the SWIMMING POOL, and South Lakeland District Council to confirm that any option without a swimming pool will be ruled out.” The Chairman thanked M/s Parker and explained that officers would consider the petition in accordance with the Council’s Petitions Scheme. M/s Parker would be contacted by officers, within ten working days, with acknowledgement of the petition. Once the verification process had been completed, M/s Parker would be advised of the outcome and, if 1,000 signatures or more had been verified, the date of the Full Council meeting at which the matter would be debated. In the event that there were less than 1,000 verified signatures to the petition, officers would confirm the response to the petition.

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C/37 DECLARATIONS OF INTEREST

RESOLVED – That it be noted that no declarations of interest were raised.

C/38 LOCAL GOVERNMENT ACT 1972 - EXCLUDED ITEMS

RESOLVED – That it be noted that there are no excluded items on the agenda.

C/39 CHAIRMAN'S ANNOUNCEMENTS

A list of engagements which the Chairman had attended since the last meeting had been circulated at the commencement of the meeting.

C/40 THE GAMBLING ACT 2005 - REVISED STATEMENT OF GAMBLING POLICY

Councillor Chris Hogg, Culture and Leisure Portfolio Holder, presented a report recommending the adoption of a revised Statement of Gambling Policy. Licensing authorities were required to determine and publish a statement of their Gambling Policies once every three years. The statement set out the basis on which decisions under the Gambling Act 2005 would be made and strove to achieve a local balance between the commercial interest of the licensing trade and the communities they served and affected. Changes which had taken place in national and legislative policy since the policy had last been amended in 2015 were reflected in the updated revision.

Following public consultation, the draft Policy had been considered and recommended to Council for adoption by the Licensing Regulatory Committee on 20 August 2018.

The Principal Food, Licensing and Safety Officer would shortly be leaving the Council’s employment, and Councillor Hogg expressed thanks for her hard work and commitment.

Councillor Hogg moved the recommendation contained within the report and was seconded by Councillor Tom Harvey.

RESOLVED – That the revised Statement of Gambling Policy, as attached at Appendix 1 to the report, be adopted.

C/41 REVISED STATEMENT OF COMMUNITY INVOLVEMENT

Councillor Jonathan Brook, Deputy Leader and Housing, People and Innovation Portfolio Holder, presented a report recommending the adoption of a revised Statement of Community Involvement (SCI) as Council policy. The purpose of the revision was to update the current SCI to enable changes to Development Management consultation processes in preparation for the Council’s Customer Connect Programme and to update the document with regard to the Neighbourhood Planning Act 2017 Regulations 2018. The updated document set out how the Council intended to consult with communities and stakeholders on statutory planning documents, planning guidance and planning applications.

The draft revised SCI had been reported to Cabinet on 8 July 2018 and approved for public consultation.

Page 10 31 10.10.2018 Council

Councillor Brook moved the recommendation contained within the report and was seconded by Councillor Andrew Jarvis.

RESOLVED – That the revised Statement of Community Involvement, as attached at Appendix 1 to the report, be adopted as Council policy.

C/42 LOCAL DEVELOPMENT SCHEME OCTOBER 2018 UPDATE

The Council’s Local Development Scheme (LDS) was the Council’s project plan for bringing future Local Plan documents forward. It included a timetable that set out when Local Plan documents would be prepared from commencement to adoption. Councillor Jonathan Brook, Deputy Leader and Housing, People and Innovation Portfolio Holder, moved the recommendations contained within the report and informed Members that the most current LDS 2018-2021 had been adopted in February 2018. It guided the final stages of current plan-making in 2018/19 (for the 2003-2025 period) and set out the stages for preparing the single replacement Local Plan in place by 2021 covering the period 2016-36. The Government was placing increasing emphasis on local planning authorities having up-to-date local plans and intended to introduce regulations to require the review of plans every five years.

In accordance with the Planning and Compulsory Purchase Act 2004, Development Plan Documents (DPDs) were examined to assess whether their preparation had been conducted in a manner which satisfies legal requirements and tests of soundness. DPDs could only be recommended for adoption subject to demonstrating the relevant legal requirements had been satisfied. Under Section 19 of the Act, a DPD had to be prepared in accordance with the LDS. Therefore, one element of meeting legal requirements related to the extent to which preparation of any DPD was in accordance with the timetable prescribed for it as set out in the LDS. Local planning authorities had to ensure that the adoption of any DPDs accorded with the timescales set out in the LDS and so the progress of the DPDs had to be monitored against the LDS. If there was a need for the timescales to be altered, the LDS would need to be updated to reflect the updated timetable.

The current South Lakeland LDS 2018-2021 set out that the Arnside and Silverdale Area of Outstanding Natural Beauty (AONB) DPD and the Development Management Policies DPD would be adopted by September 2018. Since the adoption of the current LDS, the DPDs had been subject to an examination in public. In response to recommendations made by the Inspector appointed to examine the DPDs, the Council had proposed a number of main modifications to the DPDs and these had to be subject to a six week consultation. Alongside this, further work as required to the Habitats Regulations Assessments for each DPD as a result of a judgment of the Court of Justice of the European Union concerning Article 6(3) of the Habitats Directive. Taking account of the need to undertake such consultation and subsequent Inspector Reporting timescales, it was considered the Council would not be in a position to adopt the DPDs until February 2019 subject to the outcomes and receipt of the Inspector’s report. In light of this, the Inspector had confirmed in letters written to the Council that the LDS required to be refreshed to reflect the updated timescale to adoption. This would ensure the DPDs could be found to satisfy the relevant legal requirements . Accordingly, the LDS had been updated and was attached at Appendix 1 to the report. It updated the timescales for adoption of the DPDs and also included a number of less significant amendments in respect to the preparation of other Local Plan Documents, details of which were provided.

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Members were advised that, in order to continue to maintain an up to date LDS, it would be beneficial for delegated powers to be given to the Director People and Places in consultation with the relevant portfolio holder to amend the timetable for preparing documents identified in the LDS as and when required. It was also being recommended that delegated authority be given to the Director People and Places to add or withdraw Supplementary Planning Documents in the LDS.

Councillor Graham Vincent seconded the proposals.

RESOLVED – That

(1) the Local Development Scheme 2018/2021 (October 2018 Update), as attached at Appendix 1 to the report, be adopted; and

(2) the Director People and Places be delegated authority to amend the timetable for preparing documents identified in the Local Development Scheme, and to add or withdraw Supplementary Planning Documents in consultation with the relevant portfolio holder, with any such additions or withdrawals being reported to Council.

C/43 LEADER'S ANNOUNCEMENTS AND CABINET QUESTION TIME (30 MINUTES)

The Leader referred to the recent announcement by GSK of the impending closure of its sterile injectables manufacturing unit at Ulverston and 191 job losses. He reported that, together with the Director People and Places, he had attended a meeting involving local MPs, Ulverston Town Council representatives, trade unions and GSK managers at which concern had been expressed for staff, the community and the blow to the local economy. GSK had been asked to work with the local community to ensure that appropriate training and support was on offer and to assist in restoring the economic viability of the area. A further meeting would be held in November and GSK had agreed to arrange a meeting between GSK senior managers and Local MPs and Council Leaders to provide the reasons for the closure of the unit and to confirm the commitments made at the last meeting. The Leader pointed out that GSK had already confirmed that the tablet manufacturing unit was to stay in Ulverston and that the £2m commitment towards the Ulverston Leisure Facilities remained.

The Leader mentioned the representations and questions made by members of the public earlier in the meeting in relation to the Ulverston Leisure Facilities. Appropriate responses would be given to the speakers, however, the Leader was pleased at the cross party support shown to date in working to establish a new leisure centre. Although £100,000 had been committed by Cabinet on 10 September 2018 to development work, no final decision on the building of a new facility had been made at this stage.

The Leader raised the issue of anthropogenic climate change, to the recent disaster in Florida and the hurricanes to date this season. He reported that he and Councillor Dyan Jones, Environment Portfolio Holder, had been out in the District discussing the subject with local residents. They had come away with many suggestions which had been refined down resulting in a final list of actions on which it was proposed to engage on in the coming months.

In closing, the Leader reminded those Members who had not yet completed Personal Development Plans to do so.

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In accordance with paragraphs 10.2 and 10.3 of the Council’s Rules of Procedure, the following written question had been submitted to the meeting:- From Councillor Tom Harvey to Councillor Giles Archibald, Leader and Promoting South Lakeland Portfolio Holder - What steps has the leader of the council made in his efforts to access available central government resources, out-with the annual grant settlement, for local government-related expenditure in South Lakeland. Councillor Archibald was pleased to be able to highlight the work carried out to attract additional funding beyond normal support grants. He referred to new burdens funding, where the Government had introduced new responsibilities for local authorities and allocated funding to Councils outside the main finance settlement, and to other Government announcements, for example the Community Housing Fund. Councillor Archibald also highlighted a number of other areas where bids had or were being made for funding for specific projects, for example, approximately £7.5m in relation to Storm Desmond; discussion currently in progress for additional funding from Homes England for affordable housing in rural areas; an application to Homes England/Highways England for the Cross-a-Moor roundabout proposals; an application for ERDF funding towards Mintsfeet Kendal Flood Alleviation Scheme; £120,000 had been allocated from Historic England for the Burton-in-Kendal conservation scheme; and the Cumbria Business Rate Pool which had brought in over £1m as a result of working together with other Cumbrian councils. Councillor Harvey posed a supplementary question - In 2016, South Lakeland District Council was one of five local authorities in Cumbria which chose to reject a devolution settlement for the County which would have secured £300m for transport, housing, skills and health and transferred extra power and responsibility locally. In light of the Leader of Cumbria County Council’s recent commitment to my colleague, Councillor James Airey, that the Country Council is open to getting back around the table to hammer out a devolution deal that will unlock this funding, will the leader of South Lakeland District Council now commit to supporting this cross-party initiative by reconsidering his previous opposition to this important reform and our area’s future success and prosperity? Councillor Archibald undertook to provide a written response. The written question having been presented and answered, the following verbal questions were then taken from the floor:- Councillor Ben Berry referred Councillor Giles Archibald, Leader and Promoting South Lakeland Portfolio Holder to documentation released by the Lake District National Park Authority in relation to a Freedom of Information request regarding the Royalty Cinema in Bowness for which the whole site was marked for redevelopment for leisure and retail in the Lake District Local Plan call for sites. He referred in particular to email correspondence between National Park Authority and South Lakeland District Council officers and suggested that the Council had been urged to withdraw the proposed allocation site of the site from the Lake District Local Plan call for sites. He suggested that the site had not subsequently been withdrawn in order to avoid a political u-turn. Councillor Archibald responded by saying that any politician should be willing to accept mistakes. He explained that Cabinet had felt that inclusion of the site within the document provided better protection for the current status of the Royalty than no reference at all within the document. Councillor Archibald stressed that officers had not urged Members to withdraw the site and asked Councillor Berry either to retract his comment or to provide him with the relevant information. He also undertook, on receipt of the relevant information, to provide a written response. Councillor Berry undertook to provide the relevant information.

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Councillor Ian Stewart drew attention to the significant contribution made to South Lakeland District Council’s by GSK through business rates and the potential for the company to downsize as a result of the recent announcement to close its sterile injectables manufacturing unit. He expressed concern should there be a request for revaluation due to downsizing of the site and enquired from Councillor Archibald, Leader and Promoting South Lakeland Portfolio Holder, if there were any early indications of potential financial implications.

Councillor Archibald acknowledged Councillor Stewart’s relevant concern and explained the need to ensure that the site was used for other industrial uses.

Councillor Stewart asked if Members could be updated as necessary and Councillor Archibald undertook to ensure that details would be provided.

Councillor Matt Severn referred to the recent Intergovernmental Panel report on Climate Change which stated that there were 12 years left to prevent temperatures from rising. He asked Councillor Giles Archibald, Leader and Promoting South Lakeland Portfolio Holder, what steps South Lakeland District Council and Cumbria County Council could take to address this issue.

Councillor Archibald believed that local authorities had a role to play in mitigating climate change. A list of proposals based on consultation with local residents was soon to be circulated. The Council needed to ensure that every decision it took examined its potential effect on climate change. The Council would look at its buildings with regard sustainability and seek to use fuel-efficient vehicles. The Council would work with the National Park Authorities to plant trees. Policy makers would be urged to require sustainable housing developments. Councillor Archibald felt strongly that South Lakeland District Council, together with other authorities, could make a difference and help to keep climate change to within at least 3 degrees.

Councillor Matt Severn asked Councillor Chris Hogg, Culture and Leisure Portfolio Holder, if he was looking forward to the Lakes International Comic Art Festival at the weekend.

Councillor Hogg referred to the significant contribution made by Arts Council England to the Festival over the last four years and expressed thanks to Kendal Town Council and the Kendal Business Improvement District who had also provided funding. He informed Members of the potential for the Festival to expand to Ulverston and Barrow. Councillor Hogg highlighted the fact that Traces of the Great War, part of 14-18 NOW, the UK’s arts programme for the First World War centenary, would be launched at the Festival. Traces of the Great War was an anthology of illustrated short stories featuring over twenty internationally acclaimed comic book artists, graphic novelists and writers. Councillor Hogg also drew attention to many other artists whose work would feature at the Festival. This International Festival was an example of the class of events held in South Lakeland.

Councillor Kevin Lancaster referred to Ash trees showing signs of dieback disease on the A65, A683 and A684 and asked Councillor Dyan Jones, Environment Portfolio Holder, what South Lakeland District Council was doing to work with national government to mitigate the effect.

Councillor Dyan Jones undertook to provide a written response.

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Councillor Peter Thornton asked Councillor Chris Hogg, Culture and Leisure Portfolio Holder, if he agreed that the best way in which to support the Royalty was to attend and watch a film.

Councillor Chris Hogg stressed that he was available to answer questions any time with regard to the Royalty which was neither being closed nor redeveloped. He agreed with Councillor Thornton and also reminded Members that the Royalty housed a Wurlitzer.

C/44 MINUTES OF MEETINGS

RESOLVED – That it be noted that no comments or question s have been received in respect of the minutes of committee meetings held between 24 June and 14 September 2018.

C/45 QUESTIONS TO CHAIRMAN OF THE COUNCIL OR CHAIRMAN OF ANY COMMITTEE OR SUB-COMMITTEE

RESOLVED – That it be noted that no questions have been received under Rule 10.6 of the Council’s Rules of Procedure.

C/46 URGENT DECISIONS

Details of an urgent Executive Decision (CEX/33 (2018/19)), which had been taken with regard to the delegation of the final decision on whether the Council should join the Cumbria 75% business rate pilot pool and the content of any such bid, were reported, in accordance with paragraph 17.3 of the Overview and Scrutiny Procedural Rules.

RESOLVED - That the urgent Executive Decision (CEX/33 (2018/19)) be noted.

C/47 SENIOR MANAGEMENT RESTRUCTURE

Note – Due to the fact that their roles were subject to review under the proposals for restructure, with the exception of the Chief Executive, the Senior Committee Services Officer and Jonathan Holden, Legal Adviser, all those officers taking part in the meeting, left the Chamber for this item of business.

Further to C/26 (2018/19), Councillor Jonathan Brook, Deputy Leader and Housing, People and Innovation Portfolio Holder, introduced a report seeking approval for the revised senior management structure of the Council, to be implemented with effect from 1 April 2019. Councillor Brook moved the recommendations contained within the report, stating that the significant savings to be made were not the primary driving factor for the proposals, rather the adoption of a new way of working for the delivery of improved services for the people of South Lakeland. He was seconded by Councillor Giles Archibald.

In presenting the details of the report, the Chief Executive first expressed his pride in, and offered his thanks to, staff, the Council’s greatest asset, for their unwavering commitment in challenging circumstances. He explained that it was with the staff in mind and the need to ensure wide and fulsome consultation that the process had taken so long. He referred to a recent article in the Local Government Chronicle by Dominic Campbell about the time being taken for local government to move into 21st century digital government. The article concluded that, “The future is owned by those with the

Page 15 36 10.10.2018 Council vision, leadership, creativity, political guile and guts to both imagine a different world and drive us towards it.” He referred to his foreword in the consultation packs to be presented to staff which explained that the Council was moving into the first phase of the Customer Connect Programme and made reference to the opportunity for staff to provide feedback and suggestions. The Chief Executive also referred to the latest issue of Inside Story which had been a Customer Connect special. The Council’s External Auditors, Grant Thornton, had also been asked for their opinion on Customer Connect. They had indicated that South Lakeland District Council was the first authority in the northwest to move forward with such a fundamental change. A report written by Grant Thornton a number of years previously had indicated that those authorities at the forefront of transformation would be the ones that would survive and prosper.

The Chief Executive reported that the key aims of the proposals around the revised senior management team were designed to provide the corporate, operational and functional leadership and management necessary to ensure that the Council delivered its priority outcomes and services and derived the benefits of the Customer Connect Programme, within the scope and intent of the approved business plan.

The proposed senior management structure, details of which were shown at Appendix 1 to the report, would operate within three tiers, rather than the existing four:-

Tier 1 Chief Executive.

Tier 2 Director of Strategy, Innovation and Resources, responsible for the Council’s strategic direction based on the Council Plan objectives, all aspects of resourcing and governance.

Director of Customer and Commercial Services, responsible for the delivery of front line services, corporate initiatives, customer service and commercialisation.

The Chief Executive and two Directors would make up the Corporate Management Team (CMT) of the Organisation. Tier 3 Lead Specialist Officers and Operational Lead Officers, composed of the Council’s most knowledgeable and senior advisors, along with their ability to manage resource and performance with regard to their specific functional and operational areas of the Council’s activities. They will also provide the senior leadership to those tiers of officer below in subsequent phases of the restructure programme. It was proposed that the three tiers together would make up an Extended Leadership Team (ELT). The draft role and job descriptions for the Directors were shown at Appendix 5(a) to the report, along with the new competency framework at Appendix 5(b). One of the consequences of implementing the new structure was that some current post holders, possibly including Chief Officers, may not remain. In accordance with the Local Authorities (Standing Orders) (England) Regulations 2001 (as amended), the steps that needed to be taken with regards Chief Officers and Deputy Chief Officers in order to give effect to the proposals as contained within the Council’s Constitution. Full Council had, through the Constitution, delegated the function of dismissal and appointment of Chief Officers and Deputy Chief Officers to a five member sub- committee (to include at least one cabinet member), drawn from the Human Resources Committee.

Page 16 37 10.10.2018 Council

The Council had a legal requirement to employ the following statutory roles:-

 Head of Paid Service – currently held by the Chief Executive  Monitoring Officer – currently held by the Director of Policy and Resources  Section 151 Officer – currently held by the Assistant Director (Resources)  Returning Officer – currently held by the Director of Policy and Resources

All of the statutory Officer roles above had direct access to the Chief Executive, irrespective of line management responsibilities, and this would continue to be the case in the new senior management structure. The Council also currently had a deputy for oth Monitoring Officer and Section 151 Officer roles.

It was proposed for the new senior management structure, that the role and reporting lines to the Chief Executive of Monitoring Officer and Section 151 Officer would be maintained, and the responsibilities adjusted accordingly to the most appropriate position within the new proposed structure. These responsibilities would now be allocated as follows:-

 Head of Paid Service – Chief Executive  Monitoring Officer – Legal, Governance and Democracy Lead Specialist  Section 151 Officer – Finance Lead Specialist  Returning Officer – Appropriate responsible Officer to be appointed once the recruitment exercise is completed.

There was no set legal requirement that these statutory roles should rest with one or more individual positions, within a set hierarchy. It was, however, good practice that they (with the exception of the Returning Officer) continued to offer support to the Corporate Management Team of the Council and these new proposals would ensure the maximum effectiveness of these posts in an operational setting, whilst ensuring the continued good governance and financial standing of the authority.

The report provided details of the consultation process, which was a key element to the success of the Programme.

Subject to approval in principle, it was intended that the formal consultation on Phase 1 would commence on 16 October 2018. Following the close of the formal consultation, the Chief Executive would take into consideration all proposals submitted and respond accordingly, reporting back to Council and seeking further approvals, if necessary.

A lengthy discussion ensued during which Councillor Brook and the Chief Executive provided clarification and responded to questions raised by Members as follows:-

 Members were advised that all Members of the Executive had been closely involved in the development of the Programme, with Members providing strategic direction and officers dealing with operational detail.

 A panel of Members chosen from the Human Resources Committee would carry out the interviews for the new director posts.

 With regard to any substantial changes following the consultation period, the Customer Connect Steering Group would consider whether these should be brought back to Council for further approval.

Page 17 38 10.10.2018 Council

 In relation to the Council’s interest in shared services and the potential for a shared Chief Executive, Members were advised that it was necessary for only one person, being the Chief Executive, to carry out the restructure of the Council. It would be difficult for the Chief Executive to consider their own role. The Leader and Promoting South Lakeland Portfolio Holder added that it had been his decision to retain the Chief Executive role. In addition, it was pointed out that, although the Customer Connect Programme was being developed together with Eden District Council, that authority had chosen not to progress to the extent that South Lakeland intended to. In addition, the other district authorities within the County did not have the operating model to deliver such a change at present.

 It was confirmed that the Membership of any Human Resources Sub-Committee convened for the dismissal of any chief officer or deputy chief officer should be politically balanced.

 Expanding on the advantages in creation a third tier of lead specialists and the new way of working, Members were advised that it was difficult to compare the old with the new roles. The competencies and work requirements would be different, as well as the customer focus.

 Whilst 35% of responses to whether staff felt worried about what transformation would mean for them had been neutral, this was to be expected at this stage, particularly pending provision to employees of finer detail following approval by Council of the structure. Further surveys would be carried out and changes monitored.

 It was acknowledged that this was a difficult time for staff and reiterated that compassion and empathy would be shown throughout the process.

 Members were reminded about the job roles falling within the job families of Customer Service Advisor, Case Management, Locality Working and Specialist. The difficulties in recruiting to specialist posts, such as Planning or Licensing, was recognised, however, it was stressed that the right people with the right skills and competencies would be recruited to each post.

Members expressed broad support for the proposals.

Councillor Giles Archibald, as seconder of the proposals, thanked the Chief Executive and Senior Management Team for their work on the Customer Connect Project, also recognising the efforts made by Councillors Brook and Peter Thornton, as well as former Councillor Sue Sanderson and all Members of the Project Board.

It was, subsequently, unanimously RESOLVED – That (1) the proposed senior management structure as set out at Appendix 1 to the report be approved for consultation; (2) save for the Chief Officers and Deputy Chief Officers, and subject to the outcome of the formal consultation with trade unions and any affected employees, the principle be agreed for steps to be taken in line with the redundancy policy to give notice of potential redundancy to affected staff and to undertake recruitment to the proposed senior management structure with any redundancies to take effect by 31 March 2019 and the new posts to take effect on 1 April 2019, as per Appendix 1 to the report and in accordance with the Council’s legal responsibilities;

Page 18 39 10.10.2018 Council

(3) the remainder of the consequential new structure be introduced as soon as practical thereafter;

(4) it be confirmed that the Head of Paid Service can consider and approve any applications for voluntary redundancy;

(5) in relation to Chief Officers and Deputy Chief Officers:-

(a) the function of dismissal of any Chief Officer and Deputy Chief Officer authority be delegated to a sub-committee, to be drawn from the membership of the existing Human Resources Committee, and one member of Cabinet, ensuring that any dismissals are conducted in accordance with the Chief Officers’ terms and conditions and the Council’s Employment Procedure Rules;

(b) approval be given for the creation of a sub-committee, to be drawn from the membership of the existing Human Resources Committee, in accordance with the Council’s Constitution, for the purpose of dealing with any appeals against dismissal;

(c) if necessary, the requirement for the Council to be notified of the dismissal of the Section151 Officer, Monitoring Officer, Chief Officers or Deputy Chief Officers be dispensed with, for the purpose of the Customer Connect programme only; and

(d) the Head of Paid Service be delegated authority to take the necessary steps to appoint to those roles within the proposed Senior Management Structure, with notification of those appointments being reported to a future Council meeting; and

(3) the salary of the proposed Director posts as detailed in Appendix 5(a) to the report be approved.

The meeting ended at 8.50 p.m.

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Page 20 Item No.6

South Lakeland District Council Full Council 18 December 2018 Petition

Report from: Debbie Storr - Director of Policy and Resources (Monitoring Officer) Report Author: Debbie Storr – Director of Policy and Resources (Monitoring Officer)

1.0 Expected Outcome 1.1 That Council receives and debates the Petition and decides on how to respond. 2.0 Recommendation 2.1 It is recommended that Members:- (1) Debate the petition proposing that the restoration of the Lido includes a swimming pool; (2) Request any comments made during the debate be forwarded to Cabinet for consideration as part of the decision-making process; and (3) Delegates authority to the Director of Policy and Resources, in consultation with the relevant Portfolio Holder, to formulate any necessary response that accords with the decision of the Council. 3.0 Background 3.1 This report provides background information following receipt of a Petition by representatives on behalf of Save Grange Lido. 3.2 The wording of the petition is as follows: “We want GRANGE LIDO restoration to include the SWIMMING POOL, and South Lakeland District Council to confirm that any option without a swimming pool will be ruled out”. 3.3 The Council’s Petition Scheme states that petitions which contain over 1000 signatures will be debated by full Council. The petition needs to give the signatories’ name’ and addresses and those people signing must live, work or study in the authority’s area. 3.4 The petition to be debated today was presented to Council at its meeting on 10 October 2018 and has been verified in terms of numbers of signatures required. Over 1000 of those signing meet the requirements of the Council’s Petition Scheme. 3.5 Under the Petitions Scheme the petition organiser has 5 minutes to present the petition at the meeting and the petition will then be debated by councillors for a maximum of 15 minutes. At the conclusion of the debate the Council has to decide how to respond to the petition. 3.6 The Petition’s scheme sets out how the Council may respond to the petition. They include to take the action the petition requests, not to take the action requested for reasons put forward in the debate, or to commission further investigation into the matter, for example by a relevant Committee.

Page 21 3.7 The petition organiser will receive written confirmation of what action, if any, Members decide to take. This will also be published on the website. Information on Lido – Current Position 3.8 To assist Council in debating the content of the petition the background to the current position is set out below. 3.9 In 1993, the outdoor pool at Grange-over-Sands was closed due to the need for significant improvement works, a leak in the pool basin, and low usage. 3.10 A number of proposals have come forward since its closure in 1993, including the Berner’s Vision Partnership which looked at the wider development opportunities on and around Berner’s Close, though no schemes have come to fruition for a number of reasons, and the site remains empty and in an increasingly deteriorating state. 3.11 Berner’s Pool, the indoor swimming pool, was opened in 2003 following a Sports England grant of £2.5m (total project cost £3.3m), however the facility closed in 2006 due to structural faults, low usage and management difficulties, and was eventually demolished in 2013. 3.12 The lido site was listed by Historic England in 2011 as Grade II for the following:  Completeness: as a complete example of a 1930s lido with the survival of all key ancillary buildings an structures  Pool: for the unusually shaped pool, designed for a multiple uses and which retains its original stepped diving stage.  Historic: as an evocative reminder of the former popularity of sea-side town such as Grange over Sands and the inter-war cult of fresh air, fitness and mass leisure (www.historicengland.org.uk/listing/the-list/list-entry/1402086). 3.13 In 2013/14, the Council commissioned a series of studies on potential options regarding bringing the Lido back into community use. A number of options were considered, including restoration of the swimming pool. The report indicated that a swimming pool would not be financially viable and would require subsidy from the Council. Subsequent work to this report focused on bringing the site back in to public use, without a pool, in a manner that would not prejudice future restoration of the pool. 3.14 The option identified as making best use of the asset was to restore it so that it could be a mixed use community facility comprising business and leisure opportunities. This includes stabilisation of the entire site including the sea wall coastal defences; restoring the buildings for potential end users and tenants such as a café, restaurant, artist studio, retail, community, heritage and education centre; a temporary infill of the pool basin that could be removed at a later date to accommodate a pool restoration, subject to a viable business case and capital funding; a landscaped space within the pool that allows for small scale events, festivals and markets, to enhance the existing promenade offer; reconnecting the former lido site with the promenade to make it entirely accessible for the community, and preserving the site so that it is not permanently lost; and critically, minimising ongoing preservation costs with a long term and low cost maintenance strategy. Current designs are sympathetic to the heritage and have support from Historic England. 3.15 In 2018, Full Council approved a £140k revenue growth bid to progress with designs for the site and agreed that the next phase of feasibility works should be commissioned. This design work continues to RIBA stage 4, whereby the technical designs will be completed, when consideration can be given to any planning and listed building consents that may be required.

Page 22 3.16 However, prior to any submission of planning or building consent applications, Cabinet will be asked to consider the outcome of the current phase of design work, and to approve the next stages. It is anticipated that a report will be presented to the 23 January 2019 meeting of Cabinet. The draft budget report later in the agenda for this meeting includes an element of funding for the Lido site and will be subject to final approval at the Council meeting on 26 February 2019. 3.17 In order for Cabinet to make an informed decision, Full Council may consider it appropriate to forward any comments arising out of its debate to Cabinet to take into account when reaching a decision as to future actions regarding the lido. 3.18 Having regard to the above it is advised that the representations arising from the Petition be forwarded to the relevant Portfolio Holder for consideration as part of the Cabinet’s future deliberations on this matter. 4.0 Consultation 4.1 Not applicable. The report is to receive a petition under the Council’s Petition Scheme. 5.0 Alternative Options 5.1 The options are as set out in the report in terms of how the Council may respond to the Petition. 6.0 Links to Council Priorities 6.1 Economy: we will when opportunities present themselves make best use of our property portfolio to support economic growth, through the use of our current and future asset base. Environment: the council and its communities will enhance and protect the district’s heritage and high quality environment. 7.0 Implications Financial, Resources and Procurement 7.1 Funding for the Grange Lido site is included in the 2019/20 Capital Programme which will be subject to full Council approval in February 2019. A total of £1.9m capital investment from SLDC is being sought for the former site. Human Resources 7.2 There are no direct human resources implications arising from this report Legal 7.3 There is no statutory process for local authorities to follow with regards to receipt of petitions. The Council is legally required to follow its own Standing Orders in relation to how petitions are dealt with. The steps taken by the Council accord with its Standing Orders. 7.4 Under the Council’s Constitution and relevant legislation, decisions regarding the use of Council assets is an Executive function. Full Council will be asked to approve the capital funding associated with this project at a later stage. Health, Social, Economic and Environmental 7.5 Have you completed a Health, Social, Economic and Environmental Impact Assessment? Not applicable. Equality and Diversity 7.6 Have you completed an Equality Impact Analysis? Not applicable.

Page 23 Risk Risk Consequence Controls required No investment in Grange Lido. Preservation costs Continue to work up a continue to increase and scheme in keeping with structural integrity of the the site and its listing, that site worsens leading to provides access to all, increased Capital costs in minimises running cost but the future. which gives the option of the site being converted Risk of full or partial back into an open air collapse of structures on swimming pool if funding site. becomes available in the Reputational damage for future where there is a the Council over inactivity viable business case in and the appearance of a place. stop/start approach. Council to work up RIBA The Lido is added to the Stage 4 (Technical design) Heritage At Risk register for the current scheme with Historic England. designed by the Councils appointed Designer.

Contact Officers [email protected]

Background Documents Available Petitions Scheme

Page 24 Item No.7

South Lakeland District Council Council Tuesday, 18 December 2018 Report from the Independent Remuneration Panel For 2019/2020

Portfolio: Not applicable Report from: Director of Policy and Resources (Monitoring Officer) Report Author: Anthea Lowe – Solicitor to the Council Wards: (All Wards) Forward Plan: Not applicable

1.0 Expected Outcome 1.1 That Members consider the recommendations of a Report received from the Independent Remuneration Panel for Members’ Allowances. 2.0 Recommendation 2.1 Council is asked to consider the recommendations of the Independent Remuneration Panel for Members’ Allowances to be adopted with effect from 1 April 2019.

3.0 Background and Proposals 3.1 A copy of the Report of the Independent Remuneration Panel, together with a revised Members’ Allowance Scheme that is being put forward as part of the Panel’s recommendations, is attached to this report at Appendix 1. A copy of the current Members’ Allowances Scheme is set out in the Council’s Constitution. 3.2 Under the Local Authorities (Members Allowances) (England) Regulations 2003 (“the Regulations”), before making or amending its allowance scheme, the Council has a duty to have regard to the recommendations made in relation to it by the Independent Remuneration Panel. Once the report is received, the Council is also required to ensure that copies are available for inspection by the public, and a notice published in a local newspaper advising of its receipt. This has been done, and a notice has been published in the Westmorland Gazette on 22 November 2018. 3.3 If Members resolve to amend the Members’ Allowance Scheme, officers will place an advertisement in the Westmorland Gazette setting out the details of the revised scheme that will be in effect from 1 April 2019. 4.0 Consultation 4.1 The attached Report of the Independent Remuneration Panel sets out at paragraphs 7 to 12 the research and consultation that it has carried out as preparatory work in guiding it to its recommendations

Page 25 5.0 Alternative Options 5.1 The Council has discretion as to whether or not it accepts any of the recommendations proposed in the report. 6.0 Links to Council Priorities 6.1 Having an appropriate Members’ Allowances Scheme will serve to strengthen the Council’s priorities and objectives and is relevant to the Council’s vision of “Making South Lakeland the best place to live, work and explore”. 7.0 Implications 7.1 Financial, Resources and Procurement 7.1.1 The recommended allowance scheme is estimated to cost up to a maximum of £317,285. Broken down, this amounts to £282,885 in respect of basic and special responsibility allowances, and £34,400 in respect of travel and subsistence allowances.

7.1.2 The figures for South Lakeland District Council’s (SLDC’s) 2019/20 budget with respect to its General Fund are still being prepared but if the projected budget for 2019/20 from the Council’s Medium Term Financial Plan is used then the cost of this scheme represents up to a maximum of 2.48% of the SLDC budget projection of £12,788,900. 7.2 Human Resources 7.2.1 If approved, the Finance Team will be required to implement the new Members’ Allowances Scheme. 7.3 Legal 7.3.1 Under the Regulations the Council is required to establish and maintain an Independent Remuneration Panel. The purpose of the Panel is to review the existing Scheme of Allowances, including the Special Responsibility Allowances, paid to Members and to make recommendations to the Council on the appropriate level of payments to be made in the future. 7.3.2 The Panel also acts as the Parish Remuneration Panel for all Parish and Town Councils within the district, making recommendations as to the level of Basic and Chairman’s allowances and expenses for Parish and Town Councillors. 7.4 Health, Social, Economic and Environmental 7.4.1 Have you completed a Health, Social, Economic and Environmental Impact Assessment? No 7.4.2 If you have not completed an Impact Assessment, please explain your reasons: The proposals are limited in scope and therefore have no substantial social, economic or environmental considerations. 7.5 Equality and Diversity 7.5.1 Have you completed an Equality Impact Analysis? No 7.5.2 If you have not completed an Impact Assessment, please explain your reasons: The proposals are considered to have a neutral impact in terms of equality issues. The current Members’ Allowance Scheme has provision for double journeys to be carried out by spouses/partners for members with a disability who need to be driven to meetings. This provision avoids the need for the spouse /partner to wait for the duration of the meeting.

Page 26 Risk Risk Consequence Controls required That Members fail to properly Potential reputational Whilst Council has give due regard to the report of issue to the Council in the discretion to resolve to the Independent Remuneration event that Members’ make alterations to the Panel decision as to Members’ Allowance remuneration appears not Scheme over and above to have regard to the those recommended by report of the Independent the Panel, it has a duty to Remuneration Panel have regard to the recommendations of the Panel in doing so. This can be achieved by Members giving thorough consideration of the recommendations of the Panel in full Council.

Contact Officers Report Author – Anthea Lowe – Solicitor to the Council. 01539 793305 [email protected]

Appendices Attached to this Report Appendix No. Name of Appendix 1 Report from the Independent Remuneration Panel for 2019/2020

Tracking Information Signed off by Date sent Legal Services Report author Section 151 Officer 28 November 2018 Monitoring Officer 28 November 2018 SMT N/A

Circulated to Date sent Assistant Director N/A Human Resources Manager N/A Communications Team 28 November 2018 Leader N/A Committee Chairman N/A Portfolio Holder N/A Ward Councillor(s) N/A Committee N/A Executive (Cabinet) N/A Council 18 December 2018

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Page 28 Appendix 1

REPORT TO SOUTH LAKELAND DISTRICT COUNCIL FROM THE INDEPENDENT REMUNERATION PANEL

RECOMMENDATIONS FOR COUNCILLORS’ ALLOWANCES FOR THE FINANCIAL YEAR 2019/2020

1 Page 29 LIST OF CONTENTS

Summary Page 3 Matters arising from previous report Page 3 Background Page 3 Scope of the Report Page 4 Methodology Page 4 Basic Allowance Page 6 Special Responsibility Allowances Page 6 Childcare/Dependants Allowances Page 7 Travel and Subsistence Page 8 Co-optees’ Allowance Page 8

List of Comparative Councils Appendix A Members’ Allowance Scheme Appendix B

2 Page 30 Summary

The Independent Remuneration Panel (IRP) gave due consideration to the current economic conditions for local authorities, the allowances paid by comparator authorities, the work undertaken by Members and the recent pay settlements for SLDC employees. It recommends:  An increase up to a maximum of 2% on the Basic Allowance for 2019/20 to bring it up to £4,118.76 per annum.

The IRP also recommends:

 Amendments to Special Responsibility Allowances (SRAs) as follows:-

i. The SRA’s for the chairs of Audit, HR Committee, Lake Admin and O&S to remain unchanged. ii. SRA for the chair of Planning Committee to be £2,794.50 iii. SRA’s for the Chairs of Standards and Licensing/Licensing Regulatory Committee to be £931.50.

 Other than the Group Leaders’ Allowance, Members should receive no more than one SRA;  Out of County Mileage Allowance to remain part of the single travel allowance scheme as per the previous year;  Travel expenses to be in accordance with the maximum rates set by HMRC without attracting a tax charge (currently 45p per mile), this to apply to the first 150 miles of a return journey regardless of the destination and 25p per mile thereafter;  Subsistence expenses to increase by RPI as at 1st April 2019;  No change to Childcare/Dependant Carers’ Allowance. Payments to remain at a maximum allowance of £15 per hour. The Allowance to be paid from the time the recipient leaves home to time of return;  Co-optees’ Allowance be increased by up to a maximum of 2% to bring it up to £38.38 per meeting

Matters arising and brought forward from previous report

1. In its last report to Council, the IRP indicated that it would undertake a detailed review of SRA’s in 2018. Other matters considered by the Independent Remuneration Panel (“IRP”) were the Basic Allowance, Subsistence Allowance, Travel and Child Care and Carers Allowance and Co-optees’ Allowance.

Background

2. The membership of the IRP comprises:

Adrian Buckle Retired Deputy Chief Fire Officer, Cumbria Fire & Rescue Service. Appointed to the IRP with effect from 1 June 2016. In August 2018 he moved out of the area and was therefore no longer eligible to continue as a member of the panel and stood down from the panel from this date;

3 Page 31 Michael Duff Former senior manager in high tech and communications companies and former Parish Councillor. Appointed to the IRP with effect from 1 August 2013 until 31 March 2020;

David Holden Retired Solicitor who was a senior partner in private practice for over 25 years and former Parish Councillor. Appointed to the IRP with effect from 1 September 2011 and his current term of office runs until 30 June 2019;

Colin Jones Retired Financial Director and Chief Executive of various PLC Companies. Former County, District and Town Councillor. Appointed to the IRP with effect from 3 July 2017 until 2 July 2021; and

Sally Parnaby (Chairman) Former NHS Board Director. Appointed to the IRP with effect from 1 July 2015 until 30 June 2019.

3. The IRP’s primary task in considering allowances for 2019/20 was to review the remuneration of Members in accordance with the Local Authorities (Members Allowances) (England) Regulations 2003 (“the Regulations”). Under the terms of the Regulations and the associated guidance the following should be noted: a) The amount of Basic Allowance payable must be the same for all Members unless any have relinquished all or part of their entitlement; b) To be eligible for an SRA the post must have “significant additional responsibilities over and above the generally accepted responsibilities of a Councillor.” The number of SRAs should not exceed 50% of the total number of council Members; c) An element of voluntary service is expected and accepted.

4. The recommended allowance scheme is estimated to cost up to a maximum of £317,285. Broken down, this amounts to £282,885 in respect of basic and special responsibility allowances, and £34,400 in respect of travel and subsistence allowances.

5. The figures for South Lakeland District Council’s (SLDC’s) 2019/20 budget with respect to its General Fund are still being prepared but if the projected budget for 2019/20 from the Council’s Medium Term Financial Plan is used then the cost of this scheme represents up to a maximum of 2.48% of the SLDC budget projection of £12,788,900. Comparative work was carried out in preparation for the report. It was found that within the relevant peer group of comparator authorities there was a range of 2.0% to 2.9% for their proportion of the overall budget comprising Members’ allowances, with an average of 2.4%.

Scope of the Report

6. This report gives the IRP’s recommendations for the financial year commencing on 1 April 2019.

Methodology

7. A general invitation was sent to all Councillors to meet or communicate with the IRP, followed by a further invitation to Group Leaders to contact the panel. Four meetings

4 Page 32 of the IRP took place in 2018 in relation to this report, in July, August, September and October. The Panel found the responses made by Members informative and assisted them in their deliberations and would hope that Members continue to engage with the Panel in future deliberations.

8. The following Members attended one of the meetings of the IRP:-

 Councillor Tom Harvey;  Councillor Mark Wilson;  Councillor David Williams;  Councillor Robin Ashcroft; and  Councillor Eric Morrell.

In addition written responses were received from five Members.

9. The Chief Executive, Lawrence Conway also attended a meeting of the IRP.

10. The IRP has obtained comparative evidence from a sub-set of the District Councils forming the SLDC Peer Group. The list of comparative Councils and a breakdown of their allowances is attached at Appendix A. The IRP considers that care needs to be exercised when undertaking simple comparisons between authorities as there can be variances between SLDC and any comparator authorities.

11. The IRP applied the following principles to its deliberations:  Allowances should reflect the responsibilities, accountability, time and effort expected of Members but be set at levels which recognise the well established principle of voluntary unpaid public service;  Any scheme of remuneration should not discourage people from becoming Councillors for financial reasons;  Any scheme of remuneration should be easy to understand and administer;  Recommendations on remuneration should be arrived at following logical and consistent analysis of relevant information;  Expenses for travel, childcare/dependants and subsistence should not contain any element of “profit”.

12. Following the Local Government Boundary Commission (England) publishing their recommendations on the new electoral arrangements for SLDC in October 2016 and the implementation of the new wards in May 2018, the Panel sought feedback on how these changes had affected the work of a Councillor. The Panel concluded that it was too early to gain any significant insights and will keep this under review.

5 Page 33

The Basic Allowance

Current Arrangements

13. A Basic Allowance of £4,038 per annum is currently paid to Members. The Basic Allowance covers all the roles and activities of Members other than those that involve significant additional responsibility. Attendance at training is part of the work of Members for which they receive the Basic Allowance.

Review

14. The review of the Allowances Scheme undertaken by the IRP indicates that, in comparison with other peer group authorities, the methodology used is a satisfactory basis for determining the remuneration of District Councillors and is consistent with the IRP’s remuneration principles.

15. The IRP gave due consideration to the following points:  The current economic conditions for local authorities;  The anticipated pay settlement for SLDC employees of 2%. It was considered not appropriate to support an increase higher than that which SLDC employees will receive;  The fact that Members have only received four small increases in the last seven years and that this has led to a significant erosion of the value of the basic allowance in real terms;  The feedback from respondents;  The fact that, whilst a number of Members have multiple roles across different authorities, the IRP only considered evidence in respect of this Council. Therefore the recommendation of the IRP is as follows:

Recommendation

16. There should be an increase up to a maximum of 2% on the Basic Allowance for 2019/20 to bring it up to £4,118.76 per annum.

Special Responsibility Allowances

Current Arrangements

17. The Government’s “New Council Constitutions: Guidance on Consolidated Regulations for Local Authority Allowances” states that SRAs should only be paid when Members have “significant additional responsibilities” over and above the generally accepted responsibilities of a Councillor.

18. The SRAs currently claimable within SLDC are: -  The Leader of the Council (With Portfolio);  The Deputy Leader of the Council (With Portfolio);  The Leader of the Opposition;  The Chairman of the Council;  Other Members of the Council’s Cabinet (five);

6 Page 34  Chairmen of the Council’s Committees (eight);  Shadow Cabinet Members (except for the Leader of the Opposition (six));  The Political Group Leaders (three).

Review

19. In the light of the information submitted to the Panel there was a detailed discussion about all of the SRA’s.

20. The actual value of SRAs is based on an assessed level of additional responsibility, accountability, time and effort required over and above that associated with Members’ roles as front line Councillors which is covered by the Basic Allowance. The Panel did not receive any significant evidence either from individual Members’ submissions or from comparator information from other authorities which supported any change to the SRAs for:-

 Leader;  Deputy Leader;  Leader of Opposition;  Chairman of Council;  Other Members of the Council’s Cabinet;  Shadow Cabinet Members (except Leader of the Opposition); and  Political Group Leaders

21. Considering the SRA’s for the Chairs of Committees, the 2018/19 rate of allowance is £1,863 for each Committee Chair. From the evidence it considered, the Panel found that the time commitment varied greatly between the Chairs of some of the Committees. In addition, it was felt that the responsibility placed on some Chairs was of greater complexity and significance than that placed upon others

22. That being the case the Panel felt that there was a need to draw a distinction between the respective Chairs of each Committee. This was done using the parameters mentioned above of responsibility, accountability, time and effort (R.A.T.E). In light of this review, the Panel felt that the SRAs fell into three groups:-

 100% of £1,863 payable to the Chairs of Audit Committee, HR Committee, Lake Administration Committee and Overview & Scrutiny Committee;  50% of £1,863 payable to the Chairs of Licensing/Licensing Regulatory Committee and Standards Committee; and  150% of £1,863 payable to the Chair of Planning Committee

23. Upon careful consideration, the Panel felt that this approach was a fair and reasonable reflection of the four R.A.T.E parameters for each Committee Chair. This approach is consistent with that adopted by a number of comparator authorities within the benchmarking group.

24. Following the removal of the SRA for the role of Vice Chairman, the Panel reviewed this aspect of SRAs and concluded that there was no evidence forthcoming which justified any change.

Recommendation

22. That there be no change in the level of existing SRAs save for the allowances for the Chairman of the Licensing/Licensing Regulatory Committee and the Chairman for the

7 Page 35 Standards Committee which should be reduced to £931.50 and the allowance for the Chairman of Planning Committee which should be increased to £2794.50

Childcare/Dependants Allowances

Current arrangements

23. The current arrangement is a minimum of £3.00 and a maximum of £15.00 per hour, upon production of proof of payment. The rate is payable from the time of leaving home to returning home. The duties to which it applies are listed in Schedule 2 (Part 1) of the current Scheme of Allowances. There is no requirement for carers to be formally registered. The IRP considered that there was no requirement for a further review of this allowance. The allowance is considered sufficiently flexible to make adequate arrangements for the care of children and dependents.

Review

24. The Allowance was reviewed by the IRP.

Recommendation

25. That the upper limit of the allowance remains at £15 per hour, payable on production of receipts/invoices from carer(s) to the satisfaction of the Assistant Director (Resources). The IRP recommends that the allowance continues to be payable from the time the recipient leaves home to the time of return.

Travel and Subsistence Expenses

Current Arrangements

26. The recommended travel rates are based on Members receiving recompense for expenses necessarily incurred in carrying out their Approved Duties whilst providing no element of profit. The level of payment in respect of mileage is commensurate with the guidelines set by Her Majesty’s Revenue and Customs (HMRC).

27. The current mileage rate for travel outside Cumbria is the cheapest rail fare available for the journey or at a public transport rate of 50% of the car mileage allowance, giving a current rate of 22.5p per mile, whichever is the least amount. The preferred mode of travel is by public transport (if by rail at standard class rates) but where this is not feasible and Members use their own vehicles then mileage will be paid in accordance with the rates set by HMRC without attracting a tax charge (currently 45p per mile), this to apply to the first 150 miles of a return journey regardless of the destination and 25p per mile thereafter.

28. The subsistence rate is reviewed in line with the percentage annual increases in the Retail Price Index at 1 April each year, which is the method used for reviewing the subsistence rates paid to SLDC employees.

Review

29. As well as reviewing comparative information from Peer Authorities, the IRP found that there was a very low level of claims for subsistence from members. It is considered that no further comparative information from Peer Authorities is required. This being subject to the subsistence rates being increased by RPI at 1 April 2019

8 Page 36 Recommendations

30. That the list of Approved Duties for travel and subsistence as shown in Schedule 2 Part 1 of the recommended scheme be continued. 31. The current arrangements remain the same as last year. 32. Should the maximum Mileage allowance be increased by HMRC during the fiscal year then the Mileage Allowance will be increased to that maximum and backdated to the date of the increase by HRMC in that fiscal year.

Co-optees’ Allowance

Current Arrangements

33. Co-optees are currently permitted to claim an allowance of £37.63 per meeting.

Review

34. The IRP received no representations on this issue.

Recommendation

35. The IRP recommends that, in line with the recommended increase to Basic 2Allowances, Co-optees’ Allowance be increased by up to a maximum of 2% to bring it up to £38.38 per meeting.

Amendment of Scheme

36. In the event that the scheme is amended then any revised allowances shall apply from the date specified.

Scheme

37. The scheme, as attached as Appendix B to this report, is recommended for Council’s approval.

Acknowledgements

38. The IRP would like to express its gratitude to Anthea Lowe (Solicitor to the Council), Nicola Hartley (Solicitor) and Una Bell (Assistant Committee Services Officer) for their assistance in providing guidance regarding the relevant regulations, the collection of comparative data, collection of associated information regarding Council services, operational issues and arrangement of accommodation and hospitality for meetings.

39. In addition the IRP wishes to thank those Members and Officers who made representations to the Panel.

SALLY PARNABY CHAIRMAN INDEPENDENT REMUNERATION PANEL

22 November 2018

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Page 38 SLDC Independent Remuneration Panel- Comparator Authority Allowances 2018/2019 Appendix A

Authority No. of Basic Portfolio Leader Deputy Leader of Committee Committee Chair Vice- Other Councillors Allowance Allowance Allowance Leader Opp. Chairmen Vice- of Chair of (electorate per inc. basic Allowance Allowance Chairmen Council Council councillor*) allowance

SLDC 51 (1,607) £4,038 £6,060 £16,158 £7,170 £1,863 £1,863 £0 £1,863 £0 Group Leaders £2,329 (2- 5): £372 Planning (6 – 10): £496 (11 – 15): £621 (16 – 20): £742 (21 – 26): £871 (27+): £1,245 Shadow Cab: £505 Chichester 48 (1,909) £4,725 £7,000 £14,500 £7,200 £4,500 Planning £5,000 Page 39 Page Approved in £6,000 2016 for O&S, Audit, 2016 & Licensing subsequent £4,800 years. Standards £500 Review within 4 years. Craven DC 30 (1,477) £4,300 £1,075 £12,470 £4,300 £860 Planning, £430 £3,440 £430 2015 scheme. Standards, Provides for Select, Audit clawback by £2,150 Standards for non-attendance. Refers to pensions.

Eden DC 38 (1,102) £3,788 £4,735 £15,153 £4,735 £316 Scrutiny £632 Chair of £1,263 Scrutiny 2017 scheme to Planning Coordinating apply for next 4 £3,788 Board £1,894 years subject to Licensing Second largest increase as per £632 opposition staff pay award Audit £1,226 leader £158

SLDC Independent Remuneration Panel- Comparator Authority Allowances 2018/2019 Appendix A

Authority No. of Basic Portfolio Leader Deputy Leader of Committee Committee Chair of Vice- Other Councillors Allowance Allowance Allowance Leader Opp. Chairmen Vice- Council Chair of (electorate per inc. basic Allowance Allowance Chairmen Council councillor*) allowance Fylde 51 (1,199) £3,750 N/A £13,750 £3,000 Policy All Group Development Leaders - £32 Scrutiny, per member 2017 Scheme Community £2,000 Focus Scrutiny,

Development Management £4,000

Public Protection, £812.50

Page 40 Page Licensing £1,625

Audit, £990 £3,250

Standards £3,250 £1,625 North 43 (1,757) £4,661 £4,661 £16,313.50 £6,991.50 £6,991.50 O&S £2,330.50 Group Leader Devon DC £6,991.50 £222 per 2018/19 Member Scheme Planning, subject to Licensing £0 minimum of £4,661 £500.

Audit, Ethics £0 Ilfracombe £2,330.50 Harbour Board Chair HR £1,165.25 £0 £2,330.50

SLDC Independent Remuneration Panel- Comparator Authority Allowances 2018/2019 Appendix A

Authority No. of Basic Portfolio Leader Deputy Leader of Committee Committee Chair of Vice- Other Councillors Allowance Allowance Allowance Leader Opp. Chairmen Vice- Council Chair of (electorate per inc. basic Allowance Allowance Chairmen Council councillor*) allowance North 48 (1,730) £5,000 £6,650 £15,000 £6,650 Planning £6,250 £7,500 Norfolk £8,750 O&S, Audit, £0 Licensing, Standards £8,350

South 31 (2,230) £5,151 £5,151 £15,453 £7,727 Planning £2,576 £5,151 £1,288 Group Leaders Hams £7,727 £10,302 x no. DC O&S £5,151 £2,576 31

Page 41 Page Audit £3,863 £0 Licensing £2576 £0

Average 42.5 (1,626) £4,426 £5,047 £14,849 £5,874 £3,530 £3,931 £859

Cumbria 84 (4,593) £8,405 £10,100 £25,250 £14,140 £12,288 O&S, Health £5,269 £1,994 Second largest CC Scrutiny, Local opposition Committees (For info leader £5,269 (x6), Audit, only) Planning, Workington Cumbria Pensions Harbour Board £7,018 Chair £6,955

* European Union Referendum Electorate SLDC Independent Remuneration Panel- Comparator Authority Allowances 2018/2019

Appendix A

Authority* No. of Councillors Basic Allowance

(electorate per 2018/19 councillor*)

Cotswold 34 (2,021) £4,000

Derbyshire Dales 39 (1,463) £4,416

East Devon 59 (1,907) £4,360

Purbeck 25 (1,457) £4,790

Ryedale 30 (1,384) £3,776.71

Suffolk Coastal 42 (2,338) £4,883.40

Teignbridge 46 (2,255) £5,355 (2015-19 subject to CPI annual increase) West Dorset 42 (1,954) £5,250

*CIPFA Nearest Neighbours as per Local Government Association Website (Q3 16/17)

Page 42 Appendix B

RECOMMENDED MEMBERS’ ALLOWANCES SCHEME FOR 2019/20

Page 43 MEMBERS' ALLOWANCES SCHEME

The South Lakeland District Council, in exercise of the powers conferred by the Local Authorities (Members’ Allowances) (England) Regulations 2003, hereby makes the following scheme:-

1. This scheme may be cited as the South Lakeland District Council Members’ Allowances Scheme, and shall apply to the year commencing on 1 April 2019 and to subsequent years.

2. In this scheme,

“Councillor” means a member of the South Lakeland District Council who is a Councillor;

“year” means the 12 months ending with 31 March

“co-opted member” means a person who is not a member of the Council but who is a member of a committee or sub-committee of the Council.

Basic Allowance 3. Subject to paragraphs 8 to12, for each year a basic allowance of up to £4,118.76 shall be paid to each Councillor.

Special Responsibility Allowance 4. (1) for each year a special responsibility allowance shall be paid to those Councillors who hold the special responsibilities in relation to the authority that are specified in Schedule 1 of this scheme; and (2) subject to paragraphs 8 to 12, the amount of each such allowance shall be as specified in the said Schedule 1. (3) with the exception of Group Leaders’ Allowance, where a Councillor carries out more than one special responsibility, he/she will only be entitled to receive one allowance.

Child Carers’ Allowance 5. (1) An allowance in respect of the cost of child care for children up to the age of 14 shall be paid to Councillors of a minimum of £3.00 per hour, up to a maximum of £15.00 per hour. The allowance shall be payable from the time the recipient leaves home to the time of return. There is no requirement for carers to be registered.

(2) The allowance shall be payable when Councillors are required to arrange for child care when undertaking duties as a Councillor, in accordance with Regulation 7 of the Local Authority (Members Allowances) (England) Regulations 2003, upon production of proof of payment to the satisfaction of the Assistant Director (Resources). Those duties listed in Regulation 7 are set out at Schedule 2.

Dependant Carers’ Allowance 6. (1) An allowance in respect of the cost of a dependant carer shall be paid to Councillors of a minimum of £3.00 per hour, up to a maximum of £15.00 per hour. The allowance shall be payable from the time the recipient leaves home to the time of return. There is no requirement for carers to be registered.

(2) The allowance shall be payable when Councillors are required to arrange for dependent care when undertaking duties as a Councillor in accordance with Regulation 7 of the Local Authorities (Members Allowances) (England) Regulations 2003, upon production of proof of payment to the satisfaction of the Assistant Director (Resources). Those duties listed in Regulation 7 are set out at Schedule 2.

Page 44 Renunciation 7. A Councillor may by notice in writing given to the Assistant Director (Resources) elect to forego his or her entitlement or any part of his or her entitlement to an allowance under this scheme.

Part-year Entitlements 8. (1) the provisions of this paragraph shall have effect to regulate the entitlements of a Councillor to basic and special responsibility allowances where, in the course of a year, this scheme is amended or that Councillor becomes, or ceases to be, a Councillor, or accepts or relinquishes a special responsibility in respect of which a special responsibility allowance is payable; (2) if an amendment to this scheme changes the amount to which a Councillor is entitled by way of a basic allowance or a special responsibility allowance, then in relation to each of the periods (a) beginning with the year and ending with the day before that on which the first amendment in that year takes effect, or (b) beginning with the day on which an amendment takes effect and ending with the day before that on which the next amendment takes effect, or (if none) with the year the entitlement to such an allowance shall be to the payment of such part of the amount of the allowance under this scheme as it has effect during the relevant period as bears to the whole the same proportion as the number of the days in the period bears to the number of days in the year;

(3) where the term of office of a Councillor begins or ends otherwise than at the beginning or end of a year, the entitlement of that Councillor to a basic allowance shall be to the payment to such part of the basic allowance as bears to the whole the same proportion as the number of days during which his or her term of office subsists bears to the number of days in that year;

(4) where this scheme is amended as mentioned in sub-paragraph (2), and the term of office of a Councillor does not subsist throughout the period mentioned in sub-paragraph (2) (a), the entitlement of any such Councillor to a basic allowance shall be to the payment of such part of the basic allowance referable to each such period (ascertained in accordance with that sub-paragraph) as bears to the whole the same proportion as the number of days during which his or her term of office as a Councillor subsists bears to the number of days in that period;

(5) where a Councillor has during part of, but not throughout, a year such special responsibilities as entitle him or her to a special responsibility allowance, that Councillor’s entitlement shall be to payment of such part of the special responsibility allowance as bears to the whole the same proportion as the number of days during which he or she has such special responsibilities bears to the number of days in that year; and

(6) where this scheme is amended as mentioned in sub-paragraph (2), and a Councillor has during part, but does not have throughout the whole, of any period mentioned in sub-paragraph (2) (a) of that paragraph any such special responsibilities as entitle him or her to a special responsibility allowance, that Councillor’s entitlement shall be to payment of such part of the allowance referable to each such period (ascertained in accordance with that sub- paragraph) as bears to the whole the same proportion as the number of days in that period during which he or she has such special responsibilities bears to the number of days in that period.

Claims & Payments 9. The Basic and Special Responsibility Allowances will be paid automatically on a monthly basis unless the Councillor in question has renounced his entitlement to payment as set out in

Page 45 paragraph 7 above. Claims will be met for a period of up to 12 months from the date of the entitlement. 10. (1) payments shall be made in respect of basic and special responsibility allowance in instalments of one-twelfth of the amount specified in this scheme on the twentieth day of each month. (2) where a payment of one-twelfth of the amount specified in this scheme in respect of a basic allowance or a special responsibility allowance would result in the Councillor receiving more than the amount to which, by virtue of paragraph 8, he or she is entitled the payment shall be restricted to such amount as will ensure that no more is paid than the amount to which he or she is entitled. (3) All Councillors are reminded that the Council’s policy in respect of the submission of receipts should be adhered to at all times in order that the Council may maximise the recovery of VAT. Repayment of Allowance 11. Where payment of any allowance has already been made in respect of any period during which the Councillor concerned (a) ceases to be a member of the Council, or (b) is in any other way not entitled to receive the allowance in respect of that period, the Council may require that such part of the allowance as related to any such period be repaid to the Council. 12. Where a member of an authority is also a member of another authority, that member may not receive allowances from more than one authority in respect of the same duties.

Other Allowances 13. Travelling & Subsistence Expenses

(1) Councillors and co-opted members may claim travelling and subsistence expenses undertaken in connection with or relating to those duties specified as an approved duty at Schedule 2 Part I in accordance with Regulation 8 of the Local Authorities (Members Allowances) (England) Regulations 2003. The rate of travelling and subsistence are set out in Part II of Schedule 2. 14. Co-optees’ allowance (1) For each year an allowance shall be payable, if claimed, to a person who is not a member of the Council but who is a member of a committee or sub-committee of the Council in respect of attendance at conferences and meetings, in accordance with Regulation 9 of the Local Authorities (Members Allowances) (England) Regulations 2003. This amount shall be £38.38 per meeting. Co-optees to the Council will be paid their allowances on a monthly basis subject to submitting a claim form. (2) Where the appointment of the co-opted member begins or ends otherwise than at the beginning or end of a year, his or her entitlement shall be to payment of such part of the Co-optees’ allowance as bears to the whole the same proportion as the number of days during which his term of office as member subsists bears to the number of days in that year. (3) A co-opted member may by notice in writing given to the Assistant Director (Resources) elect to forgo his or her entitlement or any part of his or her entitlement to allowances.

Page 46 SCHEDULE 1

SPECIAL RESPONSIBILITY ALLOWANCE

The following are specified as special responsibilities in respect of which special responsibility allowances are claimable (in addition to the basic allowances) and the amounts of these allowances:-

£ p.a. Up to Leader of the Council (With 12,120.00 Portfolio) Deputy Leader of the Council (With 7,171.00 Portfolio) Other Members of the Cabinet 6,060.00 Leader of the Opposition 1,863.00 Chairman of the Council 1,863.00 Chairman of the Planning 2,794.50 Committee Chairman of the Audit, HR, Lake 1,863.00 Administration and Overview and Scrutiny Committees Chairman of the Licensing, 931.50 Licensing Regulatory and Standards Committees Group Leaders Number of Councillors 2 – 5 372.00 in the Group at the preceding Annual Council meeting 6 – 10 496.00 11 – 15 621.00 16 – 20 742.00 21 – 26 871.00 27 + 1,245.00 Members of the Shadow Cabinet 505.00 (with the exception of the Leader of the Opposition)

‘Group’ is as defined in the Local Government (Committees and Political Groups) Regulations 1990, and comprises of at least two Members.

Page 47 SCHEDULE 2 Part I

List of Approved Duties where travel and subsistence, and child care and dependants’ carers’ expenses may be claimed. (Note – Approved duty only applicable to Members of the relevant Committee, Sub-Committee, etc.)

List of Approved Duties (a) the attendance at a meeting of the authority or of any committee or sub-committee of the authority, or any other body to which the authority makes appointments or nominations, or of any committee or sub-committee of such a body; (b) the attendance at any other meeting, the holding of which is authorised by the authority, or a committee or sub-committee of the authority, or a joint committee of the authority and at least one other local authority within the meaning of section 270(1) of the Local Government Act 1972, or a sub-committee of such a joint committee, provided that:- (i) where the authority is divided into two or more political groups it is a meeting to which members of at least two such groups have been invited; or (ii) if the authority is not so divided, it is a meeting to which at least two members of the authority have been invited; (c) the attendance at a meeting of any association of authorities of which the authority is a member; (d) the attendance at a meeting of the Cabinet or a meeting of any of its committees, where the authority is operating executive arrangements; (To include:- (1) Informal meetings of Cabinet Members called by the Leader; (2) Leader and Portfolio Holders’ briefings with officers; (3) Portfolio Holders’ attendance on site visits and meetings with other organisation in connection with their responsibilities; and (4) Attendance by Portfolio Holders and their nominated Councillors at advisory and focus group); (e) travel and subsistence expenses are to be paid to those Members of the Shadow Executive attending formal meetings of the Cabinet, and other formal Council meetings to which they are invited in their role as Shadow Cabinet Members, and the attendance at up to 12 informal meetings of the Shadow Executive per Council year; (f) travel expenses are to be paid those members who attend a Parish or Town Council Meeting for their Ward save where they are also a member of that Parish or Town Council; (g) travel and subsistence expenses are to be paid to Members in respect of attendance at Local Area Partnerships and in connection with their duties; (h) the performance of any duty in pursuance of any standing order made under section 135 of the Local Government Act 1972 requiring a member or members to be present while tender documents are opened; (i) the performance of any duty in connection with the discharge of any function of the authority conferred by or under any enactment and empowering or requiring the authority to inspect or authorise the inspection of premises; (j) the carrying out of any other duty approved by the authority, or any duty of a class so approved, for the purpose of, or in connection with, the discharge of the functions of the authority or any of its committees or sub-committees. (These currently include the following):- (1) The attendance by Chairman/Vice-Chairman of the Council/Committee at agenda briefing meetings with officers where this is held on a day other than the day of the relevant meeting; (2) Council-run seminars and training events; (3) Civic duties undertaken by the Chairman and Vice-Chairman of the Council; (4) Site visits organised by Officers in respect of matters under consideration; and (5) Visits to other authorities/ organisations where specifically authorised by Council/ Committee.

Page 48 Part II

Travel

Public Transport will be paid at ordinary fare, standard class or cheapest fare for the journey whichever is the least amount.

The mileage rate for travel by car to be in accordance with the maximum rates set by HMRC without attracting a tax charge (currently 45p per mile), this to apply to the first 150 miles of a return journey regardless of the destination and 25p per mile thereafter.

Where the use of a taxi is unavoidable, the Council will reimburse the actual cost.

If because of a disability Members are driven to a meeting by their spouse/ partner it is appropriate for them to claim for double journeys in cases of long meetings. This will avoid the need for their spouse/partner to wait for the duration of the meeting.

The mileage rate for travel by bicycle and motorcycle to be in accordance with the maximum rates set by HMRC without attracting a tax charge (currently 20p and 24p per mile respectively).

When members car share to an Approved Duty the Mileage Allowance be increased by 5p per mile per passenger (maximum 4 passengers). Passengers may include Members and Officers of the Council

Appropriate incidental expenses, e.g. car parking charges, will be reimbursed on the production of receipts.

Subsistence The Council will reimburse actual expenses incurred by Members on subsistence on the production of receipts, subject to a maximum of:

Period of Absence Maximum Allowance

4 to 8 Hours £9.67

Over 8 but less than 12 Hours £13.82

Over 12 but less than 24 Hours £26.05

Overnight Stay Reasonable Actual Expenses

Bed & Breakfast Reasonable Actual Expenses

Note – the rates for travel expenses may change from 1 April 2019, in accordance with the rates issued by H.M. Revenue and Customs and subsistence in line with the increase in the Retail Price Index for the period from April 2019 to March 2020.

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Page 50 Item No.8

South Lakeland District Council Overview and Scrutiny Committee 26 October 2018 Cabinet 31 October 2018 Council 18 December 2018 Corporate Financial Monitoring Quarter 2, 2018/19

Portfolio: Finance Portfolio Holder Report from: Assistant Director Resources (Section 151 Officer) Report Author: Lee Hurst – Chief Accountant Wards: All Forward Plan: Not applicable

1.0 Expected Outcome 1.1 It is expected that Members note the projected year end position based on performance to the end of Quarter 2 2018/19, that Council approve the changes to the capital programme as set out in the report, and Cabinet approve the use of reserves identified in the report. 2.0 Recommendation 2.1 It is recommended that Overview and Scrutiny Committee:- (1) Note the contents of the report 2.2 It is recommended that Cabinet: (1) Note the contents of the report; (2) Request that Council approve the virements and budget changes to increase the capital programme as outlined in paragraph 3.6.1 and reflected in the revised capital programme at appendix 2; and (3) Approve the use of £82k of the Cumbria NDR Pool Income Reserve, £20k of the General Reserve, and £12k of the Statutory Duties Reserve as set out in paragraphs 3.5.2 to 3.5.4.

2.3 It is recommended that Council: (1) Note the contents of the report; and (2) Approve the virements and budget changes to increase the capital programme as outlined in paragraph 3.6.1 and reflected in the revised capital programme at appendix 2.

3.0 Background and Proposals

3.0.1 Revenue – Appendix 1 sets out the revenue variances to date. The approved net revenue budget for 2018/19 set by Council in February 2018 was £12.931m which included a Customer Connect savings target of £361k and a vacancy factor savings target of £560k. Additionally, carry forward requests of £486k were approved by

Page 51 Council on the 22nd May 2018. Expenditure budgets have been increased in accordance with those approved carry forwards along with the matching funding from reserves. Overall, at the end of Quarter 2, budget monitoring has identified a forecast year-end overspend of £251k. Trends identified in these budget monitoring results will be fed into the 2019/20 budget setting process.

3.0.2 Capital – Appendix 2 sets out the position on the capital programme. The capital budget for 2018/19 approved by Council in February 2018 was £4.655m. Carry forward requests of £3.249m were approved by Council on the 22 May 2018, and additional capital expenditure of £1.686m was approved by Council on the 24th July for the European Regional Development Fund (ERDF) Flood Alleviation Scheme (£1.557m) and Customer Connect Business Case (£129k) which, along with some other minor housekeeping virements brings the 2018/19 capital programme budget to £9.795m. Expenditure against this programme to the end of Quarter 2 was £2.366m. A revised capital programme will be submitted as part of the 2019/20 budget setting process.

3.0.3 Treasury – Appendix 3 provides an update on Treasury management for the quarter. All activity has been within the approved limits. Investments have performed better than the relevant benchmarks. No repayment of existing borrowing or new borrowing is anticipated up to the end of the financial year.

3.1 Revenue Variances by Assistant Director 3.1.1 Appendix 1 provides the detail of the revenue variances for each Assistant Director’s service area. The projected out-turn is for a net overspend of £251k. Further detail is provided below in Table 1 and paragraphs a) to e) below.

Table 1: Summary by Assistant Director Service Area

AD area Expenditure Income Expenditure Income Overall Out-turn Year- Budget Full Budget Variance Variance Variance projection end Year Full Year to Date to Date to Date £000 Carry £000 £000 £000 £000 £000 Forward £000 Resources (a) 23,725 -20,164 12 -43 -31 -78 0 Performance and 2,027 -67 -111 42 69 -25 -89 Innovation (b) Strategic Development (c) 8,537 -4,433 -130 174 44 227 -39 Neighbourhood Services 14,962 -8,469 -15 -188 -203 80 0 (d) Corporate (e) 191 -15,948 0 10 10 47 0 Total GF 49,442 -49,081 -244 -5 -249 251 -128 Net General Fund Before 361 Corporate Savings Target Corporate Savings (361) Target (para. 3.3.1) Net GF 0

a Resources – The current projection is for a £78k underspend at year-end. This relates to a number of smaller variances, as set out in Appendix 1. The main reasons are:  £10k underspend in Legal Services relating to vacant posts.  Additional Council Tax Support administration grant of £12k.  £20k underspend due to unclaimed Members allowances. This is due to specific Members not claiming and so no recurring saving has been identified.

Page 52  It is projected that bank charges may be £12k underspent as the pattern of fees is lower than budgeted, but activity has been low in the early part of the year so close monitoring will continue.  A one-off £41k budget saving due to a salary budgeting correction.  An £27k overspend on salaries in Finance due to backfilling of a business critical post with agency staff which was required to meet the statutory accounts closure deadline. b Performance and Innovation - The current projection is a £25k underspend. The full list of variances is detailed in Appendix 1. The main reasons are:  Part back-filled vacant posts in Customer Services resulting in a net underspend of £12k.  An overspend of £13k in Policy and Performance relating to payments for additional responsibilities and exceptional effort under the interim management arrangements.  A net salary underspend of £12k in Corporate Communications due to vacant posts.  A £14k underspend in Electoral Registration. This is the result of an underspend of £28k on equipment, partially offset by a £14k shortfall in grant.  Four vacant posts in ICT, two now recruited to, leading to an underspend of £59k. This is currently subject to a carry forward request to fund fixed-term posts in 2019/20.  A potential carry forward request of £30k relating to a contribution to Brewery Arts Centre development project due to delays in scheme implementation. c Strategic Development - There is currently a £227k forecast overspend with variances detailed in Appendix 1. The main reasons for the projected out-turn are:  Projected £12k surplus on Health and Safety income due to providing services externally.  Underspend of £12k due to £32k saving on vacant office cleaning posts offset by a £20k shortfall in rental income. Alternatives are currently being worked up with a consideration of the longer-term impact of the Customer Connect ‘Places’ (office accommodation) programme being taken into account.  A forecast £37k salary underspend in Development Implementation due to vacant posts. No recruitment is planned as this forms a key part of the Customer Connect changes.  Development Control salary overspend of £24k and income shortfall of £307k relating to planning applications. This is a mid-year projection based on comparison with earlier years. During budget setting for 2018/19 the planning fee charges and income budgets were increased by 20% (£118k) under a government initiative to direct the additional income into reinvestment in the planning process to deliver improvements in service delivery. Accordingly, a matching expenditure budget of £118k was created for 2018/19 to fund this investment. The current position of managing the planning service to maintain minimum service levels means that the planned reinvestment will not take place this financial year. Therefore it is proposed to reduce both the income budget and expenditure budget in the service by £118k through a housekeeping virement. As the actual planning fee prices will not be reduce, it is proposed that 20% of the actual planning fee income achieved in the year will be set aside to reinvest in the service in future years. Detailed proposals for the service will be developed as part of the budget setting process and through a report to Members.  A forecast underspend of £25k of the self-build and custom-build register element of the Housing and Enabling service.  Homelessness overall is projected to be £22k over budget. This is made up of a £37k income shortfall due to changes in the way Supporting People grant is

Page 53 allocated by the County Council for which future budgets will be amended, £10k additional homelessness grants from MHCLG, and net vacancy savings of £5k.  Land Charges is projected to overspend by £20k on the Positional Accuracy Improvement initiative. This overspend is to be funded from the existing Land Charges Trading Account surplus.  Local Plans is forecast to underspend on salaries by 27k due to vacant posts.  £13k underspend on the Museum management fee. The method of provision of this service is currently under review and future budgets will be amended accordingly. This underspend may be required to fund any potential costs relating to the implementation of the new arrangements.  A projected underspend of £39k in relation to the Community Housing Fund scheme due to delays in implementation. This underspend will be transferred back to the Community Housing Fund Reserve at the year end and therefore does not constitute an out-turn saving. d Neighbourhood Services - There is currently a £80k underspend projected. This is made up of a number of variances across the service as detailed in Appendix 1. The main reasons for the projected underspend are:  Car parking income is projected to overachieve its budget by £167k. Contextually, this is only a 3.8% overachievement of budget and is considered to be mainly due to the exceptionally good weather in the early part of the summer and particularly relates to the lakes car parks, while others, such as Kendal car parks, achieved income in line with expectations. It should be noted that a spell of bad weather could have a comparable negative impact on car park income and there have been some signs of this in September with winter still to come. Three car parks are due to be resurfaced over the coming months and the full impact of these closures has not been accounted for in the projection, although these are expected to cause only a minor impact. Furthermore, an underspend of £26k on Westmorland Shopping Centre Car Park relating to the structural survey costs, which came in under budget, have been requested to be used to cover costs relating to further work on car parking surveys to inform the car parking strategy.  A £26k income shortfall relating to Lake Windermere moorings due to a small number of jetty births not being let due to both the exceptionally dry weather and external market pressures. A capital scheme to dredge the births to improve access has been submitted.  A £35k underspend relating to Parks due to a 0.6 FTE Green Spaces Officer vacancy. A £49k overspend on Street Cleansing. The corporate vacancy saving will not be met leading to a salaries overspend of £20k. Furthermore, fuel costs are projected to be overspent by £18k due to the larger fleet, and tipping and disposal costs are forecast to be overspent by £11k due to increased waste volume requiring disposal. Both these issues will be built into budget setting for 2019/20.  The Transport service is forecasting a £49k overspend on vehicle repairs due to the additional number of vehicles in the fleet. Further work will be undertaken for the 2019/20 budget setting process.  Kerbside Recycling is projected to overspend by £174k. This is due to a number of variances within the service. A £28k shortfall on recycling credits is expected due to the impact of the hot summer on green waste, but tipping and disposal costs should be lower. Sale of recycling materials is expected to underachieve its income budget target by £66k due to low demand and low price for the materials. This could improve towards the end of the year should prices and demand increase as current market improvements are suggesting.  A £16k demand led underspend on emptying bring site recycling banks. Thismay result in a corresponding reduction in bring site credits.

Page 54 e Corporate items – Corporate items, which include the Council’s funding through taxation and grants, investment interest income and expenditure, and movements to and from reserves are currently forecast to be in £47k overspent.  Investment interest income forecasts are for a surplus of £15k. Short-term treasury investments are outperforming benchmarks and budgets do not include the recent interest rate rise.  Retained Business Rates income is expected to be £62k lower than budgeted. This is explained in paragraph 3.8.3.

3.2 Analysis of employee budgets

3.2.1 The position on employee costs at Quarter 2 is summarised in Table 2 below. The total variance against the Quarter 2 profiled budget is an underspend of £70k, 1.0% of the year to date budget. This is over and above the 4% vacancy saving built in to all direct employee cost budgets.

Table 2: Employee costs

Full year Profiled Actual to Variance Variance budget budget date to date £000 £000 £000 £000 % 14,576 7,325 7,255 -70 1.0%

3.2.2 To date, the profiled vacancy factor of £280k has been achieved as net vacancy savings after the vacancy factor stand at £444k, but also included in table 2. above is expenditure on contract and agency staff. The total overspend to date on this element of employee costs was £262k (£333k expenditure against a profiled budget of £71k). This expenditure on contract and agency staff equates to 4.5% of the total spend on employee costs up to Quarter 2. The majority of this relates to the Waste and Recycling service (£122k) which will be met from salary savings from within the service, Development Control (£56k) for which proposals are currently being developed, and the hostel (£36k) where compensating savings on security will be used to cover some of the costs. There is also an £86k overspend to date on allowances such as overtime, exceptional effort and merit payments. There were also some other minor overspends resulting in the net £70k underspend to date.

3.3 Savings, deficit and 2019/20 budget setting cycle

3.3.1 As part of the 2018/19 budget process, £361k of savings were built into the base budget to be delivered through vacancy management in the lead in to the Customer Connect programme. Table 2 above currently shows a £70k underspend to date on employee related budgets over and above the built in vacancy factor. Corporate Financial Monitoring forecasts suggest that this underspend should increase to a c£118k by the financial year end, but £59k of this forecast underspend is the subject of a carry forward request which, if approved, would leave a projected underspend of c£59k by the end of the financial year. But this underspend must also be viewed in the context of on overall net projected overspend across the Council of £251k.

3.3.2 Further Customer Connect savings of £740k for 2019/20 and £1.550m from 2020/21 onwards have been identified as part of the updated Customer Connect business case and the updated Medium Term Financial Plan both approved by Council during July. Detailed profiling of the exact timings of when these further future savings will be delivered is currently being undertaken by the programme manager and

Page 55 information on performance against these targets and the interaction with other budget variances reported earlier in this report will be reviewed in future budget monitoring reports and through Customer Connect programme monitoring.

3.3.3 As set out in the MTFP update to Council 24 July 2018, £0.554m of further budget reductions are required to set a balanced budget for 2019/20, rising to £2.036m by 2023/24. This figure includes £500k of unallocated growth and is after the savings from Customer Connect identified above have been applied. This deficit figure is being updated as part of the budget process as further considerations must now me taken into account, such as the loss of the Second Homes income from the county council.

3.3.4 The budget setting process for 2019/20 onwards is well underway, beginning over a month earlier than in previous years due to the obvious financial challenges faced. Budget Change Bids were considered by Corporate Management Team and Cabinet on the 14 September 2018 and options to deliver a balanced 2019/20 budget will be presented to Cabinet on 28 November 2018. These options will include the impact of future budget pressures and any potential recurring savings that are identified from 2018/19 budget monitoring.

3.3.5 An efficiency programme is also being developed to assess other areas that could deliver savings or additional income. This will ensure that robust proposals are in place to meet any savings targets over and above the £1.550m to be delivered from the Customer Connect programme.

3.4 Changes to Revenue budgets under delegation

3.4.1 A balanced 2018/19 budget was approved in February 2018. Since then, the major change relates to £486k of carry forward requests approved by Council 22 May 2018. A number of other increases to 2018/19 budgets have been made, funded by contributions from reserves. These are as follows:

 45k of the Economic Development Reserve has been temporarily allocated to cover the costs of submitting the ERDF Flood Alleviation Scheme application. It is proposed that this temporary funding be replaced by use of the Cumbria NDR Pool Income Reserve as the scheme is intended to protect businesses in the affected area. Therefore, approval is sought from Cabinet in paragraph 3.5.2 to allocate £45k of the Cumbria NDR Pool Income Reserve to fund the ERDF Scheme application process which will allow the Economic Development Reserve to be subsequently reimbursed.  £53k has been transferred back to the Economic Development Reserve after its temporary use to fund the progression of the Grange Lido work to RIBA Stage 2 & 3. A growth bid for the Grange Lido scheme was approved and so the scheme secured its own revenue funding source.  A number of transfers, totalling £264k, have been made from the Customer Connect Reserve to fund various aspects of the Customer Connect programme.

3.5 Revenue budget change request – use of reserves not delegated to officers.

3.5.1 A £70k use of the Cumbria NDR Pool Income Reserve in 2018/19 was approved by Council on the 24th July. Of this, £40k is to be used to fund the Lancashire and South Cumbria Economic Region initiative, where each of the partners have pledged to allocated £40k to the project to resource a programme of activity. A further £30k has

Page 56 been utilised to fund the bid writing elements of the application process for the ERDF Flood Alleviation Scheme for which the Council will act as accountable body.

3.5.2 An additional £45k is now required to fund the costs of the ERDF Flood Alleviation Scheme application process, for elements such as environmental, heritage and ecology studies. In addition, a sum of £25k is requested for use to fund the Kendal Markets review and of £12k to fund the project development phase of the Burton-in- Kendal Heritage Scheme. Therefore approval is sought for an £82k transfer from the Cumbria NDR Pool Income Reserve.

3.5.3 At the Council meeting on the 24th July 2018 it was requested that a £20k Community Projects Fund be created from the 2017/18 underspend on community grants. To facilitate this, approval is sought to transfer £20k from the General Reserve to the Community Grants budget heading.

3.5.4 A £12k transfer from the Statutory Duties Reserve is requested to fund the costs associated with dealing with the planning appeal for the Kirkby Moor Wind Farm planning application.

3.6 Capital programme

3.6.1 As outlined earlier, further to the £4.655m capital programme approved in February 2018 as part of the 2018/19 budget, Council approved 2017/18 carry forwards of £3.249m at its meeting on the 22nd May 2018. With the addition of these carry forwards and the £1.686m approved by Council on the 24th July 2018 for the ERDF Flood Alleviation Scheme and the Customer Connect Business Case, the capital programme approved by Council in July stood at £9.760m. Also required are a number of minor amendments which would bring the total of the current programme in Appendix 2 to £9.795m and for which we seek Council’s approval. The main reasons for these minor changes are:

 £34k virement from the revenue planned maintenance budget to complete the Kendal Town Hall stonework (£30k) and Waterhead public jetty (£4k).  £12k virement from car parking (revenue) to increase the funding to the Millerground play capital project.  £5k increase in expenditure budget for Abbott Hall playground (£2k) and Kendal Public Realm (£3.1k) to reflect income carry forwards approved by Council to facilitate the additional expenditure.  £63k reduction in the Nobles Rest Park Improvement budget as two invoices totalling this amount were charged back to 2017/18 and dealt with in the financing of the 2017/18 capital programme.  Expenditure budgets increased to reflect additional income secured to fund schemes totalling £47k. These related to Kendal Parks playground where £29k of additional income was secured through developer and councillor contributions, £17k for Nobles Rest park improvements secured through external and town council contributions, and £1k for Abbot Hall playground through an external contribution.

3.6.2 Spend against the £9.795m programme to the end of Quarter 2 was £2.366m with a further £1.252m committed expenditure through purchase orders. Of the £7.429m unspent budget, £1.501m is heavily reliant on third party partner organisations for delivery.

Page 57

Table 3: Summary of capital programme and expenditure

Full Year Budget Requires Expenditure Budget Remaining re-profiling £000 £000 £000 £000 Performance and Innovation 785 99 686 0 Strategic Development 5,174 893 4,281 1,857 Neighbourhood Services 3,836 1,374 2,462 0 Total 9,795 2,366 7,429 1,857

3.6.3 Appendix 2 contains further comments and updates on all capital schemes.

3.6.4 In prior years there has been significant re-profiling of the capital programme. New capital bids were considered by Cabinet on the 14 September 2018 and a revised programme will be presented to Cabinet on 28 November 2018. Potential re-profiling of £1.557m has been identified as the ERDF Flood Alleviation Scheme, for which we are acting as the accountable body, is still at the application stage. This application is due to be submitted by the end of November and even if work does begin in 2018/19, it is now our understanding that the Environment Agency will only draw down the funds periodically. Furthermore, potential re-profiling of £300k in relation to the Cross-a-Moor junction improvement scheme is also highlighted. This is a scheme lead by Highways England and the expenditure is likely to now fall into 2019/20. As the ERDF application process develops and the picture becomes clearer in relation to the Cross-a-Moor junction project, should it be required a request to approve this re- profiling will be sought as part of the updated capital programme submitted during the budget setting process.

3.7 Treasury Management

3.7.1 There are no issues to report in terms of compliance with the approved Treasury Management Strategy. Appendix 3 contains an overview of the Council’s position against the agreed indicators and limits.

3.7.2 To date the Council’s investments have performed well against market expectations. Furthermore, the Bank of England base rate increased by a quarter per cent to 0.75% on the 2nd August but investment interest income and expenditure budgets have not been increased for this.

3.7.3 All investment activity has been within the approved limits. Operational investment return continues to outperform the benchmarks, but core (Long Term) investments are 0.05% below the benchmark rate of 0.71%. This is as a result of investments from before the last rate rise still working their way through our portfolio. Borrowing is not expected to change and no repayment is planned at the current time, due to market conditions. 3.8 Collection Fund

3.8.1 Table 4 below sets out the Quarter 2 performance on local tax collection. The Council Tax Collection figure at 30 September 2018 is 58.23%, a decrease of only

Page 58 0.08% compared to the same period last year and in line with same period for 2016/17. Normal recovery procedures are now back in place after the implementation of the new system and it is expected that the collection rate will remain close to target.

3.8.2 The Non Domestic Rates (NDR) collection rate figure is 55.73% which is 0.20% lower than last year. Normal collection procedures were put back in place in mid-August, a little later than for Council Tax and only half wat through Quarter 2. It is expected that collection rates will continue to move closer to target as recovery procedures continue to take effect.

Table 4: Local Taxation Collection rate

Percentage 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Collected % % % % % % Quarter 2

Council Tax 58.76 58.60 58.64 58.20 58.31 58.23

Business 60.09 57.97 57.73 56.07 55.93 55.73 Rates

3.8.3 Monitoring of the business rate retention scheme has identified a reduction in business rates collectable for 2018/19 of £461k (1.1%), largely due to an increase in small business rate relief. This is offset by a reduction in the provision for appeals of £306k mainly due to a number of large appeals being withdrawn. Overall, after adjustments for levy and income from the pool, it is expected that the net income retained by the Council will be £62k lower than estimated.

3.9 Sundry Debts

3.9.1 The aim of this section is to describe the current debt position and to provide assurance over collection performance. Table 5 below summarises the current collection rate on sundry debts:

Table 5: Summary of collection

2013/14 2018/19 and 2014/15 2015/16 2016/17 2017/18 to date earlier £000 £000 £000 £000 £000 £000

Debt outstanding 74 8 16 43 55 1,228 Total value of invoices/credit 19,206 4,808 4,606 5,028 5,086 3,168 notes raised Collection Rate (%) 99.6% 99.8% 99.6% 99.1% 98.9% 61.2%

An analysis of outstanding sundry debts reveals that over 99% of debts have been recovered in years up to 2016/17, and 98% of debts in 2017/18. In the current year to date, 61% of debt has been recovered, but 62% of the current year debt is still

Page 59 within its credit terms so not overdue. The table below splits down in more detail the age profile of the current outstanding debts.

Table 6: Age profile of 2018/19 invoices

2018/19 Invoices £000 6 months overdue 0 5 months overdue 40 4 months overdue 8 3 months overdue 31 2 months overdue 25 1 month overdue 365 Not yet due 759 Total end of Quarter 1 1,228

3.9.2 Significant success has been achieved in resolving encroachment disputes in recent months. At the end of June 2017 the total debt (across all financial years) relating to encroachments was £224k, this was reduced to £114k at the end of September 2017 and is now £72k for all years where the sums are overdue. Of the remaining outstanding debt for 2018/19, £322k relates to a single invoice which is in the process of being cancelled and reissued for a revised amount, and which will then be paid promptly. £40k of the remaining outstanding debt relates to invoices which have instalment payment plans arranged.

4.0 Consultation 4.1 Senior management, budget holders and the Finance Portfolio Holder have been consulted. 5.0 Alternative Options 5.1 There are no alternative options. 6.0 Links to Council Priorities 6.1 Regular budget monitoring forms part of the corporate governance arrangements that support all Council priorities. 7.0 Implications Financial, Resources and Procurement 7.1 Financial and resource information are contained within the report. Human Resources 7.2 There are no direct Human Resources implications of the report. Legal 7.3 There are no direct legal implications of the report. Health, Social, Economic and Environmental 7.4 Have you completed a Health, Social, Economic and Environmental Impact Assessment? No 7.5 If you have not completed an Impact Assessment, please explain your reasons: This report is an historic review of financial performance to the end of Q2. The overall

Page 60 impact assessment of the choices and decisions required to set the annual budget is undertaken at budget setting time. 7.6 Summary of health, social, economic and environmental impacts: There are no additional Health, Social, Economic or Environmental impacts as a result of the report. Equality and Diversity 7.7 Have you completed an Equality Impact Analysis? No 7.8 If you have not completed an Impact Assessment, please explain your reasons: This report is an historic review of financial performance to the end of Q2. The overall impact assessment of the choices and decisions required to set the annual budget is undertaken at budget setting time. 7.9 Summary of equality and diversity impacts: There are no additional Equality impacts as a result of the report. Risk Risk Consequence Controls required Not effectively managing Possible legal challenge, Scrutiny of budgets budgets could lead to audit qualification and ultra through review of overspending. vires expenditure. monitoring reports. Recurring pressures or savings Medium Term Financial Regular monitoring of are not identified Planning may not reflect budgets in year to inform the future impact of current the MTFP and annual issues. budget setting process.

Contact Officers Lee Hurst, Chief Accountant, [email protected], 01539 793599 Helen Smith, Financial Services Manager, [email protected], 01539 793147

Appendices Attached to this Report Appendix No. Name of Appendix Appendix 1 Detailed Revenue Budget Monitoring Appendix 2 Detailed Capital Budget Monitoring Appendix 3 Treasury Management Review

Background Documents Available Name of Background document Where it is available 2018/19 Budget Book including https://tinyurl.com/ybarr92t MTFP projections Budget Setting Report https://tinyurl.com/y7h7ehne Medium Term Financial Plan https://tinyurl.com/ya988w5b 2019/20-2023/24

Tracking Information Signed off by Date sent Legal Services N/A

Page 61 Signed off by Date sent Section 151 Officer 09/08/2018 Monitoring Officer N/A SMT 11/08/2018

Circulated to Date sent Assistant Director 09/08/2018 Human Resources Manager N/A Communications Team N/A Leader N/A Committee Chairman N/A Portfolio Holder N/A Ward Councillor(s) N/A Committee N/A Executive (Cabinet) 31/10/2018 Council 18/12/2018

Page 62 Appendix 1 The purpose of this appendix is to set out the revenue budget variance projections based on data up to 30/09/2018 Period-6 Expenditure Expenditure Income Overall Carry Income Budget Out-turn Budget Full Variance Variance Variance Forward Service Portfolio Full Year projection Commentary Year to Date to Date to Date Requests £ >£10k £ £ £ £ >£10k Resources

Housing People £22k underspend from salaries but it is anticipated that some of ECL Legal 55,014 -30,250 -22,086 2,964 -19,122 -10,000 0 and Innovation this will be needed to acquire services elsewhere so forecast 10k.

EFS Financial Services Finance 18,277 -4,000 30,065 1,923 31,988 27,000 0 Vacancy savings target will not be met. Localised Council Tax Support Admin Grant greater than GBN Council Tax Benefits Finance 341,310 -65,826 2,125 -14,515 -12,390 -12,390 0 anticipated. Health and GMM Members Wellbeing 465,504 0 -28,153 0 -28,153 -20,000 0 Unclaimed Members' allowances. GTH Other Items Finance 5,000 0 -38,500 -150 -38,650 -41,000 0 One off budget savings. Pattern of fees to date lower than budgeted, we will continue to GTV Bank Charges Finance 94,051 0 -7,056 0 -7,056 -12,000 0 monitor closely during the year. Other Resources 22,746,151 -20,064,167 75,293 -33,273 42,020 -10,000 Individual variances <£10k Total Resources 23,725,307 -20,164,243 11,687 -43,051 -31,363 -78,390 0

Performance and Innovation

Housing People Underspend on vacant post, part back-filled by contractor and ECU Customer Services 227,302 0 -8,060 0 -8,060 -12,000 0 and Innovation overtime £12k. Underspend on four vacant posts £99k; recruitment to two posts expected by September, part offset by corresponding shortfall on Page 63 Page Housing People Eden shared service recharge £40k, net carry forward request to ERI Information Services 29,212 0 -41,828 0 -41,828 0 -59,400 and Innovation fund two fixed term ICT Officers posts; Customer Connect saving on NDL software £12k, offset by increased MS license costs £12k. Underspend on vacant posts £6k, offset by Customer Connect Health and EXS Policy and Performance Wellbeing -120,817 -9,400 16,112 -6,800 9,312 13,000 0 related additional responsibilities and exceptional effort costs £19k. Corporate Promoting South Underspend on vacant post, part back-filled by contractor and GCC 166,763 -3,393 -5,279 1,697 -3,582 -12,000 0 Communications Lakeland overtime £12k. Potential underspend on Brewery Arts contribution to GCG Community Grants Finance 837,869 0 -27,605 0 -27,605 0 -30,000 development project £30k, subject to update on project implementation, may require carry forward to complete. Housing People Potential underspend on 2017/18 carry forward equipment £28k, GER Electoral Registration 254,509 -31,657 3,933 -526 3,407 -14,000 0 and Innovation part offset by grants shortfall £14k. Other Performance and Innovation 631,688 -22,371 -48,487 47,781 -706 0 Individual variances <£10k Total Performance and Innovation 2,026,526 -66,821 -111,213 42,153 -69,061 -25,000 -89,400

Strategic Development Health and Potential £12k surplus income due to services being provided and EHS Health and Safety 608 -600 -2,513 -13,025 -15,538 -12,000 0 Wellbeing recharged to Eden Council. Underspend on South Lakeland House cleaners' vacant posts Economy and EPX Offices Assets 50,269 -21,842 -22,123 8,459 -13,664 -12,000 0 £32k, part offset by South Lakeland House rental income shortfall £20k due to rented space discontinued. Net underspend on Development Implementation vacant posts AD Community Inv and Economy and EUR 608 0 -18,425 -90 -18,515 -37,000 0 £13k; net underspend on Development Management vacant post Dev Assets £24k, Net underspend on vacant post £39k due to delay in scheme GCH Community Housing Fund Finance 41,770 0 -17,410 0 -17,410 0 -39,000 implementation (any underspend to be transferred back to reserve at year-end). Vacancy saving £24k may not be achieved due to back-filling with Housing People GDC Development Control 1,299,333 -743,256 -19,470 156,749 137,279 331,000 0 agency; potential demand led income shortfall relating to planning and Innovation applications of £307k based on comparison to previous year. Expenditure Expenditure Income Overall Carry Income Budget Out-turn Budget Full Variance Variance Variance Forward Service Portfolio Full Year projection Commentary Year to Date to Date to Date Requests £ >£10k £ £ £ £ >£10k Housing People Potential underspend £25k self build and custom build housing GEN Housing Enabling Role 998,883 0 -16,062 0 -16,062 -25,000 0 and Innovation register. Supporting People income shortfall £37k due to Cumbria County Housing People GHL Town View Fields Hostel and Innovation 385,885 -268,273 -4,552 36,636 32,084 37,000 0 Council changing to block grant basis. Budget Pressure to be revised as part of 2019/20 budget setting. Housing People Grants received £10k higher than budgeted, net underspend GHM Homelessness 478,016 -101,503 -8,836 -15,347 -24,184 -15,000 0 and Innovation vacant posts £32k, partially offset by agency costs £27k. Housing People GLP Local Plans and Innovation 564,563 -112 -6,032 -244 -6,276 -27,000 0 Net underspend vacant posts £27k. Underspend on management fee £13k due to budget set too high, Culture and may be required to fund in-year costs of implementing new GMU Museum 296,148 0 -12,902 0 -12,902 -13,000 0 Leisure arrangements with Kendal College. budget to be revised in future years. Other Strategic Development 4,420,627 -3,296,930 -1,673 1,125 -548 0 Individual variances <£10k Total Strategic Development 8,536,710 -4,432,516 -130,000 174,263 44,263 227,000 -39,000

Neighbourhood Services Potential underspend of £26k on £50k growth budget for Westmorland Shopping Centre Car Park structural survey. Economy and GCK Car Parks Assets 2,717,089 -4,369,983 -17,143 -243,265 -260,408 -167,000 0 Request to use this underspend to fund car parking surveys. Potential demand led surplus on car parking income £166k, (impact of three re-surfacing's expected to be minimal). Page 64 Page Culture and Potential shortfall jetty berths £26k due to low water levels during GLW Lake Windermere 804,985 -1,425,493 3,683 11,750 15,433 26,000 0 Leisure summer. Potential £35k net underspend on vacant 0.6FTE Green Spaces GPK Parks Environment 1,337,392 -74,532 -23,917 94 -23,823 -35,000 0 Officer, and apprentice post. Net overspend on salaries circa £20k, due to corporate vacancy budget will not be met; potential overspend on fuel £18k due to GTG Street Cleansing Client Environment 1,372,109 -6,575 42,472 3,110 45,581 49,000 0 more vehicles on fleet and higher mileage; demand led overspend on tipping and disposal £11k. Potential overspend on repairs £49k, due to more vehicles on GTS Transport Environment 75,792 -74,940 28,377 -7,142 21,235 49,000 0 fleet, further investigation to be carried out for 2019/20 budget setting. Net overspend on salaries circa £80k, due to corporate vacancy budget will not be met; potential demand led shortfall £28k on recycling credits due to hot summer impact on green waste (this GWK Kerbside Recycling Client Environment 5,040,998 -1,538,454 -9,976 51,887 41,912 174,000 0 may result in a corresponding reduction in tipping and disposal costs); potential demand led shortfall £66k on sales of materials based on comparison to previous year. Potential demand led underspend £16k on emptying bring site GWR Waste Recycling Environment 262,139 -144,830 -17,128 -11,547 -28,676 -16,000 0 recycling banks (this may results in a corresponding reduction in bring site credits). Other Neighbourhood services 3,351,750 -834,187 -21,385 7,036 -14,350 0 Individual variances <£10k Total Neighbourhood Services 14,962,254 -8,468,994 -15,017 -188,079 -203,096 80,000 0

Corporate items Interest to date is slightly higher than budgeted we will continue to VGR26 Interest Recievable 0 -175,500 0 0 0 -15,000 0 monitor closely during the year. Budgets do not assume an interest rate rise. A reduction in business rates collectable for 2018/19 of £461k (1.1%), largely due to an increase in small business rate relief. This is offset by a reduction in the provision for appeals of £306k VGR44 Interest Recievable 0 -3,440,500 0 0 0 62,000 0 mainly due to a number of large appeals being withdrawn. Overall, after adjustments for levy and income from the pool, it is expected that the net income retained by the Council will be £62k lower than estimated. Other Corporate items 190,915 -12,332,138 0 10,328 10,328 0 Individual variances <£10k Expenditure Expenditure Income Overall Carry Income Budget Out-turn Budget Full Variance Variance Variance Forward Service Portfolio Full Year projection Commentary Year to Date to Date to Date Requests £ >£10k £ £ £ £ >£10k Total Corporate items 190,915 -15,948,138 0 10,327 10,328 47,000 0 Individual variances <£10k

Total GF 49,441,712 -49,080,712 -244,543 -4,387 -248,930 250,610 -128,400 0 Net GF 361,000 Page 65 Page This page is intentionally left blank

Page 66 SLDC 2018/19 Capital Programme Monitoring Period 6 Appendix 2

Full Year Variance Expenditure re-profiling AD/code Scheme Portfolio Budget to Date Commentary £ £ £ £

Performance and Innovation Locally Important Projects Culture and KIP01 (previoulsy presented within 295,367 40,500 -254,867 Budget allocated to schemes except for circa £41k Leisure revenue) Housing, People Specification and integration with new digital platform to be KIT27 Mobile Working 120,000 0 -120,000 and Innovation assessed before project can begin. Housing, People KIT30 Digital Innovation Project 290,000 25,625 -264,375 Current budget committed. and Innovation Housing, People KIT90 IT Replacement Fund 80,000 32,933 -47,067 and Innovation Total Performance and Innovation 785,367 99,058 -686,309 0

Strategic Development Former Knitwear Factory Economy and Scheme complete, final account outstanding. Overspend to be KDE04 89,154 95,955 6,801 Page 67 Page Ulverston Assets covered. Bid for ERDF funding to be submitted to MHCLG on 23 November 2018. Planning permission (early March 2019) and EA ERDF Funded Flood Defence Economy and Internal Business Case (11 March 2019) must be in place prior to KDE06 1,556,700 0 -1,556,700 1,556,700 Works Assets decision on ERDF funding, anticipated in early April. Grant and partnership agreements must be signed by end of April 2019. Therefore no expenditure anticipated in 2018/19. Work complete and now in defects liability period. Retention to Economy and KCD01 Castle Dairy 19,932 0 -19,932 pay. Contractor has gone into administration so payment and Assets timing uncertain. Work yet to be agreed. Public consultation to take place before KEP52 Disabled Toilet Improvements 50,000 0 -50,000 work starts. Community Infrastructure Economy and KIL01 0 16,112 16,112 Levy Assets Ulverston Asset Transfer Economy and KLH02 79,767 0 -79,767 Funds to be transferred to UCE when bid completed. programme Assets Economy and KLH03 Kendal Town Hall stonework 32,866 25,724 -7,142 Completed and now in defects liability period. Assets Economy and Network Rail - credit note against invoice for installation of KMR01 Grange Footbridges 0 -5,262 -5,262 Assets refurbished footbridge no.19 Clare House Lane Wordsworth Trust Aiming to schedule the payment in one sum to Wordsworth Trust KMR32 42,000 0 -42,000 Contribution by 30 September. KMR34 Kendal Castle 42,000 0 -42,000 Work to paths to be arranged this year. Economy and KMR21 Kendal Museum alterations 85,000 0 -85,000 Cabinet report to include approval of payment to Kendal College. Assets SLDC 2018/19 Capital Programme Monitoring Period 6 Appendix 2

Full Year Variance Expenditure re-profiling AD/code Scheme Portfolio Budget to Date Commentary £ £ £ £ Towpath Trail Kendal- Remaining £120k payment to CCC to be made soon once grant KPE18 Environment 140,000 20,000 -120,000 Lancaster agreement has been finalised. Work complete and now in defects liability period. Retention to KRE53 Kendal Public Realm Environment 22,600 6,865 -15,735 pay. Underspend earmarked for other public realm project. Completed and now in defects liability period. Payments to be KRE55 New Road Common Environment 231,023 219,243 -11,780 made shortly to expend all budget. Work has started with consultants re drainage repairs by United Grange Promenade structural Utilities. Meeting held with Natural England and Environment KRE66 Environment 100,000 0 -100,000 works Agency on site, but awaiting a decision on the Lido before moving to further approval by Natural England. £99,000 housing association grant to be paid Q3 (legal delay). Affordable Homes TC Prop Housing, People Further 3 empty homes grants totalling £60,000 to be paid in Q3 KAH10 359,000 2,000 -357,000 Empty and Innovation and Q4. Remaining balance of £198,000 may need to be

Page 68 Page transferred to the DFG budget (KGD21). To review end Q3. Highways England leading scheme to build a roundabout to Other Housing Schemes enable delivery of 1000 homes. Discussions on-going re specifics Housing, People KAH11 (Cross-a-Moor junction 300,000 0 -300,000 300,000 of funding agreement to include SLDC's £300k and £1.7m and Innovation improvements) developer contributions. SLDC contribution now likely to be paid next financial year. Housing, People KAH12 Town View Fields works 0 -927 -927 Complete and Innovation Commuted Sums Affordable Housing, People Grant applications totalling £110,000 expected shortly and to be KAH13 146,000 0 -146,000 Housing and Innovation paid by Q4. Underspend of £36,000 expected. Demand for DFGs continues to be high so full budget expected to Housing, People KGD21 Mand Disabled Fac Grants 743,400 487,381 -256,019 be spent by year-end. Likely overspend to be reviewed end Q3 and Innovation (see KAH10 above). Housing, People Awaiting signing of legal agreement with SLH before £495k grant KRT10 Right To Buy Replacement 495,000 0 -495,000 and Innovation can be provided. To be paid Q3 due to legal delay. £16k spent in Q1 and a further £90k to be spent in Q3. Housing, People Remainder is allocated for full spend by year-end but will depend KCH01 Community Housing Fund 490,000 16,022 -473,978 and Innovation on progress made by individual community land trusts. Application for £350,000 received and awaiting to be processed. Energy Saving Building Economy and Draft report from consultant on review of 7 main buildings KXB27 149,200 10,000 -139,200 Enhancement Assets received. Works to follow in this financial year. Total Strategic Development 5,173,642 893,113 -4,280,529 1,856,700 0 Neighbourhood Services Flood Impact Works Rothay Out to tender. Work to complete in September. Underspend on KEG35 Environment 207,200 30,941 -176,259 Park scheme expected. SLDC 2018/19 Capital Programme Monitoring Period 6 Appendix 2

Full Year Variance Expenditure re-profiling AD/code Scheme Portfolio Budget to Date Commentary £ £ £ £ Design work done, work to take place Sept-Oct when KRE61 Waterhead Public Jetty Environment 31,431 3,996 -27,435 Environment Agency approval granted. Leisure Centres inc KLC Culture and KLC01 159,567 153,090 -6,477 Completed and now in defects liability period. Retention to pay. changing room refurbishment Leisure Work complete. Defects/ snagging to finalise. Underspend KLL17 Ferry Nab redevelopment Lake Admin 42,644 0 -42,644 expected. Cockshott Point entrance KLL18 Lake Admin 1,750 0 -1,750 improvements Work to start January. Planning submitted and tender documents Braithwaite Fold Caravan KMR33 Lake Admin 214,300 5,205 -209,095 being prepared. Additional income from improvements not Park expected until 2019/20. Culture and Uncertainty regarding plans to progress this project. £24k scheme KMR31 Festival Infrastructure 64,800 0 -64,800 Leisure for lamp post banners in Kendal being developed. Budget re-allocated to be used for work at Maryfell (£10k), KNM51 Play Areas Environment 0 0 0 Page 69 Page Rayrigg Meadow (£27.7k), Broadgate Meadow (£5k). KNM54 Rinkfield Playground Environment 3,447 0 -3,447 Project complete. KNM55 Hallgarth Phase 2 Environment 80,000 0 -80,000 Awaiting confirmation of grant funding. Path works (£80k) to start on site in October. Remainder for KNM56 Millerground Play Project Environment 160,539 5,215 -155,324 playground out to tender in Sept, completion expected April 2019. Plans in place, awaiting councillor approval. £60k budget has Play Space Audit been re-allocated to Lightburn Park (£10k), Maryfell (£10k), KNM57 Environment 0 0 0 Implementation Greenbank (£10k), Rayrigg Meadow (£10k), Broadgate Meadow (£10k), Abbot Hall (£10k). Work at Howe Bank (£45k) to complete Sept. Work at Hayclose KNM58 Kendal Parks playground Environment 78,410 0 -78,410 Road (£80k) to commence in Sept, to finish in Nov, subject to assurance of funding. Lightburn Park MUGA & MUGA compete. Work on playground awaiting successful grant KNM59 Environment 115,852 79,500 -36,352 playground applications. KNM60 Abbot Hall Playground Environment 58,000 0 -58,000 Awaiting further funding. KNM61 Yew Tree Playground Grange Environment 5,000 0 -5,000 Awaiting final grant. Greenbank & Castlefield Play KNM62 Environment 30,000 0 -30,000 Area KNM63 Queens Park play area Environment 10,000 0 -10,000 Broadgate Meadow KNM64 Environment 35,000 0 -35,000 Grasmere KNM65 Maryfell Sedbergh Play Area Environment 20,000 0 -20,000 KNM66 Rayrigg Meadow Play Area Environment 37,753 0 -37,753 SLDC 2018/19 Capital Programme Monitoring Period 6 Appendix 2

Full Year Variance Expenditure re-profiling AD/code Scheme Portfolio Budget to Date Commentary £ £ £ £ Economy and Potential saving on this scheme as orders placed (£106k + £3k) KPY42 Car Park machines update 140,000 410 -139,590 assets will complete project. Town and Car Park/public Economy and KPY44 16,200 2,649 -13,551 Will be fully utilised this year. information Signs assets SLH Car Park - structural Economy and Work to take place either Sept/Oct or Feb/Mar to avoid Xmas KPY45 377,541 0 -377,541 repair and re-surfacing works assets period. Economy and Buxton Place to be resurfaced in October, other planned car KPY46 Car Park Resurfacing 339,730 23,185 -316,545 assets parks (Red Bank, Park Road) out to tender. With planning. Parking study appraisal of need for car park to Economy and KPY48 Parkside Rd Car Park 160,400 234 -160,166 take place, following low take-up of discounted parking at Kendal assets Ski Club. KRE65 The Glebe Planting Environment 50,000 37,463 -12,538 Work complete, final account to be paid.

Page 70 Page Expected £20k overspend on this scheme, due to weather Nobles Rest park KLR31 Environment 178,100 178,359 259 conditions over winter delaying scheme and subsequent extra improvements costs. Virement from other underspent schemes to be arranged. Spend dependant on Electricity North West and Cumbria CC KFL01 Footway Lighting Environment 49,400 0 -49,400 programming works.

Expected spend in 2018/19 £100k. Demand is high from Refurb Replace Recycled customers to replace damaged bins and provide additional bins to KSC91 Environment 60,000 47,228 -12,772 Bins properties. Furthermore new build developments of approximately 800 homes in year each require servicing.

Actual cost of two new Romaquip vehicles less than anticipated, saving of £33k.Boat engine for lake wardens now quoted at £30k, KSC91 Vehicle Purchase Environment 1,109,002 806,276 -302,726 budgeted £50k, saving of £20k. Recycling vehicle (£158k), tractor (£25k) and boat engine still to be purchased in year. Savings and uncommitted budget (£37k) leave projected underspend of £90k.

Total Neighbourhood Services 3,836,066 1,373,751 -2,462,315 0

GRAND TOTAL 9,795,075 2,365,922 -7,429,153 1,856,700 Appendix 3

2018/19 Quarter 2 Treasury Management Update This appendix reviews treasury performance for the period 01/04/2018 – 30/09/2018 against the Council’s Treasury Management Strategy, which was approved by Council on 27th February 2018 The Councils Treasury Management operation ensures cash flows are adequately planned, with surplus monies being invested in low risk counterparties, providing adequate liquidity initially before considering optimising investment return. The second main function of the treasury management service is the funding of the Council’s capital plans. These capital plans provide a guide to the borrowing need of the Council, this is the element of the capital programme that is not financed from external grants, capital receipts or other contributions. Which when added to the Council’s Capital Financing Requirement (CFR) shows the underlying borrowing need of the Council. This underlying borrowing need is managed by the treasury team through short and long term borrowing arrangements and the use of longer term cash flow surpluses.

Borrowing No new borrowing has been undertaken in the year to date, therefore the Council has maintained external borrowing at £12.8 million. As a result, gross and net borrowing are below the capital financing requirement (CFR). This is a key indicator as it shows that the Council is not borrowing to fund revenue activities or borrowing to lend-on.

Table 1: Borrowing Limits

£m Actual borrowing 12.800 Authorised limit 24.600 Operational boundary 18.600 Capital Financing Requirement 18.558 (CFR)

Table 1 also shows that the Council hasn’t breached its operational boundary and authorised limit (which must not be breached) on external debt.

The current premium on the Councils borrowing is circa 69% (i.e. £690k per £1m repaid), which would take nearly 18 years to repay. This is not low enough to consider making an early repayment, however we will keep this under review.

It is anticipated that the Council will not need to undertake any additional borrowing in 2018/19, with the increase in the CFR being met through the use of cash balances, increasing our internal borrowing position. Our internal borrowing position is estimated to be £5.758 million or 31% of the CFR at year end. This position will be carefully monitored against changes to reserves to ensure that the position is sustainable.

Page 71 Appendix 3

Investments

Graph 1 below shows the movement on the Councils investment portfolio between 01/04/18 and 30/09/18.

45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000

0

07/04/2018 14/04/2018 21/04/2018 28/04/2018 05/05/2018 12/05/2018 19/05/2018 26/05/2018 02/06/2018 09/06/2018 16/06/2018 23/06/2018 30/06/2018 07/07/2018 14/07/2018 21/07/2018 28/07/2018 04/08/2018 11/08/2018 18/08/2018 25/08/2018 01/09/2018 08/09/2018 15/09/2018 22/09/2018 29/09/2018

OpeningBalance Call Operational Fixed Operational Core Investments

The Council held £28.95m of investments as at 30 September 2018. Table 2 shows the outstanding investments by type.

Table 2 Investment Summary

Counterparty Value (£m) Call Operational Blackrock 1.950 CCLA 0.000 Fixed Operational Bank of Scotland 3.000 Coventry Building Society 1.000 Leeds Building Society 1.000 NatWest (Ring Fenced Bank) 1.000 Nottingham Building Society 1.000 Principality Building Society 1.000 Sumitomo Mitsui Bank 1.000 Toronto Dominion Bank 2.000 West Bromwich Building Society 1.000 UK Treasury Bills 2.995 Fixed Core Goldman Sachs 2.000 Lancashire County Council 3.000 Nationwide Building Society 1.000 Newcastle Building Society 2.000 NatWest (Ring Fenced Bank) 1.000 Sumitomo Mitsui Bank 2.000 Surrey Heath Borough Council 1,000 28.945

Page 72 Appendix 3

Graph 2 below shows the maturity profile of the Councils investment portfolio split between operational and core investment types

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0 Call 1 Month 1-3 Months 3-6 Months 6 Months +

Operationl Core

Table 3 below summarised the performance to date, benchmarked against the London Interbank Bid Rate (LIBID) that best matches the duration of the investments. For example, Call investments can be called back the same day and so the overnight LIBID rate is the bench mark.

Table 3 Performance

Average Benchmark Variance Return Rate Call Operational 0.56% 0.42% 0.14% Fixed Operational 0.63% 0.60% 0.03% Fixed Core (Long Term) 0.66% 0.71% -0.05%

Operational investments are outperforming their respective benchmarks. However Core (Long Term) investments are 0.05% below the benchmark rate of 0.71%. This is as a result of investments from before the last rate rise still working their way through our portfolio. £8 million pounds of this is maturing in October and will be invested in the current higher interest rate environment and it is therefore expected that core investment returns will pick up in the next quarter. Looking Forward The first half of 2018/19 has shown modest growth in the UK economy, but robust enough growth for the Bank of England Monetary Policy Committee to vote on 2nd August to unanimously (9-0) increase the base rate from 0.50% to 0.75%. Concerns have been raised about a build-up of inflationary pressures, particularly with the pound falling in value again against both the US dollar and the Euro. The Consumer Price Index (CPI) measure of inflation rose unexpectedly from 2.4% in June to 2.7% in August due to increases in volatile components, but is expected to fall back to the 2% inflation target

Page 73 Appendix 3 over the next two years given a scenario of minimal increases in Bank Rate. The MPC has indicated Bank Rate would need to be in the region of 1.5% by March 2021 for inflation to stay on track. Financial markets are currently pricing in the next increase in Bank Rate for the second half of 2019.

Conclusion The Council Investments continue to perform well against benchmarks, with all activity within approved limits and Borrowing has been maintained at £12.8 million within the debt indicators.

Page 74 Item No.9

South Lakeland District Council Council Wednesday, 18 December 2018 2019/20 to 2023/24 Draft Budget

Portfolio: Finance Portfolio Holder Report from: Assistant Director Resources (CFO/Section 151 Officer) Report Author: Helen Smith, Financial Services Manager Lee Hurst, Chief Accountant Forward Plan: Budget and Policy Framework Decision included in the Forward Plan as published on 2 October 2018

1.0 Expected Outcome 1.1 This report presents the 2019/20 Five Year Draft Budget. The expected outcome is that Council will be in a position to deliver the priorities set out in the Council Plan within its resources. This will enable the statutory requirement to agree a balanced budget and to set the appropriate Council Tax level for 2019/20. The final proposed revenue budget and capital programme, including any further amendments, will be put forward for approval by Council on 26 February 2019. 1.2 This report also requests approval of proposed pay scales from 1 April 2019 resulting from the national local government pay settlement for 2018/20 and consideration by Human Resources Committee on 11 December 2018. 2.0 Recommendation 2.1 It is recommended that Council:- (1) Notes that the development of the Budget is an iterative process between now and Council on the 26 February 2019. The assumptions, proposals and calculations included within it will be subject to change as more information from internal and external sources is provided and decisions around the final proposals can be made; (2) Considers the proposals contained in the report to achieve a balanced budget in 2019/20; (3) Notes the projected deficit position of circa £590k in 2020/21 rising to circa £2.6m by 2023/24 (this is after the Customer Connect savings have been included) as set out in Appendix 2; (4) Notes that proposals (1) and (2) form the basis of statutory consultation with stakeholders; (5) Approves the amended 2018/19 Capital Programme as presented in Appendix 6, noting that the future years programme is still under development; and (6) Approves the proposed pay scales from 1 April 2019 onwards as set out in Appendix 9.

Page 75 3.0 Background and Proposals 3.1. The Council, at its meeting on 24 July 2018 agreed to the proposed Budget Strategy for the current year’s budget process as part of the Medium Term Financial Plan (MTFP). The Budget Strategy set out some broad principles which are being used in the preparation of the 2019/20 – 2023/24 Budget. 3.2. This report presents a draft position. Work will continue to incorporate further changes into subsequent budget reports, such as the finalised central government grant position which is not yet known. The position set out in this report forms the basis of the consultation, subject to approval. The Overview and Scrutiny Committee will consider the report at its meeting on the 11 January 2019. The final Draft Budget Report will incorporate the consideration of the internal and external consultation and be presented to the 23 January 2019 Cabinet meeting. The Council will at its meeting on the 26 February 2019 be requested to approve the final Budget. The budget timetable is presented for information at Appendix 1. DRAFT GENERAL FUND REVENUE BUDGET SUMMARY POSITION 3.3. The Medium Term Financial Plan provides a summary five year annual position which includes a projection of the overall surplus or deficit on the General Fund Revenue Budget. The assumptions and financial implications are kept constantly under review as circumstances change. A summary of the known changes at this stage are provided in the table below, the more detailed analysis of expenditure and income is set out in Appendix 2. 3.4. Table 1 sets out the summarised estimated annual General Fund Budget requirement across the review period, including the projected deficits. It also shows the savings identified and where the budgets have been reduced. Table 1 Summary Medium Term Financial Plan

2019/20 2020/21 2021/22 2022/23 2023/24*

£000 £000 £000 £000 £000 Service Expenditure 27,863.1 28,013.8 28,356.6 28,798.7 29,276.4 Uncommitted Pressure/Growth 500.0 500.0 500.0 500.0 500.0 Customer Connect 2,031.0 0.0 0.0 0.0 0.0 Service income -13,433.7 -13,695.1 -13,800.5 -14,081.4 -14,260.3 Net service expenditure 16,960.4 14,818.7 15,056.1 15,217.3 15,516.1

Corporate items -15,666.3 -12,879.6 -12,574.6 -12,127.5 -11,930.1 Further Savings from Customer Connect -740.0 -1,550.0 -1,550.0 -1,550.0 -1,550.0 Net draft budget (projected deficit) July 2018 554.1 389.1 931.5 1,539.8 2,036.0 Council Tax second homes agreement income removal 693.6 693.6 693.6 665.0 665.0 Net draft budget (projected deficit) October 2018 1,247.7 1,082.7 1,625.1 2,204.8 2,701.0 Budget Pressures (App 3) 330.5 365.1 376.2 448.9 473.4 Growth Proposals (App 4) 50.0 50.0 50.0 0.0 0.0 General Savings (App 5) -323.3 -329.3 -334.3 -334.3 -334.3 Removal of uncommitted Pressure/Growth -500.0 -500.0 -500.0 -500.0 -500.0 Funding of Growth Proposals through Cumbria Business -50.0 -50.0 -50.0 0.0 0.0 Rates Pool Income Reserve Recalculation of MRP as a result of updated capital -21.5 -28.9 -28.8 107.1 219.2 programme Reversal of negative RSG by Government -613.0 One-off use of General Reserves -120.4 Net draft budget (projected deficit) November 2018 0.0 589.6 1,138.2 1,926.5 2,559.3 *New year of model

Page 76 3.5. The projected annual revenue deficit totals circa £590k in 2020/21 rising to circa £2.6m by 2023/24. This position is after the inclusion of Customer Connect savings of £740k in 2019/20 and £1.550m from 2020/21 onwards. This is the first iteration of the budget and these annual projections are based on information available at the time of preparation along with the broad set of assumptions detailed in 3.12 below. The assumptions, proposals and calculations included above and on the attached appendices will be subject to change as more information from internal and external sources is provided, calculations and options are refined and as decisions around the final proposals are made. 3.6. Work is underway to resolve the projected deficits. Future year estimates will be kept under review as part of the MTFP process to ensure that savings plans are sufficient to set balanced budgets. 3.7. The July Medium Term Financial Plan included £500k of unallocated growth which has now been removed. The Council has a statutory duty to set a balanced budget. Any additional budget pressures or discretionary, fixed term growth items will need to be funded by savings in existing budgets. NATIONAL PAY AGREEMENT 2018/20: NEW PAY GRADES 3.8 The authority is part of the National Joint Council for Local Government Services (NJC) which nationally negotiates pay and grading. In April 2018, national employers agreed a pay settlement for 2018/19 and 2019/20 for the majority of staff, excluding the Chief Executive and Directors. The settlement for 2018/19 was straightforward with a pay award of 2% for most spinal column points (SCP) and higher percentage increases for staff on lower pay grades. The pay settlement for 2019/20 is complex due to a new national pay spine. As well as the increase in the bottom rate for the new spine increasing to £9.00 per hour, the changes included condensing the current lowest 12 SCPs to 6 new pay points and the insertion of 5 new pay points. Councils are expected to implement the new pay spine to ensure every employee has an increase in pay of at least 2% from 1 April 2019. 3.9 Human Resources Committee on 11 December 2018 considered proposals to amend the Council’s pay grades to reflect the new national SCP. These proposed grades are shown at Appendix 9 and the full report is included as a background document to this report. Part 3 of the Council’s Constitution limits the delegation to Human Resources Committee to changes where the total costs does not exceed £250,000. As the costs of the proposal exceed £250,000 the proposal cannot be approved under delegation but must be approved by Council. 3.10 The Council currently complies with requirements to pay the National Living Wage and has an aspiration to pay the Real or Foundation Living Wage. The new pay agreement will mean the Council will pay the equivalent of the Foundation Living Wage from 1 April 2019 to all staff except apprentices. Apprentice salaries will remain in line with the national minimum wage. The Living Wage Foundation announced their new pay rates on 5 November 2018 of £9.00 per hour outside London for all employees over 18 years of age. 3.11 The Council will commence implementation of the new Customer Connect staffing structure from April 2019. This new structure is in the process of being developed and will have regard to the proposed pay scales as the financial implications of the new structure are finalised. BUDGET STRATEGY ASSUMPTIONS 3.12 The draft budget proposals for 2019/20 and onwards include: a) Inflation in the base budget in accordance with the Budget Strategy (only where contractually committed or unavoidable).

Page 77 b) Salary budgets have been prepared based on the current staffing structure including known incremental advances. From April 2019 onwards the detailed budgets include 2% for inflationary pay awards. As set out above, the local government pay settlement for April 2018 covered 2 years and included a restructuring of the national pay scales. Officers have modelled various potential options to implement the pay settlement and a budget pressure of £148k has been included in 2019/20 rising to £346k if all staff reach the top of scale. c) The only major announcement in the Autumn Budget on 29 October 2018 for the Council concerned the level of the National Living Wage (NLW) for 2019/20. The local government pay settlement for 2019/20 has a minimum hourly rate (excluding apprentices) of £9.00 per hour which is higher than the new NLW levels and will be equal to the Real/Foundation Living Wage which was announced in November 2018. d) Capital charges will be reviewed within the final budget proposals presented to February Council. These have no impact on the MTFP projections as they are not charged against Council Tax. GOVERNMENT FUNDING AND OTHER REVENUE BUDGET UNCERTAINTIES 3.13. The figures presented include certain assumptions where work is on-going or where information is not yet available. A key factor going forward will continue to be central government funding. The potential change to 75% business rates retention offers both opportunities and risks. This in addition to the proposed Fairer Funding Review may lead to both increased volatility and reductions in retained local taxation over the medium term. At this stage these are difficult to quantify. The key items are: a) The MTFP assumes support from general government grant, such as Revenue Support Grant, is in line with the multi-year settlement announced in December 2015. The Government’s 2019/20 Finance Settlement Technical Consultation indicated the Government was minded not to implement the £613k of negative Revenue Support Grant for 2019/20. The MTFP projections have been adjusted to reflect this expectation: the Provisional Local Government Finance Settlement will be on 6 December 2018 and any significant changes to the assumed funding will be reported, if necessary, as an update to this report. b) From 2020 the whole system of Government funding will change: the financial model assumes the overall funding from Government through general grants or retained business rates will continue to decline by the same rate as has been seen during the current multi-year settlement excluding one-off adjustments such as the negative Revenue Support Grant. This reflects the current indications that funding of local government overall will stabilise at current levels but that funding will be targeted at social care. c) All seven Cumbrian authorities have jointly submitted a bid to form a Cumbrian Business Rate Pool Pilot for 2019/20. This would replace all Revenue Support Grant and Rural Services Delivery Grant which would have been payable with the retention of the Government share of business rates. Potentially the seven authorities could gain £6m of additional funding. The results of the bid will be announced alongside the Provisional Local Government Finance Settlement in December 2018. If the bid were successful the Council could retain circa £200k of additional income but the actual amount will not be known until the end of the 2019/20 financial year. Any additional income will be budgeted one year in arrears as part of the 2020/21 budget process.

Page 78 d) Should the bid for a new Cumbria Business Rate Pool Pilot not be approved by Central Government, it is proposed that the existing business rate pool will continue for 2019/20. Due to the level of uncertainty around these arrangements, the funding is built into budgets 1 year in arrears so this can be used to support financial years 2020/21 onwards. Any unallocated balance remains within the NNDR pool reserve which is earmarked for economic development (Appendix 8). e) Interest payable and receivable will continue to be reviewed prior to the final budget being set in February 2019 to ensure this reflects the most up to date interest rate projections and capital programme funding assumptions. 3.14 The MTFP assumes the New Homes Bonus will be split 60:40 between support for the capital programme, which has been used to support housing, and Locally Important Projects (LIPs), including community planning and the £1,000 budget per member for community projects. The Government consulted in autumn 2015 about reducing the level of New Homes Bonus and this was partially implemented from April 2017. Further changes are expected to be confirmed as part of the 2019/20 local government finance settlement and it is expected that New Homes Bonus will be discontinued from April 2020. SLDC does not use the NHB to balance its base budgets. Funding of approved schemes in the capital programme has been reviewed to reflect expected funding but future projects will need to be reviewed as clarity is provided 3.15 The Council earns significant sums through recycling credits (£1.3m for 2017/18). The payments are made in accordance with legislation which clearly sets out the statutory basis and mechanism for calculating the recycling payments. Any change to the current system would need agreement from the County and all districts and would need to be considered alongside other countywide issues. 3.16 Overall, although there are still uncertainties, the Council is in a strong position to set a balanced budget for 2019/20 and to address the additional level of deficit from 2020/21. From 2020 however it is worth reiterating that the challenges arising from the change in Government support through the Fair Funding Review and changes to business rate retention could have a significant impact. RECURRING REVENUE BUDGET PRESSURES 3.17 There are a number of recurring budget pressures and adjustments that have been identified through the budget process. As identified in Table 1, these total £330k for 2019/20 increasing to £473k by 2023/24. The details of these are contained within Appendix 3. The largest single pressure relates to the implementation of the 2019/20 pay settlement, as set out in para 3.12.b above. The other large budget pressures relate to planning application fees and supporting people grant at Town View Fields Hostel which have both been reported as part of the Corporate Financial Monitoring report for Quarter 2 2018/19. 2019/20 GROWTH PROPOSALS 3.18 The detail of revenue growth items is included at Appendix 4. These have intentionally been kept to a minimum. The only growth bid relates to the business support programme for economic development activities of £50k per year for three years. It is proposed that this is funded through the use of the NDR Pool reserve, which is set aside specifically to support economic development. SAVINGS PROPOSALS 3.19 A number of savings proposals have been brought forward as part of the budget exercise excluding any savings relating to Customer Connect which are being accounted for separately. These total £323k in 2019/20 rising to £334k by 2023/24.

Page 79 These are detailed in Appendix 5. The amount and nature of the savings identified are considered reasonable and deliverable from 2019/20. 3.20 The main savings relate to decisions earlier this year regarding funding of community toilets and Kendal Museum. Officers have also reviewed corporate budgets including insurance, business rates, energy and water charges and identified savings. Savings and efficiencies 3.21 Significant savings targets of £361k in 2018/19, £740k in 2019/20 and rising to £1.550m have been agreed from the Customer Connect Programme. Further work will be carried out to identify proposals to meet the additional amounts required. This process needs to be flexible according to the challenges and opportunities that arise to meet the projected deficits, which are very likely in themselves to change, particularly given the large uncertainty over business rates retention. 3.22 Employee consultation on the new leadership and organisational structure of the Customer Connect operating model concluded in November. The structure will be confirmed in early December after consideration and finalisation of the response to the consultation. Detailed design will continue to refine the estimated number of specialist/case workers in phase 1. The actual employment costs will not be confirmed until recruitment is completed in March 2019. Voluntary redundancy offers were made the week commencing 3rd December. Officers will continue to work on estimates as the 2019/20 budget is prepared and greater certainty will be developed as the Council progresses through the next stages, delivering the programme in accordance with the approved business plan. Updates will be provided in subsequent budget reports. 3.23 The Budget for 2018/19 included a savings target of £361k. The Quarter 2 Corporate Financial Monitoring elsewhere on this agenda reported progress in meeting this target. The budget monitoring for period 7 (to the end of October 2018) includes significant changes to the projected overspends on homelessness and planning costs and a new projected underspend on the Minimum Revenue Provision compared to Quarter 2. The current projection is a contribution of £112k will be made towards this savings target of £361k. Officers will continue to work to identify further budget savings in 2018/19 to deliver the remaining £249k to meet the full savings target. FEES AND CHARGES 3.24 The MTFP assumes that income to be generated from fees and charges will total £10.0m for 2019/20. This figure has been adjusted to reflect the budget pressures from Appendix 3, where these relate to fees and charges. 3.25 The 2019/20 car parking income budgets have been inflated by 2% in line with the MTFP. Monitoring for 2018/19 to the end of Quarter 2 suggests that the current level of demand is generating £160k more against the annual base. The estimate for 2019/20 has therefore been increased by this amount (Appendix 5). At this stage it is not proposed to adjust the charges. Hourly rates have been frozen on most car parks since April 2011. This is subject to annual review. 3.26 Lake Administration Committee considered fees and charges on 5 October 2018 and Licensing Committee considered its fees 6 November 2018. The full fees and charges listing will be presented as part of the January Cabinet report. COUNCIL TAX 3.27 Central government’s policy around Council Tax changed during the 2016/17 finance settlement. It moved from incentivising Council Tax freezes to assuming increases in Council Tax as part of the overall financial resources Council’s would utilise. The MTFP assumes Council tax will continue to rise by £5 per annum to £195.63 at April 2019 which equates to 2.62% per band D property for 2019/20 (the CPI inflation figure for September 2018 is 2.4%). The power to charge the higher of £5 or up to

Page 80 3% was included as part of the 2018/19 settlement and it is anticipated that this power will continue for 2019/20. A 3% increase would be equivalent to an increase of £5.72. Full details of the settlement, including limits around Council Tax are likely to be provided with the Local Government Finance Settlement figures on 6 December 2018. 3.28 Each 1% increase in Council Tax generates an additional £86k of income to the Council. If the Council Tax were to be frozen in 2019/20 at existing levels and based on the estimated taxbase for 2019/2 of 45,515 band D equivalent properties an additional £227k of savings would be required to balance the General Fund. 3.29 The MTFP assumes an increase in the Council tax base of 250 band D properties for 2019/20. At £195.63 per band D this is equivalent to an additional £49k of Council tax each year for this Council. The actual tax base for 2019/20 will be calculated in December 2018 and will be included in future budget reports. This will also include any distribution of anticipated surpluses or deficits from 2018/19.

4 CAPITAL PROGRAMME 4.1 Proposals for new areas of capital expenditure were considered by Portfolio Holders on the 5 October 2018 and were prioritised with reference to the funding available. The resulting proposed capital programme is presented at Appendix 6. A summary of the proposed capital expenditure up to 2023/24 is shown below: Table 2: Summary Draft Capital Programme Expenditure 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Total Revised 2018/19 to 2023/24 £000 £000 £000 £000 £000 £000 £000 7,950.0 10,163.2 16,776.7 3,406.7 1,928.0 2,828.0 43,052.6

4.2 There were a number of capital bids prioritised. These include: a) £6.0m in relation to loans to housing associations utilising the Right to Buy receipts accumulated to date; b) £9.2m in relation to Ulverston Leisure Centre, in line with the business case supporting the Cabinet decision to proceed with the next stage of work including design to RIBA stage 3; c) £461k in relation to developing additional homelessness accommodation for families d) £100k contribution to redevelopment at Abbot Hall: ; e) £1.9m in relation to Grange Lido based on light-touch proposals. Following receipt of a petition on the Lido, there will be a debate on the petition at Council in December. These are the schemes where outline approval has already been given, where expenditure relates to health and safety issues or where works are unavoidable. 4.3 There are a number of significant potential additional service areas and schemes to be added to the capital programme where bids have been received but that have yet to be prioritised and allocated a capital and or revenue budget. These schemes would lead to additional capital budget costs on top of those presented in Appendix 6. These include: a) Schemes arising from the Car Parking Study in Kendal and Oxenholme as well as engineering appraisals undertaken on surfacing options at Braithwaite Fold, additional capacity options at Rydal Road, Ambleside and Rayrigg Road Car Park, Bowness and the siting of electric charging points..

Page 81 b) South Lakeland House and Kendal Town Hall accommodation review to provide a fit for purpose and fit for future office accommodation and Town Hall refurbishment. The capital cost of any improvements is likely to be significant and a Business case for the work will be provided to enable an affordable solution to be delivered. c) The review of the Kendal depot location is also not included as yet. A report setting out the likely financial implications and benefits and timescales will be provided in due course. 4.4 Once receipts earmarked for specific purposes are removed the programme has a modest element of unallocated resources, however, as noted at 4.3 above, there are a number of potentially significant unavoidable schemes that are likely to make a call on these. The capital programme to be considered by Cabinet in January 2019 and subsequent reports is expected to change to include some or all of these potential schemes. There are other assets, as set out in the Property and Land Management Strategy, that will require further consideration as part of longer term capital planning. 4.5 Although the capital programme contains estimates of expenditure for future years, these rely on the income budgets being met (e.g. Capital Receipts, Right to Buy and VAT shelter). All elements of the programme, and particularly those areas with recurring budgets, will be reviewed annually with reference to the actual resources available. Where no other funding is available, and where appropriate, borrowing will be needed to fund the proposed additional schemes. The appropriate level of borrowing, based on considerations of affordability and risk, will be set out in the Council’s Capital Strategy and Treasury Management strategy to Overview and Scrutiny Committee and Cabinet in January 2019 and Council in February 2019. 4.6 It was reported in the Quarter 2, 2018/19 Monitoring Report that certain elements of the capital programme would be underspent in year and would require re-profiling into subsequent years. This includes the ERDF funded scheme for flood alleviation works at Mintsfeet, Kendal and the Cross-a-Moor junction improvement scheme. Adjustments have also been made to increase the capital budget for Millerground and the Burton in Kendal heritage scheme to reflect external contributions. These are reflected in Appendix 6 within the updated 2018/19 programme along with other schemes where the need for re-profiling has been highlighted, as part of the budget process. 4.7 Due to unprecedented demand for Disabled Facilities Grant (DFG) funding, 86 adaptations were completed in the first two quarters of 2018/19 compared to 81 in the whole of 2017/18, it is expected that there will be insufficient funds available for the whole financial year. As DFGs are a statutory duty the Council needs to provide the necessary funding to meet demand. There is £191k unallocated in the Affordable Homes budget that won’t be spent in 2018/19. Therefore it is proposed that this funding is transferred to the DFG budget. This will provide sufficient funds to meet demand for DFGs in 2018/19. 4.8 Community Infrastructure Levy (CIL) is not currently reflected in the capital programme or its funding. The Council has started to receive modest levels of income from CIL. The governance arrangements over when and how to allocate this and the Infrastructure Delivery Plan were approved by Cabinet on 13 September 2017. 4.9 Appendix 2 shows the current estimates in relation to NHB income. 40% of this currently supports the Members small grants scheme and Locally Important Projects whilst 60% of this is earmarked to support other capital schemes. It is expected that no further income will be received beyond April 2020: funding has been reviewed for existing capital programme schemes but the capital budgets for LIPS have been removed from 2020/21.

Page 82 4.10 A summary of the draft capital programme funding is in the table below. This shows the proposed use of capital resources in support of the capital programme (see Appendix 6). Table 3: Capital Funding 2018/19 to 2023/24

Potential Balance April Estimated Use in capital Balance March 2018 Income programme 2024 £000 £000 £000 £000 General Usable Capital Receipts 1,744 417 -1,953 209 VAT Shelter receipt 831 1,200 -2,031 0 New homes bonus (capital)**** 1,271 1,138 -2,177 232

Earmarked or allocated Revenue (LIPS) 185 995 -995 185 IT replacement reserve 74 480 -480 74 Major Repairs Reserve 307 800 -868 239 General Revenue contributions 587 1,574 -1,940 221 Cap grants and contributions (inc S106) 593 7,924 -8,467 50 Disabled Facilities Grants 360 3,620 -3,980 0 Community Housing Fund* 2,309 0 -490 1,819 Right to Buy receipt** 3,788 4,200 -6,495 1,493 Borrowing Funding from borrowing***. 0 13,177 -13,177 0 Total 12,049 35,525 -43,053 4,522

*Ring fenced for Community Housing Schemes, £2.36m less £235k funding revenue budgets **Ring fenced to support replacement of affordable housing. ***'Prudential Borrowing'; this may not result in taking on new loans but requires revenue charge to cover the cost over the assets' life ****Subject to annual confirmation and settlement 4.11 Table 1 includes some amendments to the Minimum Revenue Provision (MRP) in the financial model. These changes reflect changes in the profiling of the rolling vehicle and plant programme and the additional costs if Ulverston Leisure Centre is to be funded from borrowing. 5 RESERVES AND WORKING BALANCE WORKING BALANCE 5.1 The Council’s working balance at 1 April 2018 was £1.5m. Working balances are used to help cushion the organisation against uneven cash-flows and avoid unnecessary borrowing. The balance on the working balance should be maintained at £1.5m. OTHER RESERVES 5.2 The Council holds a General Reserve of monies set aside to form a buffer against future financial risks in the medium term and to enable the Council to progress major organisational and transformational changes by providing resources to fund the initial costs of these developments. 5.3 Authorities in England and Wales are required to have regard to the level of reserves needed for meeting estimated future expenditure when calculating the budget requirement. An annual review is carried out to assess risks including:  pay and pension costs

Page 83  inflationary pressures  interest rates  Government grant  income from fees and charges The Council considers the impact of holding monies unnecessarily in reserves giving the ongoing impact on local residents and taxpayers. The External Auditor considers the level of reserves each year to ensure the amounts held are sufficient but not excessive. There is no theoretical “correct” level of reserves because the issues that affect an authority’s need for reserves will vary over time. 5.4 Appendix 7 shows the latest risk-based calculation of a minimum recommended working balance and General Reserve for 2019/20. This suggests the overall projected balance is slightly higher than necessary. It is proposed this surplus should be used to offset the projected 2019/20 deficit. The fundamental principle governing the use of reserves is that they should not be used to fund recurring expenditure. 5.5 The risk assessment of reserves includes a portion of the General Reserve earmarked to meet the up-front costs of delivery of approved savings. These costs could include redundancy, building adaptations or new IT costs. 5.6 The Statutory Duties Reserve consists of an original sum of £150k set aside for legal and other statutory requirements with delegation to Senior Management Team to approve the use of the monies, topped back up at year end if necessary. The use of these amounts is reported as part of the Corporate Financial Monitoring process. 5.7 The Council holds a number of other reserves for various reasons. Appendix 8 summarises the individual reserves, their purpose and their expected balances and movements 2018/19 to 2023/24. The projected reserves reflect contributions in but do not anticipate the element of spend to cover contingencies which are not predictable when they will be spent. 5.8 Table 4 summarises the projected balances on reserves and the working balance at the end of each financial year. Table 4: Reserves summary

31/03/2018 31/03/2019 31/03/2020 31/03/2021 31/03/2022 31/03/2023 £000 £000 £000 £000 £000 £000 General Reserves (8,600) (6,705) (4,914) (5,114) (5,314) (5,514) Capital Reserves (2,434) (1,343) (744) (661) (583) (562) Earmarked Reserves (4,412) (3,508) (3,508) (3,508) (3,508) (3,508) Total Reserves (15,447) (11,555) (9,165) (9,282) (9,404) (9,583) Working Balance (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) Total Reserves and (16,947) (13,055) (10,665) (10,782) (10,904) (11,083) Working Balance

6 NEXT STEPS 6.1 This draft Budget Report will be updated as both internal and external issues become clearer. The finance settlement, including the impact of any 4 year settlement agreement and adjustments to business rates multiplier and tariff, will be reflected in the final budget proposals to be presented to Cabinet in February and Council 26 February 2019. 6.2 The Government has already announced changes to the business rates funding system for 2020. As well as the increase in local retention of business rates to 75% through the reduction of the 50% central share of business rates retained by the Government to 25% and replacement of certain grants the Government is reviewing the needs formula which will control how much business rates will be retained

Page 84 locally. A national working group including the Department of Communities and Local Government (DCLG), HM Treasury, the Local Government Association (LGA), professional organisation and representatives of interested groups such as the District Council’s Network (DCN) meets to discuss the proposals which are badged as the Fair Funding Review. These developments will be monitored and fed into the MTFP as the details are clarified. Consultation 6.3 This report provides a first draft of the 2019/20 Five Year Budget. This will be subject to the statutory four week period following the 18 December 2018 Council meeting. 6.4 The Lake Administration, Planning and Licensing Committees will receive and consider the elements of the draft Budget Report which are relevant to them. The Overview and Scrutiny Committee will be asked to consider the 18 December Council first draft Budget Report at its January 2019 meeting. 7.0 Alternative Options 7.1 This report presents alternative options in relation to potential budget pressures and savings, new capital programme bids, one off revenue growth bids and fees and charges. The proposals together aim to meet the Council’s statutory duty to set a balanced Budget for 2019/20. 8.0 Links to Council Priorities 8.1 This report sets out the first draft Budget to enable the consideration of how the Council’s priorities will be delivered. Setting a sound framework for budget preparation assists in the delivery of all corporate outcomes. This strategy has been developed within the context of the MTFP. 9.0 Implications Financial, Resources and Procurement 9.1 The draft Budget aims to safeguard the Council’s financial position and ensure a balanced budget for 2019/20 and an improved position in the years that follow. Human Resources 9.2 This report has no direct impact on the staffing of the Council; individual savings and growth proposals may have direct staffing implications. Legal 9.3 This report has no direct legal implications at this stage but individual proposals resulting from this report may have direct legal implications. Health, Social, Economic and Environmental 9.4 Have you completed a Health, Social, Economic and Environmental Impact Assessment? No 9.5 If you have not completed an Impact Assessment, please explain your reasons: This report contains proposals to set a balanced budget for 2019/20 which will be subject to further consultation. Specific issues that require HSEEIAs will be addressed within the final budget proposals presented to Council 26 February 2019. Equality and Diversity 9.6 Have you completed an Equality Impact Analysis? No 9.7 If you have not completed an Impact Assessment, please explain your reasons: This report contains proposals to set a balanced budget for 2019/20 which will be subject

Page 85 to further consultation. Specific issues that require EIAs will be addressed within the final budget proposals presented to Council 26 February 2019. 10. Risk Risk Consequence Controls required Failure to create a balanced Includes: inability to deliver Identification of sound and sustainable budget by corporate priorities, budget guidelines in an February 2018 inappropriate spending, agreed strategy reduces the and inappropriate risk of an unaffordable reductions in services. budget and/or precipitate budget reductions. Monitoring of progress against the budget timetable reduces the need for last-minute budget adjustments. Insufficient staff capacity to Inability to deliver services Review resources required deliver on growth items within to expected levels or to ensure growth bids are capital and revenue budgets additional costs of realistic and deliverable, temporary staff. Potential including other unavoidable underspends and potential staffing pressures slippage in expenditure to subsequent years. Revenue budget and Capital Resources not directed to Both the revenue budget Programme may not be achieving corporate and the Capital Programme integrated and aligned with outcomes, leading to are now embedded in the Council Plan. inappropriate spending. corporate planning cycle. All revenue budgets and capital programme schemes are linked to Council plan priorities Reduction in funding from In-year budgetary Close monitoring of Government is greater than pressure and potential Government estimated or announced too overspending, jeopardising announcements, potential late for adjustments to be service delivery. short-term use of revenue made to budgets contingency provision and General Reserve followed by review for following year. Government proposals for Income streams will be Monitor Government piloting full localisation of insufficient to fund service proposals for changes in business rates increase delivery. NNDR legislation. uncertainty of major income Maintenance of General stream. Reserve as a buffer against unexpected changes in funding. Monitor changes in rateable values & proposals for new development / closures/ other changes.

Page 86 Contact Officers Shelagh McGregor, Chief Finance Officer, [email protected], 01539 793112 Helen Smith, Financial Services Manager, [email protected], 01539 793147 Lee Hurst, Chief Accountant, [email protected], 01539 793599

Appendices Attached to this Report Appendix No. Name of Appendix 1 Budget process, strategy and timetable 2 MTFP Financial Model 3 Revenue Budget Pressures 4 One-off Revenue Growth Proposals 5 Revenue Savings Proposals 6 Draft Capital Programme 2018/19 to 2023/24 7 Risk Assessment of Level of Reserves 8 Reserves Summary 9 Proposed Pay Grades from 1 April 2019

Background Documents Available Name of Background document Where it is available Medium Term Financial Plan https://tinyurl.com/ya988w5b approved Council 24 July 2018

The 2019-20 Local Government https://tinyurl.com/y772s2zr Finance Settlement Technical

Consultation 2019/20 Budget Update Report to https://tinyurl.com/yaedogmo Cabinet 31 October 2018

National Pay Agreement 2018-20: https://tinyurl.com/yaboz97c New Pay Grades report to Human

Resources Committee: 11 December 2018

Tracking Information Signed off by Date sent Legal Services 29/11/18 Section 151 Officer 29/11/18 Monitoring Officer 29/11/18 SMT 29/11/18

Circulated to Date sent Assistant Director 29/11/18 Human Resources Manager N/A Communications Team N/A Leader 29/11/18 Committee Chairman N/A

Page 87 Circulated to Date sent Portfolio Holder 29/11/18 Ward Councillor(s) N/A Committee HR Committee 11/12/18 Executive (Cabinet) 28/11/18 Council 18/12/18

Page 88 Appendix 1

Budget process and strategy 2019/20 to 2023/24

By incorporating the Budget Strategy within the Medium Term Financial Plan the Council ensures the two parts of the budget process are seamless and consistent. The proposed budget strategy is shown below: Proposed 2019/20 Budget Strategy

a. This proposed Budget Strategy explains the approach to setting a balanced budget for 2019/20 in accordance with the principles set out in the Medium Term Financial Plan. Through the MTFP updates, corporate issues have been addressed that will alter the future years position from the budget that was approved on 27 February 2018. b. To address future deficits, savings options have been approved for 2018/19 and for future years. Savings will also be sought to provide funding for budget pressures to ensure the Council Plan priorities are delivered. Members will be asked to consider the range of options for savings put forward and which are to be consulted on. These may include:  increasing income  reducing costs by improving service efficiency including the use of assets  reduction of costs through cutting overheads  alternative service delivery mechanisms  ceasing to deliver services c. The detailed service and capital budgets will be reviewed to ensure that these remain reasonable, with reference to the 2017/18 out-turn, monitoring during 2018/19 and the Service Managers’ knowledge of any changes due to take effect over the budgeting time frame. General Fund Services

d. The overall General Fund Service budget strategy is that:  budgets will be updated by Finance for known, externally-driven changes to salaries including inflation; they will also update capital charges and recharges;  all establishment changes must be treated as growth bids or savings and forwarded to Human Resources Committee at the appropriate time;

1

Page 89 Appendix 1

 virements and minor (less than £10k gross) cost neutral changes can be made to base budgets without bid documents;  changes identified as part of the Customer Connect programme and savings identified as part of the Corporate Savings Exercise will be worked up into budget amendments as part of the budget process;  all other changes, including those that are statutory or demand led will need to be brought forward for consideration as part of a budget amendment process, signed-off by the AD and Portfolio Holder. e. More detail of the approach is given below: 1 Salary budgets are increased by known incremental advances. The 2018 pay award covered a two year period beginning April 2018 and included a 2% increase in April 2019 along with a new pay scale. From April 2020 2% will be included for inflationary pay awards. A 4% reduction will be allowed for vacancies and turnover on all salary cost centres; posts which are currently vacant will be budgeted at the scale mid-point; rates and thresholds for PAYE, NI and pension deductions will be updated. 2 No allowance will be made for inflation in expenditure budgets unless contractually committed or unavoidable (e.g. energy, fuel and utility bills); the current inflation assumptions built in to the base will be reviewed and updated where necessary. Where a contract is due for re-tendering a review of the appropriate inflation rate and budget should be undertaken and a budget pressure bid prepared where necessary. 3 Future year’s income base budgets already have inflationary growth built into them. Where this cannot be met or managed through reductions in expenditure, this will be identified as a budget pressure. 4 Fees and Charges need to be consistent with income budgets. This process must involve: a. review of 2017/18 out-turn and any relevant multi-year trends; b. review of current 2018/19 budget position; c. review of future year income budget; and d. assessment of the options for any changes to fees (structures as well as tariff) and the impact of this on the income budget. e. For any service area where income budgets are £100k or more per annum, this process will be documented. All services will review the potential for new fees. Fees and Charges must be consistent with the Council’s Corporate Charging Policy as approved in July 2017.

2

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5 Existing base budgets will be challenged to identify savings that can be released to offset projected budget deficits. 6 Budget Pressures: the delivery of the Council Plan requires constant review of budgets to ensure funding is available to deliver the Council Plan priorities. Any increases to expenditure or decreases to income base budgets (excluding 1 and 2 above) will be either matched corporately by a compensating saving or will need to be submitted as budget pressures. The de-minimis is set at £10k. 7 If the budget deficit is balanced then resources may be made available for growth bids: where growth is to be funded from earmarked resources only then bids will be accepted as part of the budget process. 8 Reserves will be used in accordance with their agreed policies with the fundamental principle that they are not used to fund recurring expenditure. 9 Effective consultation will be carried out in accordance with the Corporate Consultation strategy. 10 Schemes which attract external funding need to be considered with reference to the Council Plan and capacity to deliver. 11 The Budget assumes a £5 Council tax increase annually from April 2018 onwards. The decision on the actual Council tax each year will be taken by Council in February and will be influenced by current Government policy and the influence of this on local government funding. 12 The working balance contributions be reviewed against the current long-term target minimum General Fund working balance of £1,500,000 by 31 March 2019; any surplus over this target should be transferred to the General Reserve. Capital

f. The approach to setting the capital programme will be as follows: 1 A longer-term view will be taken of spending needs to balance priorities and resources more evenly over the life of the capital programme. The Council’s property advisors will be consulted as to the on-going maintenance programme with the aim being to develop a 10 year programme for recurring capital costs. 2 Bids for new initiatives which recover the investment in a 5 year period will be prioritised. Capital Bid documents will be required prior to a scheme being accepted as part of the Capital Programme. These are to be signed-off by the relevant Portfolio Holder and will be prioritised by Members as part of developing the 2019/20 to 2023/24 Capital Programme. Bids will be considered alongside future expected spend on major projects, as indicated in the capital programme. 3

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3 Schemes which attract external funding should be considered in the light of capacity to deliver these and need to be prioritised with reference to the Council Plan. 4 Existing schemes within the programme will also be reviewed with reference to their progress and any external funding restrictions. 5 Capital receipts will only be committed once they have been received. Although there are known sources of capital receipts (e.g. South Lakes Housing VAT Shelter/Right to Buy receipts), future aspirations will take into account the resources required to support unavoidable recurring costs. Right to Buy receipts will be earmarked for social housing to replace the units sold that generated the receipt. Budget Process

g. The approach to the review of the current-year budget, based on budget monitoring, will continue. The Council’s Efficiency and Value for Money Strategy will be applied. The 5 year position will be set out as part of the process. h. Regular budget reports will be provided to inform Members on the emerging issues. This will integrate information from review of base budgets, higher level factors (such as the grant settlement) represented in the MTFP and the corporate savings process. i. Following approval of these proposals, Assistant Directors, managers and finance staff will work together on the preparation of budgets based on the strategy set out (ensuring consultation with the relevant Portfolio Holders). Work will continue to be undertaken on refining the options for reducing the deficits currently projected and inclusion in the future Budget reports. j. The Draft Budget and Council Plan will be consulted on in accordance with the Consultation Plan. The Draft Budget will also be subject to the statutory four week period post the 18 December 2018 Council meeting.

4

Page 92 Appendix 1

First draft timetable

The purposed of this appendix is to set out the timing of key events in the 2019/20 budget setting process High level 2019/20 Budget and Council Plan timetable

Task Who Due date Update the Medium Term SMT and Cabinet Members/ O&S 13 July (28/6 GK) Financial Plan and Budget FS Manager Cabinet 18 July (2/7 GK) Strategy Council 24 July (5/7 GK) Preparation of detailed base Budget Holders and August – 28 November budgets Finance Cabinet (5/11 GK) Service Development Proposals & Review of Council Plan Bid submission deadline of 30 August 2018 Complete Capital Bid Pro Finance, Budget Holders Forma and Assistant Directors in Summary of the Budget Revenue Growth Bid Pro consultation with Portfolio process to date to be Forma Holders and appropriate included in the 31 Oct Revenue Savings/Increased Members Cabinet Reports (8/10 Income GK)

Vehicle and Plant budget Jim Maguire, Chief As above proposals Accountant SMT Bid consideration Special SMT 6 Sept (4/9 GK) 9am - 1pm Informal Cabinet/SMT Assistant Directors, Cabinet 14 Sept (12/9 GK) Meeting to score the Members and Finance 10-2pm Revenue and Capital bids – Budget Prioritisation Meeting Fees and Charges Lake Admin. 5 October (20/9 GK) Updated MTFP SMT/Cabinet Members Fees and Charges options Assistant Directors and Cabinet 31 October Chief Accountant in (8/10 GK) consultation with Portfolio Holders Quarter 2 Monitoring Chief O&S 26 October (GK Accountant/FSM/Finance 11/10), PH and Cabinet Members Cabinet 28/11, and Council 18/12

5

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Task Who Due date Draft Budget Report including: 1) Update MTFP CFO and Assistant Special SMT 8/11 for 2) Draft 5 year detailed Base Directors Budget Report (GK Revenue and Capital 6/11) 9 to 12 noon Budgets Budget options aligned to 3) Draft 5 year Budget corporate priorities and draft Options for Service Council Plan Growth and Savings (including increases in Cabinet Members Cabinet 28 November income) (5/11 GK) 4) Draft Fees and Charges Options 5) Repairs and Maintenance Budget 1st draft Council Plan Fees and Charges Licensing 06 Nov (22/10 GK) 1st Draft Budget (as above) Cabinet (if needed) 12 December (19/11 GK) All councilor Budget Briefing 3.30pm 18 December Council (with Draft Council (19/11 GK) Plan) 4 weeks statutory From 19 December consultation period commences Draft Council Plan (including O&S 11 January (24/12 GK) consultation with stakeholders) 1st Draft Budget O&S 11 January (24/12 GK) Draft Treasury Management Strategy Relevant Service Budget Planning Committee 03 January (14/12 GK) Report extracts including Licensing Committee 15 January (28/12 GK) Fees and Charges Lake Admin Committee 25 January (10/01 GK) 2nd Draft Budget including Cabinet if needed for the 23 January (31/12 GK) consideration of O&S and Budget other consultees comments on the 18/12 Draft Budget proposals 2nd Draft Council plan (for approval including consultation feedback)

6

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Task Who Due date Quarter 3 Monitoring Chief O&S 1 Feb, Accountant/FSM/Finance Cabinet 6 Feb and PH and Cabinet Members Council 26 Feb (GK 14/01) Formulation of Final Budget Cabinet 6 February (14/01 GK) proposal Final Council Plan (if not approved in Jan) Final Treasury Management Strategy Approval of Budget, Council Council 26 February (28/01 GK) Tax and Treasury Management Strategy Adoption of Council Plan

7

Page 95 Appendix 2 The purpose of this appendix is to set out further detail of the MTFP financial model.

2019/20 2020/21 2021/22 2022/23 2023/24 £000 £000 £000 £000 £000

Expenditure Employee Costs 14,560.3 14,872.2 15,242.7 15,603.4 15,921.9 Running Costs 9,689.2 9,745.5 9,788.0 9,918.6 10,102.5 Capital Charges 3,788.8 3,592.9 3,528.8 3,502.3 3,502.3 Customer Connect 2,031.0 0.0 0.0 0.0 0.0 Total Service Expenditure 30,069.3 28,210.6 28,559.5 29,024.3 29,526.6 Income Car Parking Income (4,532.2) (4,618.3) (4,706.2) (4,795.8) (4,887.2) Contributions from other Local Authorities and Public (38.9) (39.3) (39.6) (68.5) (68.5) Bodies General Income (4,260.2) (4,326.6) (4,390.1) (4,373.2) (4,356.4) Government Grants (483.9) (560.7) (560.7) (590.7) (622.3) New Homes Bonus (658.1) (28.6) (28.6) 0.0 0.0 Lake Income (1,459.5) (1,492.6) (1,518.6) (1,544.2) (1,570.2) Recycling Credits (1,425.3) (1,468.1) (1,512.1) (1,557.5) (1,604.3) Total Service Income (12,858.1) (12,534.2) (12,755.9) (12,929.9) (13,108.8)

Net Service Budget 17,211.2 15,676.4 15,803.6 16,094.4 16,417.8

Corporate items Interest Receivable (199.0) (214.7) (215.1) (223.7) (232.6) Interest Payable 747.8 765.6 780.6 801.3 822.5

Other Govt Grants (347.9) 0.0 0.0 0.0 0.0 Income from Council Tax (net of Parish Precept) (8,904.3) (9,182.0) (9,462.3) (9,745.0) (10,030.2) Parish Grant 92.0 92.0 92.0 92.0 92.0 Retained Business Rates (3,536.7) (2,756.8) (2,241.2) (1,725.6) (1,328.6)

Direct Revenue Financing 618.5 567.3 451.0 586.5 586.5 Minimum Revenue Provision 751.7 982.7 1,021.3 1,226.0 1,411.3

Reversal of Capital Charges (3,788.8) (3,592.9) (3,528.8) (3,502.3) (3,502.3) Transfers to/(from) Reserves 126.5 (198.0) (12.9) (127.1) (127.1) Transfers from Reserves: Customer Connect (2,031.0) 0.0 0.0 0.0 0.0

Total Corporate Items (16,471.2) (13,536.8) (13,115.4) (12,617.9) (12,308.5)

Projected Surplus/Deficit (-/+) 740.0 2,139.6 2,688.2 3,476.5 4,109.3 Customer Connect savings (740.0) (1,550.0) (1,550.0) (1,550.0) (1,550.0) Projected Surplus/Deficit (+/-) Nov '18 0.0 589.6 1,138.2 1,926.5 2,559.3

Page 96 Appendix 3 The purpose of this appendix is to set out the revenue budget pressures from 2019/20 onwards Revenue Pressures

Scheme Portfolio AD area Description 2019/20 2020/21 2021/22 2022/23 2023/24 Housing, Microsoft Performance Enterprise Microsoft licence fee People and 20,000 20,000 20,000 20,000 20,000 Licenses and Innovation increase. Innovation Change to block funding for supporting Housing, Supporting Strategic people from the county council - People and 39,000 39,000 39,000 39,000 39,000 people grant Development previously was spot funding, resulting Innovation in a reduction in income. Housing, Previous year's telephony budget Performance Telephony People and reductions not achievable. Increase in 13,500 13,500 13,500 13,500 13,500 and Innovation Innovation expeniture budget required.

Grounds Neighbourhood External contractor Living Wage cost Environment 30,000 30,900 31,827 32,781 33,765 maintenance Services pressure. Page 97 Page

Impact of 2017/18 2 year pay New pay N/A Corporate item settlement. Second year changes to 147,961 230,047 254,918 324,374 346,028 scales pay scales.

Due to the changing nature/volume of planning applications SLDC has received during 2018/19 it has become Housing, Planning Strategic apparent that the current income People and 75,000 applications Development budget for planning fee's is not Innovation consistent with the fee's being received to date. Future years income budgets already reduced. South Lakeland House rental income Economy and Strategic Rental income reduction due to surplus space not 14,000 14,000 14,000 14,000 14,000 Assets Development being let Other base budget -8,972 17,614 2,933 5,233 7,133 adjustments 330,489 365,061 376,178 448,888 473,426

1,994,042 Appendix 4 The purpose of this appendix is to set out the revenue growth proposals for 2019/20 onwards

Name Portfolio AD area Description 2019/20 2020/21 2021/22 2022/23 2023/24

Provision of Business Support programme available to South Lakeland businesses of all sizes and sectors. Including specialist training, advice and Business Economy and Strategic mentoring for existing businesses and Support 50,000 50,000 50,000 Assets Development those looking to start up. This is a further Programme phase of an ongoing successful initiative to aid business performance and growth, and its continuation will help create and Page 98 Page sustain jobs in the district

50,000 50,000 50,000 0 0 Appendix 5 The purpose of this appendix is to set out the revenue savings for 2019/20 onwards Revenue Savings

Name Portfolio AD area Description 2019/20 2020/21 2021/22 2022/23 2023/24

Review of corporate Corporate Budget budgets including N/A Corporate item -43,800 -43,800 -43,800 -43,800 -43,800 Review insurances, energy and business rates Changes to the Community Toilet Scheme as per Community Toilet Performance Finance Cabinet decision -19,500 -25,500 -30,500 -30,500 -30,500 Page 99 Page Scheme and Innovation CEX/87

Revenue savings as a Economy and Strategic result of transfer of Kendal Museum -100,000 -100,000 -100,000 -100,000 -100,000 Assets Development Kendal Museum to third party Increase in base Economy and Neighbourhood budget for volume Car Parks -160,000 -160,000 -160,000 -160,000 -160,000 Assets Services changes as identified in 2018/19 monitoring

-323,300 -329,300 -334,300 -334,300 -334,300

-1,655,500 Appendix 6 Capital Programme 2018/19 - 2023/24

2018/19 Re-profiling 2018/19 Total 2018/19 Programme Spending by Project Approved July 2019/20 2020/21 2021/22 2022/23 2023/24 and adj Revised to 2023/24 2018 £000 £000 £000 £000 £000 £000 £000 £000 £000

Play Areas (including community funded schemes and 341.0 144.2 485.2 20.0 20.0 20.0 20.0 20.0 585.2 schemes arising from the Play Space Audit)

Millerground Public Open Space, Access and Play Project 138.3 22.2 160.5 0.0 0.0 0.0 0.0 0.0 160.5 Grange Regeneration 0.0 0.0 0.0 157.3 0.0 0.0 0.0 0.0 157.3 Nobles Rest 193.4 -15.3 178.1 0.0 0.0 0.0 0.0 0.0 178.1 Ferry Nab Redevelopment Phase 1 42.6 0.0 42.6 0.0 0.0 0.0 0.0 0.0 42.6 Cockshott Point Entrance Improvements 0.0 1.8 1.8 0.0 0.0 0.0 0.0 0.0 1.8 Waterhead Public Jetty 27.0 4.4 31.4 0.0 0.0 0.0 0.0 0.0 31.4 Page 100 Page Public Realm - The Glebe phase I and II 50.0 0.0 50.0 0.0 0.0 0.0 0.0 0.0 50.0 Kendal Town Centre Public Realm 19.5 3.1 22.6 0.0 0.0 0.0 0.0 0.0 22.6 New Road Common (approved Council 12 Oct 2017) 231.0 0.0 231.0 0.0 0.0 0.0 0.0 0.0 231.0 Kendal Leisure Centre (including changing rooms) 159.6 0.0 159.6 0.0 0.0 0.0 0.0 0.0 159.6 Wordsworth Trust contribution 42.0 0.0 42.0 0.0 0.0 0.0 0.0 0.0 42.0 Festival Infrastructure 64.8 0.0 64.8 0.0 0.0 0.0 0.0 0.0 64.8 Flood impact works Rothay Park 207.2 0.0 207.2 0.0 0.0 0.0 0.0 0.0 207.2 Footway Lighting 49.4 0.0 49.4 25.0 25.0 25.0 25.0 25.0 174.4

IT Replacements 80.0 0.0 80.0 80.0 80.0 80.0 80.0 80.0 480.0 Customer Connect 290.0 0.0 290.0 300.0 0.0 0.0 0.0 0.0 590.0 Mobile Working 120.0 0.0 120.0 0.0 0.0 0.0 0.0 0.0 120.0

Town and Car Park signing 16.2 0.0 16.2 0.0 0.0 0.0 0.0 0.0 16.2 South Lakeland House carpark works 377.5 0.0 377.5 0.0 0.0 0.0 0.0 0.0 377.5 Car park re-surfacing 339.7 0.0 339.7 25.0 0.0 0.0 0.0 0.0 364.7

Vehicle & Plant Programme (inc bins and boxes) 1,169.0 0.0 1,169.0 1,711.0 594.0 499.0 690.0 2,100.0 6,763.0 Appendix 6 Capital Programme 2018/19 - 2023/24

2018/19 Re-profiling 2018/19 Total 2018/19 Programme Spending by Project Approved July 2019/20 2020/21 2021/22 2022/23 2023/24 and adj Revised to 2023/24 2018 £000 £000 £000 £000 £000 £000 £000 £000 £000

Disabled Facilities Grants 743.4 191.0 934.4 661.0 661.0 661.0 603.0 603.0 4,123.4 Right to buy replacement scheme 495.0 0.0 495.0 0.0 0.0 0.0 0.0 0.0 495.0 Affordable & Empty Homes, Town Centre Properties. 359.0 -191.0 168.0 260.0 260.0 260.0 260.0 0.0 1,208.0 S106 funded affordable homes purchase 146.0 0.0 146.0 0.0 0.0 0.0 0.0 0.0 146.0 Cross-a-Moor junction improvement 300.0 -300.0 0.0 300.0 0.0 0.0 0.0 0.0 300.0 Community Housing Fund 490.0 0.0 490.0 0.0 0.0 0.0 0.0 0.0 490.0

Kendal Museum contribution 85.0 0.0 85.0 0.0 0.0 0.0 0.0 0.0 85.0 Coronation Hall alterations 79.8 0.0 79.8 0.0 0.0 0.0 0.0 0.0 79.8

Page 101 Page Energy-saving building enhancements 149.2 0.0 149.2 0.0 0.0 0.0 0.0 0.0 149.2 Former Knitware Factory (Ulverston) site clearance 89.1 0.0 89.1 0.0 0.0 0.0 0.0 0.0 89.1 Kendal Town Hall stone work 3.2 29.7 32.9 0.0 0.0 0.0 0.0 0.0 32.9 Castle Dairy flood damage reinstatement 19.9 0.0 19.9 0.0 0.0 0.0 0.0 0.0 19.9

Kendal to Lancaster towpath trail 140.0 0.0 140.0 0.0 0.0 0.0 0.0 0.0 140.0 LIPS (excluding contributions to SLDC property included under individual properties) 439.1 -143.7 295.4 165.8 0.0 0.0 0.0 0.0 461.2

Grange Promenade Structural works 100.0 0.0 100.0 300.0 300.0 225.0 250.0 0.0 1,175.0 Braithwaite Fold Caravan Park extention 214.3 0.0 214.3 0.0 0.0 0.0 0.0 0.0 214.3 Burton Hertiage Grant Scheme (funded from LIPS) 0.0 0.0 0.0 80.0 80.0 80.0 0.0 0.0 240.0 Kendal Castle (funded from LIPS) 42.0 0.0 42.0 0.0 0.0 0.0 0.0 0.0 42.0 Car Parking Machines 140.0 0.0 140.0 0.0 0.0 0.0 0.0 0.0 140.0 Parkside Road, Kendal car park 160.4 0.0 160.4 0.0 0.0 0.0 0.0 0.0 160.4 Disabled Toilet improvements 50.0 0.0 50.0 0.0 0.0 0.0 0.0 0.0 50.0 ERDF funded flood defence works 1,556.7 -1,556.7 0.0 1,556.7 1,556.7 1,556.7 0.0 0.0 4,670.1 New Bids Housing Investment Fund: Loans to Housing Associations 0.0 0.0 0.0 3,000.0 3,000.0 0.0 0.0 0.0 6,000.0 New Ulverston Leisure Centre 0.0 0.0 0.0 0.0 9,200.0 0.0 0.0 0.0 9,200.0 Appendix 6 Capital Programme 2018/19 - 2023/24

2018/19 Re-profiling 2018/19 Total 2018/19 Programme Spending by Project Approved July 2019/20 2020/21 2021/22 2022/23 2023/24 and adj Revised to 2023/24 2018 £000 £000 £000 £000 £000 £000 £000 £000 £000 Homeless Accommodation for Families 0.0 0.0 0.0 461.4 0.0 0.0 0.0 0.0 461.4 Abbot Hall redevelopment 0.0 0.0 0.0 100.0 0.0 0.0 0.0 0.0 100.0 Grange Lido 0.0 0.0 0.0 960.0 1,000.0 0.0 0.0 0.0 1,960.0

Bids subject to further assessment: Accomodation review Car park investments* Employment site land acquisition Rydal Road car park bridge

Page 102 Page Depot review

Total 9,760.3 -1,810.4 7,950.0 10,163.2 16,776.7 3,406.7 1,928.0 2,828.0 43,052.6 *subject to detailed review of car parking strategy including potential new car parks at Oxenholme and Arnside, double decking options on existing car parks, provision in Kendal, Braithwaite fold surfacing and electric charging points Appendix 6

Capital Funding 2018/19 - 2023/24

Balance April Estimated Use in capital Potential Balance 2018 Income programme March 2024 £000 £000 £000 £000

General Usable Capital Receipts 1,744 417 -1,953 209 VAT Shelter receipt 831 1,200 -2,031 0 New homes bonus (capital)**** 1,271 1,138 -2,177 232

Earmarked or allocated Revenue (LIPS) 185 995 -995 185 IT replacement reserve 74 480 -480 74

Page 103 Page Major Repairs Reserve 307 800 -868 239 General Revenue contributions 587 1,574 -1,940 221 Cap grants and contributions (inc S106) 593 7,924 -8,467 50 Disabled Facilities Grants 360 3,620 -3,980 0 Community Housing Fund* 2,309 0 -490 1,819 Right to Buy receipt** 3,788 4,200 -6,495 1,493 Borrowing Funding from borrowing***. 0 13,177 -13,177 0 Total 12,049 35,525 -43,053 4,522

*Ring fenced for Community Housing Schemes, £2.36m less £235k funding revenue budgets **Ring fenced to support replacement of affordable housing. ***'Prudential Borrowing'; this may not result in taking on new loans but requires revenue charge to cover the cost over the assets' life ****Subject to annual confirmation and settlement RISK ASSESSEMENT OF LEVEL OF RESERVES: 31/3/19 Appendix 7

Financial Balance Risk Exposure Required Potential Risk Score Weighting (£000) (£000) Comment (Basis of Financial Exposure) Base Budget Contingency for inflation or other 4 50% 301 151 Assumed at 1% of Gross Revenue Budget for 2019/20 unanticipated rise. Underachievement of Charges Income targets and 4 50% 511 255 Estimate of 5% Customer Receipts Income forecasts for 2019/20 spending exceeds budgets Underachievement of Investment Income 4 50% 130 65 1% of exposure of average balance of £13m Insurance Excesses 5 50% 47 24 Based on 10% of insurance premia payments Potential costs of legal challenges 2 25% 700 175 Based on estimated cost of a public enquiry or legal challenge Savings not achieved 2 25% 3,927 982 Savings target at 31/3/23 including customer connect Vacancy target not delivered 2 25% 556 139 Staff vacancy target topsliced from salary budgets Pay increase 3 50% 146 73 2% allowance made in budget for pay increase from April 2020. Impact of additional 1% pay award Increase in pension contributions 4 50% 360 180 Allowance for 1.5% increase in pension fund contributions at next triennial revaluation

50% of Total of RSG/transitional grant/Rural Services grant/NNDR retained funding, based on 2019/20 estimated Changes to existing government funding regimes 6 75% 1,942 1,457 settlement

50% of total revenue grants and contributions received, excluding benefit subsidy and formula grant (based on Changes to existing external grants and contributions 4 50% 974 487 Page 104 Page 2019/20 excluding New Homes Bonus)

Impact of introduction of Universal Credit 2 25% 200 50 Increase in homelessness, changes in administration arrangements, reduction in collection rate etc Changes to Homelessness requirements 2 25% 200 50 Changes in requirements for homelessness Localisation of business rates 4 50% 227 114 Assume 5% reduction in rateable values based on 2017/18 estimate Council tax reduction scheme 4 25% 64 16 SLDC share, based on 10% increase in claims based on 2018/19 estimate Risk Management 9 100% 500 500 Monies set aside to meet the one-off costs of risk management

Emergency contingency fund - Council practice to allocate £1m for any unforeseen emergencies. Bellwin scheme Emergency Contingency 9 100% 1,000 1,000 cuts in at 0.2% of net budget and provides for up to 85% of eligible costs.

TOTALS 11,785 5,718

Maximum Risk Based Reserve Balances 11,785 Total Financial Exposure Recommended Risk Base Reserve Balances 5,718 from above Minimum Risk Based Reserve Balances 2,946 25% of Total Financial Exposure

Projected Level of Reserves - General Fund Working Balance 1,500 Estimated balance 31/3/19 - General Reserve 4,304 Estimated balance 31/3/19 Projected Level of Reserves (General Fund ) 5,804

86 assumes use the recommended risk based balance Projected (Shortfall)/Excess of Current Reserve Balance over Risk Based Reserves Reserves Summary Appendix 8 The purpose of this table is to set out the projected balance on the Council's usable reserves over the MTPF period.

Reserve Balance Balance Balance Balance Balance Balance Summary, Purpose and Commentary 31/3/2018 31/3/2019 31/3/2020 31/3/2021 31/3/2022 31/3/2023 £000 £000 £000 £000 £000 £000 General Reserve (6,024) (4,304) (4,504) (4,704) (4,904) (5,104) The main use of this reserve in recent years has been to fund the one-off costs of flooding, staff redundancy and early retirements to enable organisational reorganisation and the discontinuation of direct provision of services. Unless allocated for a particular purpose, revenue budget under-spending and windfalls are added to the General Reserve. (For more details of the risk and an assessment of the potential financial exposure please see the Risk Assessment of Level of Reserves). The Medium Term Financial Plan provisionally assumes a £200,000 annual contribution to the Reserve, depending on quantification of the potential impact of these factors. Any balance on the General Fund working balance above £1.5m is transferred to this reserve as part of the closure of accounts.

Statutory Duties Reserve (150) (138) (138) (138) (138) (138) Part of General Reserve earmarked for certain purposes: use delegated to SMT & reported as part of Corporate Financial Monitoring. Includes £50k legal costs/by- election contingency, £40k planning legal costs contingency, £60k enforcement legal costs contingency

Flooding Costs Reserve (14) 0 0 0 0 0 Part of General Reserve earmarked for the costs of remediation of December 2015 floods, use delegated to Chief Finance Officer by Council February 2016

Carry-forward Reserve (438) (10) 0 0 0 0 Part of General Reserve earmarked for revenue budgets carried forward from 2017/18 to future years.

Building Control Fee Income 0 0 0 0 0 0 Statutory ring fenced reserve to record Reserve surpluses and losses on building control.

Local Land Charges Reserve (95) 0 0 0 0 0 Statutory ring fenced reserve to record surpluses and losses on local land charges.

Hackney Carriage Licensing 12 12 12 12 12 12 Statutory ring fenced reserve to record Reserve surpluses and losses on licensing.

Licensing Act Reserve (76) (76) (76) (76) (76) (76) Statutory ring fenced reserve to record surpluses and losses on licensing.

Misc Licensing Reserve 32 32 32 32 32 32 Statutory ring fenced reserve to record surpluses and losses on licensing.

Gambling Licensing Reserve 13 13 13 13 13 13 Statutory ring fenced reserve to record surpluses and losses on licensing.

Community Housing Fund (2,309) (1,819) (1,819) (1,819) (1,819) (1,819) income received from Government for Community Housing Fund not spent in year.

Commuted Sums Reserve (153) (3) (3) (3) (3) (3) Income received under various s106 agreements not spent in year

Page 105 Reserve Balance Balance Balance Balance Balance Balance Summary, Purpose and Commentary 31/3/2018 31/3/2019 31/3/2020 31/3/2021 31/3/2022 31/3/2023 £000 £000 £000 £000 £000 £000 Cumbria NDR Pool Income (1,302) (1,150) (1,150) (1,150) (1,150) (1,150) Income from Cumbria NNDR pool, Reserve earmarked for economic development

Cumbria NDR Pool volatility (166) (166) (166) (166) (166) (166) Share of NNDR pool income retained by pool Reserve to offset potential future deficits

Customer Connect Reserve (1,301) (1,981) (0) (0) (0) (0) To fund the implementation of the Customer Connect Project, initially using the Customer Connect budgets from 2016/17 revenue budgets not spent during 2016/17.

Debt Redemption Reserve (455) 0 0 0 0 0 Underspend on budget for interest payment and MRP due to changes in capital programme, originally set aside for future costs of debt repayment, proposed transfer to Customer Connect Reserve

Economic Development Fund (167) (220) (220) (220) (220) (220) To encourage economic development in the District and to ensure that unused funds in a particular year can be carried forward.

General Fund Major Repairs (307) (177) (207) (237) (267) (297) To fund major repairs and maintenance to Reserve General Fund properties that are not capitalisable and would be difficult to accommodate in the annual planned maintenance programme. The Reserve: • acts as a backstop for emergency major repairs • accumulates funds as necessary to meet an abnormal year in maintenance terms, • is able to assist in meeting regular maintenance costs.

IT Replacement Reserve (74) (74) (74) (74) (74) (74) To fund the replacement of hardware and software with a preference for the updating of the corporate and networking infrastructure.

Kendal Employment Dev. Fund (0) (0) (0) (0) (0) (0) Assistance to eligible developing firms in the Kendal area

LABGI (5) (5) (5) (5) (5) (5) To fund non-recurring initiatives that contribute directly to one or more of the Council’s priority initiatives, with a preference for economic development. This fund is now practically fully committed and should be closed once the committed spend is achieved.

Local Arts Strategic Partnership (30) (30) (30) (30) (30) (30) Monies provided towards Arts Strategy and related activities carried forward for use in subsequent years.

LSVT Environmental Warranties (282) (282) (282) (282) (282) (282) To pay for environmental insurance until 2032 relating to warranties given as part of the housing transfer.

Marshall Hooper Reserve (37) (37) (37) (37) (37) (37) Monies left to the Council as a bequest to be used for housing for the elderly in Grange

New Homes Bonus Reserve (1,457) (1,085) (903) (690) (482) (331) New reserve to enable forward funding of eligible schemes through the Council's New Homes Bonus protocol

Page 106 Reserve Balance Balance Balance Balance Balance Balance Summary, Purpose and Commentary 31/3/2018 31/3/2019 31/3/2020 31/3/2021 31/3/2022 31/3/2023 £000 £000 £000 £000 £000 £000 NNDR Surplus Reserve (1) (1) (1) (1) (1) (1) Timing gap between recognising s31 grant and recognising offsetting NDR collection fund deficits.

Planning Delivery Grant Fund (18) 0 0 0 0 0 Monies provided by Planning Delivery Grant in 2009/10 carried forward for use in a subsequent years. This source of grant funding has now been discontinued and the fund will be closed when the current balance is spent.

Revs and Bens Replacement (10) 0 0 0 0 0 Transferred to Customer Connect Reserve Reserve following replacement of Revs & Bens system in 2017/18

Revenue Funds for Capital (587) (7) 440 340 240 140 Monies provided from revenue to support the Capital Programme & fund expenditure that may not be capitalisable: annual contribution £100k

Second Homes Income Reserve (46) (46) (46) (46) (46) (46) Initiatives to enable the provision of affordable housing: transfer of unspent balance at end of year

Social Lettings Reserve 0 0 0 0 0 0 income from the social lettings scheme set aside for potential losses or repair bills

Total Reserves excluding (15,447) (11,555) (9,165) (9,282) (9,404) (9,583) working balance GF Working balance (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) Buffer against unforeseen & emergency expenditure in-year, inflationary demands, adverse cash flow, inability to use capital resources.

Total Usable Reserves (16,947) (13,055) (10,665) (10,782) (10,904) (11,083)

Page 107 Proposed SCP and Grades Appendix 9 Ths purpose of this appendix is to show the salaries associated with the old and new SCPs and the proposed new grades to apply from 1 April 2019 Old New New New Hourly New Old Salary SCP SCP Salary Rate Proposed Grades SCP 66 60,125 60 61,328 31.78793 Q 60 65 59,309 59 60,495 31.35616 841 59 64 58,493 58 59,663 30.92492 58 63 57,677 57 58,831 30.49367 57 62 56,860 56 57,997 30.06138 P 56 61 56,047 55 57,168 29.63169 815 55 60 55,230 54 56,335 29.19993 840 54 59 54,415 53 55,503 28.76868 53 58 53,597 52 54,669 28.33639 O 52 57 52,535 51 53,586 27.77505 750 51 56 51,477 50 52,507 27.21577 814 50 55 50,453 49 51,462 26.67412 49 54 49,504 48 50,494 26.17238 N 48 53 48,558 47 49,529 25.67220 710 47 52 47,578 46 48,530 25.15439 749 46 51 46,614 45 47,546 24.64435 45 50 45,659 44 46,572 24.13950 M 44 49 44,697 43 45,591 23.63103 679 43 48 43,757 42 44,632 23.13395 709 42 47 42,806 41 43,662 22.63117 41 46 41,846 40 42,683 22.12373 L 40 45 40,858 39 41,675 21.60126 637 39 44 39,961 38 40,760 21.12699 678 38 43 39,002 37 39,782 20.62007 37 42 38,052 36 38,813 20.11781 K 36 41 37,107 35 37,849 19.61814 595 35 40 36,153 34 36,876 19.11381 636 34 39 35,229 33 35,934 18.62555 J 33 38 34,106 32 34,788 18.03154 544 32 37 33,136 31 33,799 17.51892 594 31 36 32,233 30 32,878 17.04154 30 35 31,401 29 32,029 16.60148 I 29 34 30,756 28 31,371 16.26042 511 28 33 29,909 27 30,507 15.81259 543 27 32 29,055 26 29,636 15.36113 H 26 31 28,221 25 28,785 14.92003 478 25 30 27,358 24 27,905 14.46390 510 24 29 26,470 23 26,999 13.99430 23 28 25,463 22 26,317 13.64080 G 22 21 25,801 13.37334 21 27 24,657 20 25,295 13.11107 443 20 26 23,866 19 24,799 12.85398 477 19 18 24,313 12.60207 18 25 23,111 17 23,836 12.35483 17 16 23,369 12.11277 F 16 24 22,401 15 22,911 11.87538 401 15 23 21,693 14 22,462 11.64265 442 14 13 22,021 11.41407 13 22 21,074 12 21,589 11.19015 E 12 21 20,541 11 21,166 10.97090 358 11 10 20,751 10.75579 400 10 20 19,819 9 20,344 10.54484 9 19 19,446 8 19,945 10.33802 8 18 18,870 7 19,554 10.13536 D 7 16/17 18,319 - 18,672 6 19,171 9.93684 316 6 14/15 17,681 - 17,972 5 18,795 9.74195 5 12/13 17,173 - 17,391 4 18,426 9.55068 C 4 10/11 16,863 - 17,007 3 18,065 9.36357 243 3 8/9 16,626 - 16,755 2 17,711 9.18008 2 6/7 16,394 - 16,495 1 17,364 9.00022 1

Page 108 Item No.10

South Lakeland District Council Council Tuesday, 18 December 2018 Community Governance Review - End of Stage 1

Portfolio: Councillor Jonathan Brook - Deputy Leader of the Council Report from: Debbie Storr - Director of Policy and Resources (Monitoring Officer) Report Author: Paul Mountford - Principal Performance and Intelligence Officer Tom Benson - Electoral Services Manager Wards: (All Wards); Forward Plan: Not applicable

1.0 Expected Outcome 1.1 This report considers the responses to the first stage of the public consultation carried out as part of the Community Governance Review having regard to the South Lakeland Community Governance Review Terms of Reference as agreed by Council on 24 July 2018. 2.0 Recommendation 2.1 It is recommended that Council:- (1) Note the consultation responses received to the first Stage 1 of the consultation; (2) Consider and agree the draft recommendations as set out in Appendix 1 for progression to the second consultation stage. 3.0 Background and Proposals 3.1 At its meeting on 24 July 2018, Full Council agreed to carry out a Community Governance Review within the District. The Terms of Reference of the Review were agreed and a Community Governance Review Project Team established to consider the review and make recommendations to the Council. 3.2 The first consultation period commenced on 10 August 2018 and as part of this all of the parish councils within South Lakeland were invited to contribute. 3.3 The Review is being undertaken in accordance with Chapter 3 of the Local Government and Public Involvement in Health Act 2007 (“the Act”) and the Guidance on Community Governance Reviews (March 2010) provided by the Department for Communities and Local Government Boundary Commission for England. The timetable is included within the Terms of Reference (detailed in Appendix 3) as agreed by Council on 24 July 2018. 3.4 As part of Stage 1, as well as key stakeholders (including the Cumbria Association for Local Councils (CALC), Cumbria County Council, Lake District National Park Authority (LDNPA) and Yorkshire Dales National Park Authority (YDNPA)) residents associations, community groups and local people were asked to make representations in connection with the Review.

Page 109 3.5 The Review must ensure that the proposed community governance reflects the interests and identities of the community. It must also make certain that the arrangements are effective and convenient for the electors of that community. 3.6 Parish wards must be contained within district wards and county electoral divisions; that is parish wards cannot cross principal council ward and/or division boundaries. 3.7 Further district-wide (stage two) consultation, as detailed in the terms of reference, will commence 4 March 2019 ending 31 May 2019. Stage two consultation will consider any submissions made on these draft recommendation culminating in the provision of final recommendations for approval. 3.8 Final recommendations will be considered at Full Council on 23 July 2019 with any reorganisation order issued in August 2019. 3.9 Following consideration of the responses received draft recommendations have been drawn up and are set out in Appendix 1. They contain a number of potential changes, including:  reducing the number of councillors on Arnside Parish Council from eleven to eight  the potential altering of the parish boundary of Kendal Town Council to include an area of proposed development of land north of High Sparrowmire - a map is provide in Appendix 2 (D)  the potential altering of the parish boundary of Kendal Town Council to include properties on Natland Mill Beck Lane and The Beeches, and to include a small area of proposed development on land at Watercrook - a map is provided in Appendix 2 (E)  abolishing the current wards of Dent and Cowgill and having Dent Parish Council as an un-warded parish  the creation of a new Parish which amalgamates the parish of Fawcett Forest with the parish of Whitwell and Selside to create the Parish of Selside  that the ward of Grange West is abolished and Grange Town Council is made up of two wards: Grange North and Grange South  changing the naming of the wards in Kirkby Ireleth Parish Council  altering the election cycle and reducing the number of councillors on Lower Allithwaite Parish Council  a number of boundary changes to the parish of Natland  altering the election cycle of Skelwith Parish Council to ensure that the elections are held on the same day as South Lakeland district elections for the ward of Ambleside and Grasmere; and  reducing the number of councillors on Windermere Town Council from twenty to thirteen. 3.10 Council is asked to consider and approve the recommendations for publication and for the second consultation stage, Stage three of the review to commence.

Page 110 4.0 Consultation 4.1 At the close of the consultation period responses were received from the following parish councils:  Arnside  Claife  Coniston  Dent  Hawkshead  Helsington  Kendal Town  Natland  New Hutton  Old Hutton and Holmescales  Preston Patrick, and  Ulverston. 4.2 Details of all the responses and recommendations can be found in Appendix 1. 4.3 Oxenholme Village Residents Group made a submission with a proposal for Oxenholme to be a new parish with its own parish council. The boundaries of this parish would not include any properties west of the railway line which currently lie in the Oxenholme ward of Kendal Town Council. Full details can be found in Appendix 1 and Appendix 2 (G). 4.4 Fawcett Forest parish has a very small electorate and has a recent history of not meeting, leading to the Council’s Monitoring Officer being appointed by auditors to sign off its accounts. Given this, the Council is proposing to create a new Parish which amalgamates the parish of Fawcett Forest with the parish of Whitwell and Selside. The new parish would have a forecasted electorate of 183. 4.5 The small parish ward of Grange West was created as the properties there were in a different district council ward to the rest of Grange. Following a further electoral review by the Local Government Boundary Commission for England this is no longer the case. The Council propose that the ward of Grange West is abolished and Grange Town Council is made up of two wards: Grange North and Grange South. 4.6 The Council are seeking views on altering the election cycle of Lower Allithwaite Parish Council to ensure that the elections are held on the same cycle as the South Lakeland district election cycles for the wards of Grange and Cartmel. The Council propose Lower Allithwaite Parish Council holds elections in 2020 to begin the new cycle of elections, with subsequent elections held every four years. 4.7 As a result of the further electoral review carried out by the LGBCE, Allithwaite Parish Council is part of both Grange and Cartmel district wards. Cartmel is a two-member ward with a fallow year in 2019 (and every four years subsequent to this). Lower Allithwaite Parish Council has its scheduled elections in 2019 and, in the two wards belonging to the Cartmel district ward, is not able to combine these elections and get the cost benefits that combined elections bring. 4.8 Natland Parish Council submitted a comprehensive list of comments. The Council is proposing altering the parish boundaries of Natland Parish Council to ensure that community governance reflects the identities and interests of the community in that area - as detailed in Appendix 1 and Appendix 2 (E) and 2 (G).

Page 111 4.9 The Council is seeking views on altering the election cycle of Skelwith Parish Council to ensure that the elections are held on the same day as South Lakeland district elections for the ward of Ambleside and Grasmere. The Council propose Skelwith Parish Council holds elections in 2023 to begin the new cycle of elections, with subsequent elections held every four years. 4.10 The Council would like to seek views on reducing the number of councillors on Windermere Town Council to thirteen. Windermere Town Council currently has twenty town councillors. It has, in recent years, carried many vacancies and has a history of uncontested elections. With regard to government research which shows that a parish council of this size should have between nine and sixteen parish councillors, the Council recommended the number of thirteen to ensure a greater electoral equality between each ward. 5.0 Alternative Options 5.1 Under the Act, South Lakeland District Council has the power to stimulate debate in respect of parish boundaries. Community Governance Reviews can take place for the whole, or part of, the District to consider one or more of the following:  Creating, merging, altering or abolishing parishes;  The naming of parishes and the style of new parishes;  The electoral arrangements for parishes (the ordinary year of election; council size, the number of councillors to be elected to the Council, and parish warding), and  Grouping parishes under a common parish council or de-grouping parishes. 5.2 The Council is required to ensure that community governance within the area under review will be:  Reflective of the identities and interests of the community in that area; and  Is effective and convenient. 5.3 In doing so the community governance review is required to take into account:  The impact of community governance arrangements on community cohesion; and  The size, population and boundaries of a local community or parish. 5.4 Arnside Parish Council resolved that the number of Parish Councillors to represent Arnside Parish Council be reduced to six. The reason being that there are permanently vacant seats on the Parish Council and the current level of eleven Parish Councillors is unattainable. The Council noting a pattern of a high number of vacancies and uncontested elections, recommend a reduction in the number of Parish Councillors to eight. This is recommended to ensure effective and convenient community governance. 5.5 In order to alter the boundary on areas of land bordering Kendal, the Council would have to apply to the Local Government Boundary Commission for England (LGBCE) to make a consequential change to both district ward boundary and county electoral division boundary in this area. It will be for the LGBCE to decide, following receipt of the proposals, if a related alteration to these boundaries should be made and when it should be implemented.

Page 112 5.6 As detailed in Appendix 1, Helsington Parish Council would support a boundary change as large areas of the current Parish have little connection with Helsington and Brigsteer. The Council is not recommending changes in Helsington Parish Council based on the comments received. However, the Council is open to further representations. The Council is minded not to make recommendations that creates a much smaller parish council. The comments suggested would create a complex set of proposals to the LGBCE and the benefits are not clear. 5.7 The Council is not proposing a recommendation to create a new civil parish of Oxenholme. The creation of a new parish on boundaries recently reviewed and altered by the LGBCE would create a greater degree of complexity having, as it would, a significant impact on electoral equality within the wards of Kendal Town Council. However, the Council would like to use the next consultation stage of the Review to explore community governance in Oxenholme in terms of the identities and interests of communities and whether local government there is effective. 5.8 As a result of the further electoral review carried out by the LGBCE, Skelwith Parish Council sat within the ward of Ambleside and Grasmere. Ambleside and Grasmere is a two-member ward with a fallow year in 2020 (and every four years after this). Skelwith Parish Council has its scheduled elections in 2020 and is therefore not able to realise the cost benefits that combining parish and district elections bring. 5.9 Though the Council is recommending no changes to the electoral arrangements for Ulverston Town Council, the Council is aware of wishes to alter the names of the wards to give them a clearer description and better reflect community identities. 5.10 In order to reduce the number of Windermere Town Councillors the Council would have to apply to the LGBCE to make a consequential change. There are no proposals to alter any boundaries, however the electoral arrangements for Windermere Town Council were considered as part of the further electoral review and as such are protected under law from five years after this review. It will be for the LGBCE to decide, following receipt of the proposals, if a reduction in councillor numbers should be made and when it should be implemented. 6.0 Links to Council Priorities 6.1 Our Place - The Council will put South Lakeland at the heart of decision making. The Council will help towns and villages thrive commercially whilst retaining their distinctive character. The Council is committed to furthering the localism agenda and empowering local communities to develop. 7.0 Implications Financial, Resources and Procurement 7.1.1 Under the Act, local authorities have responsibility for undertaking community governance reviews. The process is prescribed and involves officer time and other associated costs, such as postage and printing. These costs will be met from within existing budgets. Human Resources 7.2.1 There will be human resource implications arising from a review which will involve Officers from across the council.

Page 113 Legal 7.3.1 Section 82 of the Act empowers the District Council to undertake a Community Governance Review of the whole or part of its area, for the purpose of making recommendations with regard to the constitution of new parishes, the alteration or abolition of existing parishes, the grouping or de-grouping of parishes, and consequential matters. In this current case the fact that the conclusion of the last review took place in December 2013 does not detract from that power. 7.3.2 Any review would be undertaken in accordance with Chapter 3 of the Act and the Guidance on Community Governance Reviews (March 2010) provided by the Department for Communities and Local Government Boundary Commission for England. The process that has been adopted by the Council complies with those requirements. 7.3.3 Where parish councils are directly affected by the Boundary Commission’s recommendations for district ward boundaries, they can make recommendations for their electoral arrangements. These include recommendations:  for the number of councillors to be elected to the council  the need for parish wards  the number and boundaries of any parish wards  the number of councillors to be elected from any parish ward  the name of any parish ward 7.3.4 Whilst making recommendations on these aspects of parish electoral arrangements, the Boundary Commission state that they will not normally make recommendations to change the total number of parish councillors for any particular parish. Their guidance states that this is a matter best resolved locally. The District Council can resolve to make such changes following a Community Governance Review. 7.3.5 Where parish councils are directly affected by the Boundary Commission’s recommendations for district ward boundaries, the LGBCE can make recommendations for their electoral arrangements. Health, Social, Economic and Environmental 7.4 Have you completed a Health, Social, Economic and Environmental Impact Assessment? No 7.5 The Community Governance Review Health, Social, Economic and Environmental Impact Assessment was completed and provided to Council at its meeting on 24 July 2018. Equality and Diversity 7.6 Have you completed an Equality Impact Analysis? No 7.7 The Community Governance Review Equality Impact Assessment was completed and provided to Council at its meeting on 24 July 2018.

Page 114 Risk Risk Consequence Controls required That without periodic Residents feel Community Governance Community Governance disconnected from the Reviews carried out Reviews, areas of South business of the parish periodically to respond to Lakeland are not represented by council. changes in circumstances the appropriate parish council. or valid petitions presented within the appropriate timeframe. Contact Officers Paul Mountford, Principal Performance and Intelligence Officer - [email protected] Tom Benson, Electoral Services Manager - [email protected] Appendices Attached to this Report Appendix No. Name of Appendix 1 Community Governance Review 2018-2019 - Draft Recommendations 2 Community Governance Review 2018-2019 - Draft Recommendations - Maps

3 Community Governance Review 2018-2019 - Terms of Reference

Background Documents Available Name of Background document Where it is available Community Governance Review Minute C/93 Report March 2017 Community Governance Review Minute C/30 Report July 2018

Tracking Information Signed off by Date sent Legal Services 22 November 2018 Section 151 Officer 22 November 2018 Monitoring Officer 22 November 2018 SMT 22 November 2018

Circulated to Date sent Assistant Director 22 November 2018 Human Resources Manager 22 November 2018 Communications Team 22 November 2018 Leader 30 November 2018 Committee Chairman N/A Portfolio Holder 22 November 2018 Ward Councillor(s) N/A Committee N/A Executive (Cabinet) N/A Council 18 December 2018 Group Leaders 30 November 2018

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Page 116 Appendix 1

Community Governance Review 2018 -2019 Draft Recommendations Report

Page 117 Page

1 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Aldingham

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Parish Council Aldingham: North 3 410 137 410 137 Furness Peninsula (warded)

Parish Council

Page 118 Page Aldingham: South 5 542 109 540 108 Furness Peninsula (warded)

Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

2 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Arnside

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 11 1,965 179 1,853 169 Arnside & Milnthorpe

Comments Page 119 Page Submission received from Arnside Parish Council:

‘At its meeting last night (the 8th October 2018) Arnside Parish Council Resolved that it would like to ask that the number of Councillors to represent Arnside Parish Council be reduced to 6 as part of the local Governance review. The reason being that there are permanently vacant seats on the Council and the current level of 11 Councillors is unattainable’

Draft recommendations

After taking into account the comments made regarding Arnside Parish Council, and noting a pattern of a high number of vacancies and uncontested elections, we are recommending a reduction in the number of councillors to EIGHT. We recommend this to ensure effective and convenient community governance.

3 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Barbon

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Sedbergh & Kirkby Unwarded Parish Council 5 197 40 179 36 Lonsdale

Page 120 Page Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

4 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Beetham

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Parish Council Beetham: East 4 599 150 569 143 Arnside & Milnthorpe (warded)

Parish Council Beetham: West 5 878 176 860 172 Arnside & Milnthorpe (warded) Page 121 Page

Comments

Submission received from Beetham Parish Council:

‘Beetham PC consider present arrangements to be about right with no change necessary’.

Draft recommendations

No changes.

5 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Blawith & Subberthwaite

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 157 32 157 32 Broughton & Coniston

Page 122 Page Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

6 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Broughton East

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 181 37 181 37 Cartmel

Comments Page 123 Page No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

7 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Burneside

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Burneside: Parish Council 7 891 128 983 141 Kendal Rural Strickland Ketel (grouped)

Burneside: Parish Council 4 383 96 487 122 Kendal Rural Strickland Roger (grouped) Page 124 Page

Comments

No comments were received from Burneside Parish Council during stage one of this review.

Submissions affecting Burneside Parish Council have been made by Kendal Town Council, please see recommendation A under the Kendal Town Council section

Draft recommendations

Based on comments made regarding the boundary between Burneside Parish Council and Kendal Town Council we would like to seek views on an area of land north of High Sparrowmire into Kendal Parish. This recommendation is made to ensure community governance is reflective of the identities and interests of the community in that area. This would mean the area of land north of High Sparrowmire would move from Burneside Parish Council into the Strickland ward of Kendal Town Council. The specific area in question is marked on the following map – Appendix 2(D) –Land North of Kendal Strickland Ward. For this recommendation to take effect we would have to apply to the Local Government Boundary Commission for England (LGBCE) to make a consequential change to both district ward boundary and county electoral division boundary in this area. It will be for the LGBCE to decide, following receipt of the proposals, if a related alteration to these boundaries should be made and when it should be implemented.

8 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Burton-in-Kendal

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 9 1,170 130 1,245 139 Burton & Crooklands

Comments Page 125 Page No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

9 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Cartmel Fell

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 253 51 253 51 Bowness & Levens

Page 126 Page Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

10 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Casterton

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Sedbergh & Kirkby Unwarded Parish Council 5 235 47 253 51 Lonsdale

Comments Page 127 Page No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

11 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Claife

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Parish Council Claife: Lower 3 162 54 162 54 Broughton & Coniston (warded)

Parish Council Claife: Upper 3 80 27 80 27 Broughton & Coniston Page 128 Page (warded)

Comments

Claife Parish Council submitted the response below:

‘On abolishing wards within the parish: It would prefer to continue with 2 wards as currently, because the current system functions well, each ward has some distinctly different issues, and we don't feel there is a strong need to change it. Despite the difference in electorate numbers it was felt that it is also the Parish Council's responsibility to look after the land and parish interests, and these are broadly equal. On the prospect of grouping with a neighbouring parish: No, we would prefer to remain independent because we believe Claife has unique and distinct issues that require dedicated focus. On the prospect of reducing councillor numbers: No, sometimes councillors are away and keeping our numbers to 6 means we increase the certainty of having a quorum for decisions’

Draft recommendations

No changes

12 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Colton

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Parish Council Colton: Central 3 200 67 200 67 Broughton & Coniston (warded)

Parish Council Colton: East 3 175 59 175 59 Broughton & Coniston (warded) Page 129 Page

Colton: West Parish Council 3 242 81 242 81 Broughton & Coniston

Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

13 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Coniston

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 7 686 98 696 100 Broughton & Coniston

Page 130 Page Comments

Submission received from Coniston Parish Council:

‘Under the Community Governance Review for South Lakeland Coniston Parish Councillors would like to confirm that they would like Coniston Parish Council to remain as it is’.

Draft recommendations

No changes.

14 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Crook

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 7 275 40 275 40 Kendal Rural

Comments Page 131 Page No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

15 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Crosthwaite & Lyth

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Crosthwaite & Lyth Parish Council 7 516 74 581 83 Bowness & Levens

Page 132 Page Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

16 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Dent

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Parish Council Sedbergh & Kirkby Dent: Cowgill 3 115 39 115 39 (warded) Lonsdale

Parish Council Sedbergh & Kirkby Dent: Dent 6 449 75 474 79 (warded) Lonsdale

Page 133 Page Comments

Submission from Dent Parish Council: ‘Dent with Cowgill Parish Council would like to request the consideration of the following submission as part of the Community Governance Review. That the wards of Dent (6 councillors) and Cowgill (3 councillors) be abolished and the Parish Council is no longer warded. The Parish Council would retain 9 councillors all with responsibility for the whole parish. It was resolved to make this submission at the Parish Council meeting on 05 November 2018’.

Draft recommendations

We would like to seek views on abolishing the current wards of Dent and Cowgill and having Dent Parish Council as an un-warded parish. It would retain the current allocation of nine councillors. We are recommending this change to ensure that community governance is: a) effective and convenient and b) reflects the identities and interests of the community in that area. We have attached a map which shows the current warding arrangements – Appendix 2(A) - Dent.

17 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Docker

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Docker Parish Meeting 0 52 0 52 0 Kendal Rural

Page 134 Page Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

18 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Duddon

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Parish Council Duddon: Angerton 1 15 15 15 15 Broughton & Coniston (grouped)

Duddon: Broughton Parish Council 7 728 104 728 104 Broughton & Coniston West (grouped) Page 135 Page Duddon: Parish Council Dunnerdale-with- 2 101 51 101 51 Broughton & Coniston (grouped) Seathwaite

Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

19 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Egton-With-Newland, Mansriggs & Osmotherly

Electors per Predicted Type of Electorate councillor Predicted number of parish Number of at 3 Ward name (if applicable) at 3 electorate electors per District ward council or councillors September September 2023 councillor meeting 2018 2018 2023 Egton-with-Newland, Parish Mansriggs & Osmotherley: Council 6 681 114 669 112 Furness Peninsula Egton-with-Newland (grouped) Egton-With-Newland, Parish Page 136 Page Mansriggs & Osmotherly: Council 1 38 38 38 38 Furness Peninsula Mansriggs (grouped) Egton-With-Newland, Parish Mansriggs & Osmotherly: Council 2 200 100 189 95 Furness Peninsula Osmotherley (grouped)

Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

20 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Fawcett Forest

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Fawcett Forest Parish Meeting 0 23 0 23 0 Kendal Rural

Comments Page 137 Page No comments were received regarding this parish during stage one of the review.

Draft recommendations

Fawcett Forest parish has a very small electorate and has a recent history of not meeting, leading to the Monitoring Officer at South Lakeland District Council being appointed by auditors to sign off its accounts. Given this, we are proposing to create a new Parish which amalgamates the parish of Fawcett Forest with the parish of Whitwell and Selside. The new parish would have a forecasted electorate of 183. We recommend that the new parish is named Selside Parish, and that the parish shall not have a parish council, but a parish meeting – a map is provided in Appendix 2 (B). We are recommending this change to ensure that community governance is: a) effective and convenient and b) reflects the identities and interests of the community in that area.

21 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Firbank

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Firbank Parish Meeting 0 95 0 87 0 Kendal Rural

Page 138 Page Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

22 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Garsdale

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Sedbergh & Kirkby Unwarded Parish Council 7 176 26 180 26 Lonsdale

Comments Page 139 Page No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

23 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Grange

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Town Council Grange: North 4 1,813 454 1,677 420 Grange (warded)

Town Council

Page 140 Page Grange: South 4 1,600 400 1,783 446 Grange (warded)

Town Council Grange: West 1 181 181 150 150 Grange (warded)

Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

We would like to seek views on altering the warding pattern in the parish of Grange. The small ward of Grange West was created as the properties there were in a different district council ward to the rest of Grange. Following a further electoral review by the LGBCE this is no longer the case. We therefore propose that the ward of Grange West is abolished and Grange Town Council is made up of two wards: Grange North and Grange South. The properties in Grange West will become part of an enlarged Grange South. Grange North will retain four councillors, and Grange South will have five councillors. Attached is a map of the proposed new wards – as detailed in Appendix 2 (C)

24 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

The average elector to councillor ratio for Grange is 401. The forecasted elector to councillor ratio for each new ward is:

 Grange North – 419  Grange South – 387 We are recommending this change to ensure that community governance is: a) effective and convenient, and b) reflects the identities and interests of the community in that area.

Page 141 Page

25 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Grayrigg

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Grayrigg Parish Meeting 0 160 0 139 0 Kendal Rural

Page 142 Page Comments

No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes.

26 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Haverthwaite

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 7 605 87 674 97 Broughton & Coniston

Comments Page 143 Page No comments were received regarding this parish during stage one of the review.

Draft recommendations

No changes

27 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Hawkshead

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Hawkshead: Parish Council 3 119 40 119 40 Broughton & Coniston Fieldhead (warded)

Hawkshead: Parish Council

Page 144 Page 4 290 73 311 78 Broughton & Coniston Hawkshead (warded)

Comments

Submission received from Hawkshead Parish Council:

‘I am writing on behalf of Hawkshead Parish Council who met last week and discussed the review as an Agenda item. They have asked me to feedback that they are happy with the way things are and the area they cover and feel that the systems in place work well’

Draft recommendations

No changes

28 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Helsington

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 7 269 39 287 41 Bowness & Levens

Comments Page 145 Page Submission received from Helsington Parish Council.

The Parish Council would support a boundary change as large areas of the current Parish have little connection with Helsington and Brigsteer. The changes should accommodate:  Ensuring the Parish was wholly within the boundaries of the National Park.  A new parish of minimum of 150 electorate concentrated around Brigsteer Village and Helsington(Whetstone Lane)  Areas to the East of the A591 have more in common with Natland or Kendal and should be reallocated.  Properties on the Moss (e.g. Low Plains Farm) and Barrowfield could be included in this Parish, currently part of Underbarrow. The suggested boundary would be Third Moss Lane.  Low Sizergh being east of the A591 area being reallocated to Sedgwick or Levens Parish.

The Councillors do not believe that there would be any gain in joining a group of parishes but that a new Parish of 150-200 electors with 7 Parish Councillors centred on the settlement of Brigsteer was the most appropriate model.

29 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Draft recommendations

No changes We are not recommending changes in Helsington Parish Council based on the comments received. However, we are open to further representations. We are not minded to make recommendations that creates a much smaller parish council. The comments suggested would create a complex set of proposals to the LGBCE and the benefits are not clear. Though we are not recommending a change, we are still keen to hear more views and the following could be considered:

 Create a new parish council  Change the boundaries of the existing parish council and, possibly, rename  Changing the boundaries and abolishing the parish council, moving to it being a parish meeting Page 146 Page  Warding Helsington Parish Council to ensure those on the fringes have adequate representation

30 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Heversham

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 7 587 84 543 78 Bowness & Levens

Comments Page 147 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes

31 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Hincaster

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Hincaster Parish Meeting 0 164 0 171 0 Burton & Crooklands

Page 148 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes

32 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Holme

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 7 1,186 170 1,189 170 Burton & Crooklands

Comments Page 149 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

33 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Hutton Roof

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 175 35 166 34 Burton & Crooklands

Page 150 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

34 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Kendal

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Town Council Kendal: Castle 2 1,766 883 2,212 1,106 Kendal East (warded)

Town Council Kendal: Fell 2 1,673 837 1,634 817 Kendal Town (warded)

Page 151 Page Town Council Kendal South & Kendal: Heron Hill 4 3,049 762 2,962 741 (warded) Natland

Town Council Kendal: Highgate 2 1,644 822 1,694 847 Kendal Town (warded)

Town Council Kendal: Kirkland 4 3,002 751 3,027 757 Kendal West (warded)

Town Council Kendal: Mintsfeet 2 1,612 806 1,510 755 Kendal Town (warded)

Town Council Kendal: Nether 4 2,533 633 3,313 829 Kendal East (warded)

Kendal: Town Council Kendal South & 1 1,067 1,067 1,251 1,251 Oxenholme (warded) Natland

35 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Kendal

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Town Council Kendal: Stonecross 3 2,141 714 3,261 1,087 Kendal West (warded)

Town Council Kendal: Strickland 4 3,285 821 3,418 864 Kendal North

Page 152 Page (warded)

Comments

Submission were received from Kendal Town Council, Natland Parish Council and the Oxenholme Resident’s Association.

In summary, Kendal Town Council suggested that the boundary of Kendal Parish should follow the Development Plan boundary in areas where that currently crosses into parishes outside of Kendal Parish, as well as making some other suggestions. Their proposals are:

 Aligning the Kendal Parish boundary with the development plan boundary west and north of High Sparrowmire  Aligning the Kendal Parish boundary with the development plan boundary north of Laurel Gardens  Addressing an anomaly where the boundary appears to split neighbouring properties on Gilthwaiterigg Lane  Including possible development land at Appleby Road into Kendal Parish  Aligning the Kendal Parish boundary with the development plan boundary south of Natland Mill Beck Lane  Aligning the Kendal Parish boundary with the development plan boundary at Scroggs Wood  Moving the Kendal Parish boundary to follow the A591 at Brigsteer  Including possible development land at Kendal Fell quarry into Kendal Parish  Aligning the Kendal Parish Boundary with the development plan boundary at Rochester Gardens and Burton Road, Oxenholme

36 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Natland Parish Council made a submission which relates to Kendal Parish. In summary, their proposals are:

 Properties south of Natland Mill Beck Lane should remain in the parish of Natland  Properties and development land at Rochester Gardens and Burton Road, Oxenholme should move out of Natland Parish into a new civil parish of Oxenholme

Oxenholme Village Residents Group made a submission with a proposal for Oxenholme to be a new parish with its own parish council. The boundaries of this parish would not include any properties west of the railway line which currently lie in the Oxenholme ward of Kendal Town Council.

All the above submissions are available for inspection on request.

Draft recommendations

Page 153 Page Several submissions were received which may have an impact on Kendal Town Council. As Kendal Town Council went through boundary changes as part of the further electoral review by the LGBCE, any proposed change would need their approval as a consequential change to electoral arrangements they have already considered. The decision to accept the proposal and when to implement it would be a decision for the LGBCE. We are seeking views on the following recommendations: A) Land north of Strickland ward (Hallgarth) We are proposing altering the parish boundary of Kendal Town Council to include properties on an area of land north of High Sparrowmire. This would form part of the Strickland ward of the parish of Kendal. The attached map shows the proposed new boundary between Kendal Town Council and Burneside Parish Council – Appendix 2 (D). We are recommending this change to ensure that community governance reflects the identities and interests of the community in that area. B) Land adjoining Stonecross, Heron Hill and Oxenholme wards We are proposing altering the parish boundary of Kendal Town Council to include properties on Natland Mill Beck Lane and The Beeches, and to include a small area of land at Watercrook. This would form part of the Stonecross ward of the parish of Kendal. The attached map shows the proposed new boundary between Kendal Town Council and Natland Parish Council – Appendix 2 (E) We are recommending this change to ensure that community governance reflects the identities and interests of the community in that area.

37 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

C) Land at Rochester Gardens adjoining Oxenholme ward We are proposing altering the parish boundary of Kendal Town Council to include the properties on Rochester Gardens that are currently in Natland Parish. All properties on Rochester Gardens would form part of the Oxenholme ward of the Parish of Kendal. The attached map shows the proposed new boundary between Kendal Town Council and Natland Parish Council – Appendix 2 (F) We are recommending this change to ensure that community governance reflects the identities and interests of the community in that area. D) Land adjoining Oxenholme ward We are proposing altering the parish boundary of Kendal Town Council to include properties on an area of land south of Oxenholme off Burton Road (A65). This would form part of the Oxenholme ward of the parish of Kendal. It will also affect one property, Overdale, which will move from Natland Parish Council into the Oxenholme ward of Kendal Town Council. The attached map shows the proposed new boundary between Kendal Town Council and Natland Parish Council – Appendix 2 (F).

Page 154 Page We are recommending this change to ensure that community governance reflects the identities and interests of the community in that area. E) Land adjoining Stonecross ward We are proposing altering the parish boundary of Kendal Town Council to include properties on an area of land south of Kendal at Scroggs Wood. The attached map shows the proposed new boundary between Kendal Town Council and Helsington Parish Council – Appendix 2 (G). We are recommending this change to ensure that community governance reflects the identities and interests of the community in that area. There have been submissions in stage 1 where we have not proposed a recommendation, however we would still like to seek views on them in the second stage of the Community Governance Review.

38 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

A parish for Oxenholme We are not proposing a recommendation to create a new civil parish of Oxenholme. From the submissions received in Stage 1 we did not feel we had enough evidence to make this recommendation. The creation of a new parish on boundaries recently reviewed and altered by the LGBCE would create a greater degree of complexity having, as it would, a significant impact on electoral equality within the wards of Kendal Town Council. However, we would like to use the next consultation stage of the Community Governance Review to explore community governance in Oxenholme in terms of the identities and interests of communities and whether local government there is effective. Suggestions could include a new parish or a new pattern of warding in the current parish. We would welcome any views on this matter. Some of the suggestions included in Kendal Town Council’s submission have not been recommended, for the following reasons:

 The land north of Laurel Gardens is a small triangle of land which would have initially been used for access, there is currently no evidence any building will take place in this parcel of land, therefore we have decided not to make a recommendation to alter the boundary  After investigating the anomaly on Gilthwaiterigg Lane it was discovered that there are no residential properties, according to our records, on the other side of the boundary from their immediate neighbours in the parish of Kendal.

Page 155 Page  Moving the boundary to follow the A591 near Brigsteer was not recommended as it would not affect any residential properties giving no benefit to community governance  Land at Appleby Road and at Kendal Fell quarry was not considered as a recommendation as, at the time of writing, there is no indication that either of these sites will be brought forward for development in the near future.

39 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Kentmere

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Kentmere Parish Meeting 0 68 0 68 0 Kendal Rural

Page 156 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

40 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Killington

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Killington Parish Meeting 0 110 0 96 0 Kendal Rural

Comments Page 157 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

41 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Kirkby Ireleth

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Kirkby Ireleth: Parish Council 2 199 100 199 100 Broughton & Coniston Heathlands (warded)

Kirkby Ireleth: Parish Council 6 574 96 617 103 Broughton & Coniston Lower Quarter (warded) Page 158 Page

Kirkby Ireleth: Parish Council 3 199 67 199 67 Broughton & Coniston Middle Quarter (warded)

Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

We recommend a small change to the naming of the wards in Kirkby Ireleth Parish Council. As there are only three wards we are proposing to drop the “quarter” from those particular wards. We are proposing to name the wards as below:

 Kirkby Ireleth: Lower  Kirkby Ireleth: Central  Kirkby Ireleth: Heathlands However, we are keen to hear suggestions for other, more appropriate, names that better reflect the identities and interests of the community in that area.

42 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Kirkby Lonsdale

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Sedbergh & Kirkby Unwarded Parish Council 9 1,501 167 1,485 165 Lonsdale

Comments Page 159 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes

43 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Lakes

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Parish Council Lakes: Ambleside 6 1,984 331 2,013 336 Ambleside & Grasmere (warded)

Parish Council Lakes: Grasmere 3 506 169 524 175 Ambleside & Grasmere (warded) Page 160 Page

Parish Council Lakes: Langdales 3 273 91 273 91 Ambleside & Grasmere (warded)

Lakes: Rydal & Parish Council 2 193 97 193 97 Ambleside & Grasmere Loughrigg (warded)

Parish Council Lakes: Troutbeck 2 251 126 251 126 Ambleside & Grasmere (warded)

Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes

44 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Lambrigg

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Lambrigg Parish Meeting 0 84 0 84 0 Kendal Rural

Comments Page 161 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

45 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Levens

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 8 876 110 937 118 Bowness & Levens

Page 162 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

46 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Lindale & Newton-in-Cartmel

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023 Lindale & Newton- Parish Council in-Cartmel: High 2 149 75 149 75 Cartmel (warded) Newton

Lindale & Newton- Parish Council 7 524 75 524 75 Cartmel in-Cartmel: Lindale (warded) Page 163 Page

Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes

47 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Longsleddale

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Longsleddale Parish Meeting 0 70 0 70 0 Kendal Rural

Page 164 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes

48 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Lower Allithwaite

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Lower Allithwaite: Parish Council 8 973 122 974 122 Grange Allithwaite (warded)

Lower Allithwaite: Parish Council 5 409 82 459 92 Cartmel Cartmel (warded) Page 165 Page Lower Allithwaite: Parish Council 2 129 65 136 68 Cartmel Upper Holker (warded)

Comments

No comments received regarding this parish during stage one of the review.

49 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Draft recommendations

There are two recommendations we are seeking views on for Lower Allithwaite Parish Council. A) We would like to seek views on reducing the number of councillors on Lower Allithwaite Parish Council to TEN. The split of councillors we are proposing is outlined below:  Allithwaite ward SIX councillors  Cartmel ward THREE councillors  Upper Holker ward ONE councillor Lower Allithwaite Parish Council currently has 15 councillors. It has, in recent years, carried many vacancies. The forecasted electorate is 1,569. In the terms of reference for this Community Governance Review we say we will have regard to government research which shows that a parish council of this size should have between six and twelve parish councillors. We have recommended the number of TEN to ensure a greater electoral equality Page 166 Page between each ward and to provide effective and convenient local governance. B) We would like to seek views on altering the election cycle of Lower Allithwaite Parish Council to ensure that the elections are held on the same cycle as the South Lakeland district election cycles for the wards of Grange and Cartmel. We propose Lower Allithwaite Parish Council holds elections in 2020 to begin the new cycle of elections, with subsequent elections held every four years. As a result of the further electoral review carried out by the LGBCE, Allithwaite Parish Council is part of both Grange and Cartmel district wards. Cartmel is a two-member ward with a fallow year in 2019 (and every four years subsequent to this). Lower Allithwaite Parish Council has its scheduled elections in 2019 and, in the two wards belonging to the Cartmel district ward, is not able to combine these elections and get the cost benefits that combined elections bring. The recommendation means there will be elections in 2019 and 2020, though it also ensures that the benefits afforded by the first recommendation, to reduce councillor numbers, can be realised quickly. This recommendation is made to provide effective and convenient local governance.

50 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Lower Holker

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 7 1,415 203 1,377 197 Cartmel

Comments Page 167 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes

51 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Lowick

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 209 42 209 42 Broughton & Coniston

Page 168 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

52 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Lupton

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 144 29 144 29 Burton & Crooklands

Comments Page 169 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

53 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Mansergh

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Sedbergh & Kirkby Mansergh Parish Meeting 0 120 0 120 0 Lonsdale

Page 170 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes

54 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Middleton

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Sedbergh & Kirkby Middleton Parish Meeting 0 109 0 102 0 Lonsdale

Comments Page 171 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

55 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Milnthorpe

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 9 1,637 182 1,553 173 Arnside & Milnthorpe

Page 172 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

56 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Natland

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 7 804 115 966 138 Kendal South & natland

Comments Page 173 Page Submission received from Natland Parish Council.

Natland Parish Council submitted a comprehensive list of comments which can be read on request – see Appendix 2 (E) and 2 (G).

In summary, and following the draft recommendations below, there comments were:

A) This should remain part of Natland Parish Council due to the separation of the new properties from the current Kendal boundary by a number of older properties with links to the Natland community. Natland Parish Council’s view was that they can provide effective local governance to these electors. B) and C) The comments made suggested the idea of moving the boundary to exclude new development land at Rochester Gardens and Burton Road (A65) from Natland Parish Council had some merit, with some specific concerns around some existing housing. The comments went on to support the potential creation of a new parish council at Oxenholme, and that these areas of development land may be better served in a newly created parish council, rather than in the Oxenholme ward of Kendal Town Council.

Draft recommendations

57 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

We are seeking views on a number of boundary changes to the parish of Natland. These recommendations are made to ensure community governance is reflective of the identities and interests of the community in that area. We acknowledge the comments made by Natland Parish Council and feel that making these recommendations allows for a fuller consultation in phase two of the Community Governance Review, giving us a better basis on which to make final recommendations. A) Land adjoining Stonecross, Heron Hill and Oxenholme wards We are proposing altering the parish boundary of Natland Parish Council so it excludes properties on Natland Mill Beck Lane and The Beeches and small area of land near Watercrook. This would form part of the Stonecross ward of the parish of Kendal. The attached map shows the proposed new boundary between Kendal Town Council and Natland Parish Council. B) Land at Rochester Gardens adjoining Oxenholme ward We are proposing altering the parish boundary of Natland Parish Council to exclude the properties on Rochester Gardens that are currently in Page 174 Page Natland Parish. All properties on Rochester Gardens would form part of the Oxenholme ward of the Parish of Kendal. The attached map shows the proposed new boundary between Kendal Town Council and Natland Parish Council. C) Land adjoining Oxenholme ward We are proposing altering the parish boundary of Natland Parish Council to exclude properties on an area of land south of Oxenholme off Burton Road (A65). This would form part of the Oxenholme ward of the parish of Kendal. It will also affect one property, Overdale, which will move from Natland Parish Council into the Oxenholme ward of Kendal Town Council. The attached map shows the proposed new boundary between Kendal Town Council and Natland Parish Council.

58 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

New Hutton

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 295 59 287 58 Kendal Rural

Comments Page 175 Page Submission received from Parish Council: ‘At its meeting on 22-10-2018, New Hutton Parish Council resolved that no change is needed in its governance’.

Draft recommendations

No changes.

59 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Old Hutton & Holmescales

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 342 69 357 72 Kendal Rural

Page 176 Page Comments Submission from Parish Council: ‘At its meeting on the 18th October 2018, Old Hutton & Holmescales Parish Council resolved that no change is needed in the governance of the parish’.

Draft recommendations

No changes.

60 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Pennington

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Pennington: Parish Council 2 305 153 281 141 Furness Peninsula Pennington (warded)

Pennington: Parish Council 5 1,314 263 1,317 264 Furness Peninsula Swarthmoor (warded) Page 177 Page

Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

61 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Preston Patrick

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 7 338 49 313 45 Burton & Crooklands

Page 178 Page Comments

Submission received from Preston Patrick Parish Council: ‘Preston Patrick Parish Council has no requests for changes to their electoral arrangements’.

Draft recommendations

No changes.

62 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Preston Richard

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 8 1,012 127 1,061 133 Burton & Crooklands

Comments Page 179 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

63 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Satterthwaite

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 176 36 176 36 Broughton & Coniston

Page 180 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

64 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Sedbergh

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Sedbergh & Kirkby Unwarded Parish Council 11 1,914 174 1,983 181 Lonsdale

Comments Page 181 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

65 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Sedgwick

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 6 294 49 283 48 Burton & Crooklands

Page 182 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

66 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Skelsmergh & Scathwaiterigg

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023 Skelsmergh & Parish Council Scathwaiterigg: 2 82 41 78 39 Kendal Rural (warded) Scalthwaiterigg Skelsmergh & Parish Council Scathwaiterigg: 5 251 51 221 45 Kendal Rural (warded) Page 183 Page Skelsmergh

Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

67 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Skelwith

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 111 23 124 25 Ambleside & Grasmere

Comments Page 184 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

We are seeking views on altering the election cycle of Skelwith Parish Council to ensure that the elections are held on the same day as South Lakeland district elections for the ward of Ambleside & Grasmere. We propose Skelwith Parish Council holds elections in 2023 to begin the new cycle of elections, with subsequent elections held every four years. As a result of the further electoral review carried out by the LGBCE, Skelwith Parish Council sat within the ward of Ambleside & Grasmere. Ambleside & Grasmere is a two-member ward with a fallow year in 2020 (and every four years after this). Skelwith Parish Council has its scheduled elections in 2020 and is therefore not able to realise the cost benefits that combining parish and district elections bring. The recommendation means there will be elections for Skelwith Parish Council in 2020, though the councillors will serve a shortened term of three years, with new elections in 2023. These elections will align Skelwith Parish Council elections with Ambleside & Grasmere district ward elections from then on.

68 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Stainton

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 269 54 266 54 Burton & Crooklands

Comments Page 185 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

69 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Staveley-in-Cartmel

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 362 73 349 70 Cartmel

Page 186 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

70 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Staveley-with-Ings

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Staveley-With-Ings: Parish Council 4 361 91 361 91 Kendal Rural Hugill (grouped)

Staveley-With-Ings: Parish Council 4 596 149 616 154 Kendal Rural Nether Staveley (grouped) Page 187 Page Stavely-With-Ings: Parish Council 4 402 101 402 101 Kendal Rural Over Staveley (grouped)

Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

71 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Torver

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 5 105 21 105 21 Broughton & Coniston

Page 188 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

72 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Ulverston

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Town Council Ulverston: Central 3 1,418 473 1,424 475 Ulverston East (warded)

Town Council Ulverston: East 3 1,722 574 1,837 613 Ulverston East (warded) Page 189 Page Town Council Ulverston: North 3 1,618 540 1,618 540 Ulverston West (warded)

Town Council Ulverston: South 3 1,477 493 1,630 544 Ulverston West (warded)

Town Council Ulverston: Town 3 1,444 482 1,333 445 Ulverston East (warded)

Town Council Ulverston: West 3 1,484 495 1,501 501 Ulverston West (warded)

73 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Comments

No comments were received

Draft recommendations

No changes Though we are recommending no changes to the electoral arrangements for Ulverston Town Council, we are aware of wishes to alter the names of the wards to give them a clearer description and better reflect community identities. We would recommend any suggestions in phase two of the consultation.

Page 190 Page

74 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Underbarrow & Bradleyfield

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Unwarded Parish Council 7 307 44 307 44 Bowness & Levens

Comments Page 191 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

75 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Urswick, Bardsea & Stainton

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023 Urswick, Bardsea Parish Council & Stainton: 2 290 145 271 136 Furness Peninsula (warded) Bardsea Urswick, Bardsea Page 192 Page Parish Council & Stainton: 1 190 190 172 172 Furness Peninsula (warded) Stainton

Urswick, Bardsea Parish Council 5 661 133 661 133 Furness Peninsula & Stainton: Urswick (warded)

Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

76 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Whinfell

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Whinfell Parish Meeting 0 143 0 143 0 Kendal Rural

Comments Page 193 Page No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

77 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Whitwell & Selside

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Whitwell & Selside Parish Meeting 0 164 0 160 0 Kendal Rural

Page 194 Page Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

We are seeking views on a recommendation to amalgamate Whitwell and Selside Parish with Fawcett Forest Parish – see Appendix 2 (B). Fawcett Forest parish has a very small electorate and has a recent history of not meeting, leading to the Monitoring Officer at South Lakeland District Council being appointed by auditors to sign off its accounts. Given this, we are proposing to create a new Parish which amalgamates the parish of Fawcett Forest with the parish of Whitwell and Selside. The new parish would have a predicted electorate of 183. We recommend that the new parish is named Selside Parish, and that the parish shall not have a parish council, but a parish meeting.

78 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Windermere

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023

Windermere: Town Council 4 1,291 323 1,529 383 Windermere Applethwaite (warded)

Windermere: Town Council 6 1,757 293 1,858 310 Windermere Bowness North (warded)

Page 195 Page Windermere: Town Council 4 1,335 334 1,346 337 Bowness & Levens Bowness South (warded)

Windermere: Town Council 6 1,632 272 1,632 272 Windermere Windermere Town (warded)

Comments

No comments received regarding this parish during stage one of the review.

79 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Draft recommendations

We would like to seek views on reducing the number of councillors on Windermere Town Council to THIRTEEN. The split of councillors we are proposing is outlined below:

 Applethwaite ward THREE councillors  Bowness North ward FOUR councillors  Bowness South ward THREE councillors  Windermere Town ward THREE councillors Windermere Town Council currently has 20 councillors. It has, in recent years, carried many vacancies and has a history of uncontested elections. The forecasted electorate is 6,346. As per the terms of reference for this Community Governance Review we will have regard to government research which shows that a parish council of this size should have between nine and sixteen parish councillors. We have recommended the number of Page 196 Page THIRTEEN to ensure a greater electoral equality between each ward. For this recommendation to take effect we would have to apply to the Local Government Boundary Commission for England (LGBCE) to make a consequential change. There are no proposals to alter any boundaries, however the electoral arrangements for Windermere Town Council were considered as part of the further electoral review and as such are protected under law from five years after this review. It will be for the LGBCE to decide, following receipt of the proposals, if a reduction in councillor numbers should be made and when it should be implemented.

80 Community Governance Review 2018 -2019 Draft Recommendations Report Appendix 1

Witherslack, Meathop & Ulpha

Predicted Electors per Type of parish Electorate at Predicted number of Ward name (if Number of councillor at council or 3 September electorate electors per District ward applicable) councillors 3 September meeting 2018 2023 councillor 2018 2023 Witherslack, Parish Council Meathop & Ulpha: 2 115 58 115 58 Bowness & Levens (warded) Meathop & Ulpha Witherslack, Parish Council Meathop & Ulpha: 5 393 79 393 79 Bowness & Levens (warded) Page 197 Page Witherslack

Comments

No comments received regarding this parish during stage one of the review.

Draft recommendations

No changes.

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Page 206 Appendix 3

South Lakeland District Council Community Governance Review

Terms of Reference

A review of parishes under the Local Government and Public Involvement in Health Act 2007

Contents BACKGROUND ...... 3 What is a Community Governance Review? ...... 3 Why is South Lakeland District Council undertaking this review? ...... 3 What does a Parish Council do? ...... 4 Who will undertake the review? ...... 4 CONSULTATION ...... 5 How the Council proposes to conduct consultations during the Review ...... 5 Timeline of the Review ...... 5 Review Stages ...... 6 ELECTORAL FORECASTS ...... 7 PARISH AREAS ...... 7 Parishes ...... 7 Boundaries ...... 7 Viability ...... 8 THE GROUPING OF PARISHES...... 8 Introduction ...... 8 General Principles ...... 8 Other Matters – Styles and Parish Councillors ...... 8 NAMES AND STYLES ...... 8 The Naming of Parishes ...... 8 Alternative Styles ...... 9 ELECTORAL ARRANGEMENTS ...... 9 What are electoral arrangements? ...... 9 Parish Council or Parish Meeting? ...... 9 What considerations cover the number of parish councillors? ...... 9 Parish Warding ...... 10 The Number and Boundaries of Parish Wards ...... 10 The Number of Councillors to be Elected for Parish Wards ...... 11

1 South Lakeland District Council Community Governance Review Terms of Reference Version: 1 Classification: NOT PROTECTED Page 207 Appendix 3

Naming of Parish Wards ...... 11 REORGANISATION OF COMMUNITY GOVERNANCE ORDERS AND COMMENCEMENT ...... 11 CONSEQUENTIAL MATTERS ...... 12 General Principles ...... 12 DATE OF PUBLICATION OF THESE TERMS OF REFERENCE ...... 12

2 South Lakeland District Council Community Governance Review Terms of Reference Version: 1 Classification: NOT PROTECTED Page 208 Appendix 3

BACKGROUND

South Lakeland District Council has resolved to undertake a Community Governance Review (CGR) of the whole of the District.

In undertaking the Review, the Council will be guided by Part 4 of the Local Government and Public Involvement in Health Act 2007 (referred to as ‘the 2007 Act’), the relevant parts of the Local Government Act 1972, Guidance on CGRs, issued in accordance with Section 100(4) of the Local Government and Public Involvement in Health Act 2007, by the Department of Communities and Local Government and the Local Government Boundary Commission for England in March 2010. Also the following Regulations which guide, in particular, consequential matters arising from the Review: Local Government (Parishes and Parish Councils) (England) Regulations 2008 (SI2008/625); Local Government Finance (New Parishes) Regulations 2008 (SI2008/626). (The 2007 Act transferred powers to principal councils which previously, under the Local Government Act 1997, had been shared with the Electoral Commission’s Boundary Committee for England.) Section 81 of the Local Government and Public Involvement in Health Act 2007 requires the Council to publish its Terms of Reference in a Review, clearly setting out the focus of the Review. This document will fulfil this requirement.

The Council is also required to have regard to guidance on CGRs issued by the Secretary of State for Communities and Local Government. This guidance was published in March 2010 and has been carefully considered when drawing up the Terms of Reference and timetable.

What is a Community Governance Review?

A CGR is a legal process whereby Councils can consider the following:

 creating, merging, altering or abolishing parishes,  the naming of parishes and the style of any new parishes,  the electoral arrangements for parishes, i.e. the ordinary year of election, council size, the number of councillors to be elected to the council and parish warding,  grouping of parishes under a common parish council or de-grouping parishes.

A CGR must reflect the identities and interests of communities and should take into account the impact of community governance arrangements on community cohesion and the size, population and boundaries of a local community or parish.

Why is South Lakeland District Council undertaking this review?

A CGR provides an opportunity for principal councils to review and make changes to community governance in their areas. Such reviews can be undertaken when there have been changes in population or in reaction to specific, or new local issues to ensure that the community governance for the area continues to be effective and convenient and reflects the identities and interests of the communities involved.

The Government has emphasised that any recommendations made in a CGR should bring about improved community engagement, more cohesive communities, better local democracy and result in improved effective and convenient delivery of local services. The Council will take all these factors into account as part of this review.

3 South Lakeland District Council Community Governance Review Terms of Reference Version: 1 Classification: NOT PROTECTED Page 209 Appendix 3

Government guidance also states that it is good practice to conduct a full CGR at least every 10-15 years and keep the area under review in the meantime.

South Lakeland District Council (SLDC) believes that parish councils play an important role in terms of community empowerment at local level and wishes to ensure that parish governance in the District continues to be robust, representative and able to meet any future challenges. Furthermore, it wishes to ensure that clarity and transparency exist at this level of governance and that the electoral arrangements of all parishes are appropriate, equitable and understood by their electorate.

The Council last undertook a full review during 2013. It received representations from some Parishes in 2014 to consider a further community governance review but had also received notification from the Local Government Boundary Commission (“the Boundary Commission”) for England (LGBCE) that it was to undertake a further electoral review. The advice at that time was not to proceed with a Community Governance Review at the same time as an electoral review. The outcome of the review of the National Park boundaries was also awaited and therefore any further review was considered premature and Council in September 2014 resolved that “the Council does not undertake a further Community Governance Review at this time but that officers look at a timetable for a review to commence by March 2017”.

A further report to Council in March 2017 resolved that it would be appropriate to facilitate a District-wide Community Governance Review after the implementation of the new District Ward boundaries, following the May 2018 elections.

What does a Parish Council do?

Parish Councils are the most local form of government. They collect money from council tax payers (via the District Council) known as a “precept” and this is used to invest in the area to improve services or facilities. Parish Councils can take different forms but usually are made up of local people who stand for election as Parish Councillors to represent their area. They can be the voice of the local community and work with other tiers of government and external organisations to co-ordinate and deliver services and work to improve the quality of life in the area.

The Council wants to ensure that parishes are viable and possess a precept that enables them to actively and effectively promote the well-being of their residents and to contribute to the real provision of services in their areas in an economic and efficient manner.

Who will undertake the review?

As the principal council, the District Council is responsible for undertaking any CGR in its electoral area. The Council will approve the final recommendations before a Community Governance Order is made.

The main contacts for the review are:  Debbie Storr, Director of Policy and Resources  Paul Mountford, Principal Performance and Intelligence Officer  Tom Benson, Electoral Services Manager

4 South Lakeland District Council Community Governance Review Terms of Reference Version: 1 Classification: NOT PROTECTED Page 210 Appendix 3

CONSULTATION

How the Council proposes to conduct consultations during the Review

These terms of reference provide the aims of the review, the legislation that guides the process, and the points that the council views as important in the process.

During the review, the Council will have regard to any local residents’ associations, community forums or area committees, or other such community representation or engagement, that exist who make a distinct contribution to the community of that area.

Before making any recommendations or publishing final proposals, the council will take full account of the views of local people and will comply with the statutory consultative requirements by:

 Consulting local government electors in the Parishes,  Consulting any other person or body (including other relevant local authorities and parish councils) which appears to the council to have an interest in the review,  Taking into account any representations received in connection with the review,  Notifying consultees of the outcome of the review,  Publishing all decisions taken and the reasons for such decisions.

Information about each stage of the review will be published on the Council’s website with key documents available to view at South Lakeland House, Kendal, and the Town Hall, Ulverston. Press releases or adverts will be published where appropriate. The Council will also make use of the online consultation database to enable comments to be made online as well as in writing.

Timeline of the Review

Under legislation a CGR must be completed within a 12 month period from the day on which it commences. The CGR begins when the council publishes its terms of reference and concludes when it publishes the recommendations made in the review.

The stages for the review are shown below. A timeline and task list can also be view here.

5 South Lakeland District Council Community Governance Review Terms of Reference Version: 1 Classification: NOT PROTECTED Page 211 Appendix 3

Review Stages

Stage Action Timescale Dates Commencement Terms of Reference are 24th July 2018 – published and stakeholders Full Council notified with clear definition Meeting. of remit of review. Preliminary Local briefings and One Month August 2018 Stage meetings. Stage One Initial submissions invited Three Months September – from stakeholders on future November 2018 arrangements under terms of reference. Stage Two Considerations of Two Months December – submissions received. January 2019 Draft recommendations prepared. Draft recommendations to 18th December be considered by council. 2018 – Full Council Meeting Stage Three Draft recommendations Three Months March – May 2019 published and stakeholders notified. Further consultation with stakeholders. Stage Four Consideration of final Two Months June – July 2019 submissions received. Final recommendations prepared. Final recommendations published concluding the review. Final recommendations to 23rd July 2019 – be considered by Council Full Council and decision made on arrangements with resolution to make a Re- organisation Order. Re-Organisation order One Month Later August 2019 made.

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ELECTORAL FORECASTS

When considering the electoral arrangements of the parishes in the area, the Council must consider any likely future change in the number or distribution of electors within five years from the day the review commences.

Electorate forecasts have been prepared using all available information. Appendix 2 uses the same Electorate Forecasting Methodology that was applied as part of the Local Government Boundary Review. This methodology uses:

 the 2015 electoral figures and the previous five year electorate figures at Polling District level,  the number of new dwellings built in the five years prior to 2015 at Polling District level,  the total number of dwellings in 2015 at Polling District level,  the number of new dwellings forecasted to be built in the five years following 2015 at Polling District level.

Officers are recommending that the 2015 data set be applied to this review, as it was used to establish the new wards and is the most accurate.

PARISH AREAS

This part of a review covers the creation of new parishes, the alteration of parish boundaries and the abolition of existing parishes. Legislation requires that the Council must ensure that community governance within the area:

 reflects the identities and interests of the communities in the area,  is effective and convenient and takes into account any other arrangements for the purposes of community representation or community engagement in the area.

Parishes

The Council considers that parishes should reflect distinctive and recognisable communities of interest, with their own sense of identity; ensuring that electors are able to clearly identify with the parish in which they are resident, creating a common interest in parish affairs which will, in turn, encourage participation in parish elections.

Boundaries

The Council considers that parish boundaries reflect the areas between communities with low populations or pronounced physical barriers such as rivers and mountains or man-made features such as railways or motorways. These barriers can result in the residents on either side having little in common with each other and this possibility will be considered. ‘Natural’ settlements or settlements as they are defined in the Local Plan should not, in normal circumstances, be partitioned by parish boundaries. If any changes are required to boundaries, the Council will endeavour to select boundaries that are, and are likely to remain, easily identifiable.

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Viability

The Council wishes to ensure that parishes are viable and that their precept enables them to actively and effectively promote the well-being of their residents and to contribute to the real provision of services in their areas in an economic and efficient manner. This review aims to ensure that the parishes within South Lakeland reflect community identity and interest and are viable as administrative units.

THE GROUPING OF PARISHES Introduction

Grouping orders are permitted under Section 11 of the Local Government Act 1972 and parishes grouped can be seen as a working alliance with the electors of each of the grouped parishes electing a designated number of councillors to the council. Grouping parish councils can be effective in ensuring parish government where small parishes are not viable on their own but allows their separate community identity to continue.

General Principles

The Council notes that, under the Act, smaller new parishes of less than 150 electors will be unable to establish their own parish council but that it may be possible to group some parishes together to create a grouped parish council without changing parish boundaries, creating new parishes or abolishing very small parishes, which still reflect community identity, all of which may go against the wishes of the residents of the affected areas.

Other Matters – Styles and Parish Councillors

If a Reorganisation Order intends to form a group, add a parish to an existing group of parishes or de-group a parish or group, legislation permits the provision of alternative styles but, if a parish is removed from a group it must retain the style it had in the group until the parish council or meeting resolved to change the style.

Where a group is to be formed by a Reorganisation Order, add a parish to an existing group of parishes or de-group a parish or group, the Council will take into account equitability when considering the number of councillors to be elected by each parish.

NAMES AND STYLES The Naming of Parishes

With regard to the names of parishes, the Council will endeavour to reflect existing local or historic place-names and will consider any ward names proposed by local interested parties.

The Council will be mindful of Section 76 of the Local Government Act 1972 with regard to the naming of parishes and subsequent notification along with Sections 87 and 88 of the 2007 Act and relevant guidance.

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Alternative Styles

Alternative styles for parishes were introduced by the 2007 Act which could replace the ‘parish’ style. However, only one of three styles can be adopted, i.e. community, neighbourhood or village. In addition, the style of ‘town’ is still available to a parish but for as long as a parish has an alternative style it will not be able to also have the status of a town and vice versa.

If an existing parish is under review, the Council will make recommendations as to whether the geographical name of the parish should change but it will be for the parish council or parish meeting to resolve whether the parish should have one of the alternative styles.

If a new parish is to be created, the Council would make recommendations as to the geographical name of the new parish and whether or not it should have one of the alternative styles.

ELECTORAL ARRANGEMENTS What are electoral arrangements?

The ordinary year of election is every four years as stated in the Local Government Act 1972. However, where the electorate cycle for a district council is in thirds (as in South Lakeland) the parish electoral cycle should coincide with the district cycle so the costs of elections can be shared.

Parish Council or Parish Meeting?

The Council has a duty to create, or not, a parish council and must follow the guidance laid down in legislation as follows:

 where the number of electors is 1,000 or more a parish council must be created,  where the number of electors is 151-999 a parish council may be created, with a parish meeting being the alternative form of governance,  where the number of electors is 150 or fewer a parish council is not created.

What considerations cover the number of parish councillors?

The Government’s advice is that, as an important demographic principle, each person’s vote should be of equal weight so far as possible, having regard to other legitimate competing factors, when electing parish councillors. This Council agrees with this principle and will take this into account during the review also having regard to current and historical factors, along with the fact that there should be not less than five councillors for each parish council. There is no maximum number and no rules relating to the allocations of councillors. However, each parish grouped under a common parish council must have at least one parish councillor.

Legislation dictates that the Council must have regard to the following factors when considering the number of councillors to be elected for a parish:

 the number of local government electors for the parish,  any change in that number which is likely to occur in the period of five years beginning with the day when the review starts.

9 South Lakeland District Council Community Governance Review Terms of Reference Version: 1 Classification: NOT PROTECTED Page 215 Appendix 3

The table below is research guidance on the levels of representation for parish councils.

Electorate Councillor Allocation Less than 500 5 – 8 501-2,500 6 – 12 2,501-10,000 9 – 16 10,001 – 20,000 13 – 27 Greater than 20,000 13 – 31

The Government’s guidance is that each area should be considered on its own merits, having regard to population, geography and the pattern of communities. Therefore, the Council will pay particular attention to existing levels of representation, the overall pattern of existing council sizes which have stood the test of time and the take-up of seats at elections when considering this aspect. However, the Council acknowledges that there are exceptions to every ‘rule’ and each area will be considered individually.

Parish Warding

The Council is required to consider the following points when deliberating whether a parish should be divided into wards for the purposes of elections:

• whether the number or distribution of the local government electors for the parish would make a single election of councillors impracticable or inconvenient, • whether it is desirable that any area, or areas, of the parish should be separately represented on the council.

The Government’s guidance is that warding of parishes may not be justified for largely rural areas based predominantly on a single centrally-located village. Conversely, warding may be appropriate where a parish encompasses a number of villages with separate identities or where there has been urban overspill at the edge of a town into a parish.

The Council will be mindful of community identities in both rural and urban parishes, with the latter possibly more likely to benefit from warding where community identify focuses on an area such as a housing estate, and will endeavour to ensure that any warding arrangements reflect local circumstances and are clearly and readily understood by the electorate.

It should be noted that ward elections should have merit, not only should they meet the two tests given above, but should also be in the interests of effective and convenient local government. They should not be wasteful of a parish’s resources.

The Number and Boundaries of Parish Wards

In respect of the number and boundaries of any parish wards, the Council will take into account the criteria stated above, in particular the community identity and interests in an area, but also whether any particular ties or links might be broken by the drawing of particular ward boundaries. Parish wards must be easily identifiable and remain so in the future.

Any recommendations which are intended to reflect community identities and links will be supported by relevant evidence.

Although the Government’s guidance is that district wards and county electoral divisions should not split an unwarded parish and that no parish ward should be split by such a 10 South Lakeland District Council Community Governance Review Terms of Reference Version: 1 Classification: NOT PROTECTED Page 216 Appendix 3 boundary, the relevant legal provisions do not apply to reviews of parish electoral arrangements. However, the Council will bear this in mind as requested by the LGBCE.

The Number of Councillors to be Elected for Parish Wards

The Council will take into account the following when considering the size and boundaries of any parish wards and the number of councillors to be elected for each ward:

 the number of local government electors for the parish,  any change in the number, or distribution, of the local government electors which is likely to occur in the period of five years beginning with the day the review commences.

The guidance advises that as an important democratic principle, each person’s vote should be of equal weight so far as possible, having regard to other legitimated competing factors, when it comes to the election of councillors. Although there is no provision in legislation that each parish councillor should represent, as near as possible, the same number of electors, the Council considers that it is not in the interests of effective and convenient local government, either for voters or councillors, to have significant differences in levels of representation between different parish wards.

Likewise, the Council wishes to avoid the risk that, where one or more wards of a parish are over-represented by councillors, the residents of those wards (and their councillors) could be perceived as having more influence than others on the council. Consequently, during the review, the Council will show the ratios of electors to councillors that would result from any proposals.

The same principle of equitability will apply when consideration is given to the number of councillors to be elected to a common parish council by each parish within a grouping arrangement.

Naming of Parish Wards With regard to the names of parish wards, the Council will endeavour to reflect existing local or historic place-names and will consider any ward names proposed by local interested parties.

REORGANISATION OF COMMUNITY GOVERNANCE ORDERS AND COMMENCEMENT

The review will be completed when the Council adopts the Reorganisation of Community Governance Order. Copies of the Order, maps detailing the effects of the Order, and the documents setting out the reasons for all decisions made whether for change or no change, will be deposited and published in the same manner as at each stage of the review.

In accordance with the Government’s guidance, the Council will issue maps to illustrate each recommendation at a scale not less than 1:10,000 wherever possible. These maps will be deposited with the Secretary of State at the Department of Communities and Local Government and at the Council’s offices at South Lakeland House, Kendal. In accordance with regulations. Prints will also be supplied, , to Ordnance Survey, the Registrar General, the Land Registry, the Valuation Office Agency, the Boundary Commission for England and the Local Government Boundary Commission for England.

11 South Lakeland District Council Community Governance Review Terms of Reference Version: 1 Classification: NOT PROTECTED Page 217 Appendix 3

The Order is scheduled to take effect on 1 September 2019 but any changes to electoral arrangements for existing parishes will come into force at the next ordinary elections for the parish council.

However, if these elections are not for some time, the Council may resolve to modify or exclude the application of Sections 16(3) and 90 of the Local Government Act 1972 to provide for an earlier election with councillors serving a shortened term of office to allow the parish electoral cycle to return to that of the District.

CONSEQUENTIAL MATTERS General Principles

The Council notes that a Reorganisation Order may cover any consequential matters that appear to the Council to be necessary or proper to give effect to the Order, including:

 the transfer and management or custody of property,

 the setting of precepts for new parishes,

 provision with respect to the transfer of any functions, property, rights and liabilities,

 provision for the transfer of staff, compensation for loss of office, pensions and other staffing matters.

In these matters, the Council will be guided by regulations that have been issued following the 2007 Act including those regarding the transfer of property, rights and liabilities which require that any apportionments shall use the population of the area as estimated by the proper officer of the Council as an appropriate proportion. The Council also notes Regulation 3 of the Local Government Finance (New Parishes) Regulations 2008 regarding the establishment of a precept for a new parish and their requirements.

Where any such consequential matters affect Cumbria County Council, the Council will also seek the views of that council with regard to alterations to electoral division boundaries in accordance with the Government’s guidance.

DATE OF PUBLICATION OF THESE TERMS OF REFERENCE

These Terms of Reference will be published on 24 July 2018.

12 South Lakeland District Council Community Governance Review Terms of Reference Version: 1 Classification: NOT PROTECTED Page 218 Item No.11

South Lakeland District Council Council Tuesday, 18 December 2018 Equality, Diversity and Inclusion Strategy

Portfolio: Councillor Giles Archibald - Leader of the Council Report from: Debbie Storr - Director of Policy and Resources (Monitoring Officer) Report Author: Paul Mountford - Principal Performance and Intelligence Officer Wards: (All Wards); Forward Plan: Budget and Policy Framework Decision included in the Forward Plan as published on 10 August 2018

1.0 Expected Outcome 1.1 The expected outcome is that the South Lakeland District Council (SLDC) Equality, Diversity and Inclusion (EDI) Strategy 2019-22 is adopted by Council. The Strategy will set new EDI objectives to improve accessibility and inclusivity at SLDC in compliance with the Public Sector Equality Duty. 2.0 Recommendation 2.1 It is recommended that Council adopt the South Lakeland Equality, Diversity and Inclusion Strategy 2019-22 to replace the existing Equality Scheme within the Council’s Policy Framework. 3.0 Background and Proposals 3.1 The South Lakeland District Council EDI Strategy 2019-22 (draft enclosed as Appendix 1 to this report) sets out how South Lakeland District Council (the Council) is meeting the requirements of the public sector equality duty under the Equality Act 2010. This includes setting out specific equality objectives, as well as containing useful statistics about our communities to illustrate the different needs of people in South Lakeland. 3.2 The Council first adopted an Equality Scheme in 2006. Since then there have been various revisions to ensure the scheme meets current legislation. 3.3 The Council last updated its Equality Scheme and published objectives in 2016. The Equality Act 2010 (Specific Duties) Regulations 2011, provides that public bodies must publish equality objectives at least every four years. For this reason, and to be in line with the Customer Connect Programme changes, it is proposed that new equality objectives for 2019-2022 are adopted. 3.4 The Strategy includes definitions of the terms Equality, Diversity, and Inclusion. It is recommended to adopt this updated terminology into the title of the new document, and for this document to supersede the current Equality Scheme 2016-19 which sits within the Council’s Policy Framework.

Page 219 3.5 It is proposed that the EDI Strategy will have its performance reviewed annually by the Overview and Scrutiny Committee. This will make it a dynamic document allowing responses to emerging needs, such as changing population or rates of digital inclusion. 4.0 Consultation 4.1 An earlier draft EDI Strategy has been taken to the South Lakeland Equality and Diversity Partnership which is composed of interested representatives from the public and voluntary sectors around EDI. 4.2 The draft EDI Strategy 2019-2022 was endorsed for recommendation to Council by the Council’s Overview and Scrutiny Committee on 26 October 2018 and Cabinet on 28 November 2018. 5.0 Alternative Options 5.1 No credible alternative to publishing new equality objectives to comply with the Equality Act 2010 (Specific Duties) Regulations 2011. The consequences of not approving new objectives would be the increased risk of legal challenge. 6.0 Links to Council Priorities 6.1 This policy update is a policy framework decision that supports good performance with the Council Plan. 6.2 The EDI Strategy 2019-22 links to the health and well-being section of the Council Plan. 7.0 Implications Financial, Resources and Procurement 7.1 The financial implication for the EDI Strategy objective 2 action ‘promote the installation of Changing Places facilities in the community and incorporate where we can within our own buildings’. This may be partly accommodated within a capital budget of £50k in 2018/19 identified for Disabled Toilet Improvements and further growth may be required for additional identified funding. 7.2 The financial implications for other EDI Strategy objectives will be included within business as usual or accommodated by existing resources. If additional growth is identified this will be considered in future budgets. Human Resources 7.3 Employee equality statistics, titled Workplace Profile, are published on the website as part of the public sector equality duty. A link to the statistics is provided in the EDI Strategy 2019-22. Legal 7.4 By producing and publishing an EDI Strategy with objectives, the Council will comply with the general equality duty and the public sector equality duty as set out in the Equality Act 2010. Health, Social, Economic and Environmental 7.5 A Health, Social, Economic and Environmental Impact Assessment has been completed and attached at appendix 2. 7.6 Summary of health, social, economic and environmental impacts: more accessible and inclusive working environment at SLDC, improved digital accessibility for communications using digital services, EDI training opportunities for all SLDC employees and members.

Page 220 Equality and Diversity 7.7 An Equality Impact Analysis has not been completed because by its very nature the EDI Strategy is drafted with a view to having a positive impact on equality and diversity. Risk Risk Consequence Controls required EDI Strategy and new equality Risk of external legal EDI Strategy is objectives not adopted. challenge, not meeting a implemented, managed statutory requirement and and monitored. potential impact on the Council’s reputation.

Contact Officers Paul Mountford, Principal Performance and Intelligence Officer, 01539 793271 [email protected] Appendices Attached to this Report Appendix No. Name of Appendix 1 South Lakeland District Council Equality, Diversity and Inclusion Strategy 2019-2022 (draft) 2 Health, Social, Economic and Environmental Impact Assessment

Background Documents Available Name of Background document Where it is available South Lakeland District Council http://democracy.southlakeland.gov.uk/ieDecisionDetail Equality Scheme 2016-19 s.aspx?ID=2902

Tracking Information Signed off by Date sent Legal Services 01/10/2018 Section 151 Officer 01/10/2018 Monitoring Officer 01/10/2018 CMT 11/10/2018

Circulated to Date sent Assistant Director 01/10/2018 Human Resources Manager 01/10/2018 Communications Team 01/10/2018 Leader 09/10/2018 Committee Chairman N/A Portfolio Holder 09/10/2018 Ward Councillor(s) N/A Committee 26/10/2018 Executive (Cabinet) 28/11/2018 Council 18/12/2018

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Appendix 1

South Lakeland District Council: Equality, Diversity and Inclusion Strategy 2019 – 2022

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Contents South Lakeland District Council: Equality, Diversity and Inclusion Strategy 2019 – 2022 ...... 1 1. Equality Diversity and Inclusion (EDI) Strategy ...... 3 Protected Characteristics ...... 3 EDI Objectives ...... 4 Objective 1 – Make our services accessible to all ...... 4 Objective 2 – Make our buildings accessible to all ...... 4 Objective 3 – Become more inclusive ...... 4 Objective 4 – Improve our understanding of EDI ...... 4 2. South Lakeland in figures ...... 6 Age ...... 6 Disability ...... 6 Race ...... 6 Religion and Belief ...... 7 Gender ...... 7 SLDC Employee and Member information ...... 7 Contact us ...... 8

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1. Equality Diversity and Inclusion (EDI) Strategy We define ‘Equality’ as treating all people fairly. We aim to create an environment where everyone can participate and has an equal opportunity to fulfil their potential. We define ‘Diversity’ as recognising that everyone is different, whether these differences are visible or non-visible. We will respect, value and celebrate these differences. We define ‘Inclusion’ as developing approaches to make all people feel welcomed and valued in South Lakeland. We will proactively challenge discrimination and exclusion and eliminate barriers. South Lakeland District Council (SLDC), in line with the Equality Act (2010), will:

• Eliminate unlawful discrimination, harassment and victimisation and other conduct prohibited by the Act. • Advance equality of opportunity between people who share a protected characteristic and those who do not. • Foster good relations between people who share a protected characteristic and those who do not. This EDI Strategy will be reviewed annually by the SLDC Overview and Scrutiny Committee to measure our performance against the EDI objectives. Protected Characteristics • Age • Disability • Gender reassignment • Marriage and civil partnership • Pregnancy and maternity • Race • Religion or belief • Sex • Sexual orientation We also include “rurality” and “socio-economic disadvantage” as additional categories. Although socio-economic status and rurality are not recognised protected characteristics under the Equality Act, people on low incomes or in rural isolation are highly likely to be affected by services that are intended to support vulnerable people. More information about the Protected Characteristics can be found on the Equality and Human Rights Commission website: https://www.equalityhumanrights.com/en/equality-act/protected-characteristics

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EDI Objectives Objective 1 – Make our services accessible to all We will improve our digital accessibility while maintaining alternative channels to accommodate customer needs. How will we achieve this? • create a Digital Accessibility Policy – this will include roll-out of staff training, integrating digital accessibility into procurement exercises, conforming to web accessibility framework standards, and providing assistive technology to internal and external customers as required; • include accessibility in our Digital Strategy; and • consultation with customers – including groups representing Protected Characteristics - throughout Customer Connect service re-design, and maintaining customer feedback group following the programme finish in 2020. Objective 2 – Make our buildings accessible to all We will improve the physical accessibility of our buildings. How will we achieve this? • complete and publish an Equality Impact Assessment (EIA) for the Places project in the Customer Connect programme; • consult with customers and staff - including groups representing Protected Characteristics – on potential works on our buildings and make necessary changes to improve accessibility through the Customer Connect Programme; • provide assistive technology to internal and external customers as required; and • promote the installation of Changing Places facilities in the community and incorporate where we can within our own public buildings. Objective 3 – Become more inclusive We will support a diverse workforce and continuously aim to improve our inclusive environment for customers, staff and members. How will we achieve this? • complete and publish EIA for the People project in the Customer Connect programme; • provide assistive technology as reasonable adjustments to internal and external customers as required; and • maintain Disability Confident Employer status Objective 4 – Improve our understanding of EDI We will improve the gathering and use of EDI data on customers, staff and members, to better integrate EDI into our decision making and we will promote awareness of EDI issues. How will we achieve this? • maintain consultation list of EDI contacts with annual review to update; • include EDI monitoring in Quality of Life and Staff Satisfaction Questionnaires; • produce EIAs for all relevant decisions and key policies (e.g. Council Plan, Local Plan) and publish these on our website. • train all staff and members on understanding EDI and best practice for EIAs; and

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• publish workplace profile and gender pay gap reports annually on our website. • implement EDI communications plan to promote key dates and events from national and local calendar. • look to participate in and support projects and partnerships focusing on advancing EDI. • promote EDI in our partnership working, and include EDI requirements in our procurement processes.

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2. South Lakeland in figures The below data is the most up-to-date available at District level. Data is not available to breakdown population statisitcs for all Protected Characteristics. Population - In mid-2017 South Lakeland’s resident population was estimated to be 104,3211. In 2016 18 million visitors came to South Lakeland, of which 85% were day trippers and 15% were staying visitors2. Over the last ten years the population of the district has increased by 355 residents1. Age In mid-2017 it was estimated that 13.8% of the population of South Lakeland are aged 0-14 years of age, 58.5% are 15-64 years of age, and 27.7% are aged over 651. Children and young people It is projected that numbers of 0-14 year olds in South Lakeland will decrease from 2017 onwards to 20411. Between 2017 and 2041, the number of young people aged 0-14 is forecast to fall by 12.0%1. Working age In South Lakeland the number of 15-64 year olds are projected to decrease by 8,400 (-14%) to 20411. South Lakeland has the lowest proportion of young and working age people in the county and both are in decline. Since mid-2007 the greatest percentage decrease occurred in the 30-44 age groups (-23.9%)1. Older people In South Lakeland numbers of residents aged 65+ are projected to increase by 8,300 persons (+28.4%) to 2041. Since mid-2007 the greatest percentage increase occurred in the 90+ age group (+140%)1. Disability 18.8% of the population have a long-term health problem or disability, while 4.6% describe their general health as bad or very bad3. Race 95.6% of South Lakeland residents are White British, 2.8% are White Other, 0.6% are mixed race, 0.8% are Asian, 0.2% are Black, and 0.1% are from other ethnic groups4. Of Cumbria’s six districts, South Lakeland has the second highest proportion of residents from BAME groups (4.4%).

1 Office for National Statistics (ONS) 2 STEAM Research 3 www.localhealth.org.uk/assets/Documents/Metadata_July2014.pdf

4Census 2011

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Religion and Belief 68% of residents are Christian, 23% have no religion. 0.4% are Buddhist, 0.2% are Muslim, 0.1% are Hindu, 0.1% are Jewish and 0.4% are members of other religionsError! Bookmark not defined.. Gender 49% of residents are male, 51% are female1. There is a gender pay imbalance in South Lakeland, the median gross weekly earnings of a male in full time employment is £579, whereas for a female in full time employment the figure is £4792. SLDC Employee and Member information As of 1 April 2017, SLDC employs 422 staff and has 51 councillors. The workplace profile on our website highlights the employee profile of SLDC compared with South Lakeland as a district: https://www.southlakeland.gov.uk/your-council/equality-and-diversity/our-workforce-profile/

1 Office for National Statistics (ONS) 2 Annual Survey of Hours and Earnings (ASHE) 3Census 2011

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Contact us We welcome your comments on the EDI Strategy and these will be taken into account for future versions. Please visit the EDI page on our website to find out more information, or get in touch using the contact details below: https://www.southlakeland.gov.uk/your-council/equality-and-diversity/ Equality and Diversity Lead Officer: [email protected] 01539 733333 Senior Officer Equality Champion: HR Manager Leader and Promoting South Lakeland: Portfolio Holder

Page 230 Appendix 2

South Lakeland District Council

Health, Social, Economic & Environmental Impact Guidance & Proforma

Project, policy or programme: Health Impacts Potential Impacts Positive No Negative Not Comments Recommendations impact sure Please tick the appropriate box Environmental Conditions Air quality 

Water quality and  pollution

Built environment 

Natural environment  and biodiversity

Energy  consumption/efficiency

Noise 

Transport 

Recycling 

Food production 

Social and Economic Factors Employment  Potential increased employment opportunities at SLDC for people with shared protected characteristics – improved accessibility, more inclusive environment. Income 

Poverty 

Education, skills and  Training for all SLDC training employees and elected members on Equality, Diversity

Page 231 Project, policy or programme: Health Impacts Potential Impacts Positive No Negative Not Comments Recommendations impact sure Please tick the appropriate box and Inclusion. Housing 

Crime 

Work environment  Improved physical and digital accessibility for SLDC employees. Factors that impact a person’s ability to improve their own health and wellbeing Nutrition and diet 

Physical activity 

Alcohol 

Drugs 

Risk taking behaviour 

Smoking 

Loneliness and  isolation

Access to services, spaces or social opportunities that impact health Communication  Digital accessibility methods policy will improve communication both internally and externally at SLDC for those using digital services. Active travel 

Access to leisure 

Access to culture 

Access to green  spaces

Page 232 Item No.12

South Lakeland District Council Council Tuesday, 18 December 2018 Governance Update

Portfolio: Cllr Stephen Coleman – Chairman of Audit Committee Report from: Shelagh McGregor - Assistant Director Resources (S.151 Officer) Report Author: Helen Smith – Financial Services Manager Wards: (All Wards) Forward Plan: Not applicable

1.0 Expected Outcome 1.1 This report is presented to consider the results of the review of the Council’s Local Code of Governance and Constitution carried out by Audit Committee. 2.0 Recommendation 2.1 It is recommended that Council:- (1) notes the review of the Local Code of Governance and approves the proposed changes set out in Appendix 1; and (2) notes the review of the Constitution and approves the proposed changes set out in Appendix 2 and 3. 3.0 Background and Proposals 3.1 Local authorities should have in place an effective system of internal control (SIC). For South Lakeland District the key features of this system are described within the Local Code of Governance. Under the Accounts and Audit Regulations 2015 the Council is required to review the effectiveness of internal controls annually and to report this through an Annual Governance Statement (AGS). This is done alongside the Statement of Accounts and must be prepared in accordance with proper practices. 3.2 Audit Committee considered proposed amendments to the Local Code of Governance on 5 December 2018 to ensure the Code meets best practice. The proposed revised Local Code of Governance is set out at Appendix 1. The majority of amendments are to include behaviours and actions under all principles to which they apply. As a result some behaviours and actions are duplicated. One additional measure has been added: D14: consider social value when preparing service plans, considering procurement and commissioning and monitoring performance. Other amendments reflect changes to standards and guidance. 3.3 The same meeting of Audit Committee considered proposed changes to the Council’s Financial Procedure Rules and Contract Procedure Rules which are part of

Page 233 the Council’s Constitution. The proposed rules are set out at Appendix 2 and Appendix 3. The main changes are to: a) To extend the current virement rules for revenue budgets to capital programme and reserves; b) To clarify terminology and update references to other documents; c) To propose more delegation around the use of reserves. Under the current arrangements approval to use reserves is needed from Council as part of the final accounts process but there is not a Council meeting between the finalisation of the reserve movements and the approval of the accounts by Audit Committee; d) To clarify that the Monitoring Officer can agree it is not expedient to comply with certain contract requirements, such as signing under seal or the use of Council policies. This reflects the growing use of framework agreements where the terms and conditions to be used have already been agreed and will give the Council appropriate protection; e) To remove references to paper tenders: all tender documents are now submitted electronically. 3.4 The changes proposed will apply from the date of Council approval for the remainder of the current financial year and subsequent years. 3.5 Further amendment of the Constitution will be required to reflect changes to the Leadership structure and other changes to job titles. These changes will be included in the Monitoring Officer’s review of the Constitution which is due to the March meeting of Council. 4.0 Consultation 4.1 The Monitoring Officer, Solicitor to the Council and Procurement and Contracts Manager were consulted over the proposed changes to the Contract Procedure Rules. All Operational Managers were requested to submit proposals for changes to make processes more efficient. Audit Committee considered the proposals on 5 December 2018. 5.0 Alternative Options 5.1 It is good practice to regularly review the Constitution. The recommended changes give a balance between operational efficiency and strong internal controls. 6.0 Links to Council Priorities 6.1 Being efficient and transparent in our dealings with the public. 7.0 Implications Financial, Resources and Procurement 7.1 This report has no direct financial implications. The proposals clarify the existing rules and will increase efficiency through reduced need to produce reports for minor decisions. Human Resources 7.2 There are no direct Human Resources implications of this report. Legal 7.3 There are no direct legal implications of this report. Health, Social, Economic and Environmental 7.4 Have you completed a Health, Social, Economic and Environmental Impact Assessment? No

Page 234 7.5 If you have not completed an Impact Assessment, please explain your reasons: The update of the Local Code of Governance and Constitution have no direct HSEE implications. Equality and Diversity 7.6 Have you completed an Equality Impact Analysis? No 7.8 If you have not completed an Impact Assessment, please explain your reasons: The update of the finance and contract procedure rules have no direct equality and diversity impacts. Risk Risk Consequence Controls required Failure to review the Potential failings in the A thorough review and Constitution internal controls contained assessment based on within the Constitution. external guidance. Failure to have effective delegation to officers in place Potential delays in decision making.

Contact Officers Helen Smith, Financial Services Manager, 01539 793147, [email protected] Appendices Attached to this Report Appendix No. Name of Appendix 1 Proposed Local Code of Governance 2 Recommended Financial Procedure Rules 3 Recommended Contract Procedure Rules

Background Documents Available

Name of Background document Where it is available Council Constitution

Tracking Information Signed off by Date sent Legal Services 22/11/18 Section 151 Officer 22/11/18 Monitoring Officer 22/11/18 SMT 22/11/18

Circulated to Date sent Assistant Director 22/11/18 Human Resources Manager N/A Communications Team N/A Leader N/A Committee Chairman N/A Portfolio Holder N/A Ward Councillor(s) N/A Committee 5/12/18

Page 235 Circulated to Date sent Executive (Cabinet) N/A Council 28/12/18

Page 236 Appendix 1

The purpose of this appendix is to set the Local Code of Governance for 2018/19.

South Lakeland District Council Local Code of Governance December 2018

Contents

Introduction

Principle A – Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law

Principle B – Ensuring openness and comprehensive stakeholder engagement

Principle C – Defining outcomes in terms of sustainable economic, social, and environmental benefits

Principle D – Determining the interventions necessary to optimise the achievement of the intended outcomes

Principle E – Developing the entity’s capacity, including the capability of its leadership and the individuals within it

Principle F – Managing risks and performance through robust internal control and strong public financial management

Principle G – Implementing good practices in transparency, reporting, and audit to deliver effective accountability

Annual Review of Corporate Governance

Introduction

This Local Code of Governance has been developed from a framework document produced by The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Society of Local Authority Chief Executives and Senior Managers (SOLACE). The CIPFA/SOLACE Delivering Good Governance in Local Government: Framework (2016) defines governance as follows:

“Governance comprises the arrangements put in place to ensure that the intended outcomes for stakeholders are defined and achieved.

1

Page 237 To deliver good governance in the public sector, both governing bodies and individuals working for public sector entities must try to achieve their entity’s objectives while acting in the public interest at all times.

Acting in the public interest implies primary consideration of the benefits for society, which should result in positive outcomes for service users and other stakeholders.”

The framework contains seven principles. These are as follows:

Principle A – Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law

Principle B – Ensuring openness and comprehensive stakeholder engagement

Principle C – Defining outcomes in terms of sustainable economic, social, and environmental benefits

Principle D – Determining the interventions necessary to optimise the achievement of the intended outcomes

Principle E – Developing the entity’s capacity, including the capability of its leadership and the individuals within it

Principle F – Managing risks and performance through robust internal control and strong public financial management

Principle G – Implementing good practices in transparency, reporting, and audit to deliver effective accountability

The Council is committed to these principles and has adopted them into its Local Code. The remainder of this document sets out the local arrangements that support the achievement of these principles. The Council will review the effectiveness of these arrangements against the Framework on an annual basis.

The Council commits itself to the following principles:

Principle A Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law

Local government organisations are accountable not only for how much they spend, but also for how they use the resources under their stewardship. This includes accountability for outputs, both positive and negative, and for the outcomes they have achieved. In addition, they have an overarching responsibility to serve the public interest in adhering to the requirements of legislation and government policies. It is essential that, as a whole, they can demonstrate the appropriateness of all their actions across all activities and have mechanisms in place to encourage and enforce adherence to ethical values and to respect the rule of law. 2

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In pursuance of this principle we will:

A1. make a Chief Executive (or equivalent) responsible and accountable to the authority for all aspects of operational management; A2. make a senior officer (the Section 151 Officer) responsible to the authority for ensuring that appropriate advice is given on all financial matters, for keeping proper financial records and accounts, and for maintaining an effective system of internal financial control; A3. appoint a professionally qualified and experienced Chief Finance Officer (Section 151 Officer), who will lead the promotion and delivery of good financial management, safeguarding public money and ensuring appropriate, economic, efficient and effective use of funds, together with professional accountability for finance staff throughout the Council with regard to CIPFA’s Statement on the Role of the Chief Financial Officer in Local Government (2016); A4. make a senior officer (the Monitoring Officer) responsible to the authority for ensuring that agreed procedures are followed and that all applicable statutes, regulations and other relevant statements of good practice are complied with. A5. develop and maintain shared values including leadership values both for the Council and its staff reflecting public expectations about the conduct and behaviour of individuals and groups within and associated with the Council; A6. use the Council’s shared values to act as a guide for decision making and as a basis for developing positive and trusting relationships within the Council; A7. develop and adopt formal codes of conduct defining standards of personal behaviour; A8. develop and maintain an effective standards committee that acts as the main means to raise awareness and take the lead in ensuring high standards of conduct are firmly embedded within the local culture; A9. put in place arrangements to ensure that members and staff of the Council are not influenced by prejudice, bias or conflicts of interest in dealing with different stakeholders and put in place appropriate processes to ensure that they continue to operate in practice; A10. put in place arrangements to ensure that procedures and operations are designed in conformity with appropriate ethical standards, and to monitor their continuing compliance in practice; A11. ensure that systems and processes for financial administration and control, protection of the Authority’s resources and assets, are designed in conformity with appropriate ethical standards; and are subject to monitoring of their effectiveness; A12. put in place arrangements so that conflicts of interest on behalf of members and employees can be avoided and put in place appropriate processes to ensure that they continue to operate in practice; A13. put in place effective transparent and accessible arrangements for dealing with complaints; A14. actively recognise the limits of lawful activity placed on the Council by the ultra vires doctrine but also strive to utilise the Council’s powers to the full benefit of our communities; A15. observe all specific legislative requirements placed upon the Council as well as the requirements of general law, and in particular integrate the key principles of 3

Page 239 administrative law – rationality, legality and natural justice into the Council’s procedures and decision making; A16. put in place effective systems to protect the rights of staff. Ensure that policies for whistle blowing which are accessible to staff and those contracting with the authority, and arrangements for the support of whistle blowers, are in place; A17. put in place effective anti-bribery, fraud and corruption policies that comply with the Code of Practice on Managing the Risk of Fraud and Corruption (CIPFA, 2014);.

Additional Measures

A18. use a statement of business conduct to make its expectations clear to partners and external providers of services;

Additional Measures

A19. provide induction programmes tailored to individual needs and opportunities for members and officers to update their knowledge on a regular basis; A20. assess the skills required by members and officers and make arrangements to agree a development plan to develop those skills and address any training gaps, to enable roles to be carried out effectively; A21. determine a scheme of delegated and reserved powers within the constitution and ensure that it is monitored and updated when required; A22. ensure that professional advice on legal and financial matters is available and recorded well in advance of decision making and used appropriately when decisions have significant legal or financial implications.

Principle B Ensuring openness and comprehensive stakeholder engagement

Local government is run for the public good, organisations therefore should ensure openness in their activities. Clear, trusted channels of communication and consultation should be used to engage effectively with all groups of stakeholders, such as individual citizens and service users, as well as institutional stakeholders.

In pursuance of this principle we will:

B1. develop protocols to ensure effective communication between members and officers in their respective roles; B2. develop protocols to ensure that the leader and chief executive negotiate their respective roles early in their relationship and that a shared understanding of roles and objectives is maintained; B3. ensure that the Council’s vision, values, strategic plans, priorities and targets are developed through robust mechanisms, and in consultation with the local community and other key stakeholders, and that they are clearly articulated and disseminated; B4. in pursuing partnerships, agree a set of values against which decision making and actions can be judged in line with and having referred to the Partnership Register and Guidance. B5. develop and maintain open and effective mechanisms for documenting evidence for 4

Page 240 decisions and recording the criteria, rationale and considerations on which decisions are based; B6. put in place effective arrangements designed to encourage individuals from all sections of the community to engage with, contribute to and participate in the work of the authority; B7. make clear to ourselves, all staff and the community, to whom we are accountable and for what; B8. consider those institutional stakeholders to whom we are accountable and assess the effectiveness of the relationships and any changes required; B9. establish clear channels of communication with all sections of the community and other stakeholders and put in place monitoring arrangements to ensure that they operate effectively; B10. put in place arrangements to enable the authority to engage with all sections of the community effectively. These arrangements will recognise that different sections of the community have different priorities and establish explicit processes for dealing with these competing demands; B11. develop and maintain a clear policy on how staff and their representatives are consulted and involved in decision making; B12. To put in place measures to ensure freedom of information requests and transparency requirements are adhered to, including publication through the Council’s website. B13. To ensure committee decisions are fully documented through the use of appropriate report templates, agenda submission processes and minutes;.

Additional Measures

B14. publish an annual report on a timely basis to communicate the authority’s activities and achievements, its financial position and performance; B15. promote the use of technology to enhance efficiency and quality of service; B16. ensure that professional advice on legal and financial matters is available and recorded well in advance of decision making and used appropriately when decisions have significant legal or financial implications; B17. when working in partnership, ensure that there is a clear statement setting out the purpose of the partnership and the outputs to be achieved.

Principle C Defining outcomes in terms of sustainable economic, social, and environmental benefits

The long-term nature and impact of many of local government’s responsibilities mean that it should define and plan outcomes and that these should be sustainable. Decisions should further the organisation’s purpose, contribute to intended benefits and outcomes, and remain within the limits of authority and resources. Input from all groups of stakeholders, including citizens, service users, and institutional stakeholders, is vital to the success of this process and in balancing competing demands when determining priorities for the finite resources available.

In pursuance of this principle we will:

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Page 241 C1. make a clear statement of the authority’s purpose and vision and use it as a basis for corporate and service planning. and shaping the Council Plancommunity strategy and local area agreements; C2. review on a regular basis the authority’s vision for the local area and its impact in the authority’s governance arrangements; C3. when working in partnership, ensure that there is a clear statement setting out the purpose of the partnership and the outputs to be achieved. C4. develop and maintain an effective scrutiny function which encourages constructive challenge and enhances the authority’s performance overall; C5. produce an annual report on scrutiny function activity; C6. ensure performance, financial and non-financial, is reported to senior management and Members including action plans where necessary;. C7. Link service plans to agreed measures and targets within the Council plan; C8. ensure strategic investment decisions are managed through the capital budgeting process and Medium Term Financial Plan linked to the Council Plan, including the economic, social and environmental impacts. C9. ensure committee reports are shared with senior management and portfolio holders as part of the pre agenda submission process;.

Additional Measures

C10. ensure that the Council’s vision, values, strategic plans, priorities and targets are developed through robust mechanisms, and in consultation with the local community and other key stakeholders, and that they are clearly articulated and disseminated; C11. ensure that risk management is embedded into the culture of the authority, with members and managers at all levels recognising that risk management is part of their job; C12. put arrangements in place to capture and manage risks corporately; C13. develop and maintain open and effective mechanisms for documenting evidence for decisions and recording the criteria, rationale and considerations on which decisions are based.

Principle D Determining the interventions necessary to optimise the achievement of the intended outcomes

Local government achieves its intended outcomes by providing a mixture of legal, regulatory, and practical interventions (courses of action). Determining the right mix of these courses of action is a critically important strategic choice that local government has to make to ensure intended outcomes are achieved. They need robust decision-making mechanisms to ensure that their defined outcomes can be achieved in a way that provides the best trade-off between the various types of resource inputs while still enabling effective and efficient operations. Decisions made need to be reviewed frequently to ensure that achievement of outcomes is optimised.

In pursuance of this principle we will:

D1. decide how the quality of service for users is to be measured and ensure that the 6

Page 242 information needed to review service quality effectively and regularly is available; D2. decide how value for money is to be measured and ensure that we have the information needed to review value for money and performance effectively; measure the environmental impact of policies, plans and decisions; D3. produce timely, accurate and impartial financial information for decision making, enabling the Authority to meet its objectives and providing effective stewardship and value for money; D4. ensure that effective mechanisms exist to monitor service delivery; D5. ensure that those making decisions are provided with information that is fit for the purpose – relevant, timely and gives clear explanations of technical issues and their implications; D6. produce clear, timely, complete and accurate information for budget holders and senior officers relating to the budgetary and financial performance of the Council; D7. establish a medium term business and financial planning process in order to deliver a financial strategy ensuring sustainable finances, a robust annual budget process ensuring financial balance and an adequate monitoring process; all of which are subject to regular review; D8. when working in partnership ensure that appropriate governance arrangements are in place that include responsibilities and arrangements for managing risk for each counterparty, D9. agree annually a calendar of meetings to be used as the basis for forward planning of decision making

Additional Measures

D10. To ensure committee decisions are fully documented through the use of appropriate report templates, agenda submission processes and minutes; D11. develop and maintain open and effective mechanisms for documenting evidence for decisions and recording the criteria, rationale and considerations on which decisions are based; D12. establish clear channels of communication with all sections of the community and other stakeholders and put in place monitoring arrangements to ensure that they operate effectively; D13. ensure that risk management is embedded into the culture of the authority, with members and managers at all levels recognising that risk management is part of their job; D14. Consider social value when preparing service plans, considering procurement and commissioning and monitoring performance.

Principle E Developing the entity’s capacity, including the capability of its leadership and the individuals within it

Local government needs appropriate structures and leadership, as well as people with the right skills, appropriate qualifications and mindset, to operate efficiently and effectively and achieve intended outcomes within the specified periods. A local government organisation must ensure that it has both the capacity to fulfil its own mandate and to make certain that there are policies

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Page 243 in place to guarantee that its management has the operational capacity for the organisation as a whole.

Because both individuals and the environment in which an organisation operates will change over time, there will be a continuous need to develop its capacity as well as the skills and experience of individual staff members. Leadership in local government is strengthened by the participation of people with many different types of backgrounds, reflecting the structure and diversity of communities.

In pursuance of this principle we will:

E1. publish an annual report on a timely basis to communicate the authority’s activities and achievements, its financial position and performance; E2. assess the skills required by members and officers and make arrangements to agree a development plan to develop those skills and address any training gaps, to enable roles to be carried out effectively; E3. embed financial competencies within all appropriate person specifications and appraisals; E4. ensure that Councillor’s roles and responsibilities for monitoring financial/budgetary performance are clear; and they are provided with and have access to adequate financial skills and training to assist in discharging these responsibilities; E5. develop skills on a continuing basis to improve performance, including the ability to scrutinise and challenge and to recognise when outside expert advice is needed, in line with the member development strategy; E6. provide induction programmes tailored to individual needs and opportunities for members and officers to update their knowledge on a regular basis; E7. ensure that the statutory officers have the skills, resources and support necessary to perform effectively in their roles and that these roles are properly understood throughout the authority; E8. consider career structures for members and officers to encourage participation and development; E9. manage the strategic Human Resource Management and Organisational Development needs of the organisation through relevant policies and accreditation. E10. promote the use of technology to enhance efficiency and quality of service;.

Additional measures:

E11. ensuring members and officers are aware of corporate guidance around partnership working through annual partnership review;

Additional Measures

E12. decide how value for money is to be measured and ensure that we have the information needed to review value for money and performance effectively; measure the environmental impact; E13. when working in partnership, ensure that appropriate governance arrangements are in place that make clear the financial controls, data sharing, audit and scrutiny arrangements. 8

Page 244 E14. develop protocols to ensure effective communication between members and officers in their respective roles; E15. develop protocols to ensure that the leader and chief executive negotiate their respective roles early in their relationship and that a shared understanding of roles and objectives is maintained; E16. determine a scheme of delegated and reserved powers within the constitution and ensure that it is monitored and updated when required; E17. ensure effective internal control arrangements exist for sound financial management systems and processes; E18. establish clear channels of communication with all sections of the community and other stakeholders and put in place monitoring arrangements to ensure that they operate effectively;

Principle F Managing risks and performance through robust internal control and strong public financial management

Local government needs to ensure that the organisations and governance structures that it oversees have implemented, and can sustain, an effective performance management system that facilitates effective and efficient delivery of planned services. Risk management and internal control are important and integral parts of a performance management system and are crucial to the achievement of outcomes. Risk should be considered and addressed as part of all decision making activities.

A strong system of financial management is essential for the implementation of policies and the achievement of intended outcomes, as it will enforce financial discipline, strategic allocation of resources, efficient service delivery and accountability.

It is also essential that a culture and structure for scrutiny are in place as a key part of accountable decision making, policy making and review. A positive working culture that accepts, promotes and encourages constructive challenge is critical to successful scrutiny and successful service delivery. Importantly, this culture does not happen automatically, it requires repeated public commitment from those in authority.

In pursuance of this principle we will:

F1. maintain a prudential financial framework, balance commitments with available resources; and monitor income and expenditure levels to ensure this balance is achieved; F2. ensure compliance with the CIPFA codes regarding a Prudential Framework for Capital Finance and Treasury Management; F3. put in place effective arrangements to deal with a failure in service delivery; F4. determine a scheme of delegated and reserved powers within the constitution and ensure that it is monitored and updated when required; F5. require appropriate management accounting, functions and controls to be in place within the Council,; F6. ensure budget calculations are robust and reserves are adequate; 9

Page 245 F7. ensure that effective management arrangements are in place at the top of the organisation; F8. ensure that risk management is embedded into the culture of the authority, with members and managers at all levels recognising that risk management is part of their job; F9. ensure effective internal control arrangements exist for sound financial management systems and processes; F10. review the scope of the Chief Finance Officer’s (Section 151 Officer’s) non financial areas of responsibility to ensure financial matters are not compromised; F11. provide the Financial Services with the resources, expertise and systems necessary to perform its role effectively within the Council; F12. on an annual basis, publish an annual report giving information on the authority’s vision, strategy, plans and financial statements as well as information about the outcomes, achievements and the satisfaction of service users in the previous period; F13. Set out clear financial and contract procedure rules, kept under review as part of the overall Constitution of the Council. F14. Put arrangements in place for sharing, gathering and storing data and ensuring data quality. F15. Put arrangements in place to capture and manage risks corporately.

Additional Measures:

F16. when working in partnership, ensure that appropriate governance arrangements are in place that make clear the financial controls, data sharing, audit and scrutiny arrangements.

Additional Measures:

F17. ensure performance, financial and non-financial, is reported to senior management and Members including action plans where necessary; F18. To ensure committee decisions are fully documented through the use of appropriate report templates, agenda submission processes and minutes; F19. ensure that professional advice on legal and financial matters is available and recorded well in advance of decision making and used appropriately when decisions have significant legal or financial implications. F20. develop and maintain an effective scrutiny function which encourages constructive challenge and enhances the authority’s performance overall; F21. ensure that systems and processes for financial administration and control, protection of the Authority’s resources and assets, are designed in conformity with appropriate ethical standards; and are subject to monitoring of their effectiveness; F22. ensure an effective internal audit function is resourced and maintained and complies with Public Sector Internal Audit Standards (PSIAS); F23. put in place effective anti-bribery, fraud and corruption policies that comply with the Code of Practice on Managing the Risk of Fraud and Corruption (CIPFA, 2014); F24. require our arrangements for financial and internal control and management of risk to be formally addressed within the annual governance reports;

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Page 246 F25. Ensure audit committee complies with Audit Committees: Practical Guidance for Local Authorities and Police (CIPFA, 2018).

Principle G Implementing good practices in transparency, reporting, and audit to deliver effective accountability

Accountability is about ensuring that those making decisions and delivering services are answerable for them. Effective accountability is concerned not only with reporting on actions completed, but also ensuring that stakeholders are able to understand and respond as the organisation plans and carries out its activities in a transparent manner. Both external and internal audit contribute to effective accountability.

In pursuance of this principle we will:

G1. set out a clear statement of the respective roles and responsibilities of the Council’s executive committee and the members individually and the authority’s approach towards putting this into practice; G2. set out a clear statement of the respective roles and responsibilities of the Council’s other committees and members and senior officers; G3. set out the terms and conditions for remuneration of members and officers and publish an Annual Pay policy statement in accordance with the requirements of the Localism Act 2011; G4. ensure an effective internal audit function is resourced and maintained and complies with Public Sector Internal Audit Standards (PSIAS); G5. develop and maintain effective arrangements for determining the remuneration of senior staff; G6. ensure that professional advice on legal and financial matters is available and recorded well in advance of decision making and used appropriately when decisions have significant legal or financial implications; G7. enable the Chief Finance Officer (Section 151 Officer) to bring influence to bear on all material decisions and provide advice on the levels of reserves and balances to be retained; G8. require our arrangements for financial and internal control and management of risk to be formally addressed within the annual governance reports; G9. ensure that the authority as a whole is open and accessible to the community, service users and staff and make a commitment to openness and transparency in all our dealings, including partnerships subject only to the need to preserve confidentiality in those specific circumstances where it is proper and appropriate to do so; G10. develop and maintain an effective audit committee which is independent of the executive and scrutiny functions; G11. enable the Chief Finance Officer (Section 151 Officer) to have direct access to the Council’s Audit Committee and External Auditor G12. Ensure audit committee complies with Audit Committees: Practical Guidance for Local Authorities and Police (CIPFA, 20182013).

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Page 247 Additional Measures

G13. establish clear channels of communication with all sections of the community and other stakeholders and put in place monitoring arrangements to ensure that they operate effectively; G14. publish an annual report on a timely basis to communicate the authority’s activities and achievements, its financial position and performance; G15. produce timely, accurate and impartial financial information for decision making, enabling the Authority to meet its objectives and providing effective stewardship and value for money; G16. produce clear, timely, complete and accurate information for budget holders and senior officers relating to the budgetary and financial performance of the Council;

Annual Review of Corporate Governance

At the end of the year, the Council will produce its Annual Governance Statement which will review the effectiveness of the actual system of internal control in place against both the Local Code of Governance and the CIPFA best practice framework. The review will draw various sources of evidence including:

 detailed self-assessment against the CIPFA best practice examples  the Internal Audit annual opinion,  relevant reports from External Audit,  year end reports from Scrutiny, Audit and Standards committees  assurances from senior management and significant partners

As part of its governance role, the Audit Committee will oversee this review on behalf of the Council.

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Page 248 Framework for the Internal Control Environment

Internal Control Framework  Council Constitution  Council Plan  Local Code of Governance

 Medium Term Financial Plan  Revenue & Capital Budgets Annual Governance Statement  Service Plans  published with the Statement of  Performance Management Framework Accounts Performance Sub Committee  Service Partnership Protocols and  approved by Leader and Chief

Agreements Executive  Monitors residual risk and  South Lakeland Local Plan management  Financial Management Reporting  Monitors risk profile  Project management process  Receives risk monitoring  Risk management & registers reports

 Anti-Bribery, Fraud & Corruption Policy  Performance Indicators & Performance Plan  Information Security Policy Independent review by Audit  Financial Procedure Rules Committee Members to examine Monitoring Officer  Codes of Conduct for Members & Officers draft AGS & supporting evidence and recommend approval  Monitors compliance with  Whistleblowing policy Constitution, standards and legislation  Freedom of Information Policy  Corporate Procurement Strategy Section 151 Officer  Health and Safety Policy  Monitors compliance with  Corporate Property Strategy Draft Annual Governance Statement internal/external financial  Asset Land and Property Management regulatory framework Plan  Internal Control environment reviewed by Finance,  Surveillance Policy Partnerships and Organisational  Human Resources Policies Development, Internal Audit  Customer Access Strategy  Governance best practice  Equality and Diversity reviewed  Accessibility Policy  Draft AGS produced  Data Protection and Governance  Community Engagement Strategy

Performance Internal External Assurances Risk Other Management Audit Audit by Management sources of Managers assurance

 Embedded  Internal Audit’s  Annual plan  Departmental  Strategic  Fraud reports and system opinion  Annual letter Policies operational investigations  Operates expressed in  Audit opinion  Control & risk self- strategy &  Reports by throughout periodic and assessment registers inspectors annual reports to  Value for Money organisation opinion questionnaires  Embedded in  Post  Internal & external audit committee completed with policies & implementation reviews  Operates under feedback from planning reviews of projects  Action orientated terms of senior Managers  Effectiveness reference  National/local evaluated KPI’s  Rolling strategic  Project appraisal & annual plans,  Periodic progress Member reports approved  Risk-based plan

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Page 250 Appendix 2

FINANCIAL PROCEDURE RULES

STATUS

These Financial Procedure Rules provide a framework for managing the Council’s financial affairs. They apply to every Officer and Member of the Council and anyone acting on its behalf. The Chief Finance Officer is responsible for issuing advice and guidance to underpin the Financial Procedure Rules that Officers and Members of the Council and anyone acting on its behalf are required to follow. Failure to comply with the requirements of the Financial Procedure Rules may, if appropriate, lead to action being taken against officers under the Council’s Disciplinary Procedure and against Members by the Council’s Standards Committee. 1. GENERAL

Statutory References

1.1 Under Section 151 of the Local Government Act 1972, the Chief Finance Officer is responsible for the financial affairs of the Council and is particularly responsible for: (a) Supervising arrangements for the receipt of income due to the Council and expenditure incurred by the Council. (b) The preparation and presentation of final accounts. (c) The maintenance of a continuous and effective internal audit of the Council’s activities. 1.2 Under Section 114 of the Local Government Finance Act 1988 the Chief Finance Officer or in her/his absence a designated member of his staff has a duty to make a report if it appears to him that the Council, a Committee, a Member or Officer of the Council or joint committee on which the Council is represented: (a) has made or is about to make a decision which involves or would involve the Council incurring expenditure which is unlawful; (b) has taken or is about to take a course of action which, if pursued to its conclusion, would be unlawful or likely to cause a loss or deficiency on the part of the Council; or (c) is about to enter an item of account, the entry of which is unlawful. The Chief Finance Officer must make a report under Section 114 if it appears to her/him that the Council’s expenditure (including commitments) in a financial year is likely to exceed the resources (including sums borrowed) available to meet them. Any Officer of the Council who is or should be aware of the circumstances specified at (a), (b) and (c) above or any expenditure which is likely to exceed the amounts allocated in the Council’s Budgets shall notify the Chief Finance Officer to enable her/him to carry out their statutory duty. General

1.3 Reference in these Rules to Portfolio Holders refer equally to Committees which manage budgets. References to Directors include the two Directors, the Chief Executive and the Assistant Directors. References to Departments refer to the accompanying administrative organisations. In the absence of the Chief Finance Officer, the Financial Services Manager, as Deputy S151 Officer, has delegated authority to carry out all actions within this part of the Constitution. 1.4 Each Director shall consult the Chief Finance Officer with respect to any matter within his control which is liable materially to affect the finances of the Council before any provisional or other commitment is incurred or before reporting thereon to Members. 1.5 In allocating the duties of officers within their Departments, each Director shall arrange for internal checks to ensure that:-

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(a) The duty of keeping records relating to income shall not be carried out by officers who are also responsible for the collection of income. (b) The duties of issuing orders, certifying the receipt of goods or the completion of work, and approving accounts for payment shall be carried out by different officers. 1.6 It is the duty of all officers appointing consultants to carry out work on behalf of the Council to bring these Rules to the attention of those consultants and instruct them to follow such procedures as are relevant. Authority to Incur Expenditure 1.7 The inclusion of items in approved budgets represents the authority to incur expenditure except where the Cabinet has a reservation on such items. 1.8 The Cabinet shall not approve a supplementary revenue budget request or amend a capital budget without Directors first having consulted with the Chief Finance Officer on the financial implications. A comment will be sought from the Chief Finance Officer to be incorporated to the Report on the proposal made to Council to approve a supplementary revenue budget request or capital budget. 1.9 Nothing in these regulations shall prevent a Director from incurring expenditure which is essential to meet any immediate needs created by an emergency subject to their action being reported forthwith to the Cabinet. 2. ACCOUNTING

2.1 All accounting procedures and records of the Council and its officers shall be in a form approved by the Chief Finance Officer. Where such procedures and records are maintained in an Assistant Directorate other than that of the Chief Finance Officer the Director or Assistant shall, before giving approval, gain the Chief Finance Officer’s approval to any proposed changes. 2.2 No accounting procedure or financial records shall be amended or discontinued without the prior approval of the Chief Finance Officer. 2.3 All accounts and accounting records of the Council shall be compiled by the Chief Finance Officer or under her/his direction. 2.4 The Chief Finance Officer shall ensure that all accounts, accounting records, balance sheets, etc of the Council are properly completed, presented to the Members and submitted to external audit in accordance with statutory requirements. 3. BUDGETS - GENERAL

3.1 Budget Preparation – will cover the forthcoming five year period and be subject to a timetable prepared by the Chief Finance Officer and approved by Cabinet. The Chief Finance Officer will produce the Five Year Medium Term Financial Plan on an annual basis in consultation with Cabinet Members and Management Team for approval by the Council. Regular updates of the strategic financial position will be provided to the Cabinet and Council. 3.2 The detailed form of capital and revenue estimates shall be determined by the Chief Finance Officer in accordance with any general directions of the Cabinet and after consultation with the Management Team. 3.3 Revenue Budgets – Staffing budgets shall be prepared by the Chief Finance Officer in consultation with the relevant Director. All other estimates of revenue income and expenditure shall be prepared by appropriate Directors in consultation with the Chief Finance Officer and submitted to Members for approval. The Chief Finance Officer shall collate the estimates and submit them to the Cabinet with a report setting out how this compares to the Council’s existing Medium Term Financial Plan. 3.4 Capital budgets shall be prepared in the form of a rolling five-year Capital Programme. The Chief Finance Officer shall review and estimate the capital resources available to the Council over the five year period. Bids for the use of capital resources shall be made in a form agreed by the Cabinet, to include an appropriate level of project appraisal and an assessment of the revenue consequences of the capital scheme. The Cabinet shall be responsible for the

Page 252 Appendix 2

allocation of resources within a viable Capital Programme for submission to the Council for approval. 4. BUDGETARY CONTROL

It is the duty of the Cabinet and/or every Committee to monitor and regulate the Council’s performance against the targets set out in the Corporate and Service Plans and how resources have been utilised against the approved Budget during each budget period. Financial sustainability of the Council is paramount and projected variations to approved budgets and service delivery must be properly managed within a robust control system. Directors and other Budget holders responsible for budgets shall maintain an effective system of budgetary control. Budgets are the reflection of service plans and variations in either must be matched to the other in performance and other reports. All budgets will be assigned to a budget holder who is responsible and accountable for spending and generating income in accordance with the approved budget and associated service plan. Budget holders are responsible for the underlying reliability of the financial data and service performance. The responsibility of Officers for budgets will be clearly defined and determined by the Chief Executive and Directors, who shall determine relevant procedures to be followed by those officers. (See 4.2) The Chief Finance Officer shall make available to all budget holders information on commitments, receipts and payments to enable them to carry out these duties and to allow them to monitor performance and make proposal/take decisions on changes. Budget holders will be provided with training to assist them (provided by the Chief Finance Officer). Each Director/budget holder shall utilise the Council’s corporate financial management system to maintain records of orders raised and other commitments, recording their effect on budgeted expenditure. The Chief Finance Officer has overall responsibility for the Budget Framework including the Budget Timetable, Budgetary Control reporting arrangements and preparation of the Year End Statement of Accounts. Each Budget will have a single named Manager, determined by Management Team. The Chief Finance Officer is responsible for ensuring that the Budget and Council Tax Setting is carried out in accordance with the statutory deadlines. Finance Section responsibilities:

The Chief Finance Officer is responsible for the following areas of budget setting and budgetary control:  Assisting Assistant Directors and budget holders in the preparation of draft budgets  provision of timely, accurate, relevant financial information to budget holders to enable effective budgetary control to be carried out  budgetary control reporting arrangements  provision of financial advice and training to budget holders  to actively use information from Directors on service trends that may have an impact on budgets.

Responsibilities of Directors:

 preparation of detailed revenue budgets, including the compilation of information produced centrally, to the standards and timescales set by the Chief Finance Officer.  liaison with Accountancy and other staff in the provision of budgets  identification of areas in which budget savings and/or efficiencies can be made  assistance in the preparation of service reviews and the implementation of these and other approved changes to budgets.  identification of development proposals and implementation if approved  ensuring that budgets are consistent with approved service plans

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 identification and subsequent review of meaningful profiles for budgets “signing off” detailed budgets and profiles to indicate that managers accept their content and accuracy and believe that they are sufficient to deliver the service  monitoring budgets using monthly budgetary control reports and managing the service within budget  Where overspends are identified, or projected, to alert Directors or Management Team as appropriate and to propose actions to correct the overspending  notifying Directors and/or Management Team of potential underspendings/ increased income that could be of corporate benefit to the Council  compliance with the Council’s Financial Procedure Rules  provision of timely, relevant and accurate explanations for budget and service delivery variances as required by the Chief Finance Officer, Management Team and Members  update Finance staff on service trends that may have an impact on budgets.  developing performance information to complement budgetary control processes Responsibilities of Members:

Members generally are responsible for taking an overview of the Council’s finances and its performance against budgets. In particular:  Full Council is required to review periodically the adequacy of the Council’s overall budget.  Portfolio holders are required, in conjunction with budget holders, to monitor and manage budgets for the services under their control. Budget monitoring reports shall be produced by the Chief Finance Officer on the first working day of each month. The Service Accountants are responsible for checking the reports prior to their distribution. Each Director and Portfolio Holder will receive budget monitoring reports for their services. A summary report will be produced for publication electronically for Members and officers. Reports will be submitted to the Management Team, Cabinet and Council quarterly on the Authority’s projected Income and Expenditure compared with the budget.

4.3 The inclusion of items in approved budgets represents the authority to incur expenditure except where the Cabinet has a reservation on such items. 4.4 The Cabinet shall not approve a supplementary revenue estimate or amend a capital budget without Directors first having consulted with the Chief Finance Officer on the financial implications. A comment will be sought from the Chief Finance Officer to be incorporated to the Report on the proposal made to Council to approve a supplementary revenue or capital estimate. 4.5 Nothing in these regulations shall prevent a Director from incurring expenditure which is essential to meet any immediate needs created by an emergency subject to their action being reported forthwith to the Cabinet. 5. SUPPLEMENTARY REVENUE BUDGET REQUESTESTIMATES

General

5.1 Prior to any request for a supplementary revenue budget requestestimate being made Portfolio Holders and Directors should consider whether the expenditure can be accommodated within existing budgets by the use of virement. All requests for supplementary revenue budget requests estimates must be discussed with the Chief Finance Officer prior to being considered by Cabinet. 5.2 No supplementary revenue budget requests estimates below £25,000 should be granted; instead virement should be identified to accommodate the expenditure;

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5.3 The Cabinet is able to grant supplementary revenue budget requests estimates up to a value of £100,000. Supplementary revenue budget requests estimates above that limit can only be approved by Full Council. General Fund

5.4 Supplementary revenue budget request estimates shall only be granted where suitable virement cannot be identified. Such supplementary revenue budget requests estimates shall be restricted to the following genuinely exceptional and inescapable items of expenditure: (a) contractual claims, court and litigation costs; (b) health and safety items constituting a risk to “life and limb”; (c) additional expenditure arising from tenders following competitive tendering of services (conversely, savings on such tendering should be returned to contingencies); (d) additional legislative responsibilities. 5.5 Supplementary revenue budget requests estimates may be allowed for income-generating schemes where expenditure in the year will result in increased net income in subsequent years which will, at least, cover the amount of the supplementary revenue budget requestestimate; 5.6 No supplementary revenue budget request estimates should be granted that have an ongoing financial implication for subsequent years. Reporting

5.7 Regular reports to the Cabinet shall clearly state the ongoing implications of proposed expenditure, identify the source of finance being used for supplementary revenue budget requests estimates and the balance available within the Working Balance. 6. UNSPENT BUDGETS AND GRANTS

Unspent Grants 6.1 Where (a) a grant or contribution has been received in a financial year for which there are no conditions; and (b) the grant is unspent at the end of the financial year, the relevant Assistant Director can request that the grant be carried forward to the following financial year. 6.2. The mechanism for the carry forward is the granting of a supplementary revenue estimate for the income. Items up to a value of £100,000 can be approved by Cabinet with larger requests to be considered by Full Council. 6.3. All requests for the carry forward of unspent grants should be discussed with the Chief Finance Officer prior to submission to Cabinet for approval. UNDERSPENT BUDGETS Unspent Budgets

General

6.4 All requests for the carry forward of unspent budgets should be discussed with the Chief Finance Officer and the relevant Portfolio Holder should be consulted. 6.5 The mechanism, for the carry forward is the granting of a supplementary revenue budgetestimate, on the strength of an underspending in the previous year. Items up to a value of £100,000 can be approved by Cabinet with larger requests to be considered by full Council. 6.6 Requests for carry forwards must be submitted to the Chief Finance Officer by the deadline set annually by the Chief Finance Officer and be accompanied by an explanation of the service need and implications. Carry forwards must be for use on specific items of expenditure which have no on-going cost implications for subsequent years. 6.7 In many cases, requests for carry forward of budgets will be made before the final expenditure for the financial year is known. Approvals can be made in these instances but will be subject

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to possible withdrawal if the Assistant Directorate, Department or Council budget is subsequently found to be overspent. 6.8 A minimum limit of £10,000 per item will usually apply to the gross value of savings considered for carry forward. The Assistant Director will be required to identify and explain the reasons for his opinion that underspendings have arisen from savings. In the context of this policy, underspends are defined as underspending of expenditure budgets or additional income against income budgets provided that those savings have not been anticipated for corporate use. Limitations

6.9 An Assistant Director will not be allowed to carry forward any unspent budget where the overall net expenditure for the year exceeds the Assistant Director’s revenue budget. In these circumstances the Assistant Director may be required to deduct the overspending from its budget for the following year. Individual cases will be considered on their merits, taking into account the degree to which external factors are responsible for the overspending. The amount of any unspent estimates to be carried forward will be limited to the Assistant Director’s overall net underspending for the year, where this is a smaller amount. 6.10 Where a budget is approved for a Council year, rather than a financial year (for example the Chairman’s Allowance) any underspend will be automatically carried forward if requested. 6.11 Subject to these limitations, approval for the carry forward of qualifying unspent budgets will not normally be withheld. However, corporate considerations, particularly budgetary constraints, may cause individual provisions to be over-ridden or the whole policy to be suspended in the overall interests of the Council. 7. TRANSFER OF BUDGETS (VIREMENT)

7.1 Virement is intended to enable the Cabinet, Directors and their staff to manage budgets with a degree of flexibility within the overall Budget and Policy Framework to optimise the use of resources. However, it may be appropriate to suspend these provisions and apply more restrictive procedures if required by the Council’s financial position. Virements are administered by the Chief Finance Officer. 7.2 The overall Revenue and Capital Budget is approved by Council and published in the Annual Budget book. Assistant Directors are authorised to spend in accordance with the estimates that make up the Budget and in accordance with the Contract Procedure Rules. Virement will be required if resources are to be moved between the lines set out in the Budget Book. Virement must not create additional overall budget Commitment. Assistant Directors are expected to exercise discretion in managing their budgets responsibly and prudently, for example by avoiding future commitments for which they have not identified resources. 7.3 Virement can only be applied to direct expenditure. It cannot be applied to the budget headings such as Capital Charges, Recharged Employees, Central Support Recharges, Departmental Recharges or Indirect Income. In general, virement will not be allowed from employee budgets. Following consultation with the Chief Finance Officer, the responsible Assistant Director(s) shall be entitled to transfer budgets from within and between any one service to another up to a maximum limit of £60,000 per transfer. The Cabinet shall be entitled to transfer budgets from within and between any one service to another up to a limit of £100,000 per transfer. Beyond these limits, approval to transfers can only be given by full Council. The Monitoring Officer shall be entitled to transfer budgets within the Elections Service without any financial limit. The Corporate Financial Monitoring process should be used for approval where appropriate.

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Virement requests must include details of the reason for the transfer and details of the impact on service delivery. 7.4 Virements will only be allowed where they are within these rules and generally in accordance with the policies of the Council and there will be no overall effect on the Budgets of the General Fund. 7.5. These virement rules must also be applied where additional income is received above levels included in the approved budget. 7.6. Where an approved budget is a lump-sum budget or contingency intended for allocation during the year, its allocation will not be treated as a virement, provided that the amount is used in accordance with the purposes for which it has been established and there is an approved basis and terms, including financial limits, on which it will be allocated. 7.7 The Chief Finance Officer is able to transfer budgets to correct allocations, to reflect restructures and in the case of ‘housekeeping’ where budgets could be held under more appropriate headings. 8. CAPITAL EXPENDITURE

8.1 Capital expenditure shall not be incurred unless it forms part of the approved Capital Programme and has been allocated an expenditure account by the Chief Finance Officer. 8.2 The Cabinet may adjust the phasing of expenditure, by deferment or advancement, of existing approved schemes in the Capital Programme. 8.3 Following consultation with the Chief Finance Officer, the responsible Assistant Director(s) shall be entitled to transfer budgets from within and between any one capital scheme to another, or from revenue to any capital scheme up to a maximum limit of £60,000 per transfer. The Cabinet may transfer Capital Programme provisions from one capital approved scheme to another capital approved scheme or from revenue to any capital scheme, subject to a limit of £100,000 per individual transfer. Beyond these limits, approval to transfers can only be given by full Council 8.4 The Cabinet may allocate available capital resources within the Capital Programme to new schemes which are urgent, necessary and generally in accordance with Council priorities, subject to a limit of £100,000 per individual allocation, provided in all cases the Chief Finance Officer is consulted and is satisfied with the affordability and advisability of the proposed use of resources. Beyond these limits, amendments to the Capital Programme can only be made by Council. 9. FINANCING OF CAPITAL EXPENDITURE

The Chief Finance Officer may adjust the planned method of financing capital expenditure within the aggregate resources available to the Council, provided that such ‘switching’ of financing is in the Council’s interest and in accordance with the Prudential Framework and Treasury Management Policy and Statement. Factors to be taken into account in such adjustments shall include prudence, affordability, financial advantage, flexibility and risk considerations. 10. RESERVES AND WORKING BALANCES

10.1 Three types of Reserves are maintained by the Council: a) Unusable reserves are established and managed under various statutes and the Accounting Code of Practice b) A Working Balance and a General Reserve are established by Council in accordance with an appropriate risk assessment undertaken by the Chief Finance Officer a) Usable earmarked reserves are established and managed in accordance with criteria approved by Council.

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The power to establish financial reserves is restricted to full Council except that Cabinet is able to set aside amounts (up to £100,000 in aggregate) where this would assist in the efficient operation of the Council’s activities. The Chief Finance Officer must be consulted and be satisfied with the proposed setting aside of resources. 10.2 The purpose and limits on the operation of each significant reserve should be set out in the annual Medium Term Financial Plan. 10.3 Unless determined otherwise by Council, the use of resources held in reserves and the Council’s working balances shall be determined by full Council (as agreed in the annual Revenue Budget, Capital Programme or otherwise) except that Cabinet is able to make or adjust transfers from reserves not exceeding £100,000 after consultation with the Chief Finance Officer where these would assist in the financial management of the Council. 10.210.4 The Chief Finance Officer is required, as part of the annual budget process, to carry out a formal review of balances and reserves and to advise the Council on their adequacy. In particular she/he is responsible for: (a) preparing a statement for Council showing the estimated opening working balance for the year ahead, the addition to/withdrawal from balances, and the estimated end of year balance, including reference to the extent to which such reserves are to be used to finance recurrent expenditure. (b) reporting on the annual review of earmarked reserves, listing the various earmarked reserves, the purposes for which they are held, showing the estimated opening balances for the year, planned addition/withdrawals and the estimated closing balances, and advising on their appropriate levels. (c) making a statement on the adequacy of the general reserves and provisions in respect of the forthcoming financial year and the Council’s Medium Term Financial Plan, taking into account the strategic, operational and financial risks facing the authority. The advice given by the Chief Finance Officer should be recorded formally in the minutes of the Council meeting, including whether or not that advice has been accepted. UNUSABLE RESERVES 10.3 The establishment and maintenance of these reserves are the responsibility of the Chief Finance Officer as part of the closure of the Council’s accounts each year. WORKING BALANCE/GENERAL RESERVE 10.4 The Chief Finance Officer must make an assessment of the minimum level of balances required in these reserves as part of the annual budget process using an appropriate risk matrix. 10.5 Contributions to and from these reserves will be managed by the Chief Finance Officer and be in accordance with the criteria established as part of the annual budget process and approval. 10.6 Any overall surplus or deficit on the Council’s accounts for the year will be reflected in the General Reserve and should the resultant balance be less than the minimum established then a separate report must be made to Council on the implications. USABLE EARMARKED RESERVES 10.7 The following criteria will be used to authorise Officers to establish and maintain usable Earmarked Reserves: a) The reserve can only be established if it supports the Council’s objectives, Council Plan and MTFP and complies with at least one of the following: i. Where expenditure is planned in future years and it is prudent to build up resources in advance ii. The reserve is a statutory requirement of the service or on the Council iii. It relates to the carry forward of budgets identified in budget monitoring and in accordance with the carry forward rules

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b) The reserve can only be used gor the purpose for which it was established and In line with any timescales identified when established or following annual review as part of the annual budget process c) The timescales involved and the amounts to be transferred in and out of a reserve must be clearly set out when the reserve is established. Amounts can take the form of wording if figures are not available. d) Budget monitoring should identify the need for a reserve during the year and subject to meeting the criteria can be set up with the action being reported to the Portfolio Holder and ultimately Cabinet and Council through quarterly monitoring and the Statement of Accounts. Only exceptionally should the need for a reserve be identified in the Closure of Accounts process. e) One named member of staff should be responsible for a reserve and who can authorise any transactions. 10.8 Management and maintenance of usable earmarked reserves must include any variations to the annual budget approved movements being approved through the budget monitoring process. Budget amendments in the Carry Forward Reserve will be automatically implemented in the new financial year. 10.410.9 Following consultation with the Chief Finance Officer, the responsible Assistant Director(s) shall be entitled to transfer budgets from any one service to a reserve or from a reserve to a service up to a maximum limit of £60,000 per transfer providing the use or contribution is for the purpose for which the reserve was established. The Cabinet shall be entitled to transfer budgets to and from any reserve another up to a limit of £100,000 per transfer providing the use or contribution is for the purpose for which the reserve was established. Beyond these limits, approval to transfers can only be given by full Council. 10.1010.5 Following the closure of the accounts for a financial year, the Chief Finance Officer will report to Cabinet and Audit Committee on the transfers to and the use of reserves and working balances for that year and seek approval of those transactions by full Council. 11. MEDIUM TERM FINANCIAL PLAN

11.1 The Chief Finance Officer is required to produce and seek approval from Council for a Medium Term Financial Plan, detailing the Council’s projected financial position for a period of five years ahead. The Plan should be drawn up by reference to the Council’s Corporate Plan and include the financial implications of that Plan. As a minimum the Medium Term Financial Plan should contain  current and projected revenue budgets, including the revenue effects of capital and other investments;  projections of council tax levels to finance those budgets;  an indication of identifiable budgetary pressures and an action plan to deal with those pressures;  capital expenditure plans and resource projections;  projections of reserves and working balances; and  an assessment of the adequacy of reserves and the risks attaching to the assumptions in the Plan. 11.2 The Plan should be updated at regular intervals during the year and form part of the Annual Budget Process. All significant proposals with financial implications should be assessed against the Medium Term Financial Plan and the effects of those proposals reported at the time of making a decision. 12. EXTERNAL AUDIT

12.1 The Council’s activities will be audited by the External Auditor appointed in accordance with the requirements of the Local Audit and Accountability Act 2014. 13. INTERNAL AUDIT

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13.1 Regulation 65 of the Accounts and Audit Regulations 20151 requires the Council to maintain an adequate and effective Internal Audit. Arrangements for that audit will be approved by the Audit Committee. 13.2 The Internal Audit Annual Plan will be submitted for approval by the Audit Committee. An Annual Report of the activities of Internal Audit and the completion of the Audit Plan are to be submitted to the Chief Finance Officer within three months of the end of each financial year and subsequently reported to the Committee. 13.3 A continuous risk based internal audit, under the independent control and direction of the Chief Finance Officer, shall be arranged to carry out an examination of accounting, financial and other operations of the Council. 13.4 For the purpose of Internal Audit, the Chief Finance Officer or her/his authorised representative shall have authority to: (a) enter at all reasonable times on any Council premises or land (b) have access to all records, documents and correspondence relating to any financial or other transaction of the Council (c) require and receive such explanations as are necessary concerning any matter under examination, and (d) require any employee of the Council to produce cash, stores or any other Council property under his control. 13.5 The Internal Auditor shall have the right to report any concerns directly to the Chief Executive, appropriate Councillors and the External District Auditor. 14. BANKING ARRANGEMENTS, CHEQUES AND BACS

14.1 All arrangements with the Council’s bankers shall be made or approved by the Chief Finance Officer, who shall be authorised to operate such banking accounts as they may consider necessary including the designation of authorised signatories. 14.2 All cheques, or other payment instruments/stationery excluding those drawn on authorised imprest accounts, shall be ordered only on the authority of the Chief Finance Officer, who shall make proper arrangements for their safe custody. 14.3 Cheques on the Council’s main banking accounts shall be signed in accordance with the bank mandate (i.e. single signature under £10,000, two signatures over £10,000). 14.4 Payments made by BACS shall be authorised by the Chief Finance Officer or his/her representative in accordance with the Council’s banking arrangements. 15. IMPREST ACCOUNTS

15.1 The Chief Finance Officer shall provide such petty cash and advance accounts as he/she considers appropriate for such officers of the Council as may need them for the purposes of defraying petty cash and other expenses. Such accounts shall be maintained on the imprest system. 15.2 Where he/she considers it appropriate, the Chief Finance Officer shall open an account with the Council’s bankers for use by the imprest holder who shall not allow such account to be overdrawn. It shall be a standing instruction to the Council’s bankers that the amount of any overdrawn balance on an imprest holder’s banking account shall forthwith be reported to the Chief Finance Officer. 15.3 No income received on behalf of the Council may be paid into an imprest account but must be banked or paid to the authority as provided elsewhere in these regulations. 15.4 Payments shall be limited to minor items of expenditure and to such other items as the Chief Finance Officer may approve and shall be supported by a receipted voucher to the extent that the Chief Finance Officer may require. 15.5 An officer responsible for an imprest account shall carry out periodic reconciliations of his/her account and give the Chief Finance Officer a certificate as to the state of his/her imprest advance.

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On leaving the employment of the Council, or otherwise ceasing to be entitled to hold an imprest advance, an officer shall account to the Chief Finance Officer for the amount advanced to him/her. 15.7 All cash floats held are to be confirmed to the Chief Finance Officer in writing at the end of each financial year. 15.8 Every transfer of official money from one member of staff to another shall be evidenced in the records of the Departments concerned by the signature of the receiving officer, or by an official receipt. 16. CONTRACTS

16.1 The Contract Procedure Rules deal with the regulation and control of contracts for the execution of work and the supply of goods, materials and services awarded by the Council. These Rules should be followed in conjunction with those Rules. 16.2 In the paragraphs under this section reference to the “relevant person” shall mean the appropriate Director, an officer nominated by him/her in writing for that contract or a private architect, engineer or other consultant engaged by the Council for the purpose of that contract. The Chief Finance Officer shall be consulted as to any Performance Bonds to be obtained or given in respect of a proposed contract. 16.3 Each Director responsible for the awarding of contracts, which provide for payment to be made by instalments, shall arrange for the keeping of a register, to the satisfaction of the Chief Finance Officer, to show the state of account on each contract between the Council and a contractor, together with any other payments and related professional fees. 16.4 Payments to contractors on account of contracts shall be made only on a certificate issued by the relevant person. 16.5 Subject to the provisions of the contract in each case, every variation shall be authorised in writing by the relevant person. Each variation shall include an estimate of the increase or reduction in cost arising from that variation of the contract. 16.6 When the net effect of such variations exceeds the following limits, this shall be reported as soon as possible to the Cabinet or relevant Committee of the Council through the Corporate Financial Monitoring process where the overspend is greater than £10,000 of 10% of the contract sum, whichever is greater. Provided that it shall not be necessary to report such net effect in the case of contracts undertaken under agency or contractual arrangements on behalf of another local or public authority where that authority has approved the cost of the variation. 16.7 Where the relevant person issues a certificate and the amount to be paid on that certificate, when added to amounts previously certified for payment, would result in the contract sum or budgetary provision being exceeded, then the certificate shall be accompanied by a report fully explaining the position from the relevant person to the Chief Finance Officer. 16.8 The final certificate of completion of any contract shall not be issued until the relevant person has produced to the Chief Finance Officer a detailed final statement of account and all relevant documents, if required. 16.9 The Chief Finance Officer shall, to the extent that is considered necessary, examine final accounts for contracts and shall be entitled to make all such enquiries and receive such information and explanations as may be required in order to be satisfied as to the accuracy of the accounts. 16.10 Every works contract and every other contract which is estimated to exceed £60,000 in value or amount shall, where appropriate, include provision for liquidated damages, except where the contract is a partnering contract entered into under the Council’s procurement policy. Where there has been a delay in the completion of a contract and an extension of time is not appropriate to be authorised, the relevant person shall impose the liquidated damages clause in all instances, unless, after consultation with the Monitoring Officer, it is decided it is inappropriate to do so.

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16.11 A report as to final costs under each contract shall, after agreement of the final account, be incorporated into the Post Implementation Review submitted to the Senior Management Team, Cabinet or relevant Committee by the appropriate Director after consultation with the Chief Finance Officer. 16.12 Claims from contractors in respect of matters not clearly within the term of any existing contract shall be referred to the Monitoring Officer for consideration of the Council’s legal liability and, where necessary, to the Chief Finance Officer for financial consideration, before a settlement is reached. 16.13 Where a contractor enters into liquidation or receivers are appointed or the contractor makes arrangement or composition with his/her creditors, the relevant person shall report the full circumstances in writing to the Cabinet or relevant Committee of the Council as soon as they are known to him/her. 16.14 Every Officer and Member of the Council has a responsibility to declare any links or personal interests that they may have with purchasers, suppliers and /or contractors if they are engaged in contractual or purchasing decisions on behalf of the Council, in accordance with established Codes of Conduct. 17. ORDERS FOR WORK, GOODS AND SERVICES

17.1 The following procedures and those in Rule 18 relate primarily to the electronic entry and authorisation of purchase orders and certification of creditor invoices using the Integra financial information system. The same principles apply to non-purchase order invoices and to purchases using procurement (purchasing) cards. 17.2 Official orders shall be issued in advance for all work, goods or services to be supplied to the Council, except for:  supplies of public utility services, or other services, where paid by direct debit;  petty cash purposes;  works on Council properties that fall within the planned maintenance contract administered by the Council’s property services contractor;  such other exceptions as the Chief Finance Officer may approve. Orders for works arranged with the Council’s property services contractor must follow the specific procedures so arranged for this purpose through the Corporate Asset Manager. Initially a work request form, appropriately authorised, should be submitted to the Council’s property services contractor and once a suitable contractor has been arranged to carry out the work, an official order should be raised direct to that contractor. Full details of the procedure are available on SharePoint. In exceptional circumstances where an order cannot be dispatched at the time of making the commitment, the supplier should be given an order number and the Confirmation Order issued not later than the next working day. 17.3 Official orders shall be in the form approved by the Chief Finance Officer and are to be approved only by officers authorised by the appropriate Director who shall be responsible for official orders issued from his department. The Director shall ensure that:  value for money is obtained in all cases, primarily by obtaining and recording alternative quotations for the supply;  the order is allocated to the correct accounting code and that the relevant budget is not exceeded 17.4 Each order should record the agreed price for the supply or the estimated cost of the supply, delivery and invoicing addresses. 17.5 Each order shall conform with the directions of the Council with respect to central purchasing and the standardisation of supplies and materials. 17.6 Orders must never be split to avoid authorisation limits. 17.7 When the work, goods or services to which the order relates has been received or carried out, appropriate confirmation of this must be obtained (normally in the form of a delivery note,

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advice note or works schedule) – only then should the receipt be recorded by means of the entry of a Goods Received Note (GRN) in Integra. 17.8 Procurement cards will be issued to Officers based on an assessment of needs. Cardholders must follow procedures laid down by the Chief Finance Officer: cards will be withdrawn if the facility is misused. 18. PAYMENT OF ACCOUNTS

18.1 Apart from Credit Card, petty cash and other payments from imprest accounts, the payment of monies due from the Council shall be by BACS payment or other instrument drawn on the Council’s banking account by the Chief Finance Officer. All requests for payment submitted to the Chief Finance Officer must be in the form prescribed by him/her. 18.2 The Director issuing an order is responsible for ensuring that the work, goods or services to which an account relates has been carried out or supplied as requested to a satisfactory standard. Normally this is evidenced on Integra by entry of a Goods Received Note, or for a non-purchase order invoice by completion of the appropriate boxes on the certification voucher. 18.3 Any significant price variation between the purchase order and the resulting invoice will require certification by an appropriate officer. Non-purchase order invoices will require manual certification by signature. Before certifying an account, the certifying officer shall, save to the extent that the Chief Finance Officer may otherwise determine, satisfy himself that: (a) the work, goods or services to which the account relates have been received, carried out, examined and approved. (b) the quantities, prices, extension, calculations, discounts, other allowances, credits and tax are correct (c) the account has not been previously passed for payment and is a proper liability of the Council 18.4 Periodically a list of officers authorised to approve such records shall be circulated by the Chief Finance Officer to each Director together with specimen signatures for confirmation by that Director. The Director shall ensure that this list be amended on the occasion of any changes to signatories. The Director shall ensure that adequate separation of duties exists by arranging that the officer certifying an account for payment is a different person to the one who ordered the supply. 18.5 Properly certified accounts (either by electronic means, in terms of purchase order price variations, or by manual signature) shall be passed without delay to the Chief Finance Officer who shall examine them to the extent that he considers necessary, for which purpose he shall be entitled to make such enquiries and to receive such information and explanations as he/she may require. 18.6 Amendments should not normally be made to an invoice. Where an amendment is required or where an invoice is received that does not quote a purchase order number and that invoice falls within the ordering criteria, the invoice shall be returned to the supplier for replacement. 18.7 Accrual of expenditure is normally dealt with by entry of Goods Received Notes in the Integra system. For any expenditure that falls outside the purchase ordering system, each Director shall, as soon as possible after 31 March, and not later than a date specified by the Chief Finance Officer in each year, notify the Chief Finance Officer of all outstanding expenditure for goods and services relating to the previous financial year which has not been paid at that date. 19. PAYROLL

19.1 The payment of all salaries, pensions, compensation and other emoluments to all employees or former employees of the Council shall be made by the Chief Finance Officer or under arrangements approved and controlled by him/her.

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19.2 Each Director shall notify the Assistant Director ResourcesPayroll team as soon as possible and in the form prescribed by the Chief Finance Officer him/her, of all matters affecting the payment of such emoluments, and in particular: (a) appointments, resignations, dismissals, retirements, suspensions, secondments and transfers (b) absences from duty for sickness or other reason, apart from approved leave (c) changes in remuneration, other than normal increments and pay awards and agreements of general application (d) information necessary to maintain records of service for superannuation, income tax, national insurance, etc. 19.3 Appointments of all employees shall be made in accordance with the regulations of the Council and the approved grades and rates of pay. 19.4 All time records or other pay documents shall be in a form prescribed or approved by the Assistant Director Resources and shall be certified in manuscript by or on behalf of the appropriate Director. The names of officers authorised to certify such records shall be sent to the Assistant Director Resources and Payroll team by each Director together with specimen signatures and shall be amended on the occasion of any change. 20. TRAVELLING, SUBSISTENCE AND ATTENDANCE ALLOWANCES

20.1 All claims for payment of car allowances, subsistence allowances, travelling and incidental expenses shall be submitted to the Chief Finance Officer, duly certified in a form approved by him/her, made up to a specified day of each month, within a prescribed period. The names of officers authorised to certify such records shall be sent to the Chief Finance Officer by each Director together with specimen signatures and shall be amended on the occasion of any change. 20.2 The certification by or on behalf of the Director shall be taken to mean that the certifying officer is satisfied that the journeys were authorised, the expenses properly and necessarily incurred and that the allowances are properly payable by the Council. 20.3 Officers shall normally submit claims for expenses at monthly intervals. Any claims submitted more than two months after the expenses were incurred will be paid only with the express approval of the Chief Finance Officer. All claims for a financial year are to be submitted within one month of 31 March. 20.4 Payments to Members, including co-opted members of the Council or its Cabinet, Committees or Sub-Committees, Panels and Working Parties, who are entitled to claim travelling or other allowances will be made by the Chief Finance Officer upon receipt of the prescribed form duly completed. Any claims submitted more than two months after the expenses were incurred will be paid only with the express approval of the Monitoring Officer. All claims for a financial year are to be submitted within one month of 31 March. 21. INCOME

21.1 The collection of all money due to the Council shall be under the supervision of the Chief Finance Officer and all systems, procedures and documentation involved in the assessment, collection, receipt and recovery of all income due to the Council shall be approved by him/her. All account forms shall require remittances to be sent in accordance with instructions issued by the Chief Finance Officer. 21.2 Subject to arrangements made by the Chief Finance Officer, each Director shall either furnish him/her with such particulars in connection with work done, goods supplied or services rendered and of all other amounts due as may be required to record correctly all sums due to the Council and to ensure the prompt rendering of accounts for the recovery of income due, or shall arrange to record those transactions and details in the appropriate system within his Department. 21.3 When raising sales invoices on the Integra system, each Director shall ensure that the customer details, fees, VAT treatment, period covered and details of the debt are recorded accurately and that the debt can be substantiated if disputer by the customer.

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21.4 Recovery of outstanding sundry debts shall be administered by the Chief Finance Officer but responsibility for the debt lies with the originating Director, who shall liaise with the debtor and instruct the Chief Finance Officer on the best means of recovery. 21.5 The Chief Finance Officer shall be notified promptly of all money due to the Council including contracts, leases and other agreements and arrangements entered into which involve the receipt of income by the Council and the Chief Finance Officer shall have the right to inspect any documents or other evidence in this connection as may be decided. 21.6 All receipt forms, books, tickets and other such items shall be ordered and supplied to Departments by the Chief Finance Officer, who shall be satisfied with the arrangements for their control. 21.7 All amounts received by an authorised officer of the Council shall be immediately acknowledged by the issue of an official receipt, ticket or similar voucher. 21.8 All income received by an officer on behalf of the Council shall without delay be paid to the Chief Finance Officer, or, as directed, to the Council’s banking account or transmitted directly to any other body or person entitled thereto. No deduction may be made from such income save to the extent that the Chief Finance Officer may specifically authorise. Each officer who so banks income shall enter on the paying-in slip a reference to the related debt (such as the receipt number, invoice number or the name of the debtor) or otherwise indicate the origin of the cheque. On the reverse of each cheque, the officer shall enter the name of his/her Assistant Directorate, office or location, or otherwise identify the cashier. When a receipt is issued the receipt number should be indicated on the reverse of the cheque. Where the banking covers a range of income sources the officer making the banking must ensure a return analysing the income and agreeing to the amount of the banking is forwarded to the Chief Finance Officer at the time of the banking. 21.9 Personal cheques shall not be cashed out of money held on behalf of the Council. 21.10 Every transfer of official money from one member of staff to another shall be evidenced in the records of the Departments concerned by the signature of the receiving officer, or by an official receipt. 21.11 Each Director shall as soon as possible after 31 March, and not later than a date specified by the Chief Finance Officer in each year, notify the Chief Finance Officer of all outstanding income due relating to the previous year which has not previously been notified. 21.12 At least once per year, each Director shall, in consultation with the Chief Finance Officer, review scales of charges or fees relating to his/her Directorate in accordance with the Corporate Charging Policy, budget timetable and budget strategy. Consultation shall be carried out in accordance with the Corporate Charging Policy. Proposals should be approved by Cabinet or Committee as appropriate. 22. EXTERNAL ARRANGEMENTS (PARTNERSHIPS, EXTERNAL FUNDING ARRANGEMENTS AND WORK FOR THIRD PARTIES)

22.1 Partnerships are likely to play a key role in delivering community strategies and in helping to promote and improve the well-being of the area. Local authorities are working in partnership with others – public agencies, private communities, community groups and voluntary organisations. On other occasions the Council may agree to provide services funded by outside bodies, sometimes acting as an accountable body. There may be occasions when the Council is requested to provide services on behalf of other bodies, often provided under a Service Level Agreement. The External Arrangements Rules deal with the regulation and control of such arrangements. These rules should be followed in conjunction with those Rules. 22.2 In particular, the key controls for Assistant Directors are:- Partnerships:

(a) If appropriate, tTo be aware of their responsibilities under the Council’s Financial Procedure Rules and the Contract Procedure Rules (b) To ensure that risk management processes are in place to identify and assess all known risks

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(c) To ensure that project appraisal processes are in place to assess the viability of the project in terms of resources, staffing and expertise. (d) To agree and accept formally the roles and responsibilities of each of the partners involved in the project before the project commences. (e) To communicate regularly with other partners throughout the project so that problems can be identified and shared to achieve their successful resolution. (f) To ensure the Council’s insurers are informed of the proposals and suitable insurance is arranged. External Funding Arrangements:

(g) To ensure that key conditions of funding and any statutory requirements are complied with and that the responsibilities of the Accountable Body are clearly understood. (h) To ensure that funds are acquired only to meet the priorities approved in the policy framework by the Council. (i) To ensure that any match-fuinding requirements are given due consideration prior to entering into long-term agreements and that future revenue budgets reflect these requirements. (j) To ensure that the consequences for the Council, or for any partners for whom the Council may be acting as Agent, of exceeding the funding or expenditure requirements are clearly set out and understood. (k) To ensure the consequences for the Council’s VAT position are understood. (l) To ensure the Council’s insurers are informed of the proposals and suitable insurance is arranged. Work for Third Parties

(m) To ensure that proposals are costed properly in accordance with guidance provided by the Chief Finance Officer including consideration of any VAT implications. (n) To ensure that contracts are drawn up using guidance provided by the Chief Finance Officer and that the formal approvals process is adhered to. (o) To issue guidance with regard to the financial aspects of third party contracts and the maintenance of the contract register. (p) To ensure the Council’s insurers are informed of the proposal and suitable insurance is arranged. 23. PRUDENTIAL FRAMEWORK

23.1 The Council is obliged to adheres to the requirements of the CIPFA Code on a Prudential Framework for Local Authority Capital Finance. The Chief Finance Officer is responsible for preparing the indicators stipulated by the Code and reporting them to Council for approval. The indicators are to be reviewed at least annually and on major amendments to the Capital Programme. 23.2 The Prudential Indicators are to be taken into account in managing the Council’s finances, particularly its projections of future expenditure and resources. 23.3 The Council is required to approve and keep up to date a Treasury Management Policy Statement and agree an annual Strategy Statement to direct its treasury activities. 23.4 Capital financing decisions are to be made in accordance with the Council’s Treasury Management Policy and Strategy and the Prudential Code. 23.5 The Council’s performance against its prudential indicators should be monitored regularly by the Chief Finance Officer and reported to Council and the Overview and Scrutiny Committee at least once during each year and at the end of each year. 24. INVESTMENTS, BORROWINGS, LEASING AND TRUST FUNDS

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24.1 All investments and borrowing of money and leasing arrangements shall be made in the name of the Council. 24.2 All investment and borrowing transactions shall be carried out in accordance with the Council’s approved Treasury Management Policy and Strategy Statements. 24.3 All securities the property of or in the name of the Council and the title deeds of all property in its ownership shall be kept in the custody of the Monitoring Officer. 24.4 The Chief Finance Officer shall be the Council’s registrar of stocks, bonds and mortgages and shall maintain records of all leasings and borrowing of money by the Council. 24.5 All trust funds shall wherever possible be in the name of the Council. 24.6 All officers acting as trustees by virtue of their official position shall deposit all securities etc. relating to the trust with the Chief Finance Officer unless the deed otherwise provides. 24.7 The Chief Finance Officer shall seek and accept tenders for leasing facilities for the acquisition of assets where this is an appropriate method of financing subject to consultation with the relevant Portfolio Holder(s) and Director(s). 25. LAND AND BUILDINGS

25.1 The Monitoring Officer shall maintain a terrier or register of all Land and Buildings owned by the Council and a register of leases recording the responsible Assistant Director, purpose for which held, location, extent and plan reference, purchase details, particulars of nature of interest and rents payable and particulars of tenancies granted. 25.2 All contracts for the acquisition or disposal of land/buildings shall be signed or sealed and the Monitoring Officer shall arrange for the secure custody of all title deeds. 25.3 The Monitoring Officer shall be responsible for instituting routine inspection of all Council Land and Buildings and ensuring that schedules of maintenance are prepared and work instigated and supervised on behalf of the Council as advised. 26. INVENTORIES

26.1 Inventories recording furniture, fittings and equipment, plant and machinery held by each Directorate shall be maintained by the Assistant Director concerned. The form of the inventories shall be settled by the appropriate Assistant Director after consultation with the Chief Finance Officer. All items contained therein shall, as far as possible, be suitably marked as council property. 26.2 Each Assistant Director shall be responsible for maintaining at least an annual physical check of all items on the inventory, for taking action in relation to surpluses or deficiencies and revising the inventory accordingly. In some areas, more frequent spot-checks may be appropriate in addition. The Chief Finance Officer must be informed of any significant discrepancies discovered on checking inventories. 26.3 A copy of each inventory should be submitted to the Chief Finance Officer when requested. Where assets are to be disposed of the relevant Assistant Director shall be required to keep comprehensive records of the disposal. 26.4 The Council’s property shall not be removed otherwise than in accordance with the ordinary course of the Council’s business or used otherwise than for the Council’s purposes except in accordance with specific directions issued by the Assistant Director concerned. 26.5 Where assets other than land and property are to be disposed of the relevant Assistant Director shall be required to ensure Best Consideration is obtained and shall be required to keep comprehensive records of the disposal. 27. STOCKS AND STORES

27.1 Each Assistant Director shall be responsible for the care and custody of the stocks and stores in his/her Department and for the maintenance of appropriate records in a form approved by the Chief Finance Officer.

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27.2 Stocks shall not be in excess of normal requirements except in special circumstances with the approval of the Assistant Director concerned. 27.3 Assistant Directors shall arrange for periodical test examinations of stocks by persons other than storekeepers and shall ensure that all stocks are checked at least once in every year. 27.4 The Chief Finance Officer shall be entitled to receive from each Assistant Director such information as he/she requires in relation to stores for the accounting, costing and financial records. Surplus materials, stores or equipment shall be disposed of by competitive tender or public auction unless the Cabinet decides otherwise in a particular case. Where the aggregate value of surplus materials, stores or equipment etc. to be disposed of does not exceed £5,000 in any one financial year, the appropriate Assistant Director, in conjunction with the Chief Finance Officer, shall be authorised to make the appropriate arrangements for disposal. 28. AMOUNTS TO BE WRITTEN-OFF

28.1 The Chief Finance Officer is authorised to write-off debts which for all accounts for an individual debtor do not exceed £20,000. 28.2 The Chief Finance Officer is authorised to write-off stocks and stores up to £20,000 for any one item in any one financial year. 28.3 The Chief Finance Officer, in consultation with the Portfolio Holder responsible for financial matters, be authorised to write-off irrecoverable business rate debts in excess of £20,000 but which do not exceed £100,000 and in all cases exceeding £100,000 where further recovery action is impossible because the debtor is subject to bankruptcy, liquidation or an administration order. In such cases to comply with requirements of the Official Receiver and other similar bodies the debt may be written-off on Council records prior to formal approval by the Chief Finance Officer providing that approval is given within 14 days. 28.4 The Chief Finance Officer shall be supplied with such information with regard to write-offs as is considered necessary. 28.5 The Director People and Places is authorised to write-off debts relating to penalty charge notices. 28.6 For debts which fall outside the categories stated in paragraphs 28.1 to 28.5 approval will be required from Cabinet or the relevant committee. This will be included in the Corporate Financial Monitoring process. 29. SECURITY

29.1 Each Assistant Director is responsible for maintaining proper security at all times for all buildings, stocks, stores, furniture, equipment, cash etc., under his/her control. 29.2 Maximum limits for cash holdings shall be agreed with the Chief Finance Officer and shall not be exceeded without his/her express permission. 29.3 Persons responsible for keys to safes and similar containers shall make arrangements to ensure the safe custody of the keys at all times; the loss of any such keys must be reported to the Chief Finance Officer immediately. 29.4 Each Assistant Director shall maintain a register of key holders in a secure place. 29.5 The Assistant Director Performance and Innovation shall be responsible for maintaining proper security and privacy as respects information held in the computer installation. 29.6 The responsibility for all hardware, software, information held and ensuring that the standards as set by the Assistant Director Performance and Innovation within each Directorate rests with the appropriate Director. 29.7 The security of personal possessions in the work environment is the responsibility of the owner and the Council will accept no responsibility for the security of any items not necessary for the service of the Council. 30. INSURANCES

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30.1 The Chief Finance Officer shall effect all insurance cover, where appropriate by competitive tendering, and negotiate and settle all claims in consultation with appropriate Assistant Directors and the Solicitor to the Council where necessary. 30.2 Assistant Directors shall notify the Chief Finance Officer immediately of all new risks, properties or vehicles which may require to be insured and of any alterations affecting existing insurances. 30.3 Assistant Directors shall forthwith notify the Chief Finance Officer in writing of any loss, liability or damage or any event likely to lead to any claim against the Council. 30.4 All appropriate employees of the Council shall be included in a suitable fidelity guarantee insurance. 30.5 The Chief Finance Officer shall annually, or at such other period as is considered necessary, review the level of risk and external insurance in consultation with the appropriate Assistant Director. 31. FINANCIAL STATIONERY

31.1 All official receipt forms, cheques, tickets, stores requisition notes, order books and other documents representing money shall be ordered, controlled and issued by and be in the custody of the Chief Finance Officer, who shall supply the requirements of alleach Directorates. A register shall be kept by him of all receipts and issues of such documents, and each issue shall be acknowledged by the signature of the officer to whom the issue is made, the quantity issued to be determined by ascertained needs. The officer responsible for the stationery shall ensure that it is stored in a secure place and that unauthorised access is prevented. 32. INDEMNITIES

32.1 Directors mustshould consult with the Chief Finance Officer and Monitoring Officer regarding the terms of any indemnity which the Council is requested to give. 33. IRREGULARITIES

33.1 Whenever any matter arises which involves, or is thought to involve, financial irregularities concerning cash, stores or other property of the Council, or any suspected irregularity in the exercise of its functions the Director concerned shall immediately notify the Chief Finance Officer who shall take such steps as he/she considers necessary by way of investigation and report as detailed in the Anti-Bribery, Fraud and Corruption Policy. Directors should, meanwhile, take any appropriate action to prevent further loss and secure records and documents against removal or alteration. 33.2 The Chief Finance Officer should decide whether to involve the Police in matters of serious irregularities and inform the Leader or appropriate Chairman accordingly. 33.3 Full details of procedures for dealing with suspected irregularities are given in the Anti-Bribery, Fraud and Corruption Policy. Definitions of principal irregularities are: Fraud is ‘the intentional distortion of financial statements or other records by persons internal or external to the Authority which is carried out to conceal the misappropriation of assets or otherwise for gain’. Theft is ’dishonestly appropriating property belonging to another with the intention of permanently depriving them’. Corruption is ‘the offering, giving, soliciting or acceptance of an inducement or reward which may influence the action of any person’. Bribery is the offer, promise or giving of a financial or other advantage to another person, intending to induce them to perform improperly a relevant function or activity, or to reward a person for such improper performance. 33. DEPARTURES TO FINANCIAL PROCEDURE RULES

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33.1 In the event of it being impracticable to apply any of these rules in any particular case, the Chief Finance Officer is authorised to waive compliance, subject to reporting any major departures to the next following Cabinet.

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CONTRACT PROCEDURE RULES

SECTION 1: SCOPE OF CONTRACT PROCEDURE RULES

1. BASIC PRINCIPLES 2. DIRECTORS’ AND ASSISTANT DIRECTORS’ RESPONSIBILITIES 3. EXEMPTIONS 4. FRAMEWORK AGREEMENTS 5. CONSORTIA 6. COLLABORATIVE AGREEMENTS 7. PARTNERSHIPS 8. ACCOUNTABLE BODY 9. E-PROCUREMENT 10. RELEVANT CONTRACTS SECTION 2: COMMON REQUIREMENTS

11. STEPS PRIOR TO PROCUREMENT 12. TRANSFER OF UNDERTAKINGS PROTECTION OF EMPLOYEES 13. NON-COMMERCIAL CONSIDERATIONS, EQUALITIES & COMMUNITY BENEFIT 14. RECORDS 15. TENDER PROCEDURE SECTION 3: CONDUCTING PROCUREMENT AND DISPOSAL

16. FINANCIAL LIMITS AND THRESHOLDS 17. AWARD CRITERIA 18. QUOTATIONS 19. INVITATION TO TENDER 20. SUBMISSION AND RECEIPT OF TENDERS/QUOTATIONS 21. OPENING OF TENDERS/QUOTATIONS 22. CLARIFICATION PROCEDURES 23. EVALUATION 24. AWARD SECTION 4: CONTRACT AND OTHER FORMALITIES

25. CONTRACT FORMALITIES 26. SAFEGUARDS FOR DUE PERFORMANCE 27. PREVENTION OF CORRUPTION 28. DECLARATION OF INTEREST SECTION 5: CONTRACT MANAGEMENT

29. MANAGING CONTRACTS 30. RISK ASSESSMENT AND CONTINGENCY PLANNING 31. CONTRACT MONITORING, EVALUATION AND REVIEW 32. GLOSSARY

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BRIEF GUIDE TO CONTRACT PROCEDURE RULES

These Contract Procedure Rules (issued in accordance with section 135 of the Local Government Act 1972) are intended to promote good procurement practice and public accountability and deter corruption, ensuring value for money on all Council spend. The rules are the best defence against allegations that a procurement process has been conducted unlawfully. Legal challenges against public procurement are increasing with potentially serious consequences for the Council and its officers if procurement activity is not undertaken to the highest standards of probity and professionalism. These Rules are complimented by the Sustainable Procurement and Commissioning Strategy and the Procurement Toolkit maintained by the Procurement Team. The guidance can be found on the Council’s SharePoint. For the purposes of these rules, where there is a requirement for communication to be in writing, this shall be deemed to include e-mail transmissions as well as hard copy. In addition, the term “contract”, refers to both paper/hard copy documents and process and their replication by electronic media. In accordance with the Constitution, the Monitoring Officer in consultation with the Chief Finance Officer, is authorised to make technical amendments from time to time to these Contract Procedure Rules. Important Tips.

 Follow the rules if you procure goods, services or building work. This is very much in your own interest as well as that of the Council.  Ensure that all known future procurements projects are placed on the Council’s Procurement Schedule in advance as part of the annual review or as they arise.  Take all necessary legal, financial, HR and professional advice. Do this early in the procurement process to avoid abortive effort and to allow time for consideration of all relevant issues. This to include consideration of the type of contract and if it is to be under seal (all contracts over £60,000 should be under seal unless the Monitoring Officer agrees it is not expedient to do so).  Declare any personal conflict of interest, financial or otherwise, in a contract. Corruption is a criminal offence.  Check you have correct and appropriate authorisation before you proceed.  Check whether there is an existing contract or an appropriate framework agreement that you can make use of before undergoing a competitive process.  Consider your procurement objectives and available procurement routes such as collaboration, use of framework agreements or exemptions/waivers at the outset.  Consider risk, including non-financial factors, at the outset e.g. data protection, safeguarding.  If your procurement affects any of the Council’s land and building you must contact the Corporate Asset Manager.  Use the Council’s chosen e-tendering portal, The Chest.  Use the Procurement Toolkit that can be found on SharePoint.  Ensure you have agreed your contract documents including: o selection and award criteria, o weightings and o draft terms and conditions including the need for a performance bond before you publish any OJEU advert, Selection Questionnaire (SQ) (previously known as a Pre-qualification Questionnaire (PQQ)) or tender.  Pre-market engagement in now allowed and encouraged under the Public Contracts Regulations 2015. The nature of the pre-market engagement should be agreed with the Procurement Team. Once the procurement has commenced contact should be via The Chest only.

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 Tenders take time with minimum timescales specified for some aspects of the process. Ensure you consult with the Procurement Team to draw up an appropriate procurement timetable. For tenders above the OJEU threshold minimum timescales are mandatory by law.  Take into account mobilisation periods, elections, public holidays and other events which may impact the decision making or implementation process.  Take into account any approval process (including Forward Plan) if required by the Procurement Schedule or if your procurement is not on the Procurement Schedule.  Ensure your service and any potential changes being considered as part of this procurement are assessed for their ultimate social value, impact on equality and impact on sustainability before proceeding.  Keep bids confidential during the bidding process.  Keep records of dealings with suppliers and contractors.  Complete a written contract where appropriate, and Council order before the supply of goods, services or works begin.  Nominate an appropriately qualified contract manager with responsibility for ensuring the contract delivers as intended.  Share lessons learned about what went well or not so well during the procurement, feedback to the Procurement Team.  Assess each contract 6-12 months after award to see how well it met the procurement needs and Value for Money requirements.  Remember that all information regarding your procurement process could be subject to a Freedom of Information Request or Environmental Information Regulations request. Requests for information concerning tender processes and suppliers/contractors are relatively common and publication of tenders is part of the movement towards greater transparency. However, before releasing any information consult the Data Protection Principal Performance and Intelligence OOfficer and the Procurement Team.  Under the Government’s transparency requirements all contracts over £10,000 must be included on the electronic contracts register once the contract is awarded or extended. This should also include waivers and exemptions. SECTION 1: SCOPE OF CONTRACT PROCEDURE RULES

1. BASIC PRINCIPLES

1.1 The following basic principles shall apply to all procurement and disposal procedures and contracts:-  All procurement activity will comply with all applicable the EU Treaty and Procurement Directives, UK Legislation, the Council Constitution and all other relevant policies and procedures;  The Council will undertake procurement activity using the most efficient and effective methods and will select the most appropriate delivery mechanisms to ensure Value for Money;  All procurement activity will include due consideration of social, economic and environmental factors and will be assessed on Whole Life Costing;  Robust contract management will support improved service delivery through continuous improvement in the quality of goods, works and services; and  Procurement will be fair, open and transparent and undertaken to the highest standards of probity, integrity, honesty and professionalism. 1.2 These rules apply equally to tenders and requests for quotations. 1.3 The designated contract manager is responsible for ensuring All contracts must have an appropriate funded budget. 1.4 These Contract Procedure Rules shall be reviewed and updated annually. These Rules and Amendments to them shall be agreed and approved by the full Council.

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2. DIRECTORS’ AND ASSISTANT DIRECTORS’S’ RESPONSIBILITIES

2.1 Directors and Assistant Directors shall:- 2.1.1 Review and update the Council’s Procurement Schedule (including exemptions and waivers) at least annually. 2.1.2 Ensure the central registers of: (a) contracts completed by signature, rather than by the Council’s seal and arrange their safekeeping on Council premises; (b) exemptions recorded under Rule 3; (c) are updated for all procurements. 2.1.3 Compile and keep under continuous review a written schedule of all standing delegations made by them under these Contract Procedures 3. EXEMPTIONS AND WAIVERS

Exemptions

3.1 Nothing in these Rules shall require written quotations or tenders to be invited if:- (a) the total estimated value is less than £10,000 although obtaining quotes to ensure best value is encouraged. Where quotations have been sought they should be retained in a format agreed by the Procurement and Contracts Manager; or (b) the goods, services or works are proprietary or of such a specialised nature that they can only be obtained from one particular supplier; or are sold only at a fixed price and no reasonably satisfactory alternative is available; or (c) the prices of the goods or materials are wholly controlled by trade organisations or Government Order and no reasonably satisfactory alternative is available; or (d) a purchase is to be made at a public auction, provided that the person bidding is satisfied that the cost of the purchase is reasonable compared to the cost of alternative methods of purchase; or (e) the purchase is through an alternative contract or Framework Agreement available to the Council and which has been put together as a result of a lawfully tendered competition; or (f) the contract is with professional persons for the provision of services where the personal skill of those persons is of primary importance; or (g) for other reasons certified by the relevant Director there would be no genuine competition; or (h) the contract is for the execution of work, the supply of goods, or services certified by the relevant Director as being required so urgently as not to permit the invitation of quotations or tenders; or (i) the works to be executed or the goods, works or services fall within the scope of the existing contract; an extension of an existing contract as stated in the initial contract agreement; or (j) the works to be executed or the goods, works or services fall within the scope of an existing contract where there is a genuinely justifiable case to use the existing contract to maintain continuity of supply. Extensions will not be considered where to do so would breach EU Procurement legislation. The Procurement Team and the Chief Finance Officer must be consulted before an exemption is agreed by the relevant Director under clauses (b) to (j). These exemptions will be included in the Procurement Schedule or, if issued under clauses (b) to (j), will be reported by the relevant Director as part of the Corporate Financial Monitoring process. Waiving the Rules

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3.2.1 Subject to UK and EU law any of these rules may be waived in consultation with the Procurement Team and the Chief Finance Officer. Waivers should be included in the Procurement Schedule to be approved by Council as part of the budget setting process. If this is not possible, waivers shall be approved by the Monitoring Officer where they are satisfied that to do so is justified in special circumstances and those special circumstances and the advantages and disadvantages of the alternative options are identified. Waivers should be reported to the next meeting of the Cabinet or relevant Committee of the Council if over £100,000 or by the relevant Director as part of the Corporate Financial Monitoring process if less than £100,000. Waivers relating to insurance claims where the procurement requirements of the insurer have been followed will only need to be reported as part of the Corporate Financial Monitoring process even if over £100,000. 3.2.2 All waivers will be recoded centrally in a format agreed by the Procurements and Contracts Manager. 4. FRAMEWORK AGREEMENTS

4.1 Where the Council identifies and adopts suitable Framework agreement(s) that have been tendered and awarded by central or local government or other public body or statutory undertaker the Council may benefit from using those agreements without entering into a separate procurement process, provided:- 4.1.1 There are one or more suitable suppliers who are party to the framework; 4.1.2 An options appraisal proportionate to the contract value has been conducted to ensure the council is obtaining best value; 4.1.3 The duration of any call off contract that results is calculated to take account of the nature and volatility of the market for the goods, works or services that are being procured; 4.1.4 All framework instructions are complied with, such as those relating to:-  which organisations can access the framework;  use of direct award or mini competition;  terms and conditions; and  contract duration; 4.1.5 The use of the Framework Agreement is recorded in the electronic Contract Register. This should include framework reference numbers, lot numbers and the name and company registration number (where appropriate) of the supplier. 5. CONSORTIA

5.1 Where the Council joins one or more bodies/contracting authorities in a consortium or partnership and the contract is being tendered and awarded by that consortium or partnership, the Council shall not be required to invite further tenders, provided that these Rules have been followed to the extent that they are not inconsistent with the procedure(s) adopted by that consortium or partnership for awarding contracts. 6. COLLABORATIVE CONTRACTS (EXCLUDING FRAMEWORK AGREEMENTS)

6.1 In order to secure Value for Money, the Council may enter into collaborative procurement arrangements. This may be with or through another local authority, government department, statutory undertaker or public service purchasing consortium. The views of the relevant Portfolio Holder shall be sought before any decision is made as to whether to enter into collaborative procurement arrangements. 6.2 Before undertaking a collaborative agreement, Officers should contact the Procurement Team. Fundamentally it is the responsibility of the lead authority putting in place a collaborative procurement process or framework agreement to ensure the process is fully compliant with all relevant procurement legislation. However, the Council has a clear responsibility not to utilise any contractual agreement which is not fully compliant and can be held accountable should they do so. 6.3 Where collaborative agreements are entered into the Officer must:-  clarify who is the contracting authority;

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 ensure there is a legal agreement that protects the interests of the Council, which may include the use of a memorandum of agreement;  ensure that where the overall contract values are above EU Thresholds the contract was let in accordance with EU procedures and that any procurement activity below the EU Thresholds is conducted with due regard to the EU Treaty-based principles; and  ensure that the duration of any call off contract is calculated to take account of the nature and volatility of market for the goods, works or services being procured. 7. PARTNERSHIPS

7.1 Whenever the Council enters into a formal partnership the Council will ensure Governance arrangements are agreed in writing and include tendering responsibilities and arrangements. 7.2 Where the Council acts as Lead Authority in the partnership these Contract Procedure Rules shall whenever practicable be followed. 7.3 Before entering into contracts, written agreements shall be made with funding partners regarding the level of and conditions attached to any funding. 7.4 Where the Council is not the lead partner, the tendering procedure rules agreed by the partnership shall be followed. 8. ACCOUNTABLE BODY

8.1 Tendering arrangements must conform with this Council’s and any appointed partner(s) Contract Procedure Rules, and be capable of providing evidence of this to the Council, its agents and auditors. N.B. Failure to follow the funding body’s tendering rule is likely to result in funds being clawed back, leading to a potential budget deficit to be financed by the Council 9. E-PROCUREMENT

9.1 The use of e-procurement technology does not negate the requirement to comply with all elements of these Contract Procedure Rules, particularly those relating to competition and Value for Money. 10. RELEVANT CONTRACTS

10.1 All Relevant Contracts must comply with these Contract Procedure Rules. A Relevant Contract is any arrangement made by, or on behalf of, the Council, other than those in 10.2 below. 10.2 Relevant Contracts do not include:  contracts of employment which make an individual a direct employee of the Council, or  agreements regarding the acquisition, disposal, or transfer of land (for which the Financial Framework shall apply). 10.3 Providing Services to External Organisations  The Monitoring Officer, the Chief Finance Officer, other Directors as appropriate, Financial Services (insurance) and the Procurement Team must be consulted where contracts to work for organisations other than the Council are contemplated. SECTION 2: COMMON REQUIREMENTS

11. STEPS PRIOR TO PROCUREMENT

11.1 As part of the budget process for the following financial year, the Council will prepare a Procurement Schedule. This will be considered by Overview and Scrutiny Committee, Cabinet and approved by Council as part of the Budget and Policy Framework and will be included in the Forward Plan. 11.2 The Procurement Schedule will include:- (a) the title of the contract;

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(b) the service and officer responsible; (c) a brief summary of the goods or services covered; (d) proposed start and end dates; (e) a review date and extension period (if applicable); (f) estimated value by band (Under £10k, £10k - £100k, Over £100k to OJEU, Over OJEU); (g) the process to be followed, if known (e.g. request for quotation, invitation to tender, use of existing framework, full OJEU); and (h) the proposed decision route (officer Administrative Decisions, DED, Cabinet) 11.3 Each Assistant Director is responsible for ensuring the Procurement Schedule is updated. It should include waivers and exemptions. 11.4 At the beginning of each financial year the Council shall publish a Prior Information notice (PIN) in the Official Journal of the European Union (OJEU) listing the contracts for supplies or services above the relevant EU thresholds that it expects to procure during that financial year. In relation to works contracts the Council shall publish a PIN as above when the works have been approved. The formal advice of the Monitoring Officer must be sought for the following contracts:  where the Contract value exceeds the EU threshold  those involving leasing arrangements, where the advice of the Chief Finance Officer will also be required  where there may be significant Intellectual Property Rights, copyright and confidentiality considerations (e.g. in the case of consultancies)  where risk assessments show the contract to be of medium or high risk or those that are complex in any other way. 11.5 Tenders and Requests for Quotation shall wherever practicable be widely and appropriately advertised to ensure equality of opportunity for potential suppliers to compete if they so choose. 11.6 Officers must ensure that appropriate authorisation has been given to proceed with the procurement and that the processes within the financial regulations are followed. 11.7 Officers must ensure that provision for resources for the management of the contract and for support from internal specialists, for its entirety, have been identified and where necessary included in a business case. 11.8 Officers must assess the procurement process in a manner commensurate with its complexity and value. Officers must:-  appraise the need for the expenditure and its priority;  define the objectives of the procurement process;  conduct an options appraisal to consider how the contract should be packaged and what procurement method is most likely to achieve the objectives and demonstrate value for money, including internal or external sourcing, partnering and collaborative procurement arrangements;  assess the risks associated with the procurement process and how to manage them;  consult the Corporate Asset Manager for all procurement relating to the Council’s land and buildings;  consult end users, internally and externally, about their expectations, the proposed procurement method, and expected contract standards and performance;  consider what terms and conditions (T&Cs) should be used, including use of:- o Council standard T&Cs for straight forward procurements; o the most recent edition of professional/industry standard T&Cs where appropriate (e.g. JCT Minor Works Contract); o appropriate levels of insurance;

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o specialist T&Cs drafted by Legal Services for more complex, high spend or high risk procurements; and o the T&Cs relating to any framework (if applicable);  ensure conflicts of interest are identified, including where staff members have, directly or indirectly, a financial, economic or other personal interest which might be perceived to compromise their impartiality and independence in the procurement process. Any potential conflicts should be identified to the Monitoring Officer; and  set out these matters in writing if the Contract value of the Procurement exceeds £25,000. 11.9 The Chief Finance Officer will set, from time to time, default levels of insurances appropriate for different types of procurement/contracts. These default levels can only be reduced with the approval of the Chief Finance Officer. 12. TRANSFER OF UNDERTAKINGS (PROTECTION OF EMPLOYMENT) REGULATIONS 2006 (TUPE)

12.1 In all cases where a request for Quotation or Invitation to Tender for services may result in a transfer of employees to or from the Council the Council will:-  issue a statement on the application of the Acquired Rights Directive(s) and the Transfer of Undertakings (Protection of Employment) Regulations 2006; and  consult staff who may be affected. 13. NON-COMMERCIAL CONSIDERATIONS, EQUALITIES & COMMUNITY BENEFIT

13.1 Under procurement law, public bodies are only able to take social and environmental matters into account in the decision to award a contract to the extent that those matters are directly relevant to the subject matter of the contract. However, in compliance with public procurement law, public bodies are now required to consider how social, economic and environmental improvements can be achieved through procurement. 13.2 Inclusion of such criteria in specifications should be undertaken in accordance with the Sustainable Procurement & Commissioning Strategy and the Procurement Toolkit. 14. RECORDS

14.1 All contractual documents associated with Requests for Quotations and Tenders from successful and unsuccessful suppliers must be retained in accordance with the clauses below:- 14.1.1 The method for obtaining bids 14.1.2 copies of public notices 14.1.3 any Contracting decision including exemptions and the reasons for it 14.1.4 the shortlisting criteria and scoring 14.1.5 the Award criteria and scoring 14.1.6 the reason if the lowest price is not accepted 14.1.7 Tenders/Quotations returned 14.1.8 Any post tender interviews and clarifications including written notes of any interviews 14.1.9 arrangement for contract management and monitoring 14.1.10 communications with all Candidates and with the successful contractor 14.1.11 Requisition for Supplies/goods 14.1.12 Copy orders 14.1.13 Delivery Notes 14.1.14 Invoices, credit notes etc 14.1.15 Price Advices

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14.1.16 Contract Variations 14.1.17 Write off Approvals 14.2 A complete set of the original contract and tender documents must also be retained, including contract terms and conditions, specification, pricing schedule, evaluation models, correspondence and award decision and letter as either electronic or hard copies. All of the above will be safely stored on the Council’s e-tendering portal, The Chest when used to undertake a procurement exercise. 14.3 Records required by this rule, must be retained in accordance with the Council’s document retention policy but in any event must be retained for the following:  For contracts below £60,000 in total estimated value – 3 years or the lifetime of the contract  For contracts £60,000 and above – six years after the expiry of the contract 14.4 The Monitoring Officer shall have overall responsibility to ensure a register (the Contract Register) is maintained for all contractual arrangements. The Register will be continually reviewed and updated in line with all relevant procurement activity, by the Monitoring Officer and/or the Procurement & Contracts Manager. 15. TENDER PROCEDURE

15.1 For the purposes of this rule, all estimates of contract values shall be in accordance with the procurement toolkit. If for any reason this is not available the estimates are to be in writing and prepared by the relevant Director or a competent member of his/her staff. Written quotations or tenders are not required for goods, services or works having an estimated value of less than £10,000 although best value should be obtained; this can be demonstrated through seeking three written quotes. 15.2 For contracts having an estimated value of £10,000 but not exceeding £100,000 quotations are obtained from competent contractors through The Chest. A minimum of three quotes should be obtained. Where less than three quotes are submitted the authorisation of Chief Finance Officer should be obtained before a quotation is accepted. The Chief Finance Office must be satisfied that the quotation represents value for money. Tenders (Below EU Threshold Values)

15.3 No contract having an estimated value of £100,000 or more but below EU Threshold values applicable at the time shall be made unless the procedures below are undertaken: 15.3.1 At least fourteen (14) days public notice should be given on The Chest and Contracts Finder using the Council’s standard documentation or a variation of such, and stating:-  the nature and purpose of the contract;  inviting tenders for its execution;  details of the award criterion; and  the last date for when tenders will be accepted. Framework agreement

15.3.2 In accordance with Rule 4 Pre-Qualification

15.3.3 Where application has been invited by Public Notice in accordance with the Rules above, the invitation may require a pre-tender assessment (Selection Questionnaire, previously known as a Pre- Qualification Questionnaire) to be undertaken and for the invitation to submit a tender to be limited to those persons who satisfactorily meet the requirements of that assessment. 15.3.4 Where this applies the public notice must clearly and unambiguously state this fact. 15.3.5 The relevant Director shall select not less than 5 contractors from the list who have satisfactorily met the pre-qualification criteria to submit a tender. Where less than 5 have satisfactorily met the pre-qualification criteria the maximum number of suitable contractors must be invited to submit a tender.

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15.3.6 A two stage procurement process including pre-qualification should not be used as standard practice but instead when the procurement and contract process is considered high risk. 15.3.7 The Council shall only enter into a contract with a potential supplier if it is satisfied as to the suppliers’:-  eligibility that he/she is not disbarred from tendering;  financial standing; and  overall technical ability. Tenders above EU threshold values

15.4 All supplies, services or works having an estimated contract value in excess of the values stipulated in the Public Contracts Regulations 2015 shall be undertaken strictly in accordance with the requirements of that legislation. 15.5 All public notices for such contracts must be in the prescribed form and appear in the Official Journal of the European Union (OJEU), electronically transmitted via the e-tendering portal, The Chest and on Contracts Finder. 15.6 Placement of additional local/national or other public notices must only be made after the date of despatch to OJEU and should contain the same fundamental criteria as the OJEU Notice. 15.7 The advice and assistance of the Procurement & Contracts Manager must be sought prior to the despatch of any OJEU Notice. SECTION 3: CONDUCTING PROCUREMENT AND DISPOSAL

16. FINANCIAL LIMITS AND THRESHOLDS

16.1 All requests for quotations, tendering and contracting, other than detailed in Rule 3 Exemptions, shall be subject to the thresholds shown on SharePoint. 16.2 The Council acting as an ‘Accountable Body’ may be subject to lower financial thresholds than specified in Appendix 1 as stipulated by the funding body 16.3 The Council will regularly review and if appropriate revise the Financial thresholds listed on SharePoint. 17. AWARD CRITERIA

17.1 The basis of tender acceptance and award must be made clear in the tender documentation. Either  Most Economically Advantageous Tender; or  Lowest Price where payment is to be made by the Council; or  Highest Price if payment is to be received. As more fully described hereunder 17.2 Contracts shall primarily be awarded on the basis of the Most Economically Advantageous Tender which is most likely to offer ‘Value for Money’ by a robust assessment of cost and quality. Setting evaluation criteria based solely on lowest prices should be done with extreme caution. 17.3 For contracts having a value in excess of £100,000, or identified as likely to have significant environmental impacts(s) the evaluation of cost and quality shall include an assessment of ‘Whole Life Costs’ proportional to the value of the relevant goods, works or services. 17.4 Unless there are exceptional reasons, the weighting given to price shall be between 60% and 85%. A lower figure than 60% will require the written approval of the Chief Finance Officer. 17.5 An award on the basis of lowest price should be reserved for sectors where it is possible to precisely specify the goods or supplies to be procured or the items are otherwise identical. (For example basic gas and electricity supply prices but not where an element of the supply is to be from renewable or carbon neutral processes)

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17.6 The award criteria must be established before publication of Invitation to Tender (ITT) and must be included in the documentation issued to potential suppliers as part of the tender process. In the case of contracts that are estimated to be over the EU thresholds it is encouraged that the evaluation criteria is also published in the initial OJEU notice and is required to be included at the PQQ stage. 17.7 Award Criteria must not include:-  non-Commercial Considerations;  matters which discriminate against suppliers from the European Economic Area or signatories to the Government Procurement Agreement; or  criteria used in selection and award - criteria should be distinguished separately at all times in the tendering process. 18. QUOTATIONS

18.1 All Requests for Quotations (RFQs) must include a specification that describes the Council’s requirements in sufficient detail to enable the submission of competitive offers 18.2 The Officer must define Award Criteria that are appropriate to the Procurement and designed to secure an outcome giving value for money for the Council. 18.3 All Quotations must specify the terms and conditions of contract that will apply. 18.4 The Request for Quotation must state that the Council is not bound to accept the lowest or any Quote, and reserves the right not to award the Contract at all. 18.5 All Candidates invited to quote must be issued with the same information at the same time and subject to the same conditions via The Chest. Any supplementary information must be given on the same basis. 18.6 Quotations must be returned electronically via the Chest, or where an alternative procedure is adopted via email or in writing addressed impersonally to the relevant Director. 18.7 The Assistant Director may accept the most advantageous Quotations received in respect of proposed contracts, provided they have been sought and evaluated fully in accordance with these Contract Procedure Rules. 18.8 The authority in 18.7 may be subject to delegation for quotations under £10,000. However, the decision on acceptance must be taken by an Officer of appropriate seniority and experience and must be formally recorded. 19. INVITATION TO TENDER

19.1 Any Invitation to Tender issued by the Council shall include details of the Council’s requirements for that particular contract including:- 19.1.2 A description of the supplies, services or works being procured; 19.1.3 The procurement timetable including tender return date and time. Such date must allow a reasonable period for potential suppliers to prepare and submit their tender; 19.1.4 A specification and instructions on whether variants are permissible; 19.1.5 The Council’s standard terms and conditions of contract, or other suitably prepared T&Cs with the agreement of Legal Services; 19.1.6 A statement on the Council’s Anti-Bribery, Fraud and Corruption Policy including reference to the Whistle-blowing Policy (Confidential Reporting Code) and the Bribery Act 2010; 19.1.7 The evaluation criteria and any weightings considered appropriate; 19.1.8 The pricing mechanism and instructions for completion; 19.1.9 The form and content of any method statements etc. to be submitted; 19.1.10 A statement that the Council does not bind itself to accept the lowest or any tender;

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19.1.11 A statement that late tenders, incomplete tenders, tenders returned not using the means indicated, or where applicable, not returned in the envelope provided or bearing distinguishing marks that would identify the sender, or those containing an unauthorised alteration will be disqualified; 19.1.12 Whether the Council is of the view that the Transfer of Undertakings (Protection of Employment) Regulations 2006 may apply; 19.1.13 A list of documents to be returned, and the rules for their submission; 19.1.14 Any further information that will inform and assist those invited to tender to prepare and submit tenders; 19.1.15 A Non-Collusive Tendering Certificate for completion and return by the tenderer; and 19.1.16 A statement that “The Council does not bind itself to accept the lowest (highest), or any tender” 19.2 Tenders invited in pursuance of Rule 22(1) of the Public Contracts Regulations 2015 shall be returned electronically where the process has taken place via the e-tendering portal. 19.3 Where submissions are required in other formats to support the process on The Chest they shall be addressed impersonally to the relevant Director. 19.4 Tender return envelopes/labels shall be a plain colour. They shall bear the word ‘Tender’ followed by the tender subject, and clearly state the deadline for receipt of tenders in the top left hand corner. 20. SUBMISSION AND RECEIPT OF TENDERS/QUOTATIONS

20.1 Candidates must be given an adequate period in which to prepare and submit a proper Tender/Quotation, consistent with the complexity of the contract requirement. The EU Procedure lays down specific time periods which are required by law and must be adhered to. 20.2 Electronic tenders and tender envelopes returned must only be opened after expiry of the closing date in accordance with the provisions of Clause 21 below. Any opening of tenders, (electronic or hard copy), prior to the tender return deadline will render the tender exercise invalid 20.3 All tender responses shall be returned via the portal where they will be sealed until after the deadline for return has passed when only an appointed verifier can release them. 20.4 Where supporting evidence is requested, tender envelopes on their return shall be date stamped on the outside with the date of their return by Reception/post room staff who will initial them and insert the time of their return. Envelopes will then be placed in the locked Tender Box where they will remain unopened until after the deadline for return has passed. 20.5 Where the preferred method of the approved e-tendering portal is followed all quotations shall be returned via the portal where they will remain locked until after the final deadline for receipt of all quotations when only someone from the Procurement Team can release them. 20.6 Where a paper-based exercise is followed for quotations under £10,000, quotation envelopes on their return shall be date stamped, the time of their return inserted and initialled by the staff who first receives them. They will be forwarded to the relevant Director who will store them in a secure locked place where they will remain unopened until after the deadline for return has passed. 21. OPENING OF TENDERS/QUOTATIONS

21.1 Tenders and Quotations shall be opened at a single time. 21.2 Where the preferred method of the approved e-tendering portal is followed all quotations shall be returned via the portal where they will remain locked until after the final deadline for receipt of tenders when only an appointed verifier can release them. 21.3 The relevant Director and a designated member of his/her staff or two designated members of his/her staff shall open supporting documents to tenders and written quotations received under any other procedure or in the case of using the e-tendering portal an appointed verifier can release them. 21.4 Where a paper-based exercise has been followed for quotations under £10,000 the Form of Tender/Quotation, Non-collusive certificates, form of bond and any priced documents submitted by

Page 282 Appendix 3 the potential supplier shall be date stamped and those persons present shall insert their initials within the stamp. 21.5 Any Tender/Quotation received after the appointed time for receipt of tenders/quotations for a particular contract shall be disqualified, other than under exceptional circumstances, and shall not be opened save to ascertain the name of the tenderer/potential supplier to whom it shall be returned immediately. The Monitoring Officer must agree if special circumstances apply. The circumstances must be recorded on the procurement file and reported to the Procurement Team. 21.6 Where this is carried out as a paper-based activity the Tender and Quotation return envelopes, or photocopies thereof indicating the date and time of receipt shall be retained as part of the tender file. 22. CLARIFICATION PROCEDURES

General

22.1 Providing clarification of an Invitation to Tender (ITT) to potential or actual Candidates or seeking clarification of a Tender is permitted only via The Chest. 22.2 The Council may seek clarification via The Chest from potential suppliers in respect of their offer where appropriate. However the same opportunity must be afforded to all potential suppliers to ensure a transparent, non-discriminatory process that affords equality of opportunity. 22.3 Any question points of clarification must be raised by potential suppliers via The Chest. Questions shall be answered promptly and only via The Chest. The same information must also be communicated in writing to all other potential tenderers to ensure transparency and equality. Consideration must be given to extending the timescales for submission if material clarifications are sought, particularly if clarifications are issued within 6 days of the submission deadline. Post Tender

22.4 Discussions with Tenderers after submission of a Tender and before the award of a contract with a view to obtaining adjustments in price, delivery or content must be the exception rather than the rule and be within the scope of the contract. 22.5 Post tender discussions may only be conducted in circumstances which do not put other tenderers at a disadvantage, distort competition or affect adversely the integrity of the competitive tendering process. 22.6 Where during the tender evaluation process, examination of the most favourable tender or quotation reveals errors or discrepancies, which affect the tender/quotation figure the following process shall be followed:- 22.6.1 If the errors or discrepancies are of an arithmetic nature that results in the tender figure being reduced from that submitted, the tenderer etc. will be informed of the errors or discrepancies involved and that the Council intends to treat the tender figure as reduced to reflect the true arithmetic value of the tender/quotation; 22.6.2 If the errors or discrepancies are of an arithmetic nature that results in the tender figure being increased from that submitted, the tenderer etc. will be informed of the errors or discrepancies involved and afforded the opportunity to confirm the tender/quotation figure at the original submitted price or to withdraw the tender/quotation offer; 22.6.3 In all other circumstances, the tenderer etc. is to be given details of the errors or discrepancies and afforded the opportunity to confirm the tender/quotation figure or withdraw the offer. 22.6.4 A reviewed tender price cannot be submitted by the tenderer at this stage unless the OJEU competitive procedure with negotiation procedure is being followed. 22.6.5 If a tenderer etc. withdraws an offer as a result of 22.6.2 or 22.6.3 above the next most favourable tender shall be examined and treated in the same manner. 22.7 Where post-tender discussions result in a fundamental change to the specification, scope or contract terms, the contract must not be awarded, but re-tendered. 23. EVALUATION

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23.1 Evaluation means assessment of tenders submitted against published selection and award criteria. Evaluation must only be against the published criteria, any other assessment which has not been stated on commencement of the procurement is against the principles of fairness and transparency. 23.2 Apart from any debriefing required or permitted by these Contract Procedure Rules, the confidentiality of Quotations, Tenders and the identity of Candidates must be preserved at all times and information about one Candidate’s response must not be given to another Candidate. This is subject to the requirements of legislation, for example the Freedom of Information Act 2000. 23.3 Evaluation of the tenders must be carried out by a minimum of two officers of sufficient seniority, skill, knowledge and experience. The evaluation must be carried out collectively and fully documented. 23.4 The arithmetic in compliant Tenders must be checked. If arithmetical errors are found they should be corrected and notified to the Tenderer, who should be requested to confirm whether they wish their Tender to be evaluated with the amended amount or whether they wish to withdraw their Tender. 23.5 Where no tenders are fully compliant with the specification, the advice of the Procurement Team must be sought. 24. AWARD

24.1 The most favourable tender or quotation may only be accepted where there is adequate provision in the Revenue estimates approved by the Council or an approved Capital Estimate. 24.2 The most advantageous Quotations and Tenders received in respect of proposed contracts may only be accepted provided they have been sought and evaluated fully in accordance with these Contract Procedure Rules. 24.3 Where tenders are to be accepted these must be done in accordance with the financial thresholds information held on SharePoint. 24.4 Where the most favourable tender received is unacceptable, exceeds the budget provision, despite any adjustments that may be permitted under the Invitation to Tender and these Rules, a report on all tenders for that particular contract, and the options available shall be made to the Cabinet or relevant Council Committee for consideration and decision. 24.5 Where the most favourable quotation received is unacceptable, exceeds the budget provision, despite any adjustments that may be permitted under the Request for Quotation and these Rules, a report on all quotations and the options available shall be prepared by the Assistant Director for consideration and decision by the relevant Director. 24.6 Where a payment is proposed to be made to the Council, and the most favourable tender/quotation is unacceptable, or it is proposed to accept other than the most favourable tender/quotation a report shall be made on all tenders or quotation as described in 25.4 and 25.5 respectively. 24.7 At the conclusion of the tender exercise, having an estimated value above EU threshold values, and prior to any award being made, there shall be a minimum 10-day standstill period during which unsuccessful suppliers shall be debriefed in writing. No information, other than the following, should be given without taking the advice of the Monitoring Officer:  The criteria and weightings  The score of the bidder, the score of the winning bidder and the score of the other bidders which must be kept anonymous  The name of the winning bidder  The reasons for the decision, including the characteristics and relative advantages of the winning tender 24.8 If formal objections to the intended award are raised the Officer shall not award the contract and immediately consult the Monitoring Officer and the Procurement & Contracts Manager. 24.9 For below EU threshold procurement exercises suppliers shall be debriefed as to the outcome of the exercise taking into account the same principles of openness and transparency.

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24.10 Acceptance of other than the most economic advantageous Tender must be authorised as follows:  Up to Tender Threshold By the Assistant Director. This authority will not be subject to delegation. Full details of the reasons for the decision must be recorded, signed by the Service Director and forwarded to the Procurement Team to be held on file.  Tender Threshold to EU Threshold By the Delegated Executive Decision, based on the formal recommendation of the Director. Full details of the reasons for the decision must be recorded and held on file.  Over EU Threshold (OJEU procedure) By the Cabinet, based on a formal detailed report submitted by the relevant Director.  Where the tender is covered by the EU Procurement Directives, then acceptance must comply with these. SECTION 4: CONTRACT AND OTHER FORMALITIES

25. CONTRACT FORMALITIES

25.1 All contracts having an estimated total value of £1025,000 and above, and any other case where the Monitoring Officer so decides shall be in writing. 25.2 Every such contract entered into on behalf of the Council shall be in a form approved by the Monitoring Officer said Director and shall be signed by at least two a duly authorised officers of the Council or made under the common seal of the Council attested by at least one officer in accordance with the Council’s Constitution. The Monitoring Officer will specify when electronic signatures are appropriate. 25.3 Contract formalities must be carried out and completed to the satisfaction of the Monitoring Officer before the contractor commences any work under the contract. 25.4 Every such contract shall include 25.4.1 The supplies, services or works to be furnished/delivered, had or done [including appropriate technical specification(s];

25.4.2 The price to be paid with a statement of any discounts or other deductions; 25.4.3 Payment terms which should normally state payment in arrears. However where payment in advance is necessary the rationale for this should be fully documented, and where payments in advance exceed £10,000 a documented risk assessment must be approved by the relevant Assistant Director unless the supply relates to computer software. 25.4.4 The time or times within which the contract is to be performed/undertaken; 25.4.5 Valid copies of the minimum appropriate insurance to be held by the contractor at the commencement of the contract and on each subsequent anniversary; 25.4.6 Clauses(s) for the way in which any arbitration is to proceed under the contract; 25.4.7 A clause prohibiting the contractor from transferring, assigning (directly or indirectly) to any person whatsoever, any portion of the contract without the prior written permission of the Council, or from subletting any portion of the contract without such permission other than may be customary in the trade concerned; 25.4.8 In every contract for the execution of works or the supply of goods and materials and in every contract where the estimated value exceeds £60,000 (except where the contract is entered into under partnering arrangements) there shall be a consideration of the need for liquidated damages. Where it is considered that provision should be made for liquidated damages, the requirement and amount of such provision shall be determined in consultation with the Chief Finance Officer who shall consider

Page 285 Appendix 3 the nature of the contract and its associated risks. The calculation shall be recorded and filed with the contract documents; 25.4.9 A clause stating the retention of any appropriate amount determined following consultation with the Monitoring Officer that will be withheld until clearance of the Final Account. 25.4.10 That all goods, materials and workmanship must be at least to the standard specified having regard to the relevant European, British or equivalent body, and must otherwise be fit for purpose; 25.4.11 A clause empowering the Council to cancel the contract and to recover from the contractor the amount of any loss resulting from such cancellation, if the contractor shall have offered or given or agreed to give any person any gift, consideration or any kind of inducement or reward for doing or forbearing to do or to have done any action in relation to obtaining or execution of the contract with the Council; 25.4.12 A clause empowering the Council to cancel the contract and recover from the contractor the amount of any loss resulting from such cancellation if the contractor or any person employed by him/her or acting on his behalf shall have committed any offence under the Bribery Act 2010 or shall have given any fee or reward, the receipt of which is an offence under Section 117(2) of the Local Government Act 1972. 25.4.13 A clause prohibiting the Contractor from transferring or assigning, directly or indirectly, any portion of the contract to any person or organisation without the express written consent of the Council. 25.4.14 A clause that the contractor, his staff, agents and any sub-contractors are required to comply with the Council’s Anti Fraud and Corruption, modern slavery, safeguarding, Prevent, GDPR procedures and the Whistle-blowing Policy (Confidential Reporting Code) or equivalent for reporting any such events. A copy of the Whistle-blowing policy currently applicable shall be included in the schedule of documents under clauses 25.1 and 25.2 above. 25.4.15 A clause that the contractor will comply with the provisions of:  The Council’s Equality and Diversity Policy including requirements of the Equality Act 2010;  All obligations of the Council under the Human Rights legislations;  All restrictions and requirements of the Council under Data Protection legislation;  All restrictions and requirements that may be imposed on the Council under the Freedom of Information Act 2000; and  The Health and Safety at Work etc Act 1974 and any other legislation made thereunder or relevant to the health and safety of employees.  The TUPE requirements (where applicable). 25.5 Where a formal contract is not required the Director will notify acceptance in writing to the successful contractor and place the necessary order. This must include the Council’s relevant standard terms and conditions. 25.6 Where the annual amount spent with any one contractor or on any one specific type of goods, works or services exceeds £25,000 and outside an existing contractual agreement, a review must be carried out to assess the procurement method and a formal contractual agreement put in place. Sub Contractors

25.8 Where any sub-contractor or supplier is to be nominated to a main contractor/supplier for the execution of a contract with the Council, these Contract Procedure Rules shall apply as if the Council was entering into a direct contract with the sub-contractor or supplier. 25.9 Details of contracts must be entered on the Council’s contracts register 26. SAFEGUARDS FOR DUE PERFORMANCE

Liquidated Damages

26.1 Every written contract must, where appropriate, provide for the payment of liquidated damages by the contractor in the event of his default.

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26.2 The level of damages required will be determined by the relevant Director, in consultation with the Chief Finance Officer. Failure to Deliver

26.3 In every contract for the execution of work, supply of goods, materials or services where appropriate having an estimated value of £25,000 and above a clause shall be inserted to secure that, should the contractor fail to deliver the goods, materials or execute the service or works or any part or portion thereof within the time or times specified in the contract, the Council, may without prejudice to any other remedy for breach of contract, either wholly or in part, or to the extent of such default, and to provide for the execution of the work or service by other means, or to purchase other goods or materials, as the case may be make good  Such default; or  In the event of the contracts being wholly determined, the unexecuted work or service or the goods or materials to be delivered The clause shall further secure that the amount by which the cost of providing for the execution of the work or service by other means, or the purchasing of other goods or materials, exceeds the amount which would have been payable to the contractor had he executed the contract, or portion thereof, within the time or times specified therein, shall be payable by the contractor. Performance Bonds

The use of, and level of, retentions on other contracts shall be agreed with the Chief Finance Officer prior to the publication of the proposed T&Cs within the tender documents. Performance Bonds will normally only be applied to building and facilities contracts.

26.4 The Council shall require and take sufficient security for the due performance of all contracts exceeding £60,000 where appropriate. For works contracts the amount of security shall be the retention of 10% of the contract sum during the life of the contract, such retention to be released on issue of the certificate of practical completion of the contract. The use of, and level of, retentions on other contracts shall be agreed with the Chief Finance Officer prior to the publication of the proposed T&Cs. 26.5 In any particular contract or class of contract the Chief Finance Officer may decide that the Council’s interest in the proper performance of the contract can be appropriately protected by specifying and taking a different form of security 27. PREVENTION OF CORRUPTION

27.1 The Officer must comply with the Code of Conduct and must not invite or accept any gift or reward in respect of the award or performance of any contract. High standards of conduct are obligatory. It will be for the Officer to prove that anything received was not received corruptly. Corrupt behaviour is a crime under the statutes referred to in Rule 27.2 below and is likely to lead to disciplinary action. 27.2 The following clause must be put in every written Council contract (excluding framework call- offs):- “The Council may terminate this contract and recover all its loss if the Contractor/Supplier, its employees or anyone acting on the Contractor/Supplier’s behalf do any of the following things:  offer, give or agree to give to anyone any inducement or reward in respect of this or any other Council contract (even if the Contractor / Supplier does not know what has been done); or  commit an offence under Section 117(2) of the Local Government Act 1972 or the Bribery Act 2010; or  commit any fraud in connection with this or any other Council order or contract whether alone or in conjunction with Council Members, contractors, suppliers, or employees. Any clause limiting the Contractor’s liability shall not apply to this clause.” Where a supplier’s standard terms and conditions are being used they must contain the equivalent of this clause. 28. DECLARATION OF INTEREST

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28.1 Every Officer and Member of the Council has a responsibility to declare any links or personal interests that they may have with purchasers, suppliers and /or contractors if they are engaged in contractual or purchasing decisions on behalf of the Council, in accordance with the applicable Codes of Conduct. SECTION 5: CONTRACT MANAGEMENT

29. MANAGING CONTRACTS

Freedom of information

29.1 The Council shall fulfil its obligations under the Freedom of Information Act 2000 (as amended) in respect of any application made under the Act in relation to the contracts it has entered into and the manner in which the contract was procured. Statistics

29.2 The Procurement & Contracts Manager or such other officer nominated by the Chief Finance Officer shall be responsible for ensuring the Council meets its reporting requirements EU Rules required by the Ministry of Housing Department of CCommunities and Local Government or others. 29.3 Directors and Assistant Directors shall upon request of the nominated officer provide the details and any information necessary to complete these returns with the minimum of delay. Extensions

29.4 A contract for goods, services or works shall only be extended where the contract terms and conditions expressly provide for an option for extension. Requests for extensions should consider both the cumulative contract value and the period of the contract. 29.5 Any such extension shall be considered where the contract:-  has been successful in demonstrating performance targets identified in the original contract were met;  will demonstrate Service Improvement or innovative service delivery processes;  is able to demonstrate that such extension will deliver Value for Money; or  where there is a genuinely justifiable case to extend to maintain continuity of supply or site experience. 29.6 Any such extension shall be subject to: -  adequate budget provision;  the extension being priced at the original contract rates subject to any adjustment mechanism set out in the contract;  the agreement of the supplier; and  compliance with EU Procurement legislation. 29.8 Any proposed contract extension shall be approved by the Chief Finance Officer. Consultants

29.9 It shall be a condition of the appointment and engagement of the services of any consultant, not being an officer of the Council, who is to be responsible to the Council for the supervision of a contract, or design of any scheme etc. on behalf of the Council that: -  the appointment will be undertaken in accordance with these Rules which includes the use of appropriate framework agreements;  consideration will be given to any requirement for vetting, data protection, intellectual property rights etc.;  consideration will be given to the most appropriate form of payment, including based on inputs (usually time) or output based;  the consultant will be prohibited from bidding for the work, service etc. and any subsequent stage unless this was the specific purpose of their appointment;

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 that in supervising any contract on behalf of the Council the Consultant shall comply with these Rules as though he/she was a Director of the Council, subject to the modification that the procedure to be followed in inviting and opening tenders shall be approved in advance by the relevant Director;  at any time during the period of carrying out the contract procedure during his/her appointment, the Consultant shall produce to the Chief Finance Officer or authorised representative, on request, all the records maintained by him/her in relation to the contract; and  On completion of the appointment/contract he/she shall without delay transmit all records in relation to any contract to the relevant Director. 30. RISK ASSESSMENT AND CONTINGENCY PLANNING

30.1 For all contracts, contract managers must:-  maintain a risk register during the contract period;  undertake appropriate risk assessments; and  ensure contingency measures are in place for identified risks 31 CONTRACT MONITORING, EVALUATION AND REVIEW

31.1 Each Director responsible for the awarding of contracts, which provide for payment to be made by instalments, shall arrange for the keeping of a register, to the satisfaction of the Chief Finance Officer, to show the state of account on each contract between the Council and a contractor, together with any other payments and related professional fees. 31.2 Payments to contractors on account of contracts shall be made only on a certificate issued by the relevant person. 31.3 Subject to the provision of the contract in each case, every variation shall be authorised in writing by the relevant person. Each variation shall include an estimate of the increase or reduction in cost arising from that variation of the contract. Any variations must be within the scope of the contract. 31.4 When the net effect of such variations exceeds the following limits, this shall be reported as soon as possible to the Cabinet or relevant Committee of the Council:  for contracts up to £100,000 (in amount or budgetary provision) – 3% of the contract sum or budgetary provision (but not less than £1,000)  for contracts in excess of £100,000 (in amount or budgetary provision) - £3,000 + 1.5% of the excess of the contract sum or budgetary provision over £100,000. 31.5 Provided that it shall not be necessary to report such net effect in the case of contracts undertaken under agency or contractual arrangements on behalf of another local or public authority where that authority has approved the cost of the variation. 31.6 Where the relevant person issues a certificate and the amount to be paid on that certificate, when added to amounts previously certified for payment, would result in the contract sum or budgetary provision being exceeded, then the certificate shall be accompanied by a report fully explaining the position from the relevant person to the Chief Finance Officer. 31.7 The final certificate of completion of any contract shall not be issued until the relevant person has produced to the Chief Finance Officer a detailed final statement of account and all relevant documents, if required. 31.8 The Chief Finance Officer shall, to the extent that is considered necessary, examine final accounts for contracts and shall be entitled to make all such enquiries and receive such information and explanations as may be required in order to be satisfied as to the accuracy of the accounts. 31.9 Every works contract and every other contract which is estimated to exceed £60,000 in value or amount shall, where appropriate, include provision for liquidated damages, except where the contract is a partnering contract entered into under the Council’s procurement policy. Where there has been a delay in the completion of a contract and an extension of time is not appropriate to be authorised, the relevant person shall impose the liquidated damages clause in all instances, unless, after consultation with the Monitoring Officer, it is decided it is inappropriate to do so.

Page 289 Appendix 3

31.10 A report as to final costs under each contract shall, after agreement of the final account, be incorporated into the Post Implementation Review submitted to the Senior Management Team, Cabinet or relevant Committee by the appropriate Director after consultation with the Chief Finance Officer. 31.11 Claims from contractors in respect of matters not clearly within the term of any existing contract shall be referred to the Monitoring Officer for consideration of the Council’s legal liability and, where necessary, to the Chief Finance Officer for financial consideration, before a settlement is reached. 31.12 Where a contractor enters into liquidation or receivers are appointed or the contractor makes arrangement or composition with his/her creditors, the relevant person shall report the full circumstances in writing to the Cabinet or relevant Committee of the Council as soon as they are known to him/her. GLOSSARY

Procurement Schedule

A plan identifying the projects and contracts that are expected to be procured during the financial year. Where possible the Procurement Schedule should also identify the lead officer and an outline timetable. This should be signed-off by the relevant Assistant-Directors, Directors and Council at the beginning of each financial year. Contract Period

The period over which a contract is delivered. The period determined must comply with European and National legislation, allow for continuous improvement, enable appropriate exit strategies, and enable the contract to be packaged to encourage delivery in the most cost effective manner Contracts Register

The register held by the Council containing of all written contracts entered into by the Council. E-Procurement / e-tendering

An electronic procurement process using proprietary software or media to enable the tender/quotation process to be undertaken electronically. It provides all the controls applicable to manual tendering as required by these rules. EU Procurement Directives

The Legislation setting out the defined mandatory procurement procedures that must be followed when procuring supplies, services or works above the pre-determined threshold values in force for the time being. EU Treaty-based Principles

The principles of the European Union which impact on all procurement regardless of value. These must be adhered to and include principles of equality, non-discrimination, transparency, mutual recognition and proportionality. Framework Agreement

Contracts awarded following a compliant tender exercise that provides for the ‘call-off’ of supplies, services or works against a supplier. The Framework provides a non-binding offer without obligation; a binding contract coming into effect once the Council initiates a ‘call-off’ ITT

Invitation to Tender OJEU

Official Journal of the European Union. The advertising medium for tenders above EU procurement threshold values Performance Bond

Page 290 Appendix 3

Applicable to contracts over £60,000 in value where there are potentially high levels of risk. The Council seeks security to mitigate such risk, and this is normally in the form of a parent company guarantee or a Performance Bond. The use of, and level of, retentions on other contracts shall be agreed with the Chief Finance Officer prior to the publication of the proposed T&Cs within the tender documents. Performance Bonds will normally only be applied to building and facilities contracts. Procurement

The mechanism and processes by which the Council acquires the supplies (goods), services and works necessary to achieve delivery of its objectives. It will include all associated performance measurement, monitoring and other controls necessary to complete such delivery. Procurement Cards

Approved purchasing cards generally used as a mechanism for ordering and invoicing low value goods and services. Purchasing Cards are not credit cards. Regulations/PCR2015

The UK regulations implementing the EU public procurement directives, currently the Public Contract Regulations 2015. RFQ

Request for Quotation Risk Management

Risks associated with procurement exercises shall be identified, assessed and managed Supplier

Any person, firm, organisation or body providing or potentially providing supplies (goods) services or works to the Council. Value for Money

The optimum combination of quality and cost taking into account ‘whole life costs’. Whole Life Costs

The costs associated with a procurement form the initial definition of need, to the actual procurement of the supplies, services or works, their delivery and operation through to the end of the useful life and/or disposal.

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Page 292 Item No.13

South Lakeland District Council Council 18 December 2018 Executive Report – Mid-year 2018/19

Portfolio: Culture and Leisure Portfolio Report from: Cllr Chris Hogg

Portfolio Responsibilities

The Council plan objectives in relation to promoting culture, leisure activities and the arts.

To work with our cultural organisations to attract investments and promote South Lakeland as a premier area for Arts and Events.

The relationship of the Council with its citizens; civic participation and the Council plan objectives around leisure, health and wellbeing and working with communities.

Working with key partners with regards to public health and community safety.

Policies, Plans and Strategies

 Arts and Events  Grants Strategy  Licensing and Statement of Gambling Policies

Key Areas:

 Arts and Culture  Grants  Public Halls  Use of community assets for the promotion of arts and culture  Young People/ projects  Heritage and Events  Heritage Listed buildings and built environment  Voluntary Sector Engagement in relation to Culture and Leisure  Leisure and Recreation  Licensing and Gambling

Page 293 Arts, Culture and Events

The Council has continued to work in partnership with key Cultural Strategic partners and organisations to encourage, advocate for and promote cultural arts and events throughout the District. The Council’s sustained approach to cultural investment continues to enrich communities, promote health and well-being and boost the economy.

The Council has worked in partnership with Arts Council England and cultural organisations to help facilitate, enable and fund some significant initiatives to promote South Lakeland as the leading rural cultural destination and premier rural area for arts events and festivals working to support ‘Cultural Landscapes’.

The Council has supported the development of Lakes Culture to embed culture at the heart of the tourism offer and will work with the partnership in future to facilitate promotion of the region as a cultural destination attracting more, new cultural visitors to the area and making best use of the positive impact of the UNESCO Lake District World Heritage Site.

The Council is supporting the major capital infrastructure developments of the Wordsworth Trust ‘Reimagining Wordsworth’ and Lakeland Arts Windermere Jetty along with the new emergent capital development initiatives at Abbot Hall and the Brewery Arts Centre. We will support the development of cultural initiatives in the Kendal Masterplan and the aspiration for the development of a cultural quarter in Kendal.

The authority continues to support the development of key festivals in the district such as the Lakes International Comic Art Festival, Kendal Mountain Festival, Lake District Summer Music, and Lakes Alive and major events such as the Tour of Britain and Great North Swim whilst seeking new opportunities for future events and cultural initiatives.

The Council supported a major collaborative venture with the Lakes International Comic Art Festival, 14-18 NOW, and ‘On a Marche sur la Bulle’ in Amiens for a unique project ‘Traces of the Great War’ an anthology of new short comics that explores the relevance and resonance of the First World War as part of the national commemorative centenary programme making the end of World War One.

The Council has supported Morecambe Bay Partnership to deliver the temporary public art installation ‘Settlement’ by artist Rob Mulholland on Birkrigg Common as part of the ‘Headlands to Headspace’ initiative.

The Council will continue to work in partnership with creative partners, Craven District Council, Lake District and Yorkshire Dales National Parks on the Great Place initiative in delivering year two of the programme and action plan to create a Great Place Lakes and Dales where a sustainable, resilient creative community and economy exists celebrating the distinctiveness of place, the skill and experience of creative people and a good quality of life, which in turn will retain and attract younger people to our districts to influence, support and create our future economy.

We will continue to develop the relationship with Curious Minds, Arts Council England’s bridge organisation for the North West, to develop opportunities for children and young people’s active participation in arts and culture through cross sector collaboration and partnership. We will support ATiC being delivered through the South Cumbria Partnership of the CSP.

Finally the Council will explore new opportunities for cultural partnerships, initiatives and development as a cohesive part of the Lancaster and the Bay Economic partnership initiative and the emerging Cumbria Public Health Strategy.

Page 294 Public Halls and Use of Community assets for the promotion of Arts and Culture

Throughout 2018 the Council has been and will continue to promote Art and Cultural events through the use of public halls and other Council owned assets which support various areas of the Council Plan i.e. Health and Wellbeing, Culture and Economy. Below is a snapshot of some the events which have taken place to date and are key examples of how the public halls support local communities.

 Main hub base for the leading festivals, Kendal Mountain Festival and Comic Arts  Meditation, yoga and fitness classes  Children’s theatre arts school, encouraging children to reach their goals  Wedding Ceremonies  Eden and South Lakes Credit Union  Monthly Magistrates and Civil Courts  Language classes  Community Coffee Mornings  Classical midday music concerts from October to March  Local amateur operatic society productions

Young People and Projects

The Council worked with National Citizens Service (NCS) to provide workshops to young people throughout July and August 2018 on local government.

The workshops were designed to teach young people the role of local councillors and their importance, encourage young people to vote and teach young people about the different roles of and responsibilities of the Council. The Council worked with groups of 15 to 30 young people (16 to 18 year olds) from across South Lakeland, Barrow and Lancaster. The activities that were run engaged them with national and local democracy including an overview of political parties and stances, the impact of the media, as well as getting them to look at their priorities for their own local area.

Heritage and Heritage Listed buildings and built environment

The Burton-in-Kendal Partnership Scheme in Conservation Area (PSiCA) is due to commence in early 2019. Architectural consultants are currently undertaking project development work that will inform a detailed Delivery Plan, which will allow Historic England’s to release its funding of £40,000 per annum for 3 years, to match the £35,000 per annum earmarked from the District Council and £5,000 per annum pledged by Burton in Kendal Parish Council. It is hoped that the first two building repair projects will be offered support in March 2019; the public realm improvements to The Square will be implemented in summer 2019, and a Village Design Statement will be adopted as a Supplementary Planning Document (SPD) by autumn 2019

The council is also exploring ways to assist Cartmel Village Society prepare a Conservation Area Management Plan for Cartmel, which would be adopted as SPD and used as part of the evidence base for the Lower Allithwaite Neighbourhood Development Plan, so that the area’s very special heritage is given greater recognition in the latter’s policies.

Leisure and Recreation

In November 2018, Kendal Leisure centre hosted the healthier happier Sunday fun day. The event brought together community groups, statutory and voluntary organisations to promote a variety of health and wellbeing topics which was a replication the success from the Fun

Page 295 Day event at Kendal Leisure Centre 18th March 2018. Over 450 people attended the events and it received excellent feedback.

There is work underway to consider the cycle hub at Kendal and a number of key partners are involved.

A recent report was considered at Cabinet on 10 September 2018, to approve the next phase of design and development work for replacement leisure facilities in Ulverston. This next phase will establish all the information necessary to inform a future decision on whether to implement the scheme. This next phase will take 9-12 months and will consider:

 Refinement and agreement of facilities mix, including consultation with user groups  The design of the facility to RIBA stage 3  Planning and regulatory compliance  Development of funding agreement with GSK  Funding application with Sport England  Revision to the existing leisure partnership contract  Transition arrangements for access to facilities during a construction phase

Swim safe

A national programme that offers free outdoor swimming and water safety sessions for children aged seven to 14 has completed its fifth year at Windermere. Swim Safe was created by Swim England - the national governing body for swimming in England - and the Royal National Lifeboat Institution, the charity that saves lives at sea. The Council contributes £5,000 a year to Swim Safe due to the vital safety messages it teaches children and are the only council in the country to do so.

Licensing and Gambling

The Licensing and Gambling service are continuing to work in partnership with Cumbria Constabulary to develop a multi-agency hub. Other key areas of work focus have included:

 Review of Statement of Gambling Licensing Policy  Introduction of the New Animal Licensing Legislation  Review and redesign in the way the service operates in line with the Customer Connect programme  Review of Street Trading consent

Page 296 South Lakeland District Council Council 18 December 2018 Executive Report – Mid Year 2018/19

Portfolio: Economy and Assets Portfolio Report from: Cllr Graham Vincent

Portfolio Responsibilities

The Council Plan objectives as they relate to the portfolio are of work, and cross-cutting work developed through the Local Plan and Economic Development Strategy.

Working in partnership to ensure a thriving and prosperous District within the context of the wider sub region, through effective economic development, regeneration and transport strategies.

Working in partnership to ensure thriving and prosperous town centres throughout the District.

Providing public realm infrastructure to promote the local economy.

Promoting small businesses in both towns and rural areas.

Encourage and advocating for infrastructure investment to support economic growth.

Policies, Plans and Strategies

 Economic Development Strategy  Asset Management Strategy

Key Areas:

 Economic Inward investment  Business Support and Sector Development  Visitor Economy  Town Centre Planning, Car Parks and Transportation  Markets  Asset Management

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Economic Inward investment

The Council is continuing to build relationships with our key partners around Morecambe Bay in the Lancaster and South Cumbria Economic Region, building on work previously commissioned and the joint statement of intent to collaborate on economic development initiatives. Woking together we will be better placed to meet the economic and social challenges that our areas face, especially in regard to the demographic challenges projected for our area.

The Council has been and will continue to be heavily engaged with the Cumbria Local Enterprise Partnership on the development of the Local Industrial Strategy for Cumbria with officers directly involved with the writing group. This will complement the work we are doing within Lancaster and South Cumbria and set out how Cumbria will facilitate the delivery of the key priorities in the National Industrial Strategy. This document will likely guide future investment priorities within the County and officer involvement with collating the evidence base and development of the key place based initiatives will ensure South Lakeland is fairly represented.

As these agendas progress, the Council will review its 2014 Economic Development Strategy to ensure it is fit for purpose and will enable us to meet the economic opportunities and challenges of the next 5 years. This will be developed in conjunction with the overview and scrutiny committee.

We will continue to work with partners such as developers and landowners to help facilitate employment sites being brought forward and much needed commercial space be delivered.

We will lobby relevant public and private bodies for investment in infrastructure to unlock allocated employment sites and help support the development of the necessary businesses cases to support this investment.

We will work to ensure that as the next local plan is developed it has adequate provision for employment space in the right locations to meet our businesses needs and aspirations. This will be informed by an evidence base, made available through a record of business engagements with the Council’s Economic Development Team and responses to the annual Business Premises Survey, the results of which for 2018 will be made available in early 2019.

Business Support and Sector Development

We will continue to work with partners to provide business support services within South Lakeland for both Start-up and existing enterprises. We will review the partnership arrangement with Cumbria Chamber of Commerce and, as the existing agreement reaches an end on 31 March 2019, will determine how business support activity is best delivered beyond the end of this financial year.

The Invest in South Lakeland website and associated social media accounts continue to be a resource for businesses and entrepreneurs, both those already based in the area and those looking to relocate. Information is available on commercial property, finance, recruitment, business support and advice.

Additionally to this, we will explore alternative business support mechanisms with our partners in Barrow and Lancaster to provide a world class support services that is integrated with Lancaster Universities exceptional business support programmes and encompasses a wide range of support such as productivity initiatives and access to finance.

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With partners across Morecambe Bay, we will continue to identify our key sectoral strengths and work with industry, the LEPs and relevant government departments to ensure they are supported to grow and deliver world class employment opportunities for our residents.

Following a postal ballot on 30 November is was announced that the businesses of Kendal voted to renewal the Kendal Business Improvement District (BID) Scheme. The annual levy created from the BID is used invest in initiatives to benefit local traders who are part of the scheme. Following the vote outcome it will continue for a further 5 years.

Town Centre Planning, Car Parks and Transportation

The Kendal Town Centre Masterplan will be coming to completion early in 2019 and will incorporate both the Strategic Car Parking Study and the 2nd stage of the Kendal Strategic Transport Infrastructure study being jointly commissioned by the County, District and town council (Kendal). The Masterplan will set out a vision for the future development within Kendal and ensure there is a clear plan for Kendal to meet the future challenges high streets will face as we move forward.

We will continue to work in Ulverston to bring forward key regeneration opportunities such as at Canal Head and the Former Brewery site to maximise private sector investment and positive outcomes for the town.

Where there are willing local partners we will help to facilitate improvements to town and village centres.

Markets

This next financial year will see the start of a market consultation to look at ways of improving Kendal indoor and outdoor market. The market is an extremely important asset for the Town and should be seen as an economic driver for the Town. Consultation will take place with the traders, public, local businesses, Kendal BID and Kendal Futures as well as other stakeholders to look at ways of rejuvenating the market, whether that be a Capital investment in the infrastructure or other innovative ways to improve the offer. The main aim is that by the end of the financial year 2018/19, a clear strategy will be in place to take the markets forward to ensure they thrive in the longer term.

Asset Management

In summer 2018 a report was brought to Cabinet with recommendations for a new corporate asset strategy which looked at an investment strategy for the Council’s land and building portfolio. This follows the asset review completed by Lambert Smith Hampton (LSH). The main change to the strategy will be the formation of a Strategic Asset Management Plan (SAMP) panel to provide clear direction on all key decisions to be taken on our land and building portfolio. Investment will be focused on where it meets with the Council’s priorities, for service requirements/ efficiency or for maintenance requirements. The asset review has highlighted all key assets with guidance for each asset. The SAMP panel will be key to drive these priorities forward looking at a 10 year programme.

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Page 300 South Lakeland District Council Council 18 December 2018 Executive Report – Mid Year 2018/19

Portfolio: Environment Portfolio Report from: Cllr Dyan Jones

Portfolio Responsibilities

To take the lead on Waste Management/ Recycling and relevant Council Plan measures under the environment objectives.

Providing and maintaining parks infrastructure.

To develop and implement a Playground Strategy.

Policies, Plans and Strategies

 Waste Management Strategy  Air Quality Strategy and action plan  Active Travel Strategy and action plan

Key Areas:

 Waste Management and Recycling  Street scene  Community micro energy schemes  Carbon/ Greenhouse gas Reduction  Green agenda – Low carbon reduction  Public realm (Parks and open spaces, including cemeteries)

Page 301 Waste Management and Street Scene Recycling On the Go

The Council has undertaken a trial of 3 litter bins for the segregated collection of plastic and cans, alongside general litter bins at 2 locations in Kendal. Initial findings are that the bins were heavily contaminated and this prevented the plastic and cans being recycled.

Litter Bin Technology

The Council is currently trialling sensors in 104 litter bins that measure the fill level of the bin and collate usage data. This trial is on-going and has already resulted in a 75% reduction in the number of bin empties required on that round. The Street Cleansing Service is considering a wider review of the litter bin operation to determine the options available to improve service efficiency.

In-Cab Technology

The Waste Management Service is working on the procurement of in-cab technology for waste and recycling collection vehicles that will help deliver improvements to customer service and offer opportunities for service efficiencies. A Project Board and a Project Delivery Team have been created to progress this development in conjunction with the Customer Connect team.

Waste Collections Policy

A Waste and Recycling Collections Policy is being drafted for presentation to Cabinet in January. This will provide greater guidance and information for customers and staff to deliver a consistent service.

Royal British Legion Project

The Street Scene service was proud to work with the Royal British Legion to use SLDC vehicles to remember and thank the people who served their country and remember their sacrifices. The Council’s social media feeds to further raise awareness of this project were viewed over 14,000 times; with further awareness as those posts were shared across other users and platforms.

Right 2 Work Contract

The Council has a bulky waste service for the collection of furniture and domestic appliances; which is provided under contract by Right 2 Work. The service was recently recognised by the Association for Public Service Excellence, who short-listed the service in the Innovation category of their annual service awards. The service has also been short- listed in the Local Government Chronicle (LGC) Awards for Best Service Model. The awards ceremony for the LGC Awards are held in London in February.

Carbon/ Greenhouse Gas Reduction and Green Agenda

The Green Team has been reintroduced to provide leadership in reducing effects of climate change and implement the single use plastic goal. The green team is taking on the responsibility of informing, influencing and implementing actions to reduce the impacts of climate change and reduce carbon/ greenhouse gas reduction. Informative sessions were held across the summer with communities and an action plan has been introduced. The Council is continuing to investigate the opportunities to reduce single use plastics throughout

Page 302 the authority, officers and member are working collaboratively to identify actions to take forward such as milk for meetings in the Town hall will now be in jugs and the use of environmentally friendly cleaning products, and order products (where possible).

The Air Quality Annual Status Report (reporting on progress in improving air quality in 2017) was sent to Defra in June. The report shows that levels of nitrogen dioxide monitored by the Environmental Protection Team continue to fall across the district, with only one site (Burgundy’s on Lowther Street) still failing to meet the Government’s annual mean objective. It also reports progress on actions in the Air Quality Action Plan.

In July the report received approval from Defra, who said the report was well written, concise and presented all the required information. They recommended that we further review our monitoring strategy, as many sites still in operation have very low nitrogen dioxide concentrations, and that we undertake continual reflection on the Air Quality Action Plan. This work is being undertaken.

A leadership event was held in October to progress the aims of the Cumbria and Lancashire Air Quality and Public Health report. This was well attended by Environmental and Public Health Officers, Members and Public Health Chiefs. A report from the day is being drawn up by Public Health colleagues to work out the next steps.

The Council has also begun supporting a free service through the Local Energy Advice Partnership (LEAP) to help vulnerable households across the district who are suffering financial hardship to support in saving energy, money and fuel poverty. Households who are eligible get a free home visit from LEAP to check they are on the cheapest energy tariff and receive energy saving tips.

Public Realm

The Council is continuing to work in partnership with Continental Landscapes Ltd throughout 2018/19 to deliver quality grounds maintenance and support to community groups.

The first phase of the enhancement project at Noble Rest Park has been completed. This phase saw the installation of new drainage and pathways following partnership working with the Friends of Nobles Rest, Kendal Town Council and Kendal Civic Society. A family friendly opening event was held in September to mark the success of phase 1 and officially opened by the Lord Lieutenant of Cumbria.

Officers are continuing to work on the Miller ground Enhancement Plan. The Group is continuing to raise funding for the playground.

Following a recent Cabinet decision it was agreed to transfer the management and ownership of Longland Park to Windermere Town Council. The Council will continue to assist with maintaining the park but the Town Council will investigate potential options to create a more valuable site for the community.

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Page 304 South Lakeland District Council Council 18 December 2018 Executive Report – Mid Year 2018/19

Portfolio: Finance Portfolio Report from: Cllr Andrew Jarvis

Portfolio Responsibilities

The development of strategic policy to ensure that the Council has put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources, i.e. Value for Money.

To ensure that the Council has proper arrangements in place for securing financial resilience.

Policies, Plans and Strategies

 Medium Term Financial Strategy  Budget Framework  Procurement Strategy  Discretionary Benefit and Rate Relief Policies  Council Tax Reduction Scheme

Key Areas:

 Strategic Finance  Budget Monitoring  Treasury Management  Capital Programme  Value for money  Procurement  Savings Programme  Payments and Sundry Debtors  Insurance and Risk Management  Benefits Administration  Council Tax Collection

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Budgets and Medium Term Financial Strategy

The Medium Term Financial Plan (MTFP), which includes the Council’s Financial Strategy, looks at projected income and expenditure over the next five years. The 2019/20 – 2023/24 MTFP was approved in July 2018. The plan highlighted the impact of ongoing cuts in funding, in particular with £613k impact of ‘negative RSG’ expected in 2019/20, as well as the uncertainty around future funding with a proposed 75% localisation of business rates and the Fair Funding review, which will determine how much business rate income will be retained by the Council in the future to fund services.

The MTFP is kept under regular review. A draft budget report elsewhere on this agenda updates the assumptions and financial projections within the MTFP, updates the latest position regarding Government funding plans and requests approval for an update of the Capital Programme for 2018/19 onwards.

Procurement Strategy

The Council’s Sustainable Procurement & Commissioning Strategy 2016-2019 sets the framework for South Lakeland District Council (‘the Council’) to purchase goods, services, and works to deliver value for money and to meet the needs of local citizens. It incorporates the most appropriate elements of best practice in structure, policy and procedure, and will remain sufficiently flexible to respond to both internal and external change. Council approved a Procurement Schedule as part of the budget papers in February 2018. This delivers Council services in accordance with the Procurement Strategy. The strategy is being reviewed to ensure it meets best practice and is consistent with the LGA’s National Procurement Strategy for Local Government in England 2018 and any updated will be reported to Overview and Scrutiny Committee and Cabinet in January 2019 and Council in February 2019.

Strategic Finance

Officers prepared the Council’s statutory accounts, the Statement of Accounts, by the end of May 2018 in line with the statutory requirements. The accounts received an unqualified audit report in July 2018 from the Council’s external auditors. The Finance Team are congratulated on achieving this stretching deadline without major issue.

Budget Monitoring

Although budget monitoring continues all year, the composite Corporate Financial Monitoring report commences from Quarter 2 with the report included elsewhere on this agenda. Monitoring to the end of period 7 (October 2018) projects a contribution of £112k will be made towards the savings target of £361k for 2018/19 and officers will continue to work to identify further budget savings in 2018/19 to deliver the remaining £249k to meet the full savings target. Quarters 2 and 3 will be considered by the Overview and Scrutiny Committee, Cabinet and Council during the year.

Treasury Management

Updates are provided as part of the aforementioned Financial Monitoring and Budget reports elsewhere on the agenda. The Treasury Management Framework Report for 2019/20 will be reported to Overview and Scrutiny Committee and Cabinet in January 2019 and Council in

Page 306 February 2019. The framework will include a Capital Strategy to clearly link a Council’s spending and financing plans for the medium/long term.

Capital Programme

The MTFP includes a Capital Strategy which sets out the sources of funding of capital expenditure, any restrictions on how that funding should be applied and the process for considering new bids for the capital programme. Work supported by our property advisors, Lambert Smith Hampton (LSH) has allowed the Cabinet to take a long-term view of the likely capital requirements facing the council. Subsequently, Cabinet on 28 November 2918 approved a Property and Land Management Strategy which has informed the long-term requirements and phasing for capital expenditure based on input from LSH. Bids for capital programme schemes have been prioritised during September 2018 with some included in the proposed capital programme and other requiring further business cases. All schemes in the existing programme will be reviewed to ensure they continue to reflect the Council Plan priorities.

Savings Programme

The majority of the savings incorporated into the budget for 2018/19 and later years relate to the Customer Connect programme. Progress in delivering these and other savings is incorporated into the Corporate Financial Monitoring and Budget reports.

Revenue and Benefits

The Revenue’s and Benefits Service continues to make progress with the new software. All payment and recovery cycles are in place and collections are continuing as normal. Additional work resulting from the conversion still remains and continues alongside normal day to day processing.

Work is continuing with Capita and Meritec to assist with the council’s Customer Connect project and should be fully implemented over the next 3/6 months. This will see residents being able to access their information and records on-line. In addition a full set of interactive processes will be available including the ability for customers to make arrangements, apply for discounts and notify changes in circumstance electronically direct into our new back office systems.

Benefits Administration

Performance of the benefits team continued to be sustained at a high level since the implementation of the new software. Changes in Circumstances for both Housing Benefit and Council Tax Reduction are being processed within the target times contained in the service plan. New claims are currently being processed within 27 days of receipt, with delays generally down to awaiting information from the customer. This is improving week on week.

Rollout of Universal Credit full service for those customers who fall under Kendal Jobcentre Plus (which deals with the majority of the District) took effect in September 2018, and Stage 2 full service takes effect from 05 December 2018 (Western Areas served by Barrow Jobcentre Plus). This means we are currently receiving a limited number of new claims for Housing Benefits for those who are exempt from receiving housing costs via Universal Credit in the Kendal area, and from all new claimants who fall under Barrow Jobcentre Plus until the gateway to claim is closed on 05 December 2018.

Page 307 We are continuing to work in partnership with our colleagues at the DWP to ensure that the transition to Universal Credit for our customers is as seamless as possible, and we are providing assisted digital support to assist those residents are having difficulty in making a claim for Universal Credit, in addition to ensuring that we maximise benefit entitlement through Council Tax Reduction and Discretionary Housing Payments where appropriate.

Council Tax Collection

Council Tax collection at the end of Q2 was behind target however, recover procedures are now back in place after the implementation of the new system and it is expected that the collection rate will remain close to target.

Collections rates continue to be closely monitored. The collection rates as at 31 Oct 18 are as follows:

Council Tax – 67.75% This is 0.07% below the target of 67.82%

NDR – 64.40%

NNDR Collection

Collections of Business Rates are 55.73% which is 0.2% lower than last year. Normal collection procedures were put back in place in mid-August and it is expected that collection rates will continue to move closer to target as recovery procedures continue to take effect.

There has been a continued increase in the number of businesses paying over 12 months rather than 10.

Collections as with Council Tax are closely monitored and where possible the council works with businesses to ensure business rate liabilities collected as sympathetically as possible

Fraud

The Council remains pro-active in tackling fraud. This involves working closely with the DWP on Housing Benefit fraud. The Council have also signed up to a joint working arrangement with DWP to prosecute Council Tax Reduction as part of a joint investigation.

Fraud assist South Lakes Housing with RTB application checks. The Council also takes part in the Cabinet Office National Fraud Initiative data matching exercises and will continue to do so.

A fraud risk-assessment has been carried out with all departments to ensure the Council has identified areas of potential fraud and has introduced appropriate anti-fraud measures.

New starters to the Council attend Fraud training as part of the induction process.

Page 308 South Lakeland District Council Council 18 December 2018 Executive Report – Mid Year 2018/19

Portfolio: Health and Wellbeing Portfolio Report from: Cllr Philip Dixon

Portfolio Responsibilities

To work with other tiers of government, community groups and other relevant partners to enhance the health and wellbeing of residents.

Alleviate the harmful effects of poverty in the district, looking at issues to address those who are disadvantaged.

Working with key partners with regards to welfare reforms.

Nominated representative on the Health and Wellbeing Board as appropriate.

To drive our Localism agenda.

Policies, Plans and Strategies

 Community Strategy  Health and Wellbeing Strategy  Public Health  Community Safety Strategy

Key Areas:

 Localism  Devolution  Public Health  Community Development  Crime and Disorder Reduction Strategy  Voluntary Sector in relation to Health and Wellbeing Sector  Health and Safety

Page 309 Devolution

The Council continuously monitors any updates regarding devolution deals closely to prepare for any changes or mitigations that may be required from the County Councils outcome. SLDC are continuing to progress key relationships with other authorities in health, housing and economic growth.

Public Health

Key areas to highlight in relation to public health include that the smoking prevalence for South Lakeland has dropped below 10% (9.4%) according to Public Health England Statistics.

96% of food businesses in the district have Food Safety rating of 5 or 4 meaning they have a good standard of food hygiene. According to Which Consumer Insight, for 2016/17 South Lakeland was in the top 5% for good food hygiene levels at catering establishments, overall ranked at 18 out of 389. The statistics for 2017/18 have not yet been released.

The Council is continuing to encourage food establishments within the district as well as neighbouring authorities to take part in a new Healthier Menus and Breastfeeding friendly schemes. At present 80 businesses and public buildings have signed up to the Breastfeeding Friendly Award. Taking part in the award is a way that communities and businesses can show that they welcome and support breastfeeding. There are high numbers of sign ups in Kendal and Ulverston

Officers have been supporting the development of the Cumbria Public Health Strategy. This strategy is based around the determinants of health, which recognises the built and natural environment, the type of employment people are involved in and the activities we take part in are some of the main factors influencing health. The Public Health Strategy will be taken to Overview and Scrutiny Committee, Cabinet and Council in the New Year.

The Council has created a Health Advocate group to look ways of supporting better physical and mental health of employees across the organisation. This group has been working towards and successfully achieved the Bronze Better Health at Work Award.

Walk Leader training is currently being offered to increase social walking to members and officers. Members can use the training to offer their own walk leader training in their local community and officers to run lunchtime walks with colleagues or in their local area. The training covers:

 The benefits of walking, how to overcome barriers and motivate others to walk  What is a Health Walk and the Role of the Walk Leader  How to plan, organise and lead a walk safely  Route Planning and Risk Assessments

Community Development and Localism

The Building Financial Resilience Partnership is continuing to work with external organisations to offer financial support opportunities across the District. The aim of the partnership is to ensure communities are not excluded from an acceptable standard of living.

The partnership has been organised into 7 task groups:

1. Increase partner collaboration and publicise support available

Page 310 2. Build local wealth 3. Increase access to skills and education 4. Reduce fuel poverty 5. Food waste and re-distribution 6. Increase sign up to Environment Agency Flood warning service 7. Investigate Poverty Truth Commission taking place in Morecambe

Following a recent meeting partners have expressed a strong continuation of the group as the meeting are developing into a creative collaborative networking session where new initiatives and links are being taken forward.

To date the group has been successful in meeting some of the key outcomes from the Building Financial Resilience Action Plan. A fuel poverty and money advice scheme (LEAP) has now been launched to provide free energy saving household improvements and advice on switching and budgeting to households within South Lakeland experiencing fuel poverty.

The Morecambe Bay Poverty Truth commission attended a partner meeting and the group is now linked in with their work. South Lakes News are also including articles in each issue to give practical advice/signposting to raise awareness of helpful schemes and promote the work of partners.

The Council is providing ‘Assisted digital support’ to assist customers in making and maintaining claims for Universal Credit and referring customers having difficulty with payments to the ‘Personal Budgeting Support’ course provided by Citizens Advice Bureau. Ongoing improvements are being made to the Councils webpage links to the Building Financial Resilience page. A social media campaign to get information out to those in need is currently in the planning stages. The Councils Revenue and Benefits department are managing alternative payments arrangements of housing benefit, or Universal Credit (not rent) to pay direct to landlords in certain circumstances.

The number of organisations using the Multi Agency Referral Systems (MARS) has increased from 60 to 90 (correct in September). Age UK have used the partner meetings to promote this system and have also committed to promoting the system within small charities. The Kendal Integrated Care Communities (ICC) have also been made aware of the resources available through MARs to aid with ‘social prescribing’.

The Council will continue to assist communities by building relationships with parish councils to promote the benefits and opportunities of localism.

Crime and Reduction Disorder

The South Cumbria Community Safety Partnership (CSP) identified four key priorities for 2018/19. These would include a focus on improving and increasing awareness on Mental Health, Domestic Abuse, Child Sexual Exploitation and Alcohol and Violent Crime.

The South Cumbria CSP group meeting has maintained excellent attendance from all agencies who have responded to its thematic agendas focusing on the priorities.

To date the CSP has linked with Morecambe Bay Clinical Commissioning Group around mental health pathways from prison and provided 10 Get Safe Online cybercrime workshops attracting just under 200 participants. The CSP has also funded CADAS to work with Springfield (Domestic abuse support in South Lakeland) to work with victims and perpetrators to tackle their substance abuse.

Page 311 The Applied Theatre in Cumbria project is launching year 2 with a ‘Meet the Creative Team’ event in January 2019. The event will allow participating schools and stakeholders to contribute to the performance and script. The theme around the building critical thinking and decision making skills for 14 year olds based around scenarios of drugs and County Lines.

Health and Safety

The Corporate Health and Safety Advisor is working closely with Human Resources to coordinate behavioural safety and behavioural framework aims and objectives which we anticipate will lead to a culture responsibility. Health and Safety will also play a big part in any future training for our staff as part of the Customer Connect process and training of staff continues to embed the positive safety culture we are working toward in our vision.

Street Scene and Health and Safety continue with endeavouring to improve safety performance by implementing a fair and just culture. All future recycling boxes will be 44 litre rather than 55 litre, this will reduce staff fatigue and incrementally reduce the potential weight of boxes and help reduce potential MSD’s.

SLDC’s partnership with Craven DC continues with the implementation of a three year safety and health strategy. This has also led to sharing good practice and engagement with staff from both Councils.

Page 312 South Lakeland District Council Council 18 December 2018 Executive Report – Mid Year 2018/19

Portfolio: Housing, People and Innovation Portfolio Report from: Cllr Jonathan Brook

Portfolio Responsibilities

Implementing of the Local Plan and Council Plan housing objectives.

Working in partnership to improve the standard, availability and affordability of housing in the District to meet local needs, championing these issues at national, regional and sub-regional level.

The Council Plan objectives in relation to improved customer engagement and communication.

Looking at innovative ways of working.

The organisation of the Authority relating to the Council’s central services including Employee relations.

To support the Leader of the Council and to deputise in his/her absence.

Policies, Plans and Strategies

 Local Plan (including Development Management Policies)  Housing Strategy and Policy (including Choice Based Letting Allocation Policy)  Customer Charter and Contact Strategy  IT/ Information/ E Government Strategy  Member Development and Training Plan  Workforce Plan

Key Areas:

 Strategic Housing and delivery (including Housing Enabling and Housing Grants)  Development Management and Building Control  Housing Options and Homelessness Prevention  Customer Services  Customer Connect Programme  IT Services  Member Services  Member Training and Development  HR, Legal and Democratic Services

Page 313 Strategic Housing and Delivery

The Housing service is expected to reach some record outputs in 2018/19 with Disabled Facilities Grant completions up by 115% and Handy Person scheme jobs up by 48%. This is in addition to the national extension of Houses in Multiple Occupation (HMO) licensing from 1/10/18 which is expected to triple the number of licenses issued.

Throughout 2018/19 the Housing and Development Plans team will continue to work closely with private sector housing developers, housing associations and community-led housing groups to deliver more homes across the district. The Council remains on target to meet its 1000 new affordable homes to rent by 2025 target.

Plans to introduce a low-cost loan scheme to enable additional housing associations affordable homes is progressing. The details of the scheme were approved by Cabinet on November 28th and discussions are ongoing about progressing schemes.

Key documents and developments progressing in 2018/19 include: • Publication of a new Homelessness Strategy • Publication of a Housing Supplementary Planning Document • Introduction of a new model for assessing housing needs in rural areas • Commissioning of a new private sector house condition survey Development Management and Building Control

Development Management and Building Control

The service is undergoing a data cleansing exercise in preparation for the Customer Connect Programme, this is due to completed by February 2019.

The service has continued to reduce print costs and encourage digital working. Development Management has adopted digital working methods in connection with becoming ‘paper light’.

The service has experienced some resourcing issues earlier in the year, which lead to a temporary dip in performance. However, these resources issues have now been resolved and the quarter 2 performance statistics exceed government’s statutory targets and was in line with the council’s usual high performance in this area.

Homelessness Prevention

Following the implementation of the Homelessness Reduction Act in April, the second part of the Act came in to force in October with the new duty on prescribed public bodies having to refer potential or actual homeless cases to a local housing authority. This new duty is already being exercised by public bodies.

The review of how the service at Town View Fields is managed has now led to a new fob access entry system being installed, which will give residents the ability to enter and leave the hostel as and when they want, whilst freeing up staff’s time to do other support duties instead of having to constantly let residents in and out of the building. A review of the staff’s shifts and other working practices is under way. A capital project bid has been made in order to refurbish some additional temporary accommodation for families away from Town View Fields as it is no longer considered suitable to have families in temporary accommodation mixing with singles and couples.

The work on the new homelessness strategy is continuing with the evidence base having been completed and sessions with partners being undertaken in order to help finalise the

Page 314 priorities for the completed strategy. Consultations with other partners and service users will also be undertaken.

The Council is currently making a joint bid with Eden District Council to receive a grant from the Government’s private rented sector fund in order to extend the work done with property owners to lease properties and manage tenancies for customers of the Housing Options service and will know the outcome of this bid in early December.

Customer Connect Programme and Customer Services

Since the approval of the Business Case at the July Council the programme has commenced the implementation of Phase 1 of the programme. This includes recruitment to the core team to build capacity to deliver the activity in the work streams. The roles within the Service Redesign team have all been filled and training provided to those already in post. The HR team have recruited to their additional posts which has given the capacity to manage the consultation period for staff.

Formal Staff Consultation commenced on 16th October and concluded on 16th November. Training has been completed which includes Managing Change and Building Personal Resilience, support to complete the Expressions of Interest, pension arrangements and competency based interview techniques.

The core team have run a number of drop in sessions with staff throughout the period of consultation, giving staff an opportunity to ask questions around HR, the job families and service redesign. Feedback and questions from these sessions have been collated and the programme team have responded to them, along with over 350 questions as part of the consultation.

The Change Champions Network has been established. Staff who are the programme’s nominated Change Champions have received training for their role and are now supporting the programme, undertaking a piece of work to support the programme’s transition planning. As part of the network, change champions will receive programme updates and have the opportunity to meet work stream leads.

A plan for engaging with the services on the redesigning of processes has been finalised, with the first of these workshops beginning in November.

We are nearing the technical sign off for the digital platform, this is where we will have created a template transaction that works 100% in line with the overarching design and is what will be used to replicate the functionality to other transactions that we configure as part of service redesign. Digital Development staff have been trained on the new platform and the next phase will be User Acceptance Testing of the functionality and confirmation of the look and feel of the portal.

Workshops have started with the supplier and Eden District Council to finalise the look and feel of the customer account. Transition planning, connectivity to Revenues and Benefits and also training and marketing/communication proposals is being planning.

Risks, issues and budget have been reported to Audit Committee in October and December and to the Customer Connect Steering Group for monitoring on a monthly bases.

IT Services

IT Services are continuing to work on the delivery of the Customer Connect Programme.

Page 315 The service is continuing to make progress in preparing the Enterprise Digital Platform to support single customer records and online accounts. Initial focus is on enabling customers to access various accounts within Revenues and Benefits, this includes Council Tax, Business Rates, Benefits and Landlord.

A team of officers are also developing their skills so that they can configure the digital platform for other services and enable the services to operate through the online account as well as other channels we will continue to provide such as telephone and face to face.

The solutions being in the process of being built for Building Control, Planning and Land Charges will all operate in line with the Enterprise Design and allow interaction with customers through all channels.

IT services are working with Street Scene staff to support the procurement of a new IT Solution which will deliver IT in the CAB for Waste collections. This will provide a range of functionality to allow more streamlined processes to be introduced, all designed to enhance customer service and enable a more efficient way of working for all.

It is also working with a number of other suppliers to build the capability required for the Enterprise Digital Platform, this includes Geographical Information Systems and Document Management. Suppliers are developing their products to help us achieve what the council requires. The service will be able to exploit this capability repeatedly and in different ways as the Digital Platform develops and in line with the redesign of services.

HR Services

Since March 2018 the HR team have been heavily involved in the Customer Connect Programme in terms of the People, Change and Transition work streams. The team to date have accomplished the following:

 Agreed HR Principle  Approved Redundancy Policy  Produced a timeline of activity  Provided leadership workshops  Gained Council approval of the proposed Leadership Structure  Held road shows held across different venues across the whole organisation which resulted in the new Personal Qualities Framework being developed  Introduction of Change Champions  Conducted Managing Change and Building Personal Resilience workshops  Preparing for Competency-based Interview Workshops  Completion of the consultation document which included the various processes to be undertaken to ensure we adopt a fair and transparent approach to structure and service redesign implantation (75 pages)  New role profiles developed  New competency-based interview process developed  Consultation complete including 121’s for affected employees  Expressions of Interest for Voluntary Redundancy and Interest for roles in the new structure received  Formal response regarding consultation feedback was released internally on 3 Dec  Structured HR team in place working on Business as Usual activity and Customer Connect  Organisational development work is commencing to look at skills required during transition

Page 316 The HR team have been/continue to support all employees admirably during a programme of change.

As well as supporting the Customer Connect Programme the HR team are also continuing with business as usual.

Legal and Committee Services are continuing to provide advice and support across the organisation. The services is continuing to build on the use of the electronic case management system to support the new digital ways of working.

Committee Services have developed the committee agenda system (ModGov) to increase the number of officers and members working paperless and access committee agenda remotely. The system is automatically set up for with the relevant committees for individual members and allows them to make personal notes/ annotations/ comments as previously on paper copies.

Legal and Committee Services/ Member Services and Member Training and Development

Over the last few months, Legal has been providing significant support in relation to a number of key projects. They include the affordable housing loans scheme, the ERDF scheme (check if this is public knowledge), an innovative empty homes grant scheme and support for an upcoming complex planning appeal. Moving forward, the team will continue to offer support to all areas of the business on both operational and strategic matters so as to assist in ensuring effective business as usual during the transitional phase of Customer Connect.

Committee Services has continued to support all officers in embedding the report management system to ensure that the Council’s business is transacted effectively. The team has commenced work on the annual calendar of meetings and the annual review of the Constitution.

The roll out of corporate kit has been implemented and in total, 38 out of 50 Members now use SLDC kit. Member Services are providing ongoing support and guidance to Members. The corporate kit enables all Members to access systems such as Skype for business and the Council’s intranet and E-Learning and encourages paperless working supporting the Customer Connect Programme and new GDPR regulations.

On-going training sessions will be provided throughout 2018/19 and the team has commenced preparation for the training calendar for 2019/20, having taken on board feedback from Members.

All Members will continue to be offered various training opportunities throughout the upcoming financial year. During September to November 2018, Personal Development Plan meetings were offered to all Members through face to face or Skype meetings. To date, 7 of our Members have currently completed their PDPs.

The service will also be trialling and launching the Local Government Association Councillor E-Learning Package to allow Members to undertake training remotely. The Member Support Steering Group (MSSG), will be testing the e-learning site and offering their feedback at their next group meeting in January 2019, before the final package is rolled out to Members.

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Page 318 South Lakeland District Council Council 18 December 2018 Executive Report – Mid Year 2018/19

Portfolio: Promoting South Lakeland Portfolio Report from: Cllr Giles Archibald

Portfolio Responsibilities

Working with partners and stakeholders in the public, private and voluntary sector, at national, regional and sub-regional level. To act as an ambassador and advocate for the Communities of South Lakeland.

To represent the Council on local and other strategic partnerships including nominated representative on the Cumbria Local Enterprise Partnership as appropriate.

The development and implementation of the Council Plan.

The Council Plan objectives in relation to quality of service and high performance culture.

Policies, Plans and Strategies

 Council Plan (incorporating the Five Year Strategy)  Performance Management  Equality Scheme  Emergency Plan  Communications Strategy

Key Areas:

 Community strategy/ area planning/ development of recovery group  Emergency Planning  Performance Management  Local and Cumbria Wide Strategic Partnerships  Relationships with Government Departments and other relevant authorities at a sub- regional, regional and national level  Media and Communications

Page 319 Council Plan

The current Council Plan is in place until 2019. A review of the Council Plan is currently underway. This has involved a consultation with key stakeholders to reflect key strategic developments. The draft will be presented at Overview and Scrutiny in January 2019, leading onto Cabinet and finally Council in February.

Community Strategy/ Area Planning and Development of the Recovery Group

The Council is working closely with the EA to develop and implement plans to adapt the local infrastructure to protect the communities against the increased frequency and intensity of storms resulting from climate change.

Emergency Planning

South Lakeland District Council is supporting Community Resilience Groups by ensuring that they receive situational awareness information at the earliest opportunity. The Council is working with agencies to formalise a Cumbria Resilience Forum process that communicates this information to Community Resilience Groups. In the meantime the Council has put in place a temporary email arrangement and this was implemented during Storm Callum this October. As a result many ‘thankyous’ were received from community groups.

The Council is supporting the Resilience Unit to provide a new online facility where Community Resilience Groups can upload their emergency plans and update their contact details. There should also be the opportunity for two way agency to community communication - and for community to community networking. The facility should also allow the public (and organisations) to register offers of voluntary support and register offers to donate goods.

The Council is also working with agencies to put in place a public online portal - where real time information can be ‘posted’ during an emergency. All ‘posts’ will be validated and might include information on areas flooding, blocked roads, closed bridges etc. This might include pictures and videos and commentary. Any member of the public would be able to keep an eye on this site for the latest updates on the situation. This has already been trialled by Dumfries and Galloway Police and has proved very popular with the public.

The Multi-Agency Intelligence Cell is a high priority for Cumbria Resilience Forum. The Multi- Agency Intelligence Cell will collate intelligence during an incident and will inform multi- agency responses and enhance prioritisation. The Council is working with the Police and other agencies to formalise this arrangement within Cumbria Resilience Forum planning.

Staff and Members continue to be provided with training opportunities for key emergency roles. The annual training for the Member’s Emergency Role was held recently on November 28th.

The Government is currently consulting on a set of National Resilience Standards for Emergency Planning – there is an opportunity for the Council to benchmark against these standards once they are finalised.

The Councils Business Continuity planning underpins emergency response and critical services. This October the Council was awarded the highest level internal audit result of ‘Substantial Assurance’ for Business Continuity planning.

The Environment Agency are looking to install river level gauges in Ambleside on Stock Ghyll, in Coniston on Church Beck and in Grasmere on the Rothay. The plan is then to

Page 320 introduce a new flood warning area for each of these communities. The Kendal flood warning area boundaries are being updated to take into account the flooding from Storm Desmond in December 2015.

Performance Management

Throughout 2018/19 Performance Management will focus on the Council Plan measures of success to monitoring progress towards the priorities for South Lakeland.

 Estimates show that the Council is on target to achieve 1000 new jobs in the area by 2025. Since 01/01/14 an estimated 489 new jobs have been created in South Lakeland.

 The Council is on target to deliver the 1,000 new affordable homes for rent by 2025 with a cumulative total of 431 since 01/01/14.

Local and Cumbria Wide Strategic Partnerships

The Council is continuing to engage with the Local Enterprise Partnership (LEP) and Cumbria County Council through a technical officers group to shape and influence policy and specific strategic documents. The LEP Annual report has now been released and I will share a copy with all members for their information.

The Council is working jointly with Lancaster City and Barrow Borough Councils to enhance the South Cumbria and Lancaster Economic Region strategy to enhance economic activity which will benefit all three districts. The Leaders have contacted all the Local MP’s to highlight the vision, outcomes and priorities that the initiative will deliver for the benefit of our residents and businesses.

The prospectus has now been agreed and the Leaders and Chief Executives plan to host an event where key business leads from each area and MP’s will be invited to launch the prospectus and actions moving forward in the New Year.

Another local partnership the Council has supported to date include sponsorship of the Cumbria Sports Awards held on 30 November, led by Cumbria County Council, at which SLDC presented an award.

Relationships with Government Departments and other relevant authorities at a sub- regional, regional and national level

The Council has continued to raise any concerns to government offices and other relevant authorities surrounding issues that cause the district difficulties. For example as Leader, I have attended meetings in London, Ulverston and Carlisle to discuss with Government, Northern Rail and Network Rail the poor quality of the rail service in the County as well as writing to the Minister of Transport.

I recently attended a meeting in Westminster with Senior Management leads of GSK to discuss the closure of part of their operation in Ulverston to highlight some potential rationales for the future.

As Leader I also attend the Cumbria Leaders Board to discuss key Cumbria wide issues and seek partnership working to implement resolutions. I have recently raised concerns regarding the increasing levels of child poverty and addiction, effects of Climate Change on Cumbria to raise awareness and encourage other districts to mitigate actions. Throughout the summer myself and Cllr Jones met with members of different communities across the

Page 321 district to develop a list of Council led actions to help mitigate against Climate Change. The Green Team has been established to help support the actions moving forward.

Media and Communications

The Council’s communications team aim remains to keep residents and other stakeholders fully informed about what the council does in a way which supports Council Plan priorities.

The Council has been delivering messages using all available channels including newspapers, TV, radio, websites, social media, and other digital platforms. The Communications operation is merged with Customer Services to provide a consistent joined- up approach to how we interact with the public. The use of digital channels to target communications more effectively is being built upon.

Most recently the winter edition of South Lakeland News has been sent to all households throughout the district to highlight the Council successes to date and keep residents up to date with Council projects and initiatives.

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