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Committee Ref COMMITTEE REF: REF: EX/06(B)/20 NOTICE OF MEETING COMMITTEE : EXECUTIVE DATE : MONDAY, 29 JUNE 2020 TIME : 18:00 PLACE : VIRTUAL MEETING VIA *SKYPE , COUNCILLORS : SIMMONS (CHAIR) A. KHAN BURNETT MALCOLM CASTLEMAN K. MALIK J. HUSSAIN SHAW M. HUSSAIN TIMONEY QUORUM : 3 MEMBERS Name (01582 546070) Email [email protected] Skype Meeting Link Item Description INFORMATION FOR THE PUBLIC PURPOSE: The Executive is the Council’s primary decision-making body dealing with a range of functions across the Council’s activities and services. *SKYPE: During the Covid 19 emergency period, this meeting will take place virtually, via Skype. To access the meeting, please click on the link to the meeting above. Page 1 of 177 AGENDA Agenda Subject Page Item No. 1. APOLOGIES FOR ABSENCE 2. PUBLISHED RECORD OF THE MEETING (TO BE SIGNED IN DUE COURSE) None this time. SECTION 106, LOCAL GOVERNMENT FINANCE ACT 1992 Those item(s) on the Agenda affected by Section 106 of the Local Government Finance Act 1992 will be identified at the meeting. Any Members so affected is reminded that (s)he should disclose the fact and refrain from voting on those item(s). DISCLOSURES OF INTERESTS Members are reminded that they must disclose both the existence and nature of any disclosable pecuniary interest and any personal interest that they have in any matter to be considered at the meeting unless the interest is a sensitive interest in which event they need not disclose the nature of the interest. A member with a disclosable pecuniary interest must not further participate in any discussion of, vote on, or take any executive steps in relation to the item of business. A member with a personal interest, which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice the member’s judgment of the public interest, must similarly not participate in any discussion of, vote on, or take any executive steps in relation to the item of business. Disclosable pecuniary interests and Personal Interests are defined in the Council’s Code of Conduct for Members and Co-opted members. 3. BUSINESS NOT COVERED BY CURRENT FORWARD PLAN: GENERAL EXCEPTION The Executive Leader to report on any business which it is proposed should be considered by the Executive following compliance with Regulation 10 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012. 4. BUSINESS NOT COVERED BY CURRENT FORWARD PLAN: SPECIAL URGENCY Page 2 of 177 The Executive Leader to report on any business which it is proposed should be considered following compliance with Regulation 11 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012. 5. REFERENCES FROM COMMITTEES AND OTHER BODIES 6. RECOMMENDATIONS FROM SCRUTINY REVIEWS 7. PETITIONS BUSINESS ITEMS CUSTOMER & COMMERCIAL (FINANCE) 8. Emergency Budget Report 5 - 69 (Report of the Service Director, Finance & Audit) 9. Summary Provisional Revenue Capital Outturn Report 70 - 116 2019-20 (Report of the Service Director, Finance & Audit) PLACE & INFRASTRUCTURE (BUILDING ECONOMIC GROWTH) 10. Library Strategy 117 - 177 (Report of the Service Director, Healthy Lives, Children's Joint Commissioning) 11. REGULATION 4 OF THE LOCAL AUTHORITIES (EXECUTIVE ARANGEMENTS)(MEETINGS & ACCESS TO INFORMATION)(ENGLAND) REGULATIONS 2012 To consider whether to pass a resolution under Regulation 4 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 to exclude the public from the meeting during consideration of the item(s) listed below as it is likely, that if members of the public were present during the transaction of the item(s), exempt information within the meaning of the Paragraph(s) of Part 1 of Schedule 12A to the Local Government Act 1972 indicated next to the item, would be disclosed to them. NOTE: RESCHEDULED ITEMS Note: Five days’ notice is hereby given of items to be considered in private as required by Regulations (4) and (5) of the Local Authorities (Executive Arrangements) Meetings and Access to Information) (England) Regulations 2012. Page 3 of 177 Details of any representations received by the Executive about why any of the above exempt decisions should be considered in public: none at the time of publication of the agenda. If representations are received they will be published separately, together with the statement given in response. Page 4 of 177 Emergency Budget Report 2020/21 Report For: Executive Item No: Date: 29 June 2020 Report Of: Service Director – Finance & Audit 8 Report Author: Dev Gopal Subject: Emergency Budget Report 2020/21 Lead Executive Cllr Malcolm Member(s): Wards Affected: All Consultations: Councillors ☒ Scrutiny ☒ Stakeholders ☐ Others ☐ Recommendations 1 The Executive is recommended to: (I) Approve the revisions to the 2020/21 revenue estimates of net expenditure as set out in Appendix A taking into account the impact of COVID-19 and expenditure properly incurred to date for submission to Council. (II) Approve use of reserves of up to £13.4m over two years (£10.4m for 2020/21), as set out in Appendix A, for submission to Council. (III) Delegate authority to the Chief Executive in consultation with the S151 Officer and Finance portfolio holder to allocate the reserves based on progress made on the stabilisation plan. (IV) Approve the revisions to the Capital Programme set out in Appendix B for submission to Council, noting that those projects relating to additional debenture loans to London Luton Airport Limited require specific Executive approval before they proceed, based on appropriate reports and scrutiny. (v) Approve the revisions to the Treasury Management Strategy and note the impact in 2020/21 is not significant due to postponement of capital projects amounting to £64.23m. (VI) Approve the list of in-year savings proposals set out in Appendix C for submission to Budget Council, and approve the service changes necessary to give effect to those savings subject to appropriate consultation taking place and being properly considered. (VII) Approve the additions to the Budget Risk Management Strategy set out in paragraphs 35 and 37 below, for submission to Council. (VIII) Approve the provisions set out in the Revenue Budget Management section, paragraph 40 and 42 below, for management of the budget in the circumstances Page 5 of 177 Emergency Budget Report 2020/21 of the additional financial risks arising as a result of the COVID-19 emergency, for submission to Council. (IX) Note the additional support from Central Government to businesses and community as described in paragraph 28 and Appendix F (x) Note the extent of future financial risks and uncertainties, and the importance of a corporate focus on developing a viable strategy to balance the budget for 2021/22. (xi) Note that further discussion is taking place with MHCLG and Full Council will be updated if there are any notable progress. (xii) Note discussion is taking in place between LLAL and LLAOL, the airport operator, and a further report will be submitted to the Council as the shareholder at the appropriate time. (XIII) Note the feedback received from the public and staff engagement which is summarised at paragraph 72 to 80 and detailed in full at Appendix E. Executive Summary 2 Full Council approved the Council’s 2020/21 Revenue and Capital Budget on 19 February 2020. In accordance with the Council’s Standing Orders, the Executive is expected to manage the budget within the estimates approved by Council, with officers reporting any expected variations together with proposals as to how those may be managed. 3 The COVID-19 Emergency has caused fundamental changes to the Council’s budget. In addition to extreme pressures on many services such as care, homelessness and public health, it has dramatically affected the Council’s commercial activity, particularly the Council’s 100% owned company, London Luton Airport Limited (LLAL), and the company’s ability to pay the dividend that in previous years the Council has used to fund essential services in the town. 4 The extent of the financial impact requires an emergency response with some substantial amendments to the revenue and capital estimates approved previously, in order to deliver a balanced budget this year. New savings proposals are set out in Appendix C, alongside the savings previously approved for the 202/21 budget. It must be noted that those proposals significantly affecting service delivery or jobs are only to be approved for consultation, and at the end of that consultation the Executive will receive further reports in order to determine whether the proposal should be approved, or whether alternative options are required. 5 The total savings as shown in the table below covers four main areas as follows: Impact on workforce: the proposed base budget includes savings of £4 million in changes to organisational structures. It is anticipated that a minimum of 365 posts (12%) across the council are affected. A number of these posts are currently vacant, and every effort will be made to protect jobs by working closely with partner organisations, including schools. However, sadly, it is inevitable there will be redundancies. The council’s organisational change and active redeployment procedures will be used to minimise the number of staff actually made redundant. One of the proposals shown at Appendix C relates to a £500,000 saving Page 6 of 177 Emergency Budget Report 2020/21 from a review of the current senior leadership team structure (corporate and service directors) which currently has three vacancies. Impact on front line services: Where possible this budget seeks to protect cuts to frontline services by making back office efficiencies, contract management savings, savings from buildings being closed and proposals to bring in more income. But given the magnitude of the savings it is unavoidable that some front line services will be affected.
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