Scrutiny Committee Wednesday 14Th September 2016 6.30 P.M

Scrutiny Committee Wednesday 14th September 2016 6.30 p.m.

SCRUTINY COMMITTEE

BURNLEY TOWN HALL Wednesday 14th September 2016 at 6.30 p.m.

Members of the public may ask a question, make a statement, or present a petition relating to any agenda item or any matter falling within the remit of the committee.

Notice in writing of the subject matter must be given to the Head of Governance, Law and Regulation by 5.00pm on the day before the meeting. Forms can be obtained for this purpose from the reception desk at Burnley Town Hall or the Contact Centre, Parker Lane, Burnley. Forms are also available on the Council’s website www.burnley.gov.uk/meetings.

A G E N D A

1. Apologies

To receive any apologies for absence.

2. Minutes

To approve as a correct record the Minutes of the meeting held on 20th July 2016 (available at www.burnley.gov.uk)

3. Additional Items of Business

To determine whether there are any additional items of business which, by reason of special circumstances, the Chair decides should be considered at the meeting as a matter of urgency.

4. Declarations of Interest

To receive any declarations of interest from Members relating to any item on the agenda in accordance with the provisions of the Code of Conduct and/or indicate if S106 of the Local Government Finance Act 1992 applies to them.

5. Exclusion of the Public

To determine during which items, if any, the public are to be excluded from the meeting.

Scrutiny Committee 14th September 2016

6. Public Question Time

To consider questions, statements or petitions from Members of the Public.

PUBLIC ITEMS

7. Notice of Key Decisions and Private Meetings (NKDPM)

To consider the Key Decisions to be taken for the period September to December 2016 (enclosed)

8. State of the Local Economy

To consider a report on the local economy and economic development support (enclosed).

9. Revenue Budget Monitoring Q1 2016/17

To consider Revenue Budget Monitoring in Quarter 1 of 2016/17 (enclosed)

10. Capital Budget Monitoring Q1 2016/17

To consider Capital Budget Monitoring in Quarter 1 of 2016/17 (enclosed)

11. Revenue Budget 2017 – 20 and Savings Proposals

To receive a report detailing the latest position with regard to savings proposals and balancing the Council’s budget for 2017 to 2020 (enclosed)

12. Review Groups update

To receive an update on the work of the Scrutiny Review Groups (verbal)

13. Work Programme 2016/17

To consider any additions to the draft Work Plan for 2016/17 (enclosed)

Scrutiny Committee 14th September 2016

MEMBERSHIP OF COMMITTEE Councillors Councillors

Howard Baker Anne Kelly (Vice-Chair)

Gordon Birtwistle Lubna Khan

Margaret Brindle Sobia Malik

Jean Cunningham Andrew Newhouse

Danny Fleming Mark Payne

Joanne Greenwood Paul Reynolds

David Heginbotham Ann Royle

Mohammed Ishtiaq Andy Tatchell (Chair)

Marcus Johnstone

Please note that phones and other equipment may be used to film, record, tweet or blog from this meeting. The use of those images or recordings is not under the Council’s control. No part of the meeting room is exempt from public filming.

Published Tuesday 6th September 2016

Scrutiny Committee 14th September 2016

BURNLEY BOROUGH COUNCIL

NOTICE OF KEY DECISIONS AND PRIVATE MEETINGS

This Notice contains: a) A list of Key Decisions to be taken by the Executive during the months September to December 2016, published on 19th August 2016. b) Details of dates of meetings of the Executive during the same period at which decisions may be taken in private or partly in private

A Key Decision is an Executive decision that is likely:

(i) to result in the local authority incurring expenditure which is, or the making of savings which are significant, having regard to the local authority’s budget for the service or function to which a decision relates. The Council has said that Capital or Revenue spending over £100,000 will be a Key Decision; or (ii) to be significant in terms of its effects on communities living or working in an area comprising two or more wards in the Borough; A private meeting is a meeting or part of a meeting of the Executive during which the public must be excluded whenever: a) it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during that item, confidential information would be disclosed to them in breach of the obligation of confidence; b) the Executive passes a resolution to exclude the public during that item where it is likely, in view of the nature of the item of business, that if members of the public were present during that item, exempt information would be disclosed to them; or c) a lawful power is used to exclude a member or members of the public in order to maintain orderly conduct or prevent misbehaviour at a meeting.

Meetings of the Executive will be held on the following dates: 20th September, 1st November, and 6th December 2016. Meetings normally start at 6.30pm but times can change so please check the council website nearer the date of the meeting.This Notice will be further updated on the following dates: 3rd and 31st October, and 19th December 2016.

Matter for Purpose Key Anticipated Public or Private report. If List of Contact person & decision Decision date Private give reasons Documents to Executive Portfolio Yes or of decision be submitted No including any background papers

Burnley Housing To approve the Yes September Public Report setting Paul Gatrell, Strategy Housing Strategy 2016 out the issues Head of Housing and Development Control

Executive Member for Housing and Environment

Burnley Town To consider Yes September Public Report setting Joanne Swift, Centre Public options 2016 out issues and Head of Streetscene Space Protection options Order Executive Member for Community Services

Organisation To review the Yes September The report contains exempt Report setting Pam Smith , Chief Review Management 2016 information and is therefore out issues and Executive Structure of the NOT FOR PUBLICATION options Council by virtue of Local Leader Government Act 1972, Schedule 12A, Part I, Paragraph 3; Information relating to the financial or business affairs of any particular person (including the authority holding that information)

Burnley Wood To consider the Yes September The report contains exempt Report setting Anthony Saulle, Overarching variation of the 2016 information and is therefore out issues and Development Team Development Burnley Wood NOT FOR PUBLICATION options Leader, Regeneration Agreement Overarching by virtue of Local and Planning Policy Variation Development Government Act 1972, Agreement Schedule 12A, Part I, Executive Member for Paragraph 3; Resources and Information relating to the Performance financial or business affairs Management of any particular person (including the authority holding that information)

Council Tax To consider Yes September Public Report setting Howard Hamilton Smith, Support consultation on 2016 out the issues Senior Accountant Consultation Council Tax Support Executive Member for Resources and Performance Management

Asset To consider a Yes September Public Report setting Andrew Leah Management review of the 2016 out the issues Property Services Strategy Asset Manager Management Strategy Executive Member for Resources and Performance Management

Play Strategy To consider a Yes November Public Report setting Simon Goff, Play Strategy 2016 out the issues Head of Green Spaces and Amenities

Executive Member for Leisure and Culture

Housing To agree the Yes November The report contains exempt Report setting Paul Gatrell, Development – draw-down of 2016 information and is therefore out the issues Head of Housing and Burnley Wood. land for further NOT FOR PUBLICATION Development Control housing by virtue of Local development in Government Act 1972, Executive Member for Burnley Wood Schedule 12A, Part I, Housing and Paragraph 3; Environment Information relating to the financial or business affairs of any particular person (including the authority holding that information)

Empty Homes – To approve Yes November Public Report setting Paul Gatrell, Compulsory various 2016 out the issues Head of Housing and Purchase Orders compulsory Development Control Type – Public purchase orders report for long term Executive Member for Purpose – empty properties Housing and in the Borough. Environment

A further Notice will be given 5 clear days before each meeting listed above if the meeting or part of the meeting is to be held in private. If you wish to make any representations about why any meeting or part of a meeting proposed to be held in private should be open to the public please send them to: Lukman Patel, Head of Governance, Law & Regulation,Town Hall, Manchester Road, Burnley BB11 9SA.

E-mail: mailto:[email protected] Published: 19th August 2016

ITEM NO

REPORT TO ECONOMIC REGENERATION SCRUTINY COMMITTEE

DATE 14th September 2016 Regeneration and Economic PORTFOLIO Development REPORT AUTHOR Ryan Gifford TEL NO Ext: 3145 EMAIL [email protected]

The State of the Local Economy

PURPOSE

1. To update members on the state of the local economy and key Economic Development support.

RECOMMENDATION

2. To consider the contents of this report

REASONS FOR RECOMMENDATION

To allow Members to discuss the current state of the local economy in Burnley.

SUMMARY OF KEY POINTS

3. A number of indicators are used below to indicate the state of the Burnley Economy. It is by no means a comprehensive picture and the delays in releasing statistical information sometimes means that it is difficult to establish an up to date figure.

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

4 Number of businesses in Burnley

Active enterprises According to the latest data (year 2014) there were 2,675 active business enterprises in Burnley. This is 135 more than the previous year and represents a 5.3% increase in the number of active business enterprises.

This is the second year in a row that the number of enterprises has increased, following a period of decline caused by the recession of 2008.There are now more active business enterprises in the town than before the recession.

Graph 1

(Source: ONS Business Demography 2014)

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

Comparing Burnley against other areas by measuring the number of active enterprises per 10,000 of population. Graph 2 shows us that Burnley has fewer businesses per 10,000 head of the population than the county, region or country as a whole. However, the number of active enterprises in Burnley has been growing at a faster rate than any of its comparator areas. It is therefore important that Burnley continues promoting enterprise and working with businesses to sustain this growth.

Two year growth of active enterprises: 2012-2014 Burnley Lancashire North West Great Britain 8.3% 3.1% 7.3% 7.7%

Graph 2 - Number of active enterprises in Burnley, Lancashire, North West and Great Britain per 10,000 population aged 16+. 2004 - 2014

(Source: ONS Business Demography 2014)

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

Business Births

The number of new businesses created in 2014 (business births) was 360. As graph 3 shows, new busness starts had been on a downwards trend between 2005 and 2010 but have since begun to rise again. The number of new businesses being created in Burnley is now at the highest level since 2005.

Graph 3

(Source: ONS Business Demography 2014)

Comparing business births against other areas by measuring the number of business births per 10,000 of the population. In the North West as a whole and across Great Britain, the number of business births per 10,000 of the population aged 16+ has now surpassed what it was in 2004. Burnley and Lancashire as a whole continue to catch up. However, Burnley has made a more rapid improvement since 2010 than its comparators. See graph 4

Graph 4 – Business births in Burnley, North West and Great Britain per 10,000 population age 16+. 2004 - 2014

(Source: ONS Business Demography 2014)

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

Business Deaths

In 2014 there were 285 business failures or ‘deaths’ in Burnley. This was 55 more than the previous year and the equivalent number to a decade ago, in 2004. The figure for 2014 is 35 less than in 2009 when the number peaked at 320.

Graph 5

(Source: ONS Business Demography 2014)

Comparing Burnley against other areas by measuring the number of business deaths as a proportion of active enterprises. In the most recent year, 2014, Burnley is the only area in graph 6 to have seen an increase, taking it to a level above its comparators. It is also worth observing in graph 6 that in the two years prior to 2014 (2012 and 2013) Burnley’s proportion of business failures was less than all three comparator areas and was less than or equal to Lancashire and the North West in 2010 and 2011.

Graph 6

(Source: ONS Business Demography 2014)

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

Business Survivals The number of new businesses who are still trading in Burnley after 1 year has been higher in Burnley than the average across Lancashire, North West and Great Britain in 4 of the 7 years for which statistics are available. This is for businesses which started trading in 2007, 2008, 2009 and 2011. See Graph 7

Graph 7

(Source: ONS Business Demography 2014)

The number of new businesses still trading in Burnley after 2 years was also positive with Burnley having a higher percentage of business survivals after two years of trading activity, than the county, regional or national level in 4 out of 6 years for which data is available.

After 5 years of trading, Burnley firms have a higher or equal chance of survival than the county, region or national average.

In 2 of the 3 years for which statistics are available Burnley has achieved higher survival rates than its comparators (2008 and 2009) and in 2007 it matched the survival rates of Great Britain. Both of which were higher than the county and region.

Graph 9

(Source: ONS Business Demography 2014) C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

5 Unemployment The combined Universal Credit and Job Seekers Allowance dataset is now the official Headline indicator of the number of people claiming benefits principally for the reason of being unemployed, superseding the Job Seekers Allowance Claimant Count.

It is a count of the number of people claiming Jobseeker's Allowance plus those who claim Universal Credit who are out of work. The coverage of the Universal Credit estimates does not precisely match the Claimant Count definition at the current time, because it includes some claimants who are not required to seek work. Universal Credit estimates continue to be developed by the DwP.

In the most recent month on month change, June to July 2016, the number of people claiming ‘Jobseeker's Allowance benefits plus those who claim Universal Credit who are out of work’ in the borough fell by 10. From 1,640 in June to 1,630 in July.

Graph 11 below shows the month on month change in the number of claimants in Burnley for the past 12 months.

Graph 11

(Graph 11: Source: ONS Claimant Count – Combined Job Seekers allowance and Universal Credit)

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

Graph 12 is a comparison between Burnley, the North West and Great Britain over the last 12 months. The data shows that Burnley has a higher claimant count rate, 3.0% in July 2016, than the North West, 2.3% and Great Britain,1.8%.

A spokesperson for Burnley Job Centre has recently said that he believed the increase in Burnley was due to more stringent fit to work tests introduced by the Government for those claiming ESA (Employment Support Allowance, the modern name for the old Incapacity benefit). Of which Burnley has a higher percentage of claimants than the North West or great Britain.

Graph 12: Source: ONS Claimant Count – Combined Job Seekers allowance and Universal Credit

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

6 Benefit Claimants

Main out of work benefits The number of people claiming main out of work benefits for the entire Burnley borough has increased by 10 in the period November 2015 to February 2016. In February 2016 there were 7,390 claimants.

This very small rise is the first increase since February 2014. The number of claimants have fallen by 1,510 between February 2014 and February 2016.

The number of people claiming key out of work benefits is lower than it was 12 months ago when the number of claimants was 8,040 in February 2015.

Graph 13 (Source: [Nomis] DWP benefit claimants – working age client group)

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

Across the North West the number of people claiming main out of work benefits as proportion of the working age population has fallen in the year from February 2015 to February 2016 from 11.6% to 10.6%.

Within Great Britain there has also been a decrease over the same period from 9.8% to 9.0%.

Graph 14 (Source: [Nomis] DWP benefit claimants – working age client group)

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

Graph 15 provides an insight into the changes which have occurred in Burnley across the individual benefits which make up the sum of the main out of work benefits. Note that claimants can claim more than one benefit.

Graph 15 (Source: [Nomis] DWP benefit claimants – working age client group)

7 Support for business The Business Support Team is currently working with 54 businesses who are either looking to move into the Borough or expand within it. Of the 53 businesses, 28 companies are looking to relocate into the Borough from outside it with the remainder being existing companies looking to expand or new start enterprises. The enquiries come from a range of sectors including chemical, creative & digital, advanced manufacturing and IT & Telecoms. The enquiries cover a range of property sizes from 1,000 – 75,000 Sq Ft and are for a mixture of industrial and office accommodation.

Overall demand remains high for new commercial units and accommodation in the borough. Currently Innovation Drive at Heasandford (the former Michelin plant) is now complete and in addition to Kavia Tooling Ltd and Lomax Offshore Couplings the Business team have also relocated to site; Elite 04 Ltd and Zen Engineering Ltd. In total these four businesses have brought 27 jobs to the site, of which 9 are from out of the borough and 3 are newly created jobs.

The new Exertis headquarters and distribution facility on Burnley Bridge Business Park is nearing completion and due to become operational in the first quarter of 2017. Initially this will bring 400 jobs to the site with an additional 350 to be created over the next two calendar years. A significantly sized remaining plot at Burnley Bridge Business Park has recently been sold to an owner occupier who will look to begin work on site in 2017.

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

A town centre office enquiry of over 3000sq ft, from Alternative Futures has now completed with the support of the business support team. The council worked with the company to relocate to Lodge House from outside of the borough.

An existing site in Dunnockshaw has recently been acquired by two companies; Calderprint a long established printing company and BPMSFX who are one of the UK’s leading special effect companies who specialise in stage and indoor pyrotechnics; the total investment from the two companies of approximately £1.5m, includes acquisition of buildings and machinery – the acquisition of Oak Mill by BPM SFX will lead to a comprehensive refurbishment of a significant building on a key gateway into the borough.

Supporting the Digital sector The business support team have been undertaking a series of activities to develop the digital sector within the town. As the national economy in general digitises, businesses with digital production skills will become increasingly important and sought after. Nationally, job creation in the digital tech economy is growing 2.8 times faster than the rest of the national economy so it is important to put support in place to grow and strengthen the sector at the local level.

Initiatives have included  Facilitating engagement and collaboration;  Supporting a number of education initiatives to develop digital skills at all age levels.  Engaging with supportive organisations and identifying relevant business support programmes  Recognition of the sector and promotion of businesses in the sector  Working to develop the town’s digital infrastructure

Over 50 businesses in the digital sector have been identified within Burnley and around half of these have begun to actively engage as a local group.

Business Week Burnley Business Week was held between 25th and 29th April. The event was a huge success again with over 360 individual bookings from around 240 businesses including new start enterprises and established businesses. The week aims to provide something for every type and size of business and included events held in partnership with other council departments such as support to food businesses from the environmental health team.

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

Business Growth Programme

In June a report was taken to the Executive to demonstrate to members that the Programme is delivering successful outcomes and is making a difference in supporting Burnley businesses. The report also obtained approval from the executive to expand the programme to support growing retail businesses in Burnley & Padiham Town Centres.

The table below demonstrates the outcomes achieved as a result of the support offered to date:-

Target Outcomes (as set out in the 3 year Delivery Plan) 75 Businesses Supported 82 250 Jobs To Be Created 1,220 75 Jobs To Be Safeguarded 208 4 Inward Investment Projects 20 10 Relocation/business growth projects 30 £5m Private Sector Investment Levered £93,279,791

Boost Growth Support Programme.

Boost Business Lancashire is the Lancashire Business Growth Hub led by the Lancashire LEP. All strands of the programme have now been procured and delivery partners are in place. There are three main strands to the growth hub:-

 Growth Support Programme – being delivered by Winning Pitch & Enterprise 4 All. Targeted at supporting high growth businesses and existing business already trading with growth aspirations.

 Growth Mentoring Programme – being delivered by C&B Partners & Orvia (here in Burnley this is Enterprise Lancashire who are part of Orvia). The overall aim is to accelerate the growth of SMEs to stimulate new investment and job creation by systematically identifying and removing the barriers to their growth. Support is offered from a successful business person to address the challenges that any growing business needs to overcome; business planning, finance, sales, marketing, human resources etc.

 The Business Gateway – being delivered by Regenerate Pennine Lancashire. This involves being the first point of contact on the freephone number, diagnosing businesses and supporting them to access a wide range of support from a number of partner organisations.

Lancashire Business Growth Fund The Lancashire Business Growth Fund is a business grant programme operating across Lancashire, funded by central government and delivered by the Chamber of Commerce East Lancashire and Regenerate Pennine Lancashire (who are currently undergoing a name change to Growth Lancashire)

In the month to June 2016 12 Burnley companies have been assisted with grants totalling £864,097. Creating a total of 63 new jobs. The total private sector investment to date in Burnley as a result of the individual projects has been £4,053,090.00. C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

In terms of actual value of grants approved for each district in Lancashire, Burnley ranks 3rd of 14 local authority districts, behind Blackburn with Darwen and Preston.

But when looked at as the amount of grant approved per 10,000 resident population in each district, Burnley ranks 1st out of 14 Lancashire districts. With a much greater share of grant allocation than other districts.

This is a reflection of the continued promotion of the programme by the Burnley Council Business Support team to our businesses and the success of the programme in incentivising companies to invest in growth.

Bondholder Experience Bank

The Business Support team and the Burnley Bondholders have set up an ‘Experience Bank’ to offer their knowledge and experience to help other businesses in Burnley. Between the 175 Bondholders there is a great store of experience of running a successful business to offer advice to other growing businesses. Where businesses want to use the support available the business team will match each request with a knowledgeable bondholder who has been there and done it and understands the demands of developing/running a business.

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

Support for Burnley & Padiham Town Centres

Padiham Town Centre  Flood Resilience Grants for properties affected by flooding on Boxing Day 2015. 44 applications have been received and 17 have been approved to a value of £74,925.65. This is a high level of take up of the grants (68%) and it is thought that it is unlikely we will receive any more at this stage so our focus is on processing those which have been sent to us. One of the next steps is to work towards establishing a Flood Action Group focusing on flood resilience for Padiham businesses and residents.

 Padiham on Parade - June 2016. The event was very successful, attracting over 5000 visitors across the weekend. The team have received fantastic feedback on the event and are now working on next year’s event which will take place 24 to 25 June 2017.

 In order to raise the profile of Padiham businesses and proactively promote Padiham work is well underway on improving the Padiham.org.uk website. This is having positive results with the website increasing users by more than double since January, and sevenfold in June (Padiham on Parade),and tripling the reach of the Facebook page.

 The Town Centre’s team have also been supporting the monthly Farmers & Crafts Market with arranging and setting up the Marquee, and promotion of websites, social media and 2BR radio.

Burnley Town Centre

 Healthy High Streets – Burnley has been successful in becoming part of the Healthy High Streets Programme (Year 3 of a 3 year programme) aimed at increasing footfall, decreasing empty units, attracting investment and increasing jobs in the town centre. The idea is that the Town Centre Partnership, supported by corporate partners including Boots, Marks & Spencer and Wilko, deliver actions which boost the high street. The first meeting of the Healthy High Streets members took place in August and an action plan has been developed to support the agreed Town Centre action plan.

 The International Food Festival (16 to 23 July) was a joint venture between Burnley Markets, Charter Walk and Town Centre Management and was aimed at showcasing the international food offer available on the markets and in the town centre. The event was held in Market Square. Positive feedback has been received from local businesses and customers about the atmosphere and the amount of people the event attracted who subsequently stayed in the town centre. An increase in footfall was noted across the week (705 more individuals counted) and markets footfall is up 3% this quarter.

 Town Centre Partnership. The Town Centre Partnership met in July and focused on Christmas events and late night opening. A new approach to the Christmas

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

Lights Switch On event was agreed with festive attractions around the town centre for a weekend to mark the start of the Christmas period.

 The inaugural Burnley Literary Festival will take place 29 October to 7 November. An interesting and diverse programme of events is being curated and is in the final stages. Events include bestselling author readings, creative writing and illustration workshops, street and theatre performances, poetry and spoken word sessions to name a few. The full programme will be launched in September.

FINANCIAL IMPLICATIONS AND BUDGET PROVISION

8 None.

POLICY IMPLICATIONS

9 None.

DETAILS OF CONSULTATION

10 Head of Regeneration & Planning Policy – Kate Ingram Executive Member for Regeneration and Economic Development- Councillor Sue Graham

BACKGROUND PAPERS

11 None.

FURTHER INFORMATION PLEASE CONTACT: ALSO:

C:\Users\spfarm\AppData\Local\Temp\73d695b4a4704828a3038fde676a4a06.doc

ITEM NO 9

REPORT TO EXECUTIVE

DATE 16th August 2016 Resources and Performance PORTFOLIO Management REPORT AUTHOR David Donlan TEL NO (01282) 477172 EMAIL [email protected]

Revenue Budget Monitoring 2016/2017

PURPOSE

st 1. To report the forecast outturn position for the year as at 31 March 2017 based upon actual spending and income to 30th June 2016.

RECOMMENDATION

2. The Executive is asked to:

a. Note the projected revenue budget forecast underspend of £144k (see the overview table in paragraph 6).

The Executive is also asked to seek approval from Full Council for:

b. The latest revised budget of £15,223k as shown in Appendix 1.

c. The net transfers from earmarked reserves in the quarter of £735k as shown in Appendix 4.

REASONS FOR RECOMMENDATION

3. To give consideration to the level of revenue spending and income in 2016/17 as part of the effective governance of the Council and to ensure that appropriate management action is taken to ensure a balanced financial position.

SUMMARY OF KEY POINTS

4. Revenue Budget Monitoring Process There are 3 in-year reports on revenue budget monitoring presented to the Executive and the Scrutiny Committee during the course of the financial year. This is the first in-year report for 2016/17. In addition to these 3 reports there is a final combined report for revenue and capital to consider the actual spending at the end of the financial year compared with the revised revenue budget. Under the scheme of delegation each budget area is delegated

C:\Users\spfarm\AppData\Local\Temp\c0903ed6db4c469e8a78c5a9a3c5915c.doc

to a Head of Service who remains accountable for the effective discharge of financial management as an integral part of achieving strategic objectives and in turn meeting service delivery priorities.

All Heads of Service have been asked to consider their budgets and provide information and details of any actual or anticipated significant variations between spending/income and budgets.

5. Budget Changes Since the budget was approved, the following proposed budget changes have been made and are shown in Appendix 1:

 Virements approved by Heads of Service and Management Team.

 Executive Member for Resources and Performance Management decisions confirming additional awards of grant and contributions.

 Decisions made by the Executive.

Members are asked to approve the latest revised budget of £15,223k as shown in Appendix 1.

C:\Users\spfarm\AppData\Local\Temp\c0903ed6db4c469e8a78c5a9a3c5915c.doc

6. Revenue Budget Summary

As at the end of June 2016, the overall financial position is currently projected to be a £144k underspend, as shown in the table below:

Latest Forecast Variance Paragraph Revised Outturn Budget £’000’s £’000’s £’000’s

Pay 9,202 9,202 0 Other revenue budgets 7,853 7,709 (144) Reserves (1.832) (1,832) 0 12 15,223 15,079 (144)

Financed by:

Collection Fund surplus (81) (81) Business Rates (4,356) (4,356) Revenue Support Grant (3,660) (3,660) Council Tax (6,130) (6,130) New Homes Bonus (996) (996) Forecast underspend at end June 2016 0 (144) (144)

Reported position previously (0)

Movement this period (144)

Due to:

Recurring variations Additional income from Disabled Facilities Renovations (50) 7

Energy cost savings (50) 8

Pensions added years savings (28) 9

Reduced Markets income 70 10

Other net savings (4)

One-off variations:

Water cost savings (38) 11

Other net savings (44)

(144)

In setting the budget for 2016/17, it was assumed that £250k would be saved through not filling posts immediately. The latest position is that £127k of salary savings have been secured to date. In forecasting the outturn position above to the 31st March 2017, it is assumed that the target will be achieved.

C:\Users\spfarm\AppData\Local\Temp\c0903ed6db4c469e8a78c5a9a3c5915c.doc

7. Disabled Facilities Renovations income (£50k) The Council received a substantial increase in allocation for these in 2016/17. As a result, the employee numbers and the estimated number of renovations have been increased which will increase income from fees and charges.

8. Energy cost savings (£50k) Based on current trends and consumption it is estimated that a £50k saving on gas and electricity costs can be achieved in 2016/17.

9. Pension Added Years savings (£28k) Officers have estimated a saving in these costs following a review of the budget.

10. Markets income £70k The Markets manager has reviewed the income and this report has reduced projected income. There is a £28k income reduction due to the planned closure of the open market and a £42k reduction in the covered market based on current trends. There has however been an increase in footfall and the underlying financial position is being kept under review and is being assessed.

11. Water cost savings (£38k) Based on current trends it is estimated there will be a saving of £38k in 2016/17.

12. Earmarked Reserves The table in Appendix 4 summarises the latest position. The forecast revenue budget underspending of £144k will, if achieved, be transferred to the transformation reserve.

13. Revenue Implications of the Changes to the Capital Budget The 2016/17 capital monitoring report is elsewhere on your agenda. The report states that the full year revenue impact from prudential borrowing of £1.963m are the net costs of the Minimum Revenue Provision [MRP] of £80k and the net interest costs on the borrowing of £78k. The MRP costs are not incurred until 2017/18. The interest costs are dependent on the timing of the borrowing but is anticipated to be at year end and therefore also not likely to be incurred until 2017/18. These will be included within the revenue budget for 2017/18.

FINANCIAL IMPLICATIONS AND BUDGET PROVISION

14. As shown in the body of the report.

POLICY IMPLICATIONS

15. The revenue budget determines the extent to which the Council’s strategic objectives

can be pursued and achieved.

DETAILS OF CONSULTATION

16. None.

C:\Users\spfarm\AppData\Local\Temp\c0903ed6db4c469e8a78c5a9a3c5915c.doc

BACKGROUND PAPERS

17. None

FURTHER INFORMATION David Donlan - Accountancy Division PLEASE CONTACT: Manager Phil Moore – Head of Finance & Property ALSO: Management

C:\Users\spfarm\AppData\Local\Temp\c0903ed6db4c469e8a78c5a9a3c5915c.doc Appendix 1 Movements in Revenue Budget 2016/17 - to 30th June 2016

Grants Transfers to Unapplied Directorate Service Unit Latest Changes this /(from) carried Original Revised Cycle Earmarked forward from TOTAL OVERALL Budget Budget (Cycle 1) Reserves 2015/16 MOVEMENT Revised Budget £'000's £'000's £'000's £'000's £'000's £'000's £'000's Chief Executives Office Management 447 447 - - - - 447 Comms Servcs Performance & Policy 471 496 2 - 23 25 496 Resources Governance, Law and Regulation 846 848 (2) - 4 2 848 People & Development 296 296 - - - - 296 Finance and Property Management 444 483 (1) 40 - 39 483 Strategic Partnership 3,566 3,566 - - - - 3,566 Revenues and Benefits (1,373) (1,373) - - - - (1,373) Treasury Management 931 931 - - - - 931 Community Service Leisure Trust Management Fee 711 711 - - - - 711 Leisure Trust Client 197 197 - - - - 197 Green Spaces and Amenities 1,094 1,144 (2) - 52 50 1,144 Streetscene 3,148 3,153 (12) - 17 5 3,153 Economic Regeneration Housing and Development Control 566 617 40 - 11 51 617 Regeneration and Planning Policy 1,420 1,526 10 92 4 106 1,526 Corporate Corporate Budgets 5,272 4,013 (34) (1,114) (111) (1,259) 4,013 Use of Earmarked Reserves (2,813) (1,832) (1) 982 - 981 (1,832) 15,223 15,223 - - - - 15,223 Revenue Budget Update by Service Area Appendix 2

Revised budget for year Forecast outturn for year Forecast Variance Directorate Service Unit Pay Non Pay Income Pay Non Pay Income Pay Non Pay Income £000s £000s £000s £000s £000s £000s £000s £000s £000s Chief Executives Office Management 432 15 - 425 15 - (7) - - Comms Servcs Performance & Policy 356 218 (78) 360 218 (78) 4 - - Resources Governance, Law & Regulation 821 1,000 (973) 808 980 (973) (13) (20) - People & Development 237 59 - 234 59 - (3) - - Finance and Property Management 916 982 (1,415) 866 972 (1,376) (50) (10) 39 Strategic Partnership - 3,566 - - 3,566 - - - - Revenues and Benefits - 35,808 (37,181) - 35,808 (37,181) - - - Treasury Management - 973 (42) - 973 (55) - - (13) Community Service Leisure Trust Management Fee - 711 - - 711 - - - - Leisure Trust Client - 435 (238) - 435 (238) - - - Green Spaces and Amenities 1,809 1,298 (1,963) 1,809 1,298 (1,955) - - 8 Streetscene 1,144 4,063 (2,054) 1,088 4,056 (2,054) (56) (7) - Economic Regeneration Housing and Development Control 1,091 395 (869) 1,091 365 (911) - (30) (42) Regeneration and Planning Policy 1,147 998 (619) 1,145 998 (534) (2) - 85 Corporate Corporate Budgets 1,249 2,847 (83) 1,376 2,702 (92) 127 (145) (9) Use of Earmarked Reserves (1,832) (1,832) - - - Total 9,202 53,368 (47,347) 9,202 53,156 (47,279) - (212) 68 15,223 15,079 (144) Revenue Budget Variance Analysis 2016/17 (as at 30th June 2016) Appendix 3

Last Report Current Report Forecast Variance Forecast Variance Movement Explanation (Non pay/income £20k and over) Service Unit Pay Non Pay Income Pay Non Pay Income Pay Non Pay Income £000s £000s £000s £000s £000s £000s £000s £000s £000s Management (7) - - (7) - - Communications, Performance & 4 - - 4 - - Policy Governance, Law & Regulation (13) (20) - (13) (20) - Non Pay (£20k) Borough Elections and Members Expenses savings People & Development (3) - - (3) - - Finance & Prop Mgt (50) (10) 39 (50) (10) 39 Income - £39k reduced income at Padiham Town Hall of £13k, bus station departures £11k and recharges of staff time to capital schemes £15k.

Strategic Partnership ------Revenues & Benefits ------Treasury - - (13) - - (13) Leisure Trust Management Fee ------Leisure Trust Client ------Green Spaces - - 8 - - 8 Streetscene (56) (7) - (56) (7) - Housing & Devt Ctrl - (30) (42) - (30) (42) Non Pay (£30k) - (£20k) saving from Housing Advice due to reduced activity based on previous years, (£10k) savings from Management Orders and Private Sector Housing Renewal due to reduced activity based on previous years. Income (£42k) - (£50k) income increase for DFGs to achieve break even, £8k reduction in income based on previous years activity Regen & Planning Policy (2) - 85 (2) - 85 Income - (£85k) Reduction in estimated Markets income of £70k and town centre rental income of £15k. Corporate Budgets 127 (145) (9) 127 (145) (9) Non Pay (£145) - estimated savings on both energy (£50k) and water charges (£38k), (£28k) pension refund, (£29k) savings from both NNDR & MRP Transfers to / (from) Reserves ------Total - - - - (212) 68 - (212) 68 Net Est. Revenue Budget (Underspend)/Overspend - (144) (144) Position on Earmarked Reserves as at 30th June 2016 Appendix 4

Town Centre Position on Earmarked Reserves Transformation Growth Management Primary Engineer Other Specific Total £'000 £'000 £'000 £'000 £'000 £'000 Opening Balance 1/4/16 (2,714) (2,181) (600) (165) (1,202) (6,862) Original Budget 2016/17 - Use of Reserves 2016/17 250 710 - - 1,853 2,813 Adjustment for the Business Rates Volatitlity Reserve as part of the final accounts closure - - - - (1,756) (1,756) (2,464) (1,471) (600) (165) (1,105) (5,805)

Total changes in this report (12) - 600 55 92 735

Anticipated Balance at 31st March 2017 (2,476) (1,471) - (110) (1,013) (5,070) Approved Use of Reserves in future years - 1,290 - 110 135 1,535

Balance after approvals (2,476) (181) - - (878) (3,535) ITEM NO 10

REPORT TO THE EXECUTIVE

DATE 16th August 2016 PORTFOLIO Resources & Performance Management REPORT AUTHOR David Donlan TEL NO (01282) 477172 EMAIL [email protected]

Capital Budget Monitoring Report 2016/17 Cycle 1 (to 30th June 2016)

PURPOSE

1 To provide Members with an update on capital expenditure and resources position along with highlighting any variances.

RECOMMENDATION

2 The Executive is asked to:

. Recommend to Full Council, approval of an increased capital budget of £148,000 for the Burnley Town Centre Pedestrian Upgrade scheme (50% of the overall increased cost) to be financed by additional borrowing.

. Recommend to Full Council, approval of the revised capital budget for 2016/17 totalling £9,332,789, as outlined in Appendix 1.

. Recommend to Full Council, approval of the proposed financing of the revised capital budget totalling £9,332,789 as shown in Appendix 2.

. Note the latest estimated year end position on capital receipts and contributions showing an assumed balance of £2,319,494 at 31st March 2017, in Appendix 3.

REASONS FOR RECOMMENDATION

3 To effectively manage the 2016/17 capital programme.

SUMMARY OF KEY POINTS

2016/17 CAPITAL PROGRAMME:

4 MONITORING INFORMATION:

On the 24th February 2016 Full Council approved the 2016/17 original capital budget, totalling £6,931,488. Since February, a number of individual reports have been approved by the Executive, along with approvals under delegated powers, resulting in revising the 2016/17 capital budget to £10,259,304 [as at the 5th July 2016 Executive Meeting].

This is the first round of in-year cyclical monitoring, and as such the appendices

C:\Users\spfarm\AppData\Local\Temp\5e64105c2e214fb8ae92535d5f0c6546.docx

accompanying this report provide Members with the position as at 30th June 2016 on expenditure, along with providing Members with an update on the progress of the individual schemes delivery.

5 EXECUTIVE SUMMARY:

a) Burnley Town Centre Pedestrianisation Upgrade Additional funding is being sought for a potential overspend of £296k on the Burnley Town Centre Improvements, shared 50:50 between the County Council and Burnley Borough Council (£148k each).

In 2015/16 approval was given to carry out major improvements to the public realm in the main Burnley Town Centre pedestrian shopping area. This project of £3.0million is funded 50:50 by Lancashire County Council and Burnley Borough Council, and a formal funding agreement between the two parties is in place.

Since budget approval, public consultation, site investigation and the majority of the design has been completed, and the main paving materials have been procured. Furniture selection is also now significantly complete. Agreement has also been reached with Burnley Borough Council for Lancashire Highways to undertake the works.

In light of the detailed design and concluding agreement with Burnley Borough Council on the key materials, Lancashire Highways have re-estimated the project cost at £3.296m which is an increase of £296k.

b) Expenditure Monitoring - Appendix 1 provides a detailed breakdown of the revised capital budget, scheme by scheme, presented under each of the relevant service unit areas responsible for delivering the capital projects. It shows the recommended revised budget position and expenditure as at the end of June 2016. The expenditure to date is £705,102 which is 8% of the proposed revised budget.

c) Revised Budget and Financing Elements - Appendix 2 shows the revised budget of £9,332,789 along with identifying the approved financing elements on a scheme by scheme basis.

d) Council Resources Position - Appendix 3 shows the latest position on capital receipts, section 106 monies and 3rd party contributions. As at the end of this round of budget monitoring the assumed level of “surplus available” local resources after taking into account the 2016/17 capital commitments, totals £2,319,494.

C:\Users\spfarm\AppData\Local\Temp\5e64105c2e214fb8ae92535d5f0c6546.docx

6 REVENUE IMPLICATIONS

Revenue Contributions 2016/17

The Capital Programme includes Revenue Contributions totalling £1,281,363, being:

Scheme Name £ Vehicle and Machinery Replacement 233,169 Vision Park 307,000 Padiham Townscape Heritage Initiative 20,000 Energy Efficiency of Council Buildings 6,320 Padiham Town Hall Flood Works 114,874 Town Centre & Shopping Centre Works 600,000

Total Revenue Contributions 1,281,363

Prudential Borrowing 2016/17

The Capital Programme includes a use of Prudential Borrowing totalling £1,963,141.

The revenue implications through expenditure funded from Prudential Borrowing of

£1,963,141, are a net increase in the Minimum Revenue Provision [MRP] of £80k.

The net notional interest charge on the borrowing is £78k.

The MRP costs are not incurred until 2017/18, and the notional interest cost will be

dependent on the timing of the borrowing but is anticipated to be at year end and

therefore also not likely to be incurred until 2017/18. This will be included within the revenue budget for 2017/18.

FINANCIAL IMPLICATIONS AND BUDGET PROVISION

7 As set out in the body of the report.

POLICY IMPLICATIONS

8 None arise directly from this report.

DETAILS OF CONSULTATION

9 None.

BACKGROUND PAPERS

10 None.

FURTHER INFORMATION David Donlan, PLEASE CONTACT: Accountancy Division Manager Ext 7172

Phil Moore – Head of Finance & Property ALSO: Management Ext 7173

C:\Users\spfarm\AppData\Local\Temp\5e64105c2e214fb8ae92535d5f0c6546.docx 2016/17 CAPITAL BUDGET CYCLE 1 MONITORING - UPDATE APPENDIX 1

Adjustments Per This Report Total Spend Revised Budget Budget Reprofiled into Revised Budget as at % Schemes Scheme Name Exec 05/07/16 Adjustments Future Years to be Approved 30/06/16 Spend Narrative provided by Project Officers/Heads of Service £ £ £ £ £ £

GREEN SPACES & AMENITIES

Thompson Park Restoration Project 36,061 36,061 15,247 42% In progress, this budget for consultancy work will be spent by end of August 2016.

£9,800 will be spent this year and balance of £8,799 to transfer to 2017/18 to be used as match funding for the improvements to Play Area Improvement Programme 18,599 (8,799) 9,800 4,800 49% Thompson Park Play Area as part of the Thompson Park Restoration Project

Prairie Sports Complex 16,630 16,630 - 0% Retention payment for the contract to be paid in November 2016.

Towneley Hall Works 1,468 1,468 - 0% In progress

Request that £12,607 of existing 3rd Party Contributions awarded to the Forest Park and currently held by the Council, are brought into Brun Valley Forest Park 1,942 12,607 14,549 - 0% the 2016/17 Brun Valley Forest Park budget. This will be used for installation of signage and interpretive material to promote the Forest Park.

Vehicle & Machinery Replacement 233,169 233,169 78,645 34% In progress

Extension of Burnley Cemetery 21,087 21,087 - 0% In progress

The Friends of Towneley Society are keen to develop over-spill car parking at Towneley Park, near the Hall. £20k funded from Friends' Towneley Park - Car Parking - 40,000 40,000 - 0% Society.

328,956 43,808 - 372,764 98,692 26%

STREETSCENE The footbridge over the River Brun at Bank Hall will be completed on-site by mid September 2016 (estimated cost £60,000). Phase 2 River Brun Training Wall Work completed (cost £7,000). River Brun de-silting works completed (£6,000). River Calder Training Wall works due Towneley River Training Walls 170,672 170,672 1,776 1% out to tender at the end of Autumn (estimated cost £45,000). Bank Hall Training Wall works to be tendered early in 2017 (estimated cost £60,000).

Car Park Improvements 10,000 10,000 - 0% Infrastructure Improvements (lighting, drainage, surfacing, lining, machines etc.) have been identified and a priority list is being drawn up.

Works have been completed at the bottom of Manchester Road and are nearly complete on the Mall. Preliminary works on Curzon Street Burnley Town Centre Pedestrianisation Upgrade 784,104 148,000 932,104 127,772 14% and St James Street are underway (see separate paragraph in the body of the report).

74 applications received. Funding to provide approximately 10-12 new schemes depending on number of gates required. Analyst doing Alleygate Programme 58,900 58,900 - 0% investigatory work, selection to be made July. Work complete Quarter 3.

CCTV Infrastructure 69,000 69,000 608 0% The procurement of the new monitoring centre has been completed. The works will be completed by the end of this financial year.

Bus Shelter Replacement 8,000 700 8,700 3,145 36% Increase due to additional contributions.

1,100,676 148,700 - 1,249,376 133,301 11%

1 2016/17 CAPITAL BUDGET CYCLE 1 MONITORING - UPDATE APPENDIX 1

University Technical College 22,500 22,500 - 0% Retention outstanding, awaiting completion of safety works to the North Light Roof over the summer

Vision Park 1,607,000 1,607,000 7,541 0% Tender process underway, with expected start on site January 2017. The current projected spend profile to end March 2017 is £1.6m.

Weavers Triangle - Starter Homes 132,844 312,992 445,836 3,758 0% Planning application is currently being considered with expected start on site in September 2016.

Infrastructure & Highways Works 50,856 (10,847) 40,009 - 0% This is a final retention. Awaiting final account from LCC.

Public Realm 21,344 10,847 32,191 - 0% Works have been completed and the retention has been approved for payment.

Tender documents are being drawn up to procure a contractor. Start on site is expected January 2017. The budget needs reprofiling into Market Safety Works 1,663,000 (1,663,000) - - 0% 2017/18.

Padiham Townscape Heritage Initiative 68,200 68,200 1,200 2% Recruitment and consultants briefs underway, with a deadline for submission in February 2017.

3,565,744 312,992 (1,663,000) 2,215,736 12,499 1%

FACILITIES MANAGEMENT

Energy Efficiency of Council Buildings 6,320 6,320 - 0% Looking into various options throughout key buildings for the best solution i.e. LED lights or boiler pipework insulation.

A contract for the reinstatement works to the Town Hall should be advertised shortly. Once the tenders have been received it will be Padiham Town Hall - Flood Works 250,000 501,219 751,219 7,080 1% possible to revise the Capital budget to reflect the prices submitted. Work is on-going with the Council's insurers to maximise the proportion of the costs recoverable as part of the insurance claim. Adjustment includes full costs and latest insurance figure.

Leisure Centre Improvements 101,301 101,301 - 0% Liaising with Leisure Trust to agree key priority works across the Leisure Trust portfolio.

A report regarding a revised and substantially increased contribution was approved at the Executive in July. The additional £600k is to be Contribution to Shopping Centre Redevelopment 750,000 750,000 - 0% financed by way of a revenue contribution to Capital (RCCO) from the Town Centre Management Reserve.

1,107,621 501,219 - 1,608,840 7,080 0%

2 2016/17 CAPITAL BUDGET CYCLE 1 MONITORING - UPDATE APPENDIX 1

Emergency Work Grant 83,751 83,751 3,919 5% 10 grants have been approved totalling £34,312.

A total of £926,591 has been committed with 44 adaptations completed and a further 46 in progress. The budget adjustment is to reflect Disabled Facilities Grant 941,444 905,791 1,847,235 282,686 15% the increased allocation to £1,847,235.

Energy Efficiency 60,669 60,669 2,900 5% 13 grants have been approved totalling £6,156.

At the beginning of the year £1.25m was forecast for spend on the Empty Homes Programme. The uncommitted budget at the end of Empty Homes Programme 2,426,539 (333,000) (843,539) 1,250,000 159,019 13% 2015/16 was identified as funding future year budgets beyond 2016/17 to continue work on Empty Homes Programme. Through Cycle 1 this has been implemented. The budget for 2016/17 is £441,086 and although there is an existing outstanding commitment from the old HMR clearance and Interventions, Acquisitions and Demolitions 441,086 441,086 374 0% demolition programme there is provision in the Capital Programme to meet any remaining commitment. As a result, the contribution of £250,000 towards the Perseverance Mill scheme can be met from this budget.

Housing Market Support 75,617 75,617 - 0% This scheme is utilised to bring forward site/opportunities for development and associated expenditure.

4,029,106 572,791 (843,539) 3,758,358 448,898 12%

CHIEF EXECUTIVE / CORPORATE INITIATIVES

Ward Opportunities Fund 127,201 514 127,715 4,632 4% Members have been able to make proposals for Ward Opportunities Funds project since the elections in May 2016.

127,201 514 - 127,715 4,632 4%

10,259,304 1,580,024 (2,506,539) 9,332,789 705,102 8%

2015/16 Cycle 1 10,141,509 942,796 9%

3 2016/17 CAPITAL BUDGET AND FINANCING ELEMENTS APPENDIX 2

FINANCING ELEMENTS

Vacant Property 3rd Party Prudential Revenue Cont'n Initiative Contribution / Total Revised Revised Budget Borrowing / Reserves Capital Grants Capital Receipts Receipts Section 106 Budget Scheme Name £ £ £ £ £ £ £ £ Green Spaces & Amenities

Thompson Park Restoration Project 36,061 32,600 3,461 36,061

Play Area Improvement Programme 9,800 8,536 1,264 9,800

Prairie Sports Complex 16,630 16,630 16,630

Towneley Hall Works 1,468 1,468 1,468

Brun Valley Forest Park 14,549 1,942 12,607 14,549

Vehicle & Machinery Replacement 233,169 233,169 233,169

Extension of Burnley Cemetery 21,087 21,087 21,087

Towneley Park - Car Parking 40,000 40,000 40,000

372,764 21,087 233,169 32,600 28,576 - 57,332 372,764 Streetscene

Towneley River Training Walls 170,672 170,672 170,672

Car Park Improvements 10,000 10,000 10,000

Burnley Town Centre Pedestrianisation Upgrade 932,104 821,753 110,351 932,104

Alleygate Programme 58,900 58,900 58,900

CCTV Infrastructure 69,000 69,000 69,000

Bus Shelter Replacement 8,700 8,000 700 8,700

1,249,376 890,753 - - 357,923 - 700 1,249,376 Regeneration & Planning Policy

University Technical College 22,500 7,275 15,225 22,500

Vision Park 1,607,000 800,000 307,000 500,000 1,607,000

Weavers Triangle - Starter Homes 445,836 445,836 445,836

Infrastructure & Highways Works 40,009 40,009 40,009

Public Realm 32,191 21,344 10,847 32,191

Padiham Townscape Heritage Initiative 68,200 20,000 48,200 68,200

2,215,736 800,000 327,000 1,022,655 15,225 - 50,856 2,215,736 Facilities Management

Energy Efficiency of Council Buildings 6,320 6,320 6,320

Padiham Town Hall - Flood Works 751,219 114,874 636,345 751,219

Leisure Centre Improvements 101,301 101,301 101,301

Contribution to Shopping Centre Redevelopment 750,000 150,000 600,000 750,000

1,608,840 251,301 721,194 - - - 636,345 1,608,840 Housing & Development

Emergency Work Grant 83,751 83,751 83,751

Disabled Facilities Grant 1,847,235 1,847,235 1,847,235

Energy Efficiency 60,669 60,669 60,669

Empty Homes Programme 1,250,000 - 1,250,000 1,250,000

Interventions, Acquisitions and Demolitions 441,086 441,086 441,086

Housing Market Support 75,617 75,617 75,617

3,758,358 - - 2,363,938 - 1,394,420 - 3,758,358 Chief Executive

Ward Opportunities Fund 127,715 127,715 127,715

127,715 - - - 127,715 - - 127,715

TOTAL OF ALL SCHEMES 9,332,789 1,963,141 1,281,363 3,419,193 529,439 1,394,420 745,233 9,332,789 CAPITAL RECEIPTS AND CONTRIBUTIONS ANALYSIS FOR 2016/17 AND CIP 2016-19 APPENDIX 3

Vacant General Property Section 3rd Capital Initiatives 106 Party Receipts Receipts Money Cont'ns Total £ £ £ £ £

Capital Resources Brought Forward on 1st April 2016 894,254 2,851,124 182,583 119,816 4,047,777 Add Resources Received As At 30th June 2016: 14,900 92,500 - 11,186 118,586 Further Resources Estimated to be Received during 2016/17: 350,000 - - 571,345 921,345

Potential Resources Available during 2016/17 1,259,154 2,943,624 182,583 702,347 5,087,708 Less Required to finance Capital Programme (529,439) (1,394,420) (3,461) (661,772) (2,589,092) Repayment Liabilities - - - - - Earmarked for Revenue Expenditure - - (53,350) - (53,350) Earmarked for Delivery By Outside Bodies - - (125,772) - (125,772)

Potential Capital Resources Carried Forward on 31st March 2017 729,715 1,549,204 - 40,575 2,319,494

Add Resources Estimated to be Received during 2017-19 600,000 2,000,000 - - 2,600,000 Less 2017/18 Capital Budget (203,000) (1,478,539) - - (1,681,539) 2018/19 Capital Budget (193,000) (1,495,000) - - (1,688,000) Total Surplus / (Shortfall) of Resources available for Further Capital Investment Programme needs 933,715 575,665 - 40,575 1,549,955

ITEM NO 11

REPORT TO EXECUTIVE

DATE 20th September 2016 Resources and Performance PORTFOLIO Management REPORT AUTHOR Phil Moore TEL NO (01282) 477173 EMAIL [email protected]

Revenue Budgets 2017/2020 – Latest Position and Savings Proposals

PURPOSE

1. To update the Executive on the latest position regarding balancing the Council’s 2017/20 revenue budgets.

2. To outline proposed savings for recommendation to Full Council.

RECOMMENDATION

3. Executive are asked to recommend to Full Council approval to

a) proposed savings totalling £2.166 million to assist in balancing the 2017/18, 2018/19 and 2019/20 revenue budgets - see Appendix 1

b) proposed invest to save of £30k – see Appendix 2

REASONS FOR RECOMMENDATION

4. To progress the preparation of the Council’s 2017/20 revenue budgets.

SUMMARY OF KEY POINTS

5. Background The Council’s Medium-Term Financial Strategy (MTFS) is regularly assessed and updated to provide an indication of budget pressures over the next three financial years. The 2017/20 strategy was approved at the meeting of Full Council on 25th February 2016 and indicated that the cumulative budget gap for 2017/18, 2018/19 and 2019/20 was estimated to be £4 million, equivalent to 26% of the 2016/17 net revenue budget.

C:\Users\spfarm\AppData\Local\Temp\412868c5ffb140c8bada8a675b5e2952.doc

6. Members will recall that a report on the MTFS was considered and approved by the Executive in July 2016. This report was approved as the Council’s financial plan – “Creating a Sustainable Future” - and is intended to develop a long term financially balanced framework for the Council. It is also the Council’s four-year efficiency plan which fulfils the Government’s requirements for securing a four-year Revenue Support Grant settlement.

th 7. A process of public consultation on the Council’s financial plan began on 11 July 2016 and concluded at the end of August 2016. The financial journey of the Council since 2010 was outlined, together with the continuing financial challenges being faced. Comments and ideas were sought on the Council’s strategic intent in identifying priorities and further opportunities for cost reduction, saving and efficiency. Two thirds of the responses have been broadly positive and supportive of the Council’s approach in developing a long term financially balanced framework and solution. A further 16 per cent of the responses are ambivalent, but recognise the challenging position which the Council is in.

8. Creating a Sustainable Future for the period 2017/20 The Council’s financial plan considers the national and regional context and the need to re- balance the economy. However, at the heart of the Council’s financial planning is a savings plan aligned to strategic intent. In considering opportunities for future savings, four strategic themes have been considered:

i) Service transformation and digitisation – continuing the transformational change programme in the delivery of services to customers through greater use of self- serve and web-enabled technology and modernising systems and processes

ii) Empowerment – the way in which people work together in managing Council services with effective risk mitigation within an empowered autonomous structure and a flexible scheme of delegation that supports a one-team approach

iii) Commercial risk appetite – developing new innovative ways of raising revenue and strengthening commercial partnerships

iv) Needs and priorities – consideration of the appropriateness of the service offer to the Borough’s residents and aligning this to the Council’s strategic vision

9. The table below summarises the latest MTFS position

MTFS 2017/18 2018/19 2019/20 Total £m £m £m £m Funding 0.8 0.8 0.5 2.1 Continuation estimate 0.5 0.3 0.3 1.1 LCC Cost Share Agreement 0.8 0.8 GAP 1.3 1.9 0.8 4.0 % Net Revenue Budget 9% 14% 6%

C:\Users\spfarm\AppData\Local\Temp\412868c5ffb140c8bada8a675b5e2952.doc

10. The assumptions underpinning the MTFS are:

i) Council tax will increase by 1.9% each year ii) No increase has been factored in for inflationary changes in Council tax base, business rates or new homes bonus from the 2016/17 baselines iii) Pay award has been assumed at 1% per annum, fees and charges at 2% per annum iv) No changes have been assumed regarding changes in Council tax support claimant numbers v) No assumptions have been built into the forecast regarding the potential impact of pension cost increases as a result of the planned triennial revaluation of the Lancashire County Council pension fund to take effect from April 2017 vi) The MTFS/Efficiency Plan has been assumed to have been approved by the Department of Communities and Local Government and Revenue Support Grant has been secured as follows:

2017/18 £2.8m 2018/19 £2.2m 2019/20 £1.6m

11. Savings Proposals Appendix 1 shows details of proposed total net savings of £2.166 million - £1.546 million for 2017/18, £0.449 million for 2018/19 and £0.171 million for 2019/20. The savings for 2017/18 include a figure of £0.349 million proposed reductions in posts, which are subject to formal consultation, although the council will seek to minimise redundancies wherever possible. A further report will be brought back to the Executive following the consultation process to obtain approval for the specific posts to be deleted.

12. Growth There is little scope for any discretionary growth in revenue budget spending given the size of the projected 2017/20 budget gap. However, as a priority action a sum of £30k to fund a community clean-up education initiative has been factored into this report – see Appendix 2. This is an invest to save initiative and the growth will only be required in 2017/18.

13. Latest 2017/20 Revenue Budgets Position It can be seen in the table at paragraph 9 above that there is an overall savings requirement of £4.0 million over the period 2017/20. The savings recommended for approval in Appendix 1 total £2.166 million which includes all savings required for 2017/18. This leaves a balance of savings required over the period 2018/20 at this stage of £1.223 million for 2018/19 and £0.609 million for 2019/20.

14. Risks

a) Funding changes – Confirmation of the Government settlement for 2017/20 are awaited. There is also currently a consultation exercise relating to proposed changes in the business rates system. We are also awaiting the results of the recent consultation exercise on the future funding arrangements for the New Homes Bonus.

C:\Users\spfarm\AppData\Local\Temp\412868c5ffb140c8bada8a675b5e2952.doc

b) Pensions – The pensions costs charged to the Council are a significant sum and are conditioned by the management and valuation of the County pension fund. There was a revaluation of the pension fund with effect from 1st April 2013 which affected the Council’s payments from 2014/15 onwards. The next revaluation of the pension fund is currently taking place and the changes resulting from this revaluation will affect the revenue budget from 2017/18 onwards.

c) Capital projects – any projects under consideration require funding. If there is a shortfall in capital finance for these projects then pursuing them and using borrowing will significantly increase the revenue budget. The revenue implications will be considered as part of the monitoring of the Capital Programme.

d) Budget preparation – The preparation of the 2017/18 continuation budgets is currently being undertaken. Issues may arise from the exercise that could have an impact on the 2017/18 budget and future years.

e) Public demand on commercial risks – A significant element of the savings proposals have arisen in response to the change in the Council’s commercial risk appetite. This will be closely monitored during the year to ensure that targets are being achieved.

FINANCIAL IMPLICATIONS AND BUDGET PROVISION

15. As shown in the body of the report and appendices

POLICY IMPLICATIONS

16. The revenue budget determines the extent to which the Council’s strategic objectivesThe rev can be pursued and achieved. Community impact assessments have been undertaken in respect of the proposed savings.

17. In line with equalities legislation, savings put forward have been assessed for impact on people with protected characteristics. Nearly all savings proposals are neutral in terms of their impact on people with protected characteristics. Where there is any negative impact, this is low and plans are in place for mitigation. Full details of the equality impact assessment are available as a background paper.

DETAILS OF CONSULTATION

18. Scrutiny Committee. The rev

19. The public consultation as outlined in the report.

BACKGROUND PAPERS

20. Equality Impact Assessment. The rev

21. Public consultation response.

C:\Users\spfarm\AppData\Local\Temp\412868c5ffb140c8bada8a675b5e2952.doc

FURTHER INFORMATION PLEASE CONTACT: Phil Moore - Head of Finance and Property Management

ALSO: Helen Seechurn – Director of Resorces

Howard Hamilton-Smith – Principal Accountant

C:\Users\spfarm\AppData\Local\Temp\412868c5ffb140c8bada8a675b5e2952.doc Savings Proposals 2017/18 to 2019/20 APPENDIX 1

2017/18 2018/19 2019/20 TOTAL £'000 £'000 £'000 £'000 Original budget gap 1,329 1,859 780 3,968 Add: Growth Community Clean Up Education Initiative 30 - - 30 Revised budget gap (a) 1,359 1,859 780 3,998

Proposed Savings Service Transformation 110 7 - 117 Empowerment 238 - - 238 Commercial Risk Appetite 847 284 164 1,295 Needs Led 351 158 7 516 Total Savings (b) 1,546 449 171 2,166

Remaining Budget Gap - Savings to be identified (a-b) (187) 1,410 609 1,832 Savings carried forward to 2018/19 187 (187) - - Remaining Budget Gap - Savings to be identified - 1,223 609 1,832

Proposed Savings (detail) Service Transformation Introduction of paperless meetings (7) 7 - Reductions in Staffing 117 - - 117 110 7 - 117 Empowerment Withdraw grants to self-maintained bowling clubs 6 - - 6 Reductions in Staffing 232 - - 232 238 - - 238 Commercial Risk Appetite THI Grant used to partially fund existing post 30 - - 30 Efficiency saving agreed with Burnley Leisure 50 50 50 150 Burnley Leisure efficiency saving on annual service charge @ 3% 14 13 13 40 Introduce a chargeable Green Waste Service (£30 pa or £25 pa with early bird discount) 200 - - 200 Increase Cemetery and Crematoria fees by 8.25% pa for 3 years 100 108 117 325 Less: inflationary increase of fees assumed @ 2% per annum (24) (26) (28) (78) Increase allotment rents (from 24p per m2 to 27p in 2017/18 & 30p in 2019/20) 2 - 2 4 Thompson Park Lodge House rental - 5 - 5 Introduce Towneley Hall charge for Burnley residents 30 - - 30 Increase parking charges at Towneley Park from £1 to £1.50 per day (excl Hall car park) 45 - - 45 Cease grant to LCC for Queen Street Mill 83 - - 83 Increase DFG fees based on £1.8m budget 37 - - 37 Increase properties in Empty Homes Leasing Scheme 8 8 - 16 Fines levied through Redress Scheme and Smoke & CM Regs 5 - - 5 Increase in Planning Fee income through increased applications 50 - - 50 Increase Graphics income target 8 5 5 18 Interest savings through non replacement of loans etc 92 - - 92 Strategic Partnership - Further savings in years 2 & 3 of contract 39 116 - 155 Reduce Parish Council Grants in line with Council funding reductions 8 5 5 18 Reduction in Energy costs - based on 2015/16 outturn 50 - - 50 Reduction in Water costs - based on 2015/16 outturn 20 - - 20 847 284 164 1,295

1 Savings Proposals 2017/18 to 2019/20 APPENDIX 1

2017/18 2018/19 2019/20 TOTAL £'000 £'000 £'000 £'000 Needs Led Making the Business Awards self-financing 20 - - 20 Weavers Triangle business rates 5 - - 5 Regen, Planning Policy & Markets - miscellaneous savings 10 - - 10 Streetscene - 20% saving on non-salary operational budgets 60 - - 60 Community Safety seconded staff - Delete vacant secondee post 28 - - 28 Cease grant to Police & Crime Commissioner for Lancashire 88 - - 88 Cease contribution to vacant external Domestic Abuse post 33 - - 33 Dirty back yards clearance not required as 400 clearances included within contract 30 - - 30 Review non statutory activity in Streetscene 4 - - 4 Implement shared service Community Safety Team 15 - - 15 Waste Contract contingency - 100 - 100 Review maintenance of highways verges within urban core - 10 - 10 Transfer Barden Athletics Track to Burnley Leisure - 17 - 17 Reducing Green Spaces & Amenities nurseries budget - 10 - 10 Scott Park electricity - energy efficient lighting 1 - - 1 Queens Park electricity - energy efficient lighting - 2 - 2 Queens Park Café- rental income 2 - - 2 Ightenhill Park electricity - energy efficient lighting - 1 - 1 Review ball court lights operation 5 - - 5 Disconnect telephone lines at Green Spaces & Amenities depots 1 - - 1 Towneley Hall - LED lighting electricity savings - 11 - 11 Move to paper based housing bonds system 10 - - 10 Reduce grant to Burnley & Pendle Citizens Advice (by 25%) 7 7 7 21 Reduce grant to BP&R Council for Voluntary Service (by 25%) 7 - - 7 No print / low cost print of Summer Fun 2 - - 2 Reduce Mayoral Allowance 3 - - 3 Reduction in one Member of Council Executive 4 - - 4 Review of residual Property Services function 16 - - 16 351 158 7 516

Total Savings Proposals 1,546 449 171 2,166

2 APPENDIX 2

Growth Proposal

2017/18 £

Community clean-up education initiative 30,000 Item 13

Scrutiny Draft Work Programme 2016/17

Notice of Key Decisions and Private Meetings 14th September Revenue Budget Monitoring Q1 Capital Budget Monitoring - Q1 Revenue Budget 2017-20 and Savings Proposals (new item) State of the Local Economy Review Groups Work Programme 5th December NKDPM Budget Scrutiny Revenue Budget Monitoring Q2 Panel Capital Budget Monitoring - Q2 Q2 performance report Treasury Management Community Safety Annual Report Review Groups Work Plan 9th February NKDPM Budget Scrutiny Revenue Budget Monitoring Q3 Panel Capital Budget Monitoring - Q3 2017/18 Budget Reports Draft Strategic Plan – Review Groups Work Plan Notice of Key Decisions and Private Meetings 22nd March State of the Local Economy Review Groups Work Plan