Public Document Pack
Cabinet
Wednesday, 17 March 2021 at 3.00 pm, Virtual Meeting MS Teams
For joining instructions and details of public access via YouTube please refer to the main agenda.
Membership
Chair: Councillor Miles Parkinson OBE (in the Chair)
Councillors Paul Cox, Loraine Cox, Munsif Dad BEM JP, Jenny Molineux and Joyce Plummer
S U P P L E M E N T A L A G E N D A
PART B: PORTFOLIO ITEMS
The following items are submitted as urgent business with the Chairs agreement in accordance with Section 100B(4) of the Local Government Act 1972. For both reports, the reason being to ensure the latest up to date information.
The following items to be taken in Part B, before Agenda Item 9.
Leader of the Council (Councillor Miles Parkinson OBE)
12. Grant of Lease of King George V Playing Fields, Car Park & Associated Changing Pavilion to Accrington Stanley FC (Pages 3 - 42)
Report Attached.
Telephone Enquiries: Democratic Services, (01254) 380116/380109/380184 Email: [email protected] Published on Tuesday, 9 March 2021 Page 1 of 2
Portfolio Holder for Resources (Councillor Joyce Plummer)
13. Financial Position January 2021 - Report for the Year Ending 31st March 2021 (Pages 43 - 48)
Report Attached.
Page 2 of 2
Agenda Item 12.
AGENDA ITEM X
REPORT TO: Cabinet
DATE: 17th March 2021
PORTFOLIO: Miles Parkinson Leader of the Council
REPORT AUTHOR: Mandy Catterall Estates Manager
TITLE OF REPORT: Grant of Lease of King George V Playing Fields, car park and associated changing pavilion to Accrington Stanley FC
EXEMPT REPORT No Not applicable (Local Government Act 1972, Schedule 12A)
KEY DECISION: No If yes, date of publication:
1. Purpose of Report
1.1 To seek approval from Cabinet to grant a lease of the land edged red at Appendix 1 and being part of King George V Playing Fields in Accrington including associated car park and changing pavilion to Accrington Stanley FC Limited and to agree arrangements for the grant of the proposed lease. 1.2 To seek approval for the dedication of Oak Hill Park, Accrington to Fields in Trust, to facilitate the grant of the lease referred to at 1.1 1.3 To seek approval for the dedication of King George V Playing Fields to Fields in Trust, if required, in order to facilitate the grant of the lease at 1.1 1.4 To seek approval to the entry into all other ancillary agreements with third party interests as may be required in order to facilitate the grant of the lease referred to at 1.1.
2. Recommendations
That Cabinet:
2.1 approves the advertisement of the Council’s intention to dispose of public open space in accordance with Section 123(2A) of the Local Government Act 1972 and delegates authority to the Head of Regeneration and Housing to consider any responses received and, following consultation with the Portfolio Holder for Housing and Regeneration, to decide whether to proceed with the disposal; and
Page 1 of 9 Page 3 2.2 subject to the outcome of the decision at 2.1 and, if required, to the consent of the Secretary of State for Housing Communities and Local Government, agrees to lease King George V Playing Fields in Accrington including associated car park and changing pavilion (as shown edged red on the attached plan) to Accrington Stanley Football Club Limited on the terms set out in paragraph 3.8 of this report being in any event satisfied that the disposal is likely to contribute towards the achievement of any one or more of the following to the Borough or any persons within it: i) the promotion or improvement of economic well-being; ii) the promotion or improvement of social well-being; iii) the promotion or improvement of environmental well-being; and
2.3 delegates authority to the Head of Housing & Regeneration, in consultation with the Executive Director of Legal and Democratic Services and portfolio holder, to agree the detailed terms of the lease with Accrington Stanley Football Club Limited; and
2.4 delegates authority to the Head of Housing and Regeneration, in consultation with the portfolio holder to agree the detailed terms of any documents or other agreements required by Fields in Trust, Sport England and the Football Foundation in connection with the proposed lease and thereafter to instruct Legal Services to complete the lease to Accrington Stanley Football Club Limited and any documents or other agreements with Sport England, Fields in Trust and the Football Foundation that may be required to facilitate the grant of the lease and;
2.5 if required to facilitate the grant of the lease to Accrington Stanley Football Club Limited and subject to the consent of the Secretary of State for Housing Communities and Local Government, if required, agrees to the re-dedication of King George V playing fields to Fields in Trust in perpetuity being satisfied that the disposal is likely to contribute towards the achievement of any one or more of the following to the Borough or any persons within it: i) the promotion or improvement of economic well-being; ii) the promotion or improvement of social well-being; iii) the promotion or improvement of environmental well-being; and]
2.6 if required to facilitate the grant of the lease to Accrington Stanley Football Club Limited and subject to the consent of the Secretary of State for Housing Communities and Local Government if found necessary, agrees to the dedication of Oak Hill Park Accrington (shown edged blue at Appendix 2) or part thereof to Fields in Trust in perpetuity being satisfied that the disposal is likely to contribute towards the achievement of any one or more of the following to the Borough or any persons within it: i) the promotion or improvement of economic well-being; ii) the promotion or improvement of social well-being; iii) the promotion or improvement of environmental well-being
3. Reasons for Recommendations and Background
Page 2 of 9 Page 4 3.1 The Council obtained grants from Sports England and the Football Foundation in 2001 and 2003 respectively to carry out drainage improvements works to the playing fields and in connection with the construction of a pavilion which is now located on the land. The grants are subject to clawback conditions in the event that the Council disposes of the land within a 21 year clawback period.
3.2 Sports England and the Football Foundation have been approached by the Council and ASFC to ascertain their requirements for their granting of consent to the proposed disposition and in principle consent to the disposition has been forthcoming subject to ASFC and the Council entering into a “Community Use Agreement” in respect of [part] of the site, their approval to the form of lease, the parties entering into a deed of novation is respect of the grant agreements, a restriction being entered against the leasehold title and the funding bodies costs being met.
3.3 Accrington Stanley Football Club have for some years been looking to have a training ground within the Borough. In September 2018 Accrington Stanley Football Club Limited (“ASFC”) approached the Council to find out whether it would be possible to lease King George V Playing Fields in Accrington including associated car park and changing pavilion to act as training facility for the football club. In March 2021 ASFC indicated they are now ready to take a lease to further the plans of the Club and their training facilities
3.4 Accrington Stanley FC would utilise King George V Playing Fields for day to day football activities for its first team, reserve teams and Accrington Stanley FC academy which looks to develop young people into future football players.
3.5 Over the years Accrington Stanley FC have trained at a number of different venues which has not been ideal for match preparation and developing new players. Should Cabinet grant a lease to Accrington Stanley FC, the club has agreed to invest significant funds into the site to improve the drainage and playing surfaces of the existing pitches, fencing, and improvement and on-going repair and maintenance of the pavilion.
3.6 Community Football is changing in the way it operates. Fifteen to twenty years ago there were many small teams playing within a league structure which routinely booked Council pitches. Due to the Football Association requiring club structures (in particular) to change and become accredited, there are fewer clubs playing football but with more teams per club.
3.7 Many of these teams have secured their own grounds and no longer book pitches through the Council. In addition to this the Accrington Combination folded a few years ago and as such very little senior football is booked on Council pitches.
3.8 On examination of pitch booking data (prior to Covid) King George V playing fields is only booked on average 2 hours per week, which is very low use for a facility of this quality. Accrington Stanley FC has indicated that they will use the facility on average 31 hours per week primarily during the day. Some of the use will be community use and this will be agreed via the production of a Community Use Agreement which will need to be signed off by Sport England and Football Foundation. Page 3 of 9 Page 5
3.9 The land now known as King George V Playing Fields, Accrington was acquired by the Council on the 28th August 1928 and the area of land which is now proposed to be leased to Accrington Stanley Football Club was subsequently dedicated as a King Georges V Field by the Council on the 4th July 1938.
3.10 In 2007 the Council was notified by the Charity Commission that the field was to be removed from the Register of Charities following its view of the effect of dedications of land by local authorities as King Georges Fields following its consultation with Fields in Trust and local authorities. In summary this was because the Council could not lawfully give away its land in this way without consent of the Secretary of State. A ministerial consent for the 1938 dedication as a King George V playing field cannot be located amongst the Council’s deeds.
3.11 On the assumption that the land may be dedicated as a “Field in Trust” Fields in Trust have also been approached to ascertain their requirements with a view to consenting to the proposed lease. Informally Fields in Trust has indicated that they would be prepared to recommend consent to the disposition if the Council dedicates another local park in the vicinity (Oak Hill Park) and enters into the standard Deed of dedication and associated restriction on title that Fields in Trust require. When the status of any trust at King George V playing field has been queried with Fields in Trust they appear to accept that although the land no longer holds charitable status “it remains protected via a signed contract between the landowner and Fields in Trust”. However no such contract can be located amongst the Council’s deeds (only the Declaration made on the 4th July 1938) and no contract has been produced by the Fields in Trust. It is also not yet known with any certainty what Fields in Trust expectations or requirements would be in respect of the King George V Playing Field site.
3.12 Even though the Council may wish to accept approval the dedication the current legal status is important as it have implications for the proper valuation of the land and the approvals that may need to be sort for the grant of the proposed lease. At the time of writing further legal advice is being sought on this issue.
3.13 Section 123 of the Local Government Act 1972 gives the Council power to dispose of its land but can only do so if it obtains the best consideration reasonably obtainable for its land unless the Secretary of State consents. The opinion from the Council’s in house valuation team is that the offer by ASFC of £550,000 for the grant of a 100 year lease represents market value if the use is restricted use as a training ground for their business. However to ascertain whether a disposal of land represents best consideration or would be an undervalue the Council must also consider what its value is if the use were unrestricted. If the difference between the unrestricted value and the value it would receive for the proposed transaction (in this case a 100 year lease) is more than £2 million pounds specific consent of the Secretary of State is required. If the position is that the land is not subject to a trust the in house valuation of the unrestricted use of land is £3,538,500 as the valuer must assume the principle aim is to maximise value and disregard the intended use. The respective valuations are set out at Appendix 3 of this report. Further legal advice is being obtained on this point to ensure that the Council’s approach is the correct one and that all necessary consents are obtained. Page 4 of 9 Page 6
3.14 If it can be established that any undervalue is less than £2 million the Council can rely on the General Disposal Consent granted by the Secretary of State without the need for specific application if the Council considers that the disposal (lease) is likely to contribute towards the achievement of any one or more of the following to the Borough or any persons within it: i) the promotion or improvement of economic well-being; ii) the promotion or improvement of social well-being; iii) the promotion or improvement of environmental well-being
3.15 The same considerations as to value and Secretary of State consent should also be applied to any dedication of the land at King Georges V playing field and Oak Hill Park as although the Council will retain an interest in the land it will be subject to the charitable objects of Fields in Trust and the Council will not be free to dispose of the land in future without their consent. Such consents may only forthcoming if an alternative site is provided or the use of the land is consistent with the charitable objects of Fields in Trust. As at the date of this report no valuation has been undertaken for Oak Hill Park but this will need to be undertaken. Again, further legal advice is being sought to clarify the position in this regard and to ensure that the Council’s approach is the correct one
3. 16 Section 123(2A) of Local Government Act 1972 requires the Council to advertise its intention to dispose of public open space in a local newspaper for two consecutive weeks and to consider any objections received before making a final decision about the disposal. The Council will advertise its intention to dispose of open space in the Accrington Observer prior to entering into any contractual commitment to grant the lease.
3.17 Sports England and the Football Foundation have also been approached by the Council and ASFC to ascertain their requirements for their granting of consent to the proposed disposition and in principle consent to the disposition has been forthcoming subject to ASFC and the Council entering into a “Community Use Agreement” in respect of [part] of the site, their approval to the form of lease, the parties entering into a deed of novation is respect of the grant agreements, a restriction being entered against the leasehold title and the funding bodies costs being met. Both these bodies need to give consent to the proposed lease as the land is subject to funding conditions imposed following the receipt by the Council of grants to construct the pavilion on the land undertake drainage works in 2001 and 2003 respectively
3.18 Detailed lease terms have yet to be agreed, but it is intended that the terms will include the following:
Tenant Accrington Stanley FC
Lease Term 100 years
User Use as football pitches and associated changing rooms
Premium £550,000
Page 5 of 9 Page 7 Rent Peppercorn only 3.1 9 Repairs & Maintenance Responsibility of Accrington Stanley FC (building & pitches) T Utility Costs & Service Responsibility of Accrington Stanley FC h Charges e Security of the pavilion Responsibility of Accrington Stanley FC
Insurance Responsibility of Accrington Stanley FC g r Alienation No assignment, sub-letting or parting with possession of the whole a or any part is to be permitted n t Other Works to Oakhill Park to be agreed and competed prior to completion of the KGV o Community Use To be included in and for the term of the lease f Agreement Costs ASFC will be required to meet the Councils costs and fees a incurred in the preparation of the lease and also any costs incurred in seeking any relevant consents and approvals 100 year lease of this site to Accrington Stanley FC also enables the Council to realise some positive outcomes, as follows:
3.19.1 Maximising the use of King George V playing fields as currently the average use is 2 hours per week, which will increase to 31 hours per week should the site be leased to Accrington Stanley FC. Some of the use will be community use and it is anticipated that this will be agreed via the production of a Community Use Agreement which it is expected Sport England and Football Foundation will require.
3.19.2 The Council will have helped Accrington Stanley FC to secure a training facility within the Borough which will assist in facilitating the future development and sustainability of the club, including the potential development of players from Hyndburn
3.19.3 Providing an immediate Capital Receipt to the Council
3.19.4 Generating an annual saving to the Council as the club would also be responsible for the maintenance of the pavilion and paying utility costs. This will generate a saving to the Council estimated to be circa £30,000 pa. In addition the football club would be responsible the maintenance of the football pitches which releases parks staff time to undertake other work on green spaces in the Borough.
3.20 It is intended that as part of the disposal of KGV and the Community Use Agreement, Oakhill Park will become a Field In Trust. To support that application, ASFC have committed to carrying out fencing improvement works to the Park as part of that designation. This work would have to be completed prior to completing of the lease.
4. Alternative Options considered and Reasons for Rejection
4.1 Do not lease the King George V Playing Fields including associated car park and changing pavilion to Accrington Stanley FC. This is not recommended because leasing Page 6 of 9 Page 8 the site to Accrington Stanley FC helps facilitate the clubs development and ensures increased use and development of this underutilised site which incurs costs of £30,000 per annum.
4.2 Marketing the site for development to ascertain if its full unrestricted value can be achieved although this has not been a consideration to date as the site is not currently allocated for development
5. Consultations
5.1 Portfolio Holder, Accrington Stanley FC, Parks & Cemetery Service, Estates, Legal Services, Football Foundation and Fields in Trust have been consulted in relation to this project. The intention to dispose of this piece of open space will be advertised and any objection invited for consideration. Subject to further legal advice it may also be necessary to seek Secretary of State Approval
6. Implications
Financial implications (including The cost of repairing, maintaining and insuring the any future financial commitments building and football pitches will be the responsibility of for the Council) Accrington Stanley FC during the period of the lease.
There are costs associated with gaining consent from Fields in Trust, if this is required to enter into a lease with a third party however these costs will be met by Accrington Stanley FC. The Football foundation and Sports England will also require their costs to be met.
If it is concluded that the disposal is at an undervalue then the level of the undervalue which the Council will potential forgo is the difference between the consideration it receives for the grant of the lease £550,000 and its unrestricted value £3,538,500.
Although an existing park, the dedication of Oak Hill Park and King George v Playing Field as a Field in Trust will impose restrictions on the lands in perpetuity and affect value. A valuation of Oak Hill Park has yet to be undertaken
Legal and human rights Please see paragraphs 3.9 to 3.17 of this report. implications The Council has the power to dispose of its land and property assets pursuant to Section 123 of Local Government Act 1972. The playing fields site constitutes a public open space but it requires the consent of the Secretary of State if the disposal is at an undervalue The Council can rely on a General
Page 7 of 9 Page 9 Disposal consent if it consider that the disposal is likely to achieve the promotion or improvement of social economic or environmental well-being provided that the undervalue is less than £2million
Section 123(2A) of Local Government Act 1972 requires the Council to advertise its intention to dispose of public open space in a local newspaper for two consecutive weeks and to consider any objections received before making a final decision about the disposal. The Council previously advertised its intention to dispose of open space on 22nd March and 29th March 2019 but will do so again, in accordance with Section 123 (2a) of the Local Government Act 1972. The Council must consider the objections received before deciding whether to proceed with the grant of the proposed lease. The dedication of Oak Hill Park as a Fields In Trust may also require the advertisement of the intention to dispose of open space under Section 123 (2A) of the Local Government Act 1972. The legal status of the dedication to the National Playing Fields Association (Fields in Trust) as a King George V Playing Field and the requirement for their consent to the lease is outlined in the report and further legal advice is being sought.
The lease will also require the prior approval of Sport England and Football Foundation as a result of previous grant funding to the playing fields and pavilion by Sport England and Football Foundation. This approval will require the parties to enter into further legal agreements and restrictions relating to the use of the land
Assessment of risk If all necessary consents are obtained no specific risks identified. Financial implications are set out above. The proposal will reduce the Council’s exposure to repair and maintenance as well as any liability during the period of the lease. The site will revert back to the Council when the lease ends.
Equality and diversity The Council is subject to the public sector equality duty implications introduced by the Equality Act 2010. When making a decision in respect of the recommendations in this report Cabinet must have regard to the need to:
Page 8 of 9 Page 10 Eliminate unlawful discrimination, harassment and victimisation; and Advance equality of opportunity between those who share a relevant protected characteristic and those who don’t; and Foster good relations between those who share a relevant protected characteristic and those who don’t
For these purposes the relevant protected characteristics are: age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex and sexual orientation. An equality impact assessment (customer first analysis) is attached.
7. Local Government (Access to Information) Act 1985: List of Background Papers
8. Freedom of Information
8.1 The report contains exempt information under the Local Government Act 1972, Schedule 12A and cannot be disclosed under the Freedom of Information Act 2000.
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Title: Land at Royds Avenue, Accrington. BB5 2JX
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1 68 R N D V I E L N L Produced using GGP. (C) Crown Copyright reserved.S E Scale:Page 1:2000 15 This page is intentionally left blank Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 This page is intentionally left blank UNCLASSIFIED
Hyndburn Borough Council
Customer First Analysis
What is it for? Proposed Lease of King George V Playing Fields, Accrington
Our corporate values include putting the customer first, providing opportunities for bright futures and narrowing inequality across the Borough.
From 1 April 2011, a new legal duty applies to all public authorities. It covers these protected characteristics:
age; disability; gender reassignment; pregnancy and maternity; race; religion or belief; gender; sexual orientation; and, for some aspects, marriage and civil partnerships.
The duty means that – as previously - we should analyse the effect of existing and new policies and practices on equality. It does not specify how we should do this. However, legal cases on the meaning of the previous general equality duties make it clear that we must carry out the analysis before making the relevant policy decision, and include consideration as to whether we can reduce any detrimental impact.
The framework overleaf – our Customer First Analysis - is suggested when making a written record of the analysis. This replaces Equality Impact Assessments.
The Analysis should be proportionate to the policy decision being taken. In some cases the written record will be a quick set of bullet points or notes under each heading, to deal with any questions which are relevant (or briefly explain why if they aren’t). Others will need to be much more detailed. A meaningful Analysis will help the Council make the best decision or formulate a policy which best meets our customers’ needs.
Please return completed Customer First Analyses to Human Resources. I can guide you through the process if this would be helpful.
If you have any suggestions for improving this process, please let me know.
Kirsten Burnett Head of HR
1 of 2 Page 41 UNCLASSIFIED
Customer First Analysis
1. Purpose
What are you trying to achieve with the policy / service / function? Improved use of recreational facilities, reduction in liabilities, income generation Who defines and manages it? Cllr Munsif Dad, Cllr Lorraine Cox, Craig Haraben, Mark Hoyle Who do you intend to benefit from it and how? Borough Residents – directly through the community access agreement, and indirectly through rental income and reduced liabilities What could prevent people from getting the most out of the policy / service / function? By not exercising the community access agreement How will you get your customers involved in the analysis and how will you tell people about it? Transparency records
2. Evidence
How will you know if the policy delivers its intended outcome / benefits? Income receipts How satisfied are your customers and how do you know? n/a What existing data do you have on the people that use the service and the wider population? Hours of use collated (2 hrs per week on average) What other information would it be useful to have? How could you get this? n/a Are you breaking down data by equality groups where relevant (such as by gender, age, disability, ethnicity, sexual orientation, marital status, religion and belief, pregnancy and maternity)? n/a Are you using partners, stakeholders, and councillors to get information and feedback? n/a
3. Impact
Are some people benefiting more – or less - than others? If so, why might this be? No
4. Actions
If the evidence suggests that the policy / service / function benefits a particular group – or disadvantages another - is there a justifiable reason for this and if so, what is it? n/a Is it discriminatory in any way? n/a Is there a possible impact in relationships or perceptions between different parts of the community? No What measures can you put in place to reduce disadvantages? n/a Do you need to consult further? no Have you identified any potential improvements to customer service? Introduction of a community use agreement Who should you tell about the outcomes of this analysis? n/a Have you built the actions into your Business Plan with a clear timescale? n/a When will this assessment need to be repeated? n/a
Name: Mandy Catterall Signed:
Service Area: Dated: 11th March 2021
2 of 2 Page 42 Agenda Item 13.
REPORT TO: Cabinet
DATE: 17 March 2021
PORTFOLIO: Cllr Joyce Plummer - Resources
REPORT AUTHOR: Joe McIntyre Deputy Chief Executive
TITLE OF REPORT: Financial Position January 2021 Report for the Year Ending 31st March 2021
EXEMPT REPORT No Not applicable (Local Government Act 1972, Schedule 12A)
KEY DECISION: No If yes, date of publication:
1. Purpose of Report
1.1. The report informs Cabinet of the financial spending of the Council up to the end of January 2021 and the financial forecast outturn position for the Accounting Year 2020/21.
2. Recommendations
2.1. Cabinet notes the report and asks CMT to continue to reduce costs and increase income over the remaining weeks of the financial year.
3. Reasons for Recommendations and Background
Summary
3.1. The financial detail of the report is shown as a table at the end of this document.
3.2. The spend for the first 10 months of the financial year to the end of January 2021 is £9,382,000 compared to a Budget of £10,919,000 giving a positive variance of £1,537,000 over the first 9 months of the year.
3.3. The current forecast spend to the end of the financial year in March 2021 is £11,452,000 compared to a Budget of £11,227,000. This forecast produces an adverse variance of £225,000 by the end of the financial year. The adverse variance across the Council is attributable to the impact of COVID 19 on the Council’s overall financial position requiring it to spend additional sums to address Page 43 the impact of the pandemic while at the same time suffering a reduction in its income, due to the downturn in economic activity stemming from the pandemic.
3.4. The predicted level of variance against the Budget can be managed within the Council’s overall reserves.
Detail
Environmental Services
3.5. Environmental Services are predicting a year-end adverse variance of £66,000. This stems from salary savings of £46,000 and miscellaneous savings of £6,000, less £31,000 reduced income and £6,000 of COVID 19 costs on Food Safety. Waste Services are predicting a loss of £53,000 of income compared to Budget, addition spend of £87,000, extra staffing costs of £22,000 and £53,000 of unbudgeted COVID 19 expenditure. The Parks & Cemetery Service is forecasting a positive variance of £137,000, due to £94,000 of staff saving, additional income of £69,000 less £26,000 of miscellaneous savings including £17,000 of additional costs due to COVID 19. The Town Centre & Market Budget is predicting an adverse variance of £3,000, with income down £64,000 compared to Budget, £15,000 of additional miscellaneous costs including £11,000 of extra spend relating to COVID 19, less £76,000 of salary savings.
Culture & Leisure Services
3.6. Culture and Leisure Services are indicating a potential adverse variance of £845,000. Service expenditure on Leisure is forecasting a positive variance of £30,000, while the Haworth Art Gallery is predicting its income will be down by £60,000 and they will save £5,000 of staff costs and save £29,000 of expenditure saved on cost budgets. The main cause of the adverse variance is the predicted additional support the Council may have to make available to Hyndburn Leisure to replace the significant income they have lost due to the closure of their leisure centres due to COVID 19. This is currently estimated at £849,000. The Council currently expects to receive £51,000 from a bid submitted to the Department of Digital, Culture, Media & Sport to assist the Hyndburn Leisure in this financial year with a potential further £119,000 to assist in 2021/22. Our original bid of £170,000 for 2020/21 has now been split over two years with only 30% allowed to be charged against the 2020/21 accounts and the remaining funds now to be used for 2021/22.
Planning & Transportation
3.7. Planning & Transportation are predicting an adverse variance for the year of £70,000. This is due to a predicted £57,000 of extra miscellaneous costs including £35,000 of emergency bridge work and £15,000 of extra salary costs less £2,000 of additional income.
Page 44 Regeneration & Property Services
3.8. Regeneration & Property Services are predicting an adverse variance of £218,000 at year-end. This is due to £228,000 of additional staff costs, £111,000 of additional miscellaneous costs including £21,000 of extra COVID 19 costs, less £121,000 of additional income.
Policy & Corporate Governance
3.9. Policy & Corporate Governance are predicting a positive variance of £643,000. This is due to £192,000 of salary savings less the Corporate Salary Savings Target of £116,000, plus £174,000 of miscellaneous cost savings, an increase of income of £179,000 and additional Government Grants of £1,737,000 to assist with costs here and elsewhere in relation to the pandemic less £1,523,000 of extra predicted costs of COVID.
Non Service Items
3.10. The current estimate for the year is a positive variance of £331,000.
Robustness Of The Forecast & Other Issues
3.11. The figures for service areas include estimated losses in income due to the pandemic less additional specific Government funding to help offset some of the losses incurred. Overall, we have estimated a loss in income across the Council of £1,043,000 and we have assumed the Government will provide a grant of £593,000 to offset these losses. The estimate is based around the Government guidance issued in this area. This process is subject to further review and a year- end reconciliation under the Government’s rules around this grant, so these figures are subject to confirmation and revision. This will only take place after the financial year-end As such they could move upwards or downwards as a consequence, potentially by significant amounts as the scheme is new and untested.
3.12. The estimates around expenditure necessary to fight COVID 19 are subject to more uncertainty than in the normal forecasting of expenditure given the unprecedented demands and changing nature in this area and therefore these forecasts are subject to larger variance than usual within a local authority Budget.
3.13. We expect a substantial increase in the non-payment of Council Tax and Business Rates, as well as a large rise in the numbers of Council Tax Support Claimants due to the pandemic. Due to the statutory requirements around accounting for these transactions the losses in these areas this year will not manifest themselves until future year budgets and will be dealt with by adjustments to our revenue levels in later years.
3.14. The Government has potentially indicated that it would ensure all Tier 3 Councils are able to balance their 2020/21 and 2021/22 Budgets and therefore funding may be available to reduce the adverse variance to zero by the end of the year. However, at this stage no details have been provided around this potential extra financial support that might be available and therefore this funding is not included within this Budget forecast. Page 45 3.15. The level of adverse variance currently predicted will need to be funded from existing reserves if this extra funding does not materialise. The existing level of Council Reserves will be able to absorb such an adverse variance without a major impact on the Council’s overall financial position.
4. Alternative Options considered and Reasons for Rejection
4.1. Not applicable. This report is for information purposes.
5. Consultations
5.1. Not applicable
6. Implications
Financial implications (including As outlined in the report. any future financial commitments for the Council)
Legal and human rights Not applicable implications
Assessment of risk Not applicable
Equality and diversity Not applicable implications A Customer First Analysis should be completed in relation to policy decisions and should be attached as an appendix to the report.
7. Local Government (Access to Information) Act 1985: List of Background Papers
Council Meeting 21st February 2019 General Revenue Budget 2019/20 The report can be found by clicking on this link Budget 2019/20 And downloading the relevant PDF from that page.
Page 46
Budget Monitoring 2020/21
Period 10 to 31 January 2021 Summary - GF Revenue
Y-T-D Period 10 Month 10 Year Description Budget Actual Variance Budget Actual Variance Budget Actual Variance £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Environmental Services 4,832 5,059 (227) 401 470 (69) 5,198 5,264 (66)
Culture & Leisure 746 748 (2) 56 50 6 895 1,740 (845)
Planning & Transportation 656 728 (72) 65 77 (12) 787 857 (70)
Regeneration & Property Services 941 1,209 (268) 94 128 (34) 1,132 1,350 (218)
Policy & Corporate Governance 2,674 899 1,775 267 241 26 3,209 2,566 643
TOTAL General Fund Services 9,849 8,643 1,206 883 966 (83) 11,221 11,777 (556)
Non Service Items 1,070 739 331 39 38 1 6 (325) 331 TOTAL Net Expenditure 10,919 9,382 1,537 923 1,004 (81) 11,227 11,452 (225)
Contribution (from) / to GF Reserves - (225) TOTAL Net Requirement 11,227 11,227 -
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