Public Document Pack Please Contact: Simon Copley

Extension: 277

E-mail: simon.copley@ryedale.gov.uk

Date of Publication: 23 August 2016

COUNCIL

Council Summons and Agenda

You are hereby summoned to attend an Ordinary Meeting of Ryedale District Council to be held in the Council Chamber, Ryedale House, Malton on Thursday, 1 September 2016 at 6.30 pm in the evening for the transaction of the following business:

Agenda

1 Emergency Evacuation Procedure The Chairman to inform Members of the Public of the emergency evacuation procedure.

2 Apologies for absence

3 Public Question Time

4 Minutes (Pages 5 - 22) To approve as a correct record the minutes of the Ordinary Meeting of Council held on 7 July 2016.

5 Urgent Business To receive notice of any urgent business which the Chairman considers should be dealt with at the meeting as a matter of urgency by virtue of Section 100B(4)(b) of the Local Government Act 1972.

6 Declarations of Interest Members to indicate whether they will be declaring any interests under the Code of Conduct.

Members making a declaration of interest at a meeting of a Committee or Council are required to disclose the existence and nature of that interest. This requirement is not discharged by merely declaring a personal interest without further explanation.

Ryedale District Council, Ryedale House, Malton, North Yorkshire, YO17 7HH Tel: 01653 600666 Fax: 01653 696801 www.ryedale.gov.uk working with you to make a difference 7 Announcements To receive any announcements from the Chairman, the Leader and/or the Head of Paid Service.

8 To Receive any Questions submitted by Members Pursuant to Council Procedure Rule 10.2 (Questions on Notice at Full Council) From Councillor Potter to the Leader of Council:

In September 2015 you and the Chief Executive signed the Annual Governance Statement. How many times in the next 9 months did you discuss this matter with the Chief Executive and what were the outcomes of your discussions?

From Councillor Potter to the Chair of Overview and Scrutiny:

Do you consider that the draft minutes of the Overview and Scrutiny meeting on the 28th July 2016 do justice to the questioning of the Audit Report or the Annual Governance Statement?

From Councillor Clark to the Leader of Council:

Do you agree with the Internal Auditors comments on Contract Management Corporate Arrangements and can you, as Leader, give an explanation as to how it has got into this 'state'?

9 Business from the Last Council Meeting on 7 July 2016 Notices on Motion Submitted Pursuant to Council Procedure Rule 11

1. Proposed by Councillor Clark and seconded by Councillor Thornton.

The proposed 2020 programme will introduce very significant changes. These changes will impact on policies and the strategy of RDC. These changes will also impact on the residents of Ryedale. The voice of these people is represented on RDC by the elected councillors. Management of the options and changes is clearly the responsibility of the management at RDC. The options and changes themselves are the responsibility of the councillors.

In order to deliver the above Full Council, this calls for a minimum of 2 special Policy and Resource meetings.

1. P and R information and "way forward" meeting, including e.g. the consultations 2. 2nd P and R meeting to recommend to Full Council before and after any consultations (including consultations with the public) 3. 3rd P and R meeting if needed

Areas to be covered by first P and R meeting:  Share with members the presentation made "to the Heads of Service and SUMs on the 06/06/16  Share with members the option appraisals  Present to members the tendering document which resulted in "iese consultants" being appointed  Share with members the reasons for appointing iese  Share with members a copy of the contract to iese  Share with members the work done so far at a cost of £50,000  Share with members the intended work for £90,000  Share with members the intended work for the £40,000 on Human Resources  Consult with members their priorities for the future of RDC  Obtain agreement from members before the consultation with employees is commenced  Explain to members what is meant by "behaviour based assessment"  get agreement from members before any consultation or implementation of "culture change"  Obtain agreement from members before "ceasing any activities"  Obtain agreement from members before making any decisions on what is the "best for customers" before any consultation etc is taken  Inform members of the design principles of T2020  Before the process starts discuss with members what "working closely with members to support customers re present demand" means in relation to members, officers and public  Explain to members what is meant by "behaviour of staff"  Explain to members what is meant by "less reliance on higher paid specialists"  Explain to members what is meant by "focus on demand prevention"  Explain to members what is meant by need to focus on "finance and performance"  Explain to members what is meant by "Town Team's"  Explain to members what is meant by "combined teams wider than Ryedale"  Explain to members what is meant by "growing the economy"  Explain to members what is meant by "appropriate range of housing"  Explain to members what is meant by "one council - members and officers - members and officers working together to concentrate on doing what matters for Ryedale"

2. Proposed by Councillor Clark and seconded by Councillor Thornton.

The issue of bullying has been raised at Full Council on at least three occasions. There has been no satisfactory response from the Leader of the Council. If there is bullying or a culture of bullying in any department(s) at Ryedale District Council it must be stopped. This motion will assist in the actions required. It will legitimise any necessary action by the Chief Executive.

So as to attempt to clarify the situation this council resolves:

"The Chief Executive is requested to:-

 Have discussions with the union representatives to ascertain if they believe there is a culture of bullying  Have discussions with managers and other employees to ascertain if they believe there is a culture of bullying  Carry out an impact assessment of the Harassment Policy - the following is required:- 1. Number of times people have been investigated under this policy 2. The outcome of each of these investigations 3. A list of measures taken  Report all of the above to the Policy and Resources committee as a part B item within one month"

10 To Receive a Statement from the Leader of the Council and to Receive Questions and Give Answers on that Statement To follow.

11 To consider for Approval the Recommendations in respect of the following Part 'B' Committee Items: (Pages 23 - 130) Planning Committee - 7 June 2016

Minute 5 - Ryedale Community Infrastructure Levy - Payment Instalment Policy (page 23)

Planning Committee - 2 August 2016

Minute 41 - Slingsby, South Holme and Fryton Design Statement (page 29)

Overview and Scrutiny Committee - 28 July 2016

Minute 22 - Counter Fraud Policy and Anti Money Laundering Policy (page 91)

12 Treasury Management Annual Report 2015-16 (Pages 131 - 142)

13 Proposed Joint Public Assets Board for York, North Yorkshire and East Riding (Pages 143 - 152)

14 Exempt Information That under Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended), the public be excluded from the meeting for the following item as there would be a likely disclosure of exempt information relating the financial or business affairs of any particular person (including the authority holding that information).

15 Request for an Indemnity for Ryedale Citizens Advice Bureau (Pages 153 - 162)

16 Any other business that the Chairman decides is urgent.

Janet Waggott Chief Executive Agenda Item 4 Council

Minutes of Proceedings

At the Ordinary Meeting of the District Council of Ryedale held in the Council Chamber, Ryedale House, Malton on Thursday 7 July 2016

Present

Councillors Joy Andrews Paul Andrews Steve Arnold Val Arnold Burr MBE Clark Cleary Cowling Cussons Duncan Farnell Frank Gardiner (Chairman) Hope Ives Jainu-Deen Keal Maud Oxley (Vice-Chairman) Potter Sanderson Thornton Wainwright Windress

In Attendance

Gary Housden Peter Johnson Nicki Lishman Phil Long Clare Slater Janet Waggott Anthony Winship

Minutes

13 Apologies for absence

Apologies for absence were received from Councillors Acomb, Bailey, Goodrick, Jowitt, Raper and Shields.

14 Public Question Time

There were no public questions.

Council 1 Thursday 7 July 2016 Page 5 15 Minutes

The minutes of the Ordinary Meeting of Full Council held on 14 April 2016 were presented.

Resolved

That the minutes of the Ordinary Meeting of Full Council held on 14 April 2016 be approved and signed by the Chairman as a correct record.

16 Urgent Business

There were no items of urgent business which the Chairman considered should be dealt with as a matter of urgency by virtue of Section 100B(4)(b) of the Local Government Act 1972 (as amended).

17 Declarations of Interest

The following interests were declared.

Councillors V Arnold, Burr, Clark and Sanderson declared a personal non-pecuniary but not prejudicial interest in agenda item 11 as North Yorkshire County Councillors.

18 Announcements

The Chairman made the following announcements:

Councillor V Arnold, the previous Chairman of the Council, presented cheques to the value of £1160 to each of her chosen charities, Yorkshire Air Ambulance and Macmillan Cancer Support.

Councillor Farnell, Staff Member Champion, presented Staff Celebration Awards to the following members of staff;

 Excellence in Leadership award - Marcus Lee, Team Leader, Revenues and Benefits and Alan McCarten Senior Taxation Officer.

 Innovation by a Team - Karen Hood, Team Leader for Managing Development and Chris Morris, Managing Development Hub Officer.

 Excellence in Customer Service - Phil Ansell, Caretaker at Ryedale House.

19 To Receive any Questions submitted by Members Pursuant to Council Procedure Rule 10.2 (Questions on Notice at Full Council)

There were no questions on notice.

20 To Receive a Statement from the Leader of the Council and to Receive Questions and Give Answers on that Statement

Councillor Cowling, Leader of the Council, presented the following statement:

Council 2 Thursday 7 July 2016 Page 6 EU Referendum - The decision by our country to leave the EU is one of the biggest changes that most of us will have seen in our lifetime and will have far reaching consequences. I believe it is the start of a new and exciting chapter in the history of our country and will provide opportunities which we, as a council, must be ready to take advantage of. We will need to continue to work with our officers to evaluate the impact on our council.

Tonight on our agenda we have items that are very relevant for the future wellbeing of our district. They now have to be viewed alongside the decision to leave the EU. For the time being I believe they remain relevant and in the best interests of our community.

Our corporate business plan - Delivering the Council's priorities - ensures that we focus on those core priorities - the things that matter to Ryedale and its residents.

Our Budget Strategy and Efficiency Statement sets out our plan to deliver the savings required to live within our budget - working towards 2020.

Our Policy & Resources Committee is recommending the use of reserves to fund the transformation programme that we have in place. Sometimes it is necessary to spend to save, and this is one of those occasions. We have been really clear that any underspend has to be returned to the NHB reserve.

Following tomorrow's LEP Board meeting there is a meeting of LGNY&Y Leaders and CEXS when we shall be discussing - again - Combined Authorities, Devolution and single tier authorities - all viewed now in the light of our exit from Europe and what that will mean. We will be working through some very uncertain times in the coming months and possibly years, so we will need to remain really clear about what our residents and businesses need. Our Chief Executive has coined a phrase "Delivering what matters for Ryedale" and in these difficult financial times it is never more relevant.

From Councillor Thornton

Could the Leader of Council please inform Council how much was in the 2016/17 and the 2015/16 budgets for T2020 and transformation projects?

The Leader replied

I will get you a written answer to that.

Councillor Thornton then asked the following supplementary question

As this process was started in November 2015 and planned earlier and much completed by the budget meeting in March 2016, could you also include in your response, why was there nothing in the 2015/16 budget and why not in the 2016/17 budget and is this not a departure from the 2015/16 and 2016/17 budgets?

The Leader replied

I'll get you a full written response to that.

From Councillor Potter

Council 3 Thursday 7 July 2016 Page 7 I managed to highlight a couple of points out of that one - specifically delivering the Council's priorities, the things that matter to Ryedale and its residents, sometimes it's necessary to spend to save and delivering what matters for Ryedale. Would the Leader therefore agree the importance of sound financial management, strict value for money and scrupulously accurate budgets and future spending plans in every aspect of Council business.

The Leader replied

I couldn't possibly argue with that.

From Councillor P Andrews

In regard to core priorities can the Leader confirm that it's not going to be confined to our strict statutory duties but is going to go further than that?

The Leader replied

I don't quite understand what you're asking.

Councillor P Andrews clarified

There are certain functions which the Council has to carry out which are mandatory functions and there are certain functions which are discretionary functions. Can you confirm please that when you're talking about core priorities that you are not restricting the Council's business to mandatory, statutory functions?

The Leader replied

Absolutely. I think one thing this Council has been really clear about and many Councillors who I speak to are really clear that some of the non-statutory are really important and if you look what we've spent money over the years such as flood defences which things we didn't have to do. We didn't have to do Brambling Fields. They are the things that matter to the people of Ryedale and I think that councillors have been really clear that they wish to continue to deliver all those services - all the services that we do, not just the statutory ones and this is why this transformation programme is as it is. This is in order to try to continue to deliver all those services.

From Councillor Wainwright

In the second paragraph of your statement you talk about the future well being of our district and the best interests of our community. At the Ryedale Area Committee meeting last Wednesday the A64 improvements were on the agenda. I understand from that meeting that the improvements that were scheduled for Barton Hill will not now take place. Could you explain why that might happen and what will happen in the future?

The Leader replied

It is simply a financial thing and there's no doubt that at that meeting it was cross party, we were all really, really cross. I think Lindsay, John and Val that you would all agree that everybody explained just how unhappy we were about that. It's simply that it's

Council 4 Thursday 7 July 2016 Page 8 been bumped out of the budget. All the work's done, the scheme is still there but whether or not it will be financed in the future we don't know. What I can tell you is that Caroline has written to our MP and he's doing all that he can to get it back into the work programme. I can't say how cross we all were about it.

From Councillor Clark

Going back to paragraph four and the T2020. I understand that iEse, that we have a partnership with them. Is this a local authority company? How much was the entry fee and what were our reasons for joining?

The Leader replied

iEse are a public interest company and I will get the answer to your questions written down and it will be sent to all Councillors. It was a very small joining fee as I recall.

Councillor Clark then asked the following supplementary question

It doesn't appear, it seems to be so small that iEse appear to have missed Ryedale Council off their list of partners or maybe they've just failed on their website but my concern is more than that. My concern is that this is a local authority company that we have joined as you Leader has just said, so if we've joined this Techal company and it's therefore subject to the Teckal rules, my understanding is from the Standing Orders, under responsibility for Council functions - and I'll read out to you 1.0 F, "Only the Council will exercise the following functions - All policy matters, new proposals relating to significant partnerships with external agencies and local authority companies". So on that basis we've done that. Could you tell me when that decisions to go down the iEse route was made by Full Council? If not I believe you've broken the Council's Constitution. And that really does require an answer now Chair.

The Leader requested the Chief Executive to answer

Thank you Cllr Clark, I think you've asked lots of these questions before and I think they come up in your motion later this evening. I think the entrance fee was £5. The decision to work with iEse is for tonight at Council now because I have worked under delegations in the amount of resource that I have applied within my delegations and we're asking members if they would like to continue the relationship. The relationship is not breaking Standing Orders in my view because I have a job to do, I've done it within the delegated scheme, the amount of money I have spent is within those delegations and we need to be able to manage the business of the Council. If Members do not wish to enter into this arrangement, then that is for tonight. The decision with iEse has been to a previous Resources Working Party, it has been to Policy and Resources Committee. We have appended the Mandate for Change and the Blueprint for change to Councillors, we've linked that to our strategy on our assets, Scrutiny are looking at the assets so in my view that is where we are and it's for Members this evening, if they wish to continue that relationship. It's no surprise to Members that it's my recommendation because we need help to move on, to save the money that we need to and that is the help that I believe we need.

From Councillor Clark

If the Leader prefers I will refer my next question to the CX because it follows on from that statement which she has just made. It doesn't say all significant decisions to work

Council 5 Thursday 7 July 2016 Page 9 with local government companies, it says all. But let's just accept that because we have to have flexibility. So far and the CX's authority without going to Committee is £50k - I don't know the figure for June but the figure up until the end of May of £60,307 and there is commitment to considerably more. How does that fit in with the Financial Standing Orders, financial regulations and responsibility for Council functions?

The Leader replied

I think I object to this because it's supposed to be questions to me not to the CX and if there are questions that I can't answer then you'll get a written answer. Now ask me something I can answer.

From Councillor Clark

I will ask you something you can answer. If the Council Standing Orders ad Financial Regulations are being broken is it not your duty to know at least the simple one that the limit of the CX's expenditure is £50k? Is it not your duty to know that if we're going into a partnership costing hundreds and thousand that it is to go to Full Council under the Tekal agreement not something that you will duck by saying that you will give a written answer later? Is that a question you can answer?

The Leader replied

I do know that the limit is £50k and it is at Full Council tonight.

From Councillor Clark

Why has £60,307 been spent and breaking that without an apology, a comment or anything else?

The Chairman intervened

Councillor Clark you have been told that people will provide answers to these questions that you're raising. We cannot keep going on at this time.

From Councillor Clark

This is the whole crux of tonight's meeting that we are going to be spending £1.2M on redundancies. we're asking for a further £400k. It wasn't to our belief, in the budget last March, it wasn't in the previous budget and on that questions - if we say that we can't answer those questions now, we shouldn't be going down the route that we're going down tonight because the reasons for those questions is because tonight is dependent on the answers to those questions.

The Leader replied

Chairman this is for debate later on

From Councillor J Andrews

If RDC and iEse have an internal agreement, which I think we do, why are we paying them 50p per mile in travel expenses, which is above what we pay staff?

Council 6 Thursday 7 July 2016 Page 10 The Leader replied

I'll get you a written answer. It would have been nice - my statement's been out for a week, I could have got you that answer, you could have had it tonight had you let me know what you're question was. You've obviously done your homework very well but do me the courtesy of giving me some notice. That is a very detailed question to be asking me.

The Chairman

The CX wishes to say something.

The Chief Executive

I do appreciate that this your territory Members but this is my profession and I'm being challenged a lot, which is obviously your role. We pay an amount of money as per the agreement and it's in the agreement I sent you, that you have and that's what I sent you. So obviously this is a political game that we're playing but I think when you say that I'm breaking the Constitution, breaking the law and breaking other things I must stand up for myself. I will say that there has been spend over 2 years, I will say that we're working with a company who are a regional improvement and efficiency partnership that have a good track record, that have helped us a lot. That have helped us get to where we need to be in terms of managing change.

There has been a scoping exercise where we spent £10k and it is true that we have paid over £50k to the same company, which has been paid over 2 financial years and I can't stress enough Chairman, that this has been to Resources Working Party, it has been to Policy and Resources Committee and it has been to Council. It's Council tonight and if Members do not wish to continue those arrangements that's absolutely up to Members of course. I'm sure they'll help me understand how I'll do what they want me to do, which is to manage £1.1M of savings before 2020 and at the same time keep frontline services going.

From Councillor Clark

Point of personal explanation. I did not wish those questions to go to the CX. It is up to the Leader of Council to know what the CX is doing, whether she is sticking to the Constitution, whether she is exceeding her limits. She should know that. That is her responsibility, not the CX's to end up having to answer questions that the Leader of Council can't answer.

21 Request for Support of the Chief Executive to Selby District Council

Considered - Report of the Chief Executive

It was moved by Councillor Cowling and seconded by Councillor S Arnold that the following recommendation be approved and adopted.

That Council is recommended to approve:

Council 7 Thursday 7 July 2016 Page 11 (i) The request from the Leader of Selby District Council that the Chief Executive of Ryedale District Council works, on a part time basis, as the interim Chief Executive of Selby District Council from the 1 August 2016 until further notice.

Councillor Clark moved and Councillor Thornton seconded the following amendment.

Remove the words "until further notice" and add to the recommendation;

(ii) This arrangement to run for a two month period (iii) Any request for an extension must be referred to Full Council

Upon being put to the vote the amendment was lost.

Voting record For 4 Against 19 Abstentions 1

Upon being put to the vote the motion was carried.

Resolved

(i) That the request from the Leader of Selby District Council that the Chief Executive of Ryedale District Council works, on a part time basis, as the interim Chief Executive of Selby District Council from the 1 August 2016 until further notice be approved.

Recorded vote For - Councillors S Arnold, V Arnold, Burr, Cleary, Cowling Cussons, Duncan, Farnell, Frank, Gardiner, Hope, Ives, Jainu-Deen, Keal, Maud, Oxley, Sanderson, Wainwright and Windress Against - Councillors J Andrews, P Andrews, Clark, Potter and Thornton

22 To consider for Approval the Recommendations in respect of the following Part 'B' Committee Items:

Planning Committee - 5 July 2016

Minute 21 - Developer Contributions from Small Sites

It was moved by Councillor Windress and seconded by Councillor Cleary that the following recommendations of the Planning Committee be approved and adopted.

The Planning Committee resolved to recommend to the Council the following approach:

(i) Continue to negotiate the on-site provision of affordable housing in line with Policy SP3 of the Ryedale Plan with the exception that on-site affordable housing

Council 8 Thursday 7 July 2016 Page 12 contributions will not be sought from sites of 10 dwellings or less and which have a maximum combined gross floor space of no more than 1,000square metres;

(ii) Continue to negotiate the on-site provision of affordable housing in line with SP3 of the Ryedale Plan with the exception that on sites of between six and ten dwellings in parishes outside of Malton, Norton and Pickering, financial contributions will be sought in lieu of the existing on-site policy requirement and that financial contributions of an equivalent of 40% of provision will be sought on such sites in west and south west Ryedale;

(iii) Not seek financial contributions from small residential sites through the planning process towards affordable housing on sites of five dwellings or less under Policy SP3 of the Ryedale Plan.

Upon being put to the vote the motion was carried.

Resolved

(i) Continue to negotiate the on-site provision of affordable housing in line with Policy SP3 of the Ryedale Plan with the exception that on-site affordable housing contributions will not be sought from sites of 10 dwellings or less and which have a maximum combined gross floor space of no more than 1,000square metres;

(ii) Continue to negotiate the on-site provision of affordable housing in line with SP3 of the Ryedale Plan with the exception that on sites of between six and ten dwellings in parishes outside of Malton, Norton and Pickering, financial contributions will be sought in lieu of the existing on-site policy requirement and that financial contributions of an equivalent of 40% of provision will be sought on such sites in west and south west Ryedale;

(iii) Not seek financial contributions from small residential sites through the planning process towards affordable housing on sites of five dwellings or less under Policy SP3 of the Ryedale Plan.

Voting record For 19 Against 4 Abstentions 1

Policy and Resources Committee - 16 June 2016

Minute 6 - Delivering the Council's Priorities

It was moved by Councillor Cowling and seconded by Councillor S Arnold that the following recommendations of the Policy and Resources Committee be approved and adopted.

1. That the progress made by the Council in delivering its priorities in 2015/16 and the challenges to be faced in 2016/17 be noted

2. That the Aims and Strategic Objectives of the Council Business Plan for 2016/21 as attached at Annex A of the report be agreed.

Council 9 Thursday 7 July 2016 Page 13 Upon being put to the vote the motion was carried.

Resolved

1. That the progress made by the Council in delivering its priorities in 2015/16 and the challenges to be faced in 2016/17 be noted

2. That the Aims and Strategic Objectives of the Council Business Plan for 2016/21 as attached at Annex A of the report be agreed.

Voting record For 18 Against 4 Abstentions 2

Minute 9 - Budget Strategy and Efficiency Statement

It was moved by Councillor Cowling and seconded by Councillor S Arnold that the following recommendations of the Policy and Resources Committee be approved and adopted.

1. That Council be recommended to approve the following strategy for the preparation of the 2017/18 budget:

i. Proposals to be brought forward for a £5 increase in Council tax;

ii. Increases in fees and charges to be to a maximum of 4.5% on a cost centre heading basis excluding VAT and only those charges officers recommend above this figure to be considered by the relevant policy committee;

iii. Efficiencies to be maximised; and

iv. The use of New Homes Bonus in line with the medium term financial plan.

v. Options for service cuts to be provided if necessary. These proposals to be considered by the Resources Working Party and brought to the Policy and Resources Committee and Council.

2. That Council be recommended to approve the Annual Efficiency Plan and that delegated authority be given to the Finance Manager, in conjunction with the Chairman of Policy and Resources Committee, to accept the 4 year funding offer should they deem that it is in the best interests of the Council to accept the offer.

An amendment was moved by Councillor Cowling and seconded by Councillor Arnold.

To add that

"Should there be a significant impact on the economic circumstances of this Council as a result of the EU Referendum, the Council reserves the right to reconsider the Budget Strategy and Efficiency Statement."

Council 10 Thursday 7 July 2016 Page 14 Upon being put to the vote the amendment was carried.

Voting record For 20 Against 0 Abstentions 4

Upon being put to the vote the substantive motion was carried.

Resolved

1. That the following strategy for the preparation of the 2017/18 budget be approved:

i. Proposals to be brought forward for a £5 increase in Council tax;

ii. Increases in fees and charges to be to a maximum of 4.5% on a cost centre heading basis excluding VAT and only those charges officers recommend above this figure to be considered by the relevant policy committee;

iii. Efficiencies to be maximised; and

iv. The use of New Homes Bonus in line with the medium term financial plan.

v. Options for service cuts to be provided if necessary. These proposals to be considered by the Resources Working Party and brought to the Policy and Resources Committee and Council.

2. That the Annual Efficiency Plan be approved and that delegated authority be given to the Finance Manager, in conjunction with the Chairman of Policy and Resources Committee, to accept the 4 year funding offer should they deem that it is in the best interests of the Council to accept the offer.

3. Should there be a significant impact on the economic circumstances of this Council as a result of the EU Referendum, the Council reserves the right to reconsider the Budget Strategy and Efficiency Statement

Voting record For 18 Against 5 Abstentions 1

Minute 10 - Member Involvement in Appeal Panels

It was moved by Councillor Cowling and seconded by Councillor Ives that the following recommendations of the Policy and Resources Committee be approved and adopted.

That Council be recommended to approve that the Members Appeals Panel be replaced by an Officer appeals Panel in all appeals against dismissal except where a case cannot be considered by the Head of Paid Service or nominated representative.

Council 11 Thursday 7 July 2016 Page 15 Upon being put to the vote the motion was lost.

Resolved

That the Members Appeals Panel not be replaced by an Officer Appeals Panel in all appeals against dismissal except where a case cannot be considered by the Head of Paid Service or nominated representative be approved.

Voting record For 6 Against 16 Abstentions 1

Please note: a recorded vote was requested for this item

Minute 12 - Towards 2020 - Use of Reserves

It was moved by Councillor Cowling and seconded by Councillor S Arnold that the following recommendations of the Policy and Resources Committee be approved and adopted.

That Council be recommended to approve:

i. that £958K is transferred from the NHB reserve as follows:

 transfer of £778K to the restructure reserve giving a total balance of £1.2m to fund the cost of further redundancies   transfer of £180K to the ICE Fund as an invest to save measure to accommodate other organisational costs of change, including IT and transformational support and the continued work with iESE.  ii. that £150k is transferred from the General Reserve to the ICE Fund as detailed in bullet point 2 above iii. Any unused funds which have been transferred from the NHB Reserve be returned to the NHB Reserve

Upon being put to the vote the motion was carried.

Resolved

i. that £958K is transferred from the NHB reserve as follows:

 transfer of £778K to the restructure reserve giving a total balance of £1.2m to fund the cost of further redundancies   transfer of £180K to the ICE Fund as an invest to save measure to accommodate other organisational costs of change, including IT and transformational support and the continued work with iESE.  ii. that £150k is transferred from the General Reserve to the ICE Fund as detailed in bullet point 2 above

Council 12 Thursday 7 July 2016 Page 16 iii. Any unused funds which have been transferred from the NHB Reserve be returned to the NHB Reserve

Voting record For 17 Against 4 Abstentions 1

Exempt Information

That under Paragraph 1, 2 and 3 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended), the public be excluded from the meeting for the following item as there would be a likely disclosure of exempt information relating to any individual or which is likely to reveal the identity of any individual or the financial or business affairs of a particular person.

Voting record For 15 Against 4

Minute 12 - Towards 2020 - Senior Staffing Matters

It was moved by Councillor Cowling and seconded by Councillor S Arnold that the following recommendations of the Policy and Resources Committee be approved and adopted.

That Council be recommended to approve the following matters:

(i) The request for voluntary redundancy for Chief Officer Post CMT 165 be approved;

(ii) That delegated authority be given to the Chief Executive to terminate the employment of postholder CMT165 on the grounds of redundancy on the terms set out in the Council’s Redundancy and Redeployment Policy

Upon being put to the vote the motion was carried.

Resolved

(i) The request for voluntary redundancy for Chief Officer Post CMT 165 be approved;

(ii) That delegated authority be given to the Chief Executive to terminate the employment of postholder CMT165 on the grounds of redundancy on the terms set out in the Council’s Redundancy and Redeployment Policy

Voting record For 14 Against 4 Abstention 1

23 Notices on Motion Submitted Pursuant to Council Procedure Rule 11

Council 13 Thursday 7 July 2016 Page 17 As the meeting had lasted for more than three and a half hours, the Chairman proposed that the meeting continue beyond the time limit of three and a half hours

Upon being put to the vote the motion was lost.

The Chairman declared the meeting closed.

Consideration of the Motions on the agenda was therefore deferred until the next meeting of the Council.

Voting record For 4 Against 11

24 Any other business that the Chairman decides is urgent.

There being no other business, the meeting closed at 10.35 pm.

Council 14 Thursday 7 July 2016 Page 18 Agenda Item 4

7 July 2016 – Written Responses to Questions

Questions on the Leader's Statement

From Cllr Thornton

"How much was in the 2016/17 and the 2015/16 budgets for T2020 and transformation projects?"

Written response:

"It has been previous practice to use reserves to cover the cost of transformational change and therefore there was no specific Revenue budget earmarked for the T2020 programme.

The MTFP is a key element of the Finance Strategy and budget setting report, in both years it was very clear about the need to make future savings and the requirement to fund those savings from reserves. The 16/17 Finance Strategy report presented to P&R in February 2016 included the emboldened statement in relation to the NHB reserve:

"Officers recommend that this balance be ring fenced subject to a further report to this Committee focusing on transformational support."

The authority to vire budgets is included within the Financial Procedure Rules of the Council, specifically section 3 Budgetary Control.

Virements have been undertaken from various budget head underspends in 2015/16 and 2016/17 to facilitate the iESE spend in line with the budgetary control rules. An element of the Best Value Budget was available to use for the iESE scoping exercise in 15/16, no other specific budget provision was included."

From Cllr Thornton

"Why was there nothing in the 2015/16 budget and why not in the 2016/17 budget and is this not a departure from the 2015/16 and 2016/17 budgets?"

Written response:

"No it is not a departure from the 2015/16 and 2016/17 budgets. Please refer to the previous answer which states that it was made very clear in both years that significant savings would be required and would need to be funded from reserves."

From Cllr Clark

"I understand that iEse, that we have a partnership with them. Is this a local authority company? How much was the entry fee and what were our reasons for joining?"

Written response:

"It is not a local authority company. It is a social enterprise company operating in the public sector, the reason for joining was because we know from experience that we have to resource change because if we do not the demands of keeping the day job

Page 19 going mean that we would not be able to concentrate on the future and on delivering services in up to date ways and realising the benefits from the new technologies available which our customers use and increasingly wish to access services in different ways.

Membership fee of £1."

From Cllr Clark

"It doesn't appear, it seems to be so small that iEse appear to have missed Ryedale Council off their list of partners or maybe they've just failed on their website but my concern is more than that. My concern is that this is a local authority company that we have joined as you Leader has just said, so if we've joined this Techal company and it's therefore subject to the Teckal rules, my understanding is from the Standing Orders, under responsibility for Council functions - and I'll read out to you 1.0 F, "Only the Council will exercise the following functions - All policy matters, new proposals relating to significant partnerships with external agencies and local authority companies". So on that basis we've done that. Could you tell me when that decisions to go down the iEse route was made by Full Council? If not I believe you've broken the Council's Constitution. And that really does require an answer now Chair."

Written response:

"The relationship with iESE is not classed as a 'significant partnership with external agencies and local authority companies'."

From Cllr Clark

"If the Leader prefers I will refer my next question to the CX because it follows on from that statement which she has just made. It doesn't say all significant decisions to work with local government companies, it says all. But let's just accept that because we have to have flexibility. So far and the CX's authority without going to Committee is £50k - I don't know the figure for June but the figure up until the end of May of £60,307 and there is commitment to considerably more. How does that fit in with the Financial Standing Orders, financial regulations and responsibility for Council functions?"

Written response:

"See answers above re Financial Procedure Rules. There has been no breach of the Financial Standing Orders. The Chief Executive has used under spends and vired money from budgets which is completely in line with the Financial regulations."

From Cllr Clark

"If the Council Standing Orders and Financial Regulations are being broken is it not your duty to know at least the simple one that the limit of the CX's expenditure is £50k? Is it not your duty to know that if we're going into a partnership costing hundreds and thousand that it is to go to Full Council under the Tekal agreement not something that you will duck by saying that you will give a written answer later? Is that a question you can answer?"

Page 20 Written response:

"This statement is factually incorrect. The Council Standing Orders and Financial Regulations have not been broken. Money has been vired from budget under spends over two years."

From Cllr Joy Andrews

"If RDC and iEse have an internal agreement, which I think we do, why are we paying them 50p per mile in travel expenses, which is above what we pay staff?"

Written response:

"This is what was agreed and detailed in the information the Chief Executive has already provided in the Towards 2020 support from iESE transformation model November 2015."

Page 21 This page is intentionally left blank Agenda Item 11

REPORT TO: FULL COUNCIL

DATE: 1 SEPTEMBER 2016

SUBJECT: PART ‘B’ REFERRALS FROM PLANNING COMMITTEE ON 7 JUNE 2016

5 Part B Report - Ryedale Community Infrastructure Levy - Payment Instalment Policy

The Planning Committee considered the report of the Head of Planning and Housing which had previously been circulated.

Decision

Council is recommended to approve:

(i) The key elements of a CIL payment instalment policy as outlined in paragraph 6.5 of the report to Committee.

[For 10 Against 0 Abstain 0]

Council Page 23 1 September 2016 This page is intentionally left blank Agenda Item 11

PART B: RECOMMENDATIONS TO COUNCIL

REPORT TO: PLANNNING COMMITTEE

DATE: 7 JUNE 2016

REPORT OF THE: HEAD OF PLANNING AND HOUSING GARY HOUSDEN

TITLE OF REPORT: RYEDALE COMMUNITY INFRASTRUCTURE LEVY. PAYMENT INSTALMENT POLICY

WARDS AFFECTED: ALL

EXECUTIVE SUMMARY

1.0 PURPOSE OF REPORT

1.1 For Members to consider and agree a draft CIL Payment Instalment Policy.

2.0 RECOMMENDATION

2.1 That Council is recommended to approve: (i) The key elements of a CIL payment instalment policy as outlined in paragraph 6.5.

3.0 REASON FOR RECOMMENDATION

3.1 To support the implementation of the Community Infrastructure Levy in Ryedale.

4.0 SIGNIFICANT RISKS

4.1 There are no significant risks associated with the recommendation.

5.0 POLICY CONTEXT AND CONSULTATION

5.1 Members are aware that the Ryedale Community Infrastructure Levy came into effect on the 1st March 2016. CIL legislation sets a default of full payment of the Levy within 60 days of the commencement of the chargeable development unless a charging authority has an payment instalment policy in place. The purpose of this is to allow payments to be spread over a longer period. The ability to pay CIL in instalments will make a considerable difference to those liable to pay CIL and will be an important factor influencing development viability and deliverability.

5.2 The legislation provides the Council with the freedom to decide the number of

PLANNING COMMITTEE 7 JUNE 2016

Page 25 payments, the amount and timing of payments in an Instalment Policy. There is no statutory requirement to consult on a payment instalment policy prior to its introduction, although clearly it is the interests of all to ensure that the policy is 'workable'. To this end and given that the CIL Charging Schedule is already in effect, it is considered that a period of practical application of the policy in tandem with targeted consultation with developers will help to identify whether improvements or changes to the policy should be made. It should be noted that a Council can make changes to its Instalment Policy providing that sufficient notice is given.

6.0 REPORT

6.1 A proposed Instalment Policy is outlined below. It has been compiled by taking account of existing instalment policies operating in a range of other areas across the country, including Selby and Hambleton in North Yorkshire.

6.2 As Members are aware, CIL is charged (primarily on residential development) across Ryedale on sites of all sizes. Whilst it is important that CIL is collected in a timely fashion, this does need to be balanced against the fact that the charge will impact upon the development economics of a scheme. It is important that in collecting CIL, the Council's approach to an instalment policy is reasonable and that it acts to serve its purpose and to support developers in making payments. If an instalment policy is over optimistic in terms of the timing and level of payments, there is a risk that time and resources would need to be spent enforcing payments and collecting surcharges. It is considered important therefore that any instalment policy is reasonable and pragmatic and is designed to reflect the range of CIL liabilities that different landowners and developers are likely to face.

6.3 To date, CIL Instalment policies across the country vary considerably in terms of:

 the number and proportion of instalments depending on the amount of CIL to be paid  the time period/ 'payment trigger' for each instalment

6.3 A number of existing charging schedules, including some of those operating locally, require CIL to be paid in full 60 days after the commencement of development for schemes that are liable for up to £50k CIL charge. It is possible that this is a legacy of earlier versions of the CIL Regulations, however, it is considered that this could be onerous for smaller developers who may not be in a position to make payments early in the early stages of a scheme. On that basis, it is considered that Ryedale should provide the opportunity for CIL liabilities to be paid in smaller amounts and over a longer time period.

6.4 Similarly, a number of charging schedules establish relatively short periods (2-4 months) for initial and second instalment triggers even for larger CIL liabilities. Officers are concerned that such an approach may prove difficult for the developers of larger schemes which often require a longer lead in time. It is considered that for higher liabilities schemes should be given the option of additional instalment periods over a longer period.

PLANNING COMMITTEE 7 JUNE 2016

Page 26 6.5 Proposed Instalment Policy

CIL Liability Payment Period and amount Under £10,000 Due in full within 6 calendar months of commencement From £10,000 up to £50,000 Due in two equal instalments within: 6 months of commencement 9 months of commencement From £50,000 up to £150,000 Due in three equal instalments within: 6 months of commencement 9 months of commencement 12 months of commencement Over £150,00 Due in four equal instalments within; 6 months of commencement 9 months of commencement 12 months of commencement 18 months of commencement

7.0 IMPLICATIONS

7.1 The following implications have been identified: a) Financial There are no direct financial implications associated with the implementation of an Instalment Policy.

b) Legal Once an Instalment Policy is agreed it forms the basis for the CIL demand notice that the Council will issue. Any non-compliance with the demand notice can ultimately result in legal action.

c) Other (Equalities, Staffing, Planning, Health & Safety, Environmental, Crime & Disorder) No other implications have been identified.

8.0 NEXT STEPS

8.1 Once agreed by Council, the instalment policy will be published on the Council's web- site and made available for inspection at Ryedale House, in accordance with statutory requirements.

8.2 Use of the policy will be monitored together with the responses of the development industry. If this reveals a need to amend the policy this will be the subject of a further report to Members.

Gary Housden Head of Planning and Housing

Author: Jill Thompson, Forward Planning Manager Telephone No: 01653 600666 ext: 327 E-Mail Address: [email protected]

Background Papers: Ryedale Community Infrastructure Levy Charging Schedule

PLANNING COMMITTEE 7 JUNE 2016

Page 27 Examples of other CIL Instalment policies

Background Papers are available for inspection at: http://www.ryedaleplan.org.uk/community-infrastructure-levy

Ryedale House

PLANNING COMMITTEE 7 JUNE 2016

Page 28 Agenda Item 11

REPORT TO: FULL COUNCIL

DATE: 1 SEPTEMBER 2016

SUBJECT: PART ‘B’ REFERRALS FROM PLANNING COMMITTEE ON 2 AUGUST 2016

41 Part B Report - Slingsby, South Holme & Fryton Design Statement

Recommendation to Council

The Planning Committee resolved to RECOMMEND to the Council: adopt the Slingsby, South Holme and Fryton Village Design Statement as a Supplementary Planning Document.

[For 9 Against 0 Abstain 0]

In accordance with the Members Code of Conduct Councillor Farnell declared a personal non pecuniary but not prejudicial interest.

Council Page 29 1 September 2016 This page is intentionally left blank Agenda Item 11

PART B: RECOMMENDATIONS TO COUNCIL

REPORT TO: PLANNING COMMITTEE

DATE: 2 AUGUST 2016

REPORT OF THE: HEAD OF PLANNING AND HOUSING GARY HOUSDEN

TITLE OF REPORT: SLINGSBY, SOUTH HOLM E AND FRYTON VILLAGE DESIGN STATEMENT

WARDS AFFECTED: HOVINGHAM WARD (SLINGSBY, SOUTH HOLME AND FRYTON PARISH)

EXECUTIVE SUMMARY

1.0 PURPOSE OF REPORT

1.1 For members to consider the Village Design Statement (VDS) and the comments received follow ing consultation on the document and to recommend to Council that it is adopted as a Supplementary Planning Document (SPD).

2.0 RECOMMENDATION

2.1 That Council is recommended to:

(i) Adopt the Slingsby, South Holme and Fryton Village Design Statement as a Supplementary Planning Document.

3.0 REASON FOR RECOMMENDATION

3.1 Members of the community of Slingsby, South Holme and Fryton Parish have prepared a Village Design Statement (VDS). They are keen that the document is adopted as a Supplementary Planning Document (SPD) by Ryedale District Council, as the Local Planning Authority. SPD's supplement the policies of the Development Plan for the purposes of determining planning applications and an adopted VDS has weight in the decision making process. Officers are confident that all of the necessary statutory requirements have been met to enable to the Council to adopt the document.

4.0 SIGNIFICANT RISKS

4.1 There are no significant risks associated w ith this report. The VDS has been

PLANNING COMMITTEE 2 AUGUST 2016

Page 31 produced in accordance with the statutory requirements covering the production of Supplementary Planning Documents.

5.0 POLICY CONTEXT AND CONSULTATION

5.1 The Ryedale Local Development Scheme commits the authority to the preparation of Supplementary Planning Documents (SPDs) to support the implementation of the Ryedale Plan.

5.2 SPDs can cater for a range of topics, and it is not uncommon for Village Design Statements (VDSs) to be adopted formally as SPD's. Members w ill be aw are that VDS are commonly used by local communities to articulate w hat special qualities and features contribute to a place, and thus are of value. As such, w hen they are capable of being adopted as SPD, they provide further information and evidence to help in the implementation of policies relating to the preservation and enhancement of the built and natural environment. Outside of the formal planning application process, VDSs can also provide a useful source of information to those seeking to undertake minor works to their properties.

5.3 Before a Local Planning Authority can adopt an SPD it must be satisfied that consultation has been undertaken to inform the preparation of the document and seek views on a draft version. The group w ho have prepared the draft version of the document have undertaken initial consultation to inform the drafting of the VDS. A draft of the VDS w as then subject to public consultation betw een 18 April and 30 May 2016. Comments from Historic England, Natural England, The How ardian Hills AONB Manager and North Yorkshire County Council w ere received. The VDS and Consultation Statement, the latter details of the consultation and summaries of comments and responses are included at Appendix 1 and 2 of this report, respectively.

6.0 REPORT

6.1 Members w ill recall that a draft of the VDS w as considered by this committee on 12 April of this year. Members agreed that the document be subject to formal consultation w ith a view to progressing its adoption as a Supplementary Planning Document.

6.2 The VDS is divided into themes. It provides historical context and information covering the evolution of the settlements to present day and:

• Considers the setting of the village in the countryside, including important view s in and around the settlement; • Describes and defines the layout of the village and describes areas of differing character; • Provides details of the houses w hich create the special character of the village; • Describes views, setting and features through maps and photos; • Discusses features such as materials, roofs, utility fixtures and fittings, w indow s, doors, outbuildings (barns and sheds), property boundaries and gates; • Identifies landscape features and important trees and w ildlife and habitats; and • Provides guidelines for future development and property alterations.

PLANNING COMMITTEE 2 AUGUST 2016

Page 32 6.3 In addition, the V DS seeks to achieve the follow ing:

• Identify features which should be protected/preserved; • Identify changes which could be harmful to the village's character; and • Help to guide new developments and alterations to existing buildings.

6.4 The aim is provide a locally-specific context to considering how new development and alterations can contribute to ensuring that Slingsby remains the attractive and valued village it is today, and that in Fryton and South Holme any new development is sensitive to its surroundings. Much of the older village of Slingsby is w ithin a Conservation Area, and there are a number of Listed Buildings. These are statutory designations w hich recognise the architectural and historic character of places and buildings. The Village Design Statement can complement these existing designations, and can provide guidance, even when Local Planning Authority approval is not required.

6.5 Historic England had no specific comments to make, but w elcomed notification of the adoption of the SPD. The How ardian Hills AONB Manager w as supportive of the document's content, and sought clarification on the use of limestone. North Yorkshire County Council provided helpful comments regarding inclusion of w ider sources of information, consideration of Castle How ard Registered Park and Garden, and greater clarity on the scope of the VDS. In response to this, further links have been provided to the w ider landscape character assessments, and the introduction has been amended to make it clearer on the scope (i.e. area of coverage of the VDS). The Local Planning Authority and VDS group do not consider that development in Slingsby, South Holme or Fryton has any capacity to affect the setting or any significance of the Castle How ard Registered Park and Garden due to the distance, low ering in elevation and intervening undulations in the topography. Natural England's response seeks to ensure that protection of the natural environment and the promotion of biodiversity is enhanced in the document. Officers have w orked w ith the VDS group to make it clearer w ithin the SPD the importance of these considerations, particularly regarding Green Infrastructure, and have responded to specific requests regarding planting of trees, use of green w alls/roofs, lighting by highlighting in the document, w here such matters have been considered within the VDS.

6.6 Natural England also sought consideration as to the need for a Strategic Environmental Assessment/Habitats Regulations Assessment. The Local Planning Authority w ill incorporate into the Statement of Matters that it considers that the Slingsby, South Holme and Fryton Village Design Statement is a document w hich should not be subject to Strategic Environment Assessment. The reasons for this are: The document has a very specific scope, covering three rural settlements, and provides guidance on important design attributes of the settlements, and matters to consider in development proposals. It does not in itself identify any form of development to be undertaken w ithin those settlements. The adoption of this Village Design Statement w ould provide local amplification of policies in the established Development Plan w hich has been subject to SEA/SA.

6.7 The Local Planning Authority w ill also incorporate into the Statement of Matters that it considers that the Slingsby, South Holme and Fryton Village Design Statement is a document w hich does not require a Habitats Regulations Assessment to be undertaken for the follow ing reasons:

PLANNING COMMITTEE 2 AUGUST 2016

Page 33 • This is a Village Design Statement, w hich does not identify or promote particular sites or forms of development. It provides design context and aw areness; • It is only applied w ithin the context of the Development Plan w hich has been subjected to SA/SEA and the Habitat Regulations Assessment; • No sites, w hich are of international significance for biodiversity, are within less than 8.8km from Slingsby, South Holme and Fryton. On that basis, the application of this Village Design Statement w ould have no effects on the conservation objectives of Natura 2000 Sites (Special Area of Conservation/Special Protection Area sites).

6.7 It is considered that on the basis of the above, no substantive issues that have been raised by the representations received. The representations have provided the opportunity to make small scale revisions w hich have improved the clarity of the document.

7.0 IMPLICATIONS

7.1 The follow ing implications have been identified: a) Financial There are no financial implications associated w ith the recommendation

b) Legal The document has been produced in accordance w ith the statutory requirements covering the production of Supplementary Planning Documents

c) Other (Equalities, Staffing, Planning, Health & Safety, Environmental, Crime & Disorder) Once adopted as a SPD, the VDS w ill have w eight in the decision making process.

Gary Housden Job Title: Head of Planning and Housing

Author: Rachael Balmer , Forward Planning Officer Telephone No: 01653 600666 ext: 357 E-Mail Address: [email protected]

Background Papers: Planning Committee. 12 April 2016. Agenda Item 5.

Background Papers are available for inspection at: www.ryedale.gov.uk

PLANNING COMMITTEE 2 AUGUST 2016

Page 34 Agenda Item 11

VILLAGE DESIGN STATEMENT for SLINGSBY, SOUTH HOLME and FRYTON

SUPPLEMENTARY PLANNING DOCUMENT

August 2016

Page 35

CONTENTS

PAGE

Introduction 3 General description of Slingsby, South Holme and Fryton 4 Historical context 9 The character of village housing 12 Individual buildings in Slingsby 19 Landscape features 25 Wildlife, habitats and green infrastructure 29 Public consultation 29 Guidelines for future development and property alterations 30

Conclusion 32

Appendix A: Results of Public Consultation 33 Appendix B: Listed Buildings in Slingsby, South Holme and Fryton 35 Appendix C: Conservation Areas 39 Appendix D: Bats 41 Appendix E: Planning Policy Documents 42 Appendix F: Bibliography and Websites 43 Appendix G: Acknowledgements 45 Appendix H: Maps 46

Front cover: The Green, Slingsby Back cover: Slingsby Castle

2 Page 36 Introduction

This document describes the distinctive characters of the village of Slingsby, and hamlets of South Holme and Fryton and the immediate countryside which surrounds these settlements by examining:

 the setting of the villages in the countryside;  the layout of the villages;  details of the houses which create the special character of the villages; and  other special landscape features. It identifies important features of the villages and their buildings which need to be retained if the character of the villages is to be preserved, while recognising that Slingsby is a working village. It also seeks to identify changes which could be harmful to the character of these settlements. The focus of the document is on Slingsby, as it is the largest settlement in the Parish and subject to more development than the hamlets of South Holme and Fryton. It is intended to be of help and guidance for any new developments in the village as well as for small alterations to existing properties. As a Supplementary Planning Document, it has weight when future planning applications affecting the village are considered, and is intended to be a guide to all those involved in such applications. Maps showing the extent of the settlements; the surrounding fields; and the Slingsby Conservation Area Designation are shown in Appendix H.

Slingsby from the air (Steve Allen Photography)

3 Page 37

General description of Slingsby, South Holme and Fryton

Slingsby is one of five villages around Castle Howard developed from older settlements by the Earls of Carlisle from the late 18th century. It lies on the line of the former Roman road now known as ‘The Street’, namely the B1257 that runs westwards from Malton. The main road passes through the south of the village but the settlement is centred on lower ground to the north. The village is characterised by its open views across the fields which surround it. Minor roads from the north and south also meet at the village. The approach from the south via Castle Howard gives a popular panoramic view of the whole of the Vale of Pickering, with the North York Moors beyond. In the foreground of this view Slingsby is laid out below with the ruined castle and its stone buildings with red pantiled roofs. The ridge, known as The Sheep Walk, forms the notional southern extent of the village. It is part of an ancient trackway which follows the line of the east/west ridge from Malton to Hovingham.

View of Slingsby from The Sheep Walk The village is approached from the north through South Holme where the road is low-lying with high hedges and hedgerow trees. The track that was the former railway line, which closed in the 1960s, marks the northern boundary of the main village.

4 Page 38 Approaches to Slingsby:

From the west From the east

From the south The western approach from Hovingham gives a clear and well-loved view across open fields, towards the village sportsfield and the three iconic listed buildings: the ruin of Slingsby Castle, All Saints Church and the fine Georgian Old Rectory.

View towards Slingsby from Fryton

5 Page 39 The older, central part of the village includes High Street (the original main village street), The Green with an historic maypole, the area around All Saints Church, the Castle and Railway Street. The buildings here are mostly stone and traditional in appearance. The eastern approach to the village is via The Balk, a modern road developed from a trackway; the road is flanked by a striking avenue of large mature sycamore and horse chestnut trees, which present the main view of the village from the east. Wyville Hall, with its steeply pitched roof, is the oldest house in the village and is possibly on the site of one of the original manor houses.

Wyville Hall The village stretches away to the north from The Green along Railway Street, a long street with an open feel, characterised by individual, mainly detached, stone houses, many dating from the late 18th/early 19th century. These include The Grapes Inn, which has traded since the late 17th century. On the eastern side of the street the houses are set back behind a wide verge and footpath, and in many cases behind stone boundary walls. Modern development is limited mainly to the south-eastern quarter of the village, where there is a mixture of bungalows and two-storey dwellings. These have been built since the late 1980s in a restrained modern style in brick, free of complicated detailing, as in Sycamore Close.

Sycamore Close, Slingsby

6 Page 40 Slingsby has a number of independent working businesses. Originally a farming community, there are still farms on the outskirts of the village. At the time of writing there is a village shop and a bus service. Tourism is important for the local economy, with various businesses, including two well-screened caravan sites. Two miles to the north, South Holme is a small hamlet sited on slightly raised ground. It consists of three working farms, including West Farm, a listed property, and a small group of houses, including Manor Farm, a large prominently placed listed building, now a private house.

West Farm, South Holme Manor Farm, South Holme

Fryton lies about half a mile to the west of Slingsby. It consists of a single linear street running north/south, originally serving four good-sized early 19th- century farms with associated barns and cottages, with a few modern additions. Two working farms remain, Cherrygarth Farm and North Farm, while other traditional farm buildings have been converted to permanent residential and holiday accommodation. Fryton is surrounded by open fields.

Fryton from Fryton Lane Fryton

7 Page 41

Cherrygarth Farm, Fryton

Important protected views and open green spaces

8 Page 42 Historical context

The village of Slingsby developed from a small Danish settlement of the 9th or 10th century called Selungesbi or Eslingesbi (house of Sleng or Eslinc); probably comprising a house in an enclosed garth with huts for servants. By the time of the Domesday Book in 1086, the Manor of Slingsby had two manor houses, a priest and about 2,500 acres (1,012 hectares) of land. The land would have been divided into strips separated by turf banks which set the pattern for the future field and plot layout. The first recorded church building dates from the mid- 12th century. In the late 12th century, the two manor houses in Slingsby were held by the Wyville family. Wyville Hall, though much altered and possibly rebuilt, is one of the oldest houses in the village. The family’s second manor house was sold to the Hastings family in the mid-14th century and was gradually converted into a castle with crenellations, ramparts and a barbican. It is thought that the main approach to the castle was from the east, and that there would have been a gatehouse on that side. The smaller buildings of medieval Slingsby would have been clustered around the entrance to the castle, and as a result the village grew up on the east side. When Lord William Hastings was beheaded in 1483 on the orders of Richard III, the castle fell into ruins. In 1594, Sir Charles Cavendish (son of Bess of Hardwick) purchased the Manors of Slingsby and Fryton. His son, also Charles, started to build a large house on the site of the medieval castle, but the work was never completed because of the Civil War and it fell into the ruin that can still be seen today.

The ruins of Slingsby Castle The purchase of Slingsby (and Fryton) Manor by the Earl of Carlisle in the early 18th century is probably the most significant event in the development of the village. Construction of Castle Howard had begun in 1699 and the surrounding villages were developed to support the Estate. Many of the stone farmhouses and cottages in the village date from this time. The Old Rectory was built in 1740.

9 Page 43 By this time the pattern of roads and plots which are still recognisable today was fully established, having developed from the fields and plots of the medieval period. The farmsteads at Fryton and South Holme were improved with larger buildings and substantial ranges of outbuildings, but the number of households did not seem to increase. Slingsby, on the other hand, began to increase noticeably in size during the last quarter of the 18th century. Numerous smaller cottages and houses, built in the local limestone, were constructed during the 18th and 19th centuries. The Methodist Church was built in 1837 and the Reading Room shortly afterwards. The school was built in 1860. A little later the avenue of trees along The Balk was planted.

The School, School House and Reading Room High Street

Methodist Church The Balk

There were two public houses: The Howard Arms on Malton Road and The Three Tuns (later The Grapes Inn) in Railway Street. In 1867 a new church was built – a direct copy of the one it replaced. Another significant event in the development of Slingsby was the opening of the Thirsk/Malton railway line in 1846 and the opening of Slingsby railway station in 1853. The railway passed along the north side of the village and as a result the road running to the north towards South Holme became Railway Street, and developed into the central village thoroughfare.

10 Page 44

Slingsby station Railway Street

The second half of the 19th century saw the village at its largest. In 1861 the population peaked at 707, but by 1901 it had fallen back to 454 (roughly the level it had been in 1801). The size and shape of the village changed little over the first half of the 20th century. The main occupation continued to be agriculture, with more than a dozen working farms in the village plus other smaller holdings. Nearly all households still tended to keep livestock, as can be seen from the abundance of small sheds, styes and stables in back gardens. The Village Hall was built in 1931 and management of the sportsfield was taken over by the village in 1935, with subsequent improvement to the facilities. ‘The Lawns’ area of the village originally formed part of the parkland associated with the Castle, and was probably used in medieval times as communal land for grazing and cultivation by serfs or tenants. During the Second World War, Slingsby was used as a training centre by the Army. Several buildings were taken over; for example, the Village Hall was turned into the Army canteen and officers’ horses were stabled in the Castle undercroft. The school took in 113 children evacuated from Hull, Hartlepool and Middlesbrough and they were billeted in local households.

Soldiers in High Street during World War II

11 Page 45 After the war, houses of a more modern style appeared in the village, such as the redbrick council houses in Balksyde and High Street. Since 1983, small estates of brick houses have been built (Sycamore Close, Aspen Way, Porch Farm Close) and infill development has taken place. Two caravan sites have been created. The village has not expanded its boundaries very much, except on the eastern side, but it has become more densely populated. The population in 2012 was estimated at 610 compared with 550 in 1996. Private ownership now exceeds Castle Howard Estate ownership in the village. South Holme and Fryton, while still relatively small, have also changed since the war with the construction of some council housing and, in the case of Fryton, some new private development with the conversion of redundant farm buildings.

The character of village housing

Slingsby is an estate village of Castle Howard, and the setting, context, materials and form of its houses reflect this and contribute to its modern character. The earliest surviving buildings in the village are the Castle, Wyville Hall and the Old Rectory. Most of the farmhouses and cottages were rebuilt in the 19th century by the Castle Howard Estate. This wave of rebuilding and ‘improvement’ created the essential character of the village as it survives today. The village houses are located in four main areas: High Street; the Village Green; Railway Street; and Balksyde, Sycamore Close and Aspen Way, which are modern 20th-century developments. The Green lies at the heart of the village layout, with its iconic maypole, School and Reading Rooms surrounded by a mix of 19th-century and later farms and houses, the Methodist Chapel and more recent developments such as Green Crescent. The buildings along High Street and Railway Street create attractive ribbons of housing with characteristic long garden plots, framing The Green and the area around the Castle and church.

High Street Railway Street

12 Page 46 Materials The majority of traditional houses in Slingsby are built of locally sourced Jurassic limestone. This stone is an attractive, warm white colour which reflects the changing light and muted palette of the North Yorkshire countryside. On the façades of buildings, the brick is usually coursed in blocks finished with ‘hammer-dressing’, with plainer stone dressings around windows and doors. Gable ends are often rubble and only roughly coursed. Traditionally, Slingsby’s buildings were pointed using lime mortar, which allows the stone to breathe and weather, but this has sadly been replaced on many buildings with dark grey cementitious pointing which has an adverse effect on its weathering and ability to breathe. Prospect House, The Green is a wonderful example of the beneficial impact of recent repointing using lime mortar.

Lime mortar pointing Cementitious pointing

Lime pointing at Prospect House

13 Page 47 Roofs Most roofs in Slingsby are of traditional curved red clay pantiles, with more recent additions weathering pleasingly to match the character of the old. A few houses, especially those built in brick in the 19th and early 20th century, were built with dark grey natural Welsh slate roofs. Several roofs of the larger farmhouses and even some cottages have gable copings which terminate in carved ‘kneeler’ stones.

Clay pantiles and stone Natural slate roof

Natural stone ‘kneeler’ Many roofs preserve cast iron half-round gutters and downpipes, usually painted dark brown or black and supported by small brackets. These define and enhance the roofline, building façade streetscape and their replacement by grey plastic modern alternatives is a disappointing, lower-quality alternative. In general, chimney stacks are located at the end of roofs and are of weathered hand-made or clamp-type brick, with a pleasing variety of red and cream chimney pots, many of which have been sensitively altered with guards/vents for log-burning fires. Inevitably, chimney stacks and roofs are also characterised by television aerials, although it should be noted that there are relatively few satellite dishes visible on houses in the older parts of the village.

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Chimney stack Downpipe

Utility fixtures and fittings In general, phone lines and cables are sensitively routed along the line of gutters, downpipes and around doorways. Other modern fixtures and fittings such as letter boxes, key boxes and alarm boxes, house signs and notices can be added/positioned in a manner that would not unduly detract from the building’s appearance or the street scene.

Windows Many 19th-century houses in Slingsby preserve original sash windows which are set back slightly from the wall face, with projecting stone sills and timber or stone lintels above. These can be straight or wedge-shaped, and some have keystones. Some windows, especially those at the rear of properties, are Yorkshire sliding sashes. Some unrestored windows preserve their original crown or plate glass. Internally, many of these windows used to have shutters. Dormer windows have been added to several houses, usually formed within the roof space with the effect of lowering the eaves level. These are traditionally not much wider than the glazed area, with leaded flat roofs or a simple pitched roof. Velux windows maximising loft space and solar panels are usually added to the rear of properties to minimise impact on the streetscape. In recent years, many windows have been replaced sensitively using traditional wooden frames with double glazing, which preserves the original form, relationship and visual aesthetic of the façade. However, some windows have been replaced with UPVC windows of modern character, set flush with the wall face, and use internal glazing bars (these sit between glass panes). These can be visually intrusive and adversely alter the character of the building itself, but also the street scene.

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Traditional sash window Yorkshire sliding sash

Modern sash window Modern sash window UPVC window

Doors Several 19th-century houses preserve their original wooden front doors, which are usually of a relatively simple four- or six-panel form. Some are half-glazed. Vertical board doors are also reasonably common. Simple divided lights above doors are most common. Original surviving door furniture includes small letter boxes and door knobs.

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Old front door New front door

Knockers, house numbers and signs are usually later additions. Porches are rare and mostly later additions. Modern replacements of doors and door furniture have become increasingly sympathetic to original designs. Although the use of UPVC and modern door designs in the modern housing developments in Slingsby is common, they can be visually intrusive and detract from the character of the streetscape in older areas of the village.

Porch Door of Dosser’s House

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Old door knob Old letter box

Outbuildings, barns and sheds A notable feature of many of the houses in Slingsby is their direct or near-direct entry from the street, and long garden plots running back from the street frontage behind these houses, containing the remnants of outhouses, barns, stables and orchards. This reflects the fact that traditionally most residents combined some form of industry or retail with small-scale farming. Whilst the outbuildings, barns, sheds and stables behind many houses are not necessarily aesthetically or architecturally significant, they are an important reminder of the mixed domestic, agricultural and industrial activities of Slingsby’s former residents. They are vulnerable to infill and encroachment, although there have been many sensitive and successful barn and outbuilding conversions which do not detract from this overall character.

Outbuildings in Railway Street

Property boundaries and gates

Throughout the village there is a mix of boundary treatment. Most 18th- and 19th-century houses on High Street, Railway Street and The Green open directly onto the street. Those

18 Page 52 that do not generally have traditional stone walls of varying heights forming frontage boundaries, and in some cases internal boundaries too. In a few cases the walls have been supplemented with hedges or metal rails; a good example of the latter can be found at Linden House on The Green. These traditional low-level features successfully define property boundaries but permit visual access into gateways and driveways. Recent replacements of cast iron railings and modern small wicket gates or traditional timber five-bar gates preserve this characteristic successfully. Wooden fencing is largely absent, except on the new housing estates. Rear boundaries on the eastern side of Railway Street adjacent to open countryside are mainly hedged interspersed with native trees, whilst those on the opposite side of the street are formed by a mixture of stone walls, buildings and mixed hedges. The modern development on Sycamore Close is in some instances open-plan or with hedge boundaries, many of low manicured beech. Aspen Way to the east of The Balk is completely open-plan.

Aspen Way looking west towards The Balk

Individual buildings in Slingsby

Listed buildings There are several prominent buildings in Slingsby which reflect the village’s changing architectural character.

Slingsby Castle Window detail on Slingsby Castle

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The Old Rectory All Saints Church

These three buildings create a distinctive group within the Conservation Area. Slingsby Castle is a nationally significant, 17th-century Grade II listed building set within a distinctive moated landscape. It is also a Scheduled Monument. It is unusual in that, although it is a castle, it contains Classical architectural features and was probably designed by one of the country’s first named architects, Robert Smythson, for the Cavendish family. It probably sits on the site of an earlier castle and is now ruinous. All Saints Church, Slingsby is a Grade II* listed building rebuilt 1867-69 by the architect R. J. Johnson for Castle Howard in sandstone, mimicking the late medieval ‘Perpendicular’ form of the earlier church, and incorporating limestone columns from this building in the interior and re-used ‘cross-slabs’ in the base of the tower. The Old Rectory is a Grade II listed building of the 18th century. It is an excellent example of Georgian architecture featuring a Classical façade, with well-preserved sash windows, doorway and an earlier range to the rear. Two other intriguing early buildings in the village are Wyville Hall and Wyville Cottage, which are thought to be 17th century in origin but appear to be on the site of the medieval Wyville Hall.

Wyville Hall and Wyville Cottage

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Buildings on the Green Several important buildings on the Green are Grade II listed. They include: The Wesleyan Methodist Church built in 1837 with a later addition of the late 19th century; The Reading Room built in the early-mid 19th century; The School and School House built in the mid-19th century.

Methodist Church Reading Room

School and School House

Other houses on The Green include Glebe Cottage, one of the village’s earliest cottages dating to the mid-late 18th century; Porch Farmhouse, an 18th-century building with 19th-century alterations and a re-used 17th-century frieze in the porch; Dosser’s House of the early 19th century whose doorway preserves a Tobacconist’s frieze with cartouches; and Linden House dating to c. 1840.

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Glebe Cottage Porch Farmhouse

Linden House Dosser’s House

Houses on High Street High Street preserves several 18th-century farmhouses, including Castle Farmhouse, a Grade II listed house of late 18th-century date; Castle House and Ivy Cottage, a pair of mid-late 18th- century houses; Grey Gables, an early-mid 19th-century farmhouse; Bransdale and Bag End cottages, built in the early 19th century; and slightly larger early 19th-century West Flatts Farmhouse.

Castle House and Ivy Cottage Cottages in High Street

22 Page 56

Bag End and Bransdale cottages Castle Farmhouse

Grey Gables Houses in Railway Street Railway Street preserves a mix of Grade II housing, including: Toby’s Cottage, a Grade II listed building which appears to be of early 19th-century date, encasing an earlier timber frame; mid-18th century examples such as Fern Cottage and Grange House; Wheatlands Farmhouse, a late 18th-century building; and Home Farmhouse of c.1830-40. There is also a row of four listed 19th-century cottages on the west side of Railway Street which preserve a variety of features and evidence of alteration.

Home Farm Fern Cottage All the listed buildings in Slingsby, South Holme and Fryton are named in Appendix B.

23 Page 57 Unlisted houses, industrial and commercial buildings There are many unlisted buildings in the village, which nevertheless contribute to its character. Some, such as Slingsby Hall and the Dower House, make distinctive architectural statements; others such as the late 19th and early 20th century estate cottages built by Castle Howard at the edge of The Green or the houses on The Lawns continue to preserve and enhance the essential vernacular character of the village. Some buildings, including The Grapes Inn (a Grade II listed building dating from the late 18th century, with earlier cellars), The Old Station, the Blacksmith’s Forge, and the former Co-Operative Store on Railway Street, and Prospect House and Castle Farm on High Street preserve evidence of the industrial and commercial life of the village in the past and present.

Slingsby Hall The Dower House

Estate house on The Green Prospect House, High Street

The Grapes Inn

24 Page 58 Landscape features

Slingsby lies on the northern edge of the Howardian Hills Area of Outstanding Natural Beauty (AONB), the southern part of the parish being within the AONB and consisting of typical rolling countryside clothed with a patchwork of blocks of commercial and native woodlands. The remaining agricultural land surrounding the village is a predominantly flat landscape of fields with hedged boundaries and hedgerow trees, some of the oldest oaks and ashes being over 200 years old. Within the village, although trees have not been historically planted along the original streets owing to the lack of space, there are numerous large mature trees throughout the old village gardens, especially those properties which date from the Victorian era and earlier, where specimens of beech, sycamore, maple, birch, lime, pine, cypress and yew have become prominent features locally. The long rear gardens of properties on the eastern side of Railway Street include numerous trees which, although not highly visible from the village street, are readily viewed along the public right of way to the east and from Green Dyke Lane. Many of these trees are within the Slingsby Conservation Area. In the gardens of the more recent development on Sycamore Close and Aspen Way ornament species of rowan, cherry, maple and birch planted in the 1970s, 80s and early 1990s are now maturing. Important groups of trees are to be found in the following locations: The Balk: a beautiful avenue of sycamores and horse chestnuts dating back to the end of the 18th or beginning of the 19th century are protected under the oldest Tree Preservation Order administered by Ryedale District Council, made in 1948 under the original Town & Country Planning Act. Over the years one or two of these trees have been lost along the western side of the avenue, but replacement trees planted in the 1970s and 1980s are maturing well.

The Balk looking north

25 Page 59 These trees are a strong landscape feature viewed from the eastern approach to the village and from Slingsby Bank to the south, forming a pleasant entrance into the village. They also provide an attractive backdrop to properties on Sycamore Close and are visually prominent from Aspen Way to the east, and when travelling south along Railway Street towards The Green.

The Balk from the eastern approach The Balk from the southern approach

In the garden of Wyville Hall there are two maturing copper beech trees, the more westerly tree being a fine specimen and protected by a Tree Preservation Order. On The Green, a group of five mature lime trees planted at the turn of the last century form a prominent feature in the centre of the village. These trees are periodically pollarded to keep them in check in their limited surroundings.

Lime trees on The Green On High Street looking north, the view of All Saints Church is dominated by a magnificent sycamore tree close to the western boundary wall of the churchyard. It was planted in the late 18th century and stands c.22 metres tall, and is one of the tallest trees in the village. Mature beech and horse chestnut also form a pleasant backdrop to the church from this viewpoint.

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Sycamore in the churchyard The large mature lime tree in the north-western corner of the churchyard dates back to the late 19th century and was probably planted about the same time the current church was built (1867-9). An avenue of Irish yews lines the footpath from the church gate to the church door. Owing to encroachment over the footpath the yews were heavily pruned at the end of 2013, and enclosed within locally made metal pyramidal frames which will form the new formal clipped shape of the yews as they regenerate.

Yew trees before pruning … ... and after The Old Rectory and several properties along The Lawns contain numerous mature trees, including beech, birch, horse chestnut, sycamore, lime and maple, plus several coniferous species such as yew and cypress.

27 Page 61 At the eastern end of Church Lane at the junction with Railway Street, a mature group of yews growing adjacent to the northern boundary of a property known as The Yews dominates this part of the lane, and forms a prominent feature when approaching the junction from the north along Railway Street. There is a tall mature lime tree adjacent to the eastern boundary wall of The Hall.

Lime tree at The Hall, Railway Street Further north along Railway Street, a mature yew and a large birch on the frontage of Burwood and another even larger yew at Brook House, all on the eastern side of the street, are prominent features. At the edge of the village, two mature weeping willows on the bank of Wath Beck dominate the skyline. The oldest tree in the parish is the Mowbray Oak, which stands in what was known as Priests Field to the north-west of Church Lane.

The Mowbray Oak

28 Page 62 This is a truly ancient tree which is completely hollow. The tree is referred to in the book entitled ‘Slingsby and Slingsby Castle’, published in 1904, written by the Rev. Walker, Rector of Slingsby at the time. In the book there is a photograph of the tree taken at that time – it does not look much different today. The author commented that the tree was said to be possibly 200 years old, but he felt that this was exaggerated and that the tree was probably nowhere near that age. However, more recent methods of calculating the age of old trees suggests that the tree is more likely to be around 450 years old, surviving fires in the late 19th century and more recently in the 1980s. Thankfully, the tree is in the ownership of a sympathetic owner, who allowed the District Council to fence it off in 2000 in accordance with the Woodland Trust’s recommendations. The fencing prevents grazing livestock from congregating under the tree and compacting the soil through trampling, as had been occurring at the time. The Mowbray Oak is protected under a Tree Preservation Order. The western boundary of this field also contains at least two veteran sycamores.

Wildlife, habitats and green infrastructure

Ryedale is predominantly a rural District and therefore most settlements within it are diverse in wildlife habitats. The Ryedale Biodiversity Action Plan focuses mainly on habitats and species associated either with farmland or semi-natural places which support a wide range of habitats and features of wildlife habitats and conservation interests. Slingsby parish is no exception to this and has several of these features, including the churchyard which contains veteran sycamore trees and the associated wildlife typical of such aged trees, and of course the Mowbray Oak, which supports fauna and flora dependent upon its existence. The network of old hedgerows throughout the parish provides a highway for all forms of wildlife from insects to birds, whilst Wath Beck, which passes along the north-western section of Slingsby and west to Fryton, harbours numerous waterborne inhabitants. Several species of bats are common in the area, especially in Slingsby Castle, and both they and their habitats are legally protected; Appendix D gives further advice. As well as natural features, the recently formed allotments at the northern end of Slingsby are contributing to the parish’s wildlife habitats and form an important habitat for declining birds, such as the song thrush and house sparrow. Finally, gardens filled with amenity planting and individual trees form important nesting sites for song birds and the food chain that supports them.

Public consultation

A survey of residents was carried out prior to the preparation of this Village Design Statement. Opinions were sought on: favourite/least favourite buildings, open spaces, streets, views and other features; the special characteristics that were particularly valued; and suggestions for changes and improvements. Details are contained in Appendix A.

29 Page 63 Guidelines for future development and property alterations in Slingsby, South Holme and Fryton

Landscape context and village character

 Important views and open spaces, as identified by the VDS survey and document, should be protected and not altered through insensitive and piecemeal ribbon development. New developments should retain and respect these important aspects of village character.  Important trees or groups of trees, as identified in this VDS document, should be preserved and properly maintained. New developments should enhance the streetscape and landscape setting using native species. Trees should not be planted in positions that obscure views of traditional stone frontages.  Slingsby has traditionally consisted of farms, alongside a mix of small-scale commercial, retail and residential properties. This diversity is an essential part of the village’s character. Non-domestic use of buildings should therefore be encouraged, where development proposals respect and contribute to the preservation of this character. Buildings

 Within the older parts of the village and particularly within the Conservation Area, new buildings should be built with traditional materials: limestone (source and type to be discussed on a case-by-case basis) with clay pantiles or slate roofs and sympathetic fenestration.  Alterations and maintenance of existing buildings should always seek to use traditional materials, such as lime mortar and clay pantiles, rather than modern alternatives which will not work with traditional materials.  Alterations and additions to existing buildings, including porches, extensions and conservatories, should respect their scale, and preserve and enhance their character, using traditional materials and forms of fenestration, doors and door furniture where appropriate. Roof lights and solar panels should be added sympathetically, preferably to the rear of houses. Cables on the front of houses should be kept to a minimum.  New housing schemes should seek to provide a mixture of additional houses, predominantly smaller and affordable homes and off-street parking to the rear. Forms of housing for which there is no architectural precedent in the village, such as three-storeys above ground level, should be avoided.  Developers are reminded to reduce reliance on fossil fuels. Slingsby, South Holme and Fryton are mainly dependent on oil as the primary means of energy, and therefore maximum efficiency in energy should be encouraged as a desirable objective.  Developers are also encouraged to incorporate measures which promote biodiversity.  Developers and householders should be aware of the possibility of the presence of bats and other protected species in their property. Bats and their habitats are protected by

30 Page 64 law and specialist advice must be sought if evidence of their presence is found. See Appendix D for further advice. Streetscapes and boundaries

 The Green and wide grass verges seen throughout Slingsby should be retained and maintained. Boundaries of traditional dry-stone walling should also be preserved and conserved.  Alterations to existing boundaries and new boundaries should use traditional forms and materials, such as low stone walls, pale fencing and railings, and hedges interspersed, to the rear of properties, with native trees.  Front gardens and driveways should use grass verges, flower beds, gravel or traditional sandstone paving which is sustainable and permeable.  Street lighting should be carefully designed to enhance the character of the streetscape and minimise light pollution. Security lights should be avoided, especially on the front of buildings.  Signage and street furniture should be appropriate to the traditional streetscape of the villages. Outbuildings

 Outbuildings are an important reminder of the agricultural and industrial activities of the villages in the past and enhance the character of houses and plots. Traditional masonry outbuildings should be maintained and where possible historic features such as chimneys, doors, and fixtures and fittings should be retained. Farm buildings

 Alterations to existing farm buildings and new farm buildings should use traditional materials and respect the scale and context of their setting. Services

 The current drainage and IT infrastructure of the villages is at capacity. Future developments should seek to enhance and increase capacity rather than overload existing services.  Road drains and ditches should be monitored and maintained to ensure that flooding of domestic properties is avoided.  The rural character of roads through the villages should be preserved with minimal street furniture, kerbing and road marking to avoid suburbanisation.  A well-designed bus shelter on The Green would be a useful amenity for elderly residents and young people who make regular use of the bus services in the village.

31 Page 65 Conclusion

This Village Design Statement highlights the important historical, architectural and landscape features of Slingsby, South Holme and Fryton which should be protected in future developments. It encourages good, sympathetic design for new housing and for extensions or alterations to existing buildings, using traditional or appropriate modern materials. It aims to preserve the local environment by the sensitive use of boundaries, street lighting and street furniture, and encourages the maintenance of significant features like The Green, the wide grass verges, Wath Beck, and the many important trees. It also urges that when planning future development due consideration is given to the long views which are so highly valued by residents. By following these guidelines the special character of Slingsby, South Holme and Fryton can be preserved for future generations.

Maypole dancing on The Green in Slingsby (Richard Flint Photography)

32 Page 66 Appendix A: Results of Public Consultation

A survey of residents was carried out prior to the preparation of this Village Design Statement. Opinions were sought on: favourite/least favourite buildings, open spaces, streets, views and other features; the special characteristics that were particularly valued; and suggestions for changes and improvements. The most liked buildings are centred around The Green and the older core of Slingsby village. The School and Reading Room, the Chapel and School Room, and Porch Farmhouse are the most popular, with the Castle and All Saints Church in close second place. The older stone buildings in the centre of the village are admired for their timeless character, although some are not liked where their character has been changed by using windows of modern design and alterations that are not in keeping. The Village Green and the sportsfield are the favourite open spaces. Also mentioned was the Mowbray Oak field and the west side of Railway Street where a weeping willow overhangs the stream. Railway Street is admired for its open feel and the way the stone houses are set back behind deep grass verges and footpaths. Railway Street was voted the favourite street, along with The Green and its old estate houses with their unusual stone features. Church Lane was mentioned by a few people because of its enclosed ‘mysterious’ feel and stone walls, and also the south end of the Lawns Road near the churchyard. There was, however, criticism of some of the open spaces in the village and many drew attention to the untidy and abandoned feel of Richardson’s former lorry yard at the top of High Street. Other blots on the landscape mentioned were Perry’s former coach yard in High Street (opposite the Castle) and the adjacent road near Castle House with many parked cars and commercial vehicles. Parts of the Castle Moat were also thought to be untidy. The view from The Sheep Walk looking northwards over the village is the most popular, but residents also like the views across the sportsfield from Slingsby and the view from Fryton towards the Castle, Church and Old Rectory. The views to the north-east and west from Railway Street were also mentioned.

Other features liked include the maypole, the trees on The Balk and the larger trees in the churchyard, the stone boundary walls to gardens and churchyard, the Mowbray Oak and the other ancient oak trees on The Lawns, the copper beeches near the village shop, the old pump near The Green, the church clock and the daffodils on the banks at the top of High Street and on The Balk. Criticism was made of the poor state of the telephone box, the potholes in the footpaths, particularly on Railway Street, and breaking down of verges by parked cars. The Village Green, the maypole and the old buildings around it are thought to be most important in giving Slingsby its special character, along with the estate cottages with their

33 Page 67 special details. The open feel of Railway Street is felt to be special along with its stone buildings which are thought to have a variety and timeless attractive character. Traditional stone outbuildings and stone boundary walls were also mentioned in the survey. In general Slingsby is appreciated for the fact that it appears still to be a working village with a good mix of people. Improvements or changes suggested in the consultation were as follows:

 Repair and maintain footpaths on Railway Street  Reduce speed of traffic approaching hump-backed bridge at north end of Railway Street  Improve drains on Railway Street  Maintain all roads better – repair potholes  Install brighter street lighting in Slingsby (some opposing views here as well)  Improve street lighting in Fryton – heritage type  Maintain Slingsby Castle better by cutting back trees and undergrowth, and improving the view  Repair and upgrade telephone box  Erect a bus shelter on The Green  Secure the future of the pub, The Grapes Inn [done]  Address the problem of derelict-looking and unoccupied houses  Install another dog waste bin near The Green  Restore the derelict barn on the main road  Address the issue of large vehicles parked outside Castle House, and make sure future planning applications for all new properties provide off-street parking  Remove parked cars from the streets generally  Allow some small business development  Improve muddy footpaths, eg the problem of horses churning up non-bridleway footpaths like at The Lawns  Install mains gas [beyond the scope of the VDS]

34 Page 68 Appendix B: Listed Buildings in Slingsby, South Holme and Fryton

Slingsby Bag End Grade II High Street, Slingsby, North Yorkshire Bransdale Grade II High Street, Slingsby, North Yorkshire Castle Farmhouse Grade II High Street, Slingsby, North Yorkshire Castle House/Ivy Cottage Grade II High Street, Slingsby, North Yorkshire Church of All Saints, Slingsby Grade II* Church Lane, Slingsby, North Yorkshire Dossers House Grade II The Green, Slingsby, North Yorkshire Fern Cottage Grade II Railway Street, Slingsby, North Yorkshire Glebe Cottage Grade II The Green, Slingsby, North Yorkshire Grange House Grade II Railway Street, Slingsby, North Yorkshire Grey Gables Grade II High Street, Slingsby, North Yorkshire Heights Farmhouse Grade II High Street, Slingsby, North Yorkshire Home Farmhouse Grade II Railway Street, Slingsby, North Yorkshire House immediately south of Goodlands Grade II Railway Street, Slingsby, North Yorkshire

35 Page 69 House immediately to the north of former Cooperative Stores Grade II Railway Street, Slingsby, North Yorkshire Laurel Cottage/Rose Cottage Grade II Railway Street, Slingsby, North Yorkshire Linden House and gate and railings to front Grade II Slingsby Mile Post at southern end of Balksyde Grade II Balksyde, Slingsby, North Yorkshire Porch Farmhouse and Cottage Grade II The Green, Slingsby, North Yorkshire Ruins of Slingsby Castle Grade II High Street, Slingsby, North Yorkshire Schoolhouse/Schoolroom Grade II The Green, Slingsby, North Yorkshire Slingsby Heights and gates and railings to front Grade II Malton Road, Slingsby, North Yorkshire The Cottage and three houses adjoining to north Grade II Railway Street, Slingsby, North Yorkshire The Grapes Inn Grade II Railway Street, Slingsby, North Yorkshire The Green Grade II The Green, Slingsby, North Yorkshire The Old Rectory Grade II Church Lane, Slingsby, North Yorkshire The Reading Room Grade II The Green, Slingsby, North Yorkshire Toby's Cottage Grade II Railway Street, Slingsby, North Yorkshire

36 Page 70 Tomb Chest commemorating members of the Markinfield Family approximately 3 metres to south of porch Grade II Church Lane, Slingsby, North Yorkshire Wesleyan Chapel and Hall Grade II The Green, Slingsby, North Yorkshire West Flatts Farmhouse Grade II Malton Road, Slingsby, North Yorkshire Wheatlands Farmhouse Grade II Railway Street, Slingsby, North Yorkshire Wyville Cottage/Wyville Hall Grade II Green Dyke Lane, Slingsby, North Yorkshire

South Holme

East Ness Bridge Grade II South Holme, North Yorkshire Manor Farmhouse Grade II South Holme, North Yorkshire West Farmhouse Grade II South Holme, North Yorkshire

Fryton

Barns to North Farm Grade II Fryton Lane, Fryton, North Yorkshire Brick Kiln at Brickyard Farm Grade II Fryton, North Yorkshire

37 Page 71 Cherrygarth Farmhouse Grade II Fryton Lane, Fryton, North Yorkshire West Farmhouse Grade II Fryton Lane, Fryton, North Yorkshire

38 Page 72 Appendix C: Conservation Areas

How is a Conservation Area designated?

Most Conservation Areas are designated by the Council as the local planning authority. English Heritage can designate Conservation Areas in London, following consultation with the Secretary of State for Culture, Media and Sport. The Secretary of State can also designate a Conservation Area in exceptional circumstances - usually where the area is of more than local interest.

What does designation mean?

Conservation Areas are defined in the Planning (Listed Building and Conservation Areas) Act 1990 as 'areas of special architectural or historic interest, the character or appearance of which it is desirable to preserve or enhance'. Conservation Areas are therefore those areas considered to have the most important environmental quality in the District.

The character of Conservation Areas is as varied as our landscape. In some parts of the country they include, for example, terraces of workers' cottages, inter-war housing developments, and formal urban squares. In Ryedale, however, the majority of Conservation Areas are small, rural settlements whose character is derived from the unique way in which the man-made elements (such as houses, cottages, walls, churches, farms and public buildings) of each settlement relate to each other and the natural framework of landscape features (such as village greens, becks, ponds, trees, hedges and distinctive topographical features).

What living in a Conservation Area means for residents

Property alterations

An area designated as a Conservation Area requires planning applications to be made for certain types of development which are elsewhere classified as permitted development. These extra controls are designed to preserve or enhance the character of the area and the quality of design. The Council can change the types of alterations that need permission by making Article 4 Directions. The regulations are complicated and subject to the planning history of the property; it is advisable to consult the Planning Department before you undertake any new work to see what is subject to the requirement for planning permission.

Whilst there are works which can be done in a Conservation Area without consent, it is important to remember that the character of an area is often the result of many small details.

39 Page 73 Also within Conservation Areas:

 Extra publicity is given to planning applications, with a general view to preserving or enhancing the area.  The display of advertisements may be more restricted.

The link below takes you to the Planning Portal, the Government’s planning website, where you can find more information about permitted development rights. You can also apply for planning permission online through the Planning Portal. http://www.planningportal.gov.uk

Trees

If you are thinking of cutting down a tree or doing any pruning work you must notify the Council six weeks in advance if the tree has a trunk diameter of 75mm or greater, measured at 1.5m from ground level. This is to give the Council time to assess the contribution the tree makes to the character of the Conservation Area and decide whether to make a Tree Preservation Order. A link to the appropriate form is attached below: http://www.ryedale.gov.uk/attachments/article/330/Application_for_tree_works_works_to _trees_subject_to_a_preservation_order_(TPO).pdf http://www.ryedale.gov.uk/attachments/article/330/Guidance_notes_for_works_to_trees. pdf http://www.ryedale.gov.uk/attachments/article/330/Advice_the_description_of_tree_work _nov_2012.pdf

40 Page 74

Appendix D: Bats

Developers and householders should be aware of the possibility of the presence of bats in their property. They are often tucked away in the soffit of a house, under the tiles or in the cavity wall. Although a roost may contain several hundred bats, an average maternity roost supports 30-100 individual females. Males mostly live individually, or in small groups. A maternity colony may use several roosting sites during the course of a summer, sometimes moving suddenly to a new location. In winter small numbers may be found hibernating in house soffits, crevices in old disused barns and miscellaneous other places. Although bats are generally very common in North Yorkshire, all bats and the places they live are protected by law. To minimise the risk of committing an offence you must stop work and seek advice. Call the National Bat Helpline on 0845 1300 228. They will either be able to give you advice over the phone or arrange for a local volunteer to visit the site to assess the situation.

41 Page 75 Appendix E: Planning Policy Documents

The Ryedale Plan is the Development Plan for the District outside of the National Park. A link to the Ryedale Plan is below: www.ryedaleplan.org.uk

The Ryedale Plan is made up a series of planning policy documents which guide development. For Slingsby the relevant documents are:

The Local Plan Strategy sets out the overall framework for how new development will be brought forward, and planning applications assessed. It identifies Slingsby as a Service Village where some development will be allocated.

Some of the policies in the Local Plan Strategy are listed below for ease of reference:

SP1 General Location of Development and Settlement Hierarchy SP2 Delivery and Distribution of Housing SP12 Heritage SP13 Landscapes SP14 Biodiversity SP15 Green Infrastructure Networks SP16 Design SP18 Renewable and Low Carbon Energy SP20 Generic Development Management Issues

The Local Plan Sites Document sets out the allocations and provides site-specific policies. This document is currently in production. Progress can be viewed at: http://www.ryedaleplan.org.uk/local-plan-sites

The Slingsby, South Holme and Fryton Village Design Statement is a Supplementary Planning Document. This does not create new policy, but is a locally specific amplification of the policies concerning design and heritage matters. It is a material consideration in the determination of a planning application, and where planning permission is not required, can provide informal guidance to those making alterations to their property.

42 Page 76 Appendix F: Bibliography and Websites

Bibliography

Fawcett, Bill: A History of the York-Scarborough Railway (Hutton Press Ltd, 1995) Girouard, Mark: Robert Smythson and the Architecture of the Elizabethan Era (Country Life, London, 1966) Girouard, Mark: Robert Smythson and the Elizabethan Country House (Yale University Press, 1983) Hartley, Marie and Ingilby, Joan: Life and Tradition in the Moorlands of North-East Yorkshire (Dalesman Publishing Co. Ltd., 1990) Howat, Patrick: The Railways of Ryedale and the Vale of Mowbray (Hendon Publishing Co., 1988) Mackinder, Margaret and Thompson, Michael (Ed.): The Parish of Slingsby: Its History and Wildlife (2000) Mawer, A. and Stenton, F.M. (Ed.): The Place Names of the North Riding of Yorkshire (English Place Names Society, 1979) Pevsner, Nikolaus: The Buildings of England: Yorkshire: The North Riding (Penguin Books, 1966) Royal Commission on the Historical Monuments of England: Houses of the North York Moors (HMSO, London, 1987) Saumarez Smith, Charles: The Building of Castle Howard (Faber and Faber, 1990)

Smith, Joseph: Memoir of Joseph Smith of South Holme (R.J.Smithson, Castlegate Printing Works, Malton, 1900) St. Clair Brooke, Arthur: Slingsby and Slingsby Castle (Methuen and Co., 1904) Walker, The Rev. William: Some Account of the Parish and Village of Slingsby in Yorkshire (York, 1845) Wenham, L. Peter: Derventio [Malton]: Roman Fort and Civilian Settlement (Cameo Books, 1974)

43 Page 77 Websites

North Yorkshire and York Landscape Character Assessment: http://www.northyorks.gov.uk/article/25431/Landscapecharacter-assessment

National Character Area profiles for the Howardian Hills and the Vale of Pickering: http://publications.naturalengland.org.uk/publication/5370931?category=587130 (Howardian Hills) http://publications.naturalengland.org.uk/publication/3688500?category=587130 (Vale of Pickering) North Yorkshire and Lower Tees Valley Historic Landscape Characterisation: http://www.northyorks.gov.uk/article/23822/Historic-landscape-characterisation

Historic England’s Statement of Significance for the Vale of Pickering: http://www.ryedaleplan.org.uk/local-plan-strategy/local-plan-strategy-examination/211-te51-vale- of-pickering-statement-of-significance-english-heritage-with-partners-2011

For further information about Slingsby, South Holme and Fryton and local events, visit www.slingsbyvillage.co.uk

44 Page 78

Appendix G: Acknowledgements

Text

Carolyn Boots John Clayton Kate Giles Margaret Mackinder

Photographs

Steve Allen Photography Jon Boots John Clayton Richard Flint Photography Kate Giles The Wormald Collection

Thanks also to Rachael Balmer and Emma Woodland at Ryedale District Council for their comments and advice, and to Sophie Mackinder for proof-reading.

45 Page 79 Appendix H: Maps

Slingsby and Fryton

46 Page 80

South Holme

47 Page 81

[BACK COVER]

Slingsby Castle

48 Page 82

SLINGSBY, SOUTH HOLME AND FRYTON VILLAGE DESIGN STATEMENT SUPPLEMENTARY PLANNING DOCUMENT

STATMENT OF CONSULTATION A draft of the VDS was subject to public consultation as a draft Supplementary Planning Document between 18 April and 30 May 2016. Documents were available on deposit at the Council's Offices, and were on the Council's web site. Due to the localised, and specific nature of the document, the following organisations were consulted: Members of the general public on the Council's Forward Planning Consultation Database who have an address in Slingsby, South Holme or Fryton ; All Agents/Developers on the Council's Forward Planning Consultation Database; Natural England; Page 83 Page Historic England; North Yorkshire County Council; Castle Howard Estate; Slingsby South Holme and Fryton Parish Council; Adjacent Parish Councils to the above parish;

Howardian Hills Area of Outstanding Natural Beauty Management; and Agenda Item 11 Landowners/site submitters of sites for inclusion as allocations in the forthcoming Local Plan Sites Document.

As a result of that consultation: Comments from Historic England, Natural England, The Howardian Hills AONB Manager and North Yorkshire County Council were received.

1

Comments Comments Response received from

Historic England Does not wish to comment on the document, but Noted. would welcome confirmation of its adoption in due course.

Howardian Hills 1. The VDS is comprehensive and well-written in 1. Noted. AONB an easy to understand style.

2. Categorisation of the predominant building 2. It is acknowledged that it should be Jurassic limestone in the Materials stone type as Magnesian limestone is queried. section (p.13) and this has been amended. In the Guidelines for Buildings

Page 84 Page Magnesian limestone is found in a ridge (p.30 1st bullet point), the word “magnesian” has been deleted and after running down the western side of the Vale of “limestone” the following words have been added: “(source and type to be York, for example in the Tadcaster area, discussed on a case-by-case basis)”. whilst the limestone quarried from the Howardian Hills is Jurassic limestone. It may be that new houses are using Magnesian limestone, due to it being the nearest available match and also the lack of local quarries, but the technical details need to be correct in order to steer future planning applications.

2

Comments Comments Response received from

North Yorkshire 1. Add the following documents to the 1. Links to these documents have been added to Appendix F (Bibliography County Council bibliography: and Websites). Historic England’s Statement of Significance for the Vale of Pickering has also been added. a. North Yorkshire and York Landscape Character Assessment: this includes generic guidance for the landscape character types that occur within the three parishes (Limestone Ridge ie the area within the Howardian Hills, and Enclosed Vale Farmland ie the area within the Vale of Pickering);

b. National Character Area profiles for the Howardian Hills and the Vale of Pickering: Page 85 Page these include analysis of landscape change and ‘Statements of Environmental Opportunity’, some of which may be relevant;

c. North Yorkshire and Lower Tees Valley Historic Landscape Characterisation.

2. The Castle Howard designed landscape is 2. It is considered that there are no views in or out of the RPG which Grade 1 on the Historic England Register of development in Slingsby could affect, due to the undulating topography Parks and Gardens (RPG). Consider whether within the wider context of a prevailing decrease in elevation between the there are any views from the Castle Howard RPG and Slingsby. avenue or from anywhere else in the registered park that need to be taken into account.

3. A location map should be provided showing 3. The maps in Appendix H are considered adequate to show the location the context and the extent of the area that the and context of the villages, but the Introduction to the document has been VDS applies to. This will help to clarify if it is amended to clarify the extent of the area covered by the VDS. The the full extent of the three parishes, or just the boundary of the Slingsby Conservation Area is marked on the Slingsby 3

villages. It would also be helpful to indicate and Fryton map in Appendix H. any Conservation Area boundaries.

Comments Comments Response received from

Natural England 1. Consider making provision for Green 1. The Ryedale Plan – Local Plan Strategy was adopted post NPPF and has Infrastructure within development. a policy on the provision, enhancement and protection of green infrastructure (Policy SP15). That policy also indicates that the production of a District-wide Green Infrastructure Strategy will take place, but the Council is focusing on the site allocations.

The VDS does actually refer to elements of green infrastructure in the section on Wildlife and Habitats (p.29), but this has been made clearer by amending the heading to read “Wildlife, Habitats and Green Infrastructure”. Page 86 Page The settlements of Slingsby, South Holme and Fryton are historic, rural settlements, where the palette of construction materials is primarily locally-derived, and traditional construction techniques used. Whilst the use of green roof systems, roof gardens and green walls is clearly a positive biodiversity feature, such features are more suitable to flat/monopitch roofs to be developed on modern buildings, particularly within an urban context. They are very unlikely within existing buildings of stone/brick construction with pitched roofs, or individual dwellings. New tree planting, and the retention of established mature trees, is an attribute of green infrastructure which is referred to in the document.

Protection of natural resources including air quality, ground and surface water and soils is a policy principle, which is considered in Policy SP17 of the post NPPF adopted Ryedale Plan – Local Plan Strategy.

4

Comments Comments Response received from

2. Biodiversity enhancement: Consider incorporating 2. This is covered in the Wildlife, Habitats and Green Infrastructure section (p.29), features which are beneficial to wildlife within in the Guidelines for Development concerning buildings (page 30) and in development eg bat roosts or bird box provision. Appendix D on the protection of bats. To emphasise the point, however, an additional provision has been included in the Guidelines (page 30) to read “Developers are also encouraged to incorporate measures which promote biodiversity”. The guidance on bats in the same section has been supplemented by adding the words “and other protected species”.

3. Landscape enhancement: Consider opportunities 3. Policies around the sustainable use of natural resources and green infrastructure to enhance the character and local distinctiveness are already part of the Ryedale Plan – Local Plan Strategy. of the surrounding natural and built environment; The VDS now refers to existing studies which have looked at Landscape use natural resources more sustainably; and bring Characterisation (Appendix F – Bibliography and Websites) in response to NYCC Page 87 Page benefits for the local community, eg through comment 1. green infrastructure provision and access to and contact with nature.

4. It may be appropriate to seek that, where viable, 4. The Local Planning Authority would have concerns with this example relating to trees should be of a species capable of growth to trees. It is part of Slingsby’s character that the roofscape is glimpsed from other exceed building height and managed so to do, and areas of higher elevation, and that an approach which uses trees to effectively where mature trees are retained on site provision screen development does not allow those developments to be assimilated into is made for succession planting so that new trees the surroundings. Trees planted within the context of providing landscaping for will be well established by the time mature trees a development should be a mixture of heights and species, which are reflective die. of existing species in the locality, to provide softening, visual contrast and seasonal change. This should also be undertaken in a manner which considers the long-term implications of the trees as they gain in stature for the amenity of residents and the community. It is also not advisable to plant a replacement tree until the original specimen has been lost and removed, otherwise they will be in competition, and this would be to the detriment of both trees, and general amenity.

5

Comments Comments Response received from

5. Other design principles could be considered, 5. The VDS provides locally-specific amplification of policies established within the including the impacts of lighting on landscape and Development Plan, the Ryedale Plan – Local Plan Strategy, which was adopted biodiversity. post NPPF. The VDS Guidelines do refer to lighting and its impacts on the village character (p.31) and promote biodiversity (as mentioned above).

6. Consider the need for a Strategic Environmental 6. The Local Planning Authority will incorporate into the Statement of Matters that Assessment/Habitats Regulations Assessment. it considers that the Slingsby, South Holme and Fryton Village Design Statement is a document which should not be subject to Strategic Environment Assessment. The document has a very specific scope, covering three rural settlements, and provides guidance on important design attributes of the settlements, and matters to consider in development proposals. It does not in itself identify any form of development to be undertaken within those Page 88 Page settlements. The adoption of this Village Design Statement would provide local amplification of policies in the established Development Plan which has been subject to SEA/SA.

The Local Planning Authority will incorporate into the Statement of Matters that it considers that the Slingsby, South Holme and Fryton Village Design Statement is a document which does not require a Habitats Regulations Assessment to be undertaken for the following reasons:  This is a Village Design Statement, which does not identify or promote particular sites or forms of development. It provides design context and awareness;  It is only applied within the context of the Development Plan which has been subjected to SA/SEA and the Habitat Regulations Assessment;  No sites which are of international significance for biodiversity are within less than 8.8km from Slingsby, South Holme and Fryton.

On that basis application of this Village Design Statement would have no effects on the conservation objectives of Natura 2000 sites (Special Area of Conservation/Special Protection Area sites).

6

Agenda Item 11

Supplementary Planning Document- Statement of Matters

Slingsby, South Holme and Fryton Village Design Statement Supplementary Planning Document (SPD)

The Local Planning Authority undertook consultation on the above mentioned Village Design Statement as a draft SPD between Monday 18 April 2016 and Monday 30 May 2016.

Slingsby, South Holme and Fryton Village Design Statement is relevant in the determination of planning applications only in the parishes of: Slingsby, South Holme and Fryton.

Supplementary Planning Documents (SPDs) supplement, and provide amplification to policies established within the Development Plan. For Ryedale District outside the National Park, this is the Ryedale Plan- Local Plan Strategy. SPDs are part of the Development Plan, and accordingly have full weight in the consideration of planning applications.

The Draft Slingsby, South Holme and Fryton Village Design Statement Supplementary Planning Document is divided into themes. It provides historical content, and the settlement's evolution to present day. The document:  Considers the setting of the village in the countryside, including important views in and around the settlement;  Describes and defines the layout of the village- and areas of differing character;  Provides details of the houses which create the special character of the village;  Describes views, setting and features through maps and photos;  Discusses features such as materials, roofs, utility fixtures and fittings, windows, doors, outbuildings (barns and sheds), property boundaries and gates;  Identifies: Landscape features and important trees and wildlife and habitats; and  Provides guidelines for future development and property alterations.

In summary, it seeks to achieve the following:

 Identify features which should be protected/preserved;  Identify changes which could be harmful to the village's character; and  Help to guide new developments and alterations to existing buildings.

The aim is provide a locally-specific context to considering how new development and alterations can contribute to ensuring that Slingsby remains the attractive and valued village it is today, and that in Fryton and South Holme any new development is sensitive to its surroundings.

Page 89 The Village Design Statement, a Statement of Consultation, and a Statement of SPD matters is available to view at the website: http://www.ryedaleplan.org.uk/other-documents/supplementary-planning-documents/9- supplementary-planning-documents

Slingsby, South Holme and Fryton Village Design Statement is a document which should not be subject to Strategic Environment Assessment. The document has a very specific scope, covering three rural settlements, and provides guidance on important design attributes of the settlements, and matters to consider in development proposals. It does not in itself identify any form of development to be undertaken within those settlements. The adoption of this Village Design Statement would provide local amplification of policies in the established Development Plan which has been subject to SEA/SA.

Slingsby, South Holme and Fryton Village Design Statement is a document which does not require a Habitats Regulations Assessment to be undertaken for the following reasons:  This is a Village Design Statement, which does not identify or promote particular sites or forms of development. It provides design context and awareness;

 It is only applied within the context of the Development Plan which has been subjected to SA/SEA and the Habitat Regulations Assessment; and

 No sites which are of international significance for biodiversity are within less than 8.8km from Slingsby, South Holme and Fryton.

On that basis application of this Village Design Statement would have no effects on the conservation objectives of Natura 2000 sites (Special Area of Conservation/Special Protection Area sites).

Page 90 Agenda Item 11

REPORT TO: FULL COUNCIL

DATE: 1 SEPTEMBER 2016

SUBJECT: PART ‘B’ REFERRALS FROM OVERVIEW AND SCRUTINY COMMITTEE ON 28 JULY 2016

22 Counter Fraud Policy and Anti Money Laundering Policy

Considered the report of the Finance Manager (s151).

Recommendation

That the updated Counter Fraud and Corruption Policy and Anti Money Laundering Policy be referred to Full Council with a recommendation for approval.

Council Page 91 1 September 2016 This page is intentionally left blank Agenda Item 11

REPORT TO: OVERVIEW AND SCRUTINY COMMITTEE

DATE: 28 July 2016

REPORT OF THE: FINANCE MANAGER (s151) PETER JOHNSON

TITLE OF REPORT: COUNTER FRAUD POLICY AND ANTI MONEY LAUNDERING POLICY

WARDS AFFECTED: ALL

EXECUTIVE SUMMARY

1.0 PURPOSE OF REPORT

1.1. The report sets out a new anti money laundering policy and an updated counter fraud and corruption policy.

2.0 RECOMMENDATION(S)

2.1 Members are asked to recommend to Council approval of the updated counter fraud and corruption policy and anti money laundering policy.

3.0 REASON FOR RECOMMENDATION(S)

3.1 To help ensure the council maintains robust counter fraud arrangements.

4.0 SIGNIFICANT RISKS

4.1 The risk of fraud against public bodies is growing. It is essential that the council maintains up to date counter fraud arrangements to minimise financial losses and safeguard public money.

5.0 POLICY CONTEXT AND CONSULTATION

5.1 Seeking to minimise losses from fraud helps to ensure that resources are directed to delivering services and supports the achievement of overall council aims.

6.0 REPORT DETAILS

6.1 Overall council counter fraud and corruption arrangements have not been reviewed for a number of years. In this time, there has been a significant change in the fraud risks affecting local authorities. For example the use of technology and opening up of council data has led to an increase in attacks on council payment systems. And recent high profile attacks on IT systems using “ransom ware” have highlighted further risks. More generally, there has been a growing awareness of fraud risks in

OVERVIEW AND SCRUTINY COMMITTEE 28 July 2016 Page 93 the public sector. This has led to the publication of updated guidance for local authorities including the Chartered Institute of Public Finance and Accountancy’s Code of Practice on managing the Risks of Fraud and Corruption.

6.2 An updated version of the counter fraud and corruption policy is included at appendix 1. This sets out responsibilities for counter fraud and investigation work and the actions the council will take in response to fraud. The policy reflects current arrangements following the transfer of benefit fraud investigation to the DWP in March 2016. An updated version of the councils counter fraud and corruption prosecution policy has also been prepared and is included as an appendix to the counter fraud and corruption policy.

6.3 It is important that the council recognises the potential for criminals to use its services for money laundering. The proposed anti money laundering policy at appendix 2 sets out the council’s responsibilities in respect of the Proceeds of Crime Act 2002 and Money Laundering Regulations 2007.

7.0 IMPLICATIONS

7.1 The following implications have been identified: a) Financial None b) Legal None c) Other (Equalities, Staffing, Planning, Health & Safety, Environmental, Crime & Disorder) None

Peter Johnson Finance Manager (s151)

Author: Jonathan Dodsworth, Counter Fraud Manager, Veritau Limited Telephone No: 01904 552947 E-Mail Address: [email protected]

Background Papers:  Fighting Fraud & Corruption Locally - The local government counter fraud and corruption strategy 2016 - 2019)  The Code of Practice on Managing the Risks of Fraud and Corruption (Cipfa 2014).

Appendices: Appendix 1: Counter Fraud and Corruption Policy, incorporating the counter fraud and corruption prosecution policy. Appendix 2: Anti Money laundering Policy

OVERVIEW AND SCRUTINY COMMITTEE 28 July 2016 Page 94 Agenda Item 11

Appendix 1

COUNTER FRAUD POLICY

Page 95 1 Introduction

1.1 All organisations are at increasing risk of fraud and corruption. Some commentators estimate that annual fraud losses to local government in the UK could be £7.3 billion. It is therefore a risk that the council cannot and should not ignore.

1.2 Any fraud committed against the council effectively constitutes a theft of taxpayer’s money. It is unlawful and deprives the council of resources which should be available to provide services to the public. By putting in place effective measures to counter the risk of fraud and corruption the council can reduce losses which impact on service delivery as a contribution to the achievement of overall council priorities.

1.3 This document sets out the council’s policy in relation to fraud and corruption perpetrated against it, and its overall arrangements for preventing and detecting fraud. It includes the fraud and corruption prosecution policy contained in Appendix A. It forms part of the council’s overall policy framework for combating fraud and corruption and should be read in conjunction with the counter fraud strategy, constitution, the financial regulations, contract procedure rules, the whistleblowing policy, anti-money laundering policy and disciplinary procedures.

2 Definitions and Scope

2.1 For the purpose of this policy, the term fraud is used broadly to encompass:

 acts which would fall under the definition in the Fraud Act (2006)  anything which may be deemed fraudulent in accordance with the generally held view of fraud as causing loss or making a gain at the expense of someone by deception and dishonest means  any offences which fall under the Social Security Administration Act (1992) and the Council Tax Reduction Schemes Regulations (2013)  any act of bribery or corruption including specific offences covered by the Bribery Act (2010)  acts of theft  any other irregularity which is to the detriment of the council whether financially or otherwise, or by which someone gains benefit they are not entitled to.

2.2 This policy does not cover fraud or corruption against third parties, except where there may be an impact on the service provided by the council. In addition, it does not cover other acts – for example offences involving violence - which may affect the council, and which should in most cases be reported directly to the police.

Page 96 3 Principles

3.1 The council will not tolerate fraud or corruption in the administration of its responsibilities, whether perpetrated by members, officers, customers of its services, third party organisations contracting with it to provide goods and/or services, or other agencies with which it has any business dealings. There is a basic expectation that members, employees, and contractors’ staff will act with integrity and with due regard to matters of probity and propriety, the requirement to act lawfully and comply with all rules, procedures and practices set out in legislation, the constitution, the council’s policy framework, and all relevant professional and other codes of practice.

3.2 The council will seek to assess its exposure to risks of fraud and corruption. It will prioritise resources available to prevent and deter fraud in order to minimise this risk.

3.3 The council will consider any allegation or suspicion of fraud seriously, from whatever source, and if appropriate will undertake an investigation to confirm whether fraud has occurred and determine the appropriate outcome. Any investigation will be proportionate. The council may refer any incident of suspected fraud to the police or other agencies for investigation, if appropriate.

3.4 To act as a deterrent, the council will take action in all cases where fraud (or an attempt to commit fraud) is proved, in proportion to the act committed. This may include prosecution, application of internal disciplinary procedures, or any other action deemed appropriate to the offence (for example referral to a professional body). Prosecution decisions will be made in accordance with the fraud and corruption prosecution policy (Appendix A).

3.5 As a further deterrent, and to minimise losses, the council will attempt to recover any losses incurred through civil or legal action. In addition, the council will seek to apply any appropriate fines or penalties, and recover any costs incurred in investigating and prosecuting cases.

4 Responsibilities

4.1 Overall responsibility for this policy rests with the council’s Finance Manager (section 151 officer) on behalf of the council in accordance with the council’s constitution.

4.2 The Overview and Scrutiny Committee has a responsibility to provide advice to the council on issues arising out of fraud investigations and to report any remedial or preventative action that has or which ought to be taken by the council

Page 97 in relation to such matters. It also monitors the application of council policies on whistle-blowing and counter fraud & corruption and can consider any matter referred to it in accordance with the council’s whistle-blowing policy and procedures.

4.3 The Senior Management Team (SMT) has a responsibility for ensuring that the council has effective fraud and corruption procedures embedded across the organisation that comply with best practice and good governance standards and requirements.

4.4 Veritau (who provide internal audit and counter fraud services to the council) is responsible for reviewing the council’s counter fraud and corruption policies on a regular basis and for recommending any required changes to those policies. In addition, Veritau leads on fraud prevention and detection issues for the council and is responsible for investigating suspected cases of fraud or corruption. The internal audit team carries out audit work to ensure that systems of control are operating effectively, which contributes to the reduction in opportunities for committing fraud. The Head of Internal Audit is required to report his/her professional opinion on the council’s control environment to members of the Overview and Scrutiny Committee on an annual basis in accordance with proper practice.

4.5 The council’s Finance Manager as chief financial officer is required to ensure the council has appropriate systems of control in place to prevent and detect fraud. All senior managers have a responsibility for preventing and detecting fraud within their service areas. This includes maintenance of effective systems of internal control and ensuring that any weaknesses identified through the work of internal audit or by other means are addressed promptly.

4.6 The council’s Finance Manager (section 151 officer) is the council’s nominated officer for the purposes of the Money Laundering Regulations (2007), and has a statutory responsibility for reporting any issues referred in this capacity.

4.7 All staff have a general responsibility to be aware of the possibility of fraud and corruption, and to report any suspicions that they may have to Veritau. Where appropriate, staff may use the whistleblowing policy to raise concerns anonymously.

4.8 Officers within human resources have a responsibility to support service departments in undertaking any necessary disciplinary process after consultation and initial investigation, where appropriate, by Veritau.

Page 98 5 Overall Counter Fraud Arrangements

Introduction

5.1 The purpose of this section is to set out the council’s overall framework for countering the risk of fraud and corruption. While the council aims to follow best practice in relation to counter fraud activity1, it recognises that new and emerging fraud risks will require a dynamic approach to fraud prevention and detection.

Measurement

5.2 The council will assess the potential risks and losses due to fraud and corruption, and will use these to prioritise counter fraud activity, and review the resources available to counter those risks. The review will include an assessment of actual levels of fraud2 and the effectiveness of counter fraud activity in reducing losses. The outcome of this review will be reported to the Overview and Scrutiny Committee on an annual basis as part of the audit and fraud planning cycle.

Culture

5.3 The council will promote a culture whereby all staff, members, service users, and contractors are aware that fraud or corruption in any form is unacceptable. To do this, it will:

 ensure that there are clear arrangements in place for reporting suspicions about potential fraud or corruption, whether that be by staff, council members, partners, stakeholders, contractors or members of the public;

 investigate reported suspicions and where evidence of fraud or corruption is found will prosecute where appropriate and take any other action necessary in accordance with the financial regulations, contract procedure rules, fraud and corruption prosecution policy, disciplinary procedures, members code of conduct, or any relevant legislation or guidance;

 ensure that the consequences of committing fraud and/or partaking in corrupt practices are widely publicised.

1 For example the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption. 2 All suspected fraud should be reported to Veritau. A record of all such information will be maintained on a confidential basis.

Page 99 Prevention and Detection

Controls

5.4 As part of its ongoing operating procedures, the council seeks to ensure that proper systems of internal control are in place. This includes controls to directly prevent and detect fraud, such as separation of duties and management review, along with other procedures such as vetting as part of recruitment processes and systems for declaration of interests and gifts and hospitality. The effectiveness of systems of control are monitored and a formal report is made as part of the process for preparing the annual governance statement. The council maintains a system of internal audit to provide independent review of control systems on an ongoing basis, in accordance with a risk assessment.

5.5 Services will be encouraged to consider the risk of fraud as part of the council’s risk management process. Any information on risks identified will be used to inform the annual review of counter fraud activity.

Proactive Work

5.6 The council will carry out targeted project work (for example data matching exercises) to identify fraud and corruption in known high risk areas. This work will be carried out by Veritau as part of its annual workplan. Work will be prioritised based on a risk assessment as part of the annual review of counter fraud activity. Work may include joint exercises with other agencies, including other local councils.

5.7 The council will take part in projects led by other agencies such as the Cabinet Office and the DWP to identify potential fraud e.g. the National Fraud Initiative and HBMS Data Matching Service. Resources will be allocated to follow up all data matches as part of audit and fraud workplans. Veritau will work with service departments to ensure that they are aware of the need to include notices to service users stating that any data held may be subject to use for data matching purposes.

Relationships

5.8 The council has established relationships with a number of other agencies. It will continue to develop these relationships and develop new ones to further the prevention and detection of fraud. Organisations which the council will work with include:

 the police  the courts  the Cabinet Office

Page 100  the Department for Communities and Local Government  the Department for Works and Pensions  other councils  community groups

5.9 Veritau will work with council departments to ensure that systems for reporting and investigating suspected fraud and corruption are robust.

Fraud Awareness Training

5.10 As part of its annual workplan, Veritau will provide targeted fraud awareness training to specific groups of staff, based on its annual risk assessment.

Investigation

5.11 All suspected cases of fraud, corruption, theft or other irregularity will be investigated. The nature of each investigation will depend on the circumstances of each case. Veritau will act as a first port of call for any suspected fraud and will provide advice on whether other agencies should be notified (eg the police). Veritau will determine the extent of the investigation to be carried out in consultation with the Finance Manager (s151), service departments and human resources. Where necessary, Veritau may refer cases to other agencies (for example the police) at the discretion of the Head of Internal Audit.

5.12 All staff involved in the investigation of fraud will be appropriately trained. They will be required to comply with any relevant legislation and codes of practice. For example the Police and Criminal Evidence Act (PACE), Regulation of Investigatory Powers Act (RIPA), the Data Protection Act, and the Criminal Procedures Investigations Act (CPIA). Investigators will take into account the individual circumstances of anyone involved in an investigation and adjustments to procedure will be made where necessary to ensure that all parties are treated equitably (where it is appropriate and reasonable to do so).

5.13 As part of the outcome of every investigation, a review of any weaknesses in control will be made and if necessary recommendations will be made to address any issues identified. These will be set out in a formal report to the managers of the service concerned, and will be followed up to ensure the issues are addressed.

5.14 The Head of Internal Audit will ensure that systems for investigating fraud are reviewed on an ongoing basis, to ensure that they remain up to date and comply with good practice.

Page 101 Publicity

5.15 The council will publicise all successful prosecutions undertaken either by itself or by partner organisations, to act as a deterrent against future fraud.

5.16 In addition, where appropriate, targeted publicity will be used to raise the awareness of fraud to staff, members, the public, and other agencies. This will consist of both internal and external publicity and will aim to:

 raise awareness about potential fraud and ensure all stakeholders are alert to the possibilities of fraud;  inform all stakeholders of the procedures to be followed if they have suspicions of fraud;  ensure that all stakeholders are aware that the council will not tolerate fraud and the consequences of committing fraud against it.

Recovery of Monies

5.17 Where any loss has been incurred by the council or additional costs have been incurred as a result of fraud or corruption, the council will seek to recover these from the individual or organisation concerned. This will help to ensure that the financial impact of fraud on the council is minimised and act as a deterrent. As a further deterrent, the council will seek to levy any appropriate fines or penalties where it is possible and desirable to do so.

5.18 Methods of recovery may include (but are not limited to):

 recovery from assets held by the organisation or individual (using the Proceeds of Crime Act or any other relevant legislation);  bankruptcy where appropriate;  recovery from future salary payments if an individual remains an employee of the council;  recovery of pension contributions from employees or members who are members of the North Yorkshire Pension Fund.

6 Monitoring & Review Arrangements

6.1 The arrangements set out in this policy document will be reviewed on an annual basis as part of the audit and fraud planning cycle and will include the fraud and corruption prosecution policy (Appendix A) and other related guidance. Veritau will work with other departments to ensure that other related guidance and policy (such as the whistleblowing policy) are reviewed on a regular basis and any amendments or necessary changes are reported to members for approval.

LAST REVIEWED AND UPDATED: 28 July 2016

Page 102 Appendix A

FRAUD AND CORRUPTION PROSECUTION POLICY

Page 103 1 Scope and Purpose

1.1 The fraud and corruption prosecution policy forms part of the council’s overall counter-fraud and corruption strategy. The policy covers all acts, and/or attempted acts, of fraud or corruption committed by officers or members of the council, or committed by members of the public, or other organisations or their employees, against the council.

1.2 The policy sets out the circumstances in which the council will take legal action against the perpetrators of fraud or corruption. It also sets out the circumstances when it is appropriate to consider alternative courses of action such as offering a caution. The policy does not cover internal disciplinary procedures which are the subject of the council’s separate disciplinary policy and procedures.

1.3 This policy should be read in conjunction with the council’s constitution, financial regulations, contract procedure rules, the counter fraud and corruption policy and the strategy, the whistleblowing policy and the council’s disciplinary policy and procedures.

1.4 The policy contains specific guidelines for determining the most appropriate course of action when fraud has been identified. Offences other than fraud and corruption (for example those relevant to the enforcement of regulations) are dealt with by the appropriate service departments under other policies and relying on specific legal powers.

2 Principles

2.1 The council is committed to an effective anti-fraud and corruption strategy. The strategy is designed to encourage the prevention and detection of fraud and corruption. As part of the strategy the council is also committed to taking appropriate action against anyone believed to have attempted and/or committed a fraudulent or corrupt act against it. The council considers that those guilty of fraud or corruption must take responsibility for their actions before the courts.

2.2 The policy is designed to ensure that the council acts fairly and consistently when determining what action to take against the perpetrators of fraud or corruption.

2.3 Staff and members who are found to have committed fraud or corruption may be prosecuted in addition to such other action(s) that the council may decide to take, including disciplinary proceedings in the case of staff and referral to the relevant officer or body in the case of members. Any decision not to prosecute a member of staff for fraud and corruption does not preclude remedial action being taken by the relevant director(s)

Page 104 in accordance with the council’s disciplinary procedures or other policies.

2.4 This Policy is also designed to be consistent with council policies on equalities. The council will be sensitive to the circumstances of each case and the nature of the crime when considering whether to prosecute or not.

2.5 The consistent application of the policy will provide a means for ensuring that those who have perpetrated fraud and corruption are appropriately penalised. It will also act as a meaningful deterrent to those who are contemplating committing fraud or corruption. The council recognises the deterrent value of good publicity and therefore information regarding successful prosecutions and sanctions will be made public.

2.6 Any decision taken by an authorised officer to prosecute an individual or to offer a formal sanction will be recorded in writing. The reason for the decision being taken will also be recorded.

2.7 Irrespective of the action taken to prosecute the perpetrators of fraud and corruption, the council will take whatever steps necessary to recover any losses incurred, including taking action in the civil courts.

3 Prosecution

3.1 The policy is intended to ensure the successful prosecution of offenders in court. However, not every contravention of the law should be considered for prosecution. The council will weigh the seriousness of the offence (taking into account the harm done or the potential for harm arising from the offence) with other relevant factors, including the financial circumstances of the defendant, mitigating circumstances and other public interest criteria. All cases will be looked at individually and be considered on their own merit.

3.2 To consider a case for prosecution the council must be satisfied that two tests have been passed. Firstly, there must be sufficient evidence of guilt to ensure conviction. This is called the evidential test. Secondly, it must be in the public interest to proceed – the public interest test.

3.3 To pass the evidential test, authorised officers must be satisfied that there is a realistic prospect of conviction based on the available evidence (that is, there must be sufficient admissible, substantial and reliable evidence to secure a conviction).

3.4 To pass the public interest test, the authorised officer will balance, carefully and fairly, the public interest criteria against the seriousness of

Page 105 the offence. The public interest criteria include;

 the likely sentence (if convicted);  any previous convictions and the conduct of the defendant;  whether there are grounds for believing the offence is likely to be repeated;  the prevalence of the offence in the area;  whether the offence was committed as a result of a genuine mistake or misunderstanding;  any undue delay between the offence taking place and/or being detected and the date of the trial;  the likely effect that a prosecution will have on the defendant;  whether the defendant has put right the loss or harm caused.

3.5 It will generally be in the public interest to prosecute if one or more of the following factors applies, subject to any mitigating circumstances;

 the actual or potential loss to the council was substantial;  the fraud has continued over a long period of time;  the fraud was calculated and deliberate;  the person has previously committed fraud against the council (even if prosecution did not result) and/or there has been a history of fraudulent activity;  the person was in a position of trust (for example, a member of staff);  there has been an abuse of position or privilege;  the person has declined the offer of a caution or financial penalty;  the case has involved the use of false identities and/or false or forged documents;

4 Mitigating Factors

4.1 The following mitigating factors will be taken into account when determining whether to prosecute;

Voluntary Disclosure

4.2 A voluntary disclosure occurs when an offender voluntarily reveals fraud about which the council is otherwise unaware. If this happens, then the

Page 106 fraud will be investigated but the offender will not be prosecuted unless in exceptional circumstances. However, any person colluding in the crime will still be prosecuted. A disclosure is not voluntary if the:-

 admission is not a complete disclosure of the fraud;

 admission of the fraud is made only because discovery of the fraud is likely, (for example, the offender knows the council is already undertaking an investigation in this area and/or other counter fraud activity);

 offender only admits the facts when challenged or questioned;

 offender supplies the correct facts when making a claim to Legal Aid.

Ill Health or Disability

4.3 Where the perpetrator (and/or their partner) is suffering from prolonged ill health or has a serious disability or other incapacity then the offender will not normally be prosecuted. Evidence from a GP or other doctor will be requested if the condition is claimed to exist, unless it is obvious to the investigator. It is also necessary to prove that the person understood the rules governing the type of fraud committed and was aware that their action is wrong. This may not be possible where, for instance, the offender has serious learning difficulties. However, simple ignorance of the law will not prevent prosecution.

Social Factors

4.4 A wide range of social factors may make a prosecution undesirable. The test is whether the court will consider the prosecution undesirable, and go on to reflect that in the sentence.

Exceptional Circumstances

4.5 In certain exceptional circumstances the council may decide not to prosecute an offender. Such circumstances include;

 the inability to complete the investigation within a reasonable period of time;  the prosecution would not be in the interests of the council;  circumstances beyond the control of the council make a prosecution unattainable.

Page 107 5 Alternatives to Prosecution

5.1 If some cases are considered strong enough for prosecution but there are mitigating circumstances which cast a doubt as to whether a prosecution is appropriate then the council may consider the offer of a sanction instead. The two sanctions available are;  a caution, or;  financial penalty.

Simple Cautions

5.2 A simple caution is a warning given in certain circumstances as an alternative to prosecution, to a person who has committed an offence. All cautions are recorded internally and kept for a period of six years. Where a person offends again in the future then any previous cautions will influence the decision on whether to prosecute or not.

5.3 For less serious offences a simple caution will normally be considered where all of the following apply;

 there is sufficient evidence to justify instituting criminal proceedings;  the person has admitted the offence;  there is no significant public requirement to prosecute;  it was a first offence, and;  a financial penalty is not considered to be appropriate.

Only in very exceptional circumstances will a further caution be offered for a second or subsequent offence of the same nature.

5.4 Cautions will be administered by the Head of Internal Audit (or deputy), Counter Fraud Manager, or a senior fraud investigator. If a caution is offered but not accepted then the council will usually consider the case for prosecution. In such cases the court will be informed that the defendant was offered a penalty but declined to accept it.

Financial Penalties

5.5 The Council Tax Reduction Schemes (Detection of Fraud and Enforcement) (England) Regulations 2013, permit a financial penalty to be offered to claimants as an alternative to prosecution. The penalty is set at 50% of the amount of the excess reduction, subject to a minimum

Page 108 of £100 and a maximum of £1000. Once a penalty is accepted, the claimant has 14 days to change their mind.

5.6 Subject to the thresholds set out in the guidelines below, a financial penalty will normally be offered by the council in the following circumstances;

 the council believes that there is sufficient evidence to prosecute;  it was a first offence or a previous offence was dealt with by way of a caution, and;  in the opinion of the council, the circumstances of the case mean it is not overwhelmingly suitable for prosecution, and;  the claimant has the means to repay both the overpayment and the penalty, and;  there is a strong likelihood that both the excess reduction and the penalty will be repaid.

5.7 It is important to note that the claimant does not need to have admitted the offence for a financial penalty to be offered. Financial penalties will be administered by the Head of Internal Audit (or deputy), Counter Fraud Manager or a senior investigation officer. If a financial penalty is not accepted or is withdrawn then the council will usually consider the case for prosecution. In such cases the court will be informed that the defendant was offered a penalty but declined to accept it.

6 Proceeds of Crime Act 2002 (POCA)

6.1 In addition to the actions set out in this policy, the council reserves the right to refer all suitable cases for financial investigation with a view to applying to the courts for restraint and/or confiscation of identified assets. A restraint order will prevent a person from dealing with specific assets. A confiscation order enables the council to recover its losses from assets which are found to be the proceeds of crime.

7 Implementation Date

7.1 This revised policy is effective from 8 July 2016 and covers all decisions relating to prosecutions and sanctions after this date.

POLICY LAST REVIEWED AND UPDATED 28 July 2016

Page 109 This page is intentionally left blank Agenda Item 11

Appendix 2

ANTI-MONEY LAUNDERING POLICY

Page 111 1 Index

Section Contents

1.0 Introduction

2.0 Scope of the Policy

3.0 What is Money Laundering?

4.0 What are the obligations on the council?

5.0 Money Laundering Reporting Officer

6.0 Disclosure Procedure

7.0 Customer Due Diligence procedure

8.0 Ongoing monitoring and record keeping procedures

9.0 Training

10.0 Risk Management and Internal Control

11.0 Conclusion

12.0 Review of the Policy

Page 112 2 1.0 INTRODUCTION

1.1 Most organised criminal activity is directly or indirectly aimed at making money. The ability to ‘launder’ this money and clean the trail of its origins to prevent it being associated with criminal activity is a major concern for criminals or organised criminal groups. The proceeds of most crime are usually generated as cash, however, this represents a considerable risk to criminals: it increases the possibility of exposure, theft by rival criminals and/or seizure by law enforcement agencies (as when cash enters the legitimate economy, it is easier to identify). Cash is also bulky and cumbersome to handle in large quantities.

1.2 To avoid this, criminals take action to prevent this cash from attracting suspicion, for example, they may move it to other locations, including abroad, or use it to buy other assets or try and introduce it into the legitimate economy through businesses with a high cash turnover.

1.3 Historically, the statutory framework seeking to prevent the laundering of the proceeds of criminal activity was aimed at professionals in the financial and investment sector, however it was subsequently recognised that those involved in criminal conduct were able to “clean” the proceeds of crime through a wider range of businesses and professional activities.

1.4 The legislation concerning money laundering (the Proceeds of Crime Act 2002, the Terrorism Act 2000 and the Money Laundering Regulations 2007 (all as amended)) has broadened the definition of money laundering and increased the range of activities and organisations/individuals brought within the statutory framework. As a result, the obligations now impact on certain areas of local authority business. Some parts of the anti- money laundering framework apply, potentially, to everybody whereas other parts only apply to particular organisations which are in the regulated sector or carrying out certain regulated activities.

1.5 Whilst the concept of ‘money laundering’ being applicable to the council may, at first, seem strange, it is easier to understand after seeing the breadth of the definition of money laundering (essentially any involvement with criminal property, ie that which represents a person’s benefit from virtually any crime). Potentially any member of staff could commit a money laundering offence if they suspect money laundering and either become involved with it in some way (without reporting it to, and seeking permission from, the council’s Money Laundering Reporting Officer (“MLRO”)) and/or do nothing about it. This Policy sets out how to report such concerns.

2.0 SCOPE OF THE POLICY

2.1 This Policy applies to all employees of the Ryedale District Council and aims to maintain the high standards of conduct which currently exist within the council by preventing criminal activity through money laundering.

2.2 All staff MUST be aware of the content of this Policy, to enable the council to comply with its legal obligations. Failure by a member of staff to comply with the procedures set out in this Policy may lead to disciplinary action being taken against them.

3.0 WHAT IS MONEY LAUNDERING?

3.1 Under the legislation there are two main types of offences which may be committed: money laundering offences and failure to report money laundering offences.

Page 113 3 Primary money laundering offences:

3.2 Money laundering means:

 concealing, disguising, converting, transferring criminal property or removing it from the UK (section 327 of the 2002 Act); or

 entering into or becoming concerned in an arrangement which you know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person (section 328); or

 acquiring, using or possessing criminal property (section 329); or

 an attempt, conspiracy or incitement to commit such an offence; or  aiding, abetting, counselling or procuring such an offence; or

 becoming concerned in an arrangement facilitating concealment, removal from the jurisdiction, transfer to nominees or any other retention or control of terrorist property (section 18 of the Terrorist Act 2000).

These are the primary money laundering offences and are prohibited acts under the legislation.

3.3 “Criminal property” is widely defined: it is property representing a person’s benefit from criminal conduct where you know or suspect that that is the case. It includes all property (situated in the UK or abroad) real or personal, including money, and also includes an interest in land or a right in relation to property other than land.

3.4 “Terrorist property” means money or other property which is likely to be used for the purposes of terrorism, proceeds of the commission of acts of terrorism, and acts carried out for the purposes of terrorism.

3.5 Money laundering therefore goes beyond major drug money laundering operations, terrorism and serious crime and now covers a range of activities (which do not necessarily need to involve money or laundering) regarding the proceeds of potentially any crime, no matter how minor and irrespective of the size of the benefit gained, for example “an illegally obtained sum of £10 is no less susceptible to the definition of criminal property than a sum of £1million.” (P v P, 2003).

Failure to report money laundering offences:

3.6 In addition to the money laundering offences, the legislation sets out further offences of failure to report suspicions of money laundering activities. Such offences are committed where, in the course of conducting business in the regulated sector:

 you know or suspect, or have reasonable grounds to do so (even if you did not actually know or suspect), that another person is engaged in money laundering;

 you can identify the money launderer or the whereabouts of the laundered property (or you believe, or it is reasonable to expect you to believe, that the information you have will assist you to identify the person/property); and

 you do not disclose this as soon as is practicable to the MLRO (section 330 of the 2002 Act and section 21A of the 2000 Act).

3.7 The broad definition of money laundering means that the Act applies to a very wide range of everyday activities within the authority and therefore potentially any member of staff (irrespective of what sort of councilPage business 114 they are undertaking) could be caught by the 4 money laundering provisions if they suspect money laundering and become involved with it in some way. In short, the money laundering offences apply to your own actions and to matters in which you become involved. If you become aware that your involvement in a matter may amount to money laundering under the 2002 Act then you must discuss it with the MLRO and not take any further action until you have received, through the MLRO, the consent of National Crime Agency (NCA). The failure to report money laundering obligations, referred to above, relate also to your knowledge or suspicions of others, through your work. If you know or suspect, through the course of your work, that anyone is involved in any sort of criminal conduct then it is highly likely, given the wide definition of money laundering, that s/he is also engaged in money laundering and a report to the MLRO will be required.

3.8 Whilst the risk to the council of contravening the legislation is low, it is extremely important that all employees are familiar with their legal responsibilities: serious criminal sanctions may be imposed for breaches of the legislation. Any person found guilty of a money laundering offence is liable to imprisonment (maximum of 14 years), a fine or both. However, an offence is not committed if the suspected money laundering activity is reported to the council’s MLRO and, where necessary, official permission obtained to continue in the transaction. Certain other defences are also available.

Possible signs of money laundering

3.9 It is impossible to give a definitive list of ways in which to spot money laundering or how to decide whether to make a report to the MLRO. The following are types of risk factors which may, either alone or cumulatively with other factors, suggest the possibility of money laundering activity:

(a) General

 A new client;

 A secretive client: eg, refuses to provide requested information without a reasonable explanation;

 A client you have not met;

 Concerns about the honesty, integrity, identity or location of a client eg a client who is not present in the area and there is no good reason why they would instruct us, or information reveals that the client is linked with criminality;

 Complex or unusually large transactions/systems;

 Illogical third party transactions: unnecessary routing or receipt of funds from third parties or through third party accounts;

 The source or destination of funds differs from the original details given by the client;

 Involvement of an unconnected third party without logical reason or explanation;

 Payment of a substantial sum in cash (over £10,000);

 Overpayments by a client (or money given on account); care will need to be taken, especially with requests for refunds eg a significant overpayment which results in a repayment should be properly investigated and authorised before payment;

 Absence of an obvious legitimate source of the funds; Page 115 5  Movement of funds overseas, particularly to a higher risk country or tax haven;

 Providing assistance in setting up trusts or company structures, which could be used to obscure ownership of property;

 Where, without reasonable explanation, the size, nature and frequency of transactions or instructions (or the size, location or type of a client) is out of line with normal expectations;

 Unusual patterns of transactions which have no apparent economic, efficient or visible lawful purpose;

 The cancellation or reversal of an earlier transaction (where the client is likely to request the return of previously deposited monies;

 Requests for release of client account details other than in the normal course of business;

 Companies and trusts: extensive use of corporate structures and trusts in circumstances where the client’s needs are inconsistent with the use of such structures;

 Poor business records or internal accounting controls;

 A previous transaction for the same client which has been, or should have been, reported to the MLRO;

 any other activity which by its nature is likely to be related to money laundering or terrorist financing;

(b) Property Matters

 A cash buyer;

 Sudden change of buyer;

 The client’s financial profile does not fit;

 Unusual property investment transactions if there is no apparent investment purpose or rationale;

 Instructions to receive and pay out money where there is no linked substantive property transaction involved (surrogate banking);

 Re property transactions, funds received for deposits or prior to completion from an unexpected source or where instructions are given for settlement funds to be paid to an unexpected destination;

 No clear explanation as to the source of funds along with lack of clarity as to how the client would be in a position to finance the purchase;

 Money comes in from an unexpected source.

3.10 Property transactions are a slightly higher risk for the council. For example, if the council agrees to sell a parcel of land to a developer or other third party, at a price that is far in excess of its estimated value, or the buyer offers to pay the full price in cash, then this may be evidence of money laundering activity. Page 116 6 3.11 Facts which tend to suggest that something odd is happening may be sufficient for a reasonable suspicion of money laundering to arise. Employees need to be on the look out for anything out of the ordinary. If something seems unusual, stop and question it. If you are unsure, seek guidance from the MLRO.

4.0 WHAT ARE THE OBLIGATIONS ON THE COUNCIL?

4.1 Organisations in the “regulated sector” and which undertake particular types of regulated activity must:

 appoint a Money Laundering Reporting Officer (“MLRO”) to receive disclosures from employees of money laundering activity (their own or anyone else’s);

 implement a procedure to enable the reporting of suspicions of money laundering;

 apply customer due diligence measures in certain circumstances;

 obtain information on the purpose and nature of certain proposed transactions/business relationships;

 conduct ongoing monitoring of certain business relationships;

 maintain record keeping and other specified procedures on a risk sensitive basis;

 train relevant staff;

the aim being to require such organisations to know their clients and the detail of the transaction being entered into and to monitor the use of their services by clients.

4.2 Not all of the business of the council is caught by the above: it is mainly the accountancy, tax and audit services and certain financial, company and property transactions. It is clear that from supervisory body guidance that in-house lawyers and accountants are not intended to be caught within the regulated sector: however, although those business units are not external/independent advisers to the council, they are to the external clients for whom they undertake work under contract. Such external work may, therefore, bring the council within the regulated sector.

4.3 Under the legislation, certain offences (eg failure to report money laundering activity) may only be committed in the course of a business in the regulated sector however, the safest way to ensure compliance with the law and consistency throughout the council is to apply most of the requirements to all areas of work undertaken by the council; therefore, all staff are required to comply with the reporting procedure set out in section 6 below. The Customer Due Diligence Procedure and other internal procedures referred to later are only required to be followed by those engaging in regulated business as defined above.

4.4 Failure to comply with the above requirements is a criminal offence for which you may be liable to imprisonment for up to 2 years, a fine or both.

4.5 The following sections of this Policy provide further detail about the requirements listed in paragraph 4.1.

5.0 MONEY LAUNDERING REPORTING OFFICER

5.1 The officer nominated to receive disclosures about money laundering/terrorist financing activity within the council is the Finance Manager (s151), who can be contacted as follows:

Page 117 7 Peter Johnson Finance Manager Ryedale District Council Ryedale House Old Maltongate Malton YO17 9AE Telephone: 01653 600666 extension 392 Email: [email protected]

5.2 In the absence or unavailability of the MLRO, the Head of Corporate Services, Clare Slater, is authorised to deputise for him. Clare can be contacted at Ryedale House or on telephone number 01653 600666 extension 347.

6.0 DISCLOSURE PROCEDURE

Reporting to the Money Laundering Reporting Officer

6.1 Where you know or suspect that money laundering activity is taking/has taken place, or you become concerned that your involvement in a matter may amount to a prohibited act under the legislation (see paragraph 3.2 above), you must disclose this as soon as possible to the MLRO.

6.2 Your disclosure should be made to the MLRO using the proforma report attached at Appendix 1. The report must include as much detail as possible, for example:

 full details of the people involved (including yourself, if relevant), eg name, date of birth, address, company names, directorships, phone numbers, etc;

 full details of the property involved and its whereabouts (if known);

 full details of the nature of their/your involvement:

 if you are concerned that your involvement in the transaction would amount to a prohibited act under the legislation, then your report must include all relevant details, as you will need consent from the NCA, via the MLRO, to take any further part in the transaction - this is the case even if the client gives instructions for the matter to proceed before such consent is given;

 you should therefore make it clear in the report if such consent is required and clarify whether there are any deadlines for giving such consent eg a completion date or court deadline;

 your suspicions of the types of money laundering activity involved (if you are aware of possible particular offences, please cite the relevant section number(s) if known);

 the dates of such activities, including:

 whether the transactions have happened, are ongoing or are imminent;

 where they took place;

 how they were undertaken;

 the (likely) amount of money/assets involved;

 why, exactly, you are suspiciousPage – 118 NCA will require full reasons; 8 along with any other available information to enable the MLRO to make a sound judgment as to whether there are reasonable grounds for knowledge or suspicion of money laundering and to enable him/her to prepare his report to NCA, where appropriate. You should also enclose copies of any relevant supporting documentation.

6.3 Once you have reported the matter to the MLRO you must follow any directions s/he may give you. You must NOT make any further enquiries into the matter yourself: any necessary investigation will be undertaken by NCA. Simply report your suspicions to the MLRO who will refer the matter on to NCA if appropriate. All members of staff will be required to co-operate with the MLRO and the authorities during any subsequent money laundering investigation.

6.4 Similarly, at no time and under no circumstances should you voice any suspicions to the person(s) whom you suspect of money laundering, even if NCA has given consent to a particular transaction proceeding, without the specific consent of the MLRO; otherwise, you may commit a criminal offence of “tipping off”.

6.5 Do not, therefore, make any reference on a client file to a report having been made to the MLRO – should the client exercise their right to see the file, then such a note will obviously tip them off to the report having been made and may render you liable to prosecution. The MLRO will keep the appropriate records in a confidential manner.

Consideration of the disclosure by the Money Laundering Reporting Officer

6.6 Upon receipt of a disclosure report, the MLRO must note the date of receipt on his section of the report and acknowledge receipt of it. S/he should also advise you of the timescale within which s/he expects to respond to you.

6.7 The MLRO will consider the report and any other available internal information s/he thinks relevant eg:

 reviewing other transaction patterns and volumes;  the length of any business relationship involved;  the number of any one-off transactions and linked one-off transactions;  any due diligence information held;

and undertake such other reasonable inquiries s/he thinks appropriate in order to ensure that all available information is taken into account in deciding whether a report to NCA is required (such enquiries being made in such a way as to avoid any appearance of tipping off those involved). The MLRO may also need to discuss the report with you.

6.8 Once the MLRO has evaluated the disclosure report and any other relevant information, s/he must make a timely determination as to whether:

 there is actual or suspected money laundering taking place, or

 there are reasonable grounds to know or suspect that is the case;

 he knows the identity of the money launderer or the whereabouts of the property involved or they could be identified or the information may assist in such identification, and

 whether he needs to seek consent from NCA for a particular transaction to proceed.

6.9 Where the MLRO does so conclude, then s/he must disclose the matter as soon as practicable to NCA via their secure on-line reporting system, unless s/he has a reasonable Page 119 9 excuse for non-disclosure to NCA (for example, if you are a lawyer and you wish to claim legal professional privilege for not disclosing the information).

6.10 Where the MLRO suspects money laundering but has a reasonable excuse for non- disclosure, then s/he must note the report accordingly; s/he can then immediately give his/her consent for any ongoing or imminent transactions to proceed.

6.11 In cases where legal professional privilege may apply, the MLRO must liaise with the legal adviser to decide whether there is a reasonable excuse for not reporting the matter to NCA.

6.12 Where consent is required from NCA for a transaction to proceed, then the transaction(s) in question must not be undertaken or completed until NCA has specifically given consent, or there is deemed consent through the expiration of the relevant time limits without objection from NCA.

6.13 Where the MLRO concludes that there are no reasonable grounds to suspect money laundering then s/he shall mark the report accordingly and give his/her consent for any ongoing or imminent transaction(s) to proceed.

6.14 All disclosure reports referred to the MLRO and reports made by him/her to NCA must be retained by the MLRO in a confidential file kept for that purpose, for a minimum of five years.

6.15 The MLRO commits a criminal offence if s/he knows or suspects, or has reasonable grounds to do so, through a disclosure being made to him/her, that another person is engaged in money laundering of whom s/he knows the identity or the whereabouts of laundered property in consequence of the disclosure, that the person or property’s whereabouts can be identified from that information, or s/he believes, or it is reasonable to expect him/her to believe, that the information will or may assist in such identification and s/he does not disclose this as soon as practicable to NCA.

7.0 CUSTOMER DUE DILIGENCE PROCEDURE

7.1 Where the council is carrying out certain activities which might fall within the definition of regulated business (accountancy, audit and tax services and legal services re financial, company or property transactions) and:

 forms an ongoing business relationship with a client;

 undertakes an occasional transaction amounting to 15,000 Euro (approximately £12,500) or more whether carried out in a single operation or several linked ones;

 suspects money laundering or terrorist financing, or

 doubts the veracity or adequacy of information previously obtained for the purposes of client identification or verification;

then customer due diligence measures must be applied and this Customer Due Diligence Procedure must be followed before the establishment of the relationship or carrying out of the transaction.

7.2 Applying customer due diligence means:

 identifying the client and verifying the client’s identity on the basis of documents, data or information obtained from a reliable and independent source:

Page 120 10  Where the client is acting or appears to be acting for someone else, reasonable steps must also be taken to establish the identity of that other person (although this is unlikely to be relevant to the council).

 identifying the beneficial owner (where s/he or it is not the client) so that we are satisfied that we know who the beneficial owner is, including, in the case of a legal person, trust or similar legal arrangement, measures to understand the ownership and control structure of the person, trust or arrangement, and

 Where there is a beneficial owner who is not the client, adequate measures should be taken, on a risk-sensitive basis, to verify the beneficial owner’s identity, so that you are satisfied that you know who they are, including, in the case of a legal person, trust or similar legal arrangement, measures to understand the ownership and control structure of the person, trust or arrangement. In terms of clients for whom Finance and Legal Services provide services, “beneficial owner” would include bodies corporate (eg our public authority clients) and any individual who exercises control over the management of the body (eg Chief Executive).

 obtaining information on the purpose and intended nature of the business relationship.

Please note that unlike the reporting procedure, the Customer Due Diligence Procedure is restricted to those employees undertaking relevant business, (eg Finance and Legal Services).

7.3 In the above circumstances, staff in the relevant Service Units of the council must obtain satisfactory evidence of the identity of the prospective client, and full details of the purpose and intended nature of the relationship/transaction, as soon as practicable after instructions are received. However, the legislation does allow organisations to vary customer due diligence and monitoring according to the risk of money laundering or terrorist financing which depends on the type of customer, business relationship, product or transaction. This recognises that not all clients present the same risk. Satisfactory evidence of identity is that which:

 is capable of establishing, to the satisfaction of the person receiving it, that the client is who they claim to be; and

 does in fact do so.

7.4 In the council, details of proposed transactions are usually, as a matter of good case management practice, recorded in writing in any event and proposed ongoing business relationships are usually the subject of Terms of Business Letters, Service Level Agreements or other written record which will record the necessary details.

7.5 There is also now an ongoing legal obligation to check the identity of existing clients and the nature and purpose of the business relationship with them at appropriate times. Opportunities to do this will differ, however one option is to review these matters as part of the ongoing monitoring of the business arrangements, as is usually provided for in the Terms of Business Letter, Service Level Agreement or other written record. The opportunity should also be taken at these times to scrutinise the transactions undertaken throughout the course of the relationship (including, where necessary, the source of funds) to ensure they are consistent with your knowledge of the client, its business and risk profile. Particular scrutiny should be given to the following:

 complex or unusually large transactions;

Page 121 11  unusual patterns of transactions which have no apparent economic or visible lawful purpose; and

 any other activity particularly likely by its nature to be related to money laundering or terrorist financing.

7.6 Council staff conducting regulated business need to be able to demonstrate that they know their clients and the rationale behind particular instructions and transactions.

7.7 Once instructions to provide regulated business have been received, and it has been established that any of paragraphs 7.1 (a) to (d) apply, or it is otherwise an appropriate time to apply due diligence measures to an existing client, evidence of identity and information about the nature of the particular work should be obtained/checked as follows:

Internal clients:

7.8 Internal clients are part of the council. Under the legislation, there is no need to apply customer due diligence measures where the client is a UK public authority. However, as a matter of good practice, identity of internal clients should continue to be checked as before by ensuring that signed, written instructions on council headed notepaper or via email on the internal council email system are obtained at the outset of a particular matter. Such correspondence should then be placed on the council’s client file along with a prominent note explaining which correspondence constitutes the evidence and where it is located. Full details about the nature of the proposed transaction should be recorded on the client file.

External Clients

7.9 Most of the external clients to whom the council provides potentially regulated business services are UK public authorities and consequently, as above, there is no need to apply customer due diligence measures. However, again as a matter of good practice, full details about the nature of the proposed transaction should be recorded on the client file, and the identity of such external clients should continue to be checked, along with other external clients (eg designated public bodies), using the following procedure.

7.10 You should also then obtain the appropriate additional evidence: For external clients, appropriate additional evidence of identity will be written instructions on the organisation’s official letterhead at the outset of the matter or an email from the organisation’s e- communication system. Such correspondence should then be placed on the council’s client file along with a prominent note explaining which correspondence constitutes the evidence and where it is located (and including a reference to a search of the MLRO’s central file, if undertaken).

7.11 In some circumstances, however, enhanced due diligence (eg obtaining additional evidence of identity or source of funds to be used in the relationship/transaction) must be carried out, for example where:  the client is not physically present when being identified. This situation is however unlikely to occur as the council normally only undertakes its regulated business for other local authorities and designated public bodies (not individuals) and therefore instructions will usually be given in writing;

 the client is a “politically exposed person” (an individual who at any time in the preceding year has held a prominent public function outside of the UK, and EU or international institution/body, their immediate family members or close associates). This is unlikely to ever be relevant to the council but the provision must be included in local procedures; Page 122 12 7.12 With instructions from new clients, or further instructions from a client not well known to you, you may wish to seek additional evidence of the identity of key individuals in the organisation and of the organisation itself, for example:

 checking the organisation’s website to confirm the identity of key personnel, its business address and any other details;

 conducting an on-line search via Companies House to confirm the nature and business of the client and to confirm the identities of any directors;

 attending the client at their business address;

 a search of the telephone directory;

 asking the key contact officer and/ or any individual who exercises control over the management of the body (eg the Chief Executive Officer) to provide evidence of their personal identity and position within the organisation, for example:

 passport;  photocard driving licence;  birth certificate;  medical card;  bank/building society statement (but not if used to prove address and no older than 3 months);

 National Insurance number;

 signed, written confirmation from their Head of Service or Chair of the relevant organisation that such person works for the organisation.

If such additional evidence is obtained, then copies should be sent to the MLRO for his/her central client identification file.

7.13 In all cases, the due diligence evidence should be retained for at least five years from the end of the business relationship or transaction(s).

7.14 If satisfactory evidence of identity is not obtained at the outset of the matter then generally the business relationship or one off transaction(s) cannot proceed any further and any existing business relationship with that client must be terminated.

8.0 ONGOING MONITORING AND RECORD KEEPING PROCEDURES

8.1 Each Service Unit of the council conducting potentially regulated business must monitor, on an ongoing basis, their business relationships in terms of scrutinising transactions undertaken throughout the course of the relationship (including, where necessary, the source of funds) to ensure that the transactions are consistent with the their knowledge of the client, its business and risk profile.

8.2 We must also maintain records of:

 client identification/verification evidence obtained (or references to it), and  details of all regulated business transactions carried out for clients;

for at least five years from the end of the transaction/relationship. This is so that they may be used as evidence in any subsequent investigation by the authorities into money laundering. Page 123 13 8.3 The precise nature of the records is not prescribed by law however they must be capable of providing an audit trail during any subsequent investigation, for example distinguishing the client and the relevant transaction and recording the source of, and in what form, any funds were received or paid. In practice, the Service Units of the council will be routinely making records of work carried out for clients in the course of normal business and these should suffice in this regard. See also paragraphs 7.4 to 7.6.

9.0 TRAINING

9.1 The council will take appropriate measures to ensure that all employees are made aware of the law relating to money laundering and will arrange targeted, ongoing, training to key individuals most likely to be affected by the legislation.

10.0 RISK MANAGEMENT AND INTERNAL CONTROL

10.1 The risk to the council of contravening the anti-money laundering legislation will be assessed on a periodic basis and the adequacy and effectiveness of the Anti-Money Laundering Policy will be reviewed in light of such assessments.

10.2 The adequacy and effectiveness of, promotion of, and compliance by employees with, the documentation and procedures will also be monitored through the council’s governance arrangements and Counter Fraud Policy frameworks.

11.0 CONCLUSION

11.1 The legislative requirements concerning anti-money laundering procedures are lengthy, technical and complex. This Policy has been written so as to enable the council to meet the legal requirements in a way which is proportionate to the very low risk to the council of contravening the legislation.

11.2 Should you have any concerns whatsoever regarding any transactions then you should contact the MLRO.

12.0 REVIEW OF THE POLICY

12.1 The Policy will be subject to review as and when required.

28 July 2016

Page 124 14 APPENDIX 1

CONFIDENTIAL

Report to Money Laundering Reporting Officer

re money laundering activity

To: PETER JOHNSON, Finance Manager (s151), Ryedale District Council Money Laundering Reporting Officer

From: ………………………………………… [insert name of employee]

Directorate: ………………………………………. Ext/Tel No:…………………………….. [insert post title and Business Unit]

DETAILS OF SUSPECTED OFFENCE:

Name(s) and address(es) of person(s) involved: [if a company/public body please include details of nature of business]

Nature, whereabouts, value and timing of activity/property involved: [Please include full details eg what, when, where, how. Please also include details of current whereabouts of the laundered property, so far as you are aware. Continue on a separate sheet if necessary]

Page 125 15 Nature of suspicions regarding such activity: [Please continue on a separate sheet if necessary]

Has any investigation been undertaken (as far as you are aware)? [Please tick the relevant box] Yes No

If yes, please include details below:

Page 126 16 Have you discussed your suspicions with anyone else? Yes No [Please tick the relevant box]

If yes, please specify below, explaining why such discussion was necessary:

Have you consulted any supervisory body guidance re money Yes No laundering? (e.g. the Law Society) [Please tick the relevant box]

If yes, please specify below:

Do you feel you have a reasonable excuse for not disclosing the Yes No matter to NCA? (e.g. are you a lawyer and wish to claim legal professional privilege?) [Please tick the relevant box]

If yes, please set out full details below:

Are you involved in a transaction which might be a prohibited Yes No act (under sections 327- 329 of the 2002 Act or section 18 of the 2000 Act) and which requires appropriate consent from NCA? [Please tick the relevant box]

If yes, please enclose details in the box below:

Please set out below any other information you feel is relevant:

Signed:…………………………………………………… Dated:…………………………………

Please do not discuss the content of this report with anyone you believe to be involved in the suspected money laundering activity described. To do so may constitute a tipping off offence, which carries a maximum penalty of 5 years’ imprisonment.

Page 127 17 THE FOLLOWING PART OF THIS FORM IS FOR COMPLETION BY THE MLRO

Date report received: ………………………………………………

Date receipt of report acknowledged: ………………………………….

CONSIDERATION OF DISCLOSURE:

Action plan:

OUTCOME OF CONSIDERATION OF DISCLOSURE:

Are there reasonable grounds for suspecting money laundering activity? Do you know the identity of the alleged money launderer or the whereabouts of the property concerned?

Page 128 18 If there are reasonable grounds for suspicion, will a report be Yes No made to NCA? [Please tick the relevant box]

If yes, please confirm date of report to NCA: ………………………………………………………… and complete the box below:

Details of liaison with NCA regarding the report:

Notice Period: …………………….. to ………………………..

Moratorium Period: …………………….. to ……………………

Is consent required from NCA to any ongoing or imminent Yes No transactions which would otherwise be prohibited acts?

If yes, please confirm full details in the box below:

Date consent received from NCA: …………………………………………………

Date consent given by you to employee: ………………………………………………….

Page 129 19 If there are reasonable grounds to suspect money laundering, but you do not intend to report the matter to NCA, please set out below the reason(s) for non-disclosure:

[Please set out any reasonable excuse for non-disclosure]

Date consent given by you to employee for any prohibited act transactions to proceed: …………………………………………………

Other relevant information:

Signed:…………………………………………………… Dated:…………………………………

THIS REPORT TO BE RETAINED FOR AT LEAST FIVE YEARS

Page 130 20 Agenda Item 12

REPORT TO: COUNCIL

DATE: 1 SEPTEMBER 2016

REPORT OF THE: FINANCE MANAGER (s151) PETER JOHNSON

TITLE OF REPORT: TREASURY MANAGEMENT ANNUAL REPORT 2015-16

WARDS AFFECTED: ALL

EXECUTIVE SUMMARY

1.0 PURPOSE OF REPORT

1.1 The Council is required by regulations issued under the Local Government Act 2003 to produce an annual treasury management review of activities and the actual prudential and treasury indicators for 2015/16. This report meets the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).

2.0 RECOMMENDATIONS

2.1 That Council is recommended to: (i) Note the annual treasury management report for 2015/16; and

(ii) Approve the actual 2015/16 prudential and treasury indicators in this report.

3.0 REASON FOR RECOMMENDATIONS

3.1 The Council has adopted the Code. A provision of the Code is that an annual review report must be made to the Full Council relating to the treasury activities of the previous year.

4.0 SIGNIFICANT RISKS

4.1 There are significant risks when investing public funds especially with unknown institutions. However, by the adoption of the CIPFA Code and a prudent investment strategy these are minimised. The employment of Treasury Advisors also helps reduce the risk.

5.0 POLICY CONTEXT AND CONSULTATION

5.1 The Council has adopted the CIPFA Code of Practice on Treasury Management in

COUNCIL 1 SEPTEMBER 2016 Page 131 Local Authorities and this report complies with the requirements under this code.

5.2 The Council uses the services of Capita Treasury Services Limited to provide treasury management information and advice.

REPORT

6.0 REPORT DETAILS

6.1 During 2015/16 the minimum reporting requirements were that the full Council should receive the following reports:

 An annual treasury strategy in advance of the year (Council 24 February 2015)  A mid year (minimum) treasury update report (Council 10 December 2015)  An annual review following the end of the year describing the activity compared to the strategy (this report).

In addition, treasury management update reports were received by the Policy and Resources Committee.

6.2 The regulatory environment places responsibility on members for the review and scrutiny of treasury management policy and activities. This report is therefore important in that respect, as it provides details of the outturn position for treasury activities and highlights compliance with the Council’s policies previously approved by Members.

6.3 This Council also confirms that it has complied with the requirement under the Code to give prior scrutiny to all the above treasury management reports by the Overview and Scrutiny Committee before they were reported to the full Council. Further Member training on treasury management was undertaken on 28th January 2016 in order to support members' scrutiny role.

6.4 This report summarises:

 Capital activity during the year;  Impact of this activity on the Council’s underlying indebtedness (the Capital Financing Requirement);  Reporting of the required prudential and treasury indicators;  Summary of interest rate movement in the year;  Detailed borrowing activity;  Detailed investment activity.

The Council’s Capital Expenditure and Financing 2015/16. 6.5 The Council undertakes capital expenditure on long-term assets. These activities may either be:

 Financed immediately through the application of capital or revenue resources (capital receipts, capital grants, revenue contributions etc.), which has no resultant impact on the Council’s borrowing need; or  If insufficient financing is available or a decision is taken not to apply resources, the capital expenditure will give rise to a borrowing need.

6.6 The actual capital expenditure forms one of the required prudential indicators. The table below shows the actual capital expenditure and how this was financed.

COUNCIL 1 SEPTEMBER 2016 Page 132 2015/16 2014/15 Actual (£) Actual (£)

Total Capital Expenditure 1,076,215 1,330,779

Resourced by:

Capital receipts - - Capital grants and contributions 301,878 318,561 Capital reserves 34,054 2,500 External Borrowing 740,283 1,009,718 Total 1,076,215 1,330,779

The Economy and Interest rates

6.7 Market expectations for the first increase in Bank Rate moved considerably during 2015/16, starting at quarter 3 2015 but soon moving back to quarter 1 2016. However, by the end of the year, market expectations had moved back radically to quarter 2 2018 due to many fears including concerns that China’s economic growth could be heading towards a hard landing; the potential destabilisation of some emerging market countries particularly exposed to the Chinese economic slowdown; and the continuation of the collapse in oil prices during 2015 together with continuing Eurozone growth uncertainties.

6.8 These concerns have caused sharp market volatility in equity prices during the year with corresponding impacts on bond prices and bond yields due to safe haven flows. Bank Rate, therefore, remained unchanged at 0.5% for the seventh successive year. Economic growth (GDP) in 2015/16 has been disappointing with growth falling steadily from an annual rate of 2.9% in quarter 1 2015 to 2.1% in quarter 4. The sharp volatility in equity markets during the year was reflected in sharp volatility in bond yields. However, the overall dominant trend in bond yields since July 2015 has been for yields to fall to historically low levels as forecasts for inflation have repeatedly been revised downwards and expectations of increases in central rates have been pushed back. In addition, a notable trend in the year was that several central banks introduced negative interest rates as a measure to stimulate the creation of credit and hence economic growth.

6.9 The ECB commenced a full blown quantitative easing programme of purchases of Eurozone government and other bonds starting in March at €60bn per month. This put downward pressure on Eurozone bond yields. There was a further increase in this programme of QE in December 2015. As for America, the economy has continued to grow healthily on the back of resilient consumer demand. The first increase in the central rate occurred in December 2015 since when there has been a return to caution as to the speed of further increases due to concerns around the risks to world growth. The UK elected a majority Conservative Government in May 2015, removing one potential concern but introducing another due to the promise of a referendum on the UK remaining part of the EU. The government maintained its tight fiscal policy stance but the more recent downturn in expectations for economic growth has made it more difficult to return the public sector net borrowing to a balanced annual position within the period of this parliament.

Overall Treasury Position as at 31 March 2016

6.10 At the beginning and the end of 2015/16 the Council’s treasury position was as

COUNCIL 1 SEPTEMBER 2016 Page 133 follows (excluding finance leases):

31 March 2016 Principal 31 March 2015 Principal Total Debt £1.75m £1.75m CFR £1.73m £1.01m Over/(Under) borrowing £0.02m £0.74m Total Investments £11.66m £9.16m Net Debt -£9.91m -£7.41m

The Strategy for 2015/16

6.11 The Treasury Management Strategy for 2015/16 was approved by members at full Council on 24 February 2015.

6.12 The expectation for interest rates within the treasury management strategy for 2015/16 anticipated low but rising Bank Rate, (starting in quarter 1 of 2016), and gradual rises in medium and longer term fixed borrowing rates during 2016/17. Variable, or short-term rates, were expected to be the cheaper form of borrowing over the period. Continued uncertainty in the aftermath of the 2008 financial crisis promoted a cautious approach, whereby investments would continue to be dominated by low counterparty risk considerations, resulting in relatively low returns compared to borrowing rates. The treasury strategy was to postpone borrowing to avoid the cost of holding higher levels of investments and to reduce counterparty risk. The sharp volatility in equity markets during the year was reflected in sharp volatility in bond yields. However, the overall dominant trend in bond yields since July 2015 has been for yields to fall to historically low levels as forecasts for inflation have repeatedly been revised downwards and expectations of increases in central rates have been pushed back.

The Borrowing Requirement and Debt

6.13 The Council’s underlying need to borrow to finance capital expenditure is termed the Capital Financing Requirement (CFR) (excluding borrowing by finance leases).

31 March 2015 31 March 2016 31 March 2016 Actual Budget Actual Total CFR £1.010m £2.029m £1.730m

Borrowing Rates in 2015/16

COUNCIL 1 SEPTEMBER 2016 Page 134 Borrowing Outturn for 2015/16

6.14 No new borrowing was undertaken during the year, the debt portfolio remains as follows:

Lender Principal Type Interest Rate Maturity PWLB £1.00m Maturity 3.69% 50 years PWLB £0.75m EIP 2.99% 19 years

This compares with a budget assumption of borrowing at an interest rate of 3.85%.

Investment Rates in 2015/16

6.15 Bank Rate remained at its historic low of 0.5% throughout the year; it has now remained unchanged for seven years. Market expectations as to the timing of the start of monetary tightening started the year at quarter 1 2016 but then moved back to around quarter 2 2018 by the end of the year. Deposit rates remained depressed during the whole of the year, primarily due to the effects of the Funding for Lending Scheme and due to the continuing weak expectations as to when Bank Rate would start rising.

COUNCIL 1 SEPTEMBER 2016 Page 135 Investment Outturn for 2015/16

6.16 The Council’s investment policy is governed by DCLG guidance, which has been implemented in the Annual Investment Strategy approved by the Council on 24 February 2015. This policy sets out the approach for choosing investment counterparties, and is based on credit ratings provided by the three main credit rating agencies supplemented by additional market data (such as rating outlooks, credit default swaps, bank share prices etc).

6.17 The investment activity during the year conformed to the approved strategy and the Council had no liquidity difficulties.

6.18 The following table shows the result of the investment strategy undertaken by the Council and the relative performance of the internally managed funds against the 7- day LIBID uncompounded rate bench mark:

Average Gross Net Benchmark Investment Rate of Rate of Return (£) Return Return Internally Managed: Temporary & On-Call 5,525,273 0.30% n/a n/a Investments Fixed Term Deposits 1,135,029 0.77% n/a 0.36%

6.19 The interest received by the Council from investments in 2015/16 totalled £98k; this compares to an original estimate of £59k.

6.20 The Council's investment position is organised by the Finance Section in order to ensure adequate liquidity for revenue and capital activities and security of investments. Procedures and controls to achieve these objectives are well established both through Member reporting detailed in the summary, and through officer activity detailed in the Treasury Management Practices. At the beginning and the end of 2015/16 the Council's investments position was as follows:

COUNCIL 1 SEPTEMBER 2016 Page 136 31 March 31 March 2016 (£) 2015 (£)

Internally Managed Investments 11,660,000 9,160,000 Total 11,660,000 9,160,000

6.21 The maturity of the investment portfolio was as follows;

31 March 31 March 2016 (£) 2015 (£)

On-call Investments 60,000 60,000 Fixed Term Deposits: Repayable within 1 month 0 0 Repayable 1 month to 3 months 2,100,000 3,000,000 Repayable 3 months to 6 months 9,500,000 3,600,000 Repayable 6 months to 12 months 0 2,500,000 Repayable 12 months to 24 months 0 0 Total 11,660,000 9,160,000

6.22 Investments were placed with the following institutions:

31 March 31 March Type of Institution 2016 (£) 2015 (£) UK Clearing Banks 7,160,000 7,160,000 Foreign Banks 2,000,000 1,000,000 Building Societies 2,500,000 1,000,000 Local Authorities 0 0 Total 11,660,000 9,160,000

Compliance with Treasury Limits 6.23 During the financial year the Council operated within the treasury limits and Prudential Indicators set out in the Council’s Treasury Management Strategy Statement (annex B).

7.0 IMPLICATIONS

7.1 The following implications have been identified: a) Financial The results of the investment strategy effect the funding of the capital programme.

b) Legal There are no legal implications within this report

c) Other (Equalities, Staffing, Planning, Health & Safety, Environmental, Crime & Disorder) There are no additional implications within this report.

Peter Johnson Finance Manager (s151)

Author: Peter Johnson Telephone No: 01653 600666 ext: 385 E-Mail Address: [email protected]

Background Papers: None

COUNCIL 1 SEPTEMBER 2016 Page 137 This page is intentionally left blank TREASURY MANAGEMENT ANNUAL REPORT 2015/16 - RISK MATRIX – ANNEX A

Issue/Risk Consequences if allowed Likeli- Impact Mitigation Mitigated Mitigated to happen hood Likelihood Impact

Credit risk - associated with Could mean loss of 2 D In response to the economic 1 D investing with financial institutions principal sum and interest climate the Council continue that do not meet the credit rating accrued. to adopt a more stringent criteria. credit rating methodology. Market risk - Selection of wrong The poor performance of 3 B The number of investment 2 B type of investment for higher the chosen investment. options have been kept to a return. minimum within the investment strategy. Liquidity risk - Use of fixed term Unable to take advantage 1 B The maturity profile has 1 B

Page 139 Page deposits and / or instruments / of better investment shortened for investments. investments with low marketability options. Funds are Short and medium term cash may mean a lack of liquidity unavailable to cover capital flow management ensures spend. funds are available when needed.

Score Likelihood Score Impact 1 Very Low A Low 2 Not Likely B Minor 3 Likely C Medium Agenda Item 12 4 Very Likely D Major 5 Almost Certain E Disaster This page is intentionally left blank Agenda Item 12

ANNEX B

PRUDENTIAL AND TREASURY INDICATORS

Prudential Indicators

2014/15 2015/16 2015/16 Actual Original Actual

Capital Expenditure £1.331m £1.263m £1.076m

Ratio of financing costs to net revenue stream 1.47% 3.91% 2.11%

Net borrowing requirement -£6.897m -£6.700m -£9.339m

Capital Financing Requirement as at 31 March £1.526m £2.764m £2.351m

Annual change in Capital Financing Requirement £1.272m £1.238m £0.825m

Incremental impact of capital investment decisions Increase in council tax (band D) per annum N/a £1.08 N/a

Treasury Management Indicators

2014/15 2015/16 2015/16 Actual Original Actual

Authorised Limit for external debt - borrowing N/a £20.0m N/a other long term liabilities N/a £ 1.0m N/a Total N/a £21.0m N/a

Operational Boundary for external debt - borrowing N/a £5.0m N/a other long term liabilities N/a £0.7m N/a Total N/a £5.7m N/a

External debt £1.750m £2.070m £1.750m

Upper limit for fixed interest rate exposure Net principal re fixed rate investments N/a 100% N/a

Upper limit for variable rate exposure Net principal re variable rate investments N/a 50% N/a

Upper limit for total principal sums invested for over N/a £1.0m N/a 364 days (per maturity date)

COUNCIL 1 SEPTEMBER 2016 Page 141 This page is intentionally left blank Agenda Item 13

REPORT TO: COUNCIL

DATE: 1 SEPTEMBER 2016

REPORT OF THE: HEAD OF ECONOMY AND INFRASTRUCTURE JULIAN RUDD

TITLE OF REPORT: PROPOSED JOINT PUBLIC ASSETS BOARD FOR YORK, NORTH YORKSHIRE AND EAST RIDING

WARDS AFFECTED: ALL WARDS

EXECUTIVE SUMMARY

1.0 PURPOSE OF REPORT

1.1 To consider a proposal from the York North Yorkshire East Riding LEP Infrastructure Board to also take on the role of Joint Public Assets Board for the York, North Yorkshire and East Riding LEP area. The Board would become the 'Infrastructure and Joint Assets Board' for YNYER. 1.2 To views of Local Government North Yorkshire and York are being sought about this proposal and the draft Terms of Reference (at Annex 1) before the LEP Infrastructure Board makes a decision on this issue and the inclusion of any additional members. 1.3 The consideration of this proposal by Council will allow a Ryedale District Council view to be provided to LGNYY.

2.0 RECOMMENDATIONS

2.1 That Ryedale District Council supports:

(i) the proposal for the LEP Infrastructure Board to take on the role of Joint Public Assets Board for the YNYER LEP area and become known as the LEP Infrastructure and Joint Assets Board: and

(ii) the draft terms of reference for the LEP Infrastructure and Joint Assets Board.

3.0 REASON FOR RECOMMENDATIONS

3.1 A Joint Public Assets Board is a strategic forum made up of public sector land and property holders within a specified area to promote joint working on asset management by the partners. The intention is to influence asset disposals and management in a way that supports the local economy. The Board would also provide a forum to share information and adopt a collaborative approach to assets in the area. Projects undertaken by the Board would be intended to allow public sector property holders to work in partnership to explore and identify opportunities for better

COUNCIL 1 SEPTEMBER 2016 Page 143 use of all public land and to generate economic activity. The Board’s primary aim would be to achieve a more integrated approach to how the public sector uses its assets in the YNYER LEP area to support growth and deliver better value for public money and efficient use of public land.

4.0 POLICY CONTEXT AND CONSULTATION

4.1 This proposal is conducive to the achievement of the following three corporate aims of this Council:  Aim 1 - To create the conditions for economic success  Aim 2 - To meet housing need in the Ryedale District Council area  Aim 5 – To Transform the Council

5.0 SIGNIFICANT RISKS

5.1 There are no significant risks as possession of the assets and final decisions about their use would remain with the owning body. However the Board would provide the opportunity to share information and make joint decisions on strategic objectives and priorities with assets in their ownership with partners and stakeholders.

6.0 REPORT

6.1 The report that was presented to the LEP Infrastructure Board is appended at Annex A and is self explanatory.

JULIAN RUDD HEAD OF ECONOMY AND INFRASTRUCTURE

Author: Julian Rudd, Head of Economy and Infrastructure

Telephone No: 01653 600666 ext: 218

E-Mail Address: [email protected]

COUNCIL 1 SEPTEMBER 2016 Page 144 ANNEX A

York North Yorkshire & East Riding Local Enterprise Partnership

Infrastructure Programme Board

BOARD MEETING: 9th June 2016 REPORT PRESENTED BY: Julian Rudd TITLE OF PAPER: EXPANSION OF BOARD RESPONSIBLITIES TO COVER PUBLIC ASSETS

1.0 Purpose of the Report 1.1 To consider an expansion of the remit of the LEP Infrastructure Programme Board to also take on the role of Joint Public Assets Board for the York, North Yorkshire and East Riding LEP area. The Board would become the 'Infrastructure and Joint Assets Board' for YNYER. 1.2 To seek the views of Local Government North Yorkshire and York on this proposal and the draft Terms of Reference and to make a decision on this issue and additional members of the Board following this consultation. 2.0 Background What is a Joint Public Assets Board? 2.1 A Joint Public Assets Board is a strategic forum made up of public sector land and property holders within a specified area to promote joint working on asset management by the partners. The intention is to influence asset disposals and management in a way that supports the local economy. The Board would also provide a forum to share information and adopt a collaborative approach to assets in the area. Projects undertaken by the Board would be intended to allow public sector property holders to work in partnership to explore and identify opportunities for better use of all public land and to generate economic activity. The Board’s primary aim would be to achieve a more integrated approach to how the public sector uses its assets in the YNYER LEP area to support growth and deliver better value for public money and efficient use of public land. How would it work? 2.2 Possession of the assets would remain with the owning body however the Board would provide the opportunity to share information and make joint decisions on strategic objectives and priorities with assets in their ownership with partners and stakeholders. The Board would be expected to take a more collaborative approach to the management of assets and provision of opportunities for development to support the economy and deliver housing targets.

2.3 It is not intended that the Homes and Communities Agency (which would become a member of the new board) or local authorities would delegate ownership decisions on their existing assets to the Assets Board. Formal decisions on specific assets affecting them would remain with the party who owns the interest in question.

2.4 A draft Terms of Reference for a YNYER Assets Board is at Annex 1.

COUNCIL 1 SEPTEMBER 2016 Page 145 What difference could it make? 2.5 Public sector bodies are often large landowners in their area and by all organisations using their resources and assets in a collaborative way the Board could help ensure that decisions made by the partner organisations are of best value and impact for the local area, particularly in terms of supporting growth.

Membership of the Board? 2.6 Such boards can have a mixture of representatives, dependant on which public bodies are within their boundaries. It is proposed that initially the Homes and Communities Agency be invited to join the YNYER local authorities on this Infrastructure Board as it expands its remit to use of public assets. Other potential future members (either full time or in relation to specific issues and sites) could include:  Network Rail  Central government departments, especially those who deliver local services such as MoD, DWP/ Job Centre Plus, HMRC, MoJ  Health bodies e.g. NHS Property Services, CCGs, NHS trusts  Police / Ambulance / Fire and Rescue  Educational bodies e.g. universities and colleges  Housing associations Such boards are not necessarily restricted to public estate holders and can be open to attendance from quasi-public sector organisations and private sector stake holders in the area.

Key Outcomes 2.7 These are expected to include:  Mapping of all assets, including both leasehold and freehold, can help to identify opportunities for improving the efficiency and effectiveness of the combined public estate.  Freeing up surplus land for housing, employment and regeneration to support implementation of the LEP Strategic Economic Plan  Work with the HCA and local partners and potential investors to build a pipeline of investable and deliverable housing investment schemes across YNYER which are aligned to local and national priorities – initially focussed on accelerating the delivery of new homes to around 5,000 a year in YNYER, in accordance with agreed Local Plan housing figures  Identify housing investment priorities and timeframes across YNYER to provide a framework for increased public and private investor confidence and for maximising value from national and local public sector land assets, seeking public and private investment partners where appropriate  Surplus assets ear-marked for disposal to generate capital receipts which can be re- invested to stimulate economic growth and / or used to reduce deficits  Identify opportunities for co-location and making better use of space to reduce the footprint of the public estate and provide opportunities for growth and revenue savings (as costly maintenance and lease costs are minimised)  Identifying potential for economic growth and for integration and joint working via stronger joint working and understanding of partner’s strategic aims and alignment.

COUNCIL 1 SEPTEMBER 2016 Page 146 2.8 Boards require local leadership with senior management and political buy in to drive delivery and ensure progress is made. A shared vision is critical to collaborative working in partnership, although there will be projects where not all partners would collaborate if the project does not meet their strategic aims.

2.9 Experience with such boards elsewhere suggests it is more practical (and avoids unnecessary bureaucracy) to develop an assets board through existing structures involving key stakeholders - hence this proposal to expand the role of the existing LEP Infrastructure Board, where all the local authorities in YNYER are already represented.

Recommendation LEP Infrastructure Board to:-  consider taking on the role of Joint Public Assets Board for the YNYER LEP area and being known as the LEP Infrastructure and Joint Assets Board  consult with LGNYY on this proposal and the draft terms of reference at Annex 1

Following the outcome of this consultation the LEP Infrastructure Board would make a decision on:  accepting the role of Joint Public Assets Board for the YNYER LEP area, thereby becoming the 'LEP Infrastructure and Joint Assets Board'  which other public sector partners should become full or part-time members of the Board, in addition to the HCA and Chair of the YNYER Housing Board

COUNCIL 1 SEPTEMBER 2016 Page 147 ANNEX 1

The York, North Yorkshire and East Riding Joint Public Assets Board Draft Terms of Reference Background  The Local Authorities within YNYER will form a Joint Public Assets Board with the HCA to influence asset disposal and investment in a way that supports the growth of the YNYER economy. The JPAB role will be undertaken by the existing LEP Infrastructure Programme Board, where all YNYER local authorities are represented, with addition of the Homes and Communities Agency and the Chair of the YNYER Housing Board. The Board will be know as the Infrastructure and Joint Assets Board.  The Board’s primary aim will be to achieve a more integrated approach to how the public sector uses its assets in YNYER, to support economic growth and deliver better value for public money.  It is not intended that the HCA or local authorities or other public sector partners would delegate ownership decisions on their existing assets to the Board.  Although initially the Board will focus on assets controlled by / under the management of local authorities and the HCA - over time there is a clear aspiration for the Board to widen its remit to cover the assets / land of other public sector agencies and Government departments.

Role  The Board’s primary aim is to achieve a more integrated approach to how the public sector uses its assets in YNYER to support economic growth and deliver better value for money.  Identify and consider the reuse and investment in strategic land and assets within YNYER  Influence policy and strategy for housing and regeneration within YNYER  Influence the defining of priorities and development of a pipeline of projects to promote and deliver housing growth and regeneration within YNYER  Support the alignment of housing and regeneration investment across YNYER by the LEP, HCA, local authorities and other public sector partners and the private sector.  Maintain and keep up to date databases of relevant YNYER information including on surplus land and assets, brownfield land, housing stock, and other housing and regeneration related data.  Support the value enhancement and promotion of Government and publicly owned assets in YNYER, taking a central role in shaping the policy and decisions for the disposal and reinvestment of these assets to maximise impact on economic and housing growth.  Develop, oversee and manage a pipeline of publically owned assets / sites across YNYER - ensuring early visibility of proposed disposal routes amongst all partners engaged in the work of the Board.  Support the public sector partners in working together to explore and promote the benefits that can be gained by considering their respective assets in the locality as a single asset base/ balanced programme; set up a governance structure that will underpin this partnership arrangement for the long term; and implement and promote the opportunities that arise.

Focus The Board will initially focus on assets controlled by / under the management of the HCA and local authorities, except where major opportunities arise to redevelop publicly owned land and assets in YNYER. Over time there is a clear aspiration for the Board to widen its remit to cover the assets/ land of other publicly owned land, including Government departments.

It is anticipated that the Board will be the place for discussions and agreement on a range of inter- related factors, including:

COUNCIL 7 JULY 2016 Page 148  Supporting the growth agenda and housing targets, in line with LEP and Housing Board strategy for YNYER and HCA initiatives  The role of the Board in future transformational projects  Opportunities to align local and national activity more closely, including delivery of HCA programmes and funding streams  A more open and transparent approach to understanding the disposal pipeline, including the use of a common database of sites across local and national partners operating in YNYER  Financial flexibilities – such as deferred receipts  Adding value to assets (e.g. via the planning process) which can then be retained locally  Joint management of risk and reward

Although the initial focus will be on HCA and local authority land and property, there is potential for the Board to become engaged in a YNYER-wide ‘One Public Estate’ Programme in the future (subject to the approval of national and local partners). In the meantime the Board will support partner local authorities who wish to continue/ pursue a ‘One Public Estate’ approach - with the disposal of any national assets resulting from this approach falling within the scope of this Board.

Objectives Objectives stated for the Board can be summarised as: 1. Achieve a considerably more integrated approach to management of assets across the public estate 2. Improve release of property and land to accelerate growth and economic regeneration and achieve value realisation from the public estate 3. Deliver the housing and regeneration ambitions and targets set out in Local Plans, the Housing Strategy and Strategic Economic Plan for YNYER 4. Work in partnership with the YNYER Housing Board to deliver more homes and meet housing needs 5. Use public assets to lever in other public and private sector investment 6. Increasing the efficient use of space to enable the public sector to lower its property running costs, achieve cost reductions and carbon reduction 7. Improved customer access quality, organisational communication and working dynamics by bringing together uses in the same property

Activities The Board (and its individual members) will work towards a joint strategic approach to:  Agree a typology of assets to be included for consideration by the Board  Develop, oversee and manage a pipeline of publically owned assets/ sites across YNYER - ensuring early visibility of proposed disposal routes amongst all partners engaged in the work of the Board  Raise awareness of the Board, act as ambassadors for the Board’s work and ensure that the identified priorities of the Board are reflected in the property related strategies and policies of the organisation they represent on the Board  Build trust and improve working relationships for the benefit of all partners  Ensure the availability of accurate, reliable and up-to-date data on property / land assets in order to inform asset management and capital investment decisions.  Simplify the means by which assets can be shared between partners  Align opportunities to maximise the combined potential of assets  Monitor and receive progress reports for individual projects  Act as arbiter in situations where there are competing demands

COUNCIL 7 JULY 2016 Page 149 Focus areas Areas for the focus of activity are identified as: a. Strategic priorities o Work with other public sector partners, including relevant Government Departments and local agencies, to maximise the value and outputs of the Board o Create economic benefit and delivery of housing, employment and investment from the management, use and disposal of public land o Support increased delivery of housing targets and the meeting of housing needs in conjunction with the YNYER Housing Board b. Development opportunities o Release land for economic growth, housing and community benefit, use assets to lever in other public and private sector investment and generate added value and operational efficiencies by co-locating services c. Asset Management o Develop a network of public sector land owners to encourage cooperation in meeting strategic and operational objectives, in particular the delivery of housing and growth targets for YNYER. d. Mapping, typology and pipeline development o Develop openness and visibility of the details of assets held by the public sector partners. o Develop an understanding of how all public sector assets within YNYER are held, used and can assist strategies for growth and investment.

Constitution As per the Terms of Reference for the LEP Infrastructure Programme Board, except:

1. Board Membership Only members of the Board have the right to attend Board meetings. However, other individuals such as external or technical advisers may attend for all or any part of a meeting, as and when appropriate/necessary. If a vote on a decision is required, only formal Board Members shall be able to exercise a vote. If a member is unable to attend a meeting due to absence, illness or any other cause, they can nominate a substitute to attend in their place. Initial membership of the Board consists of the LEP Infrastructure Programme Board and a representative of the Homes and Communities Agency, together with the Chair of the YNYER Housing Board. Other public sector partners may be invited to join the Board on a formal full or part-time basis by agreement of the Board, or on an informal occasional basis in relation to appropriate items for consideration.

2. Governance Arrangements and Decision Making It is not intended that organisations would delegate ownership decisions on their existing assets to the Board. The Board will be established as a local strategic assets forum. Formal decision making on specific property assets and transactions affecting them will remain with the party who owns the interest in question. The Board will seek to influence the disposal of surplus Government assets, including land ownership options to support growth. Within the existing YNYER Governance structure it is anticipated that this Board will report to Local Government North Yorkshire and York and to the YNYER LEP Board. Depending on the focus and desired outcome, individual projects and interventions can be delegated to the YNYER Chief Executives Group, YNYER Directors of Development, LEP Performance Group or the YNYER Housing Board.

COUNCIL 7 JULY 2016 Page 150 Recommendations regarding strategic housing and regeneration policy and strategy in YNYER will be reported to the LEP Board / Housing Board / LGNYY as appropriate for decision. Recommendations relating to investments by the Homes and Communities Agency will be reported to the HCA Board for decision.

3. Appointment of Chair and Vice Chair The Board shall nominate a Chair and Vice Chair from amongst its membership.

4. Quorum The quorum necessary for the transaction of business shall be 5, including the Chair or Vice Chair. A duly convened meeting of the Board at which a quorum is present shall be competent to exercise all or any of the powers or take any decision that would be available to the full Board, except that full Board approval is required to any changes in the constitution of the Board.

5. Revisions to Terms of Reference The Board may agree revisions to these terms of reference as it considers appropriate. It will not agree changes which require agreement by member organisations except where prior agreement from those member organisations has been obtained.

6. Board Members Liabilities There is nothing in these terms of reference that is intended to create personal liabilities for Board Members individually or collectively.

7. Frequency of Meetings As per the Terms of Reference for the LEP Infrastructure Programme Board.

8. Confidentiality/ Declarations of Interest Information received and discussed by the Board must be treated as confidential in so far as the Freedom of Information acts permit. Each member on the Board will register any potential conflicts of interest at the point of appointment/ re-appointment. It is the responsibility of Board members to inform the Chair of any changes to interests which may need be declared during a Board Members term of office.

9. Working Protocol for any Transactions a) Property transactions between partner organisations should normally expect to be based on market factors such as price, risk, etc. b) Transactions below market price can take place at partner’s discretion or where social benefits are deemed by all relevant parties to be sufficient to offset abated values. Subject to relevant approvals required. c) No partner will attempt to ransom another. d) Where agreement between partners on valuation issues cannot be reached the issue will be referred to an independent third party valuer for adjudication. e) Any property transactions between public sector agencies will need to take account the potentially different statutory and administrative guidance under which they operate. f) The appropriate delivery vehicle for joint or collaborative projects will be established through a process of option development and appraisal.

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