Budget Meeting 04Th March 2021 Documents Listed As to Follow

COUNCIL - Budget Meeting

04th March 2021

Documents listed as to follow.

Item Appendix / Report Plans / Report / Appendices Page No.

6 Appendix 1 Draft Service Plans 2021-2022 02 - 103

10 Report Council Tax Setting 2021/22 104 - 112

11 Appendix 1 Medium Term Financial Strategy 2021/22 to 2025/26 113 - 143

13 Appendix 1 Prudential Indicators & MRP Policy 144 - 151

14 Appendix 2 Draft Corporate Investment Strategy 2021/22 152 - 162

14 Appendix 3 Draft Commercial Investment Strategy 2021/22 163 - 181

1 Human Resources & Payroll Service Overview This Service Plan sets out how Human Resources & Payroll will contribute towards meeting the Corporate Priorities for 2021/22. The main objective of Human Resources & Payroll is to ensure that, through effective HR policies and practice with advice to managers and staff, the Council has the people skills and resources to deliver its priorities. Key activities in Human Resources & Payroll include:  Human Resources Policy development and implementation  Employee Relations (recruitment, performance improvement, change management, absence management, discipline, grievance  Learning & Development  Payroll: monthly payroll for employees and Councillors; Elections payroll, all including expense claims, HMRC interface, Pensions interface

Service Area Resources The following table sets out the staffing resources:

Service Area Full Time Equivalents Human Resources Policy 0.4 Employee Relations 1.4 Learning & Development 0.4 Payroll 1.4 Total 3.6

The budget for the service for 2021/22 is as follows:

Service Area Expenditure Income Net Budget £ £ £ Human Resources 176,184 0 176,184 Payroll 53,331 0 53,331 Total 229,515 0 229,515

2 Service Performance

Link to Strategic Predicted Annual Corpora 2020/21 Comments 2021/22 Risk for Ref. No. Action 2020/21 Target achieved improvement te Plan Target Target 2021/22 Outturn trend Priority target Corporate Plan Indicators These measure the delivery of the Corporate Plan 2020-24 and are monitored and reported twice-yearly to Council None for this service area

Key Performance Indicators These measure Corporate performance for key service areas and are monitored and reported quarterly HRKPI1 The average number of CP5 9 days per 8 days per If Q1, Q2 & Q3 9 days 12 Quarterly working days lost due to FTE FTE levels continue, per FTE LGInform sickness absence per we will achieve Metric4 FTE employee - the target. quarterly Q1 = 1.43 Q2 = 2.09 Q3 = 2.13

It is very important to note that all Covid-19 related absence data has been recorded separately from the main

3 Link to Strategic Predicted Annual Corpora 2020/21 Comments 2021/22 Risk for Ref. No. Action 2020/21 Target achieved improvement te Plan Target Target 2021/22 Outturn trend Priority target sickness absence data. As a result Covid-19 related sickness absence is not included in any of the reported District Council’s sickness absences statistics in the period from April to December 2020.

. NEW 2021-22 Corporate Plan Indicators These measure the delivery of the new Corporate Plan (2020-24) and are monitored and reported quarterly to Council None for this service area Service Performance Indicators These are measures that service areas use to manage their own performance. They are published every year HRKP2 Time taken in days for 4 weeks 4 weeks 4 weeks 6 discipline and grievances issues to be resolved by

4 Link to Strategic Predicted Annual Corpora 2020/21 Comments 2021/22 Risk for Ref. No. Action 2020/21 Target achieved improvement te Plan Target Target 2021/22 Outturn trend Priority target managers (from dates of letter to employee excluding any absence) HRKP3 Time taken to fill a 4 months 4 months 4 months 6 vacancy from date of resignation to date new employee starts work by service HRKP4 Annual turnover rate 10% 10% 10% 6 (number of leavers as a percentage of the total headcount by service)

Other Work-streams

Link to Service Action Action and Planned Outcome Corporate Timescale Actual Outcome No. Plan 2020/21 HR01 Complete development of Monitoring & CP05 March 21 Carried forward into 2021/22 given greater Surveillance Policy and the Drugs & priority of Covid-19 response work in 2020/21 Alcohol at Work Policies and take through and decision to review Sickness Absence consultation and approvals to Management Policy as a greater priority implementation HR02 To develop, consult and seek approval for CP05 March 21 Completed with approval at Governance & a new Agile Working Policy Resources January 2021

5 Link to Service Action Action and Planned Outcome Corporate Timescale Actual Outcome No. Plan HR03 To identify a rolling programme to review CP05 March 21 Completed December 2020 with policy existing HR policies accessibility project ER01 To work with the Director of Resources on CP05 January 21 Completed with insource of Accounts any HR implications on the Revenue & Receivable and Accounts Payable in January Benefits contract 2021 ER02 To work with the Director of Community & CP05 March 21 Initial project meetings held. Project will continue Environmental Services and the new Clean into 2021/22: Awaiting ongoing project plan from & Green Manager on a review of Clean & Director Of Community & Environmental Green to include reviewing the staffing in Services light of possible retirements LD01 To enable managers to maximise the CP05 March 21 Completed January 2021 with comprehensive opportunities for apprenticeships to meet report to Corporate Leadership Team government requirements and maximise the apprenticeship levy in 20/21 2021/22 HR01 Following consultation complete the Providing July 21 Flexible Working Policy approvals to customers implementation with a high quality experience HR02 Complete development of a Monitoring & Providing March 22 Surveillance Policy and take through customers consultation and approvals to with a high implementation quality experience HR03 Complete development of a Drugs & Providing March 22 Alcohol at Work Policies and take through customers consultation and approvals to with a high implementation

6 Link to Service Action Action and Planned Outcome Corporate Timescale Actual Outcome No. Plan quality experience HR04 Routine review of existing Noise at Work Providing March 22 Policy and Vibration at Work Policy customers with a high quality experience ER01 Work with the Director of Community & Providing March 22 Environmental Services and the new Clean customers & Green Manager on a review of Clean & with a high Green to include reviewing the staffing in quality light of possible retirements experience ER02 Work with the Director of Corporate & Providing July 21 Customer Services on May 21 elections customers through to payment of those worked on the with a high election quality experience ER03 Work with Corporate Leadership Team on Providing December 21 the Covid-19 recovery plan customers with a high quality experience ER04 Undertake a staff survey, reviewing the Providing January 22 2019 action plan in order to develop a new customers survey action plan with a high quality experience LD01 To enable managers to maximise the Providing March 22 opportunities for apprenticeships within customers

7 Link to Service Action Action and Planned Outcome Corporate Timescale Actual Outcome No. Plan staffing budget available, to meet with a high government requirements and maximise quality the apprenticeship levy in 21/22 experience LD02 Work with Corporate Leadership Team to Providing March 22 deliver a learning & development plan, customers agreed by July 21 (Corporate, vocational, with a high safety and mandatory through ’LOLA’) quality experience

8 RESOURCES

Service Overview Resources has a key role in delivering sound financial management and supporting the District Council to deliver on its Corporate Plan and key objectives, especially the Corporate Savings Target. This Service Plan sets out how Resources will contribute towards meeting the Corporate Priorities for 2021/22. The main objectives of Resources are:

Area of Activity Objectives Financial Services  To manage the District Council’s finances efficiently and effectively;  To develop a sustainable financial plan;  To provide prompt and accurate billing, collection and recovery of Sundry Debts;  To make payments to suppliers and other creditors.

Internal Audit  To provide an independent, objective assurance service in compliance with the Public Sector Internal Audit Standards by evaluation of risk management, control and governance processes;  To ensure compliance with the Strategic and Operational Audit Plans;  To enhance governance provisions through corporate advice.

Revenues & Benefits  To provide prompt and accurate billing, collection (delivered by and recovery of all Council Tax, Non-Domestic Chesterfield Borough Rates and Overpaid Housing Benefits; Council)  To provide prompt processing of claims for Housing Benefit, Local Housing Allowance and Council Tax Support and to reduce fraud and error within the system.

ICT  To manage the District Council’s ICT provision (provided via shared efficiently and effectively service) Data Protection  To manage the Council’s arrangements for data protection.

9 Key activities in Resources include:

Service Area Key Activities Financial Services  Preparing the Council’s spending plans;  Monitoring income and expenditure against spending plans;  Monitoring and updating the medium term financial plan to ensure that the Corporate Savings Target will be achieved;  Preparing the annual Statement of Accounts;  Managing the Council’s investments;  Arranging insurance cover and dealing with claims;  Making payments to suppliers;  Producing bills, collecting amounts due and taking recovery action when appropriate in respect of all Sundry Debts.

Internal Audit  Carrying out objective examination, evaluation and reporting on the adequacy of the control environment as a contribution to the proper, economic, efficient and effective use of resources on the basis of a risk assessment of auditable areas;  Providing advice on financial controls upon request.

Revenues & Benefits  Producing bills, collecting amounts due and taking (delivered by recovery action when appropriate in respect of all Chesterfield Borough Council Tax, Non-Domestic Rates and Overpaid Council) Housing Benefits;  Processing claims for Universal Credit, Housing Benefit, Local Housing Allowance and Council Tax Support & Discretionary Hardship Reliefs.  Making payments to suppliers and other creditors that are prompt and accurate.

ICT  Providing high quality, reliable and cost effective (provided via shared ICT services. service)  Providing development support to new projects and improvements.  Maintaining IT security and PSN compliance.

Data Protection  Ensuring that the Council complies with data protection legislation and good practice.

10 Service Area Resources The following table sets out the staffing resources:

Service Area Full Time Equivalents Service Director 1 (joint Chief Finance Officer & Data Protection Officer) Financial Services 12.43 Internal Audit 2 (Management is bought in from Chesterfield Borough Council) Revenues & Benefits N/A (delivered by Chesterfield Borough Council) ICT N/A (provided via shared service)

The budget for the service for 2021/22 is as follows:

Service Area Expenditure Income Net Budget £ £ £ Director of Resources 103,056 0 103,056 Financial Services 1,094,379 20,000 1,074,379 Internal Audit 92,181 0 92,181 Revenues & Benefits 804,102 418,278 385,824 Administration (includes payment to Chesterfield Borough Council for service delivery) Housing Benefit Payments 10,641,467 10,681,030 (39,563) ICT 466,442 0 466,442 (includes payment to NEDDC for service delivery) Grants & Subsidies 23,285 0 23,285 Other Services 674,971 0 674,971 Miscellaneous / Non Distributed Costs Total 13,899,883 11,119,308 2,780,575

11 Service Performance

Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target Corporate Plan Indicators These measure the delivery of the Corporate Plan 2020-24 and are monitored and reported twice-yearly to Council CORP Make savings to CP5 Continue to NA On hold pending See below 20 16 achieve a sustainable explore the outcome of budget opportuniti the government Continue a programme es to review of of efficiency savings deliver Council funding. and service reviews with £250,000 An a target of generating efficiency £1m in savings by savings announcement 2020/21 and/or on the review is additional expected in income by autumn 2021 2023/24 CP20/P Continue to explore CP20 N/A N/A N/A N/A On hold pending On hold. 25 E12 opportunities to deliver the outcome of No target £250,000 efficiency the government set. savings and/or review of additional income by Council funding. 2023/24 An announcement on the review is expected in autumn 2021

12 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target Key Performance Indicators These measure Corporate performance for key service areas and are monitored and reported quarterly Payment of undisputed TA2 AE15 99% 99% Up 99% 3 invoices within 30 days CP5 Collection rates have been Proportion of council tax ARB1 CP5 98.4% 97.0% Down impacted by the 98.4% 12 collected within the year coronavirus pandemic Collection rates Proportion of non- have been ARB2 domestic rates collected CP5 97.3% 89.5% Down impacted by the 97.3% 20 within the year coronavirus pandemic Average time to process ARB3 CP5 24 days 15 days Up 24 days 9 new HB / CTS claims Average time to process HB / CTS changes in ARB4 CP5 8 days 7 days Up 8 days 12 circumstances

Service Performance Indicators These are measures that service areas use to manage their own performance. They are published every year Financial Services Prepare Draft Statement 31 May of Accounts (with no 2020 qualifications by (statutory 27 August 31st July AE 2 external audit) to be CP5 - 9 deadline 2020 2021 approved by the Head extended of Resources by the to 31 statutory deadline

13 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target August 2020) Collection rates have been ARB 5 % of Sundry Debtors impacted by the CP5 93% 85% Down 93% 8 (REV1) collected coronavirus pandemic

Internal Audit Audit completions have been impacted by the decision for the internal auditor to work on business support grants % of planned audits IA1 CP5 90% 46% Down 90% 6 completed in year during the coronavirus pandemic. The proposed revenue budget for 2021/22 includes additional audit resources.

ICT

14 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target Survey Now biennial underway; ICT - Overall user surveys. Next Not ICT32 CP5 85% awaiting 8 satisfaction survey due applicable results January 2023

Resolve ICT calls at first ICT29 point of contact CP5 40% 55% - 40% 8

Resolve ICT calls within ICT28 SLA Target Time CP5 80% 80% - 80% 8

Revenues and Benefits Accuracy of processing new housing benefit and ARB 6 CP5 90.0% 93.0% - 90.0% 12 council tax support claims Overall % of Council Tax collected for the ARB 9 CP5 99.3% 99.5% - 99.3% 8 prior year’s charges (current year -2) Overall % of Non- Domestic Rates ARB 10 collected for the prior CP5 98.2% 98.3% - 98.2% 12 year’s charges (current year -2) Collection rates Overall % of Council have been Tax collected for the ARB 11 CP5 99.3% 99.0% Down impacted by the 99.3% 12 previous year’s charges (current year -1) coronavirus pandemic

15 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target Overall % of Non- Collection rates Domestic Rates have been ARB 12 collected for the CP5 98.0% 97.9% Down impacted by the 98.0% 20 previous year’s charges coronavirus (current year -1) pandemic % of new Council Tax ARB 13 Benefit claims CP5 60.0% 69.0% Up 60.0% 12 (BEN2) processed within 14 days % of new Rent ARB 14 Allowance claims CP5 65.0% 77.0% Up 65.0% 12 (BEN3) processed within 14 days

Other Work-streams

Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan 2020/21 RES13 Director of Resources: Prepare for delivery of CP5 30 Sept. Completed. Contract with Arvato was extended to 17 Revenues and Benefits service when current 2020 January 2021. Chesterfield BC delivering service from contract expires in October 2020 18 January 2021. RES14 Financial Services: Prepare for updated CP5 31 Dec The deadline to implement this has been delayed by accounting standard on leasing & assess 2020 CIPFA for one year. It was not possible deliver this implications for the Council during 2020/21 due to other emerging pressures and priorities. RES15 Financial services: Prepare for HMRC’s CP5 31 July In progress. Expected to be completed by 31 March “Making Tax Digital” 2020 2021.

16 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan HMRC deadline now extended to 31 March (Extended 2021 to 31 March) RES21 Financial Services: Implement changes CP5 31 March In Progress. In February 2021 CIPFA confirmed that required to comply with CIPFA’s Financial 2021 full compliance would not be expected at 31 March Management Code 2021. Report and action plan to Governance & Resources Committee 11 March 2021.

RES23 ICT: Consider move to Office 365: Prepare CP5 30 June Completed. options paper for Joint ICT Committee 2020 RES24 ICT: Move to Cyber Essentials Plus as CP5 31 Compliance is still required and no dates have been replacement for PSN compliance December confirmed for its deprecation. Move to Cyber 2020 Essentials Plus Certification postponed whilst current PSN certification in place.

RES25 ICT: Replace internet to provide more capacity CP5 31 August New internet connection with increased capacity and at less cost 2020 reduced cost has been installed. Existing contract ends Sept 2021.

2021/22 RES14 Financial Services: Prepare for updated CP5 31 Dec accounting standard on leasing & assess 2021 implications for the Council RES21 Financial Services: Implement changes CP5 31 March required to comply with CIPFA’s Financial 2022 Management Code (as reported to Governance & Resources Committee 11 March 2021) RES24 ICT: Move to Cyber Essentials Plus as CP5 31 Dec replacement for PSN compliance 2021

17 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan RES26 ICT: Implement Microsoft 365 to maintain CP5 31 supported applications and provide improved December collaboration tools. 2022 RES27 ICT: Implement Mobile Device Management CP5 31 tools to improve security and device December management. 2021 RES28 ICT: Complete the 2020/21 User Survey CP5 31 Dec action Plan. 2022 RES29 Financial Services & ICT: Complete upgrade CP5 30 of Income management system and September installation of new module for recurring card 2021 payments RES30 ICT: Install new Uninterrupted Power Supply CP5 31 March 2022 RES31 ICT: Replace network switches CP5 31 March 2022 RES32 ICT: Replace SQL server CP5 31 March 2022

18 CORPORATE AND PLANNING POLICY

Service Overview This Service Plan sets out how Corporate Policy & Planning Policy will contribute towards meeting the Corporate Priorities for 2021/22.

The objectives of Corporate Policy & Planning Policy are:

1. To drive forward initiatives that lead to service and value for money improvements 2. To focus the District Council on delivering its priority outcomes 3. To ascertain local community’s needs, views, perceptions and aspirations through consultation 4. To improve opportunities for harder-to-reach groups to access services and facilities 5. To improve social, economic and environmental well-being through the development and implementation of effective planning policies

Key activities in Corporate Policy & Planning Policy include:

 Corporate and service planning according to Members’ priorities  Organising public consultation through online surveys, focus groups, workshops, and stakeholder meetings  Developing in partnership with other organisations involvement of hard-to- reach groups including young people, disabled people, businesses and older people  Formulating, publishing, monitoring and reviewing the District Council’s planning policies  Assisting communities prepare and adopt Neighbourhood Plan

Service Area Resources

The following table sets out the staffing resources:

Service Area Full Time Equivalents Corporate Policy 0.7 Planning Policy 2.6

The budget for the service for 2021/22 is as follows:

Service Area Expenditure Income Net Budget £ £ £ Corporate Policy 54,454 0 54,454 Planning Policy 286,988 40,000 246,988 Total 341,442 40,000 301,442

19 Service Performance

Annua Link to Strategic Predicted Target l Corporate 2020/21 Comments 2021/22 Risk for Ref. No. Action 2020/21 achieve impro Plan Target Target 2021/22 Outturn d vemen Priority target t trend Corporate Plan Indicators These measure the delivery of the Corporate Plan 2020-24 and are monitored and reported twice-yearly to Council CP20/PR Carry out the Prosperity Commenc Commenc Adopti N/A Review of Carry out 16 16 Derbyshire Dales ing ed on now Derbyshire Dales the Local Plan review December September targete Local Plan Derbyshir process as 2020 2020 d for commenced in e Dales determined by June September 2020 - Local Plan Council 2023 Now scheduled review not adoption June 2023 process Dec as 2022 determine d by Council CP20/PR Provide ongoing Prosperity N/A N/A  N/A Ongoing support to Support 17 Officer support to Ashbourne, the neighbourhood areas Brailsford and Kirk Brailsford including technical Ireton and and procedural advice Neighbourhood Ashbourn Plans. e Neighbour hood Plans through

20 Annua Link to Strategic Predicted Target l Corporate 2020/21 Comments 2021/22 Risk for Ref. No. Action 2020/21 achieve impro Plan Target Target 2021/22 Outturn d vemen Priority target t trend the statutory process towards adoption by June 2021 CP20/PL Appoint Consultants Place Oct 2020 Aug 2020  N/A DELETE 3 to Assist with Preparation of Climate Change SPD CP20/PL Publish for public Place Jan 2021 Feb 2021 x N/A DELETE 4 consultation Climate Change SPD CP20/PL Complete adoption of Place N/A N/A N/A N/A On target Complete 5 SPD on Climate adoption of Change by June 2021 SPD on Climate Change by June 2021 CP20/PE Undertake Annual People Nov 2020 Nov 2020  N/A Report to Undertake 7 Survey using the Governance & annual Online Residents Resources survey Panel to assess Committee on 19 using the November 2020 Online

21 Annua Link to Strategic Predicted Target l Corporate 2020/21 Comments 2021/22 Risk for Ref. No. Action 2020/21 achieve impro Plan Target Target 2021/22 Outturn d vemen Priority target t trend resident satisfaction Residents’ with DDDC Services Panel to assess resident satisfaction with DDDC Services by November 2021 Implement Policy Prosperity Ongoing Achieved  N/A DELETE HC11 in the Derbyshire Dales Local Plan through the determination of planning applications Service Performance Indicators These are measures that service areas use to manage their own performance. They are published every year POL5 % of priority Equality All 100% 100%  3 completed between 100% Impact Assessments Nov 20 and Feb 21 identified in Equalities Plan completed POL8 % of residents who People 68% 62%   Gathered annually 68% agree that the Council through on-line panel in autumn 2020.

22 Annua Link to Strategic Predicted Target l Corporate 2020/21 Comments 2021/22 Risk for Ref. No. Action 2020/21 achieve impro Plan Target Target 2021/22 Outturn d vemen Priority target t trend provides value for money POL9 % of residents who People 68% 62%   Gathered annually 68% are very or fairly through on-line panel satisfied with how the in autumn 2020 council runs things NI5 % of people who are People 93% 88%   Gathered annually 93% satisfied with their through on-line panel local area as a place in autumn 2020 to live BV106 % of new homes built Prosperity 75% TBC TBC After Annual 75% on previously Survey in April 2021 developed land NI54 Net additional homes Prosperity 300 TBC TBC After Annual 300 provided Survey in April 2021 NI159 The total no. of net Prosperity 120% TBC TBC After Annual 120% additional dwellings Survey in April 2021 that are deliverable as a % of the planned housing provision for the 5 year period PP3 % of new homes built Prosperity 15% TBC TBC After Annual 15% during the year, which Survey in 2021 are affordable housing

23 Annua Link to Strategic Predicted Target l Corporate 2020/21 Comments 2021/22 Risk for Ref. No. Action 2020/21 achieve impro Plan Target Target 2021/22 Outturn d vemen Priority target t trend PP4 % score in Housing Prosperity 114% 187%   HDT Published in 120% (New) Delivery Test January 2021

Other Work-streams Link to Service Action Action and Planned Outcome Corporate Timescale Actual Outcome No. Plan 2020/21 POL15 Publish the District Council’s Equality All January Achieved January 2021 information 2021 POL16 Publish the District Council’s Equality All April 2020 New Equality Objectives approved by objectives Governance and Resources Committee in August 2020 PP20 Publish Authority Monitoring Report Prosperity December Achieved February 2021 2020 PP21 Provide ongoing Officer support to Prosperity Ongoing Ongoing support being provided to Brailsford neighbourhood areas preparing and Ashbourne Neighbourhood Plans Neighbourhood Plans, including technical and procedural advice PP22 Publish Annual Brownfield Land Register Prosperity December Achieved February 2021 2020 PP23 Publish Infrastructure Funding Statement Prosperity December Published on District Council website in December 2020 2020 – New Annual Requirement 2021/22

24 Link to Service Action Action and Planned Outcome Corporate Timescale Actual Outcome No. Plan POL15 Publish the District Council’s Equality All January information 2022 PP20 Publish Authority Monitoring Report Prosperity December 2021 PP22 Publish Annual Brownfield Land Register Prosperity December 2021 PP23 Publish Infrastructure Funding Statement Prosperity December 2021

25 ECONOMIC DEVELOPMENT, TOURISM AND PARTNERSHIPS

Service Overview

This Service Plan sets out how Economic Development, Tourism & Partnerships will contribute towards meeting the Corporate Priorities for 2021/22.

The objectives of Economic Development, Tourism & Partnerships reflect the priorities of the Derbyshire Dales Economic Plan which are to:

1. Accelerate the delivery of strategic growth sites 2. Provide 1:1 support to businesses and facilitate access to finance, particularly targeting growth companies 3. Support initiatives to enhance productivity growth in both established and higher value sectors 4. Promote the Derbyshire Dales as a business location 5. Assist employers access externally funded programmes and finance to invest in workforce development, retain more young people in the area and improve recruitment.

Priorities for 2021/22 also include pursuing additional actions identified within the Council’s COVID-19 Economic Recovery Plan including to;

6. Administer COVID discretionary grant funding 7. Increase engagement with strategically important medium sized and larger firms 8. Re-shape its Regeneration Services to drive investment in brownfield and other key strategic housing/employment sites Support the delivery of partner initiatives and promotion of externally funded grant programmes to support business recovery Key activities in Economic Development, Tourism & Partnerships include:

 Working with partners to secure delivery of Ashbourne Business Park and the Phase 1 housing allocation at Ashbourne Airfield  Continue to pursue funding to unlock employment land at Middleton Road/Cromford Road, Wirksworth  Working with the proposed operator and Matlock Community Vision to regenerate the Bakewell Road town centre development site, Matlock  Facilitating discussions between Homes England and private landowners to accelerate delivery of strategic sites and investigate the feasibility of the Council pump-priming sites  Delivering, as part of the D2N2 Growth Hub, a high quality, free, 1:1 Derbyshire Dales Business Advice service to SMEs with priority given to businesses impacted by COVID and with growth potential to support recovery

26  Providing practical assistance to help SMEs to access external grant and loan support to deliver growth projects and COVID grants  Maintaining a regular programme of business engagement including monthly e-newsletters, promoting partner events and annual Dales CEOs Forum with more regular contact with medium and larger sized firms  Supporting the Council’s Procurement Hub to simplify processes, increase social, economic and environmental considerations in major procurements and improve SME engagement  Encourage partners to deliver events to support smaller businesses impacted by the EU transition  Promoting SME take-up of external programmes to enable local businesses to develop and invest in green energy and carbon reduction schemes  Assist delivery of the DEP Economic Recovery Plan for Derbyshire  Work with DCC to deliver the Vision Derbyshire 1:1 business start-up service  Support roll out of the ‘ShopAppy’ scheme throughout the Derbyshire Dales  Marketing the Derbyshire Dales as a business location  Encouraging employers to invest in workforce development and training post COVID utilising LEP programmes  Working with Business Peak District, DEP, D2N2, Peak District Partnership, Defra and other partners to lobby for the needs of rural areas and secure public investment into the Derbyshire Dales  Working with Digital Derbyshire to identify gaps in business coverage, increase take-up of broadband and tackle harder to reach business locations  Raising the profile of local products by promoting the ‘Inspired by the Peak District’ brand to Derbyshire Dales businesses  Producing information for visitors, increasingly in digital download form, to enable, inform and enhance their stay  Undertaking short-break marketing campaigns  Coordinating cost-neutral Visitor Information Points throughout the district

Service Area Resources

The following table sets out the staffing resources:

Service Area Full Time Equivalents Economic Development 3.5 Tourism 0.5 Partnerships 0.1

The budget for the service for 2021/22 is as follows:

27 Service Area Expenditure Income Net Budget £ £ £ Economic Development 954,393 730,750 223,643 (incl. business support grants) Tourism and 88,337 2,630 85,707 Partnerships Total 1,042,730 733,380 309,350

28 Service Performance

Strateg Annual ic Risk Link to Predicted Target 2020/21 improv Comments for Ref. No. Action Corporate 2020/21 achieve 2021/22 Target Target ement 2021/2 Plan Priority Outturn d trend 2 target Corporate Plan Indicators These measure the delivery of the Corporate Plan (2020-24) and are monitored and reported twice-yearly to Council CP20/P Work with public Prosperity Dec 20 In progress AMBER Commencement of Completion of the 16 R1 & private sector but delayed scheme delayed A52 Roundabout due to partners to COVID due to COVID. by July 2021. complete Works completed infrastructure on A52 Complete link road improvements roundabout end of by October 2021 at Ashbourne October 2020 and Airfield works on link road Industrial to commence Estate, opening April 2021 up 8 ha of new employment land CP20/P Pursue funding Prosperity March Delayed AMBER Feasibility work DELETE – add as 16 R2 opportunities to 2021 due to delayed due to Service Indicator unlock COVID COVID. employment Landowner's land and Development support initial Team previously phase of furloughed. Further

29 Strateg Annual ic Risk Link to Predicted Target 2020/21 improv Comments for Ref. No. Action Corporate 2020/21 achieve 2021/22 Target Target ement 2021/2 Plan Priority Outturn d trend 2 target workspace site investigation development at information Middleton Road, required and Wirksworth by revised March 2021 Development Appraisal CP20/P Secure Prosperity March Target met Green £800,000 District Secure completion 16 R3 investment to 2021 Council investment of first phase of enable agreed at development by development of November 2020 March 2022 the Bakewell Council and Road town investment from centre site, operator agreed in Matlock by principle. Draft March 2021 Heads of Terms prepared and planning application due to be submitted March 21 CP20/P Continue to Prosperity Support Target met Green 7 businesses Continue to R4 provide support 75 supported to provide support to to 75 business access D2N2/EU 75 established established es Growth Grants -

30 Strateg Annual ic Risk Link to Predicted Target 2020/21 improv Comments for Ref. No. Action Corporate 2020/21 achieve 2021/22 Target Target ement 2021/2 Plan Priority Outturn d trend 2 target businesses by EU grants totalling businesses by March 2021, £190,000 in grant March 2022 enabling the assistance creation of local jobs NOTE: Re Covid grants: Economic Development Team / Business Advice Service re- directed to support business survival inc. handling grant enquiries, advice on Government support measures and administration of COVID Discretionary Grant Fund. Economic Development Team / Business Advice Service re- directed to support

31 Strateg Annual ic Risk Link to Predicted Target 2020/21 improv Comments for Ref. No. Action Corporate 2020/21 achieve 2021/22 Target Target ement 2021/2 Plan Priority Outturn d trend 2 target business survival. 162 Dales businesses awarded grants through the COVID Discretionary Grant Fund (with support from Internal Audit and Policy, plus Finance, BSU and Transformation) involving significant case work. Team now delivering Additional Restrictions Grant CP20/P 9 Dales Prosperity Support 9 On track Green Economic DELETE R5 businesses business Development supported to es Team / Business access grants or Advice Service re- loans from directed to support D2N2, COVID business

32 Strateg Annual ic Risk Link to Predicted Target 2020/21 improv Comments for Ref. No. Action Corporate 2020/21 achieve 2021/22 Target Target ement 2021/2 Plan Priority Outturn d trend 2 target Government survival, in and EU to particular the enable growth administration of by March 2021 COVID business grants. Several hundred businesses signposted to available support or provided with initial advice. Launched in November 2020, a further 136 businesses have been awarded grants through the discretionary COVID Additional Restrictions Grant fund to date.

33 Strateg Annual ic Risk Link to Predicted Target 2020/21 improv Comments for Ref. No. Action Corporate 2020/21 achieve 2021/22 Target Target ement 2021/2 Plan Priority Outturn d trend 2 target CP20/P Launch a Prosperity May 20 Behind AMBER Delayed due to re- Re-start place- R6 Derbyshire schedule allocation of team based marketing Dales Place resources to with a Derbyshire Branding support COVID Dales ‘open for Initiative to business survival. business’ promote the Narrative campaign to area as a prepared, x3 promote the area business business for economic location champions videos investment by July completed and 2021 Draft Invest in Dales video prepared. New webpages in preparation. Launch anticipated by July 2021

CP20/P Re-shape Prosperity NEW NEW NEW NEW Re-shape R19 Regeneration Regeneration Services to Services by March drive 2022 investment in brownfield and

34 Strateg Annual ic Risk Link to Predicted Target 2020/21 improv Comments for Ref. No. Action Corporate 2020/21 achieve 2021/22 Target Target ement 2021/2 Plan Priority Outturn d trend 2 target other key strategic housing/employ ment sites, Service Performance Indicators These are measures that service areas use to manage their own performance. They are published every year ED2 No. of new start CP1 6 TBC Vision Derbyshire 20 businesses Business business start-up assisted growth and programme agreed job November 2020 creation (Economy Pilot) – awaiting DCC recruitment of posts Hold business Prosperity 4 events Postpone / N/A Events programme 2 events by March events to help by March d due to impacted by 2022 increase SME 2021 COVID COVID restrictions productivity, – businesses exporting and actively referred to innovation, and D2N2, EMC and promote BPD events held opportunities in on-line the low carbon economy

35 Strateg Annual ic Risk Link to Predicted Target 2020/21 improv Comments for Ref. No. Action Corporate 2020/21 achieve 2021/22 Target Target ement 2021/2 Plan Priority Outturn d trend 2 target Deliver Prosperity 2 events Postpone / N/A Events programme 1 event by March partnership by March d due to impacted by 2022 events to 2021 COVID COVID restrictions support employers with recruitment and develop better links between employers and schools Support visitor Prosperity 4 grants Service / N/A Visitor Economy DELETE economy by March re- businesses businesses to 2021 directed supported with access grant to COVID support from the support discretionary Delivering a business grants World Class survival Visitor Economy Programme NEW Pursue funding Prosperity NEW NEW NEW NEW NEW March 2022 opportunities to unlock employment land and

36 Strateg Annual ic Risk Link to Predicted Target 2020/21 improv Comments for Ref. No. Action Corporate 2020/21 achieve 2021/22 Target Target ement 2021/2 Plan Priority Outturn d trend 2 target support initial phase of workspace development at Middleton Road, Wirksworth

Other Work-streams Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan 2020/21 NEW Increase engagement with local SMEs Prosperity September Postponed due to COVID – carry forward to through a Meet the Buyer / How to do 2020 2021/22 business with the Council event in partnership with other Derbyshire / Peak District authorities in support of the Council’s Procurement Strategy NEW Deliver marketing campaigns focused on Prosperity May and Postponed due to COVID – carry forward to the short breaks market Sept 2020 2021/22 2021/22 Increase engagement with local SMEs Prosperity March through a Meet the Buyer / How to do 2022 business with the Council event in partnership with other Derbyshire / Peak

37 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan District authorities in support of the Council’s Procurement Strategy Deliver marketing campaigns focused on Prosperity September the short breaks market 2021 Administer discretionary COVID Additional Prosperity March Restrictions Grant allocation for Derbyshire 2022 Dales - £2.088m spent

38 Corporate and Customer Services

Service Overview

Corporate and Customer Services has a key role in supporting the District Council to deliver on its Corporate Plan and key objectives. The department provides specialist knowledge and designs pathways through technology to serve internal (and external) customers to enable them to reach their stated objectives and key performance indicators.

The objectives of Corporate and Customer Services are to:

 Guide the Council in minimising the risk of a legal challenge.  Ensure that all transactions, and contracts with partner organisations are legally compliant  Increase opportunities to communicate and transact business electronically  Enable the electors of the Derbyshire Dales to register and exercise their democratic right to vote  Increase openness, transparency and probity in respect of the Council’s decision making processes  Provide high quality support services to Councillors in discharging their decision making and representative roles  Promote awareness and understanding of the District Council to internal and external audiences  Provide an effective business support service to the Council’s departments  Provide a high quality and responsive first point of contact to customers  Put customers at the heart of everything we do

Key activities in Corporate and Customer Services include:

 Business Support

o This team delivers a centralised administrative service to all Departments of the Council including procurement, first point of contact enquiries and data processing. o Ensuring the customer is at the heart of everything we do by reviewing our customer service standards.

 Communications and Marketing

o The District Council operates a multi-channel approach to communicating with the Council’s clients and partners. Electronic communications is our number one priority. The Team manages the web site, press enquiries, social media contacts, internal

39 communications and corporate communications such as Dales Matters. o Lead on social media activities across the range of District Council services. o Promote all that the District Council does

 Democratic Services

o Co-ordinate meetings of the Council and its decision making and consultative meetings. o Member Development and Support Services o Conduct an annual canvass of the Electoral Register o Organise elections at local and national level

 Digital Transformation

o The digital transformation team have the responsibility of increasing and improving the council approach to and use of digital technologies to increase and improve the access to and efficient delivery of services.

 Legal and Land Charges

o The legal team provides a comprehensive service to protect the Council’s interests and to aid enforcement of our regulatory services. o Land Charges is a function which responds to property enquiries fro individuals and search companies. o Information Governance and Data Protection for the whole Council to supported and advised by this team Service Area Resources

The following table sets out the staffing resources:

Service Area Full Time Equivalents Head of Service 1 Business Support 22.9 Communications and Marketing 1.9 Democratic Services 4.44 Digital Transformation 3 Legal and Land Charges 6.6

40 The budget for the service for 2021/22 is as follows:

Service Area Expenditure Income Net Budget £ £ £ Director of Corporate 81,472 0 81,472 Services Business Support 825,660 20,170 805,490 Communications and 103,512 3,975 99,537 Marketing Democratic Services 876,641 39,231 837,410 Digital Transformation 169,760 0 169,760 Legal and Land 90,583 111,398 (20,815) Charges Total 2,147,628 174,774 1,972,854

41 Service Performance

Strategic Link to Predicted Annual 2020/21 Target Comments 2021/22 Risk for Ref. No. Action Corporate 2020/21 improvement Target achieved Target 2021/22 Plan Priority Outturn trend target Corporate Plan Indicators These measure the delivery of the Corporate Plan 2020-24 and are monitored and reported twice-yearly to Council CP20/PE Introduction of 1 faster, and Website improved website and home By April homepage including People - - TBC page 2020 greater functionality launched and mobile access by April 2020 CP20/PE Implement a new 2 payment portal to expand payment options (accepting Debit Cards, Credit Cards and PayPal) By April and ensure fully People tbc - - - TBC 2020 integrated payments are added to all future online forms requirement payments

42 CP20/PE Introduce 3 integrated Direct By Debit payments on Achieved in People - tbc - - August TBC selected online November 2020 2020 forms

CP20/PE Implemented: Implement a ‘My 5 13 waste Account’ feature to services, 10 track service clean and green requests & services, 5 increase the payment information services (e.g. By April available to you People - tbc - - TBC paying for 2020 automatically in the council tax, ‘My Account’ e.g. business rates, Waste collection invoices etc.) dates, Councillor and car park details, weather discount season alerts etc. tickets CP20/PE Continue to 9 maintain and publicise a variety of offline customer By contact channels People - tbc - - - March TBC for the District 2021 Council’s services through Dales Matters and other media

43 CP20/PR Review the Action moved to Include 15 Council’s April 22 due to in procurement delays caused 2022/3 processes to by Covid Service encourage local People - tbc - - Plan TBC firms to do business with the District Council by April 2021 CP20/PE Expand the People Increas Increase 6 number of services e the of 20 that are fully number trackable trackable by March of services 2022 services that are fully trackabl e by March 2022, by 20, across all departm ents Key Performance Indicators These measure Corporate performance for key service areas and are monitored and reported quarterly NONE FOR THIS SERVICE AREA

44 Service Performance Indicators These are measures that service areas use to manage their own performance. They are published every year CS3 Increase proportion CP5/ 10% +32% tbc Website visits 5% 6 of visits to the People impacted by the website loss of four popular leisure centre pages due to outsourcing of the service. below target>> CS4 Increase the CP5 10% 15% tbc At saturation 10% 6 percentage of People point on Twitter. followers on District People Loss of leisure Council’s Facebook, centre Facebook Twitter and e pages offset by increases Communications elsewhere, incl. Newsletter accounts Illuminations page that now has 30,000 followers CS5 Increase the CP5 75% 50% 58% The outturn is 50% 6 percentage number People slightly higher of electronic than originally responses to the anticipated but household enquiry remains lower than the target. In canvass which preparation for compiles the the 2021 canvass electoral register we will look at other ways of promoting

45 electronic responses by using the .gov notify service. Following their review of the 2020 canvass the canvass reform team at the Cabinet Office may also provide additional guidance on how to improve this rate. CS6 % searches People 78% Not tbc Delete indicator 6 returned in 10 days measured or less CS7 % of customers CP5 60% Not yet N/A Delete indicator 6 satisfied with People measured internal BST CS8 % of customers People 60% Not yet tbc Delete indicator 6 satisfied with measured internal Legal support. CS9 % of lost telephone CP5 3% 3%  New telephone 3% 6 calls handled by People N/A platform to be BSU installed 2021 CS10 Offer you 24/7 People N/A N/A N/A N/A 80 services 45 6 online access to available online more services by by end of 2020

46 introducing new self-service forms. CS11 Enable you to pay People N/A N/A N/A N/A N/A 15 6 online for more Council services by the integration of services payment options onto new payment portal CS12 Design our services People N/A N/A N/A N/A N/A 10 6 so that you are kept informed of progress by implementing full trackable e-services CS13 % of customer calls People N/A N/A N/A 70% 6 answered in the first minute

Other Work-streams Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan 2020/21 CS2 Deliver procurement contract savings in Prosperity By March Completed and achieved line with Procurement Strategy 2021 CS3 Review electoral canvass procedure in Mandatory Timescales Completed and Electoral Register published on 1 light of imminent legislative change to be December 2020

47 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan confirmed by legislation CS4 Deliver more and detailed training in People Ongoing Procurement training was postponed in response to procurement to employees involved in through the Covid-19 pandemic low risk procurement 2020/21 CS6 Publish a Website accessibility People October Completed in accordance with the statutory statement 2020 requirement CS7 Organise and deliver the PCC Elections Mandatory May 2020 Elections were postponed until May 2021 in response 2020 to the Covid-19 pandemic. CS8 Review SIDD and launch page on web People By Complete. New SIDD launched in Autumn 2020 site September 2020 CS9 Support external communication team Place During 2020 This was not necessary as all communications activity on launch of new waste service and was delivered internally garden waste service CS10 Investigate case management system in - During Not completed. This will be reviewed again during legal 2020/21 2021/22 CS11 Review enforcement concordat and - During Complete. New policy approved on 16 December major policy 2020/21 2020 CS12 Complete signage for major parks. Place During Not completed due to pressures arising from the 2020/21 response to the pandemic. This will be completed in early 2021/22. CS13 Deliver the following Member Training Mandatory During Not complete. These are priorities for 2021/22. courses: 2020/21 o Social Media o RIPA

48 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan Review Member Development Working Group Improve access to Members’ Portal

CS14 GDPR: Mandatory During o Redaction training 2020/21 o See additional resources to deal with Subject Access Requests CS15 Consider capturing satisfaction with web People After live site interaction and CXM experience date CS16 Review complaints procedure to pass People G and R Completed responsibility to service manager level. February 2020 Commence Lean reviews of key council People March 2021 Initial priority areas (Waste and Clean & Green) services & processes to ensure the completed. Process to continue in to other areas customer is at the heart and waste is reduce Commence ‘health checks’ on all key People March 2022 systems to ensure they are utilised to their fullest and remain the most appropriate tool by March 2022 Establish a regional Council People March 2021 Target not met due to impacts of Covid - to roll over to transformation forum to share best 2022 practise between local Council’s by March 2021 Review the Council’s parking contracting People March 2021 Target not met due to impacts of Covid - to roll over to arrangements to explore virtual permits 2022

49 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan and expand in car park payment options by March 2021 (Fully implement additional digital parking services by March 2022) Expand the number of services on the People March 2022 ‘My Account’ feature that are fully trackable 2021/22 CS1 Organise and deliver the PCC and Mandatory May 2021 County Elections and any by-elections in May 2021 CS2 Introduce committee management system People March 2022 software designed to improve openness, transparency, efficiency and engagement in respect of the Council’s democratic and governance processes. CS3 Investigate the feasibility for introducing a People March 2022 casework system for Members to manage their ward work CS4 Deliver more and detailed training in People Ongoing procurement to employees involved in low throughout risk procurement 2021/22 CS5 Consider business case for the People March 2022 introduction of a Case Management System in Legal Services to improve efficiency and customer service CS6 Complete signage for major parks. Place June 2021

50 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan CS7 Deliver the following Member Training People March 2022 courses: o Social Media o RIPA Review Member Development Working Group Improve access to Members’ Portal CS8 GDPR: People March 2022 o Redaction training o See additional resources to deal with Subject Access Requests CS9 Review the effectiveness of arrangements People March 2022 to consider and hear cases in respect of alleged breaches of the Member Code of Conduct CS10 Undertake a review of the Council’s People March 2022 Constitution, specifically to include the Responsibility for Functions (inc. Scheme of Delegation), Council Procedure Rules and Financial Procedures and Contract Standing Orders

51 Regulatory Services

Service Overview This Service Plan sets out how Regulatory Services will contribute towards meeting the Corporate Priorities for 2021/22. The objectives of Regulatory Services are:

1 Development  Manage the development and use of land to Management maintain a high quality environment;  Assist in securing the provision of affordable housing;  Safeguard the built and natural heritage of the District;  Manage the sustainable growth of the District through implementation of the Local Plan;  Deliver a high quality front loaded development management service. 2 Environmental  Improve the standard and quality of food and Health food outlets;  Improve workplace health and safety standards;  Help to provide a safe and healthy environment;  Improve private sector housing standards;  Increase the supply of decent homes that meet the needs of their occupants;  Encourage healthy lifestyles. 3 Estates and  To manage the District Council’s land and Facilities property holdings in line with the Asset Management Plan to prudently, efficiently, effectively and safely support Corporate Objectives 4 Licensing  Work with partner agencies to contribute towards a reduction in crime, disorder and public nuisance;  Provide a high quality licensing service to licence holders and new applicants.

Key activities in Regulatory Services include:

52 1 Development  Offer comprehensive and timely pre- Management application service accessed through the website to promote good quality development from developers and householders;  Determine applications for planning consent in a timely manner  Defend the District Councils position when its planning decisions are challenged;  Investigate and act upon unauthorised development;  Preserve and protect the historic environment of the District;  Protect landscape features of amenity value;  Provide expertise and advice on design and landscape issues;  Work with other council departments to promote the sustainable business and housing growth of the district to accord with the local plan 2 Environmental  Undertake a range of interventions aimed at Health improving food safety in approximately 1100 local food businesses;  Undertake a range of interventions aimed at improving health and safety in approximately 1500 businesses;  Participate in regional and national food sampling programmes;  Regulate certain industrial processes that have been permitted by the District Council;  Monitor, assess and report on air quality throughout the District;  Respond to requests for service in respect of statutory nuisance, environmental issues and general public health;  Enforce water safety legislation in respect of private water supplies;  Respond to requests to improve private sector housing standards, particularly in the private rented sector;  Administer a system of grants to assist disabled householders in accessing and using their homes;  Work in partnership to bring empty properties back into use;

53 3 Estates and  Managing the District Council’s land and Facilities property holdings to support Corporate Priorities.  Managing and maintaining the District Council’s property assets efficiently, safely and in compliance with legislation to support service objectives.  Supporting Community Groups through the Community Asset Transfer process.  Undertaking asset valuations to CIPFA/RICS standards for incorporation in the Council’s accounts  Managing the procurement and use of energy and utilities at District Council properties and monitoring usage with the aim of reducing emissions. 4 Licensing  Issue licences for alcohol sales, entertainment, gambling, taxis, animal welfare, scrap metal and cosmetic piercing;  Issue consents for street trading;  Issue permits for street collections and house- to-house collections  Process applications for licences and consents whilst balancing the needs of the applicants with those of the community;  Liaise with the police and other partners to ensure that the community remains safe;  Provide a comprehensive advice service on all licensing matters for applicants and members of the public.

Service Area Resources The following table sets out the staffing resources:

Service Area Full Time Equivalents Development Management 10.6 Environmental Health 10.7 Estates and Facilities Licensing 4

54 The budget for the services for 2020/21 are as follows:

Service Expenditure Income Net Expenditure Building Control 55,297 0 55,297 Civil Contingencies 17,001 0 17,001 Development Management (incl. climate change) 663,590 495,618 167,972

Environmental Health 455,299 31,681 423,618 Estates 503,519 51,278 452,241 Licensing 170,202 172,006 (1,804) Total for Regulatory services 1,864,908 750,583 1,114,325

55 Service Performance

Annu Link to al Strategic Predicted Corporate 2020/21 Target impro Comments 2021/22 Risk for Ref. No. Action 2020/21 Plan Target achieved veme Target 2021/22 Outturn Priority nt target trend Corporate Plan Indicators These measure the delivery of the Corporate Plan 2020-24 and are monitored and reported twice-yearly to Council CORP9 TA5 - Provide CP2 50 60 76 adaptations Provide 6 adaptations to the completed adaptation homes of 50 disabled s to 70 people by March homes of 2021. disabled people by March 2022 CP20/P To work with DFRS Place October N/A N/A N/A Preliminary To review L13 and other partners to 2020 discussions were status of review and relaunch underway with events the Council’s Bonfire DFRS and other LA under Safety Campaign by partners to work-up Covid October 2020 and launch a restrictions suitable campaign, in Q1 however the redistribution of DFRS officer resources, Covid

56 priorities for all stakeholders and ultimately event restrictions resulted in this matter being put on hold until further notice. CP20/ Publish an Air Quality Place July 2020 On track N/A Air Quality Report Carry out 6 PL14 Monitoring Report by & March submitted and a Detailed July 2020 and where 2021 published Oct 2020 Assessme necessary commence Detailed nt by April appropriate mitigation assessment 2021 and measures by March commissioned for progress 2021 area of non- to an Air compliance. Quality Managem ent Area and Action Plan as necessary by March 2022 CP20/P Implement measures Place 2% Data Clear Lead March L1 to achieve a 2% unavailabl Consulting Report 2022 reduction in CO2 from e currently agreed Oct 2020. local authority Recruitment buildings as underway for compared to the Climate Change Officer, who will

57 previous calendar be responsible for year, by March 2021 undertaking assessment work upon commencement of employment. CP20/P Develop a strategy to Place March Delayed Agreed projects at March L2 improve energy 2021 DDDC buildings will 2022 efficiency at all achieve this buildings of asset outcome value £10,000 and above by March 2021. CP20/P Identify opportunities Prosperit March  Potential sites Secure R13 for the provision of y 2021 identified at Q2, and planning permanent Traveller Council resolution to permission site and conclude move forward with for a negotiations with site made on 2nd permanent landowners by July September 2021. Traveller 2020. Delegated authority site by to proceed with 2022 application for planning permission given to Director of Housing. CP20/ Air Quality - Carry Place Carry out N/A N/A N/A N/A 6 PL14 out a Detailed a Detailed Assessment, and Assessme progress to an Air nt by April Quality Management 2021 and

58 Area and Action Plan progress as necessary to an Air Quality Managem ent Area and Action Plan as necessary by March 2022. CP20/ Provide adaptations Prosperit Provide 70 PR10 to the homes of y adaptatio disabled people ns to 70 homes of disabled people by March 2022 CP20/ Complete the Place Complete PL17 transfer and re-build the of Ashbourne transfer Memorial Pavilion and re- and refurbishment of build of the Bandstand and Ashbourn paths e Memorial Pavilion and

59 refurbish ment of the Bandstan d and paths by Sept 21 CP21/P Implement Year 1 Place March 22 L15 actions of the adopted Climate Change Strategy and report on effect of actions in terms of CO2 reductions.

Implement decarbonisation works at Ashbourne Leisure Centre Key Performance Indicators These measure Corporate performance for key service areas and are monitored and reported quarterly NI 157i % of Major planning >75% 100% Achieved applications determined in 13 weeks

NI 157ii % of Minor planning >77% Q3 92.6% Achieved applications

60 determined in 8 weeks

NI 157 % of Other planning >90% Achieved iii applications Q1 - Q3 determined in 8 92.5% weeks

BV 204 % of appeals allowed <30% Achieved against LA’s decision Q1- to refuse planning Q3 20% application

Development Management

61 reduced performance DM6 Proportion of 4 week CP1 >75% 68%   4 week pre- >75% 6 pre-application apps are more enquiries dealt with in involved and 28 days usually involve accompanied site visit or meetings. May need to review DM7 Proportion of 2 week Prosperity >83% 83%  Objective >83% 6 pre-application achieved enquiries dealt with in 14 days

Environmental Health

62 restrictions and lockdown culminating in business sector closure and re- opening. This has frustrated the food inspection programme with officers adhering to Food Standards Agency advice on such matters. EH3 Proportion of Place 100% Inspection effort 100% 6 Environmental Permit Below channelled to end of interventions completed target high risk sites in March that are due within the (15%) line with DEFRA 2022 year guidance under Covid EH4 Proportion of Place 100% Trending 100% 6 Environmental Permit On track towards 100% end of sites that are ‘broadly for those March compliant’ inspected under 2022 Covid EH5 Undertake programme Place >10 Below Business >10 end 8 of private water supply target restrictions and of March intermittent 2022

63 risk currently business closure assessments/reviews (5) frustrated progress

Estates and Facilities

Service Performance Indicators These are measures that service areas use to manage their own performance. They are published every year Link to Strategic Predicted Annual Corporate 2021/22 Target Comments 2022/23 Risk for Ref. No. Action 2021/22 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target AMP 2 To review asset CP3 March x Some sites Dec 2021 register and uniform 2020 reviewed but system land overall review delayed by lack of ownership recording resources and system to check and Covid 19 update accuracy of records. For main towns of Matlock, Bakewell, Wirksworth and Ashbourne AMP To review asset CP3 Partial Some sites 2b register and uniform reviewed but system land overall review ownership recording delayed by lack

64 system to check and of resources update accuracy of and Covid 19 records –for Matlock Bath, Darley Dale, Hathersage, Bradwell and Tideswell AMP 4 To review underused OTHER Dec 2020 Ongoing Further Land Dec 2021 or surplus buildings to Holdings Review establish whether they reports to be should be sold or presented during whether they could 2021 contribute to the councils objectives key objectives of economic development and affordable housing AMP 6 To procure condition OTHER Dec 19 Dec 20 Service procured Complete surveys of all and Surveys on d. buildings of asset site 1st QTR 2021 value £10,000 and above. AMP7 To procure and OTHER March Ongoing PAT testing , Sept update statutory 2020 Display Energy 2021 property compliance Certificates and surveys information some Asbestos covering asbestos, surveys complete fire risk assessments, water hygiene and

65 energy performance of all buildings of asset value £10,000 and above. AMP 8 To analyse condition CP3 December Delayed Condition Decemb survey data to 2020 Surveys on site er 2021 establish a costed Dec 20 awaiting maintenance results to allow programme in order to development of maintain assets in programme good condition.

AMP9 To have a strategy in CP3 December Delayed Awaiting AMP8 Decemb place to bring all 2020 above er 2021 buildings of asset value £10,000 and above to condition grade B.(Satisfactory, performing as intended ) AMP12 To establish and OTHER December Ongoing Some works Oct 2021 clarify the ownership 2019 complete by Nov and maintenance 2020 liability of war memorials and develop a maintenance plan for their upkeep.

66 AMP13 To review grazing OTHER December Commercial Complete rights, other 2019 Board disbanded agricultural landholdings and woodland and report to Commercial Board AMP17 To support and CP1 April 2021 Ongoing  CAT of 3 sites Apr 2022 enable Community completed Asset Transfers of land and buildings where appropriate e.g. complete building assessments

Licensing

67 gambling or scrap metal LIC 3 Undertake taxi PLACE At least 2 2 No Planned At least 2 4 enforcement operation in operations with March 2020 partners cancelled due to Covid. NEW Undertake all animal PLACE N/A N/A N/A N/A 100% 9 welfare licence inspections that require action post Covid

Other Work-streams

Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan 2020/21 Development Management DM1 Implement findings of Business Process Prosperity September Some significant progress made and UNIFORM Re-Engineering exercise 2021 Enterprise purchased and installed. However delay in decision over how configuration should be undertaken prior to launch. This is now programmed to be undertaken in 2021 due to lack of availability of key staff involved in CRM project response to pandemic

68 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan DM2 Ensure that planning officers, enforcement Prosperity September Training not yet undertaken but will logically officers and support staff receive training 2021 follow from configuration of Enterprise. This will to be able to work in new ways in line with occur later than originally planned BPR recommendations by fully implementing the integration of Enterprise work management system DM3 Complete 100% implementation of Prosperity September Fully implementing review dependent on Development Management Review 2021 integrating new ways of working which will follow from introduction of Enterprise. This will occur later than originally planned for the reasons above Environmental Health To tackle the technical shortfall in staffing Place March 2021 Following approval recruited additional management resource through successful recruitment - to capacity in November 2020. As this is now starting to help enhance resilience and smarter working ‘bed-in’, additional technical resource shall be backfilled aligned with service need going forwards (Q1 & Q2 2021/22). Presently shortfall is covered with a contracted resource, although activities compromised under Covid. Roll-out the recharging regime for re- People March 2021 The decision to implement charging for this activity inspection under the Food Hygiene Rating has been put on hold under Covid given on-going Scheme ensuring positive website interface service pressures and the uncertain trading conditions for many businesses. Estates and Facilities Licensing LI11 Review historic caravan site licences and PLACE March Project postponed – delayed further by COVID prepare for electronic storage/processing. 2021

69 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan LI12 Review and re-publish Licensing Act 2003 PLACE January Consultation delayed. Will be completed by Policy – Alcohol, Entertainment and Late 2021 March 2021. Night Refreshment Licensing Policy LI13 Produce and publish a Policy for House- PLACE March On target. to-House and Street Collections 2021 2021/22 Development Management DM4 Ensure that Enterprise is successfully Prosperity September configured and becomes mainstream to 2021 the way in which planning applications and other work streams are processed DM8 Ensure that staff are fully trained to work Prosperity September with Enterprise so that it is rolled out 2021 across the DM Service DM9 Begin the implementation of paperless Prosperity September working for less complex applications 2021 DM10 Implement Policy HC11 in the Derbyshire Prosperity Ongoing Dales Local Plan through the determination of planning applications DM11 Commence work on the Council’s tree Place March management project and measure the 2022 effectiveness of the action taken Environmental Health To tackle the shortfall in technical resilience Place September within the Department through a combination 2021 of permanent staff and time limited graduate placement

70 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan To provide targeted responses to Covid Place March 2022 demands on the services as determined by government priorities, partnership working and local need To review operational matters as necessary Prosperity September due to EU exit – activities shall include 2021 document realignment and associated charging in the first instance concerning export certification Estates and Facilities

Licensing LI11 Review historic caravan site licences and PLACE March prepare for electronic storage/processing. 2022 LI14 Interim review of taxi licensing policy to PLACE July 2021 take account of DfT National Standards LI15 Work with in-house partners to develop PEOPLE March online payments for licensing through the 2022 CRM system LI16 Review and re-publish Gambling Act 2005 PLACE January Licensing Policy – Statement of Principles 2022

71 Community & Environmental Services

Service Overview

This Service Plan sets out how Community & Environmental Services will contribute towards meeting the Corporate Priorities for 2021/22.

The objectives of Community & Environmental Services are:

1 Arts  Support and raise awareness of arts in Derbyshire Dales 2 Neighbourhoods  Improve the welfare of dogs by promoting responsible dog ownership  Review and consult on the new PSPO’s  Improve parking services having regard to disabled users  Make reasonable parking charges, with concessions and discounts where appropriate  Work with the police and other partners to tackle issues relating to crime and safety  Provide a public space CCTV service  Lead on the issuing of Community Protection Warnings and Notices  Lead on Community Trigger Review applications  Lead on any Domestic Abuse Homicide reviews 3 Events  Enable events to take place safely on District Council parks and open spaces.  Successful delivery of the Matlock Bath Illuminations  Successful delivery of The Cow Shed Beer Festival  Continue to run different events from the ABC  To improve the health and wellbeing of residents and visitors to the district  To support the local economy 4 Clean & Green  Keep public places free from litter, detritus & dog fouling  Deliver core standards for the service  Maintain Parks and Open Spaces and provide play provision in safe working order  Provide well managed, clean and well equipped public convenience facilities

72  Manage street cleanliness and parks to create a clean and well maintained environment  Reduce pest-related health problems and nuisance.  Provide a reliable and safe vehicle fleet and perform taxi inspections  Deliver burials service and maintain cemeteries  Provide a sustainable burial service that conforms with health and safety  Deliver Highway Agency agreement on behalf of DCC 5 Community  Promote greater use and enjoyment of parks, Development recreation grounds and playgrounds  Make reasonable charges, with concessions and discounts where appropriate  Increase the number of physically active adults  Develop and improve networks within communities  Build resilience in communities by engaging key stakeholders in considering alternative service delivery  Making best use of community assets 6 Waste &  Increase the proportion of household waste Recycling that is recycled and/or composted  Reduce the waste delivered to landfill  Deliver a high quality waste/recycling service to residents 7 Agricultural  Develop the Agricultural Business Centre as a Business Centre resource for farming, business, events and tourism and for health and community activities  Draw residents and tourists to town centres using the Farmers Market and the ABC as attractions  Support the livestock markets

Key activities in Community & Environmental Services include:

1 Arts  Support local groups through initiatives such as Live & Local  Deal with enquiries from artists/arts groups 2 Neighbourhoods  Manage and maintain car parks  Manage off-street parking enforcement  Develop and manage Cemeteries  Manage the stray dog service  Undertake enforcement for the council’s PSPOs  Provision of area forums

73  Support/co-ordinate the delivery of crime prevention projects  Manage public space CCTV system  Adopt an ASB Policy and associated actions 3 Events  Support the local community in event organisation.  Operate the Illuminations and Cow Shed beer festival without a financial loss  Continue to develop the market offer at Bakewell. 4 Community  Reduce levels of inactivity e.g. Physical activity Development programmes  Support/co-ordinate the delivery of diversionary activities  Increase levels of participation in activity e.g. Physical activity programmes  Place Based working in priority areas  Support the development of local clubs  Develop and manage playgrounds and recreations grounds  Manage and maintain Green Flag  Community Engagement – Identify opportunities for Community Asset Transfers 5 Clean & Green  Mechanical and manual sweeping of villages. Town Centres and public places  Maintenance of parks and open spaces in play equipment  Scheduled gully cleansing  Emptying litter bins across the District  Verge and Flail mowing  Maintenance of Cemeteries and closed churchyards  Winter maintenance, leaf and snow clearance  Cleansing public conveniences  Carry out treatments for public and non-public health pests  Maintain fleet in safe working order 6 Waste and  Fortnightly collection of residual waste Recycling  Fortnightly collection of mixed dry recycling materials  Fortnightly collection of garden waste  Weekly collection of food waste  Promote waste reduction, re-use, recycling and composting  Provide bulky waste service  Provide trade waste service to local businesses  Develop a chargeable garden waste service for 2021.

74 7 Agricultural  Accommodate the weekly livestock markets Business Centre  Hire out facilities for business and conference use  Hold and support a variety of events at the ABC and on adjacent land  Support Bakewell Show  Manage monthly Farmers Market

Service Area Resources

The following table sets out the staffing resources:

Service Area Full Time Equivalents Neighbourhoods 4.6 Events 2 Community Development 4.8 (+ apprentice) Clean & Green 67 Waste Management 3.5

The budget for the service for 2021/22 is as follows:

Service Area Expenditure Income Net Budget £ £ £ Director of Community 117,613 0 117,613 & Environmental Services* Arts Strategy 6,007 0 6,007 Bakewell ABC 275,266 362,624 (87,358) Clean and Green 2,843,166 557,611 2,285,555 Community 790,237 43,910 746,327 Development Events 350,220 420,205 (69,985) Neighbourhoods 806,477 2,590,424 (1,783,947) Waste Management 4,332,380 2,264,696 2,067,684 Total 9,521,366 6,239,470 3,281,896

*incl. central costs for department

75 Service Performance

Annua Link to l Strategic Predicted Corporat 2020/21 Target impro Comments 2021/22 Risk for Ref. No. Action 2020/21 e Plan Target achieved veme Target 2021/22 Outturn Priority nt target trend Corporate Plan Indicators These measure the delivery of the Corporate Plan 2020-24 and are monitored and reported twice-yearly to Council CP20/P Work with contractors Place 4 EV 24 EV  Achieved May Develop L7 with a view to chargers Chargers 2020. To date 27 a increase the number across 4 Across 4 charging points program of EV charging points car parks car parks have been installed: me for in car parks across Ashbourne [8], further the Derbyshire Dales Matlock [8], publicly by April 2022 Bakewell [8] and accessibl Wirksworth [3] e EV charging points in 2 car parks across the Derbyshi re Dales by April 2022 CP20/P Implement a recycling Place Implement Change in  Postponed due to Postpone L8 education and by Dec 20 personnel Covid d to April promotional 22 programme by December 2020

76 CP20/P Provide up to People £36 000 £22,806 at Q3 NA E10 £36,600 of grant funding funding to local granted community groups for projects that benefit the wider community in Derbyshire Dales CP20/P Support community People 90% of All All cancelled due to NA E11 groups to applications cancelled Covid successfully host successful events on District Council land by March 2021 CP20/P Review and Place April 2021 Postponed until April L12 implement revised 2021/22 due to 2022 core standards for Covid Clean and Green by April 2021. CP20/P Develop a Place Programm Postponed until April L9 Community Tree e by April 2021/22 due to 2022 Planting Programme 2021 Covid by April 2021 for implementation in 2021/22 CP20/P Implement a Place April 21 Delayed due to Completi L10 refurbishment Covid. Survey on Dec CP20/P programme for the completed, 2021 L11 Bandstand at procurement late Ashbourne Memorial spring, revised Gardens by April completion date Dec 2021 2021 CP20/P Support the transfer Place March Complete Delayed due to Sept 21 L10 and re-build of 2021 Sept 2021 Covid 19. The

77 Ashbourne Memorial Ashbourne Pavilion and the Memorial Pavilion Bowls Pavilion on will be complete by Ashbourne Sept 21, the lease is Recreation Ground being finalised, and the Bowls Pavilion on Ashbourne Recreation Ground has been built and the transfer will be complete in Sept 2021 CP20/P Extend Green Flag Place 3 parks by Achieved Hall Leys L18 Award submissions to March 21 Park – July 2020. three key parks Bakewell application will be submitted January 2021 & Ashbourne in 2022. CP20/P Develop a Place 2 new EV L7 programme for further charging publicly accessible points EV charging points in 2 car parks across the Derbyshire Dales by April 2022 CP20/P Complete the transfer Place Sept 21 L17 and re-build of Ashbourne Memorial Pavilion and the refurbishment of the bandstand and paths by Sept 21

78 CP20/P Work in Bath Place Secure L18 Gardens, Bakewell, green Flag towards achieving Award in Green Flag Award Bath [then Ashbourne Gardens, Memorial Gardens in Bakewell; the following year then Ashbourne Memorial Gardens following year Key Performance Indicators These measure Corporate performance for key service areas and are monitored and reported quarterly NI 192 % of household Place 58.5% On target 61.2% at Q2: % has 58.6% 8 waste which has decreased from Q2 been sent for reuse, last year. Residual recycling, composting waste tonnage or anaerobic increased due to digestion Covid-19 and people being at home more due to lockdown. Recyclin g also increased slightly for the same reason. Garden/food waste decreased. Food waste collections took place fortnightly instead of weekly through July so this may have

79 contributed to the decrease. Overall the recycling and composting tonnage decreased. Service Performance Indicators These are measures that service areas use to manage their own performance. They are published every year NOTE: There are a number of other work streams that will be captured in the C&G Review during the year 2021/2022 [outlined in the attached Review Specification].

Arts

Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target PTD 36 Support the delivery of People/pla 10 10 10 1 arts (visual, ce performance, community, festivals) through signposting enquirers e.g. from artists and people interested in the arts.

80 Neighbourhoods

Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21Outt improvement Plan Target achieved Target 2021/22 urn trend Priority target CDC S02 Reduce or maintain Prosperit 140 191  Due to 200 4 the number of shop y/place current lifting incidents economic trend. The figure is up nationally. CDC S03 Reduce or maintain Prosperit 160 117  Due to Covid 140 4 the number of thefts y/place the figure is from vehicles down nationally. CDC S04 No. of calls for Place 1560 1165  1300 4 service for Anti-Social Behaviour this statistic is per year CDC S05 % of people who feel Place >98% 97%  The question >98% 4 safe outside during has been the day changed and now says ‘How safe do you feel walking alone in your area during the day?’ – which may explain the reduction CDC S06 % of people who feel Place >85% 87%  The question >85% 4 safe outside at night has been

81 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21Outt improvement Plan Target achieved Target 2021/22 urn trend Priority target changed and now says ‘How safe do you feel walking alone in your area after dark?’ – which may explain the reduction CDC S07 No. of CCTV footage Place >20 28  52 4 requests CDC S08 No. of Community Place 20 3  Due to 10 4 Protection Warnings Community issued Safety Officer leaving post a reduction is expected CDC S09 No. of Community place 4 5  5 4 Protection Notices issued CAR 2 Annual Income Prosperit £830 £801  Significant Predicted 4 generated per paid y and £625 parking space prolonged rainfall during the peak season. Also, an unusually high amount

82 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21Outt improvement Plan Target achieved Target 2021/22 urn trend Priority target of vandalism and break ins to the P&D machines NEW Community Safety Place N/A N/A N/A N/A N/A 10% Reduction in the number of reoffenders NEW Community Safety Place N/A N/A N/A N/A N/A 98% Number of calls for service answered/resolved within 10 working days (acknowledged within 3 working days)

NEW Community Safety Place N/A N/A N/A N/A N/A 1 Hold at least one multi-agency Community Safety Event NEW Car Park Payment Place N/A N/A N/A N/A N/A 98% Machines operational at anytime NEW Car Parks Place N/A N/A N/A N/A N/A 98% Payment machines faults resolved within 10 working days

83 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21Outt improvement Plan Target achieved Target 2021/22 urn trend Priority target NEW CCTV cameras Place N/A N/A N/A N/A N/A 98% operational at anytime NEW CCTV fault resolved Place N/A N/A N/A N/A N/A 98% NEW within 10 working days NEW Carry out 4 PSPO Place N/A N/A N/A N/A N/A 4 NEW enforcement days with partnering agencies

Events

Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target CDE 01 Increase the number of Prosperity 58,394 0 Event 58,394 12 people attending the cancelled due Illuminations event to Coviid-19. CDE 02 Ratio of Council Prosperity 1:1 0 Event 1:1 12 Spending to Income for cancelled due Matlock Bath to Covid-19 Illuminations ABC1 10% increase in Prosperity £45,980 £41,800 New structure 45,980 4 revenue by maximising came into the use of meeting place on 1st rooms / concourse / December. events at the ABC Development of business at

84 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target ABC now a priority. NEW Support community People N/A N/A N/A N/A N/A 90% of groups to ensure applications 90% of their successful Carry over applications to hold as new for events on District 21/22 as no Council land are events successful. operated in 20/21 New Sign up 10 new Prosperity 10 new market traders for a traders licence, new traders on a are those who have licence not had a licence with the Council since April 2018. New Sign two young Prosperity 2 young traders up for traders Bakewell Market, signed young traders are onto a under 25 years of age licence. following the guidance from NABMA and NMTF. New Run one young trader Prosperity 1 young market on District traders Council land in market partnership with NMTF.

85 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target New Enter one licenced Prosperity 1 young young trader into trader national young trader entered. of the year NMTF competition. New Encourage 5 traders Prosperity 5 traders to operate click and operating collect, delivery or in a new online services. way New Host 4 trader forums Prosperity 4 for Bakewell Market. New Run 2 first aid course Prosperity 2 courses for external businesses at the ABC.

Community Development

Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target CDL 02 Reduce % of the Dales People 21% or 17.7% Sport England 21% or 1 population who lower conduct a lower participate in less than National 30 minutes of physical Survey – activity per week in Active Lives Adult Survey

86 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target bouts of 10 minutes or to measure more physical activity levels DDDC have the lowest amount of inactive adults across the county CDL 03 Increase % of the People 69% 73.3% Sport England 69% 1 Dales population who conduct a successfully participate National in the Chief Medical Survey – Officer Active Lives recommendation of 150 Adult Survey minutes physical to measure activity per week in physical bouts of 10 minutes or activity levels more DDDC has the highest number of physically active adults across the county CDL 05 Increase the number of People 8600 8032 Development 8600 1 attendances on the of Dementia Walking for Health Friendly walk scheme from 2018/19 has increased participation

Delete for 2021/22

87 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target CDL 06 Successfully deliver the People 127 127 Target of 127 127 2 Active Health Referral is set by Public Scheme Health Derbyshire The scheme has now changed to Exercise by Delete for Referral 2021/22 Stay Provide up to People £36,500 £35,000 £36,500 of grant funding to local £1,500 community groups for projects that benefit the wider community in Derbyshire Dales NEW Implement the Place N/A N/A N/A N/A N/A 10 Community Payback Scheme in 10 communities across the district

NEW Engage with 4 Place N/A N/A N/A N/A N/A 4 environmental groups across the main towns to become actively involved in the roads verges and biodiversity project

NEW Achieve 60% People N/A N/A N/A N/A N/A 60% satisfaction on a

88 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target customer satisfaction survey across 3 parks

NEW Introduce 3 wildlife Place N/A N/A N/A N/A N/A 3 gardens in parks involving community groups and schools

NEW Deliver 4 mass People N/A N/A N/A N/A N/A 4 physical activity participation events which may include running and jogging

NEW Develop the new People N/A N/A N/A N/A N/A 2 county wide Walk Derbyshire programme including 2 new walks

89 Waste & Recycling

Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target NI193 % municipal waste Place 38% 38% Would like to 37% 10 which is sent to landfill of waste sent to decrease the amount landfill WM 2 % of residents that are Place 93% 93% 93% 4 satisfied with the refuse and recycling collection service WM3 Number of missed Place Grey bin Calculated on Grey bin 8 collections per service 50 per contractual 50 per area month year – August month - July Food Food Waste 35 Waste 35 per month per month

Garden Garden Waste 25 Waste 25 per month per month

Recycling Recycling 50 per 50 per month month WM4 New Increase the number of Place 14,000 in 14,000 Service starts 14,500 residents participating total April 21 in the garden waste scheme WM5 New Increase trade Place 100 100 Once service 200 recycling customers is developed and

90 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target implemented by March 22 NEW Provide a chargeable Place N/A N/A N/A N/A N/A NEW garden waste removal service

Clean & Green

Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target CG1 Complete Electric and Place N/A N/A N/A N/A N/A 2 Hybrid Vehicle Repairs Training for 2 members of the garage staff. CG2 Establish 10 pilot areas Place N/A N/A N/A N/A N/A 10 to increase biodiversity across the district. CG3 Trial a minimum of 2 Place N/A N/A N/A N/A N/A 2 alternatives to glyphosate in a bid to find a suitable replacement. CG4 Commit to 20% of our Place/ N/A N/a N/a N/a N/a 20% of bedding plants budget Prosperity to be spent on local providers.

Other Work-streams

91 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan 2021/22 Clean & Green CG6 Develop areas of commercialising the Prosperity March C&G service; a gardening service led by 2022 a team of apprentice and a play area maintenance service CG7 Establish adequate charging facilities at the Prosperity March depot. 2022 Waste & Recycling WM 22 Develop a chargeable garden waste Place September Sept 2020 Complete service 2020 WM 23 Implement new waste contract Place August August 2020 Complete 2020 WM25 Develop and implement Trade waste Place March 22 New recycling service WM 26 Develop garden waste pages for the Place August 21 New website and social media WM 27 Fully utilise the in cab software and CRM Place September New to provide an improved customer 21 experience and improved communication. WM28 Develop a code of practice for HMO’s to Place June 21 New manage expectations. WM29 Explore the potential for a text notification Place February New for customers to improve real time 22 communication with residents and improve the customer experience. Neighbourhoods

92 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan PSS9 Commission design for new burial ground Place June 2020 Not achieved due to Covid, carry over to July at Steeple Arch Cemetery and prepare 2021 first burial section PSS26 Introduce a new Derbyshire safer parking Place March Not achieved due to Covid, carry over to March accreditation scheme 2021 2022 New Adopt an ASB Policy Place September 2021 New Having a positive impact on young Place March people – diversionary project 2022 New Community Safety - Understanding what Place March our residents feel our issues are and 2022 producing initiatives to help tackle those New Identify ASB hotspots which would Place March benefit from deployable CCTV 2022 New Review/Consult on a new PSPO to be Place November introduced November 2021 2021 New Consecrations in Steeple Arch, Place June 2021 Brassington and Bakewell cemeteries New All light bulbs in council car parks Place March changed to LED to contribute towards 2022 Climate Emergency agenda. New Introduce a Text Payment Provider Place March across all 56 car parks 2022

Community Development 1 Produce an annual report for the Active May 2020 This was not achieved due to Covid – remove as Communities team nothing to report on from 2020/21 1 Implement a refurbishment programme People March Delayed due to Covid – new target October 2021 for the Bandstand at Ashbourne 2021 Memorial Gardens

93 Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan 1 Continue to recruit and actively support People On-going Complete – Remove for 2021/22 sports clubs signed up to the Clubs First Programme with funding applications, recruiting volunteers and developing local sports clubs in the community. NEW Develop and implement an People/pla improvement plan in the parks from the ce results of the customer satisfaction survey (dependent upon external funding)

New Host an Active Communities award March evening for the District. 2022 New Develop a friends of the park group in People/pla March Ashbourne and work with existing ce 2022 groups in Matlock and Bakewell to engage in park improvements. Events Create a development plan for Bakewell CP3 March On-going Market Prosperity 2021

2021/22

94 Community Housing Team

Service Overview

The Community Housing Team works with and supports some of the most vulnerable residents across the district including victims of domestic violence, people with drug and alcohol addictions, physical and mental health issues as well as people suffering financial hardship. The service also provides the system which advertises and allocates the vast majority of affordable housing vacancies, enables the development of new affordable homes and engages with partner agencies to deliver homes and services to residents.

This Service Plan sets out how Community Housing Team will contribute towards meeting the Corporate Priorities for 2020/21.

The Objectives of the Housing Service are to:

1. Deliver the Council’s Housing Strategy 2. Enable the provision of new affordable homes 3. Prevent homelessness and 4. Provide housing advice 5. Enable regeneration of housing areas such as Hurst Farm

Key activities in the Community Housing Team include:

Enabling new affordable homes • Work with a range of agencies to bring forward new developments of affordable homes for local people. • Identify housing needs through parish needs surveys • Work with landowners and housing associations to bring forward sites • Engage with planning and other services to ensure sites are viable • Attract inward investment to fund the development of new homes • Support the delivery of Community Led Housing initiatives across the Derbyshire Dales • Taking a greater role in shaping the housing market by purchasing land, developing council homes and working with developers • Coordinate the delivery of county wide projects that support bidding for resources to increase the provision of affordable homes across Derbyshire and Derby City

Homelessness Reduction • Support vulnerable households who are at risk of becoming homeless • Work with statutory and voluntary partners to address housing needs • Secure funding to provide services for vulnerable adults at risk of homelessness • Deliver the Home-Options service in partnership with other local authorities and housing associations.

95 • Support partner agencies in the delivery of the Move on project in the support of vulnerable adults who need appropriate accommodation and support.

Regeneration • Enable the delivery of the regeneration Masterplan for Hurst Farm • Pursue funding opportunities for the delivery of regeneration activity on Hurst Farm

This Service Plan sets out how Community Housing Team will contribute towards meeting the Corporate Priorities for 2021/22.

Energy Efficiency  In 2019/20, 2020/21 and 2021/22 the service has enabled retrofit of low performance properties, helping to reduce fuel bills and increase the energy efficiency of older and non-traditional homes

Service Area Resources

The following table sets out the staffing resources:

Service Area Full Time Equivalents

Homelessness 5 Housing Strategy and Development 5.3 Director of Housing 1

The budget for the service for 2021/22 is as follows:

Service Area Expenditure Income Net Budget £ £ £ Director of Housing 74,110 0 74,110 Homelessness 626,152 362,500 263,652 Housing Strategy and 326,711 78,123 248,588 Development Total 1,026,973 440,623 586,350

96 Service Performance

Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target Corporate Plan Indicators These measure the delivery of the Corporate Plan 2020-24 and are monitored and reported twice-yearly to Council CP20/PR Council housing: Prosperit Appoint the On track  n/a Nottingham n/a n/a 7 procure a y contractor Community HA Development Agent were appointed and Managing Agent, as the Council’s register with Homes Development England and the and Regulator of Social Management Housing leading to a Agent in programme of new January 2021 Council Housing. CP20/P Complete 80 Prosperity 80 12 N/A There were no Comme 8 R8 affordable homes by completions in nce the March 2021 Q3 due to program delays caused me to by Covid19. build new Council Homes to rent by March 2022

97 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target CP20/P Delivering a Prosperity Identify Potential sites Secure 16 R13 permanent site to opportunitie identified at Q2, planning meet identified s for the and Council permissi traveller needs provision of resolution to on for a permanent move forward permane Traveller with site made nt site and on 2nd traveller conclude September site by negotiation 2021. Delegated March s with authority to 2022 landowners proceed with by July application for 2020. planning permission given to Director of Housing. CP20/P Provide Debt and Prosperity 350 people Q1=58 CAB supported Provide R18 Welfare advice to 350 + 10 existing clients Debt vulnerable Q2=53 and 25 new and households by March + clients with 333 Welfare 2021 Q3=55 debt issues and advice managed debt of = 166 to 300 £105,054. Adullam HA vulnerab supported 29 le existing clients househo and 17 new lds

98 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target clients, affecting debt of £44,941 and generating £33,670 in benefit and £27,211 in other financial gains Age UK have 155 existing clients and supported 23 new clients generating £32,521 in new (weekly) benefits and £3,768 in one off payments Undertake a further Prosperity Complete Initial work NA review the effect of review undertaken to increase in Council identify the up to Tax Premium in May date extent of 2020 empty properties in advance of development of policy options. Explore further policy Develop options to reduce the options The focus of this number of empty has been the option to increase the premium on

99 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target homes by December the homes empty 2020. for more than 5 years and more than 10 years. No further options yet developed. CP20/P Commence the Prosperity Commenc 8 R8 programme to build e the new Council homes to programm rent e to build new Council homes to rent by March 2022 CP20/P Deliver a permanent Prosperity Secure 16 R13 site to meet identified planning traveller needs permission for a permanent traveller site by March 2022 CP20/P Provide Debt and Prosperity Provide R18 Welfare advice to 300 Debt and

100 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target vulnerable Welfare households advice to 300 vulnerable households Key Performance Indicators These measure Corporate performance for key service areas and are monitored and reported quarterly HAD3/ The percentage of CP2 95.5% 96 Y Despite seeing 4 BV213 homeless households a national seeking assistance freeze on social from the Council for and private whom this intervention rental evictions helped resolve their over Covid19 situation numbers of homelessness presentations have remained constant. Government initiatives “Everyone in” and “Keep Everyone In” have also kept the service busy. This

101 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target represents 21 successful interventions.

Service Performance Indicators 20 -21 These are measures that service areas use to manage their own performance. They are published every year HSS11 Complete 3 parish Complete 3 3 Surveys 1 housing needs complete completed for surveys d Eyam, Over Haddon and Youlgreave

Service Performance Indicators 21 -22 These are measures that service areas use to manage their own performance. They are published every year HF1 Plant 12 Heritage fruit ‘Place’ – N/A N/A 12 trees 4 trees on the Hurst Keeping by Dec Farm Spider Park the 2021 Derbyshir e Dales Clean, Green and Safe Submit 2 national HLF Round 2, funding applications and National

102 Link to Strategic Predicted Annual Corporate 2020/21 Target Comments 2021/22 Risk for Ref. No. Action 2020/21 improvement Plan Target achieved Target 2021/22 Outturn trend Priority target for projects on Hurst Lottery P’ship Farm Fund

Other Work-streams Link to Service Action and Planned Outcome Corporate Timescale Actual Outcome Action No. Plan 2020/21 Work with Community Land Trusts to secure CP2 Investment secured for the Harrison Almshouse Trust, new affordable homes ongoing support provided to 4 others Continue to support the Syrian Refugee CP2 The programme was suspended in 2020/21 due to Programme covid19 Secure further capital funding to support the CP2 Green Homes Grant awarded by government to improvement of non-traditional homes on support improvement of 54 non-traditional homes Hurst Farm across Matlock, Darley Dale, Tansley, Hognaston and Ashbourne. 2021/22 Continue to support the Syrian Refugee CP2 Ongoing Programme Work with Community Land Trusts to secure CP2 ongoing new affordable homes

103 NOT CONFIDENTIAL – For public release Item No. 10

COUNCIL 04 MARCH 2021

COUNCIL TAX SETTING 2021/22

PURPOSE OF REPORT

This report enables the Council to calculate and set the Council Tax for 2021/22.

RECOMMENDATION

1. That the Council approves the formal Council Tax resolution set out in Appendices A to C of the report.

2. That the Council retains the Empty Homes Premium at 100% for homes that have been empty for more than two years.

WARDS AFFECTED

All

STRATEGIC LINK

As Council Tax is an important source of funding for the Council, it has a link to all the Council’s aims and priorities.

1 BACKGROUND

1.1 The Local Government Finance Act 1992, amended by the Localism Act 2011, requires the billing authority to calculate a Council Tax requirement for the year. The 2021/22 Council Tax requirement for Derbyshire Dales District Council is the subject of a separate report on the agenda for this meeting.

The precept levels of other precepting bodies have now been received. These are detailed below.

2 REPORT

2.1 Town and Parish Councils

The Town and Parish Council Precepts for 2021/22 are detailed in Appendix C and total £1,826,236 (subject to formal notification from two parish councils at the time of writing this report). The increase in the average Band D Council Tax for Town and Parish Councils is 4.37% and results in an average Town/Parish Council Band D Council Tax figure of £60.92 for 2021/22.

2.2 Derbyshire County Council

Derbyshire County Council met on 4th February 2021 and set their precept at £41,459,141. This results in a County Council Band D Council Tax of £1,383.07.

104 2.3 Office of Police and Crime Commissioner for Derbyshire

The Office of the Police and Crime Commissioner for Derbyshire met on 10th February 2021 and set their precept at £7,242,243. This results in a Band D Council Tax of £241.60.

2.4 Derbyshire Fire and Rescue Authority

Derbyshire Fire and Rescue Authority met on 11th February 2021 and set their precept at £2,376,211. This results in a Band D Council Tax of £79.27.

2.5 Council Tax Base

The Head of Resources, under powers delegated by the Council, has determined the Council Tax Base for 2021/22 for the whole of the District and for each precepting Town/Parish Council area. The tax base for the whole area for 2021/22 has been determined as 29,976.17.

2.6 Empty Homes Premium

It was agreed at Council on 5th December 2018 that the Council would charge 100% premium (i.e. double council tax) on long term empty homes from 1st April 2019. Long term empty homes are defined as those which have been empty for more than two years.

2.7 Conclusions

The recommendations of the Council are set out in the formal Council Tax Resolution in Appendices A – C.

If the formal Council Tax Resolution at Appendices A – C is approved, the total Band D Council Tax will be as follows:

2020/21 2021/22 Increase Increase £ £ £ % Derbyshire Dales District 214.27 219.27 5.00 2.33 Council Derbyshire County Council 1,349.34 1,383.07 33.73 2.50 Office of Police and Crime 226.60 241.60 15.00 6.62 Commissioner for Derbyshire Derbyshire Fire and Rescue 77.73 79.27 1.54 1.98 Authority Sub-Total 1,867.94 1,923.21 55.27 2.96 Town and Parish Council 58.37 60.92 2.55 4.37 (average)* Total 1,926.31 1,984.13 57.82 3.00 *awaiting confirmation of 2 parish precepts at the time of writing this report.

An Empty Homes Premium of 100% will apply to homes that have been empty for more than two years.

105 3 RISK ASSESSMENT

3.1 Legal

Section 30 of the Local Government Finance Act 1992 (as amended by the Localism Act 2011) places a duty on the Council, as a billing authority to set an amount of council tax for the different categories of dwellings according to the band in which the dwelling falls before 11 March.

A notice of the amount set must be published in at least one newspaper circulating the authority’s area within 21 days of the decision.

Section 106 of the Local Government Finance Act 1992 precludes a councillor from voting on this decision as a relevant matter if he or she has an outstanding council tax debt of over two months. If Section 106 of the Act applies to a councillor present at this meeting they must disclose this and may not vote. Failure to comply is a criminal offence.

3.2 Financial

The financial details are set out in the body of the report and Appendices A to C. The financial risk is low. The financial risk of not setting a council tax would be high.

3.2 Corporate Risk

Failure to set the Council Tax for 2021/22 would result in the Council having reduced income within which to operate.

4 OTHER CONSIDERATIONS

4.1 In preparing this report, the relevance of the following factors has also been considered: prevention of crime and disorder, equalities, environmental, climate change, health, human rights, personnel and property.

5 CONTACT INFORMATION

Karen Henriksen - Director of Resources Telephone 01629 761284 Email: [email protected]

6 BACKGROUND PAPERS

6.1 Precepts from Derbyshire County Council, Office of Police and Crime Commissioner for Derbyshire, Derbyshire Fire and Rescue Authority and Town/Parish Councils. (Held on files in Accountancy Section)

7 ATTACHMENTS

Appendices A – C.

106 APPENDIX A

The Council is recommended to resolve as follows:

1. It be noted that on 1 December 2020 the Head of Resources under delegated powers calculated the Council Tax Base 2021/22:

a) For the whole Council area as 29,976.17 [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”)]; and

b) For dwellings in those parts of its area to which a Parish precept relates as in the attached Appendix C.

2. Calculate that the Council Tax Requirement for the Council’s own purposes for 2021/22 (excluding Parish precepts) is £6,572,971.

3. That the following amounts be calculated for the year 2021/22 in accordance with Sections 31 to 36 of the Act:

a) £44,090,313 Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils. b) £35,691,106 Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) of the Act. c) £8,399,207 Being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 21A(4) of the Act as its Council Tax requirements for the year. (Item R in the formula in Section 31B of the Act).

d) £280.20 Being the amount at 3(c) above (Item R), all divided by Item T (1(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).

e) £1,826,236 Being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act (as per the attached Appendix C)

f) £219.27 Being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T (1(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates.

107 4. To note that the County Council, the Office of Police and Crime Commissioner for Derbyshire and the Derbyshire Fire and Rescue Authority precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below after 5.

5. That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables below as the amounts of Council Tax for 2019/20 for each part of its area and for each of the categories of dwellings.

Valuation Bands

DERBYSHIRE DALES DISTRICT COUNCIL

A B C D E F G H 146.18 170.54 194.91 219.27 268.00 316.72 365.45 438.54

DERBYSHIRE COUNTY COUNCIL

A B C D E F G H 922.05 1,075.72 1,229.40 1,383.07 1,690.42 1,997.77 2,305.12 2,766.14

OFFICE OF POLICE AND CRIME COMMISSIONER FOR DERBYSHIRE

A B C D E F G H 161.07 187.91 214.76 241.60 295.29 348.98 402.67 483.20

DERBYSHIRE FIRE AUTHORITY

A B C D E F G H 52.85 61.65 70.46 79.27 96.89 114.50 132.12 158.54

AGGREGATE OF COUNCIL TAX REQUIREMENTS

A B C D E F G H 1,282.15 1,495.82 1,709.53 1,923.21 2,350.60 2,777.97 3,205.36 3,846.42

6. That the Council’s basic amount of Council Tax for 2021/22 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992.

108 APPENDIX B

Council Tax Schedule Band A Band B Band C Band D Band E Band F Band G Band H 2021/22 £ £ £ £ £ £ £ £

Derbyshire Dales District Council 146.18 170.54 194.91 219.27 268.00 316.72 365.45 438.54

Derbyshire County Council 922.05 1,075.72 1,229.40 1,383.07 1,690.42 1,997.77 2,305.12 2,766.14

Police and Crime Commissioner 161.07 187.91 214.76 241.60 295.29 348.98 402.67 483.20 for Derbyshire

Derbyshire Fire And Rescue Service 52.85 61.65 70.46 79.27 96.89 114.50 132.12 158.54

Parish / Town only 40.62 47.38 54.15 60.92 74.46 88.00 101.54 121.85

Parish / Town & District 186.80 217.92 249.06 280.19 342.46 404.72 466.99 560.39

Total 1,322.77 1,543.20 1,763.68 1,984.13 2,425.06 2,865.97 3,306.90 3,968.27

Parish

Ashbourne 1,346.20 1,570.54 1,794.93 2,019.28 2,468.02 2,916.74 3,365.48 4,038.56 Bakewell 1,325.08 1,545.91 1,766.77 1,987.61 2,429.31 2,870.99 3,312.69 3,975.22 Darley Dale 1,344.65 1,568.74 1,792.86 2,016.96 2,465.18 2,913.39 3,361.61 4,033.92 Matlock 1,340.47 1,563.86 1,787.29 2,010.69 2,457.52 2,904.33 3,351.16 4,021.38 Tideswell 1,336.85 1,559.64 1,782.46 2,005.26 2,450.88 2,896.49 3,342.11 4,010.52 Wirksworth 1,351.95 1,577.25 1,802.60 2,027.91 2,478.57 2,929.20 3,379.86 4,055.82 Alkmonton & Hungry Bentley 1,289.50 1,504.40 1,719.33 1,934.24 2,364.08 2,793.90 3,223.74 3,868.48 Ashford-in-the-Water 1,333.48 1,555.71 1,777.97 2,000.21 2,444.71 2,889.19 3,333.69 4,000.42 Ballidon & Bradbourne 1,282.15 1,495.82 1,709.53 1,923.21 2,350.60 2,777.97 3,205.36 3,846.42 Baslow & Bubnell 1,297.69 1,513.95 1,730.25 1,946.52 2,379.09 2,811.64 3,244.21 3,893.04 Beeley 1,321.68 1,541.93 1,762.23 1,982.50 2,423.07 2,863.61 3,304.18 3,965.00 Birchover 1,314.18 1,533.18 1,752.23 1,971.25 2,409.32 2,847.36 3,285.43 3,942.50 Bonsall 1,319.16 1,538.99 1,758.87 1,978.72 2,418.45 2,858.15 3,297.88 3,957.44 Boylestone 1,287.29 1,501.82 1,716.38 1,930.92 2,360.02 2,789.11 3,218.21 3,861.84 Bradley 1,293.26 1,508.79 1,724.35 1,939.88 2,370.97 2,802.05 3,233.14 3,879.76 Bradwell 1,338.98 1,562.12 1,785.30 2,008.45 2,454.78 2,901.09 3,347.43 4,016.90 Brailsford 1,301.03 1,517.85 1,734.70 1,951.53 2,385.21 2,818.88 3,252.56 3,903.06 Brassington 1,324.30 1,544.99 1,765.73 1,986.43 2,427.87 2,869.29 3,310.73 3,972.86 Calver 1,296.54 1,512.60 1,728.71 1,944.79 2,376.98 2,809.14 3,241.33 3,889.58 Carsington & Hopton 1,308.66 1,526.75 1,744.88 1,962.98 2,399.21 2,835.42 3,271.64 3,925.96 Chelmorton 1,307.70 1,525.62 1,743.59 1,961.53 2,397.44 2,833.32 3,269.23 3,923.06 Clifton 1,298.06 1,514.39 1,730.75 1,947.08 2,379.77 2,812.45 3,245.14 3,894.16 Cromford 1,305.54 1,523.11 1,740.72 1,958.30 2,393.49 2,828.66 3,263.84 3,916.60 Cubley 1,288.64 1,503.39 1,718.18 1,932.94 2,362.49 2,792.02 3,221.58 3,865.88 Curbar 1,301.85 1,518.80 1,735.80 1,952.76 2,386.72 2,820.65 3,254.61 3,905.52 Doveridge 1,294.74 1,510.51 1,726.32 1,942.10 2,373.69 2,805.26 3,236.84 3,884.20 Eaton, Alsop & Newton Grange 1,293.35 1,508.89 1,724.46 1,940.01 2,371.13 2,802.24 3,233.36 3,880.02 Edlaston & Wyaston 1,293.14 1,508.65 1,724.19 1,939.70 2,370.75 2,801.79 3,232.84 3,879.40 Elton 1,318.76 1,538.53 1,758.34 1,978.12 2,417.71 2,857.28 3,296.88 3,956.24 Eyam 1,344.03 1,568.01 1,792.04 2,016.03 2,464.05 2,912.04 3,360.06 4,032.06 Fenny Bentley 1,300.75 1,517.52 1,734.33 1,951.11 2,384.70 2,818.27 3,251.86 3,902.22 Flagg 1,294.81 1,510.59 1,726.41 1,942.20 2,373.81 2,805.40 3,237.01 3,884.40 Foolow 1,300.99 1,517.80 1,734.65 1,951.47 2,385.14 2,818.79 3,252.46 3,902.94 Froggatt 1,287.05 1,501.54 1,716.06 1,930.56 2,359.58 2,788.59 3,217.61 3,861.12 Great Longstone 1,316.72 1,536.16 1,755.63 1,975.07 2,413.98 2,852.88 3,291.79 3,950.14 Grindleford 1,293.24 1,508.76 1,724.32 1,939.85 2,370.94 2,802.01 3,233.09 3,879.70 Hartington, Middle Quarter 1,290.52 1,505.58 1,720.69 1,935.76 2,365.94 2,796.10 3,226.28 3,871.52 Hartington, Nether Quarter 1,302.04 1,519.02 1,736.05 1,953.04 2,387.06 2,821.06 3,255.08 3,906.08 Hartington, Town Quarter 1,313.68 1,532.60 1,751.57 1,970.50 2,408.40 2,846.28 3,284.18 3,941.00 Hassop 1,288.98 1,503.79 1,718.64 1,933.46 2,363.13 2,792.78 3,222.44 3,866.92 Hathersage & Outseats 1,328.69 1,550.12 1,771.58 1,993.02 2,435.92 2,878.81 3,321.71 3,986.04 Hognaston 1,305.53 1,523.10 1,740.70 1,958.28 2,393.46 2,828.63 3,263.81 3,916.56 Hollington 1,294.23 1,509.91 1,725.64 1,941.33 2,372.75 2,804.14 3,235.56 3,882.66 Hucklow, Gt. & Lt, & Grindlow 1,309.49 1,527.72 1,745.98 1,964.22 2,400.72 2,837.21 3,273.71 3,928.44 Hulland Ward 1,304.32 1,521.68 1,739.09 1,956.46 2,391.24 2,826.00 3,260.78 3,912.92 Kirk Ireton 1,311.50 1,530.07 1,748.67 1,967.24 2,404.41 2,841.57 3,278.74 3,934.48 Kniveton 1,304.43 1,521.81 1,739.24 1,956.63 2,391.45 2,826.24 3,261.06 3,913.26 Litton 1,302.64 1,519.72 1,736.85 1,953.94 2,388.16 2,822.36 3,256.58 3,907.88 Longford 1,295.85 1,511.80 1,727.80 1,943.76 2,375.72 2,807.65 3,239.61 3,887.52 Mappleton 1,303.32 1,520.51 1,737.75 1,954.96 2,389.41 2,823.83 3,258.28 3,909.92 Marston Montgomery 1,305.22 1,522.73 1,740.29 1,957.81 2,392.89 2,827.95 3,263.03 3,915.62 Matlock Bath 1,344.51 1,568.57 1,792.68 2,016.75 2,464.93 2,913.08 3,361.26 4,033.50

109 Council Tax Schedule Band A Band B Band C Band D Band E Band F Band G Band H 2021/22 £ £ £ £ £ £ £ £

Middleton & Smerrill 1,323.04 1,543.53 1,764.05 1,984.55 2,425.57 2,866.57 3,307.59 3,969.10 Middleton by Wirksworth 1,310.67 1,529.09 1,747.56 1,965.99 2,402.89 2,839.76 3,276.66 3,931.98 Monyash 1,313.32 1,532.18 1,751.09 1,969.96 2,407.74 2,845.50 3,283.28 3,939.92 Norbury & Roston 1,290.61 1,505.69 1,720.81 1,935.90 2,366.11 2,796.30 3,226.51 3,871.80 Northwood and Tinkersley 1,294.67 1,510.43 1,726.22 1,941.99 2,373.55 2,805.10 3,236.66 3,883.98 Offcote & Underwood 1,285.76 1,500.04 1,714.35 1,928.63 2,357.22 2,785.80 3,214.39 3,857.26 Osmaston & Yeldersley 1,292.57 1,507.98 1,723.42 1,938.84 2,369.70 2,800.55 3,231.41 3,877.68 Over Haddon 1,309.82 1,528.10 1,746.42 1,964.71 2,401.32 2,837.91 3,274.53 3,929.42 Parwich 1,310.56 1,528.97 1,747.41 1,965.83 2,402.69 2,839.53 3,276.39 3,931.66 Pilsley 1,291.20 1,506.38 1,721.60 1,936.79 2,367.20 2,797.59 3,227.99 3,873.58 Rodsley & Yeaveley 1,292.52 1,507.91 1,723.35 1,938.76 2,369.61 2,800.43 3,231.28 3,877.52 Rowsley 1,306.17 1,523.84 1,741.56 1,959.24 2,394.64 2,830.01 3,265.41 3,918.48 Sheldon 1,304.76 1,522.19 1,739.67 1,957.12 2,392.05 2,826.95 3,261.88 3,914.24 Shirley 1,313.64 1,532.55 1,751.51 1,970.44 2,408.33 2,846.19 3,284.08 3,940.88 Snelston 1,282.15 1,495.82 1,709.53 1,923.21 2,350.60 2,777.97 3,205.36 3,846.42 South Darley 1,295.55 1,511.45 1,727.40 1,943.31 2,375.17 2,807.00 3,238.86 3,886.62 Stanton-in-the-Peak 1,309.13 1,527.30 1,745.50 1,963.68 2,400.06 2,836.43 3,272.81 3,927.36 Stoney Middleton 1,320.76 1,540.86 1,761.01 1,981.12 2,421.38 2,861.62 3,301.88 3,962.24 Sudbury 1,312.00 1,530.64 1,749.33 1,967.98 2,405.32 2,842.64 3,279.98 3,935.96 Taddington 1,305.92 1,523.55 1,741.22 1,958.86 2,394.17 2,829.46 3,264.78 3,917.72 Tansley 1,307.24 1,525.10 1,742.99 1,960.85 2,396.60 2,832.34 3,268.09 3,921.70 Thorpe 1,301.24 1,518.09 1,734.98 1,951.84 2,385.59 2,819.32 3,253.08 3,903.68 Tissington and Lea Hall 1,307.03 1,524.85 1,742.70 1,960.53 2,396.21 2,831.88 3,267.56 3,921.06 Wardlow 1,289.42 1,504.30 1,719.22 1,934.11 2,363.92 2,793.71 3,223.53 3,868.22 Winster 1,328.66 1,550.08 1,771.54 1,992.97 2,435.86 2,878.73 3,321.63 3,985.94 Youlgreave 1,312.03 1,530.68 1,749.37 1,968.03 2,405.38 2,842.71 3,280.06 3,936.06 All Other Parts of the Council's Area 1,282.15 1,495.82 1,709.53 1,923.21 2,350.60 2,777.97 3,205.36 3,846.42

110 Appendix C TOWN AND PARISH PRECEPTS TOWN AND PARISH PRECEPTS

2020/21 2021/22 PARISH COUNCIL PARISH BAND D COUNCIL PARISH BAND D COUNCIL TAX BASE PRECEPT COUNCIL TAX BASE PRECEPT COUNCIL TAX BAND D TAX TAX INCREASE £ £ £ £ £ £ % Ashbourne 3,319.19 308,675 93.00 3,268.94 314,060 96.07 3.3 Bakewell 1,631.12 105,000 64.37 1,630.44 105,000 64.40 0.0 Darley Dale 2,197.37 148,637 67.64 2,225.51 208,637 93.75 38.6 Matlock 3,549.90 310,539 87.48 3,573.97 312,650 87.48 0.0 Tideswell 702.67 57,305 81.55 698.43 57,305 82.05 0.6 Wirksworth 1,841.16 194,000 105.37 1,852.86 194,000 104.70 -0.6 Alkmonton & Hungry Bentley 69.72 1,200 17.21 70.29 775 11.03 -35.9 Ashford-in-the-Water 238.21 17,740 74.47 230.40 17,740 77.00 3.4 Ballidon & Bradbourne 85.24 2,765 32.44 84.18 0 0.00 -100.0 Baslow & Bubnell 642.48 14,719 22.91 643.45 15,000 23.31 1.7 Beeley 74.58 4,241 56.87 71.53 4,241 59.29 4.3 Birchover 138.38 6,500 46.97 135.30 6,500 48.04 2.3 Bonsall 334.09 18,500 55.37 333.28 18,500 55.51 0.3 Boylestone 94.14 738 7.84 97.94 755 7.71 -1.7 Bradley 149.35 2,500 16.74 149.98 2,500 16.67 -0.4 Bradwell 575.14 51,456 89.47 603.69 51,456 85.24 -4.7 Brailsford 618.01 17,500 28.32 669.06 18,947 28.32 0.0 Brassington 270.37 17,160 63.47 271.45 17,160 63.22 -0.4 Calver 354.71 7,426 20.94 360.34 7,775 21.58 3.1 Carsington & Hopton 131.05 5,083 38.79 132.92 5,286 39.77 2.5 Chelmorton 139.38 5,435 38.99 141.83 5,435 38.32 -1.7 Clifton 211.44 5,000 23.65 209.46 5,000 23.87 0.9 Cromford 549.14 18,000 32.78 541.45 19,000 35.09 7.0 Cubley 103.63 1,000 9.65 102.82 1,000 9.73 0.8 Curbar 234.65 6,775 28.87 229.25 6,775 29.55 2.4 Doveridge 719.95 13,277 18.44 716.92 13,543 18.89 2.4 Eaton, Alsop & Newton Grange 55.75 1,000 17.94 59.51 1,000 16.80 -6.4 Edlaston & Wyaston 105.38 1,500 14.23 100.04 1,650 16.49 15.9 Elton 158.63 8,568 54.01 156.05 8,568 54.91 1.7 Eyam 434.44 33,000 75.96 437.48 40,608 92.82 22.2 Fenny Bentley 72.04 1,600 22.21 71.69 2,000 27.90 25.6 Flagg 78.57 1,500 19.09 78.97 1,500 18.99 -0.5 Foolow 78.45 2,200 28.04 77.85 2,200 28.26 0.8 Froggatt 119.87 935 7.80 127.20 935 7.35 -5.8 Great Longstone 352.86 17,445 49.44 346.69 17,979 51.86 4.9 Grindleford 416.23 6,763 16.25 414.63 6,898 16.64 2.4 Hartington, Middle Quarter 143.39 1,800 12.55 143.40 1,800 12.55 0.0 Hartington, Nether Quarter 173.02 6,000 34.68 167.62 5,000 29.83 -14.0 Hartington, Town Quarter 167.30 8,000 47.82 169.16 8,000 47.29 -1.1 Hassop 43.88 500 11.39 48.76 500 10.25 -10.0 Hathersage & Outseats 826.07 58,000 70.21 830.85 58,000 69.81 -0.6 Hognaston 129.19 4,580 35.45 130.60 4,580 35.07 -1.1 Hollington 109.50 1,923 17.56 108.27 1,962 18.12 3.2 Hucklow, Gt. & Lt, & Grindlow 136.70 5,251 38.41 140.86 5,776 41.01 6.8

111 TOWN AND PARISH PRECEPTS TOWN AND PARISH PRECEPTS 2019/20 2020/21 PARISH COUNCIL PARISH BAND D COUNCIL PARISH BAND D COUNCIL TAX BASE PRECEPT COUNCIL TAX BASE PRECEPT COUNCIL TAX BAND D TAX TAX INCREASE £ £ £ £ £ £ %

Hulland Ward 439.44 14,500 33.00 466.19 15,500 33.25 0.8 Kirk Ireton 228.58 9,924 43.42 225.39 9,924 44.03 1.4 Kniveton 168.74 5,525 32.74 168.66 5,636 33.42 2.1 Litton 298.80 8,407 28.14 300.95 9,248 30.73 9.2 Longford 177.61 3,650 20.55 177.63 3,650 20.55 0.0 Mappleton 61.00 1,800 29.51 56.70 1,800 31.75 7.6 Marston Montgomery 169.19 3,500 20.69 187.87 6,500 34.60 67.2 Matlock Bath 304.67 28,000 91.90 299.33 28,000 93.54 1.8 Middleton & Smerrill 66.79 4,000 59.89 65.21 4,000 61.34 2.4 Middleton by Wirksworth 310.23 13,285 42.82 312.08 13,350 42.78 -0.1 Monyash 147.85 6,908 46.72 147.77 6,908 46.75 0.1 Norbury & Roston 134.70 1,800 13.36 141.79 1,800 12.69 -5.0 Northwood and Tinkersley 245.21 4,590 18.72 244.39 4,590 18.78 0.3 Offcote & Underwood 230.07 1,000 4.35 230.67 1,250 5.42 24.6 Osmaston & Yeldersley 161.25 2,600 16.12 166.40 2,600 15.63 -3.0 Over Haddon 117.33 4,900 41.76 122.90 5,100 41.50 -0.6 Parwich 209.70 9,255 44.13 217.16 9,255 42.62 -3.4 Pilsley 54.27 736 13.56 55.29 751 13.58 0.1 Rodsley & Yeaveley 179.27 2,900 16.18 186.54 2,900 15.55 -3.9 Rowsley 177.07 6,552 37.00 181.87 6,552 36.03 -2.6 Sheldon 41.41 1,500 36.22 44.23 1,500 33.91 -6.4 Shirley 130.28 6,028 46.27 132.49 6,258 47.23 2.1 Snelston 99.99 0 0.00 99.45 0 0.00 0.0 South Darley 303.56 5,500 18.12 298.45 6,000 20.10 10.9 Stanton-in-the-Peak 160.23 6,458 40.30 162.77 6,588 40.47 0.4

Stoney Middleton 200.73 11,282 56.20 200.67 11,621 57.91 3.0 Sudbury 162.88 7,178 44.07 160.33 7,178 44.77 1.6 Taddington 201.71 6,076 30.12 201.30 7,176 35.65 18.4 Tansley 519.98 19,549 37.60 519.43 19,549 37.64 0.1 Thorpe 83.57 2,325 27.82 83.82 2,400 28.63 2.9 Tissington and Lea Hall 69.11 2,500 36.17 66.99 2,500 37.32 3.2 Wardlow 54.68 650 11.89 55.06 600 10.90 -8.3 Winster 256.37 17,500 68.26 250.85 17,500 69.76 2.2 Youlgreave 448.75 19,048 42.45 447.51 20,056 44.82 5.6 All Other Parts of the Council's Area 637.32 642.71

Total 29,828.68 1,741,162 2,946.69 29,976.17 1,826,236 3,000.19

112 Medium Term Financial Strategy 2021/22 to 2025/26

To be approved 4 March 2021

This Medium Term Financial Strategy is intended to set out the Council’s strategic approach to the management of its finances and provide a framework within which decisions can be made regarding future service provision and council tax levels.

113 Table of Contents

Page 1 Executive Summary 1

2 Overview 3 2.1 Purpose of the Strategy 3 2.2 Principles of the Strategy 3 2.3 Background 6 2.4 The Coronavirus Pandemic 6 2.5 National and International Influences 7 2.6 Government Funding 8 2.7 The Council’s Priorities 9

3 The Council’s Current Financial Position and Outlook 10 3.1 The Medium Term Financial Plan & Corporate Savings 10 Target 3.2 Financial Resilience 10 3.3 Outlook and Approach to Achieving the Savings 13 3.4 Income from fees and charges 15 3.5 Capital Programme 15 3.6 Reserves and balances 16 3.7 Budgetary Control & Monitoring the Plans 20

4 Links to other strategies, policies and plans 22

5 Risk Assessment 23

6 Glossary of Terms 24

Appendix A Medium Term Financial Plan 28

If you have any questions or comments about this Medium Term Financial Strategy please contact [email protected]

114 1. Executive Summary

1.1 This Medium Term Financial Strategy (MTFS) is intended to set out the Council’s strategic approach to the management of its finances and provide a framework within which decisions can be made regarding future service provision and council tax levels.

1.2 It is based on a five-year rolling forecast from 2021/22 to 2025/26 and is intended to be reviewed annually (usually in November, but delayed this year awaiting the outcome of the Local Government Finance Settlement). The MTFS provides the financial context for the Council’s financial resource allocation and budget setting processes.

1.3 During 2020/21 the Council’s financial position has been impacted by the coronavirus pandemic. The revised budget for 2020/21 includes transfers of £205,000 from the General Reserve and £491,000 from the Funding Uncertainties Reserve to fund additional expenditure and lost income during the coronavirus pandemic, not fully offset by government grants. For improved financial resilience, the Council should aim to top up the General Reserve to around £1m (which would require approximately £250,000) as soon as it becomes affordable.

1.4 In recent years all local authorities have faced significant reductions in Government funding. By the end of 2021/22 the Council’s Settlement Funding Assessment (the main source of government grant funding) will have reduced by 55% or £2.1m from 2013/14. This equates to £70 per band D property. The Council has responded well to the grant cuts so far and has already made savings of over £2.7 million since 1st April 2014. At the same time, public expectations are increasing and there are cost pressures on some services, such as waste and recycling, together with the impact of the coronavirus pandemic on the Council’s financial position and the costs of becoming carbon neutral. The impact of changes in the economy (such as from the Covid-19 pandemic, inflation and interest rates) bring more uncertainty and instability, as does the potential outcome of the Government’s Fair Funding Review and changes to the system of Business Rates Retention, which are expected to be announced in late 2021.

1.5 CIPFA has published a Financial Management Code (the FM Code) to support good financial management, as well as demonstrating a local authority’s financial sustainability. There is now more emphasis on financial sustainability. An analysis of usable revenue reserves as a percentage of net revenue expenditure is one measure of sustainability. An analysis shows that financial resilience was increasing up to 2019/20, but the impact of the coronavirus pandemic in 2020/21 and the use of reserves to fund the capital programme in 2021/22 mean that resilience will decline in 2021/22. It is the Director of Resources’ opinion that there are sufficient reserves at present to provide resilience for revenue spending but higher levels of reserves would provide added resilience. Should there be an under-spending or a significant increase in government funding, it is recommended that the first call on this should be to top up the general reserve and after that to increase contributions to reserves to cover the costs of replacing capital assets, such as vehicles. This will improve financial resilience, as well as reducing overall costs (compared to the cost of borrowing).

115 1.6 The Medium Term Financial Plan (MTFP) contained in this document (Appendix A) shows that expected further cuts in government funding mean that corporate savings (or the generation of additional income) of £318,000 are required by 2022/23. Coming on top of the savings that have already been made, this is a challenging target, equating to around 3.1% of net revenue spending. The savings requirement rises to around £600,000 in 2024/25 before reducing to £437,000 in 2025/26 (reflecting new revenue income streams). The District Council has already made budget savings exceeding £2.7m since 2014, and further savings will not be easy to achieve.

1.7 Faced with such unprecedented cuts in government funding and a significant corporate savings target, the Council will have to become more self-sufficient and generate more income from fees and charges, local taxation and business rates, as well as critically reviewing its expenditure, if it is to continue to set a balanced budget (as required by law).

1.8 In addition to these pressures on the revenue budget over the coming years, the Council’s sources of capital funding are becoming depleted. The Council‘s Capital Strategy sets the framework for all aspects of the Council’s capital expenditure; including planning, prioritisation, management and funding. The Strategy has direct links to the Council’s Asset Management Plan and this Medium Term Financial Strategy (MTFS).

1.9 It is clear that the Council will face some difficult decisions in the coming years regarding which services and which capital projects it should prioritise within the resources (revenue and capital) that are available.

1.10 While there is uncertainty over the Council’s future funding position, it is proposed that (while the Council will continue to look for efficiency savings) there will be a hold on any significant service reductions until the outcome of the funding / business rates reviews is known. It is considered that the Council has sufficient reserves and balances that would be available to address any immediate funding reduction, giving a period of time to consider the required action in the event of significant funding cuts.

1.11 The Council will explore commercial opportunities to help it to achieve a sustainable financial future. The overall aim of this approach is that the Council will be far less reliant on government funding and will become more self-sufficient. As well as ensuring that Council services are streamlined and offer value for money, the approach will focus on income generation and investment in economic development that will lead to growth. In the longer term, this approach will provide the Council with more financial resilience than depending on government grants.

1.12 There are risks associated with this strategy, which are described in part 5 of this Strategy. These risks will be mitigated by robust budget monitoring, together with contingency plans that will be used if the savings target is not achieved (or turns out to be greater than expected when the outcome of the government reviews is known).

116 2. Overview

2.1 Purpose of Strategy

The Medium Term Financial Strategy (MTFS) provides a robust, consistent and sustainable approach to establishing and maintaining a stable and prudent financial basis on which improvement and transformation of the Council’s services can progress within the resources that are available. The MTFS identifies the estimated financial commitments of the Council alongside the likely level of resources available to it over the next five financial years. It provides a financial overview against which budgets will be set. The MTFS helps to:  establish a framework within which the Council’s revenue and capital budgetary processes are aligned with its main aims and priorities as identified in the Corporate Plan and in other service strategies;  summarise the current financial position;  ensure the sustainability of the Council’s budget;  set down overall parameters and objectives for future spending, together with a medium-term forecast of the financial position, identifying spending pressures and savings / efficiency targets for the next four years;  establish an approach to setting the Council Tax based on keeping increases to a minimum whilst protecting investment in key service priorities;  establish arrangements for the effective evaluation of the financial aspects of decision-making;  highlight financial risks and mitigating actions.

2.2 Principles of the Strategy

The principles underlying this MTFS are set out in the following table:

117 Element Strategy Revenue Budget Sustainable Budget To have a balanced sustainable budget in the medium-term to ensure that the Council remains in good financial health and meets the statutory requirement to set a balanced budget.

Budget Model To use a five-year budget model on which to base short and medium- term decisions on the level of Council Tax and Revenue Reserves.

Budget Consultation A budget consultation exercise will be carried out annually to help inform Members of stake-holders views of spending priorities and acceptable levels of Council Tax. The exercise may involve, for example use of Community Forums & the Residents’ Online Panel.

Council Tax Keep council tax increases to the level necessary to maintain the standards of service required by residents, taking into account factors such as Government policy in respect of capping levels.

Corporate Savings Any ‘resource gap’ in the Council’s budget model (i.e. between spending Target and income, taking into account forecast commitments, proposed levels of Council Tax and estimated Business Rates Income and Government Grants) will be the Council’s Corporate Savings Target. Members & Officers will need to determine how to meet the Corporate Savings target in order to achieve a sustainable, balanced budget.

Budgetary Control Up-to-date, reliable information should be available for Members and Officers. Budget monitoring reports should be available on a quarterly basis for Members. Reports for budget holders should be available monthly, within 10 working days of month-end. Additional monthly reports should be provided for budgets which are significant in terms of size or risk (e.g. significant income items) and significant variances from budget. Budget holders should put in place action plans to deal with significant variances.

Working Balance The Council will maintain a working balance of approximately 10% of its net revenue expenditure which is considered appropriate to the strategic and operational risks which the authority faces.

General Reserve Any General Fund Balance over and above the working balance will be termed the ‘General Reserve’. The General Reserve will be available for meeting ‘one-off’ expenditure or development items, and should only be used to fund ongoing revenue expenditure in exceptional circumstances. The Council will aim to set balanced budgets that do not require the use of the general reserve.

118 Revenue Account Any over-spending on the revenue account will be met from the General Reserve. Any under-spending on the revenue account will be used initially to top up the general reserve, with any residual balance being transferred to strategic reserves to finance the Capital Programme, future asset replacements (not yet in the capital programme e.g. replacement waste collection vehicles) or “Invest To Save” Initiatives, or to mitigate against future funding pressures.

Service Growth Any areas of service growth must be identified through the annual service planning and budget process, and be subject to business case appraisal. Compensating savings or additional income should always be identified.

Priorities The District Council’s priorities are those set out in its Corporate Plan. The Corporate Plan is the District Council’s primary policy document. It sets out the District Council’s priorities and areas for improvement, and identifies key targets to be achieved. From 2020/21, the three Corporate Plan priorities of the District Council are People, Place and Prosperity.

Strategic Reserves Strategic reserves will be maintained for earmarked purposes in order to assist the Council in achieving its priorities. These include reserves to fund asset replacements and the capital programme, to smooth out significant items of expenditure which do not occur annually, and to provide cover for financial risks and pressures, such as uninsured losses. Balances on reserves will be reviewed at least annually. The MTFP and future revenue budgets will include annual revenue contributions to capital reserves provided that they are affordable.

Provisions Provision should be maintained for potential liabilities which may arise or will be incurred, such as any insurance claims which are going through the settlement procedure.

Fees and Charges Fees and charges will be reviewed annually to maximise income, taking into account the Council’s priorities, the level of inflation, and charges levied by neighbouring authorities. The Council will explore opportunities for new areas of charge.

Savings, Efficiencies The Council will continue to seek efficiencies and value for money in all and Value for Money services through its approach to procurement, transformational and organisational changes and better use of assets, as well as generating extra income from new fees and charges and additional business rates. The Council will explore commercial opportunities to help the Council achieve a sustainable financial future. The Council will continue to consider opportunities for working in partnership with other local authorities and other organisations where this will deliver efficiencies. The Council will evaluate existing partnerships to ensure they continue to deliver best value, and where that is not the case the Council will consider reducing or withdrawing funding (giving appropriate notice). This approach should reduce the impact of the savings on priority services.

119 Element Strategy

Capital Programme: New projects Business cases will be produced for all new projects. Business cases will be evaluated by the Corporate Leadership Team (taking into account factors such as the Council’s priorities, ability to deliver and potential for income generation), before being reported to the relevant Policy Committee for approval.

External Funding External and partnership funding should be explored for all schemes.

Revenue The revenue consequences of all capital schemes should be assessed Consequences and included in the Medium Term Financial Plan.

Prudential Code Capital expenditure plans, external borrowing and other long-term liabilities are to be affordable and within prudent and sustainable levels. Prudential Indicators are reported annually to Council.

Prudential borrowing The Council will consider the use of prudential borrowing to fund capital investment where it can be demonstrated that this is in keeping with the Council’s priorities and where the impact on the revenue account is affordable when the cost of the borrowing is taken into account.

2.3 Background

The Council’s Financial Strategy was last approved in March 2020. In March 2020 the Council set a Corporate Savings Target to achieve £250,000 savings by 2023/24. At that time there was a budget gap of £144,000 for 2021/22. This budget gap has been closed for 2021/22 and a balanced budget is due to be set for that year. There remains a budgetary shortfall for subsequent financial years. It is therefore vital that the Council has a robust and sustainable financial strategy in place to ensure that it is in a position to deliver balanced budgets as required by statute, whilst being able to meet its priorities whenever possible.

2.4 The Coronavirus Pandemic

The potential implications of the pandemic on the Council’s finances include:  The costs of delivering some services have increased, notably leisure services and waste collection. Some of the cost has been offset by additional government grants in 2020/21 and 2021/22;  During 2020/21 there have been significant shortfalls in income from fees and charges, especially from car parking, parks activities, Bakewell stall market, and trade waste. It is likely that shortfalls will continue into 2021/22. The government has introduced new grant to partly offset losses (above a threshold) from sales, fees and charges and has confirmed this for 2020/21 and the first quarter of 2021/22;

120  The Council is finding it harder to collect sums due to it for council tax and especially business rates. At 31 January 2021, collections were 1.8% under target for Council tax and 8% under target for business rates. While the government is allowing the spreading over the next three years, there will be losses to account for, which are expected to come to light when debt recovery is recommenced in full during 2021/22;  The Council has faced increased demands for its services to assist residents falling into hardship (such as for discretionary council tax discounts and housing benefit discretionary hardship reliefs), though it has received extra government grants to offset the majority of these costs;  The revised budget for 2020/21 includes transfers of £205,000 from the General Reserve and £491,000 from the Funding Uncertainties Reserve to fund additional expenditure and lost income during the coronavirus pandemic, not fully offset by government grants. At this stage, the impact on 2021/22 cannot be assessed with any accuracy. If the Council is not fully compensated for additional expenditure and lost income for 2021/22, it will have the finance the shortfall from reserves, which would require a top up of reserves in future years to remain financially sustainable over the medium term and it might delay improvement plans or capital projects if reserves are no longer available to finance them

2.5 National and International Influences

Derbyshire Dales District Council’s financial and service planning takes place within the context of the national and international economy. This Medium Term Financial Strategy has been prepared within that context.

The potential implications of the wider economic situation on the Council’s finances include:  The Council may find it harder to collect sums due to it, for example for council tax and business rates. Despite the increased pressures, there has not yet been any significant deterioration in collection rates;  The Council will face increased demands for its services to assist residents falling into hardship (such as for housing benefit discretionary hardship reliefs);  The Council may find its suppliers and contractors at risk of liquidation, potentially affecting delivery of services;  Inflationary pressures may be greater than assumed.

The Government has introduced a number of measures that have significant impacts on local government. The relevant items are set out below:

 The national living wage, which is currently £8.72 per hour for all workers aged 25 and over, is set to increase by 2.2% to £8.91 in April 2021 and to be extended to 23 and 24 year olds;

121  The Fair Funding Review and proposals to introduce 75% local retention of business rates. The former will involve a new method of grant distribution to replace Revenue Support Grant, Rural Services Delivery Grant and New Homes Bonus. The latter may involve the transfer of additional responsibilities and a reset of business rates baselines.

Whilst the current economic outlook continues to improve there remains a great deal of uncertainty and change and it is important that the Council has a level of reserves that allows it to withstand unanticipated financial impacts of future developments at a local and national level.

2.6 Government Funding

By the end of 2021/22 the Council’s Settlement Funding Assessment (the main source of government grant funding that includes Revenue Support Grant and Business Rates Baseline Funding) will have reduced by 55% or £2.1m from 2013/14. This equates to £70 per band D property. This is illustrated on the table below:

Source: MHCLG Notifications

The relative proportions (gearing) of Council funding are predicted to change significantly over the period from 2013/14 to 2025/26. The table below shows that government grants are forecast to reduce from £3.5m (32% of funding) in 2013/14 to £0.3m (2%) in 2025/26. Business rates, as a source of funding, increase from 10% to 21% across the same period and council tax increases from 58% to 77%.

122

Source: DDDC Statement of Accounts and Medium Term Financial Plans

This demonstrates that the Council will become much less dependent on government grants and much more self-reliant in future, relying more on council tax and business rates as sources of funding.

2.7 The Council’s Priorities

The Council’s priorities are due to be set in March 2020 within a new Corporate Plan. It identifies three corporate priorities: people, place and prosperity. In order to ensure adequate funding for priorities, it is important that the Council’s budgetary processes are aligned with corporate priorities. The following measures are in place.  The Council produces Service Plans for all front line and support services. The service planning and budget setting process are aligned.  All items relating to service growth are considered separately when setting the budget and in conjunction with other spending proposals in order that priorities can be set.  All Committee reports include a Strategic Link (to the Corporate Plan), and have a mandatory section for Risk Assessment, including legal risks, financial risks and corporate risks.  The Council’s Capital Programme is ordered by priority, giving Members and officers a visual guide to which priorities capital expenditure is allocated.

123 3. The Council’s Current Financial Position and Outlook

3.1 The Medium Term Financial Plan & Corporate Savings Target

The Medium Term Financial Plan (MTFP) shows the Council’s proposed budget for 2020/21 and forecasts for 2021/22 to 2024/25. Full details are given in Appendix A; the table below provides a summary:

Original Revised Budget Budget Forecast Forecast Forecast Forecast Forecast 2020/21 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26

£000s £000s £000s £000s £000s £000s £000s Net Revenue Expenditure 10,808 12,775 11,015 9,824 10,161 10,336 10,422 Transfers to/(from) reserves (549) (888) (463) 193 138 230 230 Net Spending Requirement 10,259 11,887 10,552 10,017 10,299 10,566 10,652 Funded By: Income from Council Tax (6,494) (6,494) (6,493) (6,725) (6,912) (7,114) (7,311) Income from Business Rates (2,910) (3,139) (3,052) (3,055) (3,115) (3,178) (3,242) NNDR Payment to Pool 177 354 177 181 185 189 193 Covid 19 Grants & Contributions 0 (1,576) (294) 0 0 0 0 Negative Revenue Support Grant 0 0 0 390 400 410 420 Rural Services Delivery Grant (401) (401) (421) (200) (200) (200) (200) New Homes Bonus (631) (631) (398) (218) 0 0 0 Lower Tier Services Grant 0 0 (71) (72) (73) (74) (75) Total Income (10,259) (11,887) (10,552) (9,699) (9,715) (9,967) (10,215) Savings to be achieved 0 (0) 0 318 584 599 437

The MTFP includes the impact of several key developments for the council over the MTFP period. These include the impact of the new waste contract (net of income from charging for garden waste from 2021/22), increased savings from the leisure management contract, the triennial review of the pension fund and investments being made through use of reserves.

The information in the MTFP suggests that the Corporate Savings Target should be amended to “Continue a programme to identify efficiency savings and/or additional income of £250,000 by 2023/24”, which is a recommendation of the report on the Revenue Budget 2020/21.

3.2 Financial Resilience

The Chartered Institute of Public Finance and Accountancy (CIPFA) has developed a Financial Resilience Index, which is a comparative analytical tool designed to provide councils with a clear understanding on their position in terms of financial risk. The index is made up of set of indicators, which can be used to compare against similar authorities. The graphic below shows and overview for this Council, based on information at 31 March 2020, with a comparison against similar authorities.

124

CIPFA Financial Resilience Index Summary 2019/20

The most recent analysis (for 2019/20) shows that for most indicators the Council performs in the median or low risk range when compared to other similar councils, demonstrating a well-balanced approach to financial management against a backdrop of significant demand pressures and central government funding cuts. The Council ranks as middle to high risk for “Reserves Sustainability”; this was expected as it has been apparent for some time that earmarked reserves (especially those to fund the capital programme) are reducing. Interest payable divided by net revenue expenditure is also classed as middle to high and relates to debt repayment.

The chart below, produced by LG Improve, compares levels of Usable Revenue Reserves as a percentage of net revenue expenditure across all district councils at 31 March 2020. This is an indicator of financial resilience with the higher percentages indicating higher resilience. The result for Derbyshire Dales is shown in blue and is in the mid to upper quartile. There is no prescribed level for this indicator, but the median appears to be around 100%; at 31 March 2020, the result for Derbyshire Dales District Council was 171%.

Usable Revenue Reserves as % of Net Revenue Expenditure at 31 March 2020: All Districts

125 Usable Revenue Reserves as at 31/3/20 as proportion of 2019/20 Budgeted Net Revenue Expenditure

400% DDDC

200%

0% Derbyshire Dales Derbyshire District

Since 31 March 2020 all local authorities’ financial resilience has been impacted by the coronavirus pandemic lockdowns and consequent lost income and additional spending. While there has been support from central government, in this Council’s case a significant transfer from usable reserves is required to balance the 2020/21 revenue account. The table below shows the Council’s results from 2012/13 with forecasts for 31 March 2021 and 31 March 2022, based on spending proposals. The results show that financial resilience was increasing up to 2019/20, but the impact of coronavirus in 2020/21 and the use of reserves to fund the capital programme in 2021/22 mean that resilience will decline in 2021/22, though it’s forecast to improve slightly to 84% by 2025/26. At a rate of 82% for 2021/22, the Council has sufficient reserves to fund almost a full year’s net revenue expenditure.

Chart 3 – Usable Revenue Reserves as % of Net Revenue Expenditure

DDDC USABLE REVENUE RESERVES (URR) AS A PERCENTAGE OF NET REVENUE EXPENDITURE (NRE) 171% 163% 140% 121% 107% 103% 90% 82% 74% 68%

2 0 1 2/13 2 0 1 3 /1 4 2 0 1 4/15 2 0 1 5 /1 6 2 0 1 6/17 2 0 1 7/18 2 0 1 8/19 2 0 1 9/20 2 0 2 0/21 2 0 2 1/22 FORECAST FORECAST

126 It is the Director of Resources’ opinion that there are sufficient reserves at present to provide resilience for revenue spending but higher levels of reserves would provide added resilience. Should there be an under-spending or a significant increase in government funding, it is recommended that the first call on this should be to top up the general reserve and to increase reserve balances to provide adequate financial resilience.

3.3 Outlook and Approach to Achieving the Savings

Medium Term Financial Planning remains very difficult. The uncertainties include:

 The future of government grants, especially New Homes Bonus;  The outcome of the government’s Fair Funding Review;  Business rates – the impact of the proposed changes to business rates including changes to the local share, funding of reliefs (especially Small Business Rate Relief), provision for appeals and the impact of revaluation exercises;  Rising inflation rates (which increase the cost of services);  The impact of the coronavirus pandemic, especially on collection rates for council tax, business rates and income from fees and charges;  The value of the pound, which could affect the cost of goods and services;  Increases in employer pension contributions;  Nationally agreed pay awards, increases in the National Minimum Wage and changes in the Apprentices Levy;  The impact of future welfare reforms, which could increase the cost of the Council Tax Support Scheme and Housing Benefit Overpayments;  Increases in demand for services;  Achievement of the savings required (see below);  Potential for a reduction in the cost of leisure services, as the Council’s cost is expected to reduce over the life of the contract;  Potential costs to improve or replace assets, such as waste collection vehicles;  The impact of volatility in the markets for recycling materials;  The level of income following the introduction of charges for garden waste collection from 1st April 2021. The assumptions made in preparing the Medium Term Financial Plan are shown in Appendix A. It is possible that some of these assumptions may turn out to be too cautious or over-optimistic. Some scenario testing has been carried out to demonstrate the impact of different assumptions on the savings requirement identified in the medium term plan. The results of that testing are set out below:

127 Estimates Estimates Estimates Estimates Estimates 2021/22 2022/23 2023/24 2024/25 2025/26 £000s £000s £000s £000s £000s

Current MTFP, as table above Surplus (-) / Deficit 0 318 584 599 437

Loss of RSDG Surplus (-) / Deficit would be: 421 518 784 799 637

No Negative Revenue Support Grant (RSG) Surplus (-) / Deficit would be: 0 (72) 184 189 17

Loss of New Homes Bonus (NHB) from 2022/23 Surplus (-) / Deficit would be: 0 536 584 599 437

No Negative RSG and NHB retained at 2022/23 legacy payments level Surplus (-) / Deficit would be: 0 (72) (34) (29) (201)

Business Rates Income above baseline reduces by 10% Surplus (-) / Deficit would be: 108 429 697 714 554

No growth in council tax base after 2020/21 Surplus (-) / Deficit would be: 0 352 675 750 650

No growth in council tax base after 2020/21 Surplus (-) / Deficit would be: 0 285 492 448 224

Faced with expected reductions government funding and a significant corporate savings target, the Council will have to become more self-sufficient and generate more income from fees and charges, local taxation and business rates, as well as critically reviewing its expenditure, if it is to continue to set a balanced budget (as required by law).

Given the relatively low value of the savings target, the amount set aside in the general reserve and strategic reserves, the timing of the required savings, and the uncertainty surrounding council funding (arising mainly from the outcome of the anticipated level of the government’s Fair Funding Review and its review of the Business Rates Retention scheme), the Council’s approach to meeting the Corporate Savings Target and closing the budget gap is to refrain from significant service reductions at the present time, until the outcome of the government reviews is known. The Council will explore commercial opportunities to help the Council achieve a sustainable financial future. The overall aim of this approach is that the Council will be far less reliant on government funding and will become more self-sufficient. The approach will focus on income generation and investment in economic development that will lead to growth. In the longer term, this approach will provide the Council with more financial resilience than depending on government grants.

128 3.4 Income from fees and charges

Income from fees and charges plays an important and significant role in balancing the Council’s budget. The chart below shows that for 2021/22 forecast income from sales, fees and charges amounts to £8m and makes up 41% of all income, more than council tax.

Forecast revenue income

The main areas of income from fees and charges forecast for 2021/22 are car parking £2.6m, waste collection (including recycling credits) £2.3m and planning application fees £0.5m.

The Council will explore new revenue income streams as a tool to close the budget gap in future years. The MTFP includes new revenue income streams arising from 2022/23 from capital programme investments in climate change and regeneration.

3.5 Capital Programme

As well as having to make savings in order to balance its revenue budget over the coming years, the Council’s resources for capital funding are diminishing.

The Capital Strategy sets the framework for all aspects of the Council’s capital expenditure; including planning, prioritisation, management and funding. The Strategy has direct links to the Council’s Asset Management Plan and forms a key part of the Council’s Medium Term Financial Strategy (MTFS)

129 This medium term financial strategy includes a "strategic reserves policy" that the MTFP and future revenue budgets will include annual revenue contributions to capital reserves provided that they are affordable. These contributions will help to provide for the life cycle (replacement) costs of assets. This is explained further in the Capital Strategy. These contributions do impact on bottom line savings to be achieved but will ensure that sufficient funding is available to allow replacement of these assets at the end of their lives. The impact of the revenue contributions has been included in the MTFP shown on Appendix A.

It should be noted that, at the current time, annual revenue contributions are not being made in respect of replacement waste collection vehicles. This should be addressed if there is an improvement in the council’s revenue position. This will improve financial resilience, as well as reducing overall costs (compared to the cost of borrowing).

3.6 Reserves and balances

In examining the immediate and longer term spending plans, for both revenue and capital, it is necessary to consider the levels of reserves and balances which are available and, of those, the ones that will be required to meet spending plans.

Revenue balances It is essential that the Council retains a level of uncommitted balances to meet emergency, unforeseen and unknown eventualities. This includes positive opportunities that may arise as well as disastrous or onerous liabilities. In the absence of these balances any such expenditure would fall directly on the General Fund and Council Tax requirement. This could result in significant financial consequences for service provision. As budgets have been tightened and “slack” removed, the need for adequate working balances has become even more important. Whilst it is impossible to advise on the precise level because of the uncertainty involved, it is considered prudent to retain uncommitted working balances of approximately 10% of net revenue expenditure. Working balances at 1st April 2021 are set at £1,000,000, which is considered adequate for the purpose described above.

In addition to the working balance, the Council also has a General Reserve, which is expected to amount to £795,000 at 1st April 2021 and £738,000 at 31st March 2022. This is also available to meet emergency, unforeseen and unknown eventualities. However, it is important to note that balances, by their very nature, can be used only once. Therefore, the continued use of the General Reserve to support ongoing spending is not sustainable beyond the life of the available amount. A strategy which is based on the continued use of balances to support regular spending can only have a finite life. Therefore, in looking at the use of available

130 balances regard must be taken of the future demands upon them in terms of both capital and revenue spending. In addition, interest is earned on the investment of unused balances. Utilisation of balances will therefore reduce the interest earned in future years.

The revised budget for 2020/21 includes transfers of £205,000 from the General Reserve and £491,000 from the Funding Uncertainties Reserve to fund additional expenditure and lost income during the coronavirus pandemic, not fully offset by government grants. For improved financial resilience, the Council should aim to top up the General Reserve to around £1m (which would require approximately £250,000) as soon as it becomes affordable.

For the reasons set out above, this Medium Term Financial Strategy allows the General Reserve to be used for meeting “one-off” expenditure or for “invest-to-save” proposals, but restricts its use for funding ongoing revenue expenditure unless there are exceptional circumstances. The Council will aim to set a balanced revenue budget that does not rely on the use of the general reserve.

Strategic Reserves

The Council has strategic reserves for specific purposes, which are consistent with corporate priorities, and these should continue to be earmarked for the identified purpose. This ensures the availability of the amounts in these reserves for those purposes and defrays demands on the revenue spending and general balances.

It is important that reserves are reviewed on at least an annual basis to ensure they are adequate for the purpose, but not excessive, based on an assessment of needs, an understanding of risks, and taking into account the opportunity costs of maintaining reserves. An annual review of earmarked reserves takes place in March each year as part of the budget setting process. The table below lists the various strategic reserves, the purposes for which they are held, and the forecast balances at 31st March 2022 and 31 March 2026:

131 ANNUAL REVIEW OF EARMARKED RESERVES (MARCH 2021)

Estimated Estimated Estimated Reserve / Balance Purpose Balance at Balance at Balance at Balance at 31st. March 2020 31st. March 2021 31st. March 2022 31st. March 2026 £ £ £ £

Revenue Balances General Fund Working Balance 1,000,000 1,000,000 1,000,000 1,000,000 General Reserve 999,839 794,688 738,061 738,061 1,999,839 1,794,688 1,738,061 1,738,061 Provisions Insurances To meet excesses and other payments due on current claims 60,640 60,640 60,640 60,640 NNDR Appeals 1,087,624 1,087,624 1,087,624 1,087,624 1,148,264 1,148,264 1,148,264 1,148,264 Earmarked Reserves Business Rates Volatility Rerserve To provide funding towards potential future losses on Non-Domestic 760,423 490,423 490,423 490,423 Rates Capital Programme Reserve To provide funding for capital expenditure 1,807,120 1,447,249 106,650 16,362 Carsington Improvements To provide grants towards projects in Parishes bordering Carsington 33,452 13,382 6,692 - 0 Reservoir. Committed Expenditure Contributions in respect of expenditure which has been committed, 171,125 169,743 139,662 139,662 but service not received at the end of the financial year, therefore an accrual is not appropriate. Corporate Plan Priority Reserve Established to meet the priorities of the new Corporate Plan approved 0 201,471 201,471 201,471 March 2020. Customer Innovation Reserve To procure and implement a customer platform that integrates with 279,397 145,100 12,590 12,590 existing systems to enable us to drive channel shift and to deliver easier, faster and better customer service. To provide our customers with an improved, user friendly and accessible means of accessing and paying for services electronically and promote a culture of 'digital by choice' for all customer interactions. Economic Development To provide funding for economic development initiatives. 297,845 243,858 191,619 191,619 Elections Annual revenue contributions to smooth the cost of four-yearly District 98,056 128,056 158,056 186,056 Council elections. Funding Uncertainties Reserve To provide finance for any future funding uncertainties. 490,533 0 0 0

Continued……

132 ANNUAL REVIEW OF EARMARKED RESERVES (MARCH 2021) (Continued)

Estimated Estimated Estimated Reserve / Balance Purpose Balance at Balance at Balance at Balance at 31st. March 2020 31st. March 2021 31st. March 2022 31st. March 2026 £ £ £ £

ICT Renewals To provide funding for renewal of the Council's information technology 421,879 353,041 159,791 72,541 equipment, including telephony & central printing equipment. Insurances To provide funding for uninsured losses. 464,473 464,473 464,473 464,473 Investment Fund To provide funding towards, for example, interim and temporary 564,950 564,950 0 - resources to provide additional capacity and skills to support the change agenda, subject to suitable business cases. To support the Council's Commercial Strategy. Job Evaluation To provide funding for potential additional costs of implementing job 150,000 150,000 150,000 150,000 evaluation/single status. Local Plan Annual revenue contributions to smooth the cost of four-yearly review 208,422 191,385 140,553 340,553 of the local plan. Member / Officer Indemnity To indemnify Members and officers against acts or omissions 25,000 25,000 25,000 25,000 subsequently found to be ultra vires, and against defence costs of criminal proceedings. Revenue Grants Unapplied The balance of grants received but not yet spent, set aside to finance 8,089,604 11,344,018 4,155,811 4,155,811 expenditure in future years. Vehicle Renewals To fund the replacement of the Council's vehicle fleet. The balance on 590,063 275,713 145,713 300,000 this reserve has been re-examined based on the current fleet of vehicles and known requirements. Ward Member Budget Reserve To finance the Local Projects Fund for the four year period of office 0 0 0 - 2015-2019. Waste contract fluctuations To finance changes in disposal costs which will become part of the 712,000 712,000 712,000 712,000 new waste contract. Waste Vehicle Reserve Funding transferred from other reserves in 2019/20 as approved at 2,500,100 0 0 - council meeting 18/12/19 for vehicles required for new waste contract 17 ,664,442 17,664,442 16,919,862 7,260,504 7,458,562

TOTAL 20,812,545 19,862,814 10,146,829 10,344,887

133 3.7 Budgetary Control & Monitoring the Plans

The Council’s financial regulations set out the arrangements for setting and managing budgets. Annual revenue estimates are prepared jointly by the Director of Resources (in practice, mostly by the Financial Services Team on behalf of the Director)) and each relevant Service Directors (or their nominated Senior Managers). The Director of Resources then prepares a budget report for Council. Each Service Director is responsible for ensuring that the budgets for controllable expenditure on each Service (as shown in the circulated budgetary control reports) are not exceeded. Where it appears that such a service provision shall be exceeded by an amount in excess of £10,000, the Service Director concerned must, in consultation with the Director of Resources, inform the relevant policy committee with recommendations on how the expenditure is to be funded or defrayed. No expenditure introducing major continuing liabilities to the Council, particularly new projects which involve financial commitments in future years, new policy or extension of services, may be incurred without prior consultation with the Head of Resources and the approval of the relevant policy committee either through the budget or separately in the course of the financial year. Transfers (up to £10,000) of budgets, except for salaries, wages and associated costs, from one service provision to another within a relevant service portfolio may be made by Service Directors, after consultation with the Director of Resources. For transfers exceeding £10,000 a report shall be taken to the relevant policy committee. Budgets for salaries, wages and associated costs may be amended, following approval by the Corporate Leadership Team, provided that total salary costs remain within budget. A Supplementary Estimate is required where expenditure is required or anticipated which:- a) has not been included in the Revenue Budget; and b) cannot be met by the transfer of budgetary provision from another service provision; and c) would cause the controllable expenditure on the particular service to be exceeded, Any request for a Supplementary Estimate shall be made to the relevant policy committee after consultation with the Director of Resources. Additional income and savings may be used to finance additional expenditure only after consultation with the Director of Resources who may require a report to the relevant policy committee. Each service has a designated Budget Holder. The Financial Services Team provides the following:

 Up-to-date reports from the Council’s financial management system that show budgets and spending / income;  Monthly budget monitoring reports for budget holders;

134  Monthly budget monitoring reports for major income items for consideration by the Corporate Leadership Team. Reports will be presented to Council as follows:

 In March – revenue budget and Council tax setting for the coming year, updated MTFP, five-year capital programme, treasury management strategy, corporate and commercial investment strategies; Corporate Plan targets; Service Plans.  In May / June – out-turn of revenue account and capital programme for previous financial year, updated capital programme for current year and next four years, updated MTFP; Out-turn of Key Performance Indicators.  In November – revised estimates for the current year, annual review of Medium Term Financial Strategy, updated MTFP and updated capital programme; annual review of Corporate Plan; mid-year update on Key Performance Indicators. The Medium Term Financial Plan and Medium Term Financial Strategy will be communicated to employees and stakeholders and published on the Council’s website.

135 4. Links to other strategies, policies and plans

This Medium Term Financial Strategy has links to other Council strategies, policies and plans as set out below: Corporate Plan Sets out the Council’s priorities which are taken into account when preparing the capital programme, especially when evaluating new bids Risk Management Policy Establishes a framework for the effective and systematic and Strategy management of risk, which will ensure that risk management is embedded throughout the Council and makes a real contribution to the achievement of the Council’s vision and objectives. All committee reports include a financial risk assessment. The strategic risk register includes an item relating to the Council’s budget. Capital Strategy Sets out the Council’s strategic approach to the management of its Capital Programme and provides a framework within which decisions can be made regarding capital investment and financing Treasury Management Sets out how the Council’s investments and borrowings are Strategy to be organised, and includes treasury indicators Minimum Revenue Shows how residual capital expenditure is charged to Provision Policy revenue over time Corporate and Set out the parameters on how investments are to be Commercial Investment managed Strategies Asset Management Plan Takes into account the balance between capital expenditure on assets and revenue expenditure on repairs. Procurement Strategy Reflects the Council’s initiatives to remove unnecessary complexity from processes and procedures and embeds best practice to maximise the benefits available from all commercial arrangements. Economic Development Sets out the need for more modern workspace for local Strategy firms, in order to accommodate the growth in higher-paid jobs required by the district. A vibrant economy with more homes and businesses should result in increased council tax and business rates that could be used to fund council services. Equality & Diversity Explains that the Council will encourage and promote Policy equality as an employer, in the provision of its services, and in carrying out its public functions. This can have an impact on the cost of services. Corporate Consultation Records all consultation and engagement planned through and Engagement Plan the financial year. Included are: corporate mechanisms for consultation e.g. community forums; customer satisfaction surveys; and changes to external facing policies, proposals which have a major impact on services, or changes that have an unfair impact on protected groups. This includes consultation on the draft budget.

136 5. Risk Management

There are significant risks associated with the Medium Term Financial Strategy. The uncertainties associated with medium term financial planning are set out in section 3.2 of this strategy. The preparation of an efficiency plan is a key mitigating factor but, even so, this financial risk is assessed as High.

The table below identifies the key risks and mitigating actions:

Keys Risks Mitigating actions and controls  Lack of resources available to  Monthly reporting of management accounts with deliver the core Council monitoring of variations from budgets. activities  Monthly scrutiny of major income budgets by the  Controls not performed or Corporate Leadership Team. overlooked due to time and  The MTFP and capital programme are regularly resource pressures. monitored and are updated and reported to  Cash flows are not available to Council in March, May/June and November each maintain standards and quality year. of service provision.  A number of services have been outsourced, with  Increase in claims made to the long-term agreements. The costs are structured Council. within the outsourced contract, allowing the  Initiatives, development Council to forecast and plan budget costs / programmes etc. around savings effectively (except for the inflationary capital enhancements, car adjustments). park maintenance etc. may not  The Council has insurance arrangements in place be performed resulting in to protect itself against claims. members of the public hurt or  Budgets have been balanced for 2021/22 and are public property damaged. due to be approved on 4 March 2021;  Targeted savings or additional  This Medium Term Financial Strategy sets out income not being achieved. the approach to achieving the savings that will be  Loss of a key source of income required. e.g. government grants or  Savings target set and achievement monitored by business rates from a large Corporate Leadership Team (though supermarket or quarry. achievement is “on hold” at present).  Increases in pay and prices  Reserves established for budget uncertainties are higher than forecast. and for areas of volatility such as business rates income and waste contract price fluctuations.

137 6. Glossary of Terms

Budget A statement of the Council's policies and spending plans for net revenue and capital expenditure over a specified period of time, usually one financial year from 1st April to 31st March.

Budget Requirement (or External Funding Requirement) The Council’s revenue budget on general fund services after deducting funding streams such as fees and charges and any funding from reserves. This excludes income from council tax, business rates and non-specific government grants such as Revenue Support Grant, Rural Services Delivery Grant and New Homes Bonus.

Business Rates Baseline Funding Level The amount of a local authority’s start-up funding allocation which is provided through the local share of the estimated business rates aggregate (England) at the outset of the scheme as forecast by the Government.

Business Rates Local Share This is the percentage share of locally collected business rates that will be retained by local government, currently 50%. The local share of business rates is divided between authorities on the basis of proportionate shares set by the government. Currently at Derbyshire Dales District Council the 50% local share is shared 40% for Derbyshire Dales District Council, 9% for Derbyshire County Council and 1% for Derbyshire Fire and Rescue Authority, The Government has announced that the local share of business rates will increase to 75%, though this will be accompanied by additional responsibilities. The additional responsibilities and the share between district and county councils have not yet been determined.

Business Rates Pool As part of the rates retention scheme, authorities are able to come together, on a voluntary basis, to pool their business rates, giving them scope to generate additional growth through collaborative effort and to smooth the impact of volatility in rates income across a wider economic area. This not only allows them to pool their resources under the scheme (which they could do anyway), but ensures that they are treated as if they were a single entity for the purposes of calculating tariffs, top-ups, levies and safety net payments. Derbyshire Dales District Council has been part of the Derbyshire Business Rates Pool since 1st April 2015.

Capital Expenditure Spending on assets that have a lasting value such as land, buildings, vehicles and equipment. It can also include grants to other bodies towards such assets.

Capital Programme The Council’s plan of future spending on capital projects such as buying land, buildings, vehicles and equipment.

138 Capital Receipts The proceeds from the disposal of land or other fixed assets and repayment of certain grants and advances. Capital receipts can be used to finance new capital expenditure within rules set down by the Government, but they cannot be used to finance revenue expenditure, except in specific circumstances defined in regulations.

Capping This is the power under which the Government may limit the maximum level of local authority spending or increases in the level of spending year on year, which it considers excessive. It is a tool used by the Government to restrain increases in council tax. The Council Tax cap, which is the greater of £5 per band D or 2% for 2020/21, means that any local authority in England that wishes to raise council tax by more than the threshold must consult the public in a referendum. Councils losing a referendum would have to revert to a lower increase in their bills.

CIPFA The Chartered Institute of Public Finance and Accountancy is one of the UK accountancy institutes. Uniquely, CIPFA specialise in the public sector. Consequently CIPFA holds the responsibility for setting accounting standards for local government.

Collection Fund A separate statutory account, maintained by the council, to show the transactions of a billing authority in relation to amounts collected from Council Tax and Non-Domestic Rates (NDR) and the payments to central government and major preceptors (the County Council, the Police and the Fire Authority).

Collection Fund Surplus or Deficit If the Council collects more or less council tax than it expected at the start of the financial year, the surplus or deficit is shared with central government and the major preceptors (see above), in proportion to the respective council tax precepts These surpluses or deficits have to be returned to the council taxpayer in the following year through lower or higher council taxes. If, for example, the number of properties or the allowance for discounts, exemptions or appeals vary from those used in the council tax base, a surplus or deficit will arise. The Collection Fund also shows transactions relating to business rates. Any surplus or deficit arising from business rates is shared in proportion to the local share (see above) and taken into account when setting the council tax for the following financial year.

Contingency This is money set aside to meet the cost of unforeseen items of expenditure, such as higher than expected inflation or unforeseen events. At Derbyshire Dales District Council the contingency is held in the General Reserve.

Council Tax Base This is the figure that is used by the Council in the calculation of the Council Tax. It is the number of band D equivalent properties within the District. This figure is produced by the council counting each property in each council tax band across the district; the

139 number of properties in each band is then multiplied by a factor to convert it into a band D equivalent; these are then added up to produce the total number of band D equivalent properties for the district; an adjustment is then made to reflect Council Tax Support; finally a collection rate is applied and the result is the council tax base.

Council Tax Requirement The Council Tax Requirement is the amount that the Council needs to collect from Council Tax each year. It is the Budget (or External Funding) requirement less business rates income and non-specific grants. The Council Tax Requirement is divided by the Council Tax Base to calculate the Band D Council Tax for the financial year.

CPI The main inflation rate used in the UK is the CPI (Consumer Price Index). Some of the council’s contracts with suppliers (such as that for waste collection) include an agreement that prices will be increased each year in line with CPI.

Financial Year The Council's financial year commences on 1st April and finishes on 31st March the following year.

General Fund This is the main revenue account of the Council which summarises the day to day spending of all services provided by the Council which are funded from the precept, government grants and other income.

General Fund Balances This represents amounts put aside, but not allocated to meet, any future spending commitments or unforeseen pressures. The Council’s General Fund Balances include a working balance of £1m to meet emergencies and contingencies, and to assist with cash flow, as well as a General Reserve that currently stands at £1m.

Gross Expenditure The total cost of providing the Council's services, before deducting income from Government grants, or fees and charges for services.

Minimum Revenue Provision The minimum amount which must be charged to an authority’s revenue account each year, as a provision to repay borrowing and finance leases.

Net Expenditure This is gross expenditure less income, but before deduction of government grant, business rates and council tax income.

New Homes Bonus Under this scheme councils receive a new homes bonus (NHB) for each new property built in the district. There is also a payment in respect of empty homes brought back

140 into use. Payments are based on match funding the council tax raised on each property with an additional amount for affordable homes. It is paid in the form of an un- ringfenced grant, which the government has announced will cease after 2020/21, apart from legacy payments for a further two years.

Non Domestic Rates (NDR) Also known as ‘business rates’, see above,

Precept The amount which a precepting authority (Derbyshire County Council, Derbyshire Police, Derbyshire Fire & Rescue and Town and Parish Councils) requires Derbyshire Dales District Council (as billing authority) to collect on their behalf in the form of council tax.

Prudential Borrowing A set of rules governing local authority borrowing for funding capital projects under a professional code of practice developed by CIPFA to ensure the Council’s capital investment plans are affordable, prudent and sustainable.

Revenue Expenditure Expenditure to meet the day-to-day running costs incurred in providing services e.g. wages and salaries, purchase of materials and capital charges.

Revenue Support Grant A general government grant paid to the Council as a contribution towards the cost of its services. When added to the Business Rates Baseline Funding Level (see above), it produces the Settlement Funding Assessment.

Specific Grants These grants are for specified purposes and cannot be used on anything else, for example, housing benefits administration.

Strategic (Earmarked) Reserves These balances are not a general resource but earmarked for specific purposes.

Treasury Management The process of managing the Council's cash flows, borrowing and investments. Details are set out in the Treasury Management Strategy which is approved by Council in March each year.

Virement This is the transfer of budget provision from one budget head to another. A virement must be properly authorised by the Council or, if under £10,000, by the Head of Resources under delegated powers.

141 Appendix A – Medium Term Financial Plan

Original Revised Proposed Budget Budget Budget Forecast Forecast Forecast Forecast Note 2020/21 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26

£000s £000s £000s £000s £000s £000s £000s

Service Funding Requirement 10,517 12,529 10,718 10,718 9,524 9,860 10,032 Adjustment for Service Costs Funded from EM Reserves (837) 55 (92) 0

Inflation Pay Awards 146 149 152 155 Contracts 129 132 135 138 Fees and Charges (74) (75) (77) (79) General Inflation 67 68 69 70

Pressures / Savings - Recurring Increasing savings from Leisure review (300) (50) 0 0 Additional costs of new waste contract, net of income for charging for garden waste collections (156) 0 0 0 Potential increase in pension contributions following revaluation 0 150 0 0 Vision Derbyshire Partnership Working (20) 0 0 0 Ice Cream Electric Points (8) (14) 0 0 Ice Cream Income (70) 0 0 0 Bakewell Road Development (cinema) (48) (15) (15) (2) Climate Change (23) (65) 0 (198)

Net Cost of Services 10,517 12,529 10,718 9,524 9,860 10,032 10,116 Non Service Items 291 246 297 300 302 304 307

Net Revenue Expenditure 10,808 12,775 11,015 9,824 10,161 10,336 10,422

Trandfers to /(from) reserves relating to Collection Fund Accounting 7 0 3,958 (3,958) 0 0 0 Transfers to/(from) reserves for current year (981) (1,937) (874) (37) (92) 0 0

Contributions to reserves for future years costs Corporate Plan Priorities Reserve 202 202 0 0 0 0 0 Election reserve annual contribution 30 30 30 30 30 30 30 Local plan reserve 50 50 50 50 50 50 50 Revenue Grants Unapplied 0 615 183 0 0 0 0 Vehicle renewal fund 150 150 150 150 150 150 150 Total Net Spending Requirements 10,259 15,843 6,596 10,017 10,299 10,566 10,652

Funded By: Revenue Support Grant 1 0 0 0 390 400 410 420 Business Rates Baseline Funding 2 (1,675) (1,675) (1,675) (1,709) (1,743) (1,778) (1,814) Settlement Funding Assessment (1,675) (1,675) (1,675) (1,319) (1,343) (1,368) (1,394)

Other business rates income, net of payment to pool 3/7 (927) (4,935) (1,193) (1,165) (1,187) (1,211) (1,235) NDR Collection Fund (surplus)/deficit 7 (131) (131) 3,949 0 0 0 0 Rural Services Delivery Grant 4 (401) (401) (421) (200) (200) (200) (200) Lower Tier Services Grant 0 0 (71) (72) (73) (74) (75) New Homes Bonus 6 (631) (631) (398) (218) 0 0 0 Covid 19 Grants & Contributions 0 (1,576) (294) 0 0 0 0 Council Tax Collection Fund (surplus) / deficit (103) (103) 80 9 9 0 0 Financing from Council Tax 5 (6,391) (6,391) (6,573) (6,734) (6,921) (7,114) (7,311)

Total Income (10,259) (15,843) (6,596) (9,699) (9,715) (9,967) (10,215)

Corporate Saving Target 0 (0) 0 318 584 599 437

142 Notes to Medium Term Financial Plan

1. Negative RSG removed in 2020/21 and 2021/22 settlements. Effect of future negative grant cannot be dismissed.

2. Assumed business rates baseline funding will increase by inflation in future years (assumed 2%).

3. Assumed NNDR receipts as per current pool arrangement. Changes to future distribution not confirmed. Effect of NNDR CF balance reflected in use of business rate fluctuations reserve to mitigate impact.

4. RSDG only confirmed up to 2021/22. Assumed reduction thereafter.

5. Council tax base growth assumed at 150 band D properties per year for 2022/23, rising to 250 per year for 2023/24, 2024/25 and 2025/26, plus 1.94% council tax increase from 2022/23 onwards.

6. New Homes Bonus calculated on current year methodology, no new allocations assumed, only legacy payments.

1 March 2021

143 Appendix 1: Prudential Indicators and Minimum Revenue Provision Policy

Capital Expenditure and Financing Capital expenditure is where the Council spends money on assets, such as property or vehicles that will be used for more than one year. In local government this includes spending on assets owned by other bodies, and loans and grants to other bodies enabling them to buy assets. The Council has some limited discretion on what counts as capital expenditure. For example, at Derbyshire Dales District Council assets costing below £10,000 are not capitalised and are charged to revenue in year. In 2021/22, the Council is planning capital expenditure of £8m.

Table 1 Prudential Indicator: Estimates of Capital Expenditure in £’000 2019/20 2020/21 2021/22 2022/23 2023/24 Actual Forecast Budget Budget Budget Debt 5,898 5,650 5,701 6,068 5,957 Capital 2,035 7,791 7,578 1,354 377 Investments Total 7,933 13,441 13,279 7,422 6,334

Table 2: Capital Financing in £’000 All capital expenditure must be financed, either from external sources (government grants and other contributions), the Council’s own resources (revenue, reserves and capital receipts) or debt (borrowing, leasing and Private Finance Initiative). The planned financing of the above expenditure is as follows:

2019/20 2020/21 2021/22 2022/23 2023/24 Actual budget budget budget budget External 515 1,952 691 491 0 sources Own 1,520 5,839 6,887 863 377 resources Debt 5,898 5,650 5,701 6,068 5,957

TOTAL 7,933 13,441 13,279 7,422 6,334

Debt is only a temporary source of finance, since loans and leases must be repaid, and this is therefore replaced over time by other financing, usually from

144 revenue which is known as minimum revenue provision (MRP). Alternatively, proceeds from selling capital assets (known as capital receipts) may be used to replace debt finance. Planned MRP repayments and use of capital receipts are as follows:

Table 3: Replacement of debt finance in £‘000

2019/20 2020/21 2021/22 2022/23 2023/24 Actual budget budget budget Own 248 99 101 110 131 resources

The Council’s cumulative outstanding amount of debt finance is measured by the capital financing requirement (CFR). This increases with new debt-financed capital expenditure and reduces with MRP and capital receipts used to replace debt. Based on the above figures for expenditure and financing, the Council’s estimated CFR is as follows:

Table 4: Prudential Indicator: Estimates of Capital Financing Requirement in £’000

31.3.2020 31.3.2021 31.3.2022 31.3.2023 31.3.2024 forecast budget budget budget budget Closing CFR 5,650 5,551 5,600 5,957 5,826

Asset disposals: When a capital asset is no longer needed, it may be sold so that the proceeds, known as capital receipts, can be spent on new assets or to repay debt. The Council is currently also permitted to spend capital receipts on service transformation projects until 2021/22. Repayments of capital grants, loans and investments also generate capital receipts. The Council expects to receive £150,000 of capital receipts in the coming financial year as follows:

Table 5: Capital Receipts in £’000

2019/20 2020/21 2021/22 2022/23 2023/24 actual budget budget budget budget Asset sales 558 250 150 100 50 Loans repaid 0 0 0 0 0 TOTAL 558 250 150 100 50

145 Treasury Management Treasury management is concerned with keeping sufficient but not excessive cash available to meet the Council’s spending needs, while managing the risks involved. Surplus cash is invested until required, while a shortage of cash will be met by borrowing, to avoid excessive credit balances or overdrafts in the bank current account. The Council is typically cash rich in the short-term as revenue income is received before it is spent, but cash poor in the long-term as capital expenditure is incurred before being financed. The revenue cash surpluses are offset against capital cash shortfalls to reduce overall borrowing.

Borrowing strategy: The Council’s chief objective when borrowing money is to strike an appropriately low risk balance between securing low interest costs and achieving certainty of those costs over the period for which funds are required. The flexibility to renegotiate loans should the Council’s long-term plans change is a secondary objective.

Projected levels of the Council’s total outstanding debt (which comprises borrowing and finance leases) are shown below, compared with the capital financing requirement (see above).

Table 6: Prudential Indicator: Gross Debt and the Capital Financing Requirement in £’000

31.3.2020 31.3.2021 31.3.2022 31.3.2023 31.03.2024 actual budget budget budget budget Debt 5,450 5,450 5,450 5,450 5,450 (incl. finance leases) Capital 5,650 5,551 5,600 5,957 5,826 Financing Requirement

Statutory guidance is that debt should remain below the capital financing requirement, except in the short-term. As can be seen from table 6, the Council expects to comply with this in the medium term

Affordable borrowing limit:* The Council is legally obliged to set an affordable borrowing limit (also termed the “authorised limit for external debt”) each year In line with statutory guidance, a lower “operational boundary” is also set as a warning level should debt approach the limit.

146 *Due to a change in accounting for Leases (IFRS16), all leases (both operating and finance leases) from 1st April 2022 will be bought onto the balance sheet as a “right of use asset” if the asset has a lease term of greater than 12 months and is valued at more than £5,000 The council currently has a number of operating leases of significant value which will increase the amount of debt liability. This will have an impact on the Affordable Borrowing Limits from 2022 onwards. Once the effect is known a new report will be bought for Members’ approval.

Table 7: Prudential Indicators: Authorised limit and operational boundary for external debt in £‘000 2019/20 2020/21 2021/22 2022/23 2023/24 limit limit limit limit limit Authorised limit – borrowing 11,000 11,000 11,000 11,000 11,000 Authorised limit – Finance leases 1,000 1,000 1,000 1,000 1,000 Authorised limit – total external debt 12,000 12,000 12,000 12,000 12,000 Operational boundary – borrowing 8,000 8,000 8,000 8,000 8,000 Operational boundary – Finance 1,000 1,000 1,000 1,000 1,000 leases Operational boundary – total 9,000 9,000 9,000 9,000 9,000 external debt

Treasury Investments Treasury investments arise from receiving cash before it is paid out again. Investments made for service reasons or for pure financial gain are not generally considered to be part of treasury management.

The Council’s policy on treasury investments is to prioritise security and liquidity over yield, that is, to focus on minimising risk rather than maximising returns. Cash that is likely to be spent in the near term is invested securely, for example with the government, other local authorities or selected high-quality banks, to minimise the risk of loss. Money that will be held for longer terms is invested more widely, including in bonds, shares and property, to balance the risk of loss against the risk of receiving returns below inflation. Both near-term and longer- term investments may be held in pooled funds, where an external fund manager makes decisions on which particular investments to buy and the Council may request its money back at short notice.

147 Table 8: Treasury management investments in £‘000

31.3.2020 31.3.2021 31.3.2022 31.3.2023 31.3.2024 actual forecast budget budget budget Near-term 19,000 23,000 15,000 15,000 15,000 investments Longer-term 931 931 2,000 2,000 2,000 investments TOTAL 19,931 23,931 17,000 17,000 17,000

Governance: Decisions on treasury management investment and borrowing are made daily and are therefore delegated to the Director of Resources and staff, who must act in line with the treasury management strategy approved by council. A mid-year report as well as an annual treasury report on treasury management activity is presented to Council. Council are responsible for scrutinising treasury management decisions.

Commercial Activities

With central government financial support for local public services declining, the Council invests in commercial property mainly for financial gain. Total commercial investments are currently valued at £1.58m providing a net return after all costs of 6.39%.

With financial return being the main objective, the Council accepts higher risk on commercial Investment than with treasury investments. The principal risk exposures include vacancies, and fall in capital value, currently the impact of these risks is considered low. The council does not currently have a limit on its commercial limit as investments have remained stable, however this may need to be reviewed in the future.

Governance: Decisions on commercial investments are made by the Council in line with the criteria set out in the Commercial Investment Strategy (elsewhere on the agenda) Property and most other commercial investments are also capital expenditure and purchases will therefore also be approved by Council as part of the capital programme.

Liabilities

In addition to debt of £6m of borrowing debt detailed above, the Council is committed to making future payments to cover its pension fund deficit (valued at £18m at 31st March 2020).

148 Governance: Decisions on incurring new discretional liabilities are taken by the Corporate Leadership Team in consultation with the Director of Resources. The risk of liabilities crystallising and requiring payment is monitored by the Financial Services Team and reported quarterly to Corporate Leadership Team.

Revenue Budget Implications

Although capital expenditure is not charged directly to the revenue budget, interest payable on loans and MRP are charged to revenue, offset by any investment income receivable. The net annual charge is known as financing costs; this is compared to the net revenue stream i.e. the amount funded from Council Tax, business rates and general government grants.

Table 9: Prudential Indicator: Proportion of financing costs to net revenue stream 2019/20 2020/21 2021/22 2022/23 2023/24 actual forecast budget budget budget Financing costs 515 404 462 467 467 (£’000) Proportion of net 4.93% 3.74% 4.38% 4.45% 4.44% revenue stream

Sustainability: Due to the very long-term nature of capital expenditure and financing, the revenue budget implications of expenditure incurred in the next few years will extend for up to 50 years into the future. The Director of Resources is satisfied that the proposed capital programme is prudent, affordable and sustainable.

Knowledge and Skills

The Council employs professionally qualified and experienced staff in senior positions with responsibility for making capital expenditure, borrowing and investment decisions. For example, the Director of Resources is a qualified accountant with over 30 years’ experience, the Financial Services Manager is a qualified accountant and the Principal Accountant has 6 years’ experience of treasury management with the Council. The Council pays for staff to study towards relevant professional qualifications including CIPFA, and AAT.

Where Council staff members do not have the knowledge and skills required, use is made of external advisers and consultants that are specialists in their field. The Council currently employs Arlingclose Limited as treasury management advisers. This approach is more cost effective than employing

149 such staff directly, and ensures that the Council has access to knowledge and skills commensurate with its risk appetite

Minimum Revenue Provision Statement 2021/22 Where the Authority finances capital expenditure by debt, it must put aside resources to repay that debt in later years. The amount charged to the revenue budget for the repayment of debt is known as Minimum Revenue Provision (MRP), although there has been no statutory minimum since 2008. The Local Government Act 2003 requires the Authority to have regard to the Department for Communities and Local Government’s Guidance on Minimum Revenue Provision the CLG Guidance) most recently issued in 2018.

The broad aim of the CLG Guidance is to ensure that capital expenditure is financed over a period that is either reasonably commensurate with that over which the capital expenditure provides benefits, or, in the case of borrowing supported by Government Revenue Support Grant, reasonably commensurate with the period implicit in the determination of that grant. The CLG Guidance requires the Authority to approve an Annual MRP Statement each year, and recommends a number of options for calculating a prudent amount of MRP.

The following statements incorporate options recommended in the Guidance:

 For capital expenditure incurred after 31st March 2008, MRP will be determined by charging the expenditure over the expected useful life of the relevant asset in equal instalments or as the principal repayment on an annuity with an annual interest rate equal to the average relevant PWLB rate for the year of expenditure starting in the year after the asset becomes operational.

 For assets acquired by finance, MRP will be determined as being equal to the element of the rent or charge that goes to write down the balance sheet liability.

 Capital expenditure incurred during 2021/22 will not be subject to a MRP charge until 2022/23

 Based on the Authority’s latest estimate of its Capital Financing Requirement on 31st March 2021, the budget for MRP has been set as follows:

150 31.03.2022 2021/22 Estimated Estimated CFR MRP

£‘000 £’000

Capital expenditure before 01.04.2008

Supported capital expenditure after 31.03.2008 5,551 101

Unsupported capital expenditure after 31.03.2008

Finance leases and Private Finance Initiative

Transferred debt

Loans to other bodies repaid in instalments

Voluntary overpayment (or use of prior year overpayments)

Total General Fund 5,551 101

*Due to a change in accounting for Leases (IFRS16), all leases both operating and finance leases from 1st April 2022 will be bought on to the balance sheet as a right of use asset if the asset has a lease term of greater than 12 months and is valued at more than £5,000.

The council currently has a number of operating leases of significant value which will increase the amount of debt liability. The change will not have an impact on the budget overall.

Currently Operating lease payments are charged to net cost of services. From 1st April 2022 a charge for depreciation and interest which will be the equivalent to the former lease payment will be charged to net cost of services. The depreciation charge will then be reversed through the movement of reserves and replaced with a minimum revenue provision.

Once the impact of the change is known, a further report stating the Minimum Revenue Provision will be presented for Members’ approval.

151 CORPORATE INVESTMENT STRATEGY 2021/22 (To be approved 4 March 2021)

1. Background and Introduction

1.1 This strategy outlines the Authority’s Corporate & Commercial Investment Strategy for 2021/22 for consideration and approval by Council before the start of the financial year.

1.2 The Authority’s Treasury Management Strategy, Capital Programme, Capital Strategy and Minimum Revenue Provision (MRP) Policy are addressed in other reports.

1.3 The Authority invests its money for three broad purposes: • because it has surplus cash as a result of its day-to-day activities, for example when income is received in advance of expenditure (known as treasury management investments), • to support local public services by lending to or buying shares in other organisations (service investments), and • to earn investment income (known as commercial investments where this is the main purpose). 1.4 This Corporate Investment Strategy meets the requirements of statutory guidance issued by the government in January 2018, and focuses on the second and third of these categories.

2. Treasury Management Investments

2.1 The Authority typically receives its income in cash (e.g. from taxes and grants) before it pays for its expenditure in cash (e.g. through payroll and to suppliers, benefit claimants etc.). It also holds reserves for future expenditure and collects local taxes on behalf of other local authorities and central government. These activities, plus the timing of borrowing decisions, lead to a cash surplus which is invested in accordance with guidance from the Chartered Institute of Public Finance and Accountancy (CIPFA). The balance of treasury management investments is expected to fluctuate between £11m and £25m during the 2021/22 financial year.

Contribution: The contribution that these investments make to the objectives of the Authority is to support effective treasury management activities and to generate income while having regard to security and liquidity.

152 Further details: Full details of the Authority's policies and its plan for 2021/22 for treasury management investments are covered in a separate document, the Treasury Management Strategy, available on the Authority’s website.

3. Service Investments

3.1 Service Investments: Loans

3.1.1 Contribution: The Authority has powers to lend money to any subsidiaries, its suppliers, business partners, parish and town councils, local charities, housing associations, its employees and to community groups to support local public services and stimulate local economic growth. For example, the Authority may give a loan to a local community group who are undertaking a project to deliver affordable housing. The capital programme that is to be approved in March 2020 includes one service loan in 2021/22 for £110,000.

3.1.2 Security: The main risk when making service loans is that the borrower will be unable to repay the principal lent and/or the interest due. In order to limit this risk, and ensure that total exposure to service loans remains proportionate to the size of the Authority, upper limits on the outstanding loans to each category of borrower have been set as follows:

Table 1: Loans for service purposes

Category of borrower 31.3.2020 Actual 2021/22 Balance Loss Net figure Approved owing allowance in accounts Limit Subsidiaries 0 0 0 £500,000 Town and parish 0 0 0 £500,000 councils Business partners 0 0 0 £1m Local charities 0 0 0 £500,000 Local community 0 0 0 £500,000 groups Housing associations 0 0 0 £1m TOTAL 0 0 0 £4m

3.1.3 Accounting standards require the Authority to set aside loss allowance for loans, reflecting the likelihood of non-payment. Should Council approve the service loan that has been included in the draft Capital Programme for 2020/21 or make other service investments in 2021/22, the figures for loans in the Authority’s statement of accounts from 2021/22 onwards will be shown net of this loss allowance. However, officers will makes every reasonable effort to collect the full sum lent and will put in place appropriate credit control arrangements in place to monitor payments and to recover overdue payments.

3.1.4 Risk assessment: The Authority will assess the risk of loss before entering into and whilst holding service loans, using the following approach:

153 1. The Authority will consider a comprehensive business case and business plan for each individual potential investment opportunity. This will include a market analysis focussing on competition, demand and current market trends.

2. To ensure that it has access to quality advice and expertise in specialist areas, the Authority will use external advisers where appropriate. This may include an assessment of the particular market that the Authority will be competing in, the nature and level of competition, an assessment of how the market/customer needs will evolve over time, barriers to entry and exit, legal and taxation issues and any ongoing investment requirements (such as a credit reference check). Each potential investment will undergo qualitative and quantitative appraisal to establish its relevance to the Authority’s Corporate Plan priorities and the legal and financial implications of the purchase.

3.2 Service Investments: Shares

3.2.1 Contribution: The Authority currently has an equal share in the Derbyshire Building Control Partnership, along with 5 other local authorities, to support local development by delivering a local service. The Authority has powers to invest in the shares of any subsidiaries, its suppliers, and business partners to support local public services and stimulate local economic growth.

3.2.2 Security: One of the risks of investing in shares is that they fall in value meaning that the initial outlay may not be recovered. In order to limit this risk, upper limits on the sum invested in each category of shares have been set as follows:

Table 2: Shares held for service purposes

Category of company 31.3.2020 Actual 2021/22 Amount Gains or Value Approved invested losses in accounts Limit Derbyshire Building £1 0 £1 £1 Control Partnership Business Partners 0 0 0 £500,000 TOTAL £1 0 £1 £500,001

3.2.3 Risk assessment: The Authority assesses the risk of loss before entering into and whilst holding shares by using the following approach:

1. The Authority will consider a comprehensive business case and business plan for each individual potential investment opportunity. This will include a market analysis focussing on competition, demand and current market trends.

154 the market/customer needs will evolve over time, barriers to entry and exit, legal and taxation issues and any ongoing investment requirements (such as a credit reference check). Each potential investment will undergo qualitative and quantitative appraisal to establish its relevance to the Authority’s core values and the legal and financial implications of the purchase.

3.2.4 Liquidity: Based on the approved limit in Table 2 the funds will not be required in the short term and may prudently be committed for the periods covered by this strategy.

3.3 Non-specified Investments: Shares are the only investment type that the Authority has identified that meets the definition of a non-specified investment in the government guidance. The limits above on share investments are therefore also the Authority's upper limits on non-specified investments. The Authority has not adopted any procedures for determining further categories of non-specified investment since none are likely to meet the definition.

4. Commercial Investments: Property

4.1 The MHCLG defines property to be an investment if it is held primarily or partially to generate a profit.

4.2 Contribution: The Authority currently invests in three retail sites with the intention of generating income that will be spent on local public services. The main property investments that are held are shown in the table below:

Table 3: Property held for investment purposes

Property Actual Actual 31.03.20 Expected 31.03.21 Purchase Gains or Value in Gains or Value in cost (losses) accounts (losses) accounts Retail Site 1 n/a* £1,337,000 £1,337,000 Retail Site 2 n/a* £121,000 £121,000 Retail Site 3 n/a* £128,000 £128,000 Bakewell £10,000 road site TOTAL £1,586,000 £1,596,000

*The council acquired ground leases for both investment properties in 1974.

4.3 The Authority has a Commercial Investment Strategy to set a framework for the expansion of the existing commercial investment portfolio with the intention of making a profit, wherever possible, that will be spent on local public services. The table below shows the total exposure forecast for 2021/22.

155 Table 4: Expected exposure: property held for investment purposes

Property 31.03.20 31.03.21 31.03.22 Actual Forecast Forecast Retail site 1 £1,337,000 £1,337,000 £1,337,000 Retail site 2 £121,000 £121,000 £121,000 Retail Site 3 £128,000 £128,000 £128,000 Other Commercial 0 10,000 £801,000 investments: Potential Property (investments 2021/22) TOTAL EXPOSURE £1,586,000 £1,596,000 £2,387,000

4.4 Security: In accordance with government guidance, the Authority considers a property investment to be secure if its accounting valuation is at or higher than its purchase cost including taxes and transaction costs.

Where the value in accounts is at or above purchase cost a fair value assessment of the Authority's investment property portfolio has been made within the past twelve months, and the underlying assets provide security for capital investment. Should the 2020/21 year end accounts preparation and audit process value these properties below their purchase cost, then an updated investment strategy will be presented to full council detailing the impact of the loss on the security of investments and any revenue consequences arising therefrom.

4.5 Risk assessment: The Authority assesses the risk of loss before entering into and whilst holding property investments by using the Commercial Investment Strategy and the following approach:

2. To ensure that it has access to quality advice and expertise in specialist areas, the Authority will use external advisers where appropriate. This may include advice from the Authority’s retained Commercial Development Advisor, an assessment of the particular market that the Authority will be competing in, the nature and level of competition, an assessment of how the market/customer needs will evolve over time, barriers to entry and exit, legal and taxation issues and any ongoing investment requirements (such as a credit reference check). Each potential investment will undergo qualitative and quantitative appraisal to establish its relevance to the Authority’s core values and the legal and financial implications of the purchase.

4.5 Liquidity: Compared with other investment types, property is relatively difficult to sell and convert to cash at short notice, and can take a considerable period

156 to sell in certain market conditions. To ensure that the invested funds can be accessed when they are needed, for example to repay capital borrowed, the Authority will only invest cash that is not needed in the short term based on current cash flow predictions. In addition to this a well-diversified property portfolio will be held, spread across different property sectors.

5. Other Categories of Commercial Investment

5.1 The Authority had an investment reserve, from which Council could approve other types of investment, e.g. loans for commercial purposes. In 2021/22 the balance on this reserve has been fully committed to the investment property project at Bakewell Road, Matlock.

5.2 Contribution: The Authority does not currently have any non-property commercial investments. The Authority has a Commercial Investment Strategy which provides a framework to expand its existing commercial investment portfolio with the intention of making a profit wherever possible that will be spent on local public services. The table below shows the total exposure forecast for 2021/22.

Table 5: Expected exposure: Other commercial investments

31.03.20 31.03.21 31.03.22 Actual Forecast Forecast Other Commercial 0 0 £500,000 investments: (investments 2021/22) TOTAL EXPOSURE 0 0 £500,000

5.3 Security: In accordance with government guidance, the Authority considers a commercial investment to be secure if its accounting valuation is at or higher than its purchase cost including taxes and transaction costs.

Where accounts preparation and audit process value these investments below their purchase cost, then an updated investment strategy will be presented to full council detailing the impact of the loss on the security of investments and any revenue consequences arising therefrom.

5.4 Risk assessment: The Authority assesses the risk of loss before entering into and whilst holding property investments by using the by using the Commercial Investment Strategy and the following approach:

2. To ensure that it has access to quality advice and expertise in specialist areas, the Authority will use external advisers where appropriate. This may

157 include advice from the Authority’s retained Commercial Development Advisor, an assessment of the particular market that the Authority will be competing in, the nature and level of competition, an assessment of how the market/customer needs will evolve over time, barriers to entry and exit, legal and taxation issues and any ongoing investment requirements (such as a credit reference check). Each potential investment will undergo qualitative and quantitative appraisal to establish its relevance to the Authority’s core values and the legal and financial implications of the purchase.

5.5 Liquidity: Compared with other investment types, property is relatively difficult to sell and convert to cash at short notice, and can take a considerable period to sell in certain market conditions. To ensure that the invested funds can be accessed when they are needed, for example to repay capital borrowed, the Authority will only invest cash that is not needed in the short term based on current cash flow predictions. In addition to this a well-diversified property portfolio will be held, spread across different property sectors.

6 Loan Commitments and Financial Guarantees

6.1 Although not strictly counted as investments, since no money has exchanged hands yet, loan commitments and financial guarantees carry similar risks to the Authority and, therefore, are included in this Strategy for completeness.

6.2 The Authority has contractually committed to make a Loan of £110,000 to Hurst farm Social Club in 2021/22 to support regeneration of the building, this will be repaid to the council by March 2022.

7 Proportionality

7.1 For 2021/22 the Authority’s revenue budget includes some income arising from profit-generating investment activity. Table 6 below shows the extent to which the expenditure planned to meet the service delivery objectives and/or place making role of the Authority is dependent on achieving the expected net profit from investments over the lifecycle of the Medium Term Financial Plan. Should it fail to achieve the expected net profit, the Authority's contingency plan for continuing to provide these services is to use the General Reserve, which is forecast to have a balance of £738,000 at 31 March 2022.

Table 6: Proportionality of Investments

2019/20 2020/21 2021/22 2022/23 2023/24 Actual Forecast Budget MTFP MTFP £’000 £’000 £’000 £’000 £’000 Gross service 31,196 31,726 30,264 30,849 31,466 expenditure Investment income 101 101 101 149 164 Proportion 0.32% 0.32% 0.34% 0.48% 0.52%

158 8 Borrowing in Advance of Need

Government guidance is that local authorities must not borrow more than or in advance of their needs purely in order to profit from the investment of the extra sums borrowed.

9 Capacity, skills and culture

9.1 This Authority recognises the importance of ensuring that all Elected Members and Officers involved in investment decisions are fully equipped to undertake the duties and responsibilities allocated to them and have the appropriate capacity, skills and information to enable them to make informed decisions e.g. as to whether to enter into a specific investment. There is a requirement to understand: • the context the Authority’s corporate objectives • the Authority’s risk appetite and risk assessment framework • the prudential framework • the regulatory regime in which the council operates.

9.2 Officers: The Authority will therefore seek to appoint individuals who are both capable and experienced and will provide training for staff to enable them to acquire and maintain an appropriate level of expertise, knowledge and skills. The following measures are in place: • Identification of officer training needs on commercial investment related issues through the Performance Development and Review process; • Attendance at relevant training events, seminars and workshops; and • Support from the Authority’s treasury management advisors, Arlingclose.

9.3 Elected Members: Elected members’ training needs are assessed through the Member Development Group. The Authority will also specifically address this important issue by: • Periodically facilitating workshops or other training for members on commercial investment issues; • Interim reporting and advice to members.

9.4 Where necessary the Authority will engage external advisers for investment advice, property surveys and due diligence checks. The cost of any such advice will be taken into account when developing business cases and when assessing the overall viability of projects.

9.5 It is important that the Authority has sound arrangements in place to ensure accountability, responsibility and authority for decision making on investment activities within the context of the Authority’s values. In terms of governance, all new commercial investment proposals will be considered by Full Council. Full Council is responsible for the approval of the Corporate Investment Strategy and for monitoring performance against it.

159 9.6 The Authority’s values include transparency in decision-making. To facilitate that, the following arrangements are in place:

• This Corporate Investment Strategy will be made available on the Authority’s website; • Meetings of Policy Committees and Full Council will be open to the public and the agendas and minutes from such meetings will be shown on the Authority’s website.

10 Commercial deals

10.1 The Authority has a decision making framework which is aligned to the requirements of the Statutory Guidance Relating to Local Authority Investments. Any future commercial investment opportunities will be considered by Full Council. The Council is not able to borrow from PWLB for projects

The guiding principles that will be used will require future commercial projects to:

• meet the Authority’s Corporate Priorities; • deliver community benefit; • require minimum investment for maximum return; • be primarily within the District boundaries, consideration will be given to opportunities outside these boundaries if the benefit to the Council or Derbyshire Dales is significant: • grow the business base; • deliver a diversified portfolio of projects that balance risk and return.

The Council will assess future commercial investment against the Commercial Investment Strategy. All investments will be subject to rigorous scrutiny and successful schemes will result in the provision of a report to Council for approval. Schemes will be considered for investment against the following criteria;

i. Economic Impact – in particular; jobs, business growth and new housing. ii. Impact on Market Towns– in terms of vibrancy, footfall and heritage. iii. Financial Implications - value for money, affordability (note impact on PWLB borrowing (see 11.2 below) and return of investment. iv. Deliverability – the ability to deliver the proposals and the associated risks.

Successful applications will require appropriate legal agreements in accordance including the provision of appropriate security where required.

160 11 Investment Indicators

The Authority has set the following quantitative indicators to allow elected members and the public to assess the Authority's total risk exposure as a result of its investment decisions.

11.1 Total risk exposure: The first indicator shows the Authority's total exposure to potential investment losses. This includes amounts the Authority is contractually committed to lend but have yet to be drawn down and guarantees the Authority has issued over third party loans.

Table 7: Total investment exposure £ Millions

Type of investment 31.03.20 31.03.21 31.03.22 Actual Forecast Forecast £ Millions £ Millions £ Millions Treasury management 19 24 15 investments Service investments: 0 0 4 Loans Service investments: 0 0 0.5 Shares Commercial investments: 1.51 1.60 2.38 Property Commercial investments: 0 0 0.5 Other TOTAL INVESTMENTS 20.51 25.6 22.38 Commitments to lend 0 0 0 Guarantees issued on 0 0 0 loans TOTAL EXPOSURE 20.51 25.6 22.38

11.2 How investments are funded

Government guidance is that these indicators should include how investments are funded. Since the Authority does not normally associate particular assets with particular liabilities, this guidance is difficult to comply with. All of the Authority's investments are funded by usable reserves and income received in advance of expenditure.

Guidance on the use of borrowing to fund commercial investments was issued by PWLB in November 2020. Under the new rules, councils seeking to borrow from the PWLB will now have to provide a three year capital plan, confirming it does not intend to borrow primarily for yield at any point over the period or from any source. The new guidance appears to prevent local authorities from borrowing from the PWLB if the intention of the borrowing is primarily for the generation of yield. Capital spending plans will have to be submitted in advance, and if a local authority intends to buy commercial assets primarily for yield (even

161 using reserves) then they will be prevented from taking any PWLB borrowing in that financial year.

The Authority does not currently have any investments which are funded by borrowing.

11.3 Rate of return received: This indicator shows the investment income received less the associated costs, including the cost of borrowing where appropriate, as a proportion of the sum initially invested. Note that due to the complex local government accounting framework, not all recorded gains and losses affect the revenue account in the year they are incurred.

Table 9: Investment rate of return (net of all costs)

Type of investment 31.03.20 31.03.21 31.03.22 Actual Forecast Forecast Treasury management 0.70% 0.28% 0.11% investments Service investments: N/A N/A At least Loans 0.60% Service investments: N/A N/A At least Shares 0.60% Commercial investments: 6.4% 6.3% 4.2% Property Commercial investments: N/A N/A At least Other 0.60%

162 COMMERCIAL INVESTMENT STRATEGY 2021/22 (To be approved 4 March 2021)

1. Purpose

1.1. The objective of the Commercial Investment Strategy is to establish a framework for the identification of commercial investments which, if made, would provide the Authority with an income stream and potential business growth, regeneration, housing or other opportunities that align with Corporate Priorities.

2. Introduction

2.1. The Authority aims to become financially self-sufficient as central government funding reduces. This includes ensuring that the Authority maximises any income from existing assets and, where there is a robust business case, invests in assets where there is a commercial return. The Authority has limited resources (held in reserves) which may mean that borrowing might not be required for some investments. These reserves are invested with various financial institutions in line with the Authority’s Treasury Management Strategy. However, other investments may represent an opportunity to generate higher returns on these funds. Where the Authority does not have resources available from reserves, any borrowing for investment purposes would need to be prudent, sustainable and comply with government guidance and the CIPFA Prudential Code.

2.2. The Authority’s Corporate Investment Strategy sets out the overall strategy for investments, along with an overview of the arrangements and financial limits (and total exposure) that apply to each type of investment, including commercial investments for 2021/22. The tables below show the expected exposure and limits that apply to commercial investments, as set out in the Corporate Investment Strategy:

163 Expected exposure: property held for investment purposes

2.3 This Commercial Investment Strategy aims to provide a robust and viable framework for the acquisition of commercial investments. The key underlying objectives are:

• Governance Arrangements – to provide a decision making framework aligned to the requirements of the Statutory Guidance Relating to Local Authority Investments (Appendix A);

• Investment Criteria – to identify suitable investment opportunities;

• Risk Management – to balance the requirement for income return with an acceptable level of managed risk;

• Financial Viability – each potential investment will have a comprehensive business case and business plan, which will be evaluated to ensure the income received is sufficient to provide an acceptable rate of return on the repayment of any borrowing costs, management fees and any running costs.

2.4 The management of the Council’s existing property portfolio (comprising operational and commercial investment properties) is managed by the Corporate Property Group. This Group will ensure that all property investments acquired under this Strategy continue to be appropriately managed.

3. Principles

3.1 Any commercial investment will reflect the following principles:

164 • grow the business base; • deliver a diversified portfolio of projects that balance risk and return; • be in accordance with statutory guidance and best practice issued by CIPFA.

4. Governance Arrangements

4.1 Council

4.1.1 The Authority has a decision making framework that is aligned to the requirements of the Statutory Guidance Relating to Local Authority Investments. Any decisions that relate to commercial investments, particularly if borrowing is required, will be referred to full Council for approval.

4.1.2 The (full) Council will assess future commercial investment against the criteria set out in this Commercial Investment Strategy. All investments will be subject to rigorous scrutiny.

4.1.3 For a potential investment to be considered by the (full) Council, it must:-

• achieve a score of excellent, good or satisfactory in at least 50% of the applicable criteria set out in the investment criteria matrix; and

• be accompanied by a full and comprehensive business case and business plan.

4.1.4 The business case will be prepared by the a core team of Officers comprising the Chief Executive, the Director of Customer and Corporate Services (Monitoring Officer) and the Director of Resources (Chief Financial Officer), together with other relevant Officers e.g. Legal Services Manager, Financial Services Manager, Estates and Facilities Manager, Economic Development Manager. Each potential investment will undergo qualitative and quantitative appraisal to establish portfolio suitability. The legal and financial implications of the investment will be assessed. The core team will seek external investment and/or technical expertise where specialist knowledge is required that is not available in-house (see the section on risk management below).

4.1.5 All investments in property, where relevant, will be subject to building survey, purchase report and valuation. Occasionally, opportunities will arise that do not score highly on the matrix criteria and in these circumstances, low scoring properties will be considered by the Council on their own individual regeneration, economic development, employment, housing and community benefit merits, in accordance with the decision making process outlined below.

4.2 Decision Making Process

4.2.1 It is acknowledged that commercial investment opportunities may require agile and quick decision making. However, in order to ensure appropriate governance arrangements are maintained, investment decisions will be made

165 in accordance with the Council’s existing decision making process, limits of authority and Scheme of Delegation contained within the Council’s Constitution. Where it is not possible to wait until the next Council meeting, an extra-ordinary meeting will be arranged as soon as practicably possible.

5. Investment Criteria

5.1 All investments must reflect the requirements within the Statutory Guidance on Local Government Investments issued under Section 15(1) (a) of the Local Government Act 2003’, which came into force April 2018. Further details of this statutory guidance are available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/at tachment_data/file/678866/Guidance_on_local_government_investments.pdf A copy of this guidance is also attached at Appendix A 5.2 Guidance on the use of borrowing was issued by PWLB in November 2020. Under the new rules, councils seeking to borrow from the PWLB will now have to provide a three year capital plan, confirming it does not intend to borrow primarily for yield at any point over the period or from any source. The new guidance appears to prevent local authorities from borrowing from the PWLB if the intention of the borrowing is primarily for the generation of yield. Capital spending plans will have to be submitted in advance, and if a local authority intends to buy commercial assets primarily for yield (even using reserves) then they will be prevented from taking any PWLB borrowing in that financial year. Each local authority that wishes to borrow from the PWLB will in future have to submit a high-level description of their capital spending and financing plans for the following three years, including their expected use of the PWLB. Local authorities will be able to revise these plans in-year as required.

The section 151 officer will have to provide an assurance that the local authority is not borrowing in advance of need and does not intend to buy investment assets primarily for yield.

5.3 Table 1 below sets out a summary of the statutory guidance & PWLB requirements:

166 Requirement Considerations

Clearly show how investments • Need to align with Corporate Plan priorities contribute to Council’s • Clarify purpose and extent to which it objectives supports deficit reduction and /or economic regeneration in the District Strategy must include • How is it funded? indicators to show how • Rate of return expected and why councillors have assessed the (benchmarked) total risk exposure on decision • Show additional debt costs • Risks over the repayment period • Extent of support for deficit gap • Mitigation if returns fail and / or borrowing increases • Assessment of capital depreciation Clearly show how the • Loan corresponds in size or degree investment is proportionate? (terms/rate/returns) • Risk exposure is reasonable and accepted • Within agreed and defined ‘affordability ‘ limit Risk assessment should be • Market assessment (competition, demand, robust trends) • Proper quality external advice and expertise • Credit ratings Contingency • Loss of investment return / Increase in loan repayments • Capital depreciation • Extra costs and budget impact • Loss of revenue stream - service delivery impact Sources of funding • Borrowing from PWLB is not allowed where it is intended to buy investment assets primarily for yield (even using reserves for the commercial investment and the borrowing is for other schemes)

5.3 Consideration must also be given to a number of essential elements which will inform acceptable investment choices, specifically: • Ethical investment (for instance, prohibiting investment in  Alcohol products where over 25% of those attending or using the services are under 18  Tobacco products

167  Unhealthy food or unhealthy lifestyles  Weaponry or Arms Trading  Gambling  Racism  Sex Establishments  Political parties  Any other relationship that would have a negative impact on the Council

• Legal issues, such as:  Does the Council have the necessary legal powers to support the project?  Have State Aid issues been assessed?

5.4 Schemes will be considered for investment against the following criteria;

i. Economic Impact – in particular; jobs, business growth and new housing. This also includes wider economic benefits e.g. local supply chain. ii. Impact on Market Towns– in terms of vibrancy, footfall and heritage. iii. Financial Implications - value for money, affordability and return of investment, limits of individual and cumulative risk, the level of losses that can be tolerated, and the degree to which the Council can realistically become reliant on the income stream to provide services. iv. Deliverability – the ability to deliver the proposals within required timescales and the associated risks.

5.5 Successful applications will require appropriate legal agreements with the provision of appropriate security where required.

5.6 Commercial investment is a trade-off between risk and return. A traditional well diversified property portfolio (spread across different property sectors and geographical regions) will deliver a balanced long term return with minimal risk.

5.7 This strategy adopts the same underlying principles of diversification in acquiring property investments. Five main property sectors will be included (housing, industrial, office, leisure and retail) and in turn, these will be diversified on criteria including location, the tenant’s financial (covenant) strength, lease term (income duration) and investment lot size. This will assist in protecting the Authority portfolio’s return should a property investment cease to be income producing (for example, it is undergoing refurbishment or awaiting a new tenant).

5.8 A Commercial Investment Criteria Scoring Matrix (Matrix) allows the relative merits of an investment opportunity to be measured and assessed against a target threshold. The Matrix is attached at Appendix B and includes the following criteria (not all will be relevant to all projects):

• Meeting the Council’s Priorities – it is important that the investment supports the Council’s priorities as set out in its Corporate Plan.

168 • Providing community benefit – what level of community benefit will the scheme deliver?

• Rate of Return - % rent against capital or interest repayments. Rates of return must be better than investing through Treasury Management processes.

• Proximity to Derbyshire Dales - Projects / opportunities arising outside Authority boundaries will be considered where rates of return justify the investment.

• Location - the location of the property is critical to ensure it is an attractive position, so that in the long term it optimises its ability to re-let/re-sell if capital is required, or is strategically located for re-development. The location of the property will affect the ability of the Council to undertake inspections and to deal with management issues without the need to employ specialist agents. It will also affect income to the Council from Business rates, Council Tax and New Homes Bonus, depending on the type of investment.

• Reduction in costs of service delivery for the Council, e.g. Investment in new technologies – Will the project result in efficiency savings for the Council? If so, the level will be assessed.

• Jobs created / safeguarded - Business growth and job creation is the Council’s top priority. The council may wish to prioritise schemes that create or safeguard jobs.

• Increase in business rate or council tax income for DDDC – As well as an investment return, will the council benefit from additional council tax or business rates income?

• Tenancy strength - the quality of the tenant and, more importantly, their ability to pay the rent on time and in full is essential. This is particularly important where the Council has borrowed against the investment, and minimum acceptable financial strength for any given tenant will be determined through a financial appraisal of company accounts and the use of appropriate methods of risk assessment and credit scoring. It is however worth noting that the Council, as a public body, may not wish to invest in properties where the occupiers are generally seen to be undertaking business which is contrary to its corporate values.

• Lease length and break (for main tenants/income) – the lease term will determine the duration of the tenant’s contractual obligation to pay rent. The most attractive investments offer a long lease with a strong tenant covenant. The lease term will reflect any tenant break clauses. The unexpired length of the term of the lease is of key importance in ensuring that the revenue stream is secure and uninterrupted. The Council will take into consideration the risks associated with a tenant vacating and the potential to attract good quality

169 replacements tenants at acceptable rental levels.

• Portfolio mix - The Council can minimise its exposure to risk by spreading investments across sectors and by avoiding single large scale investments. Generally there is a spread of investment across sectors. Property investments will be expected to provide a balance over five main property sectors (housing, employment use, office, leisure and retail).

• Voids – Is there a past history of voids? A high level of voids would make the project unviable.

• Tenure – anything less than a freehold acquisition will need to be appropriately reflected in the price. The length of the lease will affect the sustainability of the project.

• Tenant Repair obligations – under a Full Repairing & Insuring Lease (FRI), the tenant is responsible for the building’s interior and exterior maintenance / repair. The obligation is limited to the building’s interior under an Internal Repairing & Insuring Lease (IRI). The preference will be to favour FRI terms (or FRI by way of service charge i.e. all costs relating to occupation and repairs are borne by the tenants and administered through a service charge).

• Building Quality – a brand new or recently refurbished building will not usually require capital expenditure for at least 15 years. This is attractive for income; the aim is for a long term rental income with the minimum of ongoing capital expenditure. • Rental Growth Prospects – Is there potential to grow income in future years? This will make the project more financially sustainable.

• Level of investment – Does the Council have the resources to meet the level of investment in the required timescale?

• Energy Rating - An A rated property is superior in terms of environmental protection. 2018 legislation states that properties with F or G ratings can't be let so these would not be permitted under this Strategy.

5.9 The Commercial Investment Criteria Scoring Matrix is supplemented by additional contextual information and by:

a) additional contextual information b) due diligence checks and financial checks, including building surveys, legal title checks, credit references etc. where relevant. c) a SWOT Analysis

6. Risk Management

6.1 This will include a market analysis focussing on competition, demand and current market trends.

170 6.2 To ensure that it has access to quality advice and expertise in specialist areas, the Authority will use external advisers where appropriate. This may include advice from the Authority’s retained Commercial Development Advisor, an assessment of the particular market that the Authority will be competing in, the nature and level of competition, an assessment of how the market/customer needs will evolve over time, barriers to entry and exit, legal and taxation issues and any ongoing investment requirements (such as a credit reference checks). Each potential investment will undergo qualitative and quantitative appraisal to establish its relevance to the Authority’s core values and the legal and financial implications of the purchase.

6.3 Market forces

As with all investments, there are risks that capital values and rental values can fall as well as rise. To mitigate against future unfavourable market forces, acquisitions will be made on the basis that the Council is willing and capable of:-

• Holding property investments for the long term i.e. 25 years +. This will ensure income and capital returns are considered over the long term thereby smoothing out any cyclical economic/property downturns.

• Fixing borrowing liabilities. The Council can borrow from the Public Works Loan Board at historically low levels thus protecting the Council from future Increases in financing rates.

• Effective partnership working to share risk where appropriate, for example, joint venture arrangements or limited liability partnerships.

6.4 Portfolio Management

To mitigate the risk of void periods where the property is either partially or fully vacant, or a tenant has defaulted on its rental obligations, the investment portfolio will be actively managed.

In addition, the investment criteria specified in the scoring matrix favours secure property investments i.e. high quality buildings in prime locations, thus mitigating the risk of void periods on re-letting.

6.5 Resources

Property investment markets are, in general, controlled by national and regional commercial property agencies and establishing links and relationships with a number of such property agents is the best method of sourcing suitable properties for acquisition.

Staffing resources will be made available in order to source suitable property assets for acquisition that match the criteria set under the Strategy. If additional resources are required for specific projects, this can be done either by recruitment into the existing Estates and Facilities Team or by engaging suitable

171 and appropriate external expertise as required. It is recognised that expertise is essential to enable informed decision making.

7. Financial Viability

7.1 The financial viability of each individual potential investment opportunity will be fully assessed within a comprehensive business case and business plan. In order to reflect the potential risk that may arise as a consequence of undertaking commercial investment and provide a sufficient financial contribution to the Council’s General Fund, a positive Internal Rate of Return (IRR) is required. However, the Council may still consider pursuing an investment if the IRR is positive but low if it meets the Council’s Corporate Priorities. Rates of return must be better than investing through Treasury Management processes.

7.2 The level of return will be heavily influenced by two factors: (a) the cost of capital and (b) the regulatory requirements of the minimum revenue provision (MRP).

172 Annex A

STATUTORY GUIDANCE ON LOCAL GOVERNMENT INVESTMENTS (3rd Edition) - Issued under section 15(1)(a) of the Local Government Act 2003 and effective for financial years commencing on or after 1 April 2018

POWER UNDER WHICH THE GUIDANCE IS ISSUED 1. The following Guidance is issued by the Secretary of State under section 15(1)(a) of the Local Government Act 2003. Under that section local authorities are required to “have regard” to “such guidance as the Secretary of State may issue”.

DEFINITION OF TERMS 2. In this guidance the 2003 Act means the Local Government Act 2003.

3. Local authority has the meaning given in section 23 of the 2003 Act. To the extent that this guidance applies to parish councils and charter trustees (see paragraph 11) a reference to a local authority includes those councils and trustees.

4. The definition of an investment covers all of the financial assets of a local authority as well as other non-financial assets that the organisation holds primarily or partially to generate a profit; for example, investment property portfolios. This may therefore include investments that are not managed as part of normal treasury management processes or under treasury management delegations.

5. For the avoidance of doubt, the definition of an investment also covers loans made by a local authority to one of its wholly-owned companies or associates, to a joint venture, or to a third party. The term does not include pension funds or trust fund investments, which are subject to separate regulatory regimes and therefore are not covered by this guidance.

6. A credit rating agency is one of the following three companies: • Standard and Poor’s; • Moody’s Investors Service Ltd; and • Fitch Ratings Ltd.

7. For the purposes of this guidance a loan is a written or oral agreement where a local authority temporarily transfers cash to a third party, joint venture, subsidiary or associate who promises to return it according to the terms of the agreement, normally with interest. This definition does not include a loan to another local authority, which is classified as a specified investment.

8. The Treasury Management Code means the statutory code of practice issued by CIPFA: “Treasury Management in the Public Services: Code of Practice and Cross- Sectoral Guidance Notes, 2017 Edition”.

9. The Prudential Code means the statutory code of practice, issued by CIPFA: “The Prudential Code for Capital Finance in Local Authorities, 2017 Edition”.

10. The Capital Strategy is the strategy required by the updates to the Prudential Code and Treasury Management Code.

173 APPLICATION Effective date 11. This guidance applies for financial years commencing on or after 1 April 2018. It supersedes all previous editions of the Statutory Guidance on Local Authority Investments.

12. Strategies presented to Council or equivalent before 1 April 2018 but relating to 2018- 19 and future financial years do not need to include all of the additional disclosures required by this edition of the guidance should it not prove practical or cost effective to do so. If a local authority chooses not to include the new disclosures in its 2018-19 Strategy, it must include the disclosures in full in the first Strategy presented to full Council or equivalent after 1 April 2018.

Local authorities 13. This guidance applies to all local authorities in England.

14. This guidance applies to parish councils and charter trustees, providing their total investments exceed or are expected to exceed £100,000 at any time during the financial year. Where a parish council or charter trustee expects its total investments to be between £10,000 and £100,000, it is encouraged to adopt the principles in this guidance.

KEY PRINCIPLES

Transparency and democratic accountability 15. For each financial year, a local authority should prepare at least one Investment Strategy (“the Strategy”). The Strategy should contain the disclosures and reporting requirements specified in this guidance.

16. The Strategy should be approved by the full council. For authorities without a full Council, the Strategy should be approved at the closest equivalent level. The Secretary of State recommends that the Strategy should be presented for approval prior to the start of the financial year.

17. Where a local authority proposes to make a material change to its Strategy during the year a revised Strategy should be presented to full council or equivalent for approval before the change is implemented.

18. The Strategy should be publicly available on a local authority’s website. Where a parish council or charter trustee does not maintain its own website, they should post a public notice detailing how local residents can obtain a copy of the Strategy, free of charge.

19. Where a local authority prepares a Capital Strategy in line with the requirements of the Prudential Code, a Treasury Management Strategy in line with the requirements of the Treasury Management Code, or any other publicly available document, the disclosures required to be included in the Strategy can be published in those documents instead of in the Strategy.

Contribution 20. Investments made by local authorities can be classified into one of two main categories: • Investments held for treasury management purposes; and • Other investments.

174 21. Where local authorities hold treasury management investments, they should apply the principles set out in the Treasury Management Code. They should disclose that the contribution that these investments make to the objectives of the local authority is to support effective treasury management activities. The only other element of this Guidance that applies to treasury management investments is the requirement to prioritise Security, Liquidity and Yield in that order of importance.

22. Local authorities should disclose the contribution that all other investments make towards the service delivery objectives and/or place making role of that local authority. It is for each local authority to define the types of contribution that investments can make and a single investment can make more than one type of contribution.

Use of indicators 23. The Strategy should include quantitative indicators that allow Councillors and the public to assess a local authority’s total risk exposure as a result of its investment decisions. This should include how investments are funded and the rate of return received. Where investment decisions are funded by borrowing the indicators used should reflect the additional debt servicing costs taken on.

24. Local authorities should consider the most appropriate indicators to use, given their risk appetite and capital and investment strategies. Whilst this guidance does not prescribe specific indicators or thresholds, the indicators used should be consistent from year to year and should be presented in a way that allows elected members and the general public to understand a local authorities’ total risk exposure from treasury management and other types of investment.

25. Where a local authority has entered into a long term investment or has taken out long term debt to finance an investment the indicators used should allow Councillors and the general public to assess the risks and opportunities of the investment over both its payback period and over the repayment period of any debt taken out.

Security, Liquidity and Yield 26. A prudent investment policy will have two underlying objectives: • Security – protecting the capital sum invested from loss; and • Liquidity – ensuring the funds invested are available for expenditure when needed.

27. The generation of yield is distinct from these prudential objectives. However, this does not mean that local authorities are recommended to ignore potential revenues. Once proper levels of security and liquidity are determined, it will then be reasonable to consider what yield can be obtained consistent with these priorities.

28. When entering into treasury management investments, local authorities should consider security, liquidity and yield in that order of importance.

29. When entering into other types of investments local authorities should consider the balance between security, liquidity and yield based on their risk appetite and the contribution(s) of that investment activity.

Security Financial Investments 30. Financial investments can fall into one of three categories:

175 • Specified investments; • Loans; and • Other Non-specified investments.

Specified Investments 31. An investment is a specified investment if all of the following apply: • The investment is denominated in sterling and any payments or repayments in the respect of the investment are payable only in sterling. • The investment is not a long term investment. This means that the local authority has contractual right to repayment within 12 months, either because that is the expiry term of the investment or through a non-conditional option. • The making of the investment is not defined as capital expenditure by virtue of Regulation 25(1)(d) of the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 [as amended]. • The investment is made with a body or in an investment scheme described as high quality (see paragraph 33 or with one of the following bodies: i. The United Kingdom Government; ii. A local authority in England or Wales (as defined in section 23 of the 2003 Act) or a similar body in Scotland or Northern Ireland; or iii. A parish council or community council.

32. For the purposes of paragraph 32 the Strategy should define high credit quality. Where this definition incorporates ratings provided by credit rating agencies paragraph 42 is relevant.

Loans 33. A local authority may choose to make loans to local enterprises, local charities, wholly owned companies and joint ventures as part of a wider strategy for local economic growth even though those loans may not all be seen as prudent if adopting a narrow definition of prioritising security and liquidity.

34. Local authorities can make such loans whilst continuing to have regard to this guidance if they can demonstrate in their Strategy that: • Total financial exposure to these type of loans is proportionate; • They have used an allowed “expected credit loss” model for loans and receivables as set out in International Financial Reporting Standard (IFRS) 9 Financial Instruments as adopted by proper practices to measure the credit risk of their loan portfolio; • They have appropriate credit control arrangements to recover overdue repayments in place; and • The local authority has formally agreed the total level of loans by type that it is willing to make and their total loan book is within their self-assessed limit.

Non-specified investments 35. A non-specified investment is any financial investment that is not a loan and does not meet the criteria to be treated as a specified investment.

36. For non-specified investments (i.e. those not meeting the criteria in paragraph 31), the Strategy should: • Set out procedures for determining which categories of investments may be prudently used (and where these procedures involve the use of credit ratings, paragraph 32 is relevant). • Identify which categories of investments have been defined as suitable for use.

176 • State the upper limits for the maximum amounts both individually and cumulatively that may be held in each identified category and for the overall amount held in non- specified investments and confirm that investments made have remained within those limits.

Non-financial investments 37. As defined in paragraph 4 of this guidance non-financial investments are non-financial assets that the organisation holds primarily or partially to generate a profit. Where a local authority holds a non-financial investment, it will normally have a physical asset that can be realised to recoup the capital invested. Local authorities should consider whether the asset retains sufficient value to provide security of investment using the fair value model in International Accounting Standard 40: Investment Property as adapted by proper practices.

38. Where the fair value of non-financial investments is sufficient to provide security against loss, the Strategy should include a statement that a fair value assessment has been made within the past twelve months, and that the underlying assets provide security for capital investment.

39. Where the fair value of non-financial investments is no longer sufficient to provide security against loss, the Strategy should provide detail of the mitigating actions that the local authority is taking or proposes to take to protect the capital invested.

40. Where a local authority recognises a loss in the fair value of a non-financial investment as part of the year end accounts preparation and audit process, an updated Strategy should be presented to full council detailing the impact of the loss on the security of investments and any revenue consequences arising therefrom.

Risk Assessment 41. The Strategy should state the local authority’s approach to assessing risk of loss before entering into and whilst holding an investment, making clear in particular: • How it has assessed the market that it is/will be competing in, the nature and level of competition, how it thinks that the market/customer needs will evolve over time, barriers to entry and exit and any ongoing investment requirements. • Whether and, if so how, a local authority uses external advisors be they treasury management advisors, property investment advisors or any other relevant persons. • How the local authority monitors and maintains the quality of advice provided by external advisors. • To what extent, if at all, any risk assessment is based on credit ratings issued by credit ratings agencies. • Where credit ratings are used, how frequently they are monitored and the procedures for taking action if credit ratings change. • What other sources of information are used to assess and monitor risk.

Liquidity 42. For financial investments that are not treasury management investments or loans the Strategy should set out the procedures for determining the maximum periods for which funds may prudently be committed and state what those maximum periods are and how the local authority will stay within its stated investment limits.

43. For non-financial investments the Strategy should set out the procedures for ensuring that the funds can be accessed when they are needed, for example to repay capital borrowed. It should also state the local authority’s view of the liquidity of the investments that it holds, recognising that assets can take a considerable period to

177 sell in certain market conditions. Where local authorities hold non-financial investment portfolios they can choose to assess liquidity by class of asset or at a portfolio level if appropriate.

Proportionality 44. Where a local authority is or plans to become dependent on profit generating investment activity to achieve a balanced revenue budget, the Strategy should detail the extent to which funding expenditure to meet the service delivery objectives and/or place making role of that local authority is dependent on achieving the expected net profit. In addition, the Strategy should detail the local authority’s contingency plans should it fail to achieve the expected net profit.

45. The assessment of dependence on profit generating investments and borrowing capacity allocated to funding these should be disclosed as a minimum over the lifecycle of the Medium Term Financial Plan. However, an assessment of longer term risks and opportunities is recommended.

Borrowing in advance of need

46. Authorities must not borrow more than or in advance of their needs purely in order to profit from the investment of the extra sums borrowed.

47. Where a local authority chooses to disregard the Prudential Code and this Guidance and borrows or has borrowed purely to profit from the investment of the extra sums borrowed the Strategy should explain: • Why the local authority has decided not to have regard to this Guidance or to the Prudential Code in this instance; and • The local authority’s policies in investing the money borrowed, including management of the risks, for example, of not achieving the desired profit or borrowing costs increasing.

Capacity, skills and culture

48. The Strategy should disclose the steps taken to ensure that those elected members and statutory officers involved in the investments decision making process have appropriate capacity, skills and information to enable them to take informed decisions as to whether to enter into a specific investment, to assess individual assessments in the context of the strategic objectives and risk profile of the local authority and to enable them to understand how the quantum of these decisions have changed the overall risk exposure of the local authority.

49. The Strategy should disclose the steps taken to ensure that those negotiating commercial deals are aware of the core principles of the prudential framework and of the regulatory regime within which local authorities operate.

50. Where appropriate the Strategy should comment on the corporate governance arrangements that have been put in place to ensure accountability, responsibility and authority for decision making on investment activities within the context of the local authority’s corporate values.

178 ANNEX B COMMERCIAL INVESTMENT CRITERIA SCORING MATRIX a) Pass / Fail Assessments:

Requirement Pass / Fail Comment Does the Council have the necessary If fail, consider setting up legal powers to support the project? an alternative delivery model?

Does the Council have the necessary Note that PWLB borrowing sources of funding for the investment? cannot be used for commercial investments and that if a local authority intends to buy commercial assets primarily for yield (even using reserves) then they will be prevented from taking any PWLB borrowing in that financial year.

Is the project linked with any of the following?  Alcohol products where over 25% of those attending or using the services are under 18  Tobacco products  Unhealthy food or unhealthy lifestyles  Weaponry or Arms Trading  Gambling  Racism  Sex Establishments  Political parties  Any other relationship that would have a negative impact on the Council Have state aid issues been fully assessed?

A project must pass all the tests set out above. b) Risk Assessment

Individual commercial investment proposals must be supported by detailed business cases and business plans. As well as considering the Net Present Value, Internal Rate of Return and impact on the General Fund of any commercial investment proposals, the decision to invest also takes into account the following assessment matrix:

179 ASSESSMENT CRITERIA Excellent / Good Satisfactory Marginal Uncertain N very good / A Meeting the Council’s Fully Mostly Adequately Partially No direct link Priorities supports one to corporate or more of priorities the Council’s corporate priorities Providing community Fully Mostly Adequately Partially Limited benefit Rate of Return* - % rent >8% 7%-8% 5%-7% 3%-5% <3% against capital or interest repayments Proximity to Derbyshire within District within England National Outside UK Dales** Derbyshire Location Prime Not prime Secondary Remote from Isolated, but in other undeveloped established developments area, limited location infrastructure links Reduction in costs of Savings > Savings Savings £3k Savings up to No savings service delivery for the £20k p.a. £10k to £20k to £10k p.a. £3k p.a. Council, e.g. Investment in p.a. new technologies Jobs created / safeguarded >50 26 - 50 6 - 25 1 - 5 None Increase in business rate or Extra £20k Extra £10k Extra £3k to Extra £3k p.a. No business council tax income for p.a. to £20k p.a. £10k p.a. rate income DDDC Tenancy strength Multiple Single Single or Tenants with Tenants with tenants with tenant with multiple average poor financial strong strong tenants with financial covenant financial financial good covenant strength covenant covenant financial covenant Lease length and break (for >15 years 11 - 15 years 10 - 8 years 7 - 5 years <5 years or main tenants/income) (10 year (5 year break) vacant lease) Portfolio mix (asset type is <50% 50%-60% 60%-70% 70%-80% >80% of balanced in portfolio - no portfolio more than x% of portfolio Voids (after Lease end 0-9 months 9-12 months 12-18 18-24 months >24 months including marketing, fit out months and rent free) Tenure Freehold Lease >99 Lease 25 - Lease 5 - 25 Lease <5 years 99 years years years Tenant Repair Obligations Full repairing Internal Internal Internal Landlord & insuring repairing repairing repairing non 100% partially recoverable recoverable recoverable Building Quality/Age <10 years 10-20 years < 21-30 31-35 years >35 years years Rental Growth Prospects within 1 year within 2-5 within 5-7 within 7-10 >10 years years years years

180 Level of investment <£0.5m Between Between Between £2m >£3m £0.5m and £1m and and £3m £1m £2m Energy Rating (2018 A/B C D E F/G legislation can't let with F/G assessment)

* Rates of return must be better than investing through Treasury Management processes.

** Projects / opportunities arising outside Authority boundaries will be considered where rates of return justify the investment.

To be considered for investment 50% of the applicable criteria above must be excellent, good or satisfactory.

The matrix above is supplemented by:

c) additional contextual information

d) due diligence checks and financial checks, including building surveys, legal title checks, credit references etc. where relevant.

e) a SWOT Analysis

Project Name Strengths

Weaknesses

Opportunities

Threats

BACK TO AGENDA

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