Meeting of the Burnley Borough Council to Be Held at 6.30Pm on Wednesday 15Th July 2015

Meeting of the Burnley Borough Council To be held at 6.30pm on Wednesday 15th July 2015

Town Hall Burnley

7th July 2015

Sir or Madam,

Notice is given of a MEETING of the COUNCIL of the BOROUGH OF BURNLEY to be held at the TOWN HALL, BURNLEY, on

Wednesday 15th July 2015

starting at 6.30 p.m.

To transact the business specified below.

Tom Forshaw Head of Chief Executive’s Office

Members of the public may ask a question, make a statement, or present a petition relating to any matter for which the Council has a responsibility or which affects the Borough.

Notice in writing of the subject matter must be given to the Head of Chief Executive’s Office by 5.00 pm on the day before the meeting. Forms can be obtained for this purpose from the reception desk at Burnley Town Hall, Manchester Road or at the Contact Centre, Parker Lane, Burnley or from the web at: www.burnley.gov.uk/meetings. Requests will be dealt with in the order in which they are received.

A G E N D A

1. Minutes of the last meeting

To receive, as read, the Minutes of the proceedings of the Full Council meeting held on the 20th May 2015 and to confirm them or otherwise (enclosed)

2. Declarations of Interest

In accordance with the Regulations, Members are required to declare any personal or personal and prejudicial interests they may have and the nature of those interests in respect of items on this agenda and/or indicate if S106 of the Local Government Finance Act 1992 applies to them.

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

3. Mayors’ Communications

To receive communications (if any) from His Worship the Mayor

4 Public Question Time

To receive questions, statements or petitions (if any) from members of the public.

5. Items for Decision by the Council Agenda Page No.

(a) 2014/15 Final Outturn Position 13

To consider the 2014/15 Outturn (report and relevant Minute enclosed)

(b) 2014/15 Treasury Management Annual Review 33

To consider the 2014/15 Treasury Management Annual Review (report enclosed, and relevant Minute to follow)

To consider proposed changes to the Minimum Revenue Provision Policy Statement (report enclosed, and relevant Minute to follow)

(d) Appointment of Monitoring Officer 57

To consider the appointment of the Monitoring Officer (report enclosed)

(e) Appointment of Independent Persons and Constitutional 65 Amendments 2015/16

To consider the appointment of Independent Persons and constitutional Amendments for 2015/16 (report enclosed)

(f) Leader’s Changes to Part 3 (Executive) Delegations 69

To note the Leader’s changes to Part 3 (Executive) Delegations (report enclosed)

6. Scrutiny Committee Chair’s Cycle 1 report 73

To receive the report of the Scrutiny Committee Chair on the first cycle of Scrutiny Committee meetings (report enclosed)

7. Strategic Plan Progress Reports

Mark Townsend Leader 79 John Harbour Deputy Leader/Housing and Environment 83 Howard Baker Resources and Performance Management 89 Bea Foster Leisure and Culture 93 Tony Harrison Community Services 97 Sue Graham Regeneration and Economic Development 101 (reports enclosed)

8. Questions

To deal with questions (if any) relating to matters not contained in the Minutes before the Council and of which notice in writing has been received in accordance with Standing Order No 10 (2)

9. Exclusion of the Public

To consider the exclusion of the public from the meeting before discussion takes place on the following item of business on the grounds that in view of the nature of the business to be transacted, if the public were present there would be a disclosure to them of exempt information within the meaning of Part VA of the Local Government Act 1972.

10. Financial Systems Transformation 105

To consider a report on Financial Systems Transformation (report enclosed, and relevant Minute to follow)

Item1

Minutes of the Last Meeting

BURNLEY BOROUGH COUNCIL

BURNLEY TOWN HALL

Wednesday 20th May 2015

PRESENT

MEMBERS His Worshipful The Mayor (Councillor Andy Tatchell) in the Chair;

Councillors Baker, Birtwistle, Briggs, Brindle, Bullas, Campbell, Cant, Carmichael, Chaudhary, Cunningham, Ellis, Fleming, Foster, Frost, Graham, Greenwood, Harbour, Harrison, Heginbotham, Hosker, Hussain, Isherwood, Ishtiaq, Johnstone, Kelly, Arif Khan, Wajid Khan, Large, Lishman, Malik, Martin, Monk, Mottershead, Newhouse, Pate, Porter, Reynolds, Royle, Stringer, Sumner, Towneley and Townsend OFFICERS Pam Smith - Chief Executive Tom Forshaw - Head of Chief Executive‟s Office David Talbot - Monitoring Officer and Senior Solicitor Jeremy Richards - Communications Officer Imelda Grady - Democracy Officer Eric Dickinson - Democracy Officer Maureen Neave - Assistant Democracy Officer David Farrar - Mayor‟s Officer David Bristow - Deputy Mayor‟s Officer

1. Election of Mayor

It was moved by Councillor Tony Martin and seconded by Councillor Ida Carmichael and

RESOLVED UNANIMOUSLY

That Councillor Elizabeth Monk be elected Mayor of the Borough for the Municipal Year 2015/16.

(Councillor Andy Tatchell then vacated the Chair in favour of the Mayor).

Her worship the Mayor, Councillor Elizabeth Monk, then made and subscribed the Declaration of Acceptance of Office as required by Law.

Full Council 15/07/2015 Page 1 of 10

2. Thanks to the retiring Mayor

It was moved by Councillor Marcus Johnstone and seconded by Councillor John Harbour that the grateful thanks of this Council be extended to the retiring Mayor for the services rendered by him during the past Municipal Year.

On being put to the vote the motion was declared to be carried and it was

RESOLVED UNANIMOUSLY accordingly

It was FURTHER RESOLVED –

That medallions be presented to Councillor Andy Tatchell and Mrs Lorna Tatchell as a token of the Council‟s appreciation of their services to the Borough during the Municipal Year now ending.

Councillor Andy Tatchell responded by reviewing the highlights of his period of office, thanking those who had helped him and announcing the results of the Mayor‟s Charity Fund Appeal.

3. Minutes

The Minutes of the last meeting of the Council held on the 8th April 2015 were confirmed and signed by the Chair.

4. Appointment of Deputy Mayor

It was moved by Councillor Anne Kelly and seconded by Councillor Charlie Briggs and

RESOLVED UNANIMOUSLY –

That Councillor Jeff Sumner be elected Deputy Mayor/Mayor elect of the Borough for the Municipal Year 2015/16.

The Deputy Mayor, Councillor Jeff Sumner then made and subscribed the Declaration of Acceptance of Office as required by Law.

5. Mayor’s Communications

The Chief Executive, Pam Smith, reported that Her Worship the Mayor would be „At Home‟ at the Town Hall, Burnley at 2.00 p.m. on Tuesday 26th May 2015.

She further reported that the Mayor‟s Charity Ball would be held on Saturday 2nd April 2016 at the James Hargreaves Suite, Burnley Football.

Full Council 15/07/2015 Page 2 of 10

6. Adjournment of Meeting

The Mayor adjourned the meeting at 4.40 p.m.

The meeting reconvened at 6.30 pm

7. Public Question Time

Mr J Rowe addressed the Council under the Request to Speak Policy on Woodtop School.

8. Election of the Leader of the Council and appointment by the Leader of the Deputy Leader and the Executive 2015/16

Consideration was given to the requirements of the Local Government Act 2000 as amended by the Localism Act 2011 relating to the arrangements for Leader of the Council and the subsequent amendment to the Council‟s constitution.

It was moved by Councillor John Harbour and seconded by Councillor Joanne Greenwood:-

“That Councillor Mark Townsend be elected as the Leader of the Council”

Councillor Mark Townsend informed Members of his appointment of the Deputy Leader and Executive Members

RESOLVED (1) That the requirements of the Local Government Act 2000 as amended by the Localism Act 2011 relating to the arrangements for Leader of the Council be applied;

(2) That the Council‟s constitution, including Article 7, be amended to reflect the requirements of the Local Government Act 2000 as amended by the Localism Act 2011;

(3) That Councillor Mark Townsend be elected as Leader of the Council for 4 years up to the date of the next Appointments Council at the end of the 4 year term; and

(4) That the Leader‟s appointment of the Deputy Leader and the Executive be noted, as follows; -  Councillor John Harbour - Deputy Leader and Executive Member for Housing and Environment  Councillor Howard Baker - Executive Member for Resources and Performance Management  Councillor Sue Graham- Executive Member for Regeneration and Economic Development  Councillor Bea Foster- Executive Member for Leisure and Culture  Councillor Tony Harrison – Executive Member for Community

Full Council 15/07/2015 Page 3 of 10

Services

10. Appointments to Committees, Sub Committees, Working Groups, Panels and Boards 2015/16

Consideration was given to a report on Membership of the Council‟s Committees, Working Groups and Panels for the 2015/16 Municipal Year.

RESOLVED (1) That the list of Committees, Working Groups and Panels as set out in Appendix 1 to the report as submitted be approved; and

(2) That the Membership of the Council‟s Committees, Working Groups and Panels for the 2015/16 Municipal Year be approved as set out in Appendix A to these minutes.

11. Appointment of Chairs and Vice-Chairs of Committees

With reference to Minute No. 10, the Council gave consideration to the appointment of Chairs and Vice-Chairs of the Scrutiny, Regulatory and Other Committees for the Municipal Year 2015/16.

RESOLVED That the following appointments of Chairs and Vice-Chairs be made for the 2015/16 Municipal Year for Scrutiny, Regulatory and Other Committees:-

Scrutiny Committee Chair: Andy Tatchell Vice Chair: Anne Kelly

Audit and Standards Chair: Jean Cunningham Committee Vice Chair: Tony Harrison

Development Control Chair: Frank Cant Committee Vice Chair: Arif Khan

Licensing Committee Chair: Saeed Chaudhary Vice Chair: Lian Pate

12. Appointment to Outside Bodies

Consideration was given to the Council‟s appointments to Outside Bodies for 2015/16.

RESOLVED That the Outside Bodies list for 2015/16 be approved as set out in Appendix B to these minutes.

Full Council 15/07/2015 Page 4 of 10

APPENDIX A

MEMBERSHIP OF COMMITTEES/WORKING GROUPS FOR 2015-16

SCRUTINY COMMITTEE-17-(11-4-2)

Councillors Councillors Gordon Birtwistle Anne Kelly Margaret Brindle Stephen Large Jean Cunningham Margaret Lishman Trish Ellis Sobia Malik Danny Fleming Paul Reynolds Joanne Greenwood Ann Royle David Heginbotham Betsy Stringer Mathew Isherwood Andy Tatchell Wajid Khan

AUDIT and STANDARDS COMMITTEE-9-(6-2-1) -to include 1 Exec+ Chair of Scrutiny Committee

Councillors Councillors Gordon Birtwistle Mathew Isherwood Paul Campbell Margaret Lishman Jean Cunningham Ann Royle Joanne Greenwood Andy Tatchell Tony Harrison Including Co-optees Gill Smith and Alan Ravenscroft (Parish Council) and Colin Crowther and Louise Gaskell ( Independent) until 30th June 2018

DEVELOPMENT CONTROL COMMITTEE-16-(10-4-2) -to include relevant executive member

Councillors Councillors Charlie Briggs Arif Khan Frank Cant Neil Mottershead Saeed Chaudhary Sobia Malik Trish Ellis Tom Porter Roger Frost Paul Reynolds Sue Graham Betsy Stringer John Harbour Cosima Towneley David Heginbotham Marcus Johnstone

Full Council 15/07/2015 Page 5 of 10

LICENSING COMMITTEE-15-(10-3-2)

Councillors Councillors Howard Baker Stephen Large Frank Cant Neil Mottershead Ida Carmichael Andrew Newhouse Saeed Chaudhary Lian Pate Danny Fleming Tom Porter Gary Frayling Ann Royle Shah Hussain Jeff Sumner Mohammed Ishtiaq

MEMBER STRUCTURES AND SUPPORT WORKING GROUP-12-(8-3-1)

Councillors Councillors Howard Baker John Harbour Gordon Birtwistle Anne Kelly Frank Cant Arif Khan Ida Carmichael Andy Tatchell Bea Foster Mark Townsend Roger Frost Sue Graham

LANCASHIRE POLICE AND CRIME PANEL (1 Labour member and substitute; 1 Liberal Democrat and substitute)

Councillors Councillors Tony Harrison Margaret Brindle Sue Graham (sub) Anne Kelly (sub)

3 TIER FORUM -6-(4-1-1)

Councillors Councillors Jean Cunningham Tom Porter Trish Ellis Cosima Towneley Gary Frayling Lian Pate PARKING AND TRAFFIC REGULATIONS OUTSIDE LONDON (PATROL) ADJUDICATION JOINT COMMITTEE - 2

Include relevant Executive Member and 1 substitute from largest opposition group

Councillors Councillors Tony Harrison Roger Frost (sub)

Full Council 15/07/2015 Page 6 of 10

APPENDIX B

REPRESENTATION ON OUTSIDE BODIES FOR THE MUNICIPAL YEAR 2015/16

Outside Body Qualification 2015/16 Appointed 2015/16

1. Barnfield and Burnley Leader Cllr Mark Townsend Developments Limited Chief Executive Pam Smith -Directors Appointed by the Executive

2. Burnley & Pendle Executive Member for Cllr Bea Foster Children‟s Partnership Leisure & Culture

3. Burnley Education Trust Chief Executive Pam Smith

4. Burnley Leisure – Any 2 Members Cllr Andy Tatchell Directors Cllr Jean Cunningham (E )

5. Burnley Pendle and 1 Member Cllr Lian Pate Rossendale Council for Voluntary Service – Executive Committee Executive Member for Cllr Tony Harrison Community Services

6. Burnley and Pendle Executive Member for Cllr Tony Harrison Citizens Advice Bureau Community Services (E)

1 Senior Opposition Cllr Charlie Briggs Member

7. Burnley Private Rented Executive Member for Cllr John Harbour Sector Forum Housing and Environment (D/E)

Cllr Andy Tatchell Chair of Scrutiny Committee

Full Council 15/07/2015 Page 7 of 10

Outside Body Qualification 2015/16 Appointed 2015/16

8. Burnley Town Centre Executive Member for Cllr Sue Graham Partnership Regeneration and Economic Development

Vice Chair of Scrutiny Cllr Anne Kelly Committee

9. Calico Board of Director of Community Mick Cartledge Management – Annual Services General meeting Voting Rights (E)

10. East Lancashire Health Any Executive Member Cllr Tony Harrison and Well Being Partnership

11. East Lancashire Into Executive Member for Cllr Sue Graham Employment Co. Ltd – Regeneration and Directors Economic Development

Any Executive Member Cllr Bea Foster

12. LCC Health Scrutiny Any Member of Cllr Trish Ellis Committee Scrutiny Committee (same Membership for Sub: Any Member of Sub: Cllr Betsy Stringer Joint Lancashire Health Scrutiny Committee Scrutiny Committee)

13. Lancashire Waste Executive Member for Cllr Tony Harrison Partnership Community Services

14. Local Government Leader Cllr Mark Townsend Association

15. Marketing Lancashire Executive Member for Cllr Sue Graham (previously called Regeneration and Economic Lancashire Tourism Forum) Development

Full Council 15/07/2015 Page 8 of 10

Outside Body Qualification 2015/16 Appointed 2015/16

16. North Western Local Executive Member for Cllr Howard Baker Authorities Employers' Resources and Organisation Performance Management

Sub: Any Executive Sub: Cllr Mark Townsend Member

17. Over Fifties Forum Any Member Cllr Betsy Stringer

18. Police and Crime Executive Member for Cllr Tony Harrison Commissioner Quarterly Community Services Community Safety Portfolio Holders

19. Regenerate Pennine Executive Member for Cllr Sue Graham , Lancashire Combined Regeneration and Body Economic

(From 101214) Development

Chief Executive Pam Smith

SECTION 2 - PERIOD APPOINTMENTS

Outside Body Qualifications Nominated 2015/16 2014/15

20. Burnley Acorn Fund- 3 Members Cllr Jean Cunningham (periods of four years) (from Oct 2012 to (term expires Oct 2016) Oct 2016) Cllr Roger Frost (term expires Oct 2016) Cllr Ann Royle ((term expires Oct 2016)

Director of Helen Seechurn Resources is Ex Officio Ex Officio 21. Burnley College 1 Member Nick Aves Governing Board (periods of four years) (term expires 2016) (E)

Full Council 15/07/2015 Page 9 of 10

Outside Body Qualifications Nominated 2015/16 2014/15

22. Stocks Massey Bequest- Relevant Executive Cllr Bea Foster (term Representative Trustees Member-Leisure expires May 2016) (periods of four years) and Culture

(term expires May 2016)

Cllr Andy Tatchell (term Chair of Scrutiny expires May 2018) Committee (term expires May 2018) Meetings held in Daytime, unless as stated below; E - Evening D/E - Daytime/Evening

Full Council 15/07/2015 Page 10 of 10

a 5

ITEM

2014/15 Final Outturn Position

EXECUTIVE

BURNLEY TOWN HALL

Tuesday, 9th June 2015 at 6.30 pm

5. 2014/2015 Final Outturn

Purpose To report the final position on the Council’s revenue and capital accounts for 2014/15.

To report to Members on the performance of the 2014/15 capital investment programme and present the financing of capital expenditure incurred during 2014/15.

To seek approval of a revised 2015/16 capital budget after incorporating net carry forward commitments from 2014/15.

Reason To conclude the revenue and capital budget monitoring process for for 2014/15 and report the final outturn position as outlined in the Council’s Decision Statement of Accounts for 2014/15.

To increase the 2015/16 Council capital programme for amounts carried forward from 2014/15 and other budget adjustments as shown in Appendix 5.

Decision That it be recommended to Full Council;:

a) That the final position on the Council’s revenue account for 2014/15 and the net overall surplus, compared with the revised budget, of £10k as shown in the table in paragragh 8, be approved;

b) That the variances to the outturn since the estimated £55k underspend reported to Members in cycle 3 budget monitoring as detailed in Appendix 1 be approved;

c) That the transfers to/from Earmarked Reserves totalling a net £1.055m increase in reserves (see Appendix 2) be approved;

d) That the final position on capital spending and financing of £9,214,988 for 2014/15 as shown in Appendices 3 & 4, which equates to 83% of the final budget be approved; and

e) That the revised capital budget for 2015/16 totalling £10,260,983 as outlined in Appendix 5, (including net carry forward of £1,831,858) be approved.

Executive - Tuesday, 9th June 2015 Page 1 of 1

ITEM NO

REPORT TO EXECUTIVE

DATE 9th June 2015 PORTFOLIO Resources & Performance Management REPORT AUTHOR David Donlan TEL NO (01282) 477172 or 01282 425011 x7172 EMAIL [email protected]

2014/15 Final Outturn Position

PURPOSE

1. To report the final position on the Council’s revenue and capital accounts for 2014/15

2. To report to Members on the performance of the 2014/15 capital investment programme and present the financing of capital expenditure incurred during 2014/15

3. To seek approval of a revised 2015/16 capital budget after incorporating net carry forward commitments from 2014/15.

RECOMMENDATION

4. That the Executive Members are requested to recommend that Full Council approve:

a) The final position on the Council’s revenue account for 2014/15 and the net overall surplus, compared with the revised budget, of £10k as shown in the table in paragragh 8.

b) The variances to the outturn since the estimated £55k underspend reported to Members in cycle 3 budget monitoring as detailed in Appendix 1.

c) The transfers to/from Earmarked Reserves totalling a net £1.055m increase in reserves (see Appendix 2).

d) The final position on capital spending and financing of £9,214,988 for 2014/15 as shown in Appendices 3 & 4, which equates to 83% of the final budget.

e) The revised capital budget for 2015/16 totalling £10,260,983 as outlined in Appendix 5, (including net carry forward of £1,831,858).

REASONS FOR RECOMMENDATION

5. To conclude the revenue and capital budget monitoring process for 2014/15 and report the final outturn position as outlined in the Council’s Statement of Accounts for 2014/15.

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6. To increase the 2015/16 Council capital programme for amounts carried forward from 2014/15 and other budget adjustments as shown in Appendix 5.

SUMMARY OF KEY POINTS

Revenue Outturn position

Revenue Surplus 7. Members will recall that there were three quarterly budget monitoring reports to the Executive during 2014/15. These reports disclosed that there were anticipated variations in spending and income compared with the revised budget. The third and most recent in-year monitoring report to Full Council in February 2015, estimated a surplus of £55k for the year on the revenue account.

8. The final position on the Council’s revenue account for 2014/15 was a net overall surplus, compared with the revised budget, of £10k (see Appendix 1). A summary of the major variances is shown in the table below:

Summary of 2014/15 Major Variances £'000

Underspends / Increased Income Planning fee income (106) Treasury Management expenses and income (138) Bad Debt Provision for general debtors (62) Employee cost savings (300) Energy cost savings (74) Water cost savings (140) Provisions no longer required (178) Cemeteries & Crematorium income (75)

Other net underspending in services (24)

Increased Expenditure / Reduced Income Increased Provision for Housing Developments 424 Bad Debt Provision for Housing benefits 143 Waste Cleaning contract costs 71 Car Parking income 75 Non Domestic Rates Pool income 57 One-off Support for Burnley Leisure 218 Charter Walk income 99 Total Underspend (10)

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9. Reserves Transfers The Executive is asked to recommend to Full Council approval of the movements in earmarked reserves being a net overall increase in the year of £1.055m – see Appendix 2 – from £6.373m at the start of the year to an end position of £7.428m. The final reserves position includes the surplus on the revenue account of £10k.

The balance of General Reserves has remained at £1.379m.

Capital Outturn position

10. Budget Changes and Expenditure Outturn Position: After incorporating all the recommendations approved throughout the financial year, the th original capital budget of £15,435,385 [approved at Full Council on 26 February 2014] was revised down to a final position of £11,171,315 per the cycle 3 capital monitoring report presented to the Executive on the 16th February 2015. Appendix 3 shows the final position.

11. Additional resources have been utilised in financing the outturn expenditure position totalling £82,572 split between;

• £65,000 of additional resources identified

• £17,572 of “reverse slippage” utilising in advance resources originally approved th within the 2015/16 capital programme at Full Council on 25 February 2015.

12. Resources approved within the capital budget totalling £189,469 were no longer required as a result of some schemes having been delivered by the end of the year and within

budget. After taking into account the additional resources and resources no longer required the final budget position available to finance capital expenditure totalled

£11,064,418. The final outturn level of expenditure incurred for 2014/15 totalled £9,214,988 which gives a net underspend of £1,849,430 (83% spend against the final resources

position).

13. Appendix 4 lists the financing elements of each scheme within the 2014/15 capital programme, totalling £9,214,988.

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14. Carry Forward Requests (slippage)

Members are asked to note that a net £1,831,858 (£1,849,430 slippage less £17,572 reverse slippage) is the total that has been recommended to be carried forward into

2015/16 – see Appendix 5. The following table shows the proposed financing of this slippage from 2014/15 to 2015/16:

Summary of Financing Elements of Slippage into 2015/16 £ £

Prudential Borrowing 272,863 Capital Receipts 419,551

Revenue Contributions to Capital Outlay 33,429

Grant Funding & Contributions

Residual HMR Grant 271,375 Homes & Communities Agency Grant (4,605)

DCLG - Clusters Programme 321,819 Heritage Lottery Fund 102,021 Disabled Facilities Grant (12,072)

Football Foundation Grant 266,718 3rd Party Contributions 160,759 Total External Grant Funding & Contributions 1,106,015

Total Slippage 1,831,858

15. Revised Capital Budget for 2015/16

Members are asked to approve a revised capital budget for 2015/16 after incorporating the

adjustments identified within this outturn report.

Appendix 5 details the 2015/16 capital programme financing elements along with

incorporating the year end resources adjustments and reverse slippage elements identified

within this outturn report, and incorporating the carry forward requests. This results in a

revised capital programme totalling £10,260,983.

FINANCIAL IMPLICATIONS AND BUDGET PROVISION

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

POLICY IMPLICATIONS

17. The final outturn position is reflected in the Statement of Accounts which shows the spending by the Council in pursuit of declared objectives in that financial year and the reserves and balances available for future spending and is to be signed of by the Director of Resources by the 30th June 2015 and is to be reported to the Audit Committee on the 23rd September 2015.

DETAILS OF CONSULTATION

18. Management Team

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BACKGROUND PAPERS

19. None

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

C:\Users\spfarm\AppData\Local\Temp\892f64b227cf4d08ae6af9f95587f34a.docx Forecast Underspending as at 13th May 2015 Appendix 1 In Period Jan to March Cumulative Forecast underspend at 31/12/14 - Cycle 3 (55)

Closure Variances

Expenditure Savings Town Centre Development costs (25) Further Salary savings (61) Premises Repairs (32) Additional Water savings (18) Additional Energy savings (18) Additional NDR savings at St Peters and Burnley Market (28) Sundry Debtors -Provision for Bad Debts (63) (245)

Increased Income Markets income (61) Crematorium income (28) Planning fee income (24) Council Tax/Business Rates credit accounts written back to revenue (45) Recovery of Benefits Overpayments income (57) (215) (460)

Increased Expenditure ODA Provision 224 Benefits -Provision for Bad Debts 143 367

Reduced Income

Charter Walk income reclaimed 71 Business Rates income 57 128 495

Other Minor net overspends/(underspends) 10

Forecast underspend for year (10) Note 8 - Transfers to/from Earmarked Reserves APPENDIX 2 Balance at Transfers Movements Balance at Transfers Movements Balance at Transfers Transfers 31 March Out between 31 March Out between 31 March In 2013/14 In 2014/15 Earmarked Reserves 2013 2013/14 Reserves 2014 2014/15 Reserves 2015 £000s £000s £000s £000s £000s £000s £000s £000s £000s

Modernisation Reserve 2,554 904 601 - 2,251 - - - - - Taxi Licensing Reserve 45 33 16 - 28 22 19 - 25 Selective Licensing 98 92 38 - 44 3 336 - 377 Financial Instruments Shortfall Reserve 421 - - - 421 - - - - - Grant Equalisation Reserve 1,444 - 93 - 1,537 - - - - - Local Development Framework Reserve 132 71 10 - 71 22 22 - 71 Community Regeneration Reserve 1,082 544 314 - 852 - - - - - Housing Benefit Admin Subsidy Reserve 97 75 138 - 160 130 146 - 176 Transport & Plant Replacement Reserve 59 73 121 - 107 165 109 - 51 Utilities Equalisation Reserve 100 - - - 100 - - - 100 - Transformation Reserve - - 192 3,023 3,215 782 364 100 2,897 Growth Reserve - - - 2,038 2,038 544 921 - 2,415 Rail Services Reserve - - 90 90 - - - 90 Revenue Grants Unapplied Reserve - - 520 520 106 109 - 409 114 Business Rates Volatility Reserve * - - - - - 768 1,571 409 1,212

Total 6,032 1,792 2,133 - 6,373 2,542 3,597 - 7,428

* The business rates volatility reserve includes monies from the Government to compensate the local authority for loss of income arising in the collection fund due to backdated business rate appeals and rate relief offered to businesses. This reserve will be utilised to meet the deficit on the collection fund which will impact on the Councils accounts in 2016/17. Final Capital Outturn Position for 2014/15 Appendix 3

Additional Resources Utilised at Year End Resources no Additional "Reverse longer Schemes Budget Revised Financing Slippage" required as Final Spend As A Remaining % of Budget Budget as at made Budgets Schemes Resources Expenditure Percentage to After Remaining 24/03/15 available at utilised from completed Position At Outturn Final Financing After Financing Carry Forward Scheme Name Executive Year End 2014/15 within budget Year End Position Resources Expenditure Expenditure Requested £ £ £ £ £ £ % £ % £

CUSTOMER AND I.T SERVICES Server and Desktop Virtualisation 3,151 - - (98) 3,053 3,053 100% - 0% - 3,151 - - (98) 3,053 3,053 100% - 0% -

GREEN SPACES AND AMENITIES Prairie Sports Complex 2,000,000 - - - 2,000,000 1,269,958 63% 730,042 37% 730,042 Towneley Hall Works 4,934 - - - 4,934 580 12% 4,354 88% 4,354 Brun Valley Forest Park 65,000 - - (92) 64,908 64,908 100% - 0% - Play Area Improvement Programme 112,000 - - - 112,000 94,263 84% 17,737 16% 17,737 Unauthorised Traveller Encampments 9,140 - - - 9,140 9,140 100% - 0% - Vehicle and Machinery Replacement 176,256 - - - 176,256 164,416 93% 11,840 7% 11,840 2,367,330 - - (92) 2,367,238 1,603,265 68% 763,973 32% 763,973

STREETSCENE Netherwood Road - Brun Valley 60,622 27 - - 60,649 60,649 100% - 0% - Towneley River Training Walls 110,303 - - - 110,303 25,515 23% 84,788 77% 84,788 Car Park Improvements 10,000 - - - 10,000 10,000 100% - 0% - Burnley Town Centre Pedestrianisation Upgrade 24,573 - - - 24,573 14,222 58% 10,351 42% 10,351 Cycling & Access 42,012 26,594 - (20,000) 48,606 48,606 100% - 0% - Alleygate Programme 32,875 - - - 32,875 26,475 81% 6,400 19% 6,400 Bus Station - Taxi / Coach Berth Improvements 5,000 - - - 5,000 5,000 100% - 0% - Bus Shelter Replacement 8,000 - - - 8,000 8,000 100% - 0% - 293,385 26,621 - (20,000) 300,006 198,467 66% 101,539 34% 101,539

REGENERATION AND PLANNING POLICY Weavers Triangle Programme 950,300 - - - 950,300 738,663 78% 211,637 22% 211,637 University Technical College 295,226 - - - 295,226 294,266 100% 960 0% 960 Infrastructure & Highways Improvements 988,902 2,170 - - 991,072 848,478 86% 142,594 14% 142,594 Public Realm 1,441,751 (2,170) - - 1,439,581 1,361,488 95% 78,093 5% 78,093 Knowledge Park 57,544 - 383 - 57,927 57,927 100% - 0% -

Burnley Railway Station Manchester Road 525,342 - - (165,756) 359,586 313,586 87% 46,000 13% 46,000 4,259,065 - 383 (165,756) 4,093,692 3,614,408 88% 479,284 12% 479,284

FACILITIES MANAGEMENT Leisure Centre Improvements 242,536 - - - 242,536 172,672 71% 69,864 29% 69,864 Energy Efficiency of Council Buildings 165,500 - - - 165,500 143,911 87% 21,589 13% 21,589 408,036 - - - 408,036 316,583 78% 91,453 22% 91,453

HOUSING AND DEVELOPMENT CONTROL Acquisitions & Clearance 800,000 - - - 800,000 713,507 89% 86,493 11% 86,493 Disabled Facilities Grant 681,302 - 12,072 - 693,374 693,374 100% - 0% - Energy Efficiency 134,390 - - (1,691) 132,699 132,699 100% - 0% - Emergency Work Grant 62,063 - - (1,832) 60,231 60,231 100% - 0% - Vacant Property Initiative 26,234 - - - 26,234 21,365 81% 4,869 19% 4,869 Empty Homes Programme 2,053,160 38,379 - - 2,091,539 1,769,720 85% 321,819 15% 321,819 Market Support 5,646 - 4,605 - 10,251 10,251 100% - 0% - 3,762,795 38,379 16,677 (3,523) 3,814,328 3,401,147 89% 413,181 11% 413,181

CHIEF EXECUTIVE Ward Opportunities Fund 77,553 - 512 - 78,065 78,065 100% - 0% - 77,553 - 512 - 78,065 78,065 100% - 0% -

Final Capital Outturn Position for 11,171,315 65,000 17,572 (189,469) 11,064,418 9,214,988 83% 1,849,430 17% 1,849,430 2014/15 FINANCING ANALYSIS OF THE FINAL CAPITAL EXPENDITURE OUTTURN POSITION - 2014/15 Appendix 4

FINANCING ELEMENTS Revenue HMR Disabled Education Regional Homes & Vacant S106 Payments / Expenditure Prudential Contributions / Residual HMR Transitional Housing Facilities Heritage Funding Growth Communities Football Capital Property 3rd Party Expenditure Outturn Position Borrowing Reserves DCLG Grant Grant Capital Grant Grant Lottery Fund Agency Funding ERDF Agency Sport England Foundation Receipts Receipts Contributions Outturn Position Scheme Name £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £

CUSTOMER AND I.T SERVICES Server and Desktop Virtualisation 3,053 3,053 ------3,053

GREEN SPACES AND AMENITIES Prairie Sports Complex 1,269,958 821,676 ------350,000 83,282 - - 15,000 1,269,958 Towneley Hall Works 580 ------580 - - 580 Brun Valley Forest Park 64,908 ------32,952 - 31,956 64,908 Play Area Improvement Programme 94,263 ------94,263 94,263 Unauthorised Traveller Encampments 9,140 ------9,140 - - 9,140 Vehicle and Machinery Replacement 164,416 - 164,416 ------164,416 1,603,265 821,676 164,416 ------350,000 83,282 42,672 - 141,219 1,603,265

STREETSCENE Netherwood Road - Brun Valley 60,649 ------20,622 - 40,027 60,649 Towneley River Training Walls 25,515 ------25,515 - - 25,515 Car Park Improvements 10,000 ------10,000 - - 10,000 Burnley Town Centre Pedestrianisation Upgrade 14,222 ------14,222 - - 14,222 Cycling & Access 48,606 ------20,000 - 28,606 48,606 Alleygate Programme 26,475 ------26,475 - - 26,475 Bus Station - Taxi / Coach Berth Improvements 5,000 ------5,000 - - 5,000 Bus Shelter Replacement 8,000 ------8,000 - - 8,000 198,467 ------129,834 - 68,633 198,467

REGENERATION AND PLANNING POLICY Weavers Triangle Programme 738,663 - - - 393,983 - - - 282,229 - - - 62,451 - - - - - 738,663 University Technical College 294,266 - - - 6,457 - - - - 272,686 ------15,123 294,266 Infrastructure & Highways Improvements 848,478 ------(101,731) 942,803 - - - - - 7,406 848,478 Public Realm 1,361,488 ------1,165,275 ------196,213 1,361,488 Knowledge Park 57,927 ------57,927 - - 57,927 Burnley Railway Station Manchester Road 313,586 ------442,779 - - - (193,229) - 64,036 313,586 3,614,408 - - - 400,440 - - - 282,229 272,686 1,063,544 1,385,582 62,451 - - (135,302) - 282,778 3,614,408

FACILITIES MANAGEMENT Leisure Centre Improvements 172,672 172,672 ------172,672 Energy Efficiency of Council Buildings 143,911 - 143,911 ------143,911 316,583 172,672 143,911 ------316,583

HOUSING AND DEVELOPMENT CONTROL Acquisitions & Clearance 713,507 - - - 692,305 21,202 ------713,507 Disabled Facilities Grant 693,374 ------693,374 ------693,374 Energy Efficiency 132,699 ------85,264 - 47,435 132,699 Emergency Work Grant 60,231 ------60,231 - - 60,231 Vacant Property Initiative 21,365 ------21,365 - 21,365 Empty Homes Programme 1,769,720 - 38,379 1,490,916 114,504 - 125,921 ------1,769,720 Market Support 10,251 - - - - - 10,251 ------10,251 3,401,147 - 38,379 1,490,916 806,809 21,202 136,172 693,374 ------145,495 21,365 47,435 3,401,147 CHIEF EXECUTIVE Ward Opportunities Fund 78,065 ------78,065 - - 78,065

Total 9,214,988 997,401 346,706 1,490,916 1,207,249 21,202 136,172 693,374 282,229 272,686 1,063,544 1,385,582 62,451 350,000 83,282 260,764 21,365 540,065 9,214,988 2015/16 CAPITAL BUDGET AND FINANCING ELEMENTS Appendix 5 FINANCING ELEMENTS Capital Grants - Secured Vacant Revenue Housing Disabled Heritage Property Total Revised Prudential Cont'n / Residual Capital Facilities Lottery Football Capital Initiative Section 106 3rd Party 3rd Party Revised Classification Budget Borrowing Reserves DCLG HMR Grant Grant Grant Fund Foundation Receipts Receipts Unsecured Secured Unsecured Budget Heading Service Unit Scheme Name £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ Regeneration & Planning Policy Weavers Triangle Programme 230,637 128,616 102,021 230,637 Regeneration & Planning Policy University Technical College 19,960 4,735 15,225 19,960 Regeneration & Planning Infrastructure & Highways Committed/To Be Policy Improvements 142,594 142,594 142,594 Committed By Regeneration & Planning Decision of the Council Policy Public Realm 78,093 74,306 3,787 78,093 Regeneration & Planning Burnley Railway Station Manchester Policy Road 46,000 46,000 46,000 Green Spaces & Amenities Prairie Sports Academy 1,491,854 964,811 266,718 260,325 1,491,854 Regeneration & Planning Policy Knowledge Park 36,453 36,453 36,453 Green Spaces & 2014/15 Schemes Amenities Towneley Hall Works 4,354 4,354 4,354 Resubmitted for Green Spaces & 2015/16 Amenities Brun Valley Forest Park 4,947 4,947 4,947 Green Spaces & Amenities Play Area Improvement Programme 41,457 27,079 14,378 41,457

Housing & Development Emergency Work Grant 60,000 60,000 60,000

Housing & Development Vacant Property Initiative 1,074,869 100,000 974,869 1,074,869

Housing & Development Disabled Facilities Grant 1,448,928 1,448,928 1,448,928 Housing Investment Programme Housing & Development Energy Efficiency 40,000 40,000 40,000

Housing & Development Empty Homes Programme 1,691,819 600,000 321,819 284,286 485,714 1,691,819

Housing & Development Acquisitions & Clearance 1,186,695 751,695 435,000 1,186,695

Housing & Development Housing Market Support 93,093 93,093 93,093 Green Spaces & Amenities Vehicle and Machinery Replacement 129,596 129,596 129,596 Green Spaces & Amenities Extension of Burnley Cemetery 125,000 125,000 125,000 Schemes Scoring "3" for Commitment Streetscene Towneley River Training Walls 144,788 144,788 144,788 & At Least 5 Overall

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

Facilities Management Leisure Centre Improvements 137,523 137,523 137,523 Schemes Scoring "3" Burnley Town Centre for Strategic Objectives & At Least 5 Overall Streetscene Pedestrianisation Upgrade 1,460,351 700,000 10,351 750,000 1,460,351

Streetscene Cycling & Access 150,000 10,000 140,000 150,000

Chief Executive Ward Opportunities Fund 201,488 201,488 201,488 Schemes Scoring 4 Overall Streetscene Alleygate Programme 106,395 106,395 106,395

Streetscene CCTV Infrastructure 46,000 46,000 46,000

Facilities Management Energy Efficiency of Council Buildings 50,089 50,089 50,089 Schemes Scoring Below 4 Streetscene Bus Shelter Replacement 8,000 8,000 8,000 TOTAL OF ALL SCHEMES 10,260,983 2,673,334 179,685 321,819 959,352 377,379 1,448,928 102,021 266,718 875,405 1,995,583 10,000 160,759 890,000 10,260,983

b 5

ITEM

2014/15 Treasury Management Annual Review

ITEM NO

REPORT TO EXECUTIVE

DATE 14th July 2015 PORTFOLIO Resources & Performance Management REPORT AUTHOR David Donlan TEL NO 01282 477172 EMAIL [email protected]

Annual Treasury Management Report Review of 2014/15 Activity

PURPOSE

1. To inform members of the Council’s treasury management activity during 2014/15.

RECOMMENDATION

2. That the Executive recommends to Full Council to note the annual treasury management activity for the year ended 31 March 2015.

REASONS FOR RECOMMENDATION

3. To comply with the regulations issued under the Local Government Act 2003 to produce an annual treasury report reviewing treasury management activities and the prudential and treasury indicators for 2014/15. This report meets the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).

For 2014/15 the minimum reporting requirements were that the full Council should receive the following reports: • an annual treasury strategy in advance of the year (Council 26/02/14) • a mid-year (minimum) treasury update report (Council 10/12/14) • an annual review following the end of the year describing the activity compared to the strategy (this report).

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

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SUMMARY OF KEY POINTS

4. Overall Treasury Position as at 31 March 2015

The Council’s debt and investment position is organised in order to ensure adequate liquidity for revenue and capital activities, security for investments and to manage risks within all treasury management activities. Procedures and controls to achieve these objectives are well established both through Member reporting detailed in the Treasury Policy Statement, and through officer activity detailed in the Council’s Treasury Management Practices.

5. Council‘s treasury position:

31 March 2014 31 March 2015 £m Actual Actual Total debt 18.9 19.8 Capital Financing Requirement 26.5 26.4 Over / (under) borrowing (7.6) (6.6) Total investments 9.8 11.6

Net debt 9.1 8.2

6. The maturity structure of the debt portfolio:

31 March 2014 31 March 2015 31 March 2015 £m Actual Estimated Actual Under 12 months 2.1 1.0 1.0 12 months and within 24 months 1.0 2.0 2.0 24 months and within 5 years 4.0 3.4 3.4 5 years and within 10 years 8.5 9.2 9.2 10 years and above 3.3 4.2 4.2 Totals 18.9 19.8 19.8

7. The Strategy for 2014/15

The expectation for interest rates within the strategy for 2014/15 anticipated low but rising Bank Rate (starting in quarter 1 of 2015), and gradual rises in medium and longer term fixed borrowing rates during 2014/15. Variable, or short-term rates, were expected to be the cheaper form of borrowing over the period. Continued uncertainty in the aftermath of the 2008 financial crisis promoted a cautious approach, whereby investments would continue to be dominated by low counterparty risk considerations, resulting in relatively low returns compared to borrowing rates.

In this scenario, the treasury strategy was to postpone borrowing to avoid the cost of holding higher levels of investments and to reduce counterparty risk.

8. Borrowing Limits 2014/15

The authorised limit - this is the Council’s statutory limit for debt as determined under section 3(1) of the Local Government Act 2003. These limits include provision for “unusual cash movements” as referred to in the Code.

The operational boundary – this is usually set lower than the authorised limit by the additional headroom provided for “unusual cash movements”. In 2014/15 it was decided to set the authorised limit at the operational boundary. It equates to the maximum level of external debt projected in estimates.

Financing costs as a proportion of net revenue stream - this indicator identifies the trend in the cost of capital (borrowing and other long term obligation costs net of investment income) against the net revenue stream.

2014/15 Authorised limit £30.8m Maximum gross borrowing position £20.9m Operational boundary £30.8m Average gross borrowing position £19.8m Actual Financing costs as a proportion of net revenue stream 12.6% Budgetted Financing costs as a proportion of net revenue stream 13.3%

9. Borrowing Rates in 2014/15

PWLB borrowing rates - the graph below shows how PWLB rates remained close to historically very low levels during the year.

Borrowing Outturn for 2014/15

10. Borrowing – the following loans were taken during the year:

Lender Principal Type Interest Rate Maturity PWLB £1m Maturity 3.87% 50 years PWLB £1m Maturity 3.87% 49 years PWLB £1m Maturity 3.49% 47.6 years

11. Repayments – The following loans were repaid during the year, as scheduled:

Balance at Lender Principal Type Interest Rate Duration Repayment (£)

PWLB £1m 718 Maturity 9.25% 25.5 years PWLB £1m 36,621 Maturity 9.0% 20 years PWLB £1m 36,621 Maturity 8.38% 19 years PWLB £1m 1m Maturity 5.13% 15.5 years

PWLB £1m 1m Maturity 4.7% 9.5 years

12. Investment Rates in 2014/15

Bank Rate remained at its historic low of 0.5% throughout the year; it has now remained unchanged for six years. Market expectations as to the timing of the start of monetary tightening started the year at quarter 1 2015 but then moved back to around quarter 3 2016 by the end of the year. Deposit rates remained depressed during the whole of the year, primarily due to the effects of the Funding for Lending Scheme.

13. Investment Outturn for 2014/15

Investment Policy – the Council’s investment policy is governed by Government guidance, which has been implemented in the annual investment strategy approved by the Council on 26th February 2014. This policy sets out the approach for choosing investment counterparties, and is based on credit ratings provided by the three main credit rating agencies supplemented by additional market data.

Investments held by the Council - the Council maintained an average balance of £12.7m of internally managed funds. The internally managed funds earned an average rate of return of 0.53% which exceeded the target of base rate (0.5%).

There was a total of 4 market investments made during the financial year, totalling £6m, as well as an average daily total of £8.62m being invested within the HSBC’s “sweep” deposit account. This account earned an average 0.39% in 2014/15 which is 0.11% below the current base rate.

Appendix 1 shows the maximum amount invested with any of the counterparties at any one time during the period April 2014 to the end of March 2015. The maximum limit per counterparty is shown in brackets and it is confirmed that these were not exceeded.

14. Interest payable on External Borrowing / Interest Receivable on Investments

Provision is made in the revenue budget to meet the net interest payable on external borrowing. The figure in the original budget for 2014/15 was set at £975,080.

The outturn position was £846,158, due to lower PWLB interest payable and higher than estimated interest receivable on external deposits.

The total interest receivable on temporary investments in 2014/15 amounted to £67,074 compared with a budget for the year of £40,000.

15. Future Loans & Deposits

As an alternative vehicle to the Public Work Loans Board, council officers have previously been in discussions with the Municipal Bonds Agency. This organisation has been created with the aim of obtaining competitive financing of loans to Councils as well as offering better rates of interest for deposits. It has the backing of the Local Government Association. Officers continue to keep a watching brief on the Agency at this stage.

FINANCIAL IMPLICATIONS AND BUDGET PROVISION

16. None arising as a direct result of this report.

POLICY IMPLICATIONS

17. All transactions are in accordance with the Council’s approved Treasury Policy Statement

DETAILS OF CONSULTATION

18. None

BACKGROUND PAPERS

19. None.

FURTHER INFORMATION David Donlan PLEASE CONTACT: Accountancy Division Manager

c 5

ITEM

Minimum Revenue Provision-Revised Policy

ITEM NO

REPORT TO EXECUTIVE

DATE 14th July 2015 Resources and Performance PORTFOLIO Management REPORT AUTHOR David Donlan TEL NO (01282) 477172 EMAIL [email protected]

Minimum Revenue Provision – Recommended Revised Policy

PURPOSE

1. To set out proposed changes to the Council‟s Minimum Revenue Provision Policy Statement.

RECOMMENDATION

2. That the Executive recommend to Full Council approval for the revised Minimum Revenue Provision policy as shown in Appendix 1.

REASONS FOR RECOMMENDATION

3. a) To achieve significant annual savings in the Council‟s Revenue Budget. b) To allow certainty in the amount of debt repayment provision for budgeting purposes relating to the pre-2008 debt of over £20m. c) To confirm that the pre-2008 debt will be repaid over a 50 year period.

SUMMARY OF KEY POINTS

4. Background Regulations 27 and 28 of the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (SI 3146, as amended) require local authorities to make a prudent amount of minimum revenue provision (MRP) for the repayment of debt. The Secretary of State has issued statutory guidance on determining the „prudent‟ level of MRP, to which local authorities are required to have regard.

In 2008, these Regulations were amended so that Local Authorities are required to prepare an annual statement of their policy on making their MRP which must be approved by Full Council. If it is proposed to vary the terms of the original statement during the year, a revised statement should be put to Council at that time.

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The Regulations separately identify the supported capital expenditure incurred before April 2008 and the self-financed borrowing that was incurred after this time.

The statutory guidance recommends four non-compulsory options for making a „prudent provision‟ for MRP:

For supported capital expenditure

 Option 1: Regulatory method – where MRP is charged based on a 4% reducing balance basis, with some technical adjustments; or  Option 2: Capital Financing Requirement (CFR) method – Where MRP is charged on a 4% reducing balance basis.

For self-financing capital expenditure after 1st April 2008

 Option 3: Asset Life method – MRP is based on the useful life of the asset, either on an equal instalment or an annuity basis.  Option 4: Depreciation method – MRP is charged based on the actual depreciation of the asset.

The Council currently uses „Option 2‟ for its supported capital expenditure provision and „Option 3‟ for its “self-financing” capital expenditure.

5. Evaluation of alternative option(s) Officers continually review treasury management practices, and as a result have identified an opportunity to make the Council‟s provision more prudent whilst at the same time releasing savings in the Councils revenue spending.

While Councils are required to have regard to the guidance, they are allowed to set their own policy outside of the options given if it can be demonstrated that this would be prudent.

Officers have explored the impact of changing the Councils policy regarding pre-2008 MRP using a 2% straight line method. This would involve taking the net pre-2008 liability and dividing the MRP charge equally over 50 years. The impact of this change is shown graphically in Appendices 2 and 3.

The advantage to this approach is that MRP will fully cover the level of pre-2008 supported capital expenditure incurred within 50 years. Because the current method of charging MRP on this debt is done on a reducing balance basis, it would never be fully repaid, but would take around 200 years for it to reduce to a near-zero level.

The Graphs indicate that there is a crossover point between the proposed charge and existing charge in 18 years‟ time (2032/33); however, there will be no adverse impact on the Treasury Management budget as a result of this. Officers have performed a discounted cash flow calculation for each approach and this further supports the case for a change in policy.

The statutory guidance states that the broad aim of a „prudent provision‟ is to ensure that debt is repaid 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

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revenue support grant, reasonably implicit in the determination of that grant. The advice from Grant Thornton, the Councils external auditor, in a 2014 publication „„Approving the minimum revenue provision policy‟ (see Appendix 4) states that „if the length of time is excessive (more than 60 years say) then the policy is unlikely to be prudent‟. This policy would bring MRP into line with this guidance and the Council‟s own depreciation policy for land and building, which estimates the useful life of these assets at 50 years. At Burnley (and most local authorities) borrowing to support capital expenditure incurred before April 2008 was not attributed to specific assets, so it is not possible to apply the asset life method to this expenditure.

Subject to Members considering the questions presented in the Grant Thornton publication, referred to above, and subsequently approving the amended policy, the auditors would have no objections to this change.

If approved, this change will apply from the 2015/16 year accounts onwards.

It is not recommended that any changes are made to the MRP policy regarding the calculation of post 2008 self-financing debt which is based on the asset life method as referred to in paragraph 4 above.

6. Other Changes included in the Revised MRP Policy This policy also clarifies that the Council will defer MRP charges until a year after practical completion for any new assets as allowed by statute.

7. Impact of Proposal on Prudential and Treasury Indicators 2015/16 The reduced charge to the revenue account for MRP of £433k will reduce the ratio of financing costs to net revenue stream from 13.1% to 10.4%.

As a result of the CFR being reduced more slowly in 2015/16 and the early years, a notional interest charge on the in-year excess of borrowing over MRP charge will be made. This will mean that the notional incremental impact of the capital investment decisions expressed as a portion of a band D property goes up in the early years (e.g. in 2015/16 from £10.02 to £10.42). This is purely to satisfy the requirements of the Prudential Code.

8. Risk Implications We have sought to mitigate any risk of an adverse audit opinion by consulting with the Council‟s external auditors before proceeding.

FINANCIAL IMPLICATIONS AND BUDGET PROVISION

9. The impact of this policy is that rather than having a high charge in initial years that reduces over time, the Council will pay a charge that is consistent throughout the shorter repayment period. This will result in a lower charge for the first 17 years than under the current arrangement, with a higher charge impacting on Council Tax payers in the subsequent years until year 50 when the charge will have been repaid in full. The overall net cost of the proposal is the same using the revised methodology. However, when the time value of money is considered the actual impact will be a benefit of £1.4m in cash terms.

The reducing MRP charge (under the current policy) is reflected in the Medium Term Financial Strategy through a series of one off annual savings rather than through a

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permanent budget adjustment. If the proposed change to the policy is approved, the MTFS will be adjusted to reflect the new lower fixed charge resulting in an ongoing saving. The financial impact of the proposed changes are shown in the graphs in Appendices 2 and 3.

POLICY IMPLICATIONS

10. None

DETAILS OF CONSULTATION

11. None.

BACKGROUND PAPERS

12. None

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

C:\Users\spfarm\AppData\Local\Temp\e17a77a36fca424487767fadaa63f8ab.doc Appendix 1

Revised Minimum Revenue Provision (MRP) policy statement

The Council is required to pay off an element of the accumulated General Fund capital spend each year (the CFR) through a revenue charge (the minimum revenue provision - MRP), although it is also allowed to undertake additional voluntary payments if required (voluntary revenue provision - VRP). CLG regulations have been issued which require the full Council to approve an MRP Statement in advance of each year. A variety of options are provided to councils, so long as there is a prudent provision. The Council is recommended to approve the following MRP Statement: Annual Statement on Policy for Making Minimum Revenue Provision on Outstanding Debt (Annual MRP Statement)

Relating to the Financial Year 2015/16

The Council’s policy on making the minimum revenue provision (MRP) for the repayment of debt to be charged to the Council’s revenue account for the financial year 2015/16 is as follows:

The MRP shall be calculated in accordance with the Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2008 and the guidance issued under section 21(1A) of the Local Government Act 2003.

The Council is recommended to approve the following revised MRP Statement: The MRP shall be calculated:

a) From 2015/16, for capital expenditure incurred before 1 April 2008 or which in the future will be Supported Capital Expenditure, MRP will be charged on a 2% straight line basis. This ensures that the debt will be repaid within 50 years. Previously, the Council charged MRP in line with the former DCLG Option 2. This option provided for an approximate 4% reduction in the supporting borrowing need (CFR) each year.

b) For capital expenditure funded from prudential borrowing in accordance with option 3 of the guidance for financial years 2008/2009 to 2014/2015 and assumed for 2015/2016.

Calculated on the asset life method - using the equal instalment method. The calculation will divide the borrowing relating to each particular asset and divide this by the estimated life of the asset to produce an equal annual charge to the revenue account. This will also be the method used when the asset is not Burnley Council’s asset but where the Council has made a capital contribution to the cost.

The total of a) and b) above will be the overall annual MRP.

Regulations allow Authorities to apply an ‘MRP holiday’, whereby the MRP charge is deferred until a year after the practical completion of the asset. The Authority will apply this allowance where appropriate.

d 5

ITEM

Appointment of Monitoring Officer

ITEM NO

Appointment of Monitoring Officer and Cancellation of Interim Arrangements for the Head of People, Law & Regulation

REPORT TO FULL COUNCIL

DATE 15th July 2015 PORTFOLIO Resources & Performance Management REPORT AUTHOR Eric Dickinson TEL NO 7256 EMAIL [email protected]

PURPOSE

1. To appoint the newly recruited Head of Governance, Law and Regulation as the Council’s Monitoring Officer and to cancel the interim arrangements that were put in place pending that appointment.

RECOMMENDATION

2. That Lukman Patel be appointed as the Council’s Monitoring Officer, with effect from 27th July 2015. 3. That the interim arrangements made by the Chief Executive on 17th September 2014, and noted by Council on 1st October 2014 (minute nos. 47&48) in respect of the powers delegated to the Senior Solicitor and the Environmental Health & Licensing Manager regarding Council Functions as set out in Appendix 1 to this report, be cancelled with effect from 27th July 2015 4. That the permanent responsibility for the Council functions set out in the Appendix to this report be confirmed as being the responsibility of the Head of Governance, Law & Regulation with effect from 27th July 2015 5. That it be noted that the Leader, set out in Appendix 2 to this report, has amended Part 3 Executive Functions in order to cancel with effect from 27th July 2015 the interim arrangements made by the Leader on 17th September 2014, and noted by Council on 1st October 2014 (minute nos. 47&48) in respect of the powers delegated to the Senior Solicitor and the Environmental Health & Licensing Manager regarding Executive Functions as set out in Appendix 1 to this report. 6. That it be noted that the Leader, set out in Appendix 2 to this report, has confirmed that the permanent responsibility for the Executive Functions as set out in Appendix 1 to this report be confirmed as being the responsibility of the Head of Governance, Law & Regulation with effect from 27th July 2015.

REASONS FOR RECOMMENDATION

7. To ensure the Council meets its statutory requirements and operational needs.

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SUMMARY OF KEY POINTS

8. Monitoring Officer The Council is required, under Section 5 of the Local Government and Housing act 1989, to designate one of its Officers as the Monitoring Officer. This is usually, although not necessarily, one of the Council’s solicitors.

When the Head of People, Law & Regulation/Monitoring officer left the Council last year David Talbot, Senior Solicitor and at the time Deputy Monitoring Officer, was designated as the Monitoring Officer for an interim period from 22nd September 2015 by the Chief Executive using Emergency Powers, consequently reported to Full Council on 1st October 2015.

9. The Council’s Senior Management Review has been ongoing and a new Head of Governance, Law & Regulation has recently been appointed. In these circumstances it is proposed that succession arrangements to the post of Monitoring Officer be made on a permanent basis, and that Lukman Patel be designated as the Monitoring Officer from 27th July 2015.

10. In light of the appointment, the Head of Governance, Law & Regulation will now be able to take on permanent responsibility for the functions in Part 3 of the Constitution in respect of which interim arrangements were put in place as set out in the Appendix to this report.

FINANCIAL IMPLICATIONS AND BUDGET PROVISION

11. Any financial consequences are within the approved revenue budget provision for 2015/16.

POLICY IMPLICATIONS

12. None.

DETAILS OF CONSULTATION

13. MSOG/MSWG.

BACKGROUND PAPERS

14. None.

FURTHER INFORMATION PLEASE CONTACT: Eric Dickinson 7256 ALSO: Tom Forshaw 7260

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Permanent Function Interim Responsibility Reference in Part 3 Responsibility

COUNCIL FUNCTIONS- FULL COUNCIL AMENDS PART 3 Paragraph 7 – “To Part 3 Senior Solicitor execute all documents Council Functions Head of Governance, Environmental Health necessary to give (Head of People, Law & Law & Regulation & Licensing Manager effect to Council Regulation functions) decisions” Part 3 Head of Governance, Council Functions Senior Solicitor Paragraphs 1-6 Law & Regulation (Development Control) Paragraphs 1-6 Paragraph 5(d) in the absence of the Part 3 Environmental Health Head of Governance, Environmental Health Council Functions & Licensing Manager Law & Regulation and Licensing (Regulatory) Manager, the Head of Chief Executive’s Office)

EXECUTIVE FUNCTIONS- LEADER AMENDS PART 3, REPORTED TO FULL COUNCIL Part 3 Executive Functions Head of Governance, Paragraphs 1-7, 9-11, Senior Solicitor (Head of People, Law & Law & Regulation 13-14, 21-22, 24, 27-34 Regulation functions) Paragraph 44 – “To Part 3 Senior Solicitor execute all documents Executive Functions Head of Governance, Environmental Health necessary to give (Head of People, Law & Law & Regulation & Licensing Manager effect to Executive Regulation) decisions” Part 3 Executive Functions Environmental Health Head of Governance, Paragraphs 1-7, 13-14, (Head of People, Law & & Licensing Manager Law & Regulation 33, 35-43 Regulation functions)

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ITEM

Appointment of Independent Persons and Constitutional Amendments 2015/16

ITEM NO

Appointment of Independent Persons and Constitutional Amendments

REPORT TO FULL COUNCIL

DATE 15th July 2015 PORTFOLIO Resources & Performance Management REPORT AUTHOR Eric Dickinson TEL NO 7256 EMAIL [email protected]

PURPOSE

1. To appoint Independent Persons under the Localism Act 2011, and to make constitutional changes affecting the Disciplinary Procedures for Senior Officers.

RECOMMENDATION

2. That Mohammed Usman Khan and Patricia Higginbottom be appointed as Independent Persons under the Section 28(7) of the Localism Act for a further period of 3 years from the 15th July 2015 to 30th June 2018.

3. That authority to apply the requirements of the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2015 regarding the disciplinary process for the Head of Paid Service, and make any consequential changes to Part 4.9 of the Council’s Constitution, be delegated to the Monitoring Officer in consultation with the Chief Finance Officer.

REASONS FOR RECOMMENDATION

4. To ensure the Council meets its statutory requirements and operational needs.

SUMMARY OF KEY POINTS

5. Independent Persons The Council has previously appointed Independent Persons under Section 28 (7) of the Localism Act 2011 for the purposes of the Members’ conduct regime. It is proposed to continue their appointments for a period of 3 years from 15th July 2015 to 30th June 2018.

6. Senior Officers Disciplinary Process Part 4.9 The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2015/881 came into force on 11 May 2015 and required Councils to modify their standing orders to implement the Regulations no later than the first ordinary meeting of the Council after the enforcement date.

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7. The Regulations set out the the disciplinary process for the Council’s most senior Officers i.e . they remove the requirement that a Designated Independent Person be appointed to investigate and make a binding recommendation on disciplinary action against these senior staff i.e . Head of Paid Service, the Monitoring Officer and the Chief Finance Officer.

Instead the decision will be taken by Full Council who must consider any advice, views or recommendations from an independent panel. The independent Panel has to be made up of Independent Persons who have been appointed under Section 28 (7) of the Localism Act 2011.

As there are still contractual issues to be resolved regarding the implementation of the regulations it is proposed that the authority to apply the regulations and make any consequential changes to be Council’s constitution is delegated to the Monitoring Officer in consultation with the Chief Finance Officer.

FINANCIAL IMPLICATIONS AND BUDGET PROVISION

8. Any financial consequences are within the approved revenue budget provision for 2015/16.

POLICY IMPLICATIONS

9. None.

DETAILS OF CONSULTATION

10. MSOG/MSWG

BACKGROUND PAPERS

11. Letter 25 March 2015 from DCLG to Chief Executive. 12. Explanatory Memorandum and the Regulations 2015/881.

FURTHER INFORMATION PLEASE CONTACT: Eric Dickinson 7256 ALSO: Tom Forshaw 7260

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ITEM

Leader’s Changes to Part 3 (Executive) Delegations

ITEM

Scrutiny Chair’s Report Cycle 1

ITEM NO

Scrutiny Chair’s Cycle 1 Report to Council

Since the last meeting of the Full Council in May, the Scrutiny Committee has held two workshops, to receive reports from 2014/15 and to develop a workplan for 2015/16.

At the June workshop, the Committee received an update on the work of the Welfare Reform Sub Group - promotion of the Exceptional Hardship Payments which claimants of Council Tax Benefit can apply for from the Council where appropriate.

Members were informed of further action that had been taken to encourage qualifying residents to apply to the fund, and the effect that this had had on the number of people claiming the payments. Members also discussed the impact that a new temporary post in the unit may have on the scheme, due to the additional resource available.

The Committee also received an update on the 2014/15 Performance Report & Balanced Scorecard for information, and to highlight potential areas for scrutiny.

A second workshop was held early in July which finalised the Work Plan, with two projects for 2015 and one project for 2016 (with another to be added in early 2016). Members presented the topics they wished to scrutinise, and by democratic vote prioritised the Scrutiny Proposals that had been submitted. Having regard to the capacity available to support the process, three topics have been selected for review; the Rail link, The Leisure Trust, and Arts & Community Engagement within Burnley.

We are due to hold our first official meeting of the Scrutiny Committee on 7th July. Member Engagement has been good, and Members are now looking forward to participating in the review working groups. Through our work, we are aiming to bring forward positive suggestions and recommendations for improvements that will help to move Burnley forward.

I hope that this year will bring positive and innovative results from the Scrutiny Committee, and that we can continue to build on the work carried out by previous Committees.

Councillor Andy Tatchell

ITEM

Strategic Plan Progress Reports

BURNLEY BOROUGH COUNCIL REPORT TO THE FULL COUNCIL Internal link to previous report

PORTFOLIO: LEADER

EXECUTIVE MEMBER: COUNCILLOR MARK TOWNSEND

DATE OF REPORT: 15/07/2015

Progress on Strategic Objectives

PE1 Strong visible leadership for the Council and the Borough Action Progress PE1a- Work with partners to My fellow Executive Members will provide further ensure the delivery of the details on the Council’s current contribution to Borough’s Community Strategy. partnership work in the borough, including an update on community safety partnership matters, and our work with the private sector on economic development projects. PE1b- Ensure the Council plays The Leaders of Lancashire's 15 District, County a major role in Pennine and Unitary Councils met on Friday 19 June to Lancashire Leaders and Chief discuss the potential for forming a Combined Executives group (PLLACE), and Authority serving the whole of Lancashire. in the Lancashire Leaders Group, in developing proposals A Combined Authority is a formal arrangement for a Combined Authority and where Councils continue to exist as separate joint delivery proposals authorities, but work together to make decisions on specific strategic issues affecting the whole area.

The Leaders agreed to continue exploring the possibility of a Combined Authority over the coming months. PE1d- Work with educational The Chief Executive attended her first meeting of partners in the Borough and the the Burnley Education Trust Board on the 3rd Education Trust to improve July and will explore further actions to improve educational attainment. educational attainment across the Borough.

PR1 Developing a diverse business base with an entrepreneurial culture Action Progress PR1a- Contribute to the strategic District Leaders appointed me as their Chair at direction of the Lancashire Local the recent AGM and this allows me to continue Enterprise Partnership, playing a to represent them on the LEP. full part in developing and implementing the Local Growth I am pleased to report that at its meeting in April Deal 1, securing resources from the LEP approved the business case for the Growth Deal 2 and positioning £1.6m Refurbishment of Centenary Way Viaduct. projects for funding support. The scheme will ensure that the viaduct remains operational providing a quick and efficient link between the M65 and key employment sites at Heasandford and Innovation Drive.

The LEP is also working with government on the roll out of a new programme of European Funding. A key priority is the continuation of a strong business support service through the Lancashire Growth Hub and the Manufacturing Advice Service. Council officers will be working with Burnley businesses to ensure that they benefit from the support available to assist them with their growth plans. PF2 To transform and re-shape the Council to deliver a sustainable business model Action Progress PF1a- Procure a strategic The Council received a good response from the partner to deliver a range of marketplace with a broad range of competitive services within a reduced cost bids submitted. The process of evaluation has base. now commenced in line with the methodology as set out in the procurement documentation particularly focussed on the delivery of savings; maintaining service standards; harnessing technology; staff terms and conditions and ability to generate inward investment. Each bid is being assessed against these criteria, identifying both strengths and weaknesses in each submission.

On completion of the evaluation exercise, a business case will be prepared for approval by the Executive; this is likely to be in the autumn. I welcome the view of the Scrutiny Committee to inform the Executive in their decision making, this is key decision and will shape the way the council will operate for many years to come. Officers will also be preparing an in-depth customer impact assessment to inform our decision making. PF1g- Review the democracy Nothing further to report at the moment – we will functions of the Council. review later in the year.

BURNLEY BOROUGH COUNCIL REPORT TO THE FULL COUNCIL Internal link to previous report

PORTFOLIO: DEPUTY LEADER, HOUSING AND ENVIRONMENT

EXECUTIVE MEMBER: COUNCILLOR JOHN HARBOUR

DATE OF REPORT: 15/07/2015!Syntax Error, [

Progress on Strategic Objectives PE3 Ensuring services to vulnerable groups are protected wherever possible Action Progress PE2a- Proactively work with During quarter 4 for 2014/15, the Council residents vulnerable to losing provided housing advice to 267 households. their home through preventative Of these, 20 households underwent a full strategies homelessness assessment. In these cases the Council investigated the household’s circumstances and issued a formal decision setting out the conclusion of the investigation and the level of duty owed to the applicant. From the 20 assessments, 6 households were given a full housing duty.

The Council also prevented 36 households from becoming homeless, of these 6 were issued bonds to assist homeless households access accommodation in the private rented sector.

We are continuing to implement the Prevention of Homelessness Strategy 2013– 2018 action plan, which will ensure we work effectively with our partners and maximise our ability to prevent homelessness and offer a range of quality services to those in housing need. PE2b- Ensure quality housing The Council continues to assist vulnerable, and services are available to elderly and disabled residents through its vulnerable, elderly and disabled grants programmes. residents, aiming to assist independent living in decent Vulnerable residents are supported by the housing across all sectors. council’s Home Improvement Agency (HIA) St Vincent’s Home Care and Repair who deliver a range of services including a Handyperson Service and the council’s Emergency Work grant. St Vincent’s took on the service from Preston Care & Repair on the 15th of June as Burnley’s HIA and officers will be working closely with them to ensure a smooth transition.

Disabled Facilities Grants are available for resident who have been assessed as requiring adaptations to help them remain independent in their own home. 32 adaptations have been completed so far this financial year with a further 60 in progress. PL1 Making the Borough Cleaner Action Progress PR3a – Facilitate redevelopment For Burnley Wood, Keepmoat are now on of key priority neighbourhoods site to progress the next area of across the Borough development on the land south of Kirkgate between Branch Road and Glebe Street. This phase comprises 50 houses.

In South West Burnley work began in May on Phase 3a, the final 18 units from Keepmoat’s detailed planning permission that covered land west of Hargher Street. Keepmoat have also submitted a detailed planning application for a further 99 properties on cleared land east of Hargher Street and the former Hargher St school. This Phase 3b is programmed to begin on site later in 2016.

In Daneshouse & Stoneyholme, the Council continues to work with its development partners in the area. There is steady progress being made by Gleeson – the first phase of development in Stoneyholme is now sold and the second phase well underway. The Barden Lane scheme is also steadily being built out. In addition Great Places are on site at Grey St constructing 50 affordable homes. PL2 Making the Borough Safer Action Progress PL2b- Improve condition and The Council has received 50 new disrepair management systems across the complaints from private rented sector private rented sector, including tenants since the start of April 2015. The the use of selective landlord majority of the disrepair cases received are licensing in designated areas. dealt with informally and are resolved promptly where possible. We have a current caseload of 80 open and ongoing disrepair cases.

We are now in year 2 of the Trinity area selective licensing designation. The annual report was presented to the Private Rented Sector Forum on the 5th March 2015. It is now going through the final completion process and will be available on the website shortly. We have licensed 404 properties out of a known 584 private rented properties, 69% of all known properties that require a license.

With regards to the other selective licensing designations currently 344 properties have been licensed in Queensgate representing 54% of the total 637 known private rented properties, and 249 have been licensed in Gannow representing 59% of the total 419 known private rented properties.

We have also proposed to refuse 22 licence applications across the 3 areas.

The applications for those properties that have not yet been licensed are at various stages of the approval process and any properties where we have not received an application are being actively pursued.

The Council has now also started the consultation on the proposal to introduce four further areas for selective licensing in parts of Burnley Wood and Healey Wood, Bank Hall, Danehouse and the Ingham and Lawrence Street area of Padiham.

We have held 4 landlord development days since the 17th March 2015 with a total of 75 landlords attending the sessions run by the National Landlords Association. We have a further 3 days scheduled for October, November and December.

There are now a total of 278 Accredited Landlords and 8 accredited managing agents. 2 Agents have been refused accreditation. The target for 2015/16 is to accredit a further 50 landlords.

PL3 Making the Borough Greener Action Progress PL3a - Improve energy efficiency, The Council continues to work closely with reduce fuel poverty and help other Lancashire authorities through the tackle climate change. Lancashire Home Energy Officers Group. This group is tasked with obtaining funding for energy efficiency schemes across Lancashire.

The Council has been invited to bid for £49,558 of funding from Lancashire County Council Public Health. This funding is to be used to assist vulnerable residents with heating related issues during the winter months.

The Burnley Heating Rebate scheme is available for residents who replace their boiler with one that is “A” rated. This scheme is always popular and 63 enquiries have been received already this year. As a result officers are not able to accept any more enquiries as the budget is now fully committed.

PR3 Establishing Burnley as an attractive place to live, work and learn Action Progress PR3h - Start work on a disposal Sites are being considered for allocation for programme that over a three year housing in the new local plan and officers period should both deliver much are continuing to assess the options for needed higher value housing in bringing forward more sites. Officers are also the Borough but also contribute working with developers to bring forward receipts to the Council’s budget. privately owned sites. This will include the on-going disposal of our clearance sites in the Borough to the private sector PR3i – Implement the Empty The Council continues to implement a range Homes Programme of interventions to tackle the problems of empty properties in our Borough.

For example, we have sold or are currently in the process of selling 9 properties that have been dealt with through the Council’s empty homes programme. We also have 4 renovations underway with a further 7 due to start soon.

In addition, we have also developed a scheme in partnership with Calico to rent a number of the properties dealt with through the empty homes scheme. Calico currently have 13 former empty properties leased and are looking for tenants for a further 7 properties.

We have received 10 applications from Landlords for our interest free loan and are currently processing those applications.

Our Compulsory Purchase Order programme is continuing and I will give a detailed update on this in my next Council report.

BURNLEY BOROUGH COUNCIL REPORT TO THE FULL COUNCIL Internal link to previous report

PORTFOLIO: RESOURCES AND PERFORMANCE MANAGEMENT

EXECUTIVE MEMBER: COUNCILLOR HOWARD BAKER

DATE OF REPORT: 15/07/2015

Progress on Strategic Objectives

PRF1- To transform and re-shape the Council to deliver a sustainable business model Action Progress PF1b- Maintain an up to date The council is considering the outcome of the Medium Term Financial Strategy Chancellors Emergency Budget announced to ensure that future reductions in earlier this month and its implications for future funding levels are anticipated and financial planning. Whilst it does not give detailed factored into budget setting. settlement figures for Burnley, it does give a broad indication of future challenges. Officer intelligence indicates that austerity measures are set to continue with anticipated front loading of budget reductions early in this Parliamentary cycle with 2016/17 in particular likely to be hit hard.

Our current MTFS which anticipates funding reductions of £1.4m in 2016/17 is therefore considered to be optimistic.

Work is however progressing to develop savings options for 2016/17 and progress in particular is being made to secure anticipated savings arising from the procurement of our strategic partner. In addition, action has already been taken to consider the profile of the council’s debt repayment so as to ease pressure on the revenue budget.

Given the declarations by the government it is clear that there remains the real prospect of further funding reductions beyond those already factored into the medium term financial strategy.

PF1c –Review the overall Work is now underway in the establishment of a structure of the workforce to client function with clear roles now identified to secure further efficiencies and support the strategic partnership. These primarily align to the Council’s new focus on the roles of developing positive working business model relationships, commercial and performance management. These roles will be developed within the existing organisational structure and will be integral to a number of existing job roles rather than the creation of a dedicated team; recognising the need for the council structure to flex in response to council priority..

Work has now commenced through the Change Board to establish the separation of the “provider arm” of the council through preparing shadow management arrangements particularly to ensure smooth transition to the new business model and effective performance management of the contract. PF1d- Re-align the Council’s The OD Strategy will be formally reviewed in the Organisational Development Autumn. Progress on the current action plan strategies to fit the Council’s new continues to be overseen by Team Burnley. business model Commercial and contract management training as part of the new business model is currently being organised.

The main work programme in the People and Development team at the moment is the preparation for the IiP assessment in August 2015 and preparations and plans to support the Change Programme.

The Council is currently undertaking its employee and health and wellbeing survey. The results should be available in July.

Maintain the Coaching Culture –Five new coaches have recently completed their training who will now be brought into the existing team.

Maintain Employee Wellbeing Achievements within the Council’s Culture –Talks have taken place with NHS regarding health checks/wellbeing initiatives - that could be provided free-of-charge to Council employees.

Promote Jobs and Careers within the Public Sector Arena – The Council’s advertising for apprentices is underway and closes at the end of June.

Sharepoint roll-out is continuing and more training sessions are planned

PF1f- Review of the Council’s You will see elsewhere on your Agenda, my governance and regulatory recommendation to appoint Lukman Patel as the framework to align it with the Council’s monitoring officer to take up his new Council’s new business model post at the end of July 2015, with associated changes to delegation arrangements. I would like to thank officers who have acted in the interim and who have undertaken their duties professionally during this period.

The Strategic Partnership agreement sets out key governance structures to ensure effective partnership development and to ensure strategic oversight of performance. Further work will be taken forward as the Change Programme progresses.

PF1h- Monitor impact of key Universal Credit has been live in Burnley since changes to Council Tax Benefit October 2014. In accordance with the national and Housing Benefit to ensure a roll-out strategy take up has been slow but continuing good quality service steady, starting with single claimants and for Burnley residents. progressing to claims from families in March 2015. To date, the Council has received 418 claims from Universal Credit claimants and 185 of these council tax support claims are currently live.

Council officers continue to provide help to claimants who need support to make a claim for Universal Credit online; in additional personal budgeting support for Universal Credit claimants who are struggling with their weekly budgets is available.

Further promotion of the Council’s Exceptional Hardship Payment scheme is being carried out, with a campaign focusing on single claimants between the ages of 26-35. The previous campaign in respect of claimants aged 25 and under resulted in only 9 applications (and 6 awards) out of a possible 186 claimants who were invited to apply.

A further update on the impact of the Government’s Welfare Reform agenda, concentrating on the Council Tax Support scheme and its impact in terms of protecting vulnerable groups and creating incentives was provided to Scrutiny Committee in June 2015.

Future changes to the national benefit framework, their likely impact on citizens and on the Council will be reported as they arise.

BURNLEY BOROUGH COUNCIL REPORT TO THE FULL COUNCIL Internal link to previous report

PORTFOLIO: LEISURE AND CULTURE

EXECUTIVE MEMBER: COUNCILLOR BEA FOSTER

DATE OF REPORT: 15/07/2015

Progress on Strategic Objectives

PE3 Ensuring Services to vulnerable groups are protected wherever possible

Action Progress PE2c-Implement the Children and Lancashire County Council’s Children’s Social Young People's Plan for Care are leading on the multi-agency Burnley/Pendle. safeguarding practice inspection actions. A local conference will be held in September 2015 to address the recommendations and share an understanding and ownership of the needs and challenges. This will help to build effective relationships with education, local authority, the police, voluntary, community and faith sector and health services at a local level.

Partners across Burnley and Pendle met in June to discuss the delivery of the Child Sexual Exploitation (CSE) strategic action plan at a district level. All partners have been asked to provide a position statement on their organisations work and identify any issues in need of development. This will be used to develop a local action plan.

The sex and relationships questionnaire surveys have been returned and some of the key findings include:  85% of parents feel confident about talking to their child about sex and relationships, compared to 79% nationally (NAHT 2013) and 87% in Pendle (2014)  43% of parents don’t know if the sex and relationships education their child has in school is enough to make positive choices (49% in Pendle)  81% of parents feel very confident or confident in protecting their child online, compared to 76% in Pendle and 80% nationally (2013)

The survey results will be used to support actions to be delivered in the CSE action plan as mentioned above.

This year’s Summer fun brochure, detailing activities over the summer holiday period, is a joint brochure across Burnley and Pendle. 12,500 brochures will be delivered in each district to a range of services including children’s centres, schools, libraries and leisure centres.

The Summer Reading journey will be delivered across Burnley libraries with a whole range of activities to encourage children to read over the holidays and avoid the reading dip that can occur. Libraries will be visiting schools to get children and families to take part.

PE4 Improved health standards

Action Progress PE3b- Continue to develop the The 3rd Pennine 10k Run took place on Sunday leisure and cultural offer of 28 June 2015. Approximately 1400 runners Burnley in partnership with completed the course on the day. Burnley Leisure including the development and operation of the On the same day, the Classic car Show took Prairie Sports Complex. place with thousands of people attending this great annual event in Towneley Park.

Burnley Canal Festival is taking place on 29th and 30th August 2015

I recently visited the Prairie Sports Complex which is under construction and planned to be fully operational by October 2015. I am sure that Burnley residents will be pleased with the new development which will also attract users from outside the Borough. The new facility will be operated by Burnley Leisure and I will ensure that all Members are invited to a tour of the new facility when it is completed.

PL3 Making the Borough Greener

Action Progress PL3b –Adopt and implement the The Green Spaces Strategy 2015 – 2025 will be Borough’s Green Space Strategy reported to the meeting of the Executive on 14th including the redevelopment of July 2015 for approval. A copy of the Strategy has Thompson Park through securing been placed in the Members Room. a Heritage Lottery Fund Grant The Green Spaces Strategy sets out the Council’s priorities for the management and development of Burnley’s parks and green spaces over the next 10 years and recognises that resources for both management and development of green Spaces will be very limited. However, the Strategy will help the Council and its partners, particularly the friends of parks groups to secure external grant funding.

There is a wide programme of activities taking place in our parks over summer and I would like to thank all of our Friends Groups for the valuable role they play.

I am delighted to report that the application to the Heritage Lottery Fund for the £1.2 million restoration of Thompson Park has secured Stage 1 approval. We now have one year to complete further consultation and detailed designs prior to Stage 2 approval in August 2016 with work expected to start early in 2017..

PL3c– In partnership with other The first Forest Park Festival was held on 21st agencies, implement the Brun June and the event attracted approximately 800 Valley Forest Park scheme visitors, with activities taking place at Rowley, Queens Park, Thompson Park and along the greenway that runs through the Forest Park. It is hoped that this will be an annual event as a means of promoting the Forest Park as a destination.

The new gateway that provides access to Queens Park has been completed and during the winter a footpath will be constructed that links the gate to the existing path network.

The fabrication of the fishing platform for people with a disability is underway with installation due to be completed in September.

A new Forest Park fold-out map and interpretive leaflet is being designed and printed and the designs for nine new interpretive panels and 35 finger posts are complete and these are due to be installed during the winter. The map and leaflet will be sent out to all councillors when they are available in a few weeks time.

PF2 Review Service Delivery

Action Progress PF1i- Implement the Rethinking The Rethinking Parks Programme is being Parks Programme. delivered jointly with the Offshoots permaculture centre in Towneley and is investigating new techniques for managing Burnley’s parks to maintain quality, save money and benefit wildlife.

 New areas of summer meadow have been introduced in a number of parks and a specialist mower (purchased with Rethinking Parks funding) is being used to cut and removed the grass.  A local agricultural contractor is mowing 25 hectares of meadows in sites such as Brun Valley Forest Park, Towneley Park, Prairie etc, with the hay crop cut and baled.  Approximately 500m2 of annual bedding is being converted to perennial flower beds, which don’t require replanting each year  260 m3 of woodchip has been produced from woodland thinning at Towneley and used for topping up playgrounds at a saving of £8,000.  The Volunteer In Parks programme currently has 30 active volunteers and is continuing to develop.

If any Member wants to view a video on the programme aims, please visit: https://vimeo.com/92227209

BURNLEY BOROUGH COUNCIL REPORT TO THE FULL COUNCIL Internal link to previous report

PORTFOLIO: COMMUNITY SERVICES

EXECUTIVE MEMBER: COUNCILLOR TONY HARRISON

DATE OF REPORT: 15/07/2015

Progress on Strategic Objectives

PL1 Making the Borough Cleaner Action Progress PL1a – Maintain a high standard Urbaser Ltd commenced the delivery of the of Street Cleansing, Refuse borough’s waste, cleansing and re-cycling Collection and Recycling service. service on the 1st June. Leading up to the including the implementation for a commencement date, Officers have worked smooth contract start in June hard with Veolia and Urbaser to ensure a 2015. smooth transition. This was achieved with all rounds completed in the first week without issue. I hope you will all agree that the transition to Urbaser has been seamless.

PL2 Making the Borough Safer Action Progress PL2a - Work with our partners in Safenet Domestic Abuse services have been the Community Safety successful in their LCC Supporting People bid Partnership and the Police and to retain funding for the support service at Crime Commissioner to deliver Burnley Refuge. the strategic priorities identified in the Strategic Assessment Burnley and Rossendale have been identified as two new pilot areas in East Lancashire to develop and deliver the Transforming Lives agenda locally. Blackburn with Darwen where originally identified as the first pilot area in 2014. The principles of the work are based on Working Together with Families but as well as families also include work with single adults who may have mental health issues, commit minor offences, or are involved in anti-social behaviour.

PE2 Developing opportunities and sustaining ambition of local residents Action Progress PE1c- Communicate our work Council officers and Executive members have and policies, and engage been very proactive over the last period in residents and partners around the running a range of well publicised public events Council’s strategies and at which we have met many members of the initiatives. public and discussed the issues that matter to them.

These include the formal consultation around our investment in the pedestrianised area of Burnley town centre, carried out in partnership with LCC; the Council Leader’s out and about session at the Forest Park Festival last month; support to activities such as the Ightenhill festival, events to mark armed forces weekend, and a range of other events in our parks.

PE4 Improved health standards Action Progress PE3a- Improve the health and Officers recently met with representatives from well-being of residents, and work LCC, Burnley Pendle and Rossendale CVS and in partnership with the East the Alzheimer’s Society to develop initial plans Lancashire Clinical on how to move forward to make Burnley a Commissioning Group and the dementia friendly. A wider steering group is to be Lancashire Health and Well- established to develop prioties and an action being Board. plan. The steering group will meet on 11 September 2015.

PR3- Establishing Burnley as an attractive place to live, work and learn Action Progress PR3b – Work with Lancashire Officers continue to work with County Council County Council to ensure public colleagues on the design stage of the scheme. realm priorities are shared and Consultation events on the plans for the town delivered, including centre were held with key stakeholders and the improvements to the public during May and June. This feedback is pedestrianised area of Burnley now being developed to finalise the plans for the town centre. first phase of works to commence later in the year.

PRF1- To transform and re-shape the Council to deliver a sustainable business model Action Progress PF1e- Implement the Council’s As part of the council’s digital approach to IT strategy and Customer enable customers to access services on line Access and Service Strategy. 24x7, Streetscene cleansing services are now being managed through the council’s CRM (customer relationship management system). They are accessible by either clicking on the appropriate Icon on the council’s website, or by signing into “your burnley” where it is possible to track and follow progress.

My account which is accessible through “your burnley” has also gone live. This enables council tax paying residents to view, details of their council tax bills, exemptions, payments, banding etc. and will give them links to useful forms such as change of address.

Promotion of My Account and street cleansing is underway and is re-enforced by Customer Service Advisors in Contact Burnley, who are encouraging people to “sign up”. We will be monitoring the impact on calls and visits. We are keen to enable efficiencies by moving those customers that can to on-line cheaper channels, whilst still enabling those that can’t access to services face to face or over the phone.

BURNLEY BOROUGH COUNCIL REPORT TO THE FULL COUNCIL Internal link to previous report

PORTFOLIO: REGENERATION AND ECONOMIC DEVELOPMENT

EXECUTIVE MEMBER: COUNCILLOR SUE GRAHAM

DATE OF REPORT: 15/07/2015

Progress on Strategic Objectives

PR1 Developing a diverse business base with an entrepreneurial culture Action Progress PR1b- Pro-actively work with We have seen a continued high level of business national and regional property activity during the first two quarters of 2015.” agents to attract new business and investment into Burnley. Businesses are expanding, securing new contracts and investing in new plant & machinery and there is confidence across sectors ranging from small and medium size businesses and up to large and multi-national companies.

 Recently announced has been the major investment and relocation by technology distribution business Exertis. The company distributes over 350 technology brands and works with over 14,000 businesses across Europe, the investment in Burnley and the new National distribution facility will see high value jobs and employment opportunities for the expanding work force.  A visit from the Lord Lieutenant announced the major investment by Panaz Ltd this high profile business acquired a land mark building on Network 65 bringing over 80 high value jobs into the borough.  Vodafone Automotive UK have also recently moved into a bespoke office building on Network 65 bringing 35 jobs and are in the process of recruiting a further 30 from the local area.

PR1c- Proactively support the The Business Support Team currently has 45 Borough’s key growth businesses live enquiries from companies looking to relocate and deliver the council’s Business into the Borough or expand within it. Of the 45 Growth Programme. companies, 18 are from outside of the Borough with the remainder being companies already based in Burnley. The majority of enquiries are for industrial premises with 8 enquiries for office premises. The enquiries come from a range of sectors including IT & Telecoms, Advanced Manufacturing, Construction, and Creative and Digital.

Business Growth Programme

Given the success in the first two years of the Business Growth Programme it is being proposed that the programme is extended for a further two years. In addition, the new RGF – Lancashire Growth Fund (£8 million) has come on stream and is a Capital Grant Scheme aimed at creating jobs.

PR2: Establishing Burnley as a key retail and service centre in Pennine Lancashire Action Progress PR2a- Deliver a quality Town The Council has created a new Burnley and Centre Management service in Padiham Town Centre Management Team both Burnley and Padiham and is currently recruiting for a new Town Centre Manager. A key priority for the team will be working with town centre businesses to create strong partnerships.

A number of new businesses are due to open in Charter Walk including; The Entertainer, Body Care, Designer Outlets and Our House. Costa Coffee is planning to refurbish their ground floor seating/serving area and is looking to open up the first floor as well. PR2b- Complete ongoing review The Markets Review is progressing and a of Burnley Markets. report on the outcome of the review will be considered by the Executive in the Autumn. PR2c- Deliver a significant The developer is still in negotiations with the Leisure Scheme on the Curzon anchor tenant and is working on a detailed Street site in partnership with planning application. private developer PR3: Establishing Burnley as an attractive place to live, work and learn Action Progress PR3c- Progress the Weavers’ The new office accommodation at Slater’s Triangle regeneration programme Terrace is now completed and being in partnership with Barnfield marketed to occupiers. The adjoining Investment Properties, St. Engine House will be completed by mid Modwen’s and the Canal and August creating high quality business Rivers Trust accommodation in an enviable setting. Banny’s Fish and Chip Restaurant opened at the beginning of June.

The Canals and River’s Trust are currently drawing up detailed proposals for the redevelopment of Finsley Wharf for submission to the Heritage Lottery Fund to secure £2m already earmarked for the scheme. PR3d- Ensure that the new After ten years of campaigning and Burnley – Manchester Rail development work the new service services commences in May 2015 commenced on 17th May as planned. Council officers worked with partners at LCC and Northern Rail to hold a commuter launch on 18th May to ‘wave off’ the first commuters to Manchester. We received excellent regional news coverage. This included Granada News, BBC North West, Radio Lancashire, 2BR, Lancashire Telegraph and Burnley Express. Continuing work with LCC, Network Rail and Northern Rail to promote the service. PR3e- Work with LCC to The £1.6m Refurbishment of Centenary Way implement Local Growth Deal viaduct is due to commence this month. We funded transport improvements. are working closely with LCC to minimise the disruption and the works will be completed before Christmas. PR3f- Work with 150 Burnley The bondholder network continues to grow Bondholders to Implement the in strength. The last bondholder event held Borough’s Branding Plan to at ZF TRW discussing International Burnley reposition Burnley as a place to – the strength of foreign investment and its live and invest part in Burnley’s economy. Burnley has recently received positive news coverage in the Sunday Times, Sun, Sunday Mirror and FT for Burnley businesses, highlighting the borough’s business successes and housing and lifestyle offer.

The recent Burnley Business Awards held at Towneley Hall were amazing with 450 guests; Business of the Year went to VEKA UK due to their continued commitment to Burnley, including a £5m extension opened earlier this year. PR3g - Develop and deliver the The Executive will consider a revised Local Plan. This will act as the Statement of Community Involvement at its key supporting framework for next meeting. This tells how we will consult encouraging employment and with members of the public and with housing investment. statutory consultees on all planning matters. It is essential that the SCI is updated as it will form part of the legal compliance testing of the Local Plan undertaken by the inspector at the Plan PR4: To enhance Burnley’s reputation as a regional advanced manufacturing centre Action Progress PR4a- Support the development Trebor’s architects are now finalising designs for of the Princess Way Knowledge a first phase of development. This will be a Park, developing advanced 25,000sqft workspace incubator comprising 18 manufacturing and engineering workshops and offices plus two larger incubation and growth on space workshops each of 5,800sqft. Site investigation linked to facilities at Burnley bore holes and trial pits have recently been

Campus completed on site with a view to the main

contractor starting in the New Year.

PR4b- Secure further occupiers Development at Innovation Drive moves on at a for the Innovation Drive business pace and has enabled development to start on park. three sites and progress the relocation/expansion of three companies, namely, Lomax Offshore Couplings, Kavia Tooling Ltd., and Elite 04.

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Financial Systems Transformation