Agenda and minutes

Cabinet - Wednesday, 6 February 2019 10.00 a.m.

Venue: District Council Chamber, South Lakeland House, Kendal

Contact: Inge Booth  Senior Committee Services Officer

No. Item


Chairman's Announcement


The Leader and Promoting South Lakeland Portfolio Holder welcomed everyone to the meeting and took the opportunity to thank those officers involved in the Customer Connect Member Update event held on the previous evening, which facilitated valuable, in-depth discussion between Members.  He also thanked officers for their work in relation to the Member briefing session held during the previous week with regard to Grange-over-Sands Lido and the South Lakeland House/Kendal Town Hall proposals and business case.  He expressed appreciation to Richard Platt from Lambert Smith Hampton for taking the time to attend in the evening in order to enable Members to gain a full understanding of what was being proposed in relation to South Lakeland House/Kendal Town Hall.


Cabinet Executive Decisions pdf icon PDF 274 KB

To authorise the Chairman to sign, as a correct record, the Executive Decisions made by Cabinet on 23 January 2019.


RESOLVED – That the Chairman be authorised to sign, as a correct record, the Executive Decisions made by Cabinet on 23 January 2019.


Declarations of Interest

To receive declarations by Members of interests in respect of items on this Agenda.


Members are reminded that, in accordance with the revised Code of Conduct, they are required to declare any disclosable pecuniary interests or other registrable interests which have not already been declared in the Council’s Register of Interests.  (It is a criminal offence not to declare a disclosable pecuniary interest either in the Register or at the meeting.)


Members may, however, also decide, in the interests of clarity and transparency, to declare at this point in the meeting, any such disclosable pecuniary interests which they have already declared in the Register, as well as any other registrable or other interests.


If a Member requires advice on any item involving a possible declaration of interest which could affect his/her ability to speak and/or vote, he/she is advised to contact the Monitoring Officer at least 24 hours in advance of the meeting.


RESOLVED – That it be noted that Councillor Janette Jenkinson declared an interest in Minute No.CEX/87 below.


Local Government Act 1972 - Excluded Items

To consider whether the items, if any, in Part II of the Agenda should be considered in the presence of the press and public.


RESOLVED – That it be noted that there are no excluded items on the agenda.


Public Participation

Any member of the public who wishes to ask a question, make representations or present a deputation or petition at this meeting should apply to do so by no later than 0:01am (one minute past midnight) two working days before the meeting.  Information on how to make the application can be obtained by viewing the Council’s Website or by contacting the Committee Services Team on 01539 733333.


(1)        Questions and Representations


            To receive any questions or representations which have been received from members of the public.


(2)        Deputations and Petitions


            To receive any deputations or petitions which have been received from members of the public.


RESOLVED – That it be noted that no questions, representations, deputations or petitions have been received in respect of this meeting.


Reconfiguration of South Lakeland House and Kendal Town Hall pdf icon PDF 127 KB

To consider approval for the remodelling and reconfiguration of South Lakeland House to ensure effective and efficient use of the space and full utilisation of Kendal Town Hall.

Additional documents:




The Deputy Leader and Housing, People and Innovation Portfolio Holder reported that South Lakeland District Council was currently undertaking a major programme of change and transformation through the Customer Connect Programme, recognising the need to adopt different ways of working to engage with its many customers and residents.  Underpinning the transformation would be the adoption of changes in technology, allowing both staff and customers the ability to engage in ways not currently possible.  The Customer Connect Programme would result in changes to the way the Council engaged with its customers, with more activities being moved to self-help and online channels.  It was felt that a new refurbished, agile and flexible working space would benefit the Council and support the Customer Connect Programme.


In 2016-2018, South Lakeland District Council (SLDC) had undertaken a joint feasibility with Cumbria County Council and the Lake District National Park Authority to investigate the potential of a new Public Sector Hub on the County Hall site in Kendal.  As part of this work, SLDC had reviewed its anticipated floor space requirements following the implementation of Customer Connect and considered the introduction of agile working policies and of new digital technology to support service delivery in line with the new Customer Connect Programme.


Alongside this feasibility, SLDC had undertaken a high level assessment of the potential to invest in the renovation of South Lakeland House (SLH) and Kendal Town Hall (KTH).  With a smaller floor space requirement for SLDC than currently used, the assessment included the potential to create renovated office space which could be attractive to the market and which could generate an income for the Council.  The assessment had also been based on the idea of creating a new customer service reception area in the Town Hall, with the Town Hall being a major asset for the Town and more readily accessible for the public.  The findings of this study had indicated that there was scope to improve the space utilisation at both SLH and KTH, with subsequent opportunities to lease out vacated space to third party tenants, or increase the range of function rooms for events within the Town Hall.  This study had determined that, with appropriate design, it would be possible to accommodate the full SLDC requirements for workstations on the first floor of SLH, which would be more directly linked to the main KTH ground floor, which would provide the new main reception and customer meeting space.


After having received detailed financial information (including possible costs associated for occupation) for, and completing the initial feasibility of the Public Sector Hub, and taking into account the residual liabilities associated with the South Lakeland House site, the Council had withdrawn from further feasibility work on the Public Sector Hub to concentrate on a detailed feasibility study for SLH and KTH, building on the high level assessment undertaken.


In April 2018, SLDC had commissioned Lambert Smith Hampton and Blue-sky Interior Designers Ltd to produce concept and developed design options, up to RIBA Stage 3  ...  view the full minutes text for item CEX/82


Waste and Recycling Collection Policy pdf icon PDF 166 KB

To consider approval of the Waste and Recycling Collection Policy.

Additional documents:




The Environment Portfolio Holder introduced the report, informing Members that the Waste and Recycling Collection Policy set out rules and standards to provide clarity for residents about how the new waste and recycling collection system would be operated and what responsibilities they and the Council had.  In addition, the policy sought to minimise the number of complaints and disputes arising from residents.  Members would also have clear recourse to Council Policy when answering queries from residents on the Waste and Recycling Collection Service.


The Policy covered assisted collections, side waste, presentation of receptacles for emptying and collection, service to rural properties, bin replacement and repair, additional waste and recycling bins, enforcement procedures, services to charities and community organisations and clinical waste.


Under Section 45(1) of the Environmental Protection Act 1990, the authority had a duty to collect household waste except where it was situated at a place which in the opinion of the authority was so isolated or inaccessible that the cost of collecting it would be unreasonably high and adequate alternative arrangements could be made or had been made for its collection.  Section 46(4)(b) gave the authority the power to require waste receptacles to be located so as to facilitate the emptying of them.  The Policy was intended to provide clarity for residents.  This was especially pertinent to certain property types, such as remote areas or areas with long private drives.


An audit of residual waste which had been undertaken in October 2018 indicated relatively high levels of ‘side waste’ presented with grey bins (10%).  This Policy sought to address this by proposing a closed lid policy and educating householders to actively participate fully in waste minimisation and recycling of waste.  A sample of side waste had been tested and found to be at least 75% recyclable material.


Garden waste tonnages declined in winter months and, currently, the Council suspended Green Waste collections for up to six weeks, diverting resources to collect residual waste.  The Policy proposed a period of suspension for up to ten weeks each winter for garden waste collections and a continuation of fortnightly residual waste collections to allow allocation of resources to other key services like recycling collections, training and verge litter picking.  This proposed suspension was likely to result in a very small reduction in the recycling credit received for recycled green waste that may otherwise have been collected over this time.  It was not possible to quantify precisely what the reduction might be but it was considered to be minimal.


The proposal would, however, create greater efficiencies that would outweigh any loss that might arise, as detailed below:-


·         there would be savings and efficiencies as staff would not be required to attend work over weekends to complete health and safety and other training;

·         there would also be savings of 18,000 litres of fuel (based upon ten weeks) from usage alone, as the vehicles would not be used for green waste collections; and

·         the Council was also required to carry out  ...  view the full minutes text for item CEX/83


Review of the Local Council Tax Reduction Scheme pdf icon PDF 204 KB

To consider renewing South Lakeland District Council’s Council Tax Reduction Scheme for 2019/20.




The Finance Portfolio Holder presented a report, informing Members that the Local Government Finance Act 2012 (as amended) now required Local Authorities to approve their Council Tax Reduction Scheme on an Annual Basis by the 11 March for the following financial year (was previously 31st January).


On 18 December 2012 (Minute C/70 refers), Full Council had resolved to adopt the Default Scheme as prescribed by the Secretary of State as the Council’s Local Council Tax Reduction Scheme to replace Council Tax Benefit from 1 April 2013, with the costs of the Scheme to be funded by reducing Council Tax discount on second homes from 10% to 0%.  The local arrangements for fully disregarding War widows’ pensions, war disablement pensions and Armed Forces Compensation payments were to remain in the calculation of income for the Scheme.


Central Government had previously paid 100% grant to Local authorities under the national scheme, but on the transfer of responsibility, the grant had been reduced to 90%.  South Lakeland District Council, with the support of Cumbria County Council and the Cumbria Police Authority, had met the cost of the 10% grant reduction, about £560,000, by making technical changes to Council Tax.  This had included removing the discount on second homes, introducing a 100% Council Tax on properties unoccupied over six months and a 50% premium on properties empty for over two years.


On 17 December 2013 (Minute C/65 refers), Full Council had resolved that the Local Council Tax Reduction Scheme for 2014/2015 would remain unchanged, subject to the annual uprating of applicable amounts, premiums, etc., in accordance with either the Housing Benefit Scheme Regulations or the Local Council Tax Reduction Prescribed Scheme for pensioners.


Minute C/65 of Full Council on 17 December 2013 had resolved that the next review of the scheme be undertaken in July 2014.  A review had been undertaken on 15 July 2014 by the Overview and Scrutiny Committee which had recommended that the existing scheme which mirrored the previous Council Tax Benefit Scheme was the most appropriate for this Council.


On 19 December 2017 (Minute C/64 refers), Full Council had resolved to maintain the existing Scheme for 2018/19 after having undertaken a comprehensive review of the Scheme during 2014/15.


The Council’s Scheme would still not reflect the changes which had been announced in the Budgets of July 2015 or March 2016, which would adversely affect some of South Lakeland’s residents’ entitlements to support, namely:-


·         removal of Family Premium for new claims;

·         reduction of backdating period from six months to one month;

·         freezing of applicable amounts within Housing Benefit until 2020/21;

·         withdrawal of Council Tax Reduction where a person leaves the Great Britain for four weeks or more;

·         limiting the number of dependants’ additions to a maximum of two (this will apply to all Housing Benefit cases with effect from 1 April 2017);

·         removal of the Employment and Support Allowance Work Related Activity Component; and

·         phasing in of European migrants access to benefits.


As it stood, the implications and the impact  ...  view the full minutes text for item CEX/84


Council Policy on Climate Change pdf icon PDF 156 KB

To consider the corporate Council Policy on Climate Change.

Additional documents:




The Deputy Leader and Housing, People and Innovation Portfolio Holder reported that, as part of the work of the Green Team, a corporate Council Policy on Climate Change as detailed in Appendix 3 to the report, had been drafted.


The Policy represented a public recognition of the importance of Climate Change, an awareness of the economic and other opportunities offered by both tackling and adapting to meet the challenge of climate change and a series of ways in which the Council could reflect the importance of climate change, both in how it managed itself and how it worked with partners at the local, regional and national level.


The Policy set out the following Council commitments:-


·         Work with central government, county and neighbouring councils, national park authorities and other stakeholders, to contribute, at a local level, to the delivery of the target for carbon dioxide reduction set out in the UK Carbon budget by 2022 and other local and regional carbon reduction targets.

·         Participate in local and regional networks for support.

·         Develop plans and support projects with our partners and local communities to progressively address the causes and the impacts of climate change, according to our local priorities, securing maximum benefit for our communities.

·         Publicly declare, within appropriate plans and strategies, the commitment to achieve a reduction of greenhouse gas emissions from our own authority's operations, especially energy sourcing and use, travel and transport, waste production and disposal and the purchasing of goods and services.

·         Assess the risk associated with climate change and the implications for our services and our communities of climate change impacts and adapt accordingly.

·         Encourage all sectors in our local community to take the opportunity to adapt to the impacts of climate change, to reduce their own greenhouse gas emissions and to make public their commitment to action.

·         Monitor the progress of our plans against the actions needed and publish the result.

·         Work with others to mitigate greenhouse gas emissions and adapt to climate change.


The Portfolio Holder hoped all Members would be content to endorse the Policy and lead the way forward.


Members acknowledged a need for collaborative working, to recognise the wider implications and their responsibility to engaged and lead the way with colleagues and local communities.


The Leader and Promoting South Lakeland Portfolio Holder thanked the Environment Portfolio Holder for her leadership with regard to Climate Change.  He stressed the fact that predictions were becoming ever more dramatic and drew attention to the role that local authorities had to play in terms of their own estate and influencing others.




RESOLVED – That the corporate Council Policy on Climate Change be approved for recommendation to Council for adoption as part of the Council’s Policy Framework.


Reasons for Decision


The Council Policy on Climate change is a key strategic document for the organisation.  The Policy forms part of the overall Policy Framework.


Alternative Options Considered and Rejected


The alternative option is not to approve the Council policy on Climate Change as part of the  ...  view the full minutes text for item CEX/85


Council Plan Performance Monitoring Quarter 3 2018/19 pdf icon PDF 181 KB

To monitor progress against the measures of success as detailed within the Council Plan 2014-2019.

Additional documents:




The Leader and Promoting South Lakeland Portfolio Holder presented an update report on the progress with the Council Plan 2014-19 for Quarter 3 of 2018/19.  Monitoring the success of the Council Plan informed of improvements and ensured the Council services addressed the needs of residents in an open and transparent way.  The Council was committed to delivering high quality, cost effective services that met the needs of residents and improved quality of life.  The performance management process helped the Council to demonstrate how well it was doing


The Leader informed Members that the report highlighted that the Council was delivering on its targets for the delivery of affordable housing to rent.  He pointed out that the median household income in South Lakeland was £32,506.


The report also included the Council’s Strategic Risk Register and the Leader pointed out that these were all being carefully monitored and managed and did not pose concern.


Members were informed that the report had also been considered by the Overview and Scrutiny Committee at its meeting on 1 February 2019.




RESOLVED – That the following be approved:-


(1)        the summary of Performance, as detailed within the report; and


(2)        the detailed risks information contained within Appendix 1 to the report.


Reasons for Decision


The report links directly to the Council Plan commitment to ensure that the Council is equipped to provide the best, most cost-effective services.  Details regarding performance monitoring are published in line with the Council’s Performance Management Framework.


Alternative Options Considered and Rejected


None – the purpose of the report is to receive a performance update.


Community Grant Funding Review pdf icon PDF 172 KB

To consider the provision of financial support to key community organisations.

Additional documents:




Note – Councillor Janette Jenkinson declared a non-pecuniary interest in this item of business by virtue of the fact that she was a Director of Ulverston Community Enterprise.  She remained in the meeting during the discussion and voting on the item, although with no voting rights as a Member of the Shadow Cabinet.


The Culture and Leisure Portfolio Holder introduced the report.  Details of the current and proposed Community Grants budget allocation were presented in Appendix 2.  For the purposes of this report, the review was focussing primarily on Strategic Cultural Partners and Strategic Community Arts and Events as the current arrangements for funding expired on 31 March 2019.  Previously these arrangements had been for three and two years respectively.


On 15 March 2018, a Delegated Executive Decision (DED) by the Director of Policy and Resources had agreed to a one year extension of the Strategic Community Arts and Events grants payments, for the 2018/19 financial year.  The previous funding agreements had been due to expire on 31 March 2018.  The DED had also agreed to conduct a review of all Community Grants payments, with recommendations going to Cabinet for implementation commencing the 2019/20 financial year.


The community grants for Strategic Community Arts and Events had originally been awarded on 9 April 2015 by a DED for funding in the 2015/16 and 2016/17 financial years to contribute to the health and wellbeing of the community and to the outcomes of the Council Plan 2014-19.


On 31 March 2016 a DED had awarded funding to Strategic Cultural Partners for three years, from 2016/17 to 2018/19.  These organisations were of high importance to the District’s cultural offer, economy and environment, community health and wellbeing, and contribute to the delivery of Council Plan priorities.


Several Strategic Cultural Partners were National Portfolio Organisations (NPOs) with Arts Council England (ACE), currently receiving investment for four years (2018-22) - and were recognised as having significant national importance representing some of the best arts practice in the world.


The following proposals intended to set out a principle of maintaining levels of existing funding for community organisations, whilst making strategic investments in a number of key strategic cultural partners.  This would be in place of the current system where cultural organisations were recognised on different tiers - Strategic Cultural Partners, and Strategic Community Arts and Events.


Due to their local, national and, in some cases, international, cultural significance, it was proposed that the following organisations should be included in the list of Strategic Cultural Partners along with those already recognised:-


·         Kendal Mountain Festival

·         Lakes Arts Festivals Ltd (Lakes Comic Arts Festival), and

·         Lakes Alive.


It was proposed that Ulverston Community Enterprise (UCE) become a new Strategic Cultural Partner to assist in the development of a cultural programme at the Coronation Hall.  Kendal Torchlight Carnival and The Old Laundry Theatre were recommended to also be included to recognise their importance to the local community.


It was proposed that the following Strategic Cultural Partners, as described in Appendix 2  ...  view the full minutes text for item CEX/87


Council Plan pdf icon PDF 155 KB

To consider the draft Council Plan 2019 to 2024.

Additional documents:




The Council Plan set out the Council’s vision and priorities and formed part of a suite of corporate documents and linked closely with the Medium Term Financial Plan.  These documents formed part of the Council’s Policy Framework and underpinned the Council’s approach to governance and community leadership.  The current Council Plan was for the period 2014 to 2019, and had been updated on an annual basis since 2014.


Councillor Jonathan Brook, Deputy Leader and Housing, People and Innovation Portfolio Holder, presented a new draft Plan which was intended to run from 2019 to 2024.  In developing the Plan, the vision had been revised to add the words “working together” to reflect that the Council could not achieve its ambition alone, and that it worked with partners to deliver on its vision and ambitions.


The vision, as stated in the draft Council Plan, was, “Working together to make South Lakeland the best place to live, work and explore.”  To achieve the vision, the Council’s areas of focus were:-


·         creating an environment for people to thrive;

·         delivering excellent value-for-money, services;

·         playing a leading role and influencing others;

·         empowering customers and communities; and

·         forward thinking, innovative Council.


As with previous versions, the Council Plan retained the following values:-


·         Empowering People - By listening to our customers and our employees their ideas and comments will help us make improvements to customer service and workforce development.

·         Excellence - Seeking continuous improvement in what we do, ensuring that our actions address the needs of South Lakeland.

·         Open and Transparent - Being courteous, efficient and transparent in our dealings with the public.


The Council Plan set out the challenges and opportunities that the district faced in the short, medium and long term.  These were described in detail in Appendix 3 to the report.  In brief, the challenges and opportunities were:-


·         South Lakeland’s demography;

·         financial resilience;

·         affordable housing;

·         sustainability;

·         rise in obesity levels and inactivity;

·         access to better training and development; and

·         education and skills.


In order to meet the challenges and maximise opportunities, the Council Plan set out the delivery of the vision by:-


·         working across boundaries to deliver to communities;

·         creates the right balance across different age groups;

·         reduces inequalities so that no one is left behind; and

·         creates a sustainable and inclusive economy.


In addition to the Council Plan, an Executive Summary, detailed at Appendix 4 to the report, had been developed.  This document stated the high level priorities across the cross-cutting themes to deliver the overall strategic aims of the Council.


Developing a sustainable and inclusive economy was a key element of the new Council Plan.  This reflected growing awareness of the importance of Climate Change and the Council’s role in tackling it.


In line with the Performance Management Framework, the Council Plan Performance Monitoring reports detailed measures of success against the priorities within the Council Plan.  These were reported quarterly to the Overview and Scrutiny Committee.  Monitoring the success of the Council Plan through scorecards informed improvements and ensured Council services address  ...  view the full minutes text for item CEX/88


Corporate Financial Monitoring Quarter 3 2018/19 pdf icon PDF 222 KB

To note the projected year end position based on performance to the end of Quarter 3 2018/19 and to consider requesting Council to approve the budget changes to increase the income and expenditure budgets as outlined in paragraph 3.5.1 of the report.

Additional documents:




The Finance Portfolio Holder presented the third quarter financial monitoring report of 2018/19.  The report provided an update on how the financial situation was progressing during this year.  In part, it was backward looking, highlighting the Council’s expenditure and income during the first nine months of the financial year, but also including the Council’s current projections of expenditure during the rest of the year.


The Portfolio Holder provided details relating to the revenue budget, capital expenditure, collection of Council Tax and business rates and the Council’s current position with regard to debt collection, details of which were contained within the report and appendices.


Appendix 1 set out the revenue variances to date.  Overall, at the end of Quarter 3, budget monitoring had identified a forecast year-end underspend of £260,000.  In addition, there were projected to be £273,000 of carry-forward requests.  Trends identified in these budget monitoring results had been fed into the 2019/20 budget setting process.


Appendix 2 set out the position on the Capital Programme. The capital budget at Quarter 2 2018/19 had stood at £9.795m. Carry-forwards to 2019/20 of £1.557m relating to the ERDF Flood Alleviation scheme and £300,000 relating to the Cross-a-Moor junction and an increase to the Millerground Play scheme of £12,000 due to additional funding had been approved by Council on 18 December 2018 as part of the updated Capital Programme submitted with the 2019/20 Draft Budget.  This resulted in a 2018/19 Capital Programme of £7.950m at the end of Quarter 3.  Expenditure against this Programme to the end of Quarter 3 had been £3.205m.  There was anticipated to be significant expenditure during Quarter 4 and £0.458m of further re-profiling had been identified.  A revised Programme was presented as part of the budget process, including any new schemes prioritised against the available funding.


Appendix 3 provided an update on Treasury Management for the quarter.  There was one issue to report in terms of compliance with the approved Treasury Management Strategy relating to counterparty limits which had arisen as a result of an administrative error, as detailed within the report.  Investments had performed better than the relevant benchmarks except in relation to long-term core investments due to the change in interest rates.  No repayment of existing borrowing or new borrowing was anticipated up to the end of the financial year.


As part of the 2018/19 Budget Setting process, Council had agreed the removal of budgets in relation to the Social Lettings scheme, as Government had announced an end to the initiative.  Subsequently, a reversal of Government policy had led to the Council continuing to provide this service.  No budgets existed for this service, but the Council continued to incur expenditure and receive income in the form of Housing Benefit to cover the costs of lettings.  It was, therefore, necessary to establish interim budgets for the remainder of 2018/19 to ensure proper authority to incur expenditure was in place.  Therefore Cabinet was being asked to request that Council approve the creation of a £140,000 expenditure budget  ...  view the full minutes text for item CEX/89


2019/20 Procurement Strategy and Procurement Schedule pdf icon PDF 86 KB

To consider the updated Sustainable Procurement and Commissioning Strategy and the Procurement Schedule for 2019/20.

Additional documents:




The Finance Portfolio Holder, reported that the Council’s three-year Sustainable Procurement and Commissioning Strategy had been approved in 2016.  During 2019, an exercise would be carried out to review the document to ensure that it met the Council’s needs in the future under the Customer Connect model.  During 2018, the Local Government Association had published an updated National Procurement Strategy.  Many of the proposals in this national strategy were already reflected in the Council’s Strategy, but some minor changes were proposed around strategic contact management, supplier engagement and social value.  References to legislation and the Council Plan had also been updated. Appendix 1 to the report updated the Council’s existing Strategy to reflect these changes.


Since April 2016, the Council’s Constitution had permitted officers to conduct and conclude the contracting processes without further approval, providing it was in line with the Procurement Schedule, to be approved by Council at least annually.  Where a procurement process was over budget, then approval would still be required in accordance with the Financial Procedure Rules.  Where an officer sought approval for a waiver or exemption under the Contract Procedure Rules, this was also included in the Procurement Schedule.


The Procurement Schedule for 2019/20 was attached at Appendix 2 to the report.  There were 78 procurement projects identified, which was slightly lower than the 83 procurement exercises originally approved for 2018/19.


The report had also been considered by the Overview and Scrutiny Committee on 1 February 2019.




RESOLVED – That Council be recommended to approve the following:-


(1)        the updated Sustainable Procurement and Commissioning Strategy attached at Appendix 1 to the report; and


(2)        the Procurement Schedule for 2019/20 attached at Appendix 2 to the report.


Reasons for Decision


It is expected that Council will ensure Value for Money in the provision of services and improve the efficiency of its procurement activities through the approval of the procurement exercises proposed for 2019/20 and the updates proposed to the Procurement Strategy.


Alternative Options Considered and Rejected


Council could decide not to approve all or part of the Procurement Schedule.  This would mean that separate acceptance reports may be required for all or specific tenders.


Treasury Management and Capital Strategies 2019/20 - 2023/24 pdf icon PDF 102 KB

To consider the Treasury Management Strategy and Capital Strategy for 2019/20 – 2023/24 and the authorised borrowing limits.

Additional documents:




The Finance Portfolio Holder, presented a report setting out the Council’s Treasury Management Strategy and Capital Strategy for 2019/20 – 2023/24. The Strategies had been updated to reflect the 2019/20 Budget and Capital Programme.


The framework fulfilled five key legislative requirements relating to the setting of prudential indicators, the Council’s Minimum Revenue Provision (MRP) Policy, the Treasury Management Strategy Statement the Investment Strategy and the Capital Strategy, details of which were provided.


The report reflected the budget proposals which had been approved for consultation by Council on 18 December 2018.


The Treasury Management Strategy was based on the proposed Capital Programme for 2018/19 – 2023/24 as considered by Council on 18 December 2018.


The Capital Strategy included potential capital expenditure not currently in the proposed Programme and arising from the review of Council Assets.  The resulting indicators in the Capital Strategy were, therefore, higher as it included potential expenditure and borrowing which might not arise, depending on future decisions around service delivery.  The Capital Strategy would assist in ensuring that the Council had funds available in the future to meet future opportunities which might arise.  It also considered organisational issues, including how the Capital Programme would be prioritised and considerations, including capacity to deliver.  Councillor Jarvis drew attention to an error within Section 5 of the Capital Strategy under paragraph 5.2 where the figure earned by the Council in relation to its 23 investment properties should read £0.464m and not £0.325m.


The Strategies ensured that the Council had robust arrangements for investing and that it only borrowed where it was appropriate and affordable.


The report had also been considered by the Overview and Scrutiny Committee on 11 January 2019.


The Portfolio Holder pointed out that publication of this Capital Strategy in such detail improved the transparency of the Council and he hoped that it provided reassurance that the Council continued to operate in a prudent and professional manner.




RESOLVED – That the Treasury Management and Capital Strategies and the authorised borrowing limits within the report be noted and recommended to Council for approval.


Reasons for Decision


These arrangements enable the priorities of the Council Plan to be achieved.  The Strategies ensure that the Council has robust arrangements for investing and that it only borrows where it is appropriate and affordable.


Alternative Options Considered and Rejected


No alternative options are proposed.  The Treasury Management Framework is driven largely by legislation and external guidance and reflects the 2018/20 budget.


2019/20 to 2023/24 Draft Budget pdf icon PDF 211 KB

To consider the draft budget proposals for the financial years 2019/20 to 2022/23.

Additional documents:




The Finance Portfolio Holder presented the latest 2019/20 Five Year Draft Budget.  Following the multiyear settlement for 2016/17 to 2019/20, there had been relatively few budget changes arising from the provisional Local Government Finance Settlement.  A balanced budget for 2019/20 was presented, including an increase in the Band D Council tax of £5.


The Portfolio Holder highlighted the main changes which had arisen since consideration of the budget on 18 December 2018, namely:-


·         additions to the Capital Programme:-


o   South Lakeland House/Kendal Town Hall - £4.7m plus £200,000 in revenue; and

o   Windermere Road Car Park Grange - £100,000;


·         reprofiling of £458,000 of capital expenditure to 2019/20 and additional ERDF grant (and expenditure) of £670,000 and DRF grant of £132,000 (no change in expenditure);


·         inclusion of Council Tax Collection Fund surplus of £42,200 – mainly due to increase in empty properties and loss of new-build to holiday lets;


·         updated interest payable and receivable calculations – to reflect that the Council was unlikely to borrow at 31 March 2018 but that there might be an increased need to borrow to fund the Capital Programme in future years; and


·         inclusion of additional one-off grants from the provisional local government finance settlement.


Overall, these changes had resulted in a movement from a need to use £120,000 of reserves to balance the general fund next year to a small contribution to reserves of £51,400.


The report included a summary position.  The Medium Term Financial Plan provided a summary five year annual position which included a projection of the overall surplus or deficit on the General Fund Revenue Budget.  The assumptions and financial implications were kept constantly under review as circumstances changed.  A summary of the know changes at this stage was provided at Table 1 of the report, with a more detailed analysis of expenditure and income at Appendix 2a to the report.  Table 1 set out the summarised estimated annual General Fund Budget requirement across the review period, including the projected deficits.  It also showed the savings identified and where the budgets had been reduced.


The projected annual revenue deficit totalled circa £800,000 in 2020/21 rising to circa £2.7m by 2023/24.  This position was after the inclusion of Customer Connect savings of £740,000k in 2019/20 and £1.550m from 2020/21 onwards.  These annual projections were based on information available at the time of preparation of the report, along with the broad set of assumptions detailed in paragraph 3.9 of the report.


Work was underway to resolve the projected deficits.  Future year estimates would be kept under review as part of the Medium Term Financial Plan process to ensure that savings plans were sufficient to set balanced budgets.


The July Medium Term Financial Plan had included £500,000 of unallocated growth which had now been removed.  The Council had a statutory duty to set a balanced budget.  Any additional budget pressures or discretionary, fixed term growth items would need to be funded by savings in existing budgets.


Significant savings would be required from 2020/21 onwards  ...  view the full minutes text for item CEX/92


Cabinet Appointments/Representation on Outside Bodies 2018/19

Further to discussion at the meeting of the Cabinet held on 23 January 2019, to consider the appointment of a Member representative on the Appleby Fair Multi-Agency Strategic Co-ordinating Group.




Further to CEX/8 and, more recently, CEX/74 (2018/19) when a decision was deferred in order for further discussion to take place, Cabinet was asked to consider the appointment of a Member representative on the Appleby Fair Multi-Agency Strategic Co-ordinating Group for the remainder of the year.


The Leader and Promoting South Lakeland Portfolio Holder informed Members that considerable time had been spent colleagues in discussing the matter.  The conclusion which had been reached was that, due to the sensitive nature and importance of the issue, it was felt necessary for the views of the administration to be taken into consideration by the Co-ordinating Group, and he, therefore proposed that Councillor Ian Mitchell should act as the Council’s representative.


In response to a comment, the Leader and Promoting South Lakeland Portfolio Holder advised that Councillor Mitchell had indicated that he would be available to attend the meetings of the Co-ordination Group.




RESOLVED – That Councillor Ian Mitchell be appointed as the Council’s representative on the Appleby Fair Multi-Agency Strategic Co-ordinating Group.


Reasons for Decision


Appointments to outside bodies assist in the delivery of the Council Plan through partnership working.


Alternative Options Considered and Rejected


Not to make appointments, which could affect the Council’s ability to influence partners on important strategic issues.