Meeting documents

• (Attachment: 1)Minutes

RESOLVED that the minutes of the meeting held on 14 September 2017 be approved as a correct record and signed.

Non-Executive Members: Councillors J. Ellacott and D. Pay

None

• (Attachment: 2)4. Treasury Management Mid Year Performance (104K/bytes)

Councillor T. Schofield, Executive Member for Finance reported on the treasury management performance for the first half of the financial year. The report covered treasury management performance up to Period 6, which showed that the overall projected outturn was on budget.

The report also provided an update on the Investment Strategy, Borrowing Strategy, and Cash Management Strategy. The Executive noted that no changes were proposed to any of these strategies.

It was noted that from the Prudential Indicators that the Capital Programme and the Capital Financing requirement had been updated to take account of carry forwards and other proposed changes (the details of which were set out in the report under the Service and Financial Planning 2018/19 item) and the Borrowing Limits were unchanged from when the current Strategy had been adopted earlier in the year.

The Executive also received an update on the Economic Conditions and Expected Movements in Interest Rates provided by the Council’s advisors, Capita Asset Services.

Councillor T. Schofield, Executive Member for Finance summarised the position by indicating that overall the Council’s treasury management activity was, for the first half of the year, on track to meet its projected outcomes.

RECOMMENDED that the Treasury Management Performance for the year to date and the prudential indicators be noted.

Reasons for decision:
To comply with the requirements of the regulatory framework for treasury management and meet the Council’s reporting requirements.

Alternative options:
Accept the report, but ask Officers to provide more detail on some specific issues contained in the report.

• (Attachment: 3)5. Service and Financial Planning report (269K/bytes)

Councillor T. Schofield, Executive Member for Finance presented a report that set out the national and regional context within which the Council was managing its service and financial planning arrangements, including the provisional budget proposals for 2018/19.

Councillor Schofield indicated that the Council had a strong and focussed service and financial planning process in place, between Members and Officers that allowed issues, opportunities and challenges to be discussed so that the Council could change and adapt accordingly.

Councillor Schofield emphasised that the Service & Financial Planning process ensured that the Council operated in a financially sustainable way, to deliver on the services and priorities as described in the Council’s Five Year Plan. The Local Government Association Peer Challenge had recognised that the Council was in a strong financial position and that the Council’s finances were managed prudently.

The Executive noted the continuing challenges faced including the removal of revenue support grant from the Government requiring greater self sufficiency for the budget including either savings or new income streams to balance the budget.

The Executive received the growth and savings proposed that had been based on a comprehensive review and had taken account of the changing national and local economic and policy context outlined in the report.

Income and cost savings of £1.93m had been identified. This included cost savings as a result of service efficiencies and new income streams. Growth of £1.3m had been identified to deliver further service improvements and to ensure that the Council operated efficiently and effectively. It was noted that a substantial proportion of the growth had been to cover the loss of income to the Council as a result of Surrey County Council cuts. This was an area of continued negotiation with the County Council to protect the interests of residents and businesses. Overall net savings of £625,000 had been identified.

The Executive also received the capital programme that explained how the Council’s investments were being managed to ensure the delivery of high quality services. In particular there would be a continued focus on the regeneration priorities and community and leisure provision.

The Executive Member indicated that the Council continued to offer excellent value for its residents. The average household was paying just £4.12 per week to the Borough Council in Council Tax. For 2018/19 this was anticipated to rise at a level below inflation and amounting to less than 10 pence per week rise (band D Council Tax Bill) for the continued provision of the vast range of Council services offered.

Over the coming months further work would be undertaken to test and refine the Service and Financial planning proposals including consultation with the Overview and Scrutiny Committee through its Budget Scrutiny Panel with the final budget proposals being brought back to the Executive in January 2018.

Following the clarification of points raised by Members in relation to services affected by proposals from Surrey County Council and the Government it was

RESOLVED that:

(i) the national and local service context be noted;
(ii) the service proposals set out in this report, which seek to respond to this context and deliver our Five Year Plan, be endorsed;
(iii) the draft 3 year business plans 2018/19 – 2020/21 be approved, and the Head of Corporate Policy & Performance be authorised to finalise these plans, in consultation with the relevant Portfolio Holder;
(iv) the Head of Corporate Policy & Performance be authorised, in consultation with the Leader of the Council and Head of Finance, to make any necessary changes to the Corporate Business Plan arising from the service and financial planning changes agreed for 2018/19;
(v) the following proposed budget changes and financial planning be approved for consultation under the Council’s budget and policy framework:
      a) Medium Term Financial Plan for 2018/19-2022/23 (Annex 1)
      b) Savings totalling £1.93 m (Annex 2)
      c) Growth totalling £1.30 m (Annex 3)
      d) Updated Capital Programme (Annex 4)
 

Reasons for decision:
To ensure that the Council continued to plan and manage its resources well, deliver high standards of service and meet the aims and objectives of the Council’s adopted Five Year Plan.

Alternative options:
• Only approve some of the proposed budget and financial planning changes set out within the report, for consultation under the terms of the Constitution.
• Reject the proposed budget and financial planning changes set out within the report, and request that further work be undertaken to develop new proposals for consultation under the terms of the Constitution.
 

• (Attachment: 4)6. Council Tax Scheme (61K/bytes)

Councillor A. Horwood, Executive Member for Community Support informed the Executive that local authorities were required to introduce a local Council Tax reduction scheme each year to replace the national Council Tax Benefit scheme. The scheme affected residents of working age and receiving benefits, or on low levels of income or earnings. The initial scheme established in 2013/14 was continued into 2017/18 and the proposal was to extend it for a sixth year.

The Executive noted that the government funded around 90% of the Council Tax Support cost, with the remainder shared between the Council, Surrey County Council and Surrey Police.

It was noted that the scheme currently provided support to those who need it, but sought a contribution from most residents towards their Council Tax and for using services within the borough. Important elements of the scheme were to ensure that residents did not lose out on support when they entered work and to ensure that disabled residents or those providing care were protected from any reduction in the support they received.

The scheme included a cost of living increase for households in line with those increases applied to the National Housing Benefit Scheme. It was noted that currently some allowances were subject to zero increases and that it was proposed that this would be reflected in the local scheme.

It was also recognised that there would be instances where households were genuinely unable to pay their Council Tax, and these households would be able to receive a further discretionary reduction in their Council Tax under the legislation.

Following a Member question it was clarified that the reduction to the limit of capital or savings held by households before they could receive support had been a feature of the Scheme since 2013 and that it did not apply to pensioners.

RECOMMENDED that the local Council Tax Reduction Scheme for 2018/19, as outlined in the report, be adopted.

RESOLVED that the Council Tax Reduction Scheme, being recommended, be noted as a continuation of the Scheme introduced in 2013/14 with some changes to reflect increases in the cost of living in line with other benefits and allowances.

Reasons for decision:

The initial local scheme was introduced from 2013/14 and had been effective in reducing the level of support awarded whilst ensuring that those residents who were most vulnerable were not penalised unfairly.

Those residents who were disabled or provided care for other disabled people were exempt from any reductions in their support compared to the former national scheme, and would receive maximum support based on the Council Tax Benefit scheme which was abolished in 2013.

Council Tax collection rates from residents receiving support had been positive, and processes were in place to recover arrears from residents who choose not to pay.

 
Alternative options:

To further reduce the level of support or to adopt the criteria of the former Council Tax Benefit scheme and increase the level of support payable.

• (Attachment: 5)Annex A DMP (8M/bytes)
• | (Attachment: 6)Annex B Proposals maps (15M/bytes)
• | (Attachment: 7)Annex C DMP Consultation Statement (10M/bytes)
• | (Attachment: 8)Annex D SA Report Reg 19 Oct 2017 (15M/bytes)
• | (Attachment: 9)Annex E Evidence (71K/bytes)
• | (Attachment: 10)7. Development Management Plan (132K/bytes)

Councillor K. Foreman, Executive Member for Planning Policy introduced the report before the Executive on the next stages of progressing the Development Management Plan (DMP), a vital part of the Council’s corporate policy framework.

The Executive Member explained that the Plan proposed when and where the development levels, agreed in the Core Strategy, would be provided and included new “fit-for-purpose” policies to assist in determining planning applications.

It was noted that over 1100 local people and organisations made representations on the Regulation 18 consultation which helped to inform the draft DMP “Regulation 19” consultation and submission document. The work to prepare this document had been the subject of lots of hard work by Members and Officers and the Executive Member paid tribute to their efforts in delivering the Plan to this stage.

The Regulations required that when a draft Local Plan was prepared statutory “Regulation 19” consultation follows from the previous consultation before being submitted to the Secretary of State for public examination. The Executive Member emphasised that the DMP sought to get the right balance of need for the Borough as a whole.

This meant that the wider needs of residents and businesses (both for the current and future generations) were important aspects to take into account. This was also balanced with the need to protect the local character and quality of life.

Councillor Foreman indicated that the proposed policies and the Plan’s site allocations put the Borough in the best possible position to control when and where development should happen, and what it looked like. As a result the Plan proposals had been based on comprehensive, in-depth and robust technical assessment having taken account of the views of residents, external partners and elected members. This evidence based approach to plan development was acknowledged by the Executive Member as a robust and strong approach, noting though, for clarification, an amendment to recommendation (i) that should have referred to ‘published’ evidence.

Being plan-led put the Council in the best possible position to manage the development pressures faced and secure the infrastructure that was needed. This clarity would provide residents, businesses and other stakeholders with the confidence about where growth was planned to happen.

It was acknowledged that national policy changes were likely to be brought in before the Plan examination process was concluded, however many of these had been anticipated; and the planned submission date would ensure that it was possible to benefit from proposed transitional periods.

The next steps of the process would be for Full Council in December to consider agreeing to consult on the draft plan, and then to submit it to the Secretary of State along with the consultation responses received. The public consultation would then commence in early January for six weeks. A communications plan had been prepared to support this consultation. Following submission of the plan to the Secretary of State, an Inspector would be appointed, with the examination anticipated to take place in the summer of 2018.

The Executive Member responded to questions on the following points:
   • Urban extensions and the number of dwellings proposed;
   • Redhill Aerodrome as a safeguarded site for development; and
   • Development of a Supplementary Planning Document in relation to parking standards and affordable housing.

RECOMMENDED that:

(i) the Draft Reigate and Banstead Development Management Plan (DMP) (Annex A) and Policies Map (Annex B) be endorsed as sound and approved for publication and consultation as the “Regulation 19” submission document;

(ii) the Head of Places and Planning be authorised, in consultation with the Executive Member for Planning Policy, to submit the Draft Development Management Plan and Policies Map to the Secretary of State for Communities and Local Government under the Planning and Compulsory Purchase Act 2004 Section 20; and

(iii) the Head of Places and Planning be authorised, in consultation with the Executive Member for Planning Policy, to submit the representations received and duly made in accordance with Regulations, to the Secretary of State together with a Summary of the Issues.

RESOLVED that:

(i) the published Evidence Base, Sustainability Appraisal and Consultation Statement in support of the  Development Management Plan be noted and approved;
(ii) the Head of Places and Planning be authorised, in consultation with the Executive Member for Planning Policy, to make any necessary amendments or factual clarifications to the Draft Development Management Plan (Annex A) and Policies Map (Annex B) and any necessary additions and amendments to the Evidence Base, and associated documents, as required to support the “Regulation 19” process as set out in the Town and Country Planning (Local Planning) (England) Regulations 2012; and
(iii) the content of this report be endorsed to ensure that Reigate & Banstead Borough Council continued to be a plan-led authority.

Reasons for decision:

The DMP, and accompanying Policies Map, was based on up to date and relevant evidence from which the Plan policies and proposals can be demonstrated to be derived and to be current, well-formed and robust and had been subject to Sustainability Appraisal and informed by consultation including the Regulation 18 Consultation 2016.

To enable the representation period to commence in a timely manner.

To allow Members of the public and other bodies to see, and therefore either support or record their objection, which would be considered at examination by the Inspector, to what the Council considered to be the most appropriate and sound planning policies and proposals including allocations being advanced to meet the issues and needs identified in the Core Strategy and DMP and previously consulted upon at the earlier Regulation 18 stage.

Undertaking Regulation 19 consultation would allow the Development Management Plan preparation process to be progressed in line with the agreed timetable set out in the adopted Local Development Scheme, and would enable representations to be made on the draft Development Management Plan and Polices Map to be submitted together with the draft DMP and Policies Map to the Planning Inspectorate for examination in accordance with the statutory provisions.

As required by the Regulations and Good Practice Guidance from the Secretary of State.
To reiterate the Council’s commitment to advancing the preparation of the Development Management Plan and to provide certainty for stakeholders and local residents in relation to future development in the borough.

Alternative options:

Do not approve the published Evidence Base and other documents or delegated arrangements. Do not recommend to Council the DMP and Policies Map were sound for publishing; submission or to provide delegated arrangements for the submission of Regulation 19 submission. Do not confirm any commitment for the Council to be a plan-led authority.

• (Attachment: 11)8. Cromwell Rd appropriation (240K/bytes)

Councillor N. Bramhall, Executive Member for Property and Acquisitions reported that the Executive had agreed, on the 20th April 2017, to progress the redevelopment of Council owned premises at 16-46 Cromwell Road in Redhill.

Further work had continued to progress the proposed development options to enable regeneration of the site to provide modern and fit for purpose retail and residential accommodation.

The site consisted of mixed use retail and residential units. The residential accommodation was not in a habitable condition and the retail units’ configuration and size did not meet current retailer requirements. The site was considered, in its current form, to be unsuitable for re-letting.

The site had been held by the Council for unspecified purposes, but it was assumed to have been originally acquired to meet housing requirements. The Executive noted that the land must be appropriated, for planning purposes, before it could be sold or developed.

Appropriation for planning purposes had the added benefit of engaging the provisions of S203 of the Housing and Planning Act 2016, which override third party interests in land and converted them to a compensatable sum. It was considered that the requirements to justify appropriation had been met and the land in question was no longer viable for the purposes for which it was held at present.

The proposed appropriation of the land had been subject to consultation and no objections had been received to the proposal.

RESOLVED that with immediate effect the land at the site known as 16-46 Cromwell Road, Redhill (which assumed to have originally been purchased for housing purposes, although this was not formally recorded) be appropriated for Planning Purposes (mixed use retail and residential development), under Section 122 of the Local Government Act 1972, in connection with the proposed development and regeneration of Redhill. The land was shown for identification purposes only edged red on the plan attached to the report presented.

Reasons for decision:

To enable this site within Redhill, one of the principal regeneration areas in the Borough, to be developed as part of the wider regeneration proposals for the area.

Alternative options:

Not to appropriate the land under S122 of the LGA 1972.

• (Attachment: 12)9. Conversion of Guest House Massetts Road, Horley (73K/bytes)

Councillor R. Renton, Executive Member for Housing and Infrastructure introduced the report on the conversion of a guest house into emergency accommodation at Massetts Road, Horley. It was noted that this was the subject of a report to the Executive in November 2016 when it had agreed to purchase the property.

The Executive noted that this ambitious project would result in the reduction of the use and cost of out of borough bed and breakfast accommodation, saving the Council significant expenditure on this service. It also had the benefit of helping to keep homeless households in the borough; reduce the length of school commuting for children and allow households to maintain their support networks.

However, since acquiring the property in March 2017, a further design review had been undertaken. This resulted in identifying an increase in building scope with additional investment opportunities into the fabric of the building. It was anticipated that these improvements would reduce the need for capital and revenue spend in the medium to long term. The Executive was also requested to consider including a loft conversion into the scheme to provide additional rooms, which could be provided with minimal disruption at a later date.

A competitive tender exercise had been completed and the Executive was requested to consider approving the additional capital resource, from the ring fenced section 106 funds for affordable housing, to meet the costs which were detailed in the Part 2 exempt part of the Executive’s agenda. It was anticipated that this additional capital investment would provide on-going revenue savings while the rental income would be invested in the scheme’s operation.

RESOLVED that:

(i) the additional capital funding and scope of the project, as set out in paragraph 13 of the Exempt report in part 2 of the Executive’s agenda, be approved and sourced from the Section 106 fund to complete the project to convert the guest house into emergency accommodation at Massetts Road, Horley; and
(ii) the Head of People & Communities be authorised, in consultation with the Head of Property, Head of Finance, Head of Legal and Executive Members for Housing and Infrastructure, Property and Acquisitions and Finance to enter into a construction contract with the successful tenderer to complete the conversion of the guest house into emergency accommodation, subject to the project costs detailed in the report.

Reasons for decision:

To provide much needed emergency accommodation in the borough and reduce the use of expensive out of borough bed and breakfast accommodation saving around £170,000 per year subject to household sizes. It would also enable vulnerable families to remain in the borough thereby avoiding long commutes to school and the loss of support from statutory and non-statutory sources.

To provide further design improvements to the conversion of the property to maximise the investment to reduce the need for capital and revenue spend on repairs and component replacement in the medium to long term.

Additionally to enable a loft conversion that would provide additional rooms with minimal disruption at a later date if needed.

Alternative options:

To keep to the original budget approved in March 2017 without undertaking the additional improvements identified.
 

• (Attachment: 13)10. LATC Greensands Update (48K/bytes)

Councillor V.W. Broad presented the first interim progress report on the Council’s wholly owned subsidiary company Greensand Holdings. The Leader indicated that the shareholders were content with the progress of the Company.

The company had already acquired the first investment, which complied with the Company’s Business Plan. It was noted that the Directors of the Company continue to explore for further development opportunities in both regional and London property markets with on and off market introductions. The details of the Greensands Holdings progress report were set out in the Exempt part 2 of the Executive’s agenda.

RESOLVED that the Mid term report by Greensands Holdings Ltd (September 2017) be noted.

Reasons for decision: To ensure Councillors receive updates on company activities.

Alternative options: None.

• (Attachment: 14)Item 11 - Addendum: Recommendation of the Health and Wellbeing Executive Sub-Committee of 6 November 2017

Councillor V.W. Broad, Leader of the Council, reported on the meeting of the Executive Sub Committee for Health and Wellbeing, held on 6 November 2017 as presented in the Addendum to the Executive.

The Sub Committee received a Mid Term report on the operations of Pathway for Care and information that supported the progress being made by the Company against their Business Plan and projections for the future.

Members noted that the company had developed significant leads with a number of potential commissioners for Pathway for Care services, including West Sussex County Council. It was noted that those discussions had advanced to the stage that they were considering investing in the company and to take a share in the business.

In preparation for this Pathway for Care was investing to scale up its operations and deliver a higher volume of service. The Pathway Board had therefore identified the need for additional working capital investment to allow it to meet this increased volume.

The Sub Committee had therefore requested an increase in the loan facility between Pathway for Care and the Council from the previously approved limit as set out in the Exempt report to the Sub Committee. Additionally the Sub Committee has recommended a simplification of the procedures going forward by the introduction of a delegation to the Head of Finance to amend the Loan and Draw Down Agreement in future (within the approved ceiling).

RESOLVED that:

(i) the Section 151 Officer be authorised to increase the loan ceiling to Pathway for Care, as set out in the Exempt Part 2 section of the Health and Well Being Executive Sub Committee’s agenda; and
(ii) the Head of Finance (Section 151 Officer) be delegated authority, in consultation with the Head of Legal, to amend the Loan and Draw Down Agreement between the Council and Pathway for Care within the approved loan ceiling.

Reasons for decision:

To ensure that the company had approved cash flow to deliver against the approved business plan.

To ensure that the company structure remained fit for purpose as the business evolved.

Alternative options:

Requesting Officers to review the proposed loan agreement further and present them to a future meeting taking on board any comments at the meeting.

None.

None.

RESOLVED, that that members of the Press and public be excluded from the meeting for the following item of business under Section 100A(4) of the Local Government Act 1972 on the grounds that:

(i) it involves the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A of the Act; and

(ii) the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

• (Attachment: 15)15. Conversion of Guest House Massetts Rd Horley (61K/bytes)

RESOLVED that the exempt information relating to the conversion of a Guest House into emergency accommodation be noted.

• (Attachment: 16)16. Annex 1 Greensands Holdings (2M/bytes)

RESOLVED that the exempt information relating to the mid term report of Greensands Holdings be noted.

The Executive received a verbal update from the Leader of the Council, Councillor V.W. Broad on the progress being made by Pathway for Care towards meeting the objectives of its Business Plan. A number of questions were asked about the performance of Pathway for Care and answers were provided.

RESOLVED that the update on progress be noted and an all Member Briefing be held, as soon as possible, to allow further discussion on the progress being made by Pathway for Care against its Business Plan objectives.