Agenda and draft minutes

To confirm as a correct record the Minutes of the previous meeting on 22 February 2024.

To confirm as a correct record the Minutes of the Environmental Sustainability Strategy Review Panel meeting on 12 February 2024.

Several amendments to the minutes had been proposed by a Member of the Committee, which were agreed by the Committee.

The amendments were to minute 71 Review of the Work of the Greenspaces Team and were to add:

·         It was agreed that a good way forward would be to have a review of the approach to mowing/management of the different sites that are mown such as verge/ park/countryside with expert advice and the results in the public domain so that residents can see the balance of approaches across the different types of grass/countryside area.

·         A request was made by a visiting member for the way in which Management plans are adopted to mirror that which we expect Banstead Commons to follow, namely being shared with 'warm contacts' and then the public at the draft stage for consultation. The Officer agreed to discuss this with the Portfolio holder and respond to this request.

And to amend:

·         A Member asked for 'rotational management' of the countryside areas (not just grass cutting).

·         “It was confirmed that the Greenspaces Team were trained to check areas for wildlife before commencing mowing and strimming of the area” to “It was confirmed that the Greenspaces Team are trained to check for hedgehogs before commencing mowing and strimming. The Greenspaces officer assured members that he will ensure that operatives adhere to this practice before mowing to protect the hedgehog population.”

These amendments have been made to the published minutes.

RESOLVED that the minutes of the meeting held on 22 February 2024 be approved, with the amendments, and signed.

To receive any apologies for absence and notification of any substitute Members in accordance with the Constitution.

Apologies were received from Councillor Buttironi, there was no substitute.

Apologies were received from Councillor Dwight, there was no substitute.

Apologies were received from Councillor Ritter, Councillor Essex was substitute.

To receive any Declarations of Interest (including the existence and nature of any Party Whip).

There were no declarations of interest.

To consider the Council’s performance in Quarter 3 2023/24 including Key Performance Indicators for Q3 2023/24, Revenue Budget and Capital Programme forecasts for Q3 2023/24, and the Treasury Management Performance Update for Q3 2023/24.

RECOMMENDED that Overview and Scrutiny Committee:

 That the Overview and Scrutiny Committee:

(i)               Notes the Key Performance Indicators for Q3 2023/24 as detailed in the report and Annex 1 and make any observations to the Executive;

(ii)              Notes the proposed Key Performance Indicators to be reported on in 2024/25 as detailed in Annex 1.1.

(iii)            Notes the Revenue Budget and Capital Programme forecasts for Q3 2023/24 as detailed in the report and Annexes 2, 3 and 4 and makes any observations to the Executive;

(iv)            Notes the Q3 Treasury Management Performance and Prudential indicator Updates for 2023/24 at Annex 5 and makes any observations to the Executive; and

(v)             Notes the update on risks relating to Homelessness at Annex 6.

The Committee received the Performance Reports for Quarter 3 2023/24 including the Key Performance Indicators (KPIs), the proposed Key Performance Indictors (KPIs) to be reported on in 2024/25, Revenue Budget and Capital Programme forecasts for Quarter 3 2023/24, the Treasury Management Performance and Prudential indicator Updates for Quarter 3 2023/24, and the update on risks relating to Homelessness. The reports were due to be presented to the Executive on 21 March 2024.

The Quarter 3 2023/24 Performance Report was published on the Council’s website as part of the Committee’s agenda pack which can be viewed here:

Agenda for Overview and Scrutiny Committee on Thursday, 14th March, 2024, 7.30 pm | Reigate and Banstead Borough Council (moderngov.co.uk)

Key Performance Indicators

Councillor James King, Portfolio Holder for Corporate Policy and Resources, gave an overview of the Council’s performance up to the end of Quarter 3 (October to December 2023) as set out in the report.

Additional detail was provided in the accompanying report available for members at annex 1.

Annex 1.1 of the report set out the KPIs to be reported on in 2024/25. The KPIs were considered to continue to reflect the Council’s corporate objectives as set out in the current Corporate Plan. In parallel with the preparation of the new Corporate Plan for 2025-2030, an updated set of KPIs would be developed alongside a member task and finish group. This process would take place in 2024/25, with the new indicators reported from 2025/26 onwards.

Following this meeting, the report would be considered by the Executive on 21 March. Any observations made by the Committee on the report’s contents would be tabled at this meeting.

Of the ten KPIs reported on, eight were on target or within agreed tolerances. Two KPIs were off target and outside of the agreed tolerance: KPI 1 – Council Tax collection, and KPI 7 – affordable housing completions. Although Affordable housing completions had not met their target within this quarter, it should be noted that 1,164 affordable units had been delivered in the borough since 2012, which means that progress towards achieving the Local Plan 15 year target was on track. Of the 852 dwellings under construction at the end of Q3, 82 were affordable units. In Q3 no further affordable dwellings commenced construction.

The Executive Member for Corporate Policy and Resources, Councillor James King, invited Members to ask questions and comment on the Quarter 3 2023/24 Performance Report provided in the agenda pack.

In response to the questions raised, the following clarifications were provided:

Review of KPIs

It was confirmed that KPIs were used to report performance against the Corporate Plan and proposed KPIs for the new year ahead were reviewed by Overview and Scrutiny Committee before being confirmed by the Executive every year. There was an officer recommendation that KPIs were not changed at this moment in time, to allow for continuity across the Corporate Plan period. A full review of KPIs was proposed to align with the new Corporate Plan.

Temporary emergency accommodation  ...  view the full minutes text for item 78.

To consider and to provide feedback on the Treasury Management Strategy Statement 2024/25.

RECOMMENDED to provide feedback on the following which are to be finalised and submitted for approval by the Executive on 14 March 2024 and Council on 28 March 2024:

·        Treasury Management Strategy 2024/25;

·        Investment Strategy 2024/25; and

·        Capital Strategy 2024/25.

Councillor Lewanski, Deputy Leader and Portfolio Holder for Finance, Governance, and Organisation, gave an overview of the Treasury Management Strategy for 2024/25.

The purpose of the Strategy was to guide all Treasury Management activity for the coming financial year. Due to the technical nature of the subject and the requirements of the treasury regulations, it was inevitably complicated and lengthy.

In summary, the Strategy comprised three sections:

(i)            Treasury Management Strategy Statement (TMSS) – which set out details of the Council’s ‘traditional’ treasury management activities, covering topics such as sources of borrowing, and investment counterparties and limits.

In response to an advance question raised by the Chair of O&S, the Deputy Leader and Portfolio Holder for Finance, Governance, and Organisation confirmed that the Capital Financing Requirement (CFR) that is reported in the Quarter 3 monitoring report that Members considered earlier on this agenda, was originally prepared this time last year when the 2023/24 Treasury Strategy was drafted.

Those CFR forecasts had recently been updated when preparing this latest Treasury Management Strategy to reflect:

•  Firstly - the final capital programme outturn position for 2022/23 and 2023/24; and

•  Secondly - updated forecasts for capital expenditure and financing over the medium term.

Therefore two separate snapshots were being presented, based on two  separate points in time:

•  The 2023/23 balances and forecasts in the quarterly performance report that are being used to monitor the current year’s treasury position; and

•  The updated 2024/25 forecasts in this Strategy report that will be used to monitor next year’s treasury activity.

Another key factor to note was the £40 million capital receipt last summer from sale of the accommodation units at The Rise, which has had a beneficial impact on the underlying investment balances and borrowing requirement.

(ii)          Investment Strategy – which covered the Council’s investments, including ‘traditional’ treasury management investments. It also included a summary of any other investments made for service or commercial reasons.

This confirmed that provision had already been made, funded through a call on the Commercial Risks Reserve in previous years, for expected credit losses relating to company loans and shareholdings.

As previously advised, at the point where those loses crystalise, the final accounting entries will be made and the outcome reported in that year’s statutory accounts.

(iii)         Capital Strategy – which outlined the Council’s capital expenditure plans and core borrowing (internal or external) and investing activities.

The Strategy also Included the Prudential Indicators that the Council are required to report under CIPFA’s Code of Practice

Both the Government and CIPFA continued to make changes to the regulatory frameworks and guidance that govern how councils borrow and invest. These changes were primarily in response to concerns about the small number of authorities that have borrowed significant amounts over recent years to invest in commercial assets.

While these changes would not have a significant impact on this Council’s treasury management plans, it does mean that some of the options that might have been considered going forward are no longer  ...  view the full minutes text for item 79.

RECOMMENDED that the Overview and Scrutiny Committee:

Note the findings of the Environmental Sustainability Strategy Scrutiny Panel, the officer responses at Annex 3, and the revised Environmental Sustainability Strategy at Annex 1 and Action Plan at Annex 2, and make any observations to the Executive.

Councillor Moses, Portfolio Holder for Environment and Sustainability, introduced the Review of the Council’s Environmental Sustainability Strategy.

The main changes proposed to the Council’s Strategy included more detail about the scope of the Council’s carbon footprint. There was also a new chapter addressing how the Council adapts to the impacts of climate change.

The report contained information about the main challenges and risks to delivering the Strategy, and the Action Plan had been fully revised to include 91 new actions, and more information about how actions would be funded and reported on.

The review process, and a draft version of the Strategy and the Action Plan, were considered in detail by the Environmental Sustainability Strategy Scrutiny Panel on 12 February 2024; the Portfolio Holder thanked all the members of the Panel for their questions, comments, and suggestions. All specific suggestions made by the Panel had been considered, resulting in a number of changes being made to the Strategy and Action Plan. Annex 3 provided more detail about where changes had been made, and where (in some cases) officers do not consider changes to be necessary.

One of the main Panel comments had been making sure delivery of the Action Plan could be clearly tracked and reported on. As a result, timeframes of all actions in the Action Plan had been reviewed. Start dates were provided for all actions, plus an indication of when actions would continue over several years.

Performance indicators had also been reviewed. Changes had been made in a number of cases to make it clearer what information will be reported. In some cases, further work would be required to identify detailed actions and reporting measures.

An example of this was the Greenspaces Strategy:

• In the ES Action Plan, there was an action to develop a Greenspaces Strategy, so the Performance Indicator would be whether this has been achieved or not.

• The Greenspaces Strategy itself would then contain more detailed actions and indicators.

Another comment from the Panel had been about being able to understand how the Strategy would deliver the Council’s carbon reduction target. Unfortunately, this was not straightforward to do, but some information had been provided in Annex 4. The first chart showed the impact of different measures to reducing the Council’s carbon footprint. For example, the impact of moving to HVO in bin lorries, and to removing gas heating in Council-owned buildings. Where there was uncertainty, this had been shown. Examples of uncertainty included the future of the Harlequin Theatre; and evolving vehicle technology for HGVs.

The second chart showed what progress over the next few years may look like. Less certain actions had not been assumed, but of course, these may be brought forward sooner if uncertainty is resolved.

The Portfolio Holder confirmed the need to balance the Council’s environmental sustainability work with the need to be financially sustainable; the Strategy and Action Plan did this. Overall, the actions in the Action Plan would ensure that the Council continues to make good  ...  view the full minutes text for item 80.

To receive a briefing from Executive Members of the Place Portfolio areas of work: Economic Prosperity, Place, Planning and Regulatory Services Neighbourhood Services, Greenspaces and Environmental Sustainability and to consider any issues that arise.

RECOMMENDED that the Committee note the briefings.

The Committee received briefings from the Place Portfolio Holders overseeing the following areas of the Council’s services – Economic Prosperity, Place Delivery, Planning and Regulatory Services, Neighbourhood Operations, Greenspaces, and Environmental Sustainability.

The presentations from each of the Executive Members / Portfolio Holders were published on the Council’s website as part of the Committee’s agenda pack which can be viewed here:

Agenda for Overview and Scrutiny Committee on Thursday, 14th March, 2024, 7.30 pm | Reigate and Banstead Borough Council (moderngov.co.uk)

Members were invited to ask questions on the Economic Prosperity presentation. In response, the following clarifications were provided:

The Economic Prosperity Team

It was confirmed that the Economic Prosperity team had been in existence for a little over ten years: the business start-up rate in the borough over 10 years ago was lower than the county average, now it was the highest in the county.

Economic Prosperity Team success

It was confirmed that economic growth lag and reporting took time and that there were counterfactuals. For several years the Council’s five-year survey showed a business survival rate better than that of the county and better than that of the south-east, so there were some indicators to support the success of the Economic Prosperity Team. There was also a high start-up business growth rate. Feedback was received from sources such as the Council’s grants programme, which from the last review in 2021, showed that beneficiaries reported that approximately 143 jobs had been created, equating to a cost of approximately £2,500 per job created. The Council received a great deal of positive feedback from the business community, who value the services provided to them and believe that it helps them in their survival and growth.

Networking and events

It was confirmed that most of the events attended by the Economic Prosperity team were events for local businesses. Engagement with external stakeholders was usually in relation to discussing a “soft landing”, providing information on local amenities such as schools, transport, and medical facilities.

It was confirmed that members of the team would be attending the UK’s Real Estate Investment & Infrastructure Forum (UKREiiF) as part of the Gatwick Diamond Initiative, working with other local authorities in the area, Gatwick Airport, and other commercial organisations, to promote the local area as a vibrant economic area and to demonstrate partnership activity. Objectives had been discussed within the team to make the most of the opportunity to attend this event.

The Managing Director confirmed that work was underway to undertake more collaborative work with neighbouring boroughs to establish East Surrey as a good place to invest.

The Head of Economic Prosperity confirmed that the Council fostered good relationships with the Chamber of Commerce, the Institute of Directors, and the Federation of Small businesses, who were all aware of the support offered by the team, which promoted awareness to the wider audience of businesses, as well as the information provided on the Council’s website and through advocates.

The UK Shared Prosperity Fund Investment Plan

The  ...  view the full minutes text for item 81.

To receive a verbal briefing on the New Local Plan Update.

RECOMMENDED that Overview and Scrutiny Committee:

Notes the verbal update on the progress of the Council’s new Local Plan.

The Committee received an update on the Council’s progress on the new Local Plan.

No questions were raised.

RESOLVED that Overview and Scrutiny Committee:

Noted the update on the progress of the Council’s new Local Plan.

To consider the Overview and Scrutiny Annual Report 2023/24.

RECOMMENDED that Overview and Scrutiny Committee:

Agrees the Overview and Scrutiny Annual Report 2023/24 for recommendation to Council on 28 March 2024.

Members received and approved the Overview and Scrutiny Annual Report 2023/24 to be recommended to Council.

RESOLVED that Overview and Scrutiny Committee:

        I.        Noted the Annual Report of the Overview and Scrutiny Committee for this year and recommended it to Council on 28 March 2024.

       II.         Made any additional observations to Council on 28 March 2024.

To consider the proposed Overview and Scrutiny Annual Work Programme for 2024/25 and to note the action tracker.

RECOMMENDED that Overview and Scrutiny Committee:

i)             Approve the proposed Overview and Scrutiny Annual Work Programme 2024/25.

ii)            Notes the Action Tracker.

The Committee considered the proposed Overview and Scrutiny Annual Work Programme for 2024/25.

With respect to the additional topic for scrutiny of reviewing waste water arrangements, proposed by the Environmental Sustainability Strategy Review Panel, the Chair proposed working with the Managing Director to agree the best method to carry out this scrutiny work. A suggestion was to carry out a visit to the plant.

A Member suggested also scrutinising the water supply company.

A Member also suggested a scrutiny of East Surrey Hospital. In response, the Chair suggested that an all-Member briefing on this topic might be more beneficial. The Member felt that a publicly recorded all-Member briefing would be preferable.

As agreed in agenda item 4 Quarter 3 2023/24 Performance Report, a Member task and finish group would be constituted to develop a new set of KPIs to take effect from 2025/26 in line with the new Corporate Plan. This would be added to the Overview and Scrutiny Proposed Annual Work Programme 2024/25.

RESOLVED that Overview and Scrutiny Committee:

i)                    Approved the proposed Overview and Scrutiny Annual Work Programme 2024/25

ii)                   Noted the Action Tracker with the additional completed items.

To consider any items arising from the Executive which might be subject to the ‘call-in’ procedure in accordance with the provisions of the Overview and Scrutiny Procedure Rules set out in the Constitution.

It was reported that there were no items arising from the Executive that might be subject to the “call-in” procedure in accordance with the provisions of the Overview and Scrutiny Procedure Rules.

To consider any item(s) which, in the opinion of the Chairman, should be considered as a matter of urgency - Local Government Act 1972, Section 100B(4)(b).

(NOTE: Under the Committee and Sub-Committee Procedure Rules set out in the Constitution, items of urgent business must be submitted in writing but may be supplemented by an oral report.)

There was no urgent business.