Agenda, decisions and minutes

To receive any apologies for absence.

There were no apologies for absence from Executive Members.

Apologies were received from Councillor Blacker and the Chair of Overview and Scrutiny Committee, Councillor Harrison.

To approve and sign the Minutes of the Executive meeting on 20 June 2024.

The minutes of the previous meeting on 20 June 2024 were agreed and signed.

To receive any declarations of interest.

The Executive Member for Corporate Policy and Resource Councillor King declared a non-pecuniary interest in item 5, Q4 Performance and Budget Outturn 2023/24 and item 8, Risk Management Q4 2023/24 as he was related to the report author.

The Executive Member for Corporate Policy and Resources.

The Executive Member for Corporate Policy and Resource introduced the report. The report is the fourth annual report on Reigate & Banstead 2025, the Council’s corporate plan, and on the Council’s equality objectives. It covers the year 2023/24.

The report and annex 1 identify the Council’s work and progress towards the corporate plan’s objectives in the last year, including some key successes and challenges, such as:

·       The opening of The Rise in Redhill and its benefits for the local area,

·       The completed review of the Local Plan Core Strategy, confirming that it remains up to date.

·       The current closure of the Harlequin Theatre, and alternative arrangements put in place to support local cultural options.

·       The high level of housing and homelessness need in the borough and the extensive work being undertaken by the Housing team and others in response.

There are also a range of contextual indicators, providing background information on the borough and its residents.

The report and annex 2 cover updates on the Council’s work to delivery on our equality objectives, as part of our wider equality duty. This includes information on areas of recent activity and topics for future focus.

The Overview and Scrutiny Committee reviewed the reports at its meeting of 11 July. There were a number of clarifications provided at the meeting, with additional written responses to detailed questions to follow.

The committee also sought clarification on how a £6million funding commitment to temporary and emergency accommodation referenced within the report aligned with £4million for these purposes identified within the capital investment strategy. We are currently confirming the relevant details with regard to this observation and will reflect them within the published report.

The Executive Member for Corporate Policy and Resource Commended the recommendations of this report to the Executive.

There were no questions from Executive Members.

Overview and Scrutiny had considered the report at its meeting on 11 July 2024. The committee’s draft minute had been published as an Addendum to the Executive agenda for the current meeting. There were no further comments from the Vice-Chair of Over and Scrutiny.

There were no other questions from Visiting Members.

The motion was put to the Executive and it was:

RESOLVED – that the Executive:

(i)             Agrees the Reigate & Banstead 2025 Annual Report for 2023/24 for publication.

(ii)           Agrees the Equality Objectives Progress Report for 2023/24 for publication

The Executive Member for Corporate Policy and Resources, and the Deputy Leader and Executive Member for Finance and Assets.

The Executive Member for Corporate Policy and Resource introduced the first part of the item – Q4 Performance.

Annex 1 of this report outlines the Council’s performance up to the end of quarter four (January to March 2024). Of the 11 key performance indicators reported on in quarter four, eight are on target or within the agreed tolerance. Three indicators are off-target and outside of the agreed tolerance.

The RED rated indicators are as follows:

·            Firstly, KPI 7 – affordable housing completions.

The Council has seen 43 affordable housing completions over the year, compared to a notional target of 100. This is disappointing, but the complexity behind the drivers of affordable housing provision is well understood.

·            Secondly, KPI10 – Recycling levels

As the Council report quarterly in arrears, reporting for the Quarter 3 period, with a figure of 53.1% compared to a target of 60%.  In this period there was an overall decrease in residual waste (which is positive) but also a decrease in garden waste (which is seasonal) and a more minor decrease in plastic and mixed cans recycling.

·            Finally, KPI11 - Council Carbon emissions

This information is currently reported one year in arrears, which means    that the carbon emissions figures reported here have already been discussed by the Executive in September last year.

The uptick in carbon emissions in 2022/23 was due to the re-opening of Council facilities after the pandemic and an issue with the boiler at the Harlequin.

The Quarter 4 KPIs were considered at the Overview & Scrutiny Committee on 11^th July.  At this meeting – as set out in the minutes that have been circulated – members explored a range of questions, primarily in relation to KPI4, KPI6, KPI7 and KPI11.

There were no questions from Executive Members.

The report was considered at Overview and Scrutiny Committee meeting last Thursday 11 July. The Draft Minute of this meeting were published in an Addendum to the Executive agenda this week. There were no further comments from the Vice-Chair of Overview and Scrutiny Committee.

There were no questions from Visiting Members.

The Deputy Leader and Executive Member for Finance and Assets introduced the second part of the item- Budget Outturn 2023/24. This section of the Performance report presents the provisional Revenue and Capital budget outturn for last year.

The final outturn position will be finalised when the Statement of Accounts for the year is complete, but no significant changes are expected. 

For Service budgets, the full year outturn was £20.9m against a management budget of £20.2m resulting in an overspend of £0.7m (3.5%). There are a number of reasons for this overspend and these are explained in the report itself for each service area.

For Central Budgets the outturn was £1.3m against a management budget of £3.0m resulting in an underspend of £1.8m (58%).

The Central underspend is mainly as a result of lower Treasury Management costs driven by favourable rates and a lower borrowing requirement than budgeted.

Turning to the Capital Programme, the outturn position  ...  view the full minutes text for item 13.

The Deputy Leader and Executive Member for Finance and Assets.

Deputy Leader and Executive Member for Finance and Assets introduced the item. Members will have noted that I have two reports on tonight’s agenda:

(i)    Firstly the latest update to our Medium Term Financial Plan and; and

(ii)   Also the Councils latest Capital Investment Strategy.

Together they set the scene for presentation of the revenue budget and capital programme proposals later this year.

This latest Medium Term Financial Plan for 2025/26 confirms that local government continues to face a challenging financial situation with continued uncertainty about the local government funding regime. Many councils across the county are facing very difficult budget decisions with up to 51% saying that they may have to issue a S114 notice within the next 4 years.

This council is not in that position at the present time which is an advantage. The other advantage the Council have is time, and so it is critical that time is used productively to prudently prepare the budget plans for 2025/26. Once again, the Council have made an early start in preparing the Medium Term Financial Plan. Work has commenced on the Service Planning process for next financial year. Continued work on the Financial Sustainability Programme also progresses to deliver cost reductions and income generation initiatives wherever possible.

The MTFP report in this agenda pack sets out a detailed initial assessment of the key information that will be used for budget setting in 2025/26 onwards.

It includes a five year forecast for the budget gap that the Council will face, if action is not taken to reduce costs or increase income or if additional government finance support is not forthcoming.

Work is now underway with officers to develop the detailed budget proposals for consideration by Executive in November and review by the O&S Scrutiny Panel.

There were no questions from Executive Members.

The Plan was considered at Overview and Scrutiny Committee meeting on 11 July 2024. The draft minute has been published in an Addendum to the Executive agenda this week. The Vice-Chair of Overview and Scrutiny Councillor Wash noted:

·       A query was raised regarding funding of Central Government and clarification on which department Issued the report.

There were no further questions from Visiting Members.

The motion was put to the Executive, and it was:

RESOLVED- That the Executive:

               i.         That the Medium-Term Financial Plan be recommended to Council as the framework for the budget elements of service and financial planning for 2025/26 onwards.

RECOMMENDS that the Council at its meeting on 23 July 2024:

                      i.         That the Medium-Term Financial Plan be adopted as the framework for the Revenue Budget elements of service and financial planning for 2025/26 onwards.

The Deputy Leader and Executive Member for Finance and Assets.

The Deputy Leader and Executive Member for Finance and Assets introduced the item. This report presents the latest version of the Council’s Capital Investment Strategy.

None of the information in this report is new and follows on mostly from the previously approved Treasury Management Strategy and the overall Council Capital Budget approved in February by Full Council.

This Capital Investment Strategy brings all aspects together to demonstrate that we plan to ensure that capital spending decisions take account of the authority’s stewardship, value for money, prudence, sustainability, and affordability responsibilities.

This is particularly important in the current financial climate, especially in light of those authorities that are now finding themselves in financial difficulties due in part to not having sufficient control over their capital spending and borrowing commitments.

The report also includes information about the significant assets that the Council own, how they are used and how they are performing. Plus information about the new capital assets that the Council are investing in and how they are being funded.

These activities are supported by the work of the Partner, Shareholder and Trustee Sub-Committee and officer boards.

The next step will be to continue the work that is now in progress to confirm future capital investment plans as part of the service & financial planning process.

There were no questions from Executive Members.

The Capital Investment Strategy 2025/26 was considered by Overview and Scrutiny meeting on 11 July. A Draft Minute was published in an Addendum to the Executive agenda. There were no further comments from the Vice-Chair of Over and Scrutiny.

There were no questions from Visiting Members.

The motion was put to the Executive, and it was:

RESOLVED- that the Executive:

      i.         That the Capital Investment Strategy be recommended to Council for adoption as the framework for the Capital Programme elements of service and financial planning for 2025/26 onwards.

RECOMMENDS that the Council at its next meeting on 23 July 2024

      i.         That the Capital Investment Strategy be adopted as the framework for the Capital Programme elements of service and financial planning for 2025/26 onwards.

The Executive Member for Corporate Policy and Resources.

The Leader noted there was an Exempt part to this Item. Annex 2. There was no discussion of Annex 2 at the last Audit Committee Meeting. If there were any questions on the Exempt Annex 2 the meeting would be move into an Exempt part of the meeting.

The Executive Member for Corporate Policy and Resource introduced the item. This report provides members with an update on risk management in Quarter 4 -that’s the period from January to March 2024. Strategic risks are presented at Annex 1.

In Quarter 4, no new strategic risks were identified.

As well as reporting the strategic risk register to this Committee, updates are also provided on any red rated operational risks.

In Quarter 4 of 2023/24 there were no red rated operational risks.

The Council is taking the opportunity in this report to update members on two operational risks rated red in Quarter 1 of 2024/25. The detail of these two red rated operational risks is set out in the Part 2 exempt annex, that is Annex 2.

The report recommends two strategic risks for closure at the end of Quarter 4: SR6 – Local Government Reorganisation, Devolution and Levelling Up, and SR8 Fraud.

During discussions on 10^th July, the Audit Committee considered that it could not support the closure of the strategic risk on Fraud until it has heard more detail about the controls and mitigations that the Council has in place.

Discussions have taken place with the Portfolio Holder owner for this risk, and they are happy to accept this suggestion from the Audit Committee.

There were no questions from Executive Members.

The report was considered by the Audit Committee on 10 July 2024. Draft Minutes were published this week. Audit Committee Chair Councillor Essex gave an overview of feedback from this meeting:

·       SR8 Fraud. This is on the Agenda for the December Audit Committee meeting. It is the Committees suggestion to retain until this meeting.

·       SR6 Local Government Reorganisation, Devolution and Levelling Up.  The Committee agree it is appropriate to remove that risk but noted it may be popping up again as Local Government Reorganisation was a subject of the Kings’ Speech.

·       There were discussions at the last Audit Committee for a Strategic Risk to be added with regards to the Harlequin closure due to RAAC. This could a Strategic Risk as it doesn’t seem to be just an operational issue.

There were no further questions from Visiting Members.

The motion was put to the Executive, and it was:

RESOLVED- That the Executive

      i.         Notes the Q4 2023/24 update on risk management provided by the report and associated Annex 1 and the Q1 2024/25 update at Annex 2;

    ii.         Approves the closure of the following strategic risk:

- SR6 – Local Government Reorganisation, Devolution and Levelling Up;

The Deputy Leader and Executive Member for Finance and Assets.

The Financial Systems Investment was discussed in the Exempt part of the meeting.

The motion was put to the Executive, and it was:

RESOLVED- That the executive:

(i)             Approve the recommended Options, as set out in this report in order to investment in the authority’s core financial systems to ensure they remain fit for purpose.

(ii)           Also to approve the allocation of £0.305 million from the IT Strategy Reserve:

• £0.245 million for migrating Unit4’s BWO system to the Cloud; and

• £0.060 million for implementation of The Access Group’s income management solution.

(iii)         Also to note the consequent forecast requirement for revenue budget growth, as detailed in this report, to fund increased support costs for the authority’s core financial systems in 2025/26 onwards. To be confirmed through the annual Service & Financial Planning process;

(iv)         Also to delegate authority to the Chief Finance Officer, in consultation with the Deputy Leader and Portfolio Holder for Finance and Governance, to finalise the commercial terms and enter into the associated contracts with Unit4 Limited for five years for provision of their BWO Cloud solution; and with The Access Group Limited for eight years for provision of their income management solution.

(v)           And finally to delegate authority to the Chief Finance Officer, in consultation with the Deputy Leader and Portfolio Holder for Finance and Governance, to procure consultancy and project management services to support implementation of the recommended Options as detailed in this report.

To receive any statements from the Leader of the Council, Members of the Executive or the Managing Director.

There were no Statements from the Leader, Executive Members or the Managing Director.

RECOMMENDED 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.

RESOLVED – 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)             the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of the Local Government Act 1972; and

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

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:  Urgent business must be submitted in writing but may be supplemented by an oral report).

The Leader noted the additional Extraordinary meeting of the Executive on Thursday 15 August 2024 at 6.30pm.

There was no other urgent business.