Meeting documents

To approve as a correct record the Minutes of the meeting held on 20 December, 2017, copy attached as an appendix.

RESOLVED –

That the minutes of the meeting held on 20 December 2017 be approved as a correct record.

Councillor Mordue

Cabinet Member for Resources, Governance and Compliance

To consider the attached report.

Contact Officer:  Andrew Small (01296) 585507

(a)          Decision(s)

(1)          That the Finance and Services Scrutiny Committee be thanked for its input to the budget planning process.

(2)          That in relation to Council tax, Council be recommended to approve an increase of £5 (3.48%) in respect of a Band D property for the financial year commencing on 1 April, 2018.

(3)          That Council be recommended to approve the budget for 2018/19, which included the use of £1.53m of New Homes Bonus to meet the costs of the Connected Knowledge Programme in 2018/19, and the Medium Term Financial Plan as set out in summary form at Appendix A to the Cabinet report.

(4)          That the fees and charges (taken into the final calculations) set out in Appendix E to the Cabinet report be agreed.

(5)          That Council be recommended to approve Aylesbury Special Expenditure totalling £864,700, supported by a precept of £45, which represented a Council Tax freeze for Special Expenses (as set out in Appendix F to the Cabinet report).

(6)          That Council be recommended to affirm the decision made in February, 2017, following negotiations with unions and the staff side, to approve a two year pay award for staff, with 2% being payable across all grades for 2018/2019, (the second year of the agreement), for which provision had been made in the draft budget proposals.

(b)          Reason(s) for Decision(s)

The Council is statutorily required to set a budget for 2018/2019 and plan for expenditure in subsequent years based upon the Medium Term Financial Plan.

(c)        Alternative Options Considered

The development of the initial proposals has involved a number of key elements of choice as set out in previous reports and the latest report submitted to Cabinet, which reflects the Government Grant settlement numbers.

(d)       Relevant Scrutiny Committee

Finance and Services. That Committee’s comments were reported to Cabinet by the Committee Chairman and were taken into account in reaching the recommendations indicated above (as set out in the Cabinet Minutes) and would be actioned.  In particular, the Leader of the Council indicated that Cabinet would consider the Committee's request to review the possibility of devolving Special Expenses services to Aylesbury Town Council and would seek reports in due course on the implications of this.  Cabinet’s final recommendations will now be submitted to Council and as such are not subject to call-in.

(e)        Conflicts of Interest / Dispensation(s)

None.

The report to Cabinet on 20 December, 2017, had presented a set of initial budget proposals for 2017/18 and beyond.  The report had highlighted uncertainty around a number of issues, particularly further reductions in Government Grant, retained business rates and the New Homes Bonus, although these fears had largely been dispelled following the Government’s draft Grant settlement announcement on the previous day.

On 19 December, 2017, the Government had announced the draft Grant settlement for Councils.  Despite indications that there might be significant changes to reflect ongoing pressures on the wider local government sector, Government had largely honoured its commitments contained in the four year settlement.

In the few weeks since the initial proposals had been considered, work had continued to refine the budget assumptions.  In practice, little had changed at a service level and consequently the significant elements of the final budget proposals revolved around the impact of the Government grant numbers and changes to other centrally funded support.

As set out in the draft proposals, it was proposed to support the Connected Knowledge programme through the use of Council NHB reserves.  The programme underpinned many of the components of Service delivery and Commercial AVDC and therefore the ability to meet the financial agenda for the Council for the coming years.

The draft budget and proposals under development were attached as appendices to the Cabinet report as follows:-

·                     Appendix A1 – MTFP – 2018/19 to 2022/23 – Final Proposals.

·                     Appendix A2 – Summary of Changes.

·                     Appendix B – Budget Proposals 2017/18 to 2022/23 (General Fund Revenue Balances).

·                     Appendix C – Budget Savings identified in 2018/19 budget planning.

·                     Appendix D – Budget Pressures identified in 2018/19 budget planning.

·                     Appendix E – Fees and Charges (Amendments) schedule.

·                     Appendix F – Aylesbury Special Expenses – Summary Budget 2018/19.

The budget report also included information on:-

Government Grant Update

As referred to above, the draft Grant settlement for 2018/19 had been announced on 19 December, 2017, in which the Government had largely honoured the commitments within the 4 year settlement and left the pre-announced Grant numbers mostly unchanged. Importantly, the Revenue Support Grant and Baseline Business Rates settlements were virtually the same as those announced for 2018/19 (which was Year 3 of the four year settlement).

However, there had been a 1% increase in the Council Tax referendum thresholds across all Councils.

The Secretary of State for Communities and Local Government had also announced a formal consultation on a review of relative needs and resources which would feed into a new funding system that would be introduced in 2020 to 2021.  Alongside the new methodology, a new phase for the business rates retention programme would also be introduced.  The aim was for local authorities to retain 75% of business rates growth from 2020 to 2021, and was intended to be a lever and incentive for local authorities to grow their local economies.

The mechanism for this would be through incorporating existing grants into business rate retention including the revenue support grant, and  ...  view the full minutes text for item 2.

Councillor Mordue

Cabinet Member for Resources, Governance and Compliance

To consider the attached report.

Contact Officer:  Andrew Small (01296) 585507

(a)          Decision(s)

That Council be recommended to approve the updated Capital Programme for the period 2018/19 to 2021/22 onwards, as set out in summary form at Appendix A to the Cabinet report.

(b)          Reason(s) for Decision(s)

The Council is required to set a capital budget for the coming financial year and as part of prudent financial management incorporate a longer term view of capital activity.  Regular review of the Capital Programme is essential, especially when a number of major schemes are running in parallel.

(c)        Alternative Options Considered

None as such. The proposed Capital Programme represents the allocation of anticipated resources in accordance with corporate priorities.

(d)       Relevant Scrutiny Committee

Finance and Services. That Committee considered the Capital Programme at its meeting on 8 January, 2018.  The Committee Chairman attended the meeting to elaborate upon the Committee’s deliberations.  The Committee was supportive of the proposed programme, particularly the use of residual Right to Buy capital receipts and nominal sums from New Homes Bonus for affordable housing, to fund new affordable housing schemes.

Cabinet’s final recommendation will now be submitted to Council and as such is not subject to call-in.

(e)        Conflicts of Interest / Dispensation(s)

None.

Cabinet had received an update report on the Capital Programme for the period 2018/19 to 2021/22  to its meeting on 20 December, 2017.  Cabinet had reviewed the available resources at the beginning of 2017/18, the projected resources during 2017/18 and 2018/19 before any expenditure had been taken into account, and the significant factors impacting on the Programme for the next and forthcoming years.  These had all been summarised in the Minutes of that meeting, which had also included Cabinet giving approval of the Capital Programme for the purposes of scrutiny.

The Chairman of the Finance and Services Scrutiny Committee attended the meeting and elaborated upon the consideration given by that Committee on 8 January to the Capital Programme update.  He indicated that the Scrutiny Committee had been supportive of the Programme, including in particular the use of residual Right to Buy capital receipts and nominal sums from New Homes Bonus for affordable housing, to fund new affordable housing schemes.

RESOLVED –

(1)          That the Finance and Services Scrutiny Committee be thanked for its feedback on the Capital Programme for 2018/19 onwards.

(2)          That Council be recommended to approve the updated Capital Programme for the period 2018/19 to 2021/22 onwards, as set out in summary form at Appendix A to the Cabinet report.

Councillor Macpherson

Deputy Leader and Cabinet Member for Communities

To consider the attached report.

Contact Officer:  Andy Barton (01296) 585430

(a)          Decision(s)

That AVDC’s Equality Report for 2017 be approved for publication in order to meet the Council’s statutory duty.

(b)          Reason(s) for Decision(s)

This is a statutory requirement.

(c)        Alternative Options Considered

None.

(d)       Relevant Scrutiny Committee

Finance and Services. That Committee considered the report at its meeting on 8 January, 2018.  The Committee Chairman attended the meeting to elaborate upon the Committee’s deliberations.  The Cabinet Member for Communities gave an undertaking to include as much of the detail asked for by the Committee in future reports, bearing in mind the need to keep the document concise and easily readable.

(e)        Conflicts of Interest / Dispensation(s)

None.

Cabinet considered a report, also submitted to the Finance and Services Scrutiny Committee on 8 January, 2018, and summarised in the Minutes of that meeting, giving an assessment of the Council’s performance against the Public Sector Equality Duty, and the requirements of Regulation 2 of the Equality Act, 2010 (Specific Duties) Regulations, 2011.

The Chairman of the Scrutiny Committee attended Cabinet to elaborate upon the Committee’s deliberations. 

The Committee Chairman reported that overall, the Committee had been satisfied with the assessment, but had commented as follows:-

·         Future reporting should include measurable objectives/baselines and performance against them.

·         Future reporting should include more information on health and disability and how the Council was meeting its legal obligations.

·         Future reporting should include more explanatory information generally, including such information on why the percentage of employees who had self declared  disability had fallen over the last 10 years; why there were generally more females in the grades SG2-SG5, and a male/female breakdown on flexible working.

·         The Committee had also been of the view that future reports should highlight, by way of examples, some of the positive work that had been done by AVDC to meet the equality duty.

The Cabinet Member for Communities indicated that she planned to meet with officers to discuss the issues raised by the Scrutiny Committee and would seek to provide the information requested, bearing in mind the need to retain conciseness and ease of readability.

RESOLVED –

That the Equality Report 2017 be approved for publication in order to meet the Council’s statutory duty.

Councillor Mrs Paternoster

Cabinet Member for Growth Strategy

To consider the attached report.

Contact Officer:  Tracey Aldworth (01296) 585003

(a)          Decision(s)

(1)          That the Buckinghamshire Growth Strategy 2017-2050 be noted.

(2)          That the Council’s response to the document be as follows:-

·         AVDC is disappointed and surprised about how this issue has been approached and is concerned that despite having raised a number of valid issues, the document was still commissioned in the manner presented.

·         AVDC believes that the document does not have any formal status and therefore will not be referenced in any of AVDC’s planning work.

·         AVDC does not believe that the other planning authorities in Bucks recognise the strategy.

·         AVDC believes that this document cannot be considered as a real strategy and questions its validity/value, given its broad and unsubstantiated statements.

·         AVDC is firmly of the view that the LEP needs to work better at identifying mission critical investments that need to be secured from Government.  This document does little to provide any clarity on the priority asks and offers that AVDC would seek to achieve within the context of a central area growth deal.

·         AVDC’s priority will be to work with the other that are willing to work in partnership across the central area in order to move a growth deal forward and would expect  that both LEPs will actively engage with this, rather than pursue separate growth conversations which it is understood the Government would like to avoid.

(b)          Reason(s) for Decision(s)

In response to the invitation to comment.  The Chief Executive of the Bucks/Thames Valley LEP attended the meeting and gave a brief presentation on the strategy.  Cabinet Members tested him rigorously on the assumptions made in the strategy.

(c)        Alternative Options Considered

Not to comment.  However, Cabinet felt it essential to express a view within the context of the actions being pursued by this Authority to seek a sustainable and robust growth strategy for the Vale.

(d)       Relevant Scrutiny Committee

Economy and Business Development.

(e)        Conflicts of Interest / Dispensation(s)

None.

Cabinet received a report on the Buckinghamshire Growth Strategy 2017-2050 that had been prepared by the Buckinghamshire Thames Valley Local Enterprise Partnership (BTVLEP).  A response had been sought from AVDC to the document.

In August 2017, BTVLEP had commissioned consultants SGD Economic Development to prepare a growth strategy to submit to the Government.  This work appeared to have been commissioned in response to the Department for Communities and Local Government’s request in relation to the National Infrastructure Commission’s work on the Oxford to Cambridge Corridor and that the central part of the corridor needed to work up the initial investment priorities and pressures as the other parts of the corridor were well advanced with their work.

Related pieces of work had also been carried out by the Oxfordshire authorities in relation to the Growth Deal and an investment plan had been prepared by the Cambridgeshire and Peterborough Combined Authority.

AVDC had been contacted on 10 August 2017 to participate in the BTVLEP work and asked to respond in 4 hours with any comments on the proposal.  Prior to this contact there had not been any in depth conversation about the scope of the brief and how this work would fit in with the other statutory and non-statutory strategies prepared by the local authorities.

Comments about the scope of the work had been made before the due time but officers had clearly indicated they did not believe this was something that could be properly commissioned in the time available.  Officers had also clearly indicated that the focus of AVDC and other partners needed to be on preparing the Housing Infrastructure Fund (HIF) bids, that were due in at the end of September, as well as working on the growth deal for the central area in a collective group rather than having competing bids across the corridor area.

Members were informed that the consultants had undertaken their work mainly through a desk top exercise and a review of existing documents, with some meetings with officer representatives from the other authorities.  The report had been published in September and had been considered and endorsed by the BTVLEP Board on 22 September 2017.  The document was attached as an appendix to the Cabinet agenda.

The report had also been agreed by Buckinghamshire County Council at the Cabinet meeting held on 23 October 2017.  The strategy was set out in two timeframes 2017-2030 and 2030-2050, and detailed the following ambitions:

·                    Deliver up to 105,000 new homes over the lifetime of the strategy.

·                    Address housing, infrastructure and skills constraints on growth.

·                    Enable the constituent parts of the Buckinghamshire economy to work together, strengthen the economic eco system and capitalise new regional growth opportunities.

·                    Increase the value of the local economy from £15bn per annum to £35bn per annum by 2050, a £4.5bn increase over a business as usual scenario.

·                    Ensure that economic prosperity drives future growth in Buckinghamshire.

Mr Richard Harrington, Chief Executive of BTVLEP attended the meeting to provide an overview of the key elements  ...  view the full minutes text for item 5.

Councillor Bowles

Cabinet Member for Economic Development and Regeneration

To consider the attached report.

Contact Officer:  Teresa Lane (01296) 585006

(a)          Decision(s)

That the draft Business Plan for Aylesbury Vale Estates (AVE) for 2017/18 be approved.

(b)          Reason(s) for Decision(s)

The Council’s consent to the annual Business Plan is a requirement of the AVE agreement.

(c)        Alternative Options Considered

Not to approve the Plan.  However, Cabinet was satisfied with the Plan.  Representatives of the Asset Management Agents were present at the meeting to respond to questions from Cabinet Members.

(d)       Relevant Scrutiny Committee

Economy and Business Development.  That Committee had been given an opportunity to consider the draft Business Plan at its meeting on 22 November, 2017 and had commended it for approval.

(e)        Conflicts of Interest / Dispensation(s)

Councillor Mrs Ward as a Director on the AVE Board.  Councillor Mrs Ward took no part in the discussion or voted on the item.

Consideration was given to a report on the Aylesbury Vale Estates (AVE) draft Business Plan for 2017/18 submitted also to the Economy and Business Development Scrutiny Committee on 22 November, 2017.  The Scrutiny Committee had had an opportunity to question the asset managers on various aspects of the Plan, including the risk robustness of current projects and debts, specific tenants across the AVE portfolio and on income projections.  In general, the Scrutiny Committee had been satisfied with the draft Plan.  Cabinet was also afforded an opportunity to ask questions of the asset managers.

A copy of the Plan had been circulated as part of the confidential section of the Cabinet agenda.

RESOLVED –

That the Aylesbury Vale Estates Business Plan for 2017/18 be approved.

NOTE:  Councillor Mrs Ward declared a personal interest in this item as a director of AVE and did not vote thereon.

Councillor Mordue

Cabinet Member for Resources, Governance and Compliance

To consider the attached report.

Contact Officer:  Caroline Wheller (01296) 585185

(a)          Decision(s)

That the decision of the Vale Commerce Board to move the company into a state of dormancy and transfer the assets and appropriate IP brands, website etc. back to the Shareholder, and transfer all assets and appropriate IP such as the brands and website back to the Shareholder be acknowledged.

(b)          Reason(s) for Decision(s)

To meet the requirements of the Shareholder Agreement under the Reserved Matters.

(c)        Alternative Options Considered

The option to continue to run Vale Commerce has been considered but discounted noting that at the time of setting up the company the Council’s own commercial function was in its infancy.  The core Council’s capability in this area has grown immeasurably since 2015.  Given the current maturity of the Council’s commercial approach the Vale Commerce concept has been superseded by the delivery opportunities now available to the Council as a whole including the success with My Account.

(d)       Relevant Scrutiny Committee

Finance and Services.

(e)        Conflicts of Interest / Dispensation(s)

Councillor Mrs J Blake, as a company director, who did not vote on this item.

In December, 2015, the Council had agreed to the establishment of a wholly owned company subsequently registered as Vale Commerce Ltd as a vehicle to deliver new commercial services to residents and businesses in the District.  Vale Commerce had gone on to develop a household brand ‘Limecart’ and a business brand ‘Incgen’ and had been successful in securing a small number of subscription customers for both Limecart offering a subscription package based around household cleaning services and Incgen offering business incubation services.

During 2016 and 2017 the business had developed offers that were taken to market and refined accordingly with customer feedback. Unfortunately, it had not been possible to scale the activity in accordance with initial targets.

Vale Commerce had been started to test if conceptually it would be possible to run subscription services for additional residential and business services and this had been achieved.  However, the marketplace was congested and also challenging in terms of a subcontracting model.  To make a success of the approach would require a significant cash injection.  However, on balance and considering the viability of the business and receptiveness of the marketplace, the associated risks and costs of doing so were outweighed by the benefits.  As such the Board had recommended to the Shareholder that the company trading was suspended and the company put into a dormant state.

A copy of the Board report had been circulated as part of the confidential section of the Cabinet agenda.

The Company did not employ staff directly but used fulfilment partners to deliver the services.  High level lessons learnt from running the company included maintaining quality though partners, scheduling to meet customer requirements, understanding the market appetite, and the need for speed of reaction to changes in the market.  The experience developed through running the company and the wider commercial activities across the council would be shared with Members at a future seminar.  It would also feed into the Audit ‘review’ following Council’s resolution in December 2017.

The Council, as the shareholder, had agreed a loan to Vale Commerce Ltd of £50,000.  This had been used to fund equipment, the development of brands and the website as well as the development of the services that had been offered.  At the end of the first year the company recorded a loss of £37,000 which was not unusual for a start up company.

In the current financial year the company had traded and generated new income through the AVDC commercial team, mainly through Council to Council to sales.  The total council spend since its creation of £115,000 was netted off by the commercial team income for the year.  The income invoiced and committed would be sufficient to cover a final loan repayment to the Council to ensure the company was left without liabilities and in a neutral financial position, thereby enabling it to enter dormant status.

The company’s Board of Directors had met on 13 December, 2017, and had decided to move the company into  ...  view the full minutes text for item 7.

The following matter is for consideration by Members "In Committee".  It will therefore be necessary to

RESOLVE –

That under Section 100(A)(4) of the Local Government Act, 1972, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in the Paragraph indicated in Part 1 of Schedule 12A of the Act:-

Item No. 11 – Aylesbury Vale Estates Business Plan

Item No. 12 – Vale Commerce

The public interest in maintaining the exemptions outweigh the public interest in disclosing the information because the reports contain information relating to the financial or business affairs of organisations (including the Authority holding that information) and disclosure of commercially sensitive information would prejudice negotiations for contracts and land disposals or transactions.

RESOLVED –

That under Section 100(A)(4) of the Local Government Act, 1972, the public be excluded from the meeting for the following items of business on the grounds that they involved the likely disclosure of exempt information as defined in the Paragraph indicated in Part 1 of Schedule 12A of the Act:-

Aylesbury Vale Estates draft Business Plan (Paragraph 3)

Vale Commerce (Paragraph 3)

The public interest in maintaining the exemptions outweighed the public interest in disclosing the information because the reports contained information relating to the financial or business affairs of organisations (including the Authority holding that information) and disclosure of commercially sensitive information would prejudice negotiations for contracts and land disposals or transactions.

Councillor Bowles

Cabinet Member for Economic Development and Regeneration

To consider the attached confidential report.

Contact Officer: Teresa Lane (01296) 585006

As referred to elsewhere in these Minutes consideration was given to the draft Business Plan of Aylesbury Vale Estates, attached to the confidential part of the Cabinet agenda.

Councillor Mordue

Cabinet Member for Resources, Governance and Compliance

To consider the attached confidential information.

Contact Officer:  Caroline Wheller (01296) 585185

As referred to elsewhere in these Minutes consideration was given to the report to the Vale Commerce Board, attached to the confidential part of the Cabinet agenda.