Agenda and decisions

There were no apologies for absence.

NOTED

The Chair will consider the admission of any late items of Urgent Business. (Late items of Urgent Business will be considered under the agenda item where they appear. New items of Urgent Business will be dealt with under Item 16 below. New items of exempt business will be dealt with at Item 19 below).

There were no items of urgent business.

NOTED

A Member with a disclosable pecuniary interest or a prejudicial interest in a matter who attends a meeting of the authority at which the matter is considered:

(i) must disclose the interest at the start of the meeting or when the interest becomes apparent, and

(ii) may not participate in any discussion or vote on the matter and must withdraw from the meeting room.

A Member who discloses at a meeting a disclosable pecuniary interest which is not registered in the Register of Members’ Interests or the subject of a pending notification must notify the Monitoring Officer of the interest within 28 days of the disclosure.

Disclosable pecuniary interests, personal interests and prejudicial interests are defined at Paragraphs 8.1-15.2 of Section Two of Part 5 of the Constitution  and Appendix A of the Members’ Code of Conduct.

Mayor Glanville declared a non-prejudicial interest in Item 12 – A Place for everyone – LB Hackney Main Grants 2020/21 and 2021/22 – as an account holder with the London Community Credit Union, and as a Board Member at the Shoreditch Trust.

Deputy Mayor Bramble declared a non-prejudicial interest in Item 12 – A Place for everyone – LB Hackney Main Grants 2020/21 and 2021/22 – as a Board Member at Hackney Playbus.

Councillor Kennedy declared a non-prejudicial interest in Item 12 – A Place for everyone – LB Hackney Main Grants 2020/21 and 2021/22 – as an account holder with the London Community Credit Union, and also an ordinary member of Hackney Wick FC.

Councillor Rennison declared a prejudicial interest in Item 12 – A Place for everyone – LB Hackney Main Grants 2020/21 and 2021/22 – as the Chair of Chats Palace Ltd – and advised that she would leave the proceedings for the duration of the item when considered.

NOTED

On occasions part of the Cabinet meeting will be held in private and will not be open to the public if an item is being considered that is likely to lead to the disclosure of exempt or confidential information. In accordance with the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 (the “Regulations”), members of the public can make representations about why that part of the meeting should be open to the public.

This agenda contains exempt items as set out at Item 17 : Exclusion of the Press and Public.  No representations with regard to these have been received.

This is the formal 5 clear day notice under the Regulations to confirm that this Cabinet meeting will be partly held in private for the reasons set out in this Agenda.

There were no representations received.

NOTED

There were no questions or deputations.

NOTED

To agree the minutes of the previous meeting of Cabinet held on 16 December 2019.

RESOLVED

That the unrestricted minutes of the Cabinet held on 16 December 2019 be confirmed as an accurate record of the proceedings.

This report for Cabinet consideration is a key component of setting the Budget and Council Tax for the forthcoming financial year. The monies available for service delivery in this year depend on the amount of Council Tax that the Council believes will be collected and the Council has carefully estimated this accurately.

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 which require Local Authorities to  record in the minutes how each Councillor voted (including any abstentions) when determining the Council’s Budget,  and the level of Council Tax to be levied, on a roll call vote there being nine for – Mayor Glanville, Councillors Bramble, Burke, Kennedy, McKenzie, Nicolson, Rennison, Selman, and Williams, nil against and no abstentions it was:

RESOLVED

i.  That it be agreed to recommend to Council that in accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, the amount calculated by Hackney Council as its Council Tax Base for 2020/21 be 74,386 Band D equivalent properties adjusted for non-collection, representing an estimated collection rate of 95.5%.

ii.  That it be agreed to recommend to Council that in accordance with The Non-Domestic Rating (Rates Retention) Regulations 2013 Hackney’s non- domestic rating income for 2020/21 be £149,750,650 subject to completion of the NDR1, and comprising three elements;

?  £54,074,195 which is payable in agreed instalments to the Greater London Authority

?  £44,040,077 which is retained by Hackney Council and included as part of its resources when calculating the 2018/19 Council Tax requirement.

?  £51,636,378 which is payable in agreed instalments to Central Government

iii.  that it be noted that changes proposed to the current CTRS scheme in 2020/21 will be reported at agenda item 8 of the agenda;

  iv.  that it be agreed to recommend to Council that the Council Tax Empty Property Premium on properties that have been empty for 5 years or more be increased from 100% to 200%;

v.  that the recommendations on the proposed 2020/21 Business Rates Pool as set out in Appendix 2 of the report be agreed.

REASONS FOR DECISION

Council Tax Base

The rules for calculating the Council Tax Base are set out in the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012. The calculation is based on the valuation list and other information available on the 26^th November 2019.

Firstly, the authority must estimate the number of properties in each band after allowing for exempt properties. These figures are also adjusted to allow for discounts (e.g. single person discount and Council Tax Reduction Scheme) and the impact of changes in discounts and exemptions which allow the Council to charge additional Council Tax to the owners of empty homes and second homes. A formula is then used to calculate the total number of Band D equivalent properties. This gives a higher weighting to properties in bands above Band D and a lower weighting to properties in bands below Band D. This can therefore be thought of as the average number of properties liable to pay Council Tax. The calculation is set out at Appendix 1.

The Authority then must estimate what percentage of the total Council Tax due for the year it will be able to collect. This is usually referred to as the collection rate. This percentage is then applied to  ...  view the full decision text for item 7.

This report sets out the proposed budget and rent levels for the forthcoming financial year. The rent will be increased by CPI + 1% which is in line with Government policy.

RESOLVED

i.  That approval be given to the HRA budget proposals as set out in section 11 and Appendix A of the report ;   

ii.  that approval be given to the increase in rent of 2.7% (CPI + 1%) in line with The Social Housing Regulator’s rent standard and that it be agreed that rents would increase on average by £2.67 from £98.97 per week to £101.64 per week with effect from Wednesday 1st April 2020;

iii.  that approval be given to the increase in HRA fees and charges in line with inflation 1.7% as set out in Appendix B of the report;

iv.  that the level of tenant service charges as set out in paragraph 12.6, and the service charges for the Concierge service as set out in paragraph 12.7 of the report be agreed; 

v.  that authority be delegated to the Group Director of Finance and Corporate Resources in consultation with the Lead Member for Housing in respect of the setting of communal heating charges to reflect the unit costs of utilities; and

vi.  that the Housing Capital Programme budget and spend approval as set out in Section 16 of the report be agreed.

REASONS FOR DECISION

The Local Government and Housing Act 1989 Section 76 requires local authorities with a Housing Revenue Account (HRA) to set a budget for the account, which is based on best assumptions, that avoids a deficit and furthermore to keep the HRA under review.

Local authority rent setting powers are set out in section 24 of the Housing Act 1985, this provides that:

(1)  A local housing authority may make such reasonable charges as they may determine for the tenancy or occupation of their houses.

(2)  The authority shall from time to time review rents and make such changes, either of rents generally or of particular rents, as circumstances may require. 

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED 

The budget has been built from reviewing the base budget and includes current experience with items of essential expenditure, maintenance and investment to preserve the housing service and its assets.

The budget setting for the HRA continues to be challenging due to the previous Government policy to reduce rents by 1% for four years ending 2019/20. Although rents are now increasing by CPI + 1% the effects of the rent reduction policy are still being managed. 

Alternative rent increases were considered in setting the budget, but any reduction to the rent standard set by the Regulator of Social Housing would result in additional savings that would impact on services to tenants, and substantial savings for Central Government in the subsidy of Housing Benefit. This reduction would also have a long term impact on future rent levels and income. 

This report asks Cabinet to note the contents of the report and the financial implications attached to each of the options therein, and in recognising the financial constraints placed on the Council, agree to amend the Council’s current Council Tax Reduction Scheme.

RESOLVED

  i.  That the proposals for changing the Council Tax Reduction Scheme as detailed in the report together with the contents of the report and the financial implications attached to each of the options outlined within the report be noted, and that the report be referred to full Council;

  ii.  that it be agreed to recommend to full Council that recognising the financial constraints placed on the Council, to revise the Council’s current Council Tax Reduction Scheme by reducing the minimum contribution which all working age CTRS claimants have to pay from 17% to 15% of their Council Tax liability; .

  iii.  that commitment to campaigning for the return to a fully funded benefit, paid for by Central government be agreed; and

  iv.  that the ambition that of a  further reduce the maximum contribution to 10% by 2025/26 and move to a fully funded scheme by 2030 be noted.

REASONS FOR DECISION

When the Council agreed to amend the Council Tax Reduction Scheme in 2017 it also committed officers to undertake a review of the revised scheme in 2019.

The Council has recognised the continued impact of welfare reform on some of our poorest communities. Some households with the least financial resources have been hardest hit by government cuts, changes to benefits, and increases in everyday living costs such as food, rent, and utilities. As a result some of our poorest residents are facing financial hardship and have found it difficult to pay contributions towards their Council Tax.

Whilst seeking to provide additional financial support to low income households the scope for amending the scheme is constrained by the need to manage ongoing cuts in Central Government funding with the expectation that funding to Hackney Council from the Government will have decreased from £310 million to £140 million by 2022.

The option of decreasing minimum contributions from 17% to 15% balances both the increasing financial pressures that our low income households face, against the ongoing cuts in government funding. The change will affect working age households only as the Council is legally prevented from making any changes to the scheme that will reduce the level of support payable to a pensioner household.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

As part of the review process, the Benefits & Housing Needs Service commissioned an external consultant, Policy in Practice, to carry out the analytical assessment of the revised scheme and to model the financial impact on the Council and on residents of four options for 2020/21 to 2021/22. These options were:

Rolling forward the current scheme (with the maximum award of 83% of liability) in both years;

Changing the scheme to provide a maximum award of 100% of liability in both years. This is equivalent to the award maximum prior to the Government’s introduction of the localised system in 2013/14;

Changing the scheme to provide a maximum award of 85% of liability in both years. This is equivalent to the award maximum in Hackney from 2013/14 to 2017/18;

Changing the scheme  ...  view the full decision text for item 9.

This report updates Cabinet on the current position of the Capital Programme and seeks spending and resource approval as required to enable officers to proceed with the delivery of those schemes as set out in section 9 of the report.

RESOLVED

i.  That the schemes for Neighbourhoods and Housing (Non) as set out in section 9.2 of the report be approved as follows:

  Parks Equipment and Machinery: Spend approval of £74k in 2019/20 is requested to replace broken and end of life machinery of parks equipment and machinery used for grounds maintenance by the Council’s Parks Operations Department.

Essential Maintenance to Leisure Centres and Leisure Development: Virement and spend approval of £750k (£375k in 2019/20 and £375k in 2020/21) is requested to install a new sports hall floor for Clissold Leisure Centre, replacement of wetside floor tiles to Clissold Leisure Centre and to continue meeting the Council’s landlord obligations in respect of on-going maintenance at Kings Hall Leisure Centre.

Parks Public Conveniences and Cafes: Resource and spend approval for £150k in 2019/20 and further resource approval for £750k (£300k in 2020/21, £225k in 2021/22 and £225k in 2022/23) is requested in order to meet the manifesto commitment in respect of increasing and enhancing the number of conveniences and cafes in the borough’s parks and open green spaces.

Drinking Water Fountains: Resource and spend approval for £112k in 2019/20 is requested in order to meet the commitment to expand the number of water fountains in the borough located in parks, libraries, leisure centres and street locations.

Hackney Museum Refurbishment: Resource approval for £350k (£150k in 2020/21 and £200k in 2021/22) is requested in order to help meet the manifesto commitment to redevelop the Hackney Museum in order to ensure that it remains fit for purpose and to provide further opportunity for audience engagement and the use of digital technology.

London Fields Learner Pool: Resource approval of £4,500k (£200k in 2020/21, £2,150k in 2021/22 and £2,150k in 2022/23) is requested in order to meet the manifesto commitment to develop a new learner/training pool to expand and complement the current offer in the main pool.

Stoke Newington Library Refurbishment: Resource approval of £4,500k (£2,686k in 2020/21 and £1,343k in 2021//22) is requested in order to meet the manifesto commitment to bring forward improved facilities at the Stoke Newington Library in order that the facility remains fit for purpose in the future.

ii.  that the re-profiling of the budgets as detailed in para 9.3 be noted and as detailed in Appendix 1 of the report be approved as follows:

iii. That the capital programme adjustments summarised below set out in detail in para 9.4 of the report be approved accordingly:

iv.That the S106 schemes as set out in section 9.5 of the report and summarised below be given resource and spending approval as follows:

This is the sixth Overall Financial Position (OFP) report for 2019/20 and is based on detailed November 2019 provisional outturn monitoring data from directorates. We are forecasting an overspend of £6,202k at year end. 

RESOLVED

i.  That the update on the overall financial position for November 2019, covering the General Fund and the HRA, and the earmarking by the Group Director of Finance and Corporate Resources of any underspend to support funding of future cost pressures and the funding of the Capital Programme be noted; and

ii.  That approval be given to the recommendations for the property proposal as set out in Exempt Appendix 1 of the report.

  REASONS FOR DECISION

  To facilitate financial management and control of the Council's finances and to approve the property proposal.

CHILDREN, ADULT SOCIAL CARE AND COMMUNITY HEALTH (CACH)

The CACH directorate is forecasting an overspend of £5,650k after the application of reserves and drawdown - an increase of £389k from the previous month.

Children & Families Service

Children & Families Service (CFS) is forecasting a £1,777k overspend after the application of reserves and grants and is an increase of £215k from the previous month. The draw down from reserves includes:

?  £2,300k from the Commissioning Reserve, set up to meet the cost of placements where these exceed the current budget.

?  £1,100k for additional staffing required to address a combination of increased demand across the service and management response to the Ofsted focused visit earlier in the year.

?  £330k is drawn down to offset pressures in relation to the increase in young people currently held on remand. 

The sustained pressure on CFS budgets is a position that is not unique to Hackney, as shown by the results of a survey on Children’s Social Care spend carried out jointly by the Society of London Treasurers (SLT) and the Association of Directors of Children’s Services (ADCS). The graph below shows how Hackney’s year end position for 2018/19 (before the use of reserves) compared to other London boroughs for Children’s Social Care.

The main budget pressures in CFS are in relation to looked after children (LAC) placements within Corporate Parenting, young people held on remand within Youth Justice and staffing in several areas across the services. Further details are set out below.

Corporate Parenting is forecasting to overspend by £1,360k after the use of commissioning reserves and one-off staffing reserves. This position also includes the use of £1,200k of non-recurrent Social Care funding that was announced in the October 2018 Budget. Spend on LAC and Leaving Care (LC) placements (as illustrated in the table below) is forecasted at £20,500k compared to last year’s outturn of £18,300k – an increase of £2,200k.

Table 2: Placements Summary for LAC and Leaving Care

This report that outlines the recommendations for the Main and Specialist Grants funded through the 2020-21/22 Voluntary and Community Sector (VCS) Grants Programme.

RESOLVED

i.  That the schedules of grant awards totalling £2,164,785 as listed in Appendix 1 of the report, for 2020/21 be agreed;

ii.   that approval be given in principle for a second year of funding for some organisations receiving a Main Grant 2020/21, as set out in Appendix 1 of the report, and subject to future budget availability;

iii.   that approval be given to the extension of the Specialist Grants to ensure future alignment with the VCS Strategy following the forthcoming review of grants, as set out in Appendix 1 of the report;  

iv.  that approval be given to the second year of Advice Grants totalling £761,406 and additional transition funding totalling £18,922 for three Advice Service providers;

v.  that it be agreed that £170,000 be ring-fenced for Small Grants including Holiday Playschemes and Community Chest;

vi.  that it be agreed that £131,932 from the programme be invested in maximising the outcomes for the grant and the wider sector through additional officer support;

vii.  that it be agreed that the Council wwould additionally contribute to the London Boroughs Grant Scheme 2020/21,  and that it be noted that the contribution would be in the region of £209,346; and

vii.  that it be noted that approximately £400,000 would be carried forward to increase the available budget for the Main Grants open programme for 2021/22 and to respond to the findings of Grants Review which would be carried out in 2020.

REASONS FOR DECISION

A Place for Everyone open grants programme

The recommendation to launch a Voluntary Sector Grants Programme was agreed by Cabinet on 17 June 2019 based on the budget for 2020/21. In order to accommodate the Council’s budget setting timetable,

recommendations approved at Cabinet on 20 January 2020 will be subject to the approval of the Council’s budget in February 2020.

The Grants Programme also currently invests in a number of activities through Specialist Grants which are awarded directly to organisations. For the smaller organisations currently funded, the grants mostly provide security to give them space to address issues and undertake development work to move towards becoming more sustainable and less dependent on the Council in the future. For the organisations that have an infrastructure remit, the Specialist grant funding recognises their reach across the sector, and is more focussed on their strategic activities to support the Council’s priorities. 

A full review of Specialist Grants was completed in 2017 which identified where investment should be focused in the future. Consideration was given to the impact of these grants through a set of high level questions and assessment against the new Community Strategy and emerging Voluntary and Community Sector Strategy, as a way of appraising and vetting future investment. Rather than review these grants separately from the forthcoming whole programme, these grants will continue for another year from April 2020. Any recommended changes will be reported to Cabinet in June 2021.

In March 2019 Cabinet approved funding for two year grants for Advice Services. The associated delegated powers report set  ...  view the full decision text for item 12.

This report seeks Cabinet approval of the draft Planning Obligations Supplementary Planning Document.

RESOLVED

That approval be given to the draft Planning Obligations Supplementary Planning Document as detailed in Appendix 1 of the report for public consultation.

REASONS FOR DECISION

Consultation with stakeholders and the public is integral to producing a supplementary planning document. It is also required in line with Regulations 12 and 13 of the Town and Country Planning (Local Planning) (England) Regulations 2012. Responses to the consultation will help inform and influence the final version of the Supplementary Planning Document.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

There are no alternative options. The scope of the draft Supplementary Planning Document is defined by policies in the emerging Hackney Local Plan, LP33.

  RESOLVED

That approval be given to the following nomination as set out below;

RESOLVED

That approval be given to appointment of Councillor Polly Billington to the Abney Park Trust.

To consider any items admitted at Item 2 above.

There were no unrestricted items of urgent business.

NOTED

Note from the Governance Services Manager

Item 18  allows for the consideration of exempt information in relation to item 11.

RESOLVED:

That the press and public be excluded from the remainder of the meeting as the item below contains exempt information, as defined under paragraph 3 of Part 1, schedule 12A of the Local Government Act 1972.

RESOLVED:

That the press and public be excluded from the remainder of the meeting as the item 18 below contains exempt information, as defined under paragraph 3 of Part 1, schedule 12A of the Local Government Act 1972.

Item 11 refers

Appendix 1  is exempt from publication under para 3, Part 1, Schedule 12a of the Local Government Act 1972 (as amended).

RESOLVED

That exempt Appendix 1 in relation to agenda item 11 in the unrestricted part of the agenda be agreed and noted.

To consider any EXEMPT items admitted at Item 2 above.

There were no exempt items of urgent business.

NOTED