Agenda, decisions and draft minutes

The Leader welcomed everyone to the meeting and hoped that 2021 would be more positive with the roll out of the vaccination programme and return to some normality.

At the Leader’s request the Chief Executive gave an overview of the current situation with regard to Covid-19 in Denbighshire and Wales more widely.  The latest figures indicated there was cautious optimism that the peak of infections had been reached in terms of the number of infections but there were still a significant number of residents extremely ill with Covid-19 in hospital.  Denbighshire’s case rate was 369.7 per 100,000 population compared to 406 the previous week, which was above the Welsh average of 306.1, but infections rates were falling across most of Wales.  The vaccination rollout was continuing at pace with 27,000 people vaccinated in North Wales which were almost exclusively in the highest risk groups, with a further 35,000 vaccinations planned for the current week resulting in a higher level of protection in care homes.  However Covid-19 still remained within communities and everyone was asked to reinforce important messages regarding social distancing, mask wearing, hygiene measures and limiting contacts.

There were no apologies.

There were no apologies.

Councillors Bobby Feeley and Huw Hilditch-Roberts declared a personal interest in agenda item 6 – Establishment of Sport North Wales Partnership because they were directors of Denbighshire Leisure Limited.

Councillors Bobby Feeley and Huw Hilditch-Roberts declared a personal interest in agenda item 6 – Establishment of Sport North Wales Partnership because they were directors of Denbighshire Leisure Limited.

No urgent matters had been raised.

No urgent matters had been raised.

To receive the minutes of the Cabinet meeting held on 15 December 2020 (copy enclosed). 

RESOLVED that the minutes of the meeting held on 15 December 2020 be received and confirmed as a correct record.

The minutes of the Cabinet meeting held on 15 December 2020 were submitted.

RESOLVED that the minutes of the meeting held on 15 December 2020 be received and confirmed as a correct record.

To consider a report by Councillor Brian Jones, Lead Member for Waste, Transport and the Environment (copy enclosed) seeking Cabinet agreement to sign up to the Bus Emergency Scheme 2 to secure financial support for the bus sector and establish a relationship with Flintshire County Council as the lead regional authority.

RESOLVED that Cabinet –

(a)       agrees to the principles of the Bus Emergency Scheme 2 agreement (as detailed in Appendix 2 to the report) to secure (conditional) financial support for the bus sector and to establish a relationship with Flintshire County Council as the regional lead authority and signatory that ensures that the ongoing emergency funding meets the authority’s priorities and is delivered on its behalf, and

(b)       in due course, to call for a further report on bus reform proposals relating to the future management of bus services in Wales.

Councillor Brian Jones, Lead Member for Waste, Transport and the Environment presented the report seeking Cabinet approval to sign up to the Bus Emergency Scheme (BES) 2 to secure financial support for the bus sector and establish a relationship with Flintshire County Council as the lead regional authority.

The report detailed the wider context and background to the Bus Emergency Scheme including Welsh Government proposals for the future reform of bus services together with details of the (conditional) financial assistance already provided to the bus sector, most recently administered by Flintshire County Council as regional lead authority for North Wales but distributed after regional agreement.  BES 2 represented the next phase within that process with Welsh Government proposing an agreement with operators and local authorities to protect bus services for an initial term up to 31 July 2022 unless market conditions recovered sufficiently that support was no longer required.  Benefits of the agreement would potentially be safeguarding services towards pre-Covid levels and providing a sound legal basis for the additional funding, and offered local authorities some influence over what were formerly commercial services.  It also provided extra capacity for school transport.  Risks included bus operators not signing up but most were close to doing so, and if Denbighshire did not sign up the authority was less likely to be in a position to influence bus service levels and would effectively be out of step with other local authorities in the region.

The following issues were raised during the ensuing debate –

·         in response to questions from Councillor Mark Young the Passenger Transport Manager confirmed that work was currently ongoing with Transport for Wales to ensure democratic accountability going forward and the Lead Member would also be working to ensure Denbighshire’s needs were met and scrutinised.  It was agreed that members be kept informed of future governance arrangements once they had been established.  In terms of the provision of bus services and ensuring passengers felt safe whilst travelling some statistics were provided on passenger levels which demonstrated that travellers were now more confident using bus services, with approximately 10-12% passenger levels during the first lockdown period compared to 23% in the current lockdown.  Reference was also made to the rigorous cleaning regimes to ensure public safety whilst travelling and the introduction of pre-booking seats on some services which gave an added level of confidence.  However it was recognised that it would take time to return to some sort of normality and pre-Covid passenger levels

·         the importance of bus services in rural areas was highlighted which were difficult to sustain and Councillor Brian Jones confirmed that high level discussions were currently ongoing specifically around rural needs and there was also support in that regard from other lead members at regional level.  The Leader thanked Councillor Jones for those assurances and was pleased to note that the impact on rural areas was high on the agenda and that a regional approach may provide an opportunity for a more innovative solution to meet rural needs.  He supported the regional approach given it would provide a more sustainable service and ensure better dialogue with operators on a sub-regional approach

·         the reluctance of some operators to sign up to the agreement was explained given that there was a prescribed profit margin set at 2% which operators felt precluded future investment and concerns that local authorities and Transport for Wales would be able to influence the services operated.  Discussions were ongoing that week with operators and Transport for Wales but given the significance of the scheme it was expected that matters would be concluded and all would  ...  view the full minutes text for item 5.

To consider a report by Councillor Bobby Feeley, Lead Member for Well-being and Independence (copy enclosed) seeking Cabinet’s support in principle for the establishment of the Sport North Wales Partnership.

RESOLVED that Cabinet –

(a)       supports in principle the establishment of the Sport North Wales Partnership and delegates authority to the Head of Legal, HR and Democratic Services in consultation with the Lead Member for Well-being and Independence and Section 151 Officer to approve the terms of the final Inter-Authority Agreement, and

(b)       that Denbighshire Leisure Limited be appointed to represent the Council on the Governance Board of the Sport North Wales Partnership acting as an agent of the Council.

Councillor Bobby Feeley, Lead Member for Well-being and Independence presented the report seeking Cabinet’s support in principle for the establishment of the Sport North Wales Partnership (SNW).

Some background was provided in terms of the role of Sport Wales who had historically provided funding to local authorities and other partners to undertake sporting programmes and interventions.  The report focused on the proposed establishment of a new regional SNW partnership involving other North Wales local authorities and key partners working together with a shared vision for the benefit of the region.  If approved the cumulative funding from Sport Wales (approximately £2.7m per annum) would be directed through SNW with indicative total 5 year funding from 2021/22 to 2025/26 being £13,529,494.  Councillor Feeley referred to Denbighshire Leisure Limited’s involvement in the partnership and took the opportunity to pay tribute to staff in their response to the challenges faced and their participation in other service areas in response to the coronavirus pandemic.

The Head of Legal, HR and Democratic Services guided members through the legalities of the report including the principle of the SNW and terms on which it would operate, drawing particular attention to the model to be adopted with Conwy County Borough Council proposed as host authority together with the basis of the funding and governance arrangements.  It was recommended that Denbighshire Leisure Limited (DLL) represent the Council on the Governance Board given their expertise and functions carried out on the Council’s behalf.  Regular reports would be made by DLL through contract management meetings and the Strategic Governance Board.  The timescales for approval of the Inter-Authority Agreement by 22 January 2021 had resulted in a proposed amendment to the report recommendation to grant delegated authority in that regard.  A template report had been produced for authorities to seek approval of the proposal through their democratic processes and the reference to Wrexham in paragraph 4.1 had been included in error and should be disregarded.

The Leader referred to the importance of ensuring clear accountability as set out by the Head of Legal, HR and Democratic Services and noted that if Denbighshire did not participate they would be unable to exert any influence but there was a risk that local priorities may be diluted as a result of a regional approach.  He stressed the importance of the Council’s representative on the Governance Board highlighting local needs and aspirations going forward.  The Head of Legal, HR and Democratic Services confirmed that the activities funded through the SNW were being delivered by DLL for the Council and governance structures were in place ensuring continual dialogue between DLL and the Council in that regard.  In terms of the regional approach, North Wales was a pilot and Sport Wales intended to establish five regional partnerships across Wales.  The initial term of the agreement was five years and would automatically end after that time unless all partners agreed to extend it or if before the period of five years all partners agreed to terminate it.  In response to further questions regarding funding members were advised that Sport Wales would provide funding to the SNW to distribute across the region; the Council was not contributing to any funding costs in that regard.

RESOLVED that Cabinet –

(a)       supports in principle the establishment of the Sport North Wales Partnership and delegates authority to the Head of Legal, HR and Democratic Services in consultation with the Lead Member for Well-being and Independence and Section 151 Officer to approve the terms of the final Inter-Authority Agreement, and

(b)       that Denbighshire Leisure Limited be appointed to represent the Council on the Governance Board  ...  view the full minutes text for item 6.

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) seeking Cabinet approval for the Denbighshire Housing annual rent increase, the Housing Revenue Account Capital and Revenue Budgets for 2021/22 and Housing Stock Business Plan.

RESOLVED that –

(a)       the Housing Revenue Account Budget for 2021/22 (Appendix 1 to the report) and the Housing Stock Business Plan (Appendix 2 to the report) be adopted;

(b)       rents for Council dwellings be increased in accordance with the Welsh Government Policy for Social Housing Rents to an average weekly rent of £93.89 with effect from Monday 5 April 2021;

(c)        the additional report (Appendix 3 to the report) on Cost Efficiencies, Affordability and Value for Money be noted, and

(d)       Cabinet confirms that it has read, understood and taken account of the Well-being Impact Assessment (Appendix 4 to the report) as part of its consideration.

Councillor Julian Thompson-Hill presented the report seeking Cabinet approval for the Denbighshire Housing annual rent increase, the Housing Revenue Account Capital and Revenue Budgets for 2021/22 and Housing Stock Business Plan.

Councillor Thompson-Hill guided members through the report elaborating upon the budget figures and income level assumptions calculated to enable delivery of revenue services, the capital investment programme to maintain housing quality standards and to develop the new build programme.  In terms of the annual rent increase the Welsh Government announced a five year rent policy in December 2019 for social housing rents and the setting of rents had been calculated taking that policy into account and the mechanism for uplifting rents.  The uplift for 2021/22 was 1.5% resulting in an average weekly rent of £93.89 (average weekly rent increase £1.38).  There was no proposal to use the discretionary charge of up to £2 per week for properties.  As part of the rent setting process consideration had been given to affordability for tenants, value for money and an assessment of cost efficiencies.  The annual review of the Housing Stock Business Plan showed it remained robust and financially viable and there were sufficient resources to support the housing service and the investment needs of the stock. 

The Lead Officer – Community Housing highlighted the need to balance the level of rent increase to meet future costs against affordability for tenants.  Due to the level of inflation it was the lowest rent increase for some time and for tenants in receipt of housing benefit the benefit entitlement would rise to cover the rent increase.  The overall service charges, whilst varying between properties, had decreased slightly.

During consideration of the report the following issues were further discussed with Councillor Julian Thompson-Hill and Lead Officer – Community Housing –

·         Councillor Mark Young stated that it was honest report which clearly set out the reasoning behind the rent increase but he sought further assurances regarding the affordability element, particularly given the potential reduction in Universal Credit payments and financial hardship faced by tenants.  He was advised that regardless of the level of Universal Credit if tenants were eligible for the benefit any increase in the rent and service charge would be covered.  Assurances were provided that the service had been proactively supporting tenants and affordable repayment terms were offered if they fell into arrears with no threat of legal action.  Tribute was also paid to Citizens Advice Denbighshire in providing value support and budgeting advice for tenants.  All Registered Social Landlords in Denbighshire had the same responsibilities in terms of decarbonisation standards and housing stock investment but the Council’s rents were lowest with no lesser service provided.  Previous years’ data showed the Council’s rents to be on the lower end of the scale in terms of Welsh Government target rent and it was likely that more tenants would fall below the target rent this coming year demonstrating an excellent service at a low cost to tenants

·         whilst appreciating the need for an annual review and the case made for the rent increase, Councillor Bobby Feeley questioned the timing of the increase in light of the financial hardship caused by the pandemic and whether it would be possible to shelve the increase until the following year.  It was explained that the legislation did not permit retrospective claiming back of income and next year it would only be possible to consider CPI + 1%, and potentially the £2 discretionary charge, but that would place a bigger increase on tenants in one year rather than spreading it across two years.  It would also result in less income in  ...  view the full minutes text for item 7.

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) setting out the implications of the Local Government Settlement 2021/22 and proposals to finalise the budget for 2021/22.

RESOLVED that Cabinet –

(a)       notes the impact of the Draft Local Government Settlement 2021/22;

(b)       supports the proposals outlined in Appendix 1 to the report, and detailed in Section 4 of the report, and recommends them to the full Council in order to finalise the budget for 2021/22;

(c)        recommends to Council the average Council Tax rise of 3.8% proposed;

(d)       recommends to Council that authority is delegated to the Head of Finance and Property in consultation with the Lead Member for Finance to adjust the use of cash included in the budget proposals by up to £500k if there is movement between the draft and final settlement figures in order to allow the setting of Council Tax in a timely manner, and

(e)       confirms that it has read, understood and taken account of the Well-being Impact Assessment submitted as part of the report.

Councillor Julian Thompson-Hill presented the report setting out the implications of the draft Local Government Settlement 2021/22 and proposals to finalise the budget for 2021/22, including the level of Council Tax.

Councillor Thompson-Hill provided an overview of the budget process and latest budget position and elaborated upon the proposals for consideration and recommendation to full Council in order to set the budget for 2021/22.  The draft settlement had resulted in a positive settlement of +3.6% (compared to the Welsh average of 3.8%) with the final settlement expected on 2 March 2021.  Pressures amounting to £9.903m had been detailed and the impact of using £685k of cash in 2020/21 meant the total shortfall amounted to £10.588m.  The +3.6% settlement generated £5.42m leaving a funding gap of £5.167m with proposals to bridge that gap identified in the report and further explained at the meeting.  A Council Tax rise of 3.8% had been proposed to generate £2.132m additional revenue.  Due to the lateness of the final settlement it was recommended that authority be delegated to enable cash adjustments included in the budget proposals of up to £500k.

The Head of Finance and Property added that the budget was very much business as usual with an assumption that a level of Welsh Government support would be forthcoming if Covid-19 related pressures continued.  He also confirmed there would be early engagement with members on the budget process for next year.

Main areas of debate focused on the following –

·         Councillor Mark Young referred to the funding shortfall and years of funding cuts to local authority budgets and he questioned the sustainability of future service delivery and sought an update on previous requests for a three year budget to aid future financial planning.  The Leader responded that the positive settlements over the last two years had to be appreciated, particularly given the current financial situation faced by both UK and Welsh Governments.  There had been regular and positive dialogue with Welsh Ministers throughout the pandemic and they understood the challenges and pressures faced by local government and Welsh Government had been supportive in the way they had responded and reacted to the Covid-19 situation.  However the forthcoming Welsh Parliament election may result in a change Minister which could have a significant impact.  The Chief Executive welcomed the funding settlement which enabled the authority to cover most service pressures for 2021/22 but there was no guarantee that emerging pressures from Covid-19 related income loss would be met.  If future settlements were not sustained at such a level to meet increasing pressures, particularly in social care, difficult decisions would need to be made.  In terms of a three year settlement the Head of Finance and Property explained that the original proposal for a comprehensive spending review had been delayed due to Covid-19 and a one year settlement had been announced by the Chancellor last November.  Welsh Government would need a three year indication of their figures from the UK Treasury to realistically be in a position to provide a three year settlement for local government going forward

·         Councillor Glenn Swingler referred to year on year savings made by schools and felt it was not appropriate to seek further savings in light of the difficulties faced in responding to Covid-19 and he queried the amount of investment made within schools.  In terms of the overall savings package he asked whether it could be revisited to further consider the affordability element for residents.  The Lead Member for Finance clarified that work had been ongoing with the School Budget Forum (SBF) for some time, as in previous years, to deliver the  ...  view the full minutes text for item 8.

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) detailing the latest financial position and progress against the agreed budget strategy.

RESOLVED that Cabinet note the budgets set for 2020/21 and progress against the agreed budget strategy.

Councillor Julian Thompson-Hill presented the report detailing the latest financial position and progress against the agreed budget strategy as outlined below –

·        the net revenue budget for 2020/21 was £208.302m (£198.538m in 2019/20)

·        an overspend of £2.242m was forecast for service and corporate budgets

·        highlighted current risks and assumptions relating to individual service areas together with the financial impact of coronavirus and Leisure ADM budgets

·        detailed required savings and efficiencies of £4.448m agreed including corporate savings relating to triennial actuarial review of Clwyd Pension Fund (£2m); 1% schools savings (£0.692m); service savings (£1.756m)

·        provided a general update on the Capital Plan, Housing Revenue Account and Housing Capital Plan.

Councillor Thompson-Hill explained that there had been no significant movements since the previous month’s finance report.  The £2.242m forecasted overspend had assumed no additional funding from Welsh Government (WG) and the figures would be updated when that funding had been received in line with previous practice.  In terms of Capital Projects most were progressing in line with expectations and with regard to Rhyl Queen’s Market Redevelopment the WG had confirmed an additional £1.5m (over and above the £5m provisional allocation) which meant phase 1 of the project was fully funded.  The planning application submitted was for the entire project.  Finally reference was made to the various grant regimes administered by the Council on behalf of WG relating to Covid-19 over the last ten months with money paid out by local authorities exceeding £1bn and Denbighshire having paid out around £52m to businesses.  This was testament to the Revenues and Benefits Team working above and beyond and tribute was paid to staff in that regard.

Councillor Mark Young highlighted the excellent support and prompt response provided by the Council to businesses but queried whether any additional financial support would be forthcoming from WG given the continued closure of businesses and hardship caused as a result.  It was explained that the funding announced by WG covered the period of lockdown to 29 January and it was assumed that a further round of funding would be made available in the event lockdown continued after that date but WG had yet to make any announcements in that regard.  As soon as any more information became available it would be shared with members.

RESOLVED that Cabinet note the budgets set for 2020/21 and progress against the agreed budget strategy.

RESOLVED that Cabinet’s forward work programme be noted.

The Cabinet forward work programme was presented for consideration and it was noted that the ‘Contract Procedure Rules’ item would be rescheduled from February to a future meeting pending consideration by the Corporate Governance and Audit Committee.  In response to a request from Councillor Meirick Davies the Leader agreed to arrange for previous reports on ‘Changes to the Street Naming and Numbering Policy’ scheduled for the next meeting to be sent to him directly.

RESOLVED that Cabinet’s forward work programme be noted.

The meeting concluded at 12.30 hrs.