Decisions

None.

None.

Not required.

Apologies for absence were received from Councillors Maureen McKay (Chair), Stephen Booth and Dave Cullen.

There were no declarations of interest.

The Audit Committee and the Statement of Accounts Committee meeting jointly received a presentation from the Finance Manager (Technical) on the Statement of Accounts 2018/19.

The Committees were advised that the Statement of Accounts were still “in audit” as a number of non-material changes were required in respect of how the financial arrangements and valuations relating to the Queensway LLP were reflected in the document.

A copy of Appendix 2 to the report, the draft Letter of Representation was then circulated to Members.

The Assistant Director (Finance and Estates) commented that, because the Statement of Accounts were still “in audit”, the recommendations in the report would need to be amended so that the draft Letter of Representation and Accounts be approved, but that herself and the Chair of the Statement of Accounts Committee be delegated authority to sign off any non-material adjustments to those accounts before publication.

The Assistant Director (Finance and Estates) undertook to provide Members of the Committee with a summary of the non-material adjustments made to the Statement of Accounts.

The Committees were shown how the Council’s accounts were constructed, with key points highlighted and identified.

In answer to a number of questions and queries, Members were advised:

·      The capital spend figure of £14.476M for non-current assets as at 31 March 2019 primarily related to the Queensway redevelopment scheme, but also included other schemes; and

·      The table showing the Pensions Reserve reflected the gap between pension assets and liabilities, which was reviewed on a tri-annual basis;

The Committees then considered the report from the Council’s External Auditors, Ernst and Young.

The Ernst and Young representatives acknowledged Members’ concerns and frustrations with the delay in auditing of the Statement of Accounts, and referred to a helpful letter from the SBC Leader to the Local Government Association Resources Board regarding the sustainability and capacity of audit firms to deliver local government audits going forward.  Members noted that Ernst and Young had participated in similar sustainability discussions with Public Sector Audit Appointments Ltd.

The Ernst and Young representatives answered a number of questions raised by Members, and drew attention to a judgemental difference of £583,000 in relation to the valuation of the Stevenage Swimming Pool.  They would be working with the SBC Finance Team to endeavour to agree on a mutually acceptable valuation level.

The Committees were advised that all audit tasks had been substantially completed, although a number of areas were still to be concluded, as set out in the report, and including final checks on the Group Accounts and Queensway LLP.  However, it was expected that Ernst and Young would be issuing an unqualified audit opinion for both the Council’s accounts and the Value for Money statement.  The aim was to complete the audit within 7 to 10 days of the meeting.

The Ernst and Young representative referred to audit fees to be charged for 2018/19, as set out in Section 9 of the report.  These had increased by £25,000, due to the additional scope and risk profiles regarding the value for money conclusion, Queensway LLP work and Group Financial Statements.

The Assistant Director (Finance and Estates) commented that the Council would be submitting a claim for arbitration to Public Sector Audit Appointments, with a view to seeking compensation for the delays to the audit, which had impacted significantly on SBC Finance Officers due to the need to cancel holidays, re-arrange annual leave etc.

The Chair thanked both the External Auditor and the SBC Accounts Team for their presentations.

Note – At this point in the meeting the Statement of Accounts Committee RESOLVED to adjourn until the rise of the Audit Committee.

With regard to the valuation of the swimming pool, Members re-iterated a wish for a standard approach to be taken in future and requested that this view be fed back to the Statement of Accounts Committee.

The Committee agreed that the Assistant Director (Regeneration) be invited to the next meeting of the Committee to provide an update on the financial risks associated with the Queensway LLP and, in association with this, the Committee received a flowchart/diagram regarding the way in which the financial arrangement between the Council and the LLP worked, together with a copy of the Shared Internal Audit Services audit report on Governance.

The Committee accepted the offer made by the Assistant Director (Finance and Estates) to provide Members with a summary of the non-material adjustments made to the Statement of Accounts.

The Committee noted the Finance Manager (Technical)’s comment that there was a possibility that the audit of the accounts relating to the Queensway LLP for the 2019/20 financial year may involve two external auditors (namely the Council’s external auditor and an auditor appointed by the LLP).

It was RESOLVED:

1.         That the Annual Report to those charged with Governance for 2018/19 and the Annual Governance Statement be recommended to the Statement of Accounts for approval.

2.         That the Council’s Letter of Representation and the Financial Report including the Statement of Accounts 2018/19 be recommended to the Statement of Accounts Committee for approval, subject to the Assistant Director (Finance and Estates) and Chair of the Statement of Accounts Committee being delegated authority to sign off any non-material adjustments to those accounts before publication.

3.         That the Assistant Director (Finance and Estates) be requested to provide Members of the Committee with a summary of the non-material adjustments made to the Statement of Accounts.

4.         That the Assistant Director (Regeneration) be invited to the next meeting of the Committee to provide an update on the financial risks associated with the Queensway LLP and, in association with this, the Committee receives a flowchart/diagram regarding the way in which the financial arrangement between the Council and the LLP works, together with a copy of the Shared Internal Audit Services audit report on Governance.

It was RESOLVED that Councillor Mrs Joan Lloyd be appointed to preside over the meeting which was held jointly with the Statement of Accounts Committee.

The Chair welcomed all attendees to the meeting and a round of introductions was made.

The Chair then invited Christine Donnelly to address the Committee.

Ms Donnelly made a presentation during which she outlined the issues facing sub postmasters, which included competition from alternative service providers, declining letter volumes and a revised payments schedule which had resulted in reduced earnings potential for sub postmasters. 

The Committee was advised that for most locations there was a need for the sub postmaster to have an alternative revenue stream (for example retail) within the premises to make a sub post office economically viable.

The Committee was further advised of a number of activities that local authorities could undertake to support the post office network in their area.

Members then asked a number of questions which included the strategic oversight of the post office network, the vulnerability of post offices located within retail chains, the Crown Office closure program and potential emergency measures to provide post office services to the Old Town.

With respect to the strategic oversight of the post office network the meeting was advised that Post Office Ltd had a longer-standing approach of providing services for the majority of the population within a three miles area, with exceptions made for remote rural areas.  When an application to open a new post office was received an impact assessment on other post offices in the area would be made and the application judged accordingly, to support viability of the existing network.

For those post offices located within retail premises provision of services was at risk from decisions made by the owner of the premises such as the closure of the Waitrose branch in the Old Town.  The Post Office would have no say in such decisions.  However, in respect of independently run post offices, these services could also be at risk from the retirement of either the sub postmaster or the business owner when no successor could be found.

In reply to the question concerning the Crown Office closure program the meeting was advised that Crown Offices had been closed and moved into retail outlets such as W H Smith in most towns of a comparable, and larger, size to Stevenage. 

Contingency arrangements for the provision of post office services for the Old Town were then discussed and the Committee was advised that in certain circumstances Post Office Ltd could provide potentially alternative arrangements where local conditions and Post Office Ltd funding and decision making permitted.  Often this could be in the form of a porta cabin or temporary visit services.   Members requested that Officers pursue this as an option and the Strategic Director undertook to write to Post Office Ltd to request that they consider provision of emergency post office facilities in the Old Town.

The Chair thanked Christine Donnelly for her input to the meeting and then invited Chris Newbitt, manager of the Co-op at Symonds Green to address the Committee.

Mr Newbitt informed the Committee that following the closure of the discrete and secure post office facility in the store the decision to provide a range of post office functions had been taken at the Co-op’s head office as part of its commitment to provide community services.

The Committee was then advised of the issues of providing both post office services and retail sales at the same till and the difficulties of balancing staff and customer expectations against business need.

In reply to a question the meeting was advised that staff had undergone training and adhered to compliance requirements set by Post Office Ltd.

In reply to a further question the meeting was advised that the store was expected to reopen on Tuesday 26 November 2019.

The Chair thanked Chris Newbitt for his input to the meeting and then invited Marie-Claire Clinton, Chair of Stevenage Old Town Business Partnership, to address the Committee.

Ms Clinton advised the Committee that the effect of the closure of the Old Town post office had yet to be fully felt by local businesses although the lack of banking facilities in the Old Town High Street had caused some issues for traders, especially around cash handling.

A reduction of footfall in the High Street had also been noted.

A request for a further update regarding the application for a replacement post office in the Old Town was then made of the Strategic Director, to be requested from Post Office Ltd.

The Committee was advised that the Post Office was actively considering an application to run a Post Office in the Old Town but that further details had not been forthcoming due to reasons of commercial sensitivity.  Additionally a timescale for the reopening was unknown at this stage.

A Member suggested that the Council could lobby the Co-op’s head office to reinstate full post office facilities in the Symonds Green branch.

The Chair thanked Marie-Claire Clinton for her input and then invited the Portfolio Holders present to address the issues raised.

The Committee was advised that there was a clear need for post office services in the Old Town, as expressed by Members, the local community and the view of Post Office Ltd.  Officers confirmed that when new or changed facilities are proposed by the Post Office Ltd, as had been the case in Bedwell with the recent addition of new services, the Council and Members are made aware of this.

It was noted that Post Office Ltd did intend to provide services in the Old Town and it was hoped that the reopening of a post office could be expedited.

With regard to the closure of the Waitrose branch regrets were expressed that neither the Council nor the Post Office had received forewarning of the impending closure.

The Chair again thanked those in attendance, including members of the public, for their input and requested that the issue be revisited at a future meeting of the Committee.

It was RESOLVED:

1.     That Officers be requested to approach Post Office Ltd to seek provision of an emergency post office the Old Town and to provide such assistance as necessary to facilitate the arrangement.

2.     That the subject of post office provision be reviewed at a meeting in the New Year.

It was RESOLVED that the Minutes of the meeting of the Environment & Economy Select Committee held on 3 September 2019 be approved as a correct record and signed by the Chair.

None.

Not required.

None.

It was RESOLVED:

1.  That under Section 100(A) of the Local Government Act 1972, the press and 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 described in paragraphs 1 – 7 of Part 1 of Schedule 12A of the Act as amended by Local Government (Access to Information) (Variation) Order 2006.

2.  That having considered the reasons for the following report being in Part II, it is determined that maintaining the exemption from disclosure of the information contained therein outweighed the public interest in disclosure.

None

It was RESOLVED that the Minutes of the meeting of the Committee held on 4 October 2019 are approved as a correct record for signature by the Chair.

Apologies for absence were received from Councillors P Bibby, CC,

M Downing and J Gardner.  Councillor M McKay served on the Committee in place of Councillor J Gardner.

The Chair gave her apologies for not attending the informal meeting held on 15 November and she indicated that whilst she was to chair this meeting she would not comment on the recommendations in the Part II officer report.

None

Apologies for absence were received from Councillors D Bainbridge and D Cullen and apologies for lateness were received from Councillors M Downing (Chair) and L Rossati.

Councillor A Mitchell CC in the Chair.

There were no declarations of interest.

It was RESOLVED:

1.         That the 2019/20 General Fund Capital Programme net decrease in expenditure of £1.5M be approved, as summarised in Table One, Paragraph 4.1.1 of the report.

2.         That the General Fund net increase of capital expenditure of £2.1M in 2020/21, also as summarised in Table One, Paragraph 4.1.1 of the report, be approved.

3.         That the net increase of £130,000 in the capital expenditure for the 2019/20 Housing Revenue Account, as summarised in Table Three, Paragraph 4.3.4 of the report, be approved.

4.         That the net increase of £262,000 in the capital expenditure for the 2020/21 Housing Revenue Account, also as summarised in Table Three, Paragraph 4.3.4 of the report, be approved.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

In relation to Paragraph 4.2.2 of the report, Officers were requested to amend the title of the “Gresley Way” development to “Blackwell Close” development, in order to avoid confusion with the nearby scheme in East Hertfordshire District Council also known as the “Gresley Way” development.

Members expressed strong concerns about the Government’s continued reduction in the Supporting People Grant, particularly as it most affected the Borough’s older and more vulnerable residents.

It was RESOLVED:

General Fund

1.         That the 2019/20 2^nd Quarter projected net increase in General Fund expenditure of £25,010 be approved.

2.         That it be noted that the cumulative changes made to the General Fund net budget remains within the £400,000 increase variation limit delegated to the Executive.

3.         That it be noted that the 2020/21 ongoing net pressure of £5,180 will be incorporated into the Budget setting process.

Housing Revenue Account

1.         That the 2019/20 2^nd Quarter projected net decrease in HRA net deficit of £88,760 be approved.

2.         That it be noted that the cumulative increases made to the HRA net budget remains within the £250,000 increase variation limit delegated to the Executive.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

It was RESOLVED:

1.         That Council be recommended to approve the 2019/20 Treasury Management Mid Year Review.

2.         That Council be recommended to approve the latest approved Countries for investments list (Appendix D to the report).

3.         That the updated authorised and operational borrowing limits be approved (Paragraph 4.4.7 of the report).

4.         That the updated MRP Policy be approved (Paragraph 4.4.10 and Appendix E to the report).

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

It was RESOLVED that Council be recommended to approve the 2020/21 Council Tax Support Scheme, as proposed within the report.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

In respect of the Future Town, Future Transport Strategy, and with particular reference to cycling in the Town Centre, the meeting was informed that there was already in place a by-law prohibiting this activity.  Members felt that any enforcement or extending of this by-law should be publicised.  Officers were asked to ensure that the Town Centre Neighbourhood Warden was made aware of the by-law, and Members felt that increased signage was necessary in the Town Centre (possibly funded through Members’ Local Community Budgets).  Officers were further requested to investigate the possibility of the introduction of a cycling education programme, in association with the Hertfordshire Constabulary.

Members were supportive of the concept of a property MoT as part of the new Domestic Gas Contract.

It was RESOLVED that the Minutes of the meeting of the Overview & Scrutiny Committee held on 15 October 2019 be noted.

It was RESOLVED that the Minutes of the meeting of the Executive held on 9 October 2019 be approved as a correct record for signature by the Chair.

Town Deals Fund

The Strategic Director (TP) updated the Executive on progress with the Council benefitting from the Town Deals Fund, with regard to the development of a Town Deals Board and Investment Plan.

It was RESOLVED:

1.         That, under Section 100(A) of the Local Government Act 1972, the press and 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 described in Paragraphs 1 to 7 of Schedule 12A of the Act, as amended by SI 2006 No. 88.

2.         That, having considered the reasons for the following items being in Part II, it be determined that maintaining the exemption from disclosure of the information contained therein outweighed the public interest in disclosure.

In response to issues raised by the Chair, officers agreed to investigate the way in which Section 184 decision letters were worded by the Housing Options Service, however, the legal definitions such as “intentionally homeless” cannot be changed as this was a legal requirement.  Officers also clarified that Section 184 of Part 7 of the Housing Act 1996 (as amended) related to a legal decision on each Homelessness application, and was a duty of the Council to meet its obligations under the Act.  Officers were requested to tidy up the wording of the Prevention Duty definition included on Page 15 of the Strategy.

It was RESOLVED:

1.         That the Homelessness and Rough Sleeper Strategy 2019-2024, attached as Appendix A to the report, be adopted.

2.         That delegated authority be given to the Strategic Director (RP) to make minor revisions to the draft Strategy, having consulted the Leader and the Portfolio Holder for Housing, Health & Older People.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

None.

There were no apologies for absence.

There were no declarations of interest.

On behalf of the Council, the Chair conveyed congratulations to Lewis Hamilton for winning the Formula 1 Championship for the sixth time.