Decisions

The Corporate Performance and Improvement Officer presented a report in respect of the activity carried out in 2022/23 (Appendix A to the report) to strengthen the Council’s corporate governance arrangements, together with corporate governance enhancement for delivery in 2023/24 (Appendix B to the report, which would be reflected in the Council’s 2022/23 Annual Governance Statement to be submitted to the Committee in June 2023.

It was RESOLVED:

1.          That the progress on corporate governance enhancement activity during 2022/23, as set out in Appendix A to the report, be noted.

2.          That the corporate governance enhancement activity identified for 2023/24, as set out in Appendix B to the report, for inclusion in the Council’s 2022/23 Annual Governance Statement, be noted.

The SIAS Client Audit Manager presented a report in respect of a proposed SBC Internal Audit Plan for 2023/24.

In response to a series of Members’ questions, the SIAS Client Audit Manager stated:

·         The reduction in the number of SIAS audit days from 315 to 300 for Stevenage for 2023/24 had been agreed by the SIAS Board, and would be based on key elements of the Council’s Medium Term Financial Strategy.  The number of audit days had been reduced for all partner authorities, which would be reflected in the lower level of fees charged;

·         The innovation introduced by SIAS was in the way it approached its work.  Traditionally, this was very labour intensive, but the use of information technology to analyse data sets negated the need to work through individual transactions;

·         Commercial activities taken on by SIAs included fee paying audit work for a number of Academy schools.  The income received for this work would be shown in SIAS’s Trading Account, and would contribute to keeping costs down;

·         There had been no planned audit for Section 106 Agreements in 2022/23.  There was one planned for 2023/24.  This audit was carried out on a cyclical basis, unlike the annual audits, such as coverage of key financial systems;

·         The Sickness Absence Management audit was an audit covering the risks linked to complying with sickness absence management policies and procedures.

It was RESOLVED that the proposed Stevenage Borough Council Internal Audit Plan for 2023/24, as set out in Appendix A to the report, be approved.

The Committee considered an update from Karen Cunanan (Ernst & Young) in respect of Ernst & Young’s (E & Y) audit results report for SBC for 2019/20.

In response to Members’ questions, Karen Cunanan stated:

·         The intention was to have the 2019/20 SBC Statement of Accounts signed off by 31 March 2023.  The significant outstanding item of work was the outcome of internal consultation with E & Y’s professional practice department on the non-compliance with the minimum decent homes standards; and

·         The unadjusted audit differences set out in the report.  Known differences represented items that could be accurately quantified and related to a definite set of facts or circumstances.  Judgemental differences generally involved estimation and assumptions that were open to interpretation.  The total value of the unadjusted audit differences was below the accepted overall audit planning materiality figure of £1.05Million.

The Committee then received an update report from the Assistant Director (Finance) concerning the 2019/20 SBC Statement of Accounts.

It was RESOLVED that the Ernst & Young audit results report 2019/20 and the changes to the final 2019/20 SBC Statement of Accounts, as outlined in the report of the Assistant Director (Finance), be noted.

The Shared Anti-Fraud Service (SAFS) Manager presented the proposed Anti-Fraud Plan for 2023/24.

The SAFS Manager explained that the lack of statistics relating to 2022/23 performance had been due to a staff shortage.  A new SAFS Data Analyst had recently been appointed, and the next SAFS report to the Committee in the summer would contain statistics, including comparison with previous years.

In reply to a Member’s question, the SAFS Manager commented that the most common types of fraud for SBC related to Revenues and Benefits issues and Housing tenancy fraud (misuse of the Council’s housing stock).

It was RESOLVED that the proposed SAFS Anti-Fraud Plan for 2023/24, as attached at Appendix A to the report, be approved.

None.

It was RESOLVED that:

1.          Under Section 100A 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.          Members considered the reasons for the following reports being in Part II and determined that 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 Audit Committee held on 7 February 2023 be approved as a correct record and signed by the Chair.

Apologies for absence were submitted on behalf of Councillors Graham Lawrence CC and Tom Wren.  Councillor Adam Mitchell CC was substituting for Councillor Lawrence.

There were no declarations of interest.

[Prior to the consideration of this item, Mr Simon Pugh (Interim Borough Solicitor) withdrew from the meeting.]

The Council considered a report seeking approval to the appointment of an Interim Monitoring Officer, in accordance with Section 5 of the Local Government and Housing Act 1989.

It was moved, seconded and RESOLVED that Mr Simon Pugh be appointed as the Council’s Interim Monitoring Officer, with immediate effect and until further notice.

The Council considered a report seeking approval to the Housing Revenue Account (HRA) Budget and Rent Setting for 2023/24.

In moving the motion, the Executive Member for Housing & Housing Development (Councillor Jeannette Thomas) advised that rent levels were usually set using the formula CPI +1%.  For 2023/24 this would have resulted in an increase of 11.1%.  However, along with other housing stock holding local authorities in Hertfordshire, the increase for 2023/24 would be 7%, in recognition of the current cost of living crisis and the cap set by the Government.

The Executive Member for Housing & Housing Development stated that the average 2023/24 rent for Low Start Shared Ownership (LSSO) properties would be £128.75; for social properties £110.78; and for affordable properties £180.65.  Comparing 3-bed Council properties with the private sector showed that private sector rents were on average 114% higher (£283.78 compared to Council rents of £122.41).

The Executive Member for Housing & Housing Development commented that, unlike rent levels, service charges were charged at actual or cost recovery levels.  For 2023/24, they would be increased based on higher inflationary figures and changes in usage.  61% of tenants would have no increase, as they did not use the services, and 29% would have increases of below £2.50 per week.  However, a significant minority were facing increases above this amount, with 6% facing an increase of over £20 per week.  This was mainly due for those that were part of communal heating schemes, and the consequent additional costs of utilities.  The current cost of living crisis and the increased cost of utility supplies had had a dramatic impact on services charges, and the Council would need to monitor/review these costs ongoing, and there remained the possibility of Government intervention as part of its Spring 2023 Budget

In seconding the motion, the Executive Member for Resources, Transformation & ICT (Councillor Mrs Joan Lloyd) advised that the 2023/24 projected HRA Budget would contain a surplus of £1.792Million.  At the end of that year, the HRA’s balance would be £29.170Million.  This balance needed to be held to repay the borrowing that was required when the Government offered the Council the opportunity to purchase its housing stock in 2012; and also for borrowing associated with the Council’s 30 year HRA Business Plan.

The Executive Member for Resources, Transformation & ICT advised that the utilities costs for 2022/23 had also risen, but were not known about when the budget was approved, and hence it was recommended that these increased costs/charges were passed on to tenants for the final 6 weeks of 2022/23.

The Executive Member for Resources, Transformation & ICT explained that borrowing of £10.2Million was planned for 2023/24 to fund the building of more new homes for those on the Council’s waiting list, with further borrowing of £32.4Million in subsequent years.  The borrowing would take place when the Chief Financial Officer considered the time would be right.  Total cost of interest on all loans for 2022/23 and 2023/24 was forecast to be £7.3Million and £8.6Million, respectively.  The growth and services pressures for 2023/24 totalled £2.458Million, as set out in the report

The Executive Member for Resources, Transformation & ICT confirmed that the Chief Financial Officer was content with the projected level of balances, and that the budget proposed was robust, whilst noting that for future years an updated HRA Business Plan would be developed later in the year.

The following points/questions were raised during the debate on the motion:

·         a request for a report regarding the feasibility of a deposit scheme for tenants entering a new or refurbished Council property;

·         future HRA budget reports should set out a breakdown of the number and type of homes owned by the Council within the background section;

·         Paragraph 4.7.5 of the report – additional resource for fencing repairs and confirmation of what caused the backlog of works;

·         Paragraph 4.7.6 – Tree Surveys for Tenanted Gardens – who would pay (the Council or the tenant) if works were required to trees in tenants’ gardens?;

·         Paragraph 4.7.13 – Repairs Complaints Officer – who would respond to Members’ complaints on housing issues and how would the process operate?:

·         Paragraph 4.7.16 – Damp and Condensation Customer Support Officer – why was the officer only being employed for 18 months, and did the Council wait for Government advice and the tragic case in Rochdale before addressing this issue?; and

·         Paragraph 4.17 – Consultation – what consultation had happened or would happen with Council tenants?.

The Executive Member for Housing & Housing Development agreed to provide a full written reply to the points/questions raised, but responded initially as follows:

·         although she was unaware of such schemes being operated by any other social housing provider, she agreed to the request for a report on the feasibility of a tenants’ deposit scheme, and requested that this report be submitted to the Community Select Committee;

·         repairs on void properties were re-charged to the previous tenants, assuming that they could be found;

·         during the Covid-19 pandemic, the Council was undertaking emergency housing repairs only (which excluded fencing), and this had contributed to the backlog of fencing repairs;

·         No decision had yet been taken on the responsibility for paying for any work required to trees in gardens following the Tree Surveys;

·         Stock Condition Survey information was used to inform work on Decent Homes and the Council’s MRC Investment Programme;

·         Damp and Condensation Customer Support Officer – a Team was put in place in 2017 after a thorough review by the Community Select Committee.  Having attended a recent ARCH meeting, a significant number of other local authorities across the UK had damp and mould issues in their housing stock, and were struggling due to the lack of qualified staff available to cover all of the work required.  This was also an issue for the private sector.

In reply to a Member’s question regarding the £1.2Million figure for Corporate and Democratic Costs included in the Budget, the Strategic Director (CF) stated that these included the HRA’s contribution towards the holding and service of committee meetings, the cost of which was apportioned between the HRA and General Fund budgets.

Upon the motion being put to the vote, it was RESOLVED:

1.          That HRA rent on dwellings be increased, week commencing 3 April 2023 by 7%which is an average increase of £7.24 for social rents, £11.82 for affordable rents and £8.42 for Low Start Shared Ownership homes per week (based on a 52-week year).  This has been calculated in line with the Government’s change to rent policy announced in the Autumn Statement as set out in Paragraph 3.3 of the report.

2.          That the 2023/24 HRA budget set out in Appendix A to the report be approved.

3.          That the 2023/24 growth options, as set out in Section 4.7 of the report, be approved.

4.          That the 2023/24 Fees and Charges, as set out in Appendix B to the report, be approved.

5.          That the 2023/24 service charges be approved.

6.          That the minimum level of reserves for 2023/24, as shown in Appendix C to the report, be approved.

7.          That the Rent Increase Equalities Impact Assessments, appended to the report in Appendix D, be noted.

8.          That the increase to the 2022/23 Working Budget of £1,436,500 to fund the pressures detailed at Paragraph 4.3 of the report, be approved.

9.          That the increase in tenant service charges to recover increased utility costs for the last 6 weeks of 2022/23, as set out in Paragraph 4.3.5 of the report, be approved.

10.       That it be noted that, due to the current volatility of the market, utilities charges will be kept under close review throughout 2023/24.

11.       That the contingency sum of £400,000, within which the Executive can approve supplementary estimates, be approved for 2023/24 (increased from £250,000 for 2022/23), as detailed in Paragraph 4.16.5 of the report.

It was RESOLVED that the Minutes of the meeting of the Council held on 14 December 2022 be approved as a correct record and signed by the Mayor, subject to the following amendment:

·         Minute 13 – Questions from Members to Committee Chairs/Portfolio Holders

Question (A) from Councillor Bret Facey re: fuel poverty in Stevenage - the addition as a new first sentence in the answer to Councillor Facey’s supplementary question of the words:

“The Executive Portfolio Holder for Communities, Neighbourhoods and Co-operative Council confirmed that the Kenilworth Close Scheme would deliver a new community centre as part of its final phase, due to commence in late 2023/2024.”

The Mayor welcomed Councillor Conor McGrath to his first Council meeting following his success at the recent Bedwell Ward by-election.  The Leader of the Council added his welcome and congratulated to Councillor McGrath on his successful election.

Apologies for absence were received from Councillors Myla Arceno (Deputy Mayor), Adrian Brown and Baroness Taylor of Stevenage, OBE.

There were no declarations of interest.

The Mayor paid tribute to former Councillor / Alderman Brian Hall, who had served as Leader of the Council from 1968 to 2006, and who had passed away recently.  In September 1996, he was made an Honorary Freeman, the highest honour that a Borough Council could award.  He was awarded the title of Honorary Alderman in July 2007.

The Mayor had been joined by a number of Members and officers at Brian’s funeral on 17 January 2023.  She commended baroness Taylor for stepping forward to cover for the funeral Celebrant who had been stuck in traffic and was unable to attend the service.

The Leader of the Council and a number of other Members spoke in tribute to former Councillor / Alderman Hall.

The Mayor then paid tribute to Nick Parry, former Chief Executive of the Council, who had also passed away recently.  Nick had started with SBC as Head of Planning, and subsequently became Director of Environmental Services.  In 2005 he took on the role of Strategic Director (and Deputy Chief Executive).  Within a few short years, Nick was appointed to the role of Chief Executive, a position he held until his retirement in 2015.

The Leader of the Council and a number of other Members spoke in tribute to Nick Parry.

The Council stood to observe a minute’s silence in remembrance of former Councillor / Alderman Hall and Nick Parry.

The Executive considered a report in respect of the Third Quarter Capital Programme monitoring 2022/23 for the General Fund and Housing Revenue Account (HRA).

It was RESOLVED:

1.          That capital budget re-profiling of £9.006Million from 2022/23 to future years be approved.

2.          That an in year virement of £66,000 to reallocate unspent resources to the Deferred Works Reserve from underspends on vehicles within the SDS Capital Programme be approved.

3.          That an in year virement of £68,000 to reallocate unspent resources to the Deferred Works Reserve from underspends on the Finance & Estates Capital Programme be approved.

4.          That an in year virement of £10,000 to reallocate unspent resources to the Deferred Works Reserve from underspends on the Communities & Neighbourhoods Capital Programme be approved.

5.          That capital budget re-profiling of £12.781Million from 2023/24 to future years be approved.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

The Executive considered a report in respect of the Third Quarter Revenue Budget monitoring 2022/23 for the General Fund and Housing Revenue Account (HRA).

It was RESOLVED:

1.          That the 2022/23 Third Quarter projected net decrease in General Fund expenditure of £205,150 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 the changes to the 2023/24 General Fund budget of £12,000, as set out in Paragraph 4.1.5 of the report, be approved.

4.          That the 2022/23 Third Quarter projected net increase in Housing Revenue Account (HRA) expenditure of £157,730 be approved.

5.          That two virements from the HRA planned maintenance budgets to fund the works to void properties be approved, namely a virement of £250,000 from the decent homes budget and a second virement of £250,000 from the cyclical maintenance budget, as set out in Paragraph 4.4.4 of the report.

6.          That it be noted that the cumulative increases made to the HRA net budget remain within the £250,000 increase variation limit, delegated to the Executive, after the Council endorsed charges made in the January 2023 budget report.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

The Executive considered a report in respect of Corporate Performance for Quarter 3 of 2022/23.

It was RESOLVED:

1.          That the delivery of priorities which form the Future Town Future Council Programme (Appendix A to the report) and service performance across the key themes for Quarter Three 2022/23 (Appendix B to the report) be noted.

2.          That the strategic risk updates (Section 4.6 of the report) be noted.

3.          That the performance challenges in relation to housing voids (Section 4.4.5 of the report), customer services (Section 4.2.5 of the report) and human resources (Section 4.2.13 of the report) be noted, and the planned measures to improve performance be endorsed.

4.          That the Executive Action Tracker (Appendix C to the report) be noted.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

None.

It was RESOLVED:

1.          That under Section 100A 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 the reasons for the following reports being in Part II were accepted, and that the exemption from disclosure of the information contained therein outweighs the public interest in disclosure.

Zero Emission Bus Scheme

At the Leader’s request in advance of the meeting, the Chair invited the Executive Portfolio Holder for Economy, Enterprise & Transport to provide an update on the Zero Emission Bus Scheme.  He conveyed the very challenging news that Arriva had opted not to progress with the Zero Emission bus scheme in Stevenage. 

The Portfolio Holder advised that the Council had been recently notified, by Hertfordshire County Council (HCC), that Arriva planned to withdraw from the Government-funded Zero Emissions Bus programme.  This was very difficult news for the town, local commuters, and those of Members and officers of the Council who had been working very hard to tackle the climate crisis. 

The Portfolio Holder reminded Members that the Government had awarded funding to the HCC and Arriva partnership in March 2022, as one of 12 areas that could bring forward electric or hydrogen buses.  Nationally, this was intended to deliver 943 zero emission buses, from a national fund of £196M.  For Stevenage, this would have meant 27 new, electric, modern and state of the art buses.  At the time, this investment was greatly welcomed by the Council as, with a first-rate new bus interchange and new buses, there was an outstanding opportunity to help tackle climate change, and provide the high quality public transport that local people deserved. 

The Portfolio Holder commented that this followed news from Milton Keynes at the end of 2022, where Arriva had pulled out of the electric bus funding programme planned there too.

The Portfolio Holder stated that the Council was led to believe that lower than expected passenger numbers had made it difficult for Arriva to justify their business case of match funding the Government’s investment.  Without question it was a very challenging time for local buses.  While the overall number of journeys that people made was starting to recover to the 2020 level, it was reported that there had been a slower return of passenger numbers for some local buses, as well as the train network.

The Portfolio Holder was of the view that a good, well-functioning bus network was vital for the town’s economy.  Indeed, around half of all public transport trips were made on buses.  In Stevenage there had been some very difficult impacts, including too few drivers, disruption and delay to bus services.  The Council offered its support to local bus drivers who were doing a great job keeping the town on the move.  However, it was also clear that the country, and Stevenage, needed a properly funded bus strategy.  Without investment into new, climate friendly, and regular buses, a difficult future was envisaged.  It was vital the Government learnt lessons from this zero emissions programme, recognised the damage caused by a lack of drivers and funding, and came up with a long-term plan to protect and improve buses. 

The Portfolio Holder advised that officers were engaging with HCC, who had led this bid, to help consider if there were any solutions or routes forward.

The Executive was extremely disappointed to receive this news, especially in the light of Arriva’s supposed long-term commitment to climate change issues.

It was RESOLVED that the following Minutes of meetings of the Overview & Scrutiny Committee and Select Committees be noted –

Environment & Economy Select Committee – 17 January 2023

Overview & Scrutiny Committee – 24 January 2023

Overview & Scrutiny Committee – 14 February 2023

It was RESOLVED that the Minutes of the meeting of the Executive held on 8 February 2023 be approved as a correct record for signature by the Chair.

Apologies for absence were submitted on behalf of Councillor Richard Henry (Chair).

There were no declarations of interest.