Decisions

Apologies for absence were received from Councillor Sarah Mead.

There were no declarations of interest.

The Committee considered the decisions on the following matters arising from the Executive meeting held on 18 November 2020.

Minutes of the Executive – 6 October 2020

Noted.

Minutes of Overview & Scrutiny Committee and Select Committees

Noted.

Covid-19 – Update

The Strategic Director (RP), assisted by the Strategic Director (CF), responded to a number of questions raised by Members as follows:

·        Mass vaccination centres – it was confirmed that, should there by icy weather conditions over the winter months, it would be the responsibility of HCC to grit/salt highways in the vicinity of mass vaccination centres, but that SBC would be responsible for the gritting/salting of non-highway areas surrounding Neighbourhood/Community Centres should any of these be required for use as vaccination centres;

·        Covid Tier System – the Government was due to announce the new Tier system on 26 November 2020, and it was expected that Hertfordshire would be in Tier 2.  The tiers were based on a number of factors (including numbers testing positive, current and projected hospital admissions, etc.), and the Government had indicated that the allocation of areas into tiers would be a central decision, with it being unlikely that individual areas would be permitted to contest this decision;

·        Covid Suppression Plan for Stevenage – in terms of the county-wide Tactical Co-ordinating Group, Stevenage was a Priority 2 area, and the Group’s focus was currently directed towards Priority 1 areas, such as Broxbourne and Three Rivers.  Analysis showed that a significant proportion of Stevenage Covid cases was due to general community transmission; and

·        Discretionary financial support for mobile businesses – the Additional Restrictions Grant Scheme would be intended to assist those businesses adversely affected by the pandemic in terms of them having received little or no support funding.  Once the Scheme was signed off, this would give SBC the ability to provide support to such businesses, although it was stressed that SBC’s total grant funding for this purpose was £1.75Million (up to 31 March 2021).  Information on how to apply for support funding would be available on the Council’s website, and applicants would also be able to contact the Shared Revenues & Benefits Service.

Biodiversity Supplementary Planning Document (SPD): Public Consultation

In response to Members’ questions, the Principal Planning Officer replied as follows:

·        The formula/metric for 10% net biodiversity gain would be used following an audit of each application site; the biodiversity of each site would be graded according to numerous criteria, including quality and distinctiveness; the assistance of the Herts & Middlesex Wildlife Trust would be sought on large applications;

·        The Principal Planning Officer undertook to include more information about the DEFRA metric and how it was used to grade the biodiversity of a site in the SPD prior to its adoption.  This suggestion would be recorded as a formal response to the consultation; and

·        The definition of minor amendments to the SPD prior to publication for consultation relating to textual, grammatical or formatting errors;  it was anticipated that any major changes required to the document would be picked up through the public consultation process.

Developer Contributions Supplementary Planning Document (SPD): Public Consultation

In response to Members’ questions, the Principal Planning Officer replied as follows:

·        The situations where Section 106 payments would be required in addition to Community Infrastructure Levy (CIL) payments would be where specific site mitigation would be required (such as the Town Centre Primary Education required as part of the SG1 development, as opposed to a more general primary education requirement across the town);

·        It was recognised that, despite the use of CIL, there would invariably be an infrastructure funding gap, although other funding streams (such as Sports England) could be investigated;  the Council was committed to re-visiting the CIL rates in future years, following its introduction.

Hertfordshire Growth Board – Proposed Future Governance Arrangements

In reply to Members’ questions, the Borough Solicitor, assisted by Strategic Directors, responded as follows:

·        The Growth Board would be concerned with major infrastructure issues, and would be limited in its remit to lobby the Government regarding the status of specific planning applications (such as the SG1 application), which were the responsibility of individual local authorities with planning powers; and

·        In relation to the Government Spending Review announcement and the £4Billion levelling up fund, and the need for support of Local MPs, could this put the Town Fund Deal and ability to access the funding it required at risk, it was confirmed that the Town Deal was covered by a clear guidance and a prospectus as how bids would be considered by the Government.  Further details in respect of the £4 Billion fund were awaited, but related to projects that had to be delivered within the lifetime of the current Parliament (and the media had indicated with local support from the community and the MP), and included projects such as new by-passes; upgrading of railway stations; more libraries, museums and galleries; and improved high streets and town centres.

Mid Year Review of 2020/21 Treasury Management Strategy

The Strategic Director (CF) advised that the Government had announced its review of PWLB, which included councils being prevented from borrowing to invest for yield, essentially for commercial investments.  If councils were not doing that then the Government was now minded to reverse its 1% increase in PWLB borrowing rates.  The downside was that if councils were borrowing from other sources for investment purposes then the opportunity to borrow from the PWLB would be forfeited.

In reply to a question, the Strategic Director (CF) confirmed that the closure of the Amundi Money Market Fund (based in Luxembourg) was due to Brexit.  In future, funds would need to be invested in UK-domiciled money market funds.

Housing Revenue Account Medium Term Financial Strategy Update (2020/21 – 2024/25)

Noted.

Second Quarter Revenue Monitoring Report 2020/21 – General Fund

Noted.

Second Quarter General Fund Capital Monitoring Report 2020/21

Noted.

Urgent Part I Business – SG1 Planning Application

Noted.

The background documents to support the review were noted.

The Committee received a presentation from the Council’s Business Relationship Manager, Mena Caldbeck, on the impact of the Covid-19 pandemic on economic development in Stevenage and on the Council’s response.

The presentation covered a wide range of data this included:

·       A snapshot of national economic data regarding the effect of the pandemic

·       Government Support Measures including small business grant; discretionary grant; retail, hospitality & leisure business rate relief; job retention scheme; self-employment income support scheme; bounce back loan scheme; business interruption loan scheme; time to pay scheme; VAT deferral; deferral of self-assessment payment; Kickstart Scheme (work placement for 16-24 year olds); flexibility to pay back loans; support to stop evictions

·       Analysis of a local business survey that was undertaken in August 2020 with 145 businesses completing the survey, including micro, SME’s & large businesses from all sectors

·       The Survey provided information on the following areas: what were businesses current concerns; numbers furloughed; self-employed; agency workers; businesses returning to full staff numbers; how local businesses were accessing government support measures; what adaptations businesses had made to their business during the pandemic

·       Part of the survey had been to ask businesses what they thought should be the key priorities for the Council with regard to supporting the business community

Members raised questions and comments covering a range of issues which the Business Relationship Manager responded to:

·       what particular skills, upskilling and retraining can the Borough Council do to help the local workforce?

·       What can the Council and its partners like CVS & CAB do to help deliver practical solutions to change people’s lives if that person has been made redundant or can’t find employment?

·       How many of the Government support measures that were referred to in the presentation are administered by the Council? The Strategic Director Finance offered to circulate to the Committee the latest Member dashboard that details all of the schemes that the Council is involved in administering.

·       What mechanisms are there for smaller businesses to take on traineeships for young people and apprenticeships, if they have to take on 30 new employees to qualify for the £1.5K to £2K payments?

It was RESOLVED:

(1)  That the presentation be noted; and

(2)  That the Strategic Director Finance would circulate to the Committee the latest Member dashboard that details all of the schemes that the Council is involved in administering to help businesses and individuals during the pandemic.

The Committee agreed the draft scope of the review as presented to them with the following changes and additions:

The Chair indicated that he proposed an additional issue be added to the focus of the review, namely that the review should assess the impact of the work that the Council and its partners are doing in response to the pandemic to enhance the wellbeing of the local workforce, the business community and the people of Stevenage.

The Committee agreed to look at the question of what has been the economic impact of the pandemic on women.

The Committee agreed to include addressing the issue of matching the skills and aspirations of young people who have been disproportionately affected by the pandemic to the businesses that might thrive and grow post the pandemic.

Cllr Simon Speller offered to head up a sub group with Cllrs Adam Mitchell and Maureen McKay to look at the initiatives to address young people, specifically those who may not get picked up by the more traditional outreaches of schools and the County Council and to look at engaging with outreach teams from local employers to promote STEM subjects and opportunities in secondary schools in Stevenage.

Cllr Loraine Rossati agreed to look into the effect of the pandemic on women assisted by an appropriate officer and Cllr Sandra Barr agreed to look into the work that North Herts College are doing with non-vocational studies and students that do not have clear employment pathways, and it was suggested that a relevant representative of North Herts College be invited as a witness.

The Chair indicated that he wanted 2 witness interview sessions, the first on 13 January with a focus internally with Executive Members and Council officers and then the second on a further date (yet to be determined) with external witnesses from local businesses and citizens affected by the pandemic.

The 13 January session should be with the Leader of the Council, the Executive Portfolio Holder for Economy, Enterprise and Transport, Cllr Lloyd Briscoe, the Strategic Director Finance, Strategic Director Environment, Assistant Director Planning and Regulatory and the Business Relationship Manager. The Strategic Director, Tom Pike agreed to meet up with the Chair and the Scrutiny Officer to map out which officers are dealing with the specific responses to the Economic response to the pandemic and therefore who it would be best to speak to.

For external witnesses the Committee were recommended by the Vice-Chair to speak to a charity called Setpoint Hertfordshire who are based in Stevenage and they visit schools to promote STEM subjects, Helen Spencer was suggested as a contact to interview. Youth Connexions would also be invited for their work with hard to reach young people, Judith Sutton was suggested as a good contact. It was suggested that a representative of a trade union should be included in the list of witnesses.

Regarding equalities and diversity issues it was recognised that many of the characteristic groups have been affected economically and psychologically by the pandemic including the disabled, BAME, younger people, older people etc. and would need to be addressed.

Regarding constraints the issues of resources and staff time is one who may be diverted by urgent work to directly respond to the pandemic as well as time to complete the review, access to the appropriate and available data and access to third party partners such as sixth form and FE colleges to provide insight.

It was RESOLVED:

That the scoping document be agreed with the following additions and amendments:

(1)  That an additional issue be listed in the bullet points for the focus of the review to encapsulate the desire to see what impact the Council and its partners are making to enhance the wellbeing of the local workforce, businesses and its citizens throughout the pandemic;

(2)  That the review assess the economic impact of the pandemic on women, to which Cllr Loraine Rossati agreed to lead on with the assistance from officers;

(3)  That the review assess specifically the impact on young people, with a focus on outreach work to schools on STEM subjects which would be led by a sub group headed up by Cllr Simon Speller and to include the Vice-Chair Cllr Adam Mitchell, Cllr Maureen McKay and with Cllr Sandra Barr who agreed to look into those young people who are left behind and would link up with North Herts College;

(4)  That there would be two main witness interview sessions, the first on 13 January 2021 focusing on internal Member and officer interviews and a second session (date yet to be determined) to interview external witnesses from businesses and the local workforce;

(5)  That the Strategic Director, Tom Pike, the Assistant Director, Steve Dupoy and the Scrutiny Officer agreed to meet with the Chair to map out the interview process, and further evidence required; and

(6)  That the amended scoping document be represented to the Committee at its next meeting of the Committee.

Not required.

Not required.

The Chair accepted a Part 1 urgent business to update the Committee on the Committee’s work programme.

Regarding the Neighbourhood Centres Review the Scrutiny Officer agreed to contact Committee Members to invite them to send any updates they have for the review resulting from their particular ward Neighbourhood engagement meetings.

In response to a question regarding investments within the EU, Officers advised that although one fund in Luxembourg had closed the Council’s Treasury Management Advisors did not anticipate any further problems but that the situation would continue to be monitored.

It was RESOLVED:

1.         That Council be recommended to approve the 2020/21 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 in the report).

In response to a question from the Chair, the Corporate Performance & Improvement Officer (SB) agreed that an interim report would be submitted to the March meeting of the Committee which would include a mid year review of the Council’s response to Covid-19 and a summary of decisions made by the Council during the Pandemic.

It was RESOLVED:

1.         That the progress to date of corporate governance actions to strengthen the Council’s corporate governance arrangements, as identified in the Council’s 2019/20 Annual Governance Statement reported to the Audit Committee on 9 June 2020, be noted.

2.         That the progress to date of service governance actions identified by the 2019/20 Service Assurance reviews carried out at business unit level to strengthen the Council’s service governance arrangements reported to the Audit Committee on 9 June 2020, be noted.

3.         that Officers submit an interim report to the March meeting of the Committee including a mid year review of the Council’s response to Covid-19 and a summary of decisions made by the Council during the Pandemic.

The Assistant Director (Planning and Regulation) submitted a report providing Members with an update to how the S106 allocations could more effectively work.

It was RESOLVED that the report be noted.

In response to a question from the Chair, the SIAS Client Audit Manager agreed that the Community Safety Audit which had been intended for Quarter 1 would be added to the reserve list of audits for this year.

It was RESOLVED:

1.         That the Internal Audit Progress Report be noted.

2.              That the amendments to the Internal Audit Plan, as at 30 October 2020, be approved.

3.         That the status of Critical and High Priority Recommendations be noted.

4.         That the Community Safety Audit which had been intended for Quarter 1 would be added to the reserve list of audits for this year.

The Strategic Director (CF) presented a report updating Members on the Redmond Review and advising Members of any impending changes to future Statement of Accounts and External Audit.

The views of the Council’s Chief Financial Officer (CFO) were reported along with Ernst and Young’s comments on the Redmond Report.

The following issues were raised during the debate:

·         It was noted that the current fee system was not adequate but this could mean fee increases which should be consistent across all councils;

·         The deadline for publishing audited local authority accounts be revisited with a view to extending it to 30 September from 31 July each year. This was seen as a backward step by the CFO as it would impact on other functions provided by the Council such as budget monitoring and medium term planning and budget setting. However, the Audit companies welcomed the change.

·         Whether there was scope to simplify the presentation of local authority accounts prior to communication of the information to council taxpayers/service users.

It was RESOLVED:

(1)  That the outcome of the review is noted by the Audit Committee;

(2)  That the views of the Council’s Chief Finance Officer (CFO) are noted;

(3)  That the views of the Council’s External Auditors are noted.

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 involved 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 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.

The Chair asked for a progress update from Ernst &Young (EY) on the current Audit.

Nick Harris (EY) advised that it had been agreed with the Council’s Chief Finance Officer that in order to safeguard the Audit and due to the impact of the Pandemic and the significant increase in the work required, a further period of time was necessary to conclude the Audit. The Audit Committee/Statement of Accounts Committee meeting originally scheduled for 26 November would now meet in January 2021.

It was RESOLVED that the Minutes of the Audit Committee meeting held on 10 September 2020 be approved as a correct record and signed by the Chair.

Apologies for absence were received from Councillor Dave Cullen.

There were no declarations of interest.