Agenda item

Report No: COU/WS/19/014

 

(A)    Referrals from Cabinet: 8 October 2019

 

1.      West Suffolk Asset Management Strategy and Plan

 

Portfolio Holders: Cllrs Susan Glossop and Peter Stevens

 

(B)    Referrals from Cabinet: 26 November 2019

 

1.      Draft West Suffolk Strategic Framework 2020-2024

 

Portfolio Holder: Cllr John Griffiths

 

The above item was deferred by Cabinet for further consideration in early 2020 and is therefore not included as a referral on this Council agenda.

 

 

2.      Investing in Housing and Development Sites and Approval of the Barley Homes Business Plan 2019

 

Portfolio Holder: Cllr Sara Mildmay-White

 

3.      Local Council Tax Reduction Scheme (LCTRS) for 2020-2021

 

Portfolio Holder: Cllr Sarah Broughton

 

4.      Council Tax Technical Changes – Including Empty Property Reliefs and Premiums Charges

 

Portfolio Holder: Cllr Sarah Broughton

 

5.      Council Tax Base for Tax Setting Purposes 2020/2021

 

Portfolio Holder: Cllr Sarah Broughton

 

6.      West Suffolk Medium Term Financial Strategy 2020-2024

 

Portfolio Holder: Cllr Sarah Broughton

 

7.      Exempt:Investing in our Commercial Asset Portfolio (para 3)

 

Portfolio Holder: Cllr Susan Glossop

 

The above item was not considered by Cabinet due to the initial proposal contained within Exempt Cabinet Report No: CAB/WS/19/048 being no longer available for consideration and is therefore not included as a referral on this Council agenda.

 

 

 

Council considered the Referrals Report of Recommendations from Cabinet, as contained within Report No: COU/WS/19/014.

 

(A)    Referrals from Cabinet: 8 October 2019

 

1.       West Suffolk Asset Management Strategy and Plan

 

Approval was sought for the adoption of a new West Suffolk Asset Management Strategy and Plan (AMSaP), together with proposed delegations associated with property and asset transactions.

 

The overall strategic approach to investing in, managing and disposing of land and property assets, which was attached as Appendix A to the Cabinet report was proposed to satisfactorily integrate with the Council’s wider policy framework, which comprised key policies such as the West Suffolk Strategic Framework and Medium Term Financial Strategy (MTFS).

 

The accompanying Asset Management Plan, attached as Appendix B, has been produced to satisfactorily address how the strategic approach would be applied through the Plan’s division into nine categories.

 

Appropriate delegations had also been proposed to be put in place for property and asset transactions made from the Investing in Growth Fund, which would align with those previously approved for other investments made utilising the Investing in Growth Fund.

 

Councillor Susan Glossop, Portfolio Holder for Growth, drew relevant issues to the attention of Council including that the Cabinet had recognised the benefits of the adopting the AMSaP, which supported the Council’s behaving more commercially approach contained in the MTFS and considered it would also provide the framework to enable the Council to maximise the value of its existing assets.

 

On the motion of Councillor Glossop, seconded by Councillor Peter Stevens, it was put to the vote and with the vote being 57 for the motion, 0 against and 1 abstention, it was

 

RESOLVED:

 

That:

 

(1)     The West Suffolk Asset Management Strategy attached at Appendix A to Report No: CAB/WS/19/037, be approved; and

 

(2)     the delegations for property acquisitions as outlined in the Asset Management Plan attached at Appendix B, be approved and funded through the Investing in Growth Fund to be brought in line with those for non-property transactions from the same fund, as set out in Section 2.4 of Report No: CAB/WS/19/037.

 

(B)    Referrals from Cabinet: 26 November 2019

 

1.       Draft West Suffolk Strategic Framework 2020-2024

 

Council noted that this item had been deferred by Cabinet to allow for further consideration of amendments proposed during the Overview and Scrutiny Committee meeting held on 14 November 2019. The item was now due to be presented to Cabinet on 14 January 2020.

 

 

2.       Investing in Housing and Development Sites and Approval of the Barley Homes Business Plan 2019

 

Approval was sought for the current development proposals being put forward for Barley Homes; the longer-term approach to developing a pipeline of developments for Barley Homes and endorsement was sought for the funding necessary to deliver these proposals.

 

Barley Homes (Group) Limited was established in February 2016 as a company limited by shares.  Following the Interim Business Plan agreed by councils in 2018, and the creation of West Suffolk Council on 1 April 2019, it was now 100% owned by West Suffolk Council. The primary function of Barley Homes was to generate capital and revenue income through the sale of council owned land and the development of new housing for sale in the West Suffolk area. 

 

When the business plan and governance arrangements for Barley Homes were reviewed in September 2018, it was agreed that a further business plan would be considered in 2019.  This would provide the opportunity to re-evaluate the role of Barley Homes in terms of delivering housing for future sites.  The report provided details on how this was intended to be implemented.

 

Councillor Sara Mildmay-White, Portfolio Holder for Housing, drew relevant issues to the attention of Council, including that details of the proposed Barley Homes development sites were included in the business plan(Exempt Appendix A) which were forecast to deliver an additional (over and above the existing two Haverhill sites) 118 homes, 30% of which would be affordable, and all built to the Government’s minimum size standard.  These would be delivered across two sites, one in Mildenhall and the other near Bury St Edmunds.

 

In recommending these sites, it was noted that this would contribute to the geographical reach of Barley Homes, adding to the committed two sites in Haverhill. Combined, these would generate a steady build out rate, delivering 181 homes over a five year period, starting in autumn 2019.  

 

The Chair reminded Members that should they wish to discuss the specific content of Exempt Appendix A (the business plan), they would need to move into private session.

 

The majority of Members considered it was appropriate to move into private session, therefore at this point, on the motion of Councillor Ian Shipp, seconded by Councillor Diane Hind, and duly carried, it was

 

RESOLVED:

 

That the press and public be excluded during the consideration of the following item because it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during the item, there would be disclosure to them of exempt categories of information as prescribed in Part 1 of Schedule 12A of the Local Government Act 1972, and indicated against the item and, in all circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

 

A discussion was held in private session on:

 

(a)     the merits of ensuring ‘green’ initiatives were incorporated into homes built by Barley Homes whilst ensuring a balance was achieved for providing a minimum of 30% affordable housing and a commercially viable development. Each development would be assessed on a site by site basis in respect of whether suitable environmentally-friendly standards could be included;

 

(b)     recognising the need for social housing as well as affordable housing, an element in which the Council continued to lobby Government for greater provision; and

 

(c)     the cost of borrowing, other financial implications and the commercial benefits to the Council as each site was developed.

 

Back in public session, on the motion of Councillor Mildmay-White, seconded by Councillor John Griffiths, it was put to the vote and with the vote being 54 for the motion, 0 against and 4 abstentions, it was

 

RESOLVED:

 

That:

 

(1)     Taking into account the financial and risk implications set out in Report No: CAB/WS/19/041 and Exempt Appendix A, the Barley Homes Business Plan 2019, be agreed.

 

(2)     In order to bring the Barley Homes Business Plan 2019 into effect:

 

(a)     a revenue budget of £350,000 be established to fund the Council’s share of costs to progress planning applications for the Mildenhall site and also the development of future pipeline sites;

 

(b)     a capital budget of £5m be established, funded from the Investing in our Growth Agenda fund, to support the issuing of equity and loan financing (to increase the existing £7.5m facility) to facilitate the development of the two additional sites identified in the Business Plan; and

 

(c)     it be noted that in order to facilitate the developments within the Business Plan, the Council will be required to acquire sites from partners and subsequently dispose of these to Barley Homes.

 

 

3.       Local Council Tax Reduction Scheme (LCTRS) for 2020-2021

 

Approval was sought for proposed changes to the Local Council Tax Reduction Scheme (LCTRS) following an annual review of the scheme. The updated scheme would come into effect on 1 April 2020.

 

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council, including that a tolerance rule of +/-£15 was proposed to be introduced into the LCTRS.  This would have the effect of freezing a customer’s assessment when a revised Universal Credit Data Sharing hub (UCDS) notification would otherwise trigger a reassessment.  Changes in a customer’s financial position of more than +/-£15 would be processed as usual, whereas changes within the tolerance level would not be updated, no correspondence issued to the customer and without amendment to Council Tax repayments.

 

Council noted that where customer’s circumstances noticeably changed, the tolerance rule would not apply, given the change would be greater than £15 per week.  In these circumstances, the customer’s Council Tax Support would be immediately adjusted to provide extra benefit.

 

Where councils sought to amend their schemes, it was necessary to consult preceptors and stakeholders prior to a wider consultation to inform a final scheme design by 28 February of the preceding year. This consultation had been undertaken and no adverse comments had been received.

 

Council supported the proposed changes and considered it was a sensible approach.

 

On the motion of Councillor Broughton, seconded by Councillor Robert Everitt, it was put to the vote and with the vote being unanimous, it was

 

RESOLVED:

 

That the West Suffolk Local Council Tax Reduction Scheme for 2020-2021, as attached at Appendix A to Report No: CAB/WS/19/043, be approved, taking into account the proposed changes outlined within the report and the consultation undertaken.

 

 

4.       Council Tax Technical Changes – Including Empty Property Reliefs and Premiums Charges

 

(Councillors Paul Hopfensperger and Beccy Hopfensperger both declared pecuniary interests as owners of empty property and would be financially affected by the proposed changes. Both Members left the meeting during the consideration of this item.)

 

Consideration was given to an overview of the current council tax technical changes for continuation from April 2020, and approval was sought to proposed changes to the long term empty property premium scheme from April 2020, in line with recent changes in legislation.

 

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council, including that new legislation had come into effect from 1 April 2019 that provided local authorities with the ability to implement a scheme that enabled a 200% Council Tax charge on properties that had been empty for longer than two years.  The charge rose to 300% Council Tax on properties that had been empty longer than 5 years from 1 April 2020 and 400% on properties that had been empty longer than 10 years from 1 April 2021.

 

Paragraph 2.1 of Report No: CAB/WS/19/044 set out the current scheme proposals for the council tax technical changes for West Suffolk Council for continuation from April 2020.  Paragraphs 2.2 to 2.4 set out the proposals for the Long Term Empty Property Premium and paragraph 3 set out the classes of properties/exemptions that would not attract the premium.

 

Council agreed that applying the revised premiums to empty properties was likely to encourage owners to bring homes back into use. A number of empty properties had been identified within the district (as summarised in the report) and was a key priority being addressed by the Council, therefore this change would support the work being undertaken to reduce this figure.

 

In response to a question, Councillor Broughton informed Council that under normal circumstances, the time in which owners were allowed to bring their empty property back into use before attracting the premium was considered to be sufficiently fair.

 

On the motion of Councillor Broughton, seconded by Councillor Sara Mildmay-White, it was put to the vote and with the vote being 54 for the motion, 1 against and 1 abstention, it was

 

RESOLVED:

 

That:

 

(1)     The continuation of the West Suffolk Council Tax Technical Changes set out in Section 2 of Report No: CAB/WS/19/044, be approved;

 

(2)     a Council Tax premium of 200% for properties that have been long term empty and unfurnished for five years and over from 1 April 2020, be approved;

 

(3)     a Council Tax premium of 300% for properties that have been long term empty and unfurnished 10 years and over from 1 April 2021, be approved; and

 

(4)     properties that fall into the classes set out in Section 3 of Report No: CAB/WS/19/044, will not attract the Long Term Empty Premium for the period(s) detailed.

 

 

5.       Council Tax Base for Tax Setting Purposes 2020/2021

 

Approval was sought to set the tax base for 2020/2021 for West Suffolk.

 

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council, including how the tax base was calculated and how this was applied to the calculation of council tax.

 

On the motion of Councillor Broughton, seconded by Councillor Joanna Rayner, it was put to the vote and with the vote being unanimous, it was

 

RESOLVED:

 

That:

 

(1)     The tax base for 2020/2021, for the whole of West Suffolk is 56,138.14 equivalent Band D dwellings and for each of the predecessor areas is: Forest Heath 18,879.62 and St Edmundsbury 37,258.52, as detailed in paragraph 4.3 of Report No: CAB/WS/19/045; and

 

(2)     the tax base for 2020/2021 for the different parts of its area, as defined by parish or special expense area boundaries, are as shown in Appendix 2 to Report No: CAB/WS/19/045.

 

 

6.       West Suffolk Medium Term Financial Strategy 2020-2024

 

(Note: This report made reference to the West Suffolk Strategic Framework 2020-2024 (Report No: CAB/WS/19/040), which had been deferred earlier in the Cabinet meeting held on 26 November 2019, but this did not impinge on seeking approval for the West Suffolk Medium Term Financial Strategy 2020-2024.)

 

Approval was sought for the Medium Term Financial Strategy (MTFS) 2020-2024. This was considered in context against the 2020-2021 budget and medium term financial plans 2020-2024 which were currently in development for the formal council tax and budget adoption meeting of the Council in February 2020.

 

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council, including that the MTFS 2020-2024 assessed and evaluated the final resources expected to have and the expenditure in order to deliver the Council’s strategic priorities as set out in the Council’s West Suffolk Strategic Framework (the 2020-2024 version of which was now due for adoption in January/February 2020). 

 

On the motion of Councillor Broughton, seconded by Councillor John Griffiths, it was put to the vote and with the vote being 56 for the motion, and 2 abstentions, it was

 

RESOLVED:

 

That the West Suffolk Medium Term Financial Strategy 2020-2024, contained at Appendix A to Report No: CAB/WS/19/046, as its strategic financial framework from 1 April 2020, be adopted.

 

 

7.       Exempt: Investing in our Commercial Asset Portfolio

 

Council noted that this item had not been considered by Cabinet due to the initial proposal contained within the Cabinet report being no longer available for consideration and therefore there was no referral to Council for a decision.