Agenda and minutes

To approve as a correct record the Minutes of the meeting held on 14^th October 2010.

The Minutes of the meeting of the Panel held on 14^th October 2010 were approved as a correct record and signed by the Chairman.

To receive from Members declarations as to personal and/or prejudicial interests and the nature of those interests in relation to any Agenda Item.  Please see Notes 1 and 2 below.

Councillor M F Shellens declared a personal interest in Minute Nos. 53 and 54 by virtue of his membership of Brampton Parish Council.

Councillor N J Guyatt declared a personal interest in Minute Nos. 53 and 54 by virtue of his membership of Cambridgeshire County Council.

Councillor P J Downes declared a personal interest in Minute No. 53 by virtue of his wife’s voluntary work for Huntingdonshire Citizens Advice Bureau.

A copy of the current Forward Plan, which was published on 14^th October 2010 is attached. Members are invited to note the Plan and to comment as appropriate on any items contained therein.

The Panel considered and noted the current Forward Plan of key decisions (a copy of which is appended in the Minute Book) which had been prepared by the Leader of the Council for the period 1^st November 2010 to 28^th February 2010. The Panel were advised that a report on the sale of land at Mill Hill Road, Eaton Socon would be considered by the Cabinet at their meeting on 18^th November 2010. Members were also advised that the Budget and MTP, together with the Treasury Management Strategy and Prudential Indicators would be presented to the Panel for consideration as a matter of course in February 2011.

In response to comments about the tight timescale between the February meetings of the Panel and the Cabinet, Members were advised that it was anticipated that changes to the meetings calendar for 2011/12 would address some of their concerns in future years.

To consider a report by the Head of Financial Services.

(Councillor T V Rogers, Executive Councillor for Finance and Customer Services was in attendance for this item).

(Councillors Mrs M Banerjee, I C Bates, B S Chapman, S J Criswell, D B Dew, P J Downes, C R Hyams, P G Mitchell, M F Newman, Mrs D Reynolds, L M Simpson, J S Watt,and R J West).

Consideration was given to a report by the Chief Officers Management Team (a copy of which is appended in the Minute Book) which contained a draft Budget for 2011/12 and Medium Term Financial Plan (MTP) for the period 2012-16, prior to their submission to the Cabinet and final determination by the Council.

By way of introduction, the Director of Commerce and Technology gave a presentation on the draft Budget based on the Government’s preference for no increase in Council Tax and a reduction in spending of 11% in the current year. Having been advised of those areas where no significant changes were proposed to services, attention was drawn to the areas where efficiency savings were being sought and the impact on each service of the proposed spending cuts. Members were advised that the final Budget for 2011/12 would be prepared in the New Year with the benefit of further information in relation to the Revenue Support Grant, the impact of changes to concessionary fares and the new reward grant for housing development.

In discussing the contents of the report, Members reiterated the view that the Council should approach the financial planning process strategically through a vision for the District and for the Council. This would enable the Council’s priorities to be weighted and make it possible to take better informed decisions on the budget. In response, the Executive Councillor for Finance and Customer Services explained that the Government was constantly changing the requirements it placed on local authorities and this presented difficulties in preparing a strategy. It was suggested that Government changes should not affect the overarching vision and would only have an impact on the delivery of it.

Comments were made in relation to the Council’s strategic approach to financial planning and on the need for contingency plans to be prepared that addressed a range of scenarios and identified options for future action to respond to changing events. In addition, it was suggested that a rationale should be produced for each of the proposed changes. Members were assured that decisions would be informed by detailed pieces of work as the Council’s plans developed.

Councillor N J Guyatt cited an example of the value of adopting a strategic approach by referring to the proposed closure of the Yaxley Customer Service Centre in the context of the Council’s priority to support vulnerable people. The Executive Councillor for Finance and Customer Services drew attention to figures on claims for Housing Benefit in the area and explained that efforts were being made to identify savings while maintaining services. Attention then was drawn to the recent public consultation exercise, which revealed that the public were  ...  view the full minutes text for item 53.

To consider a report by the Head of Financial Services reviewing performance for the period 1^st April to 30^th September 2010.

(Councillor T V Rogers, Executive Councillor for Finance and Customer Services was in attendance for this item).

Consideration was given to a report by the Head of Financial Services (a copy of which is appended in the Minute Book) containing details of the Council’s Investments for the period 1^st April to 30^th September 2010.

By way of introduction, the Head of Financial Services reminded the Panel of the background to the introduction of enhanced arrangements for overseeing the management of the Council’s financial investments and borrowing. Members’ attention also was drawn to the strategic approach that had been adopted to the management of the District Council’s investments and recent changes to Public Works Loan Board loan rates, which had increased the cost to local authorities of long term borrowing by 0.85%. The Head of Financial Services also explained recent changes, which had been made to the definition used for fixed and variable rate investments and the resulting need to change the borrowing limits in order to maximise the flexibility available to the Council to react to changes in interest rates. The Panel supported the proposed change.

In discussing the content of the report and in noting that the latest forecast outturn predicted that there would be an increase in investment interest compared with the net budget, Councillor M F Shellens sought clarification as to how this had been achieved. In response, the Head of Financial Services explained that it was through a combination of factors including higher than anticipated interest rates, improved cash flow and changes in the mix of expenditure.

Members’ attention was drawn to a recent decision to invest with the Cambridge Building Society, which had enabled the Council to achieve a higher rate of return compared with other Building Societies for a short term investment. In response to a comment on the risks associated with investments in Building Societies, the Head of Financial Services informed Members that while some local authorities preferred to accept a lower return for complete security, a view had been taken that the securities offered by Building Societies were sufficient to minimise the risk to the Council associated with short term investments. Moreover, the funds invested were instantly available. Whereupon, it was

RESOLVED

that the Cabinet be requested to recommend the Council to note the contents of the report by the Head of Financial Services on Treasury Management – Review of Performance.

To receive a report on the Cabinet’s decisions on recommendations by the Overview and Scrutiny Panels on Performance Management.

With the aid of a report by the Cabinet (a copy of which is appended in the Minute Book) the Panel were acquainted with Executive Members’ deliberations and decisions in response to a joint report by the Overview and Scrutiny Panels on the Council’s performance against its priority objectives (Minute No. 10/34 refers).

Having been advised that the recommendation concerning external consultants had been referred back to the Corporate Plan Working Group for further review, it was agreed that it would be more appropriate for this work to be undertaken by the Overview and Scrutiny Panel (Economic Well-Being) and Councillors J D Ablewhite, G S E Thorpe and D M Tysoe, Mr R Hall and Mrs H Roberts were appointed to a working group for this purpose.

RESOLVED

that Councillors J D Ablewhite, G S E Thorpe and D M Tysoe, Mr R Hall and Mrs H Roberts be appointed to a Working Group to review and make recommendations on the Council’s use of consultants including the criteria used in the appointment of consultants and an assessment of the cost and value gained from using them.

To consider a report by the Head of Democratic & Central Services on the Panel’s programme of studies.

The Panel received and noted a report by the Head of Democratic and Central Services (a copy of which is appended in the Minute Book) reviewing progress of matters that had previously been discussed.

To consider with the aid of a report by the Head of Democratic and Central Services, the current programme of overview and scrutiny studies.

The Panel received and noted a report by the Head of Democratic and Central Services (a copy of which is appended in the Minute Book) containing details of studies being undertaken by the Council’s Overview and Scrutiny Panels. Councillor M F Shellens undertook to consult the Chairman on the terms of a possible future study on the financial implications of the Council’s future housing responsibilities.

To scrutinise decisions taken since the last meeting as set out in the Decision Digest and to raise any other matters for scrutiny that fall within the remit of the Panel.

The Panel received and noted the latest edition of the Council’s Decision Digest. In so doing and following the recent receipt of a Tree Replacement Notice, Councillor M F Shellens emphasised the need to re-consider the information which was circulated to Councillors with a view to securing cost savings.