There were no apologies for absence.

Members are reminded that they must not participate in the discussion or voting on any matter in which they have a Disclosable Pecuniary Interest and should leave the room prior to the commencement of the debate.

None were declared.

To approve as a correct record and sign the Minutes of the Cabinet meeting held on 17 January 2018.

RESOLVED:

That the Minutes of the Cabinet meeting held on 17 January 2018 be approved as a correct record and signed by the Leader.

RESOLVED:

That the Minutes of the Cabinet meeting held on 17 January 2018 be approved as a correct record and signed by the Leader.

To receive any questions or petitions from members of the public, notice of which has been given in accordance with Procedure Rule 14.  Deadline for notification for this meeting is no later than 24 hours prior to the commencement of the meeting.

There were no questions from members of the public.

To receive any questions of which members of the Council have given due notice.  Deadline for notification for this meeting is 5.00pm on Friday 9 February 2018.

There were no questions from Members.

To receive an update from the Place Overview Committee regarding the call-in of the Parking Strategy.  

The decision made by Cabinet on 17 January 2018 regarding the New Parking Strategy was called in by the Liberal Democrat Group and subsequently considered by the Place Overview Committee on 12 February 2018.

RESOLVED:

That the recommendations of the Financial Strategy Task and Finish Group be supported as follows:

i.      That a Task and Finish Group is established to work alongside the development of plans for the 2019/20 Budget and to maintain an overview of progress and performance in relation to innovation and raising income.

ii.    That a review is completed to identify whether the Council has the skills, experience and capacity in house to deliver the innovation and income delivery through the Council’s assets that is required to close the budget deficit.

iii.   That consultation on future Budgets and Financial Strategies is accompanied with clear information and examples that help to illustrate the potential impacts of proposed changes, to inform people’s responses.

Cabinet noted that the recent call-in of the Cabinet decision made on 17 January 2018 regarding the New Parking Strategy had been considered by the Place Overview Committee on 12 February 2018 when Cabinet’s decision had been upheld. Responding to a Member’s concerns, the Monitoring Officer stated that the Member concerned had received legal advice outside of the meeting.

The Chair of the Performance Management Scrutiny Committee presented the findings of the Financial Strategy and Budget 2018/19 Task and Finish Group following its consideration of the budget proposals for 2018/19 and the proposed Financial Strategy 2018/19 to 2022/23.  She explained that the Performance Management Scrutiny Committee had now agreed to establish a standing Task and Finish Group to look at budgetary and Financial Strategy issues in order to have a more beneficial influence on the process in future.  Responding to a Member’s comments, she gave assurances that appropriate Portfolio Holders had been diligent in attending meetings of the Task and Finish Group.

RESOLVED:

That the recommendations of the Financial Strategy Task and Finish Group be supported as follows:

i.      That a Task and Finish Group is established to work alongside the development of plans for the 2019/20 Budget and to maintain an overview of progress and performance in relation to innovation and raising income.

ii.    That a review is completed to identify whether the Council has the skills, experience and capacity in house to deliver the innovation and income delivery through the Council’s assets that is required to close the budget deficit.

iii.   That consultation on future Budgets and Financial Strategies is accompanied with clear information and examples that help to illustrate the potential impacts of proposed changes, to inform people’s responses.

Lead Member – Councillor David Minnery – Portfolio Holder for Finance.

Report of the Head of Finance, Governance and Assurance [s151 Officer]

Contact: James Walton      Tel: 01743 255011

RESOLVED:

i.      That it be noted that at the end of Quarter 3 (31 December 2017), the full year revenue forecast is a potential underspend of £0.059m;

ii.    That the impact of this on the Council’s General Fund balance be considered.

iii.   That net budget variations of £10.073m to the 2017/18 capital programme be approved, detailed in Appendix 3/Table 6, and the re-profiled 2017/18 capital budget of £58.276m.  Variations include revenue contributions of £0.132m towards school projects and Community Library Schemes and a reduction in HRA revenue contributions of £1.249m.

iv.   That re-profiled capital budgets of £46.290m for 2018/19, £7.487m for 2019/20 and £0.667m for 2020/21, be approved as detailed in Appendix 3/Table 9.

v.    That the capital expenditure to date of £37.655, representing 65% of the revised capital budget for 2017/18, with 75% of the year having elapsed, be accepted.

The Portfolio Holder for Finance presented a report from the Head of Finance, Governance and Assurance [s151 Officer] detailing the projected revenue expenditure for the whole of 2017/18 as at Quarter 3.

Responding to a Member’s query, the Head of Finance, Governance and Assurance stated that he would confirm whether or not the difference in the Adult Services budgets in Quarter 2 and Quarter 3 was the result of a budgetary adjustment within those areas.

     Referring to the new delivery model for Early Help Services, the Portfolio Holder for Children and Young People refuted a Member’s comments and stated that            a great deal of publicity had taken place both on the Council’s website and in the local media.

RESOLVED:

i.      That it be noted that at the end of Quarter 3 (31 December 2017), the full year revenue forecast is a potential underspend of £0.059m;

ii.    That the impact of this on the Council’s General Fund balance be considered.

iii.   That net budget variations of £10.073m to the 2017/18 capital programme be approved, detailed in Appendix 3/Table 6, and the re-profiled 2017/18 capital budget of £58.276m.  Variations include revenue contributions of £0.132m towards school projects and Community Library Schemes and a reduction in HRA revenue contributions of £1.249m.

iv.   That re-profiled capital budgets of £46.290m for 2018/19, £7.487m for 2019/20 and £0.667m for 2020/21, be approved as detailed in Appendix 3/Table 9.

v.    That the capital expenditure to date of £37.655, representing 65% of the revised capital budget for 2017/18, with 75% of the year having elapsed, be accepted.

Lead Member – Councillor Peter Nutting – Leader of the Council

Report of the Head of Finance, Governance and Assurance [s151 Officer] TO FOLLOW

Contact: James Walton      Tel: 01743 255001

RESOLVED:

i.      That 2018/19 budget of £582.151m outlined in the Budget Book at Appendix 7, including the savings proposals outlined in Appendix 4 be agreed and recommended to Council

ii.    That the changes required to the 2018/19 budget as a result of the Final Local Government Settlement and revised business rates and collection fund estimates, be noted.

iii.   That the revised funding gap for the years 2019/20 to 2022/23 be noted.

iv.   That the revised Capital Programme as set out in the report and detailed at section 8 and Appendix 8 be agreed and recommended to Council.

v.    That the continued use of the Policy for Flexibility around the use of Capital Receipts be noted.

The Leader presented a report from the Head of Finance, Governance and Assurance [s151 Officer] setting out the Council’s financial strategy over the     next five years, enabling a balanced budget to be set for the years 2018/19 to 2019/20 and considered the potential to set a sustainable and balanced            budget in the years beyond.

Referring to the permanent savings from highways maintenance that may be reversible, the Chief Executive explained that these savings would be           reviewed in 2020/21 and, at that point in time, if sufficient alternative proposals were in place, then they may be reversed. 

RESOLVED:

i.      That 2018/19 budget of £582.151m outlined in the Budget Book at Appendix 7, including the savings proposals outlined in Appendix 4 be agreed and recommended to Council

ii.    That the changes required to the 2018/19 budget as a result of the Final Local Government Settlement and revised business rates and collection fund estimates, be noted.

iii.   That the revised funding gap for the years 2019/20 to 2022/23 be noted.

iv.   That the revised Capital Programme as set out in the report and detailed at section 8 and Appendix 8 be agreed and recommended to Council.

v.    That the continued use of the Policy for Flexibility around the use of Capital Receipts be noted.

Lead Member – Councillor David Minnery – Portfolio Holder for Finance

Report of the Head of Finance, Governance and Assurance [s151 Officer] TO FOLLOW

Contact: James Walton      Tel: 01743 255001

RESOLVED:

i.     That the recommended level of general balances to support the 2018/19 revenue budget at £17.081m, noting that the projected balance will be below this for 2018/19, be approved;

ii.    That the projected recommended level of general reserves be noted for the following four years at £18.830m in 2019/20, £18.879m in 2020/21, £31.518m in 2021/22 and £40.037m in 2022/23.

iii.   That it be noted that further consideration will be made of the implications of figures contained within this report and should there be any material change required, this will be reported to Council on 22 February 2018.

      The Portfolio Holder for Finance presented a technical report from the Head of Finance, Governance and Assurance [s151 Officer] on the robustness of the estimates made for the purposes of the budget calculations and the adequacy of the proposed reserves.

      Responding to a Member’s query regarding the number of staff redundancies to be implemented by the end of March 2018, the Chief Executive stated that      these were voluntary and savings were to be made before the end of the next financial year, 2018/2019.  He stated that, until the outcome of the voluntary         redundancy scheme and the impact of the digital transformation had been assessed, the level of compulsory redundancies could not be projected.  He also             stressed that structural changes were to be made within teams and this would have an impact on future staffing.

      The Head of Finance, Governance and Assurance [s151 Officer] explained that the reserves calculation was a risk based assessment based on the current          Financial Strategy and that before 2022/23 the Council should be reducingthe funding gap and thus reducing the risk in later years.

      RESOLVED:

i.     That the recommended level of general balances to support the 2018/19 revenue budget at £17.081m, noting that the projected balance will be below this for 2018/19, be approved;

ii.    That the projected recommended level of general reserves be noted for the following four years at £18.830m in 2019/20, £18.879m in 2020/21, £31.518m in 2021/22 and £40.037m in 2022/23.

iii.   That it be noted that further consideration will be made of the implications of figures contained within this report and should there be any material change required, this will be reported to Council on 22 February 2018.

Lead Member – Councillor David Minnery – Portfolio Holder for Finance

Report of the Head of Finance, Governance and Assurance [s151 Officer]

Contact: James Walton      Tel: 01743 255001

RESOLVED:

i.      That the breakdown of the total income for 2017/18 and 2018/19 be noted and in particular that the proposed 2018/19 charges for discretionary services represent only £34.159m of the £72.337m of income derived from Fees and Charges.

ii.    That the charges for 2018/19 be approved as detailed in Appendix 3 to be implemented 1 April 2018, recognising that managers have proposed varying policies for 2018/19.

iii.   That it be noted that as previously agreed, any changes to fees and charges proposed by Shropshire Community Leisure Trust Ltd. in relation to the outsourced leisure facilities will only be referred to Cabinet and Council for approval if the proposed increases exceed Consumer Price Index (CPI) for the preceding November.

iv.   That subject to restrictions or exemptions identified in the Welfare Reform and Work Bill it is recommended to Council that  

a)    Social Housing rents for 2018/19 are reduced by 1% from 1st April 2018.

b)    Affordable rents for 2018/19 are reduced by 1% from 1st April 2018.

c)    Shared Ownership rents continue to be set at 2.75% of the outstanding capital value of the home at the time of sale and thereafter increased each April by the greater of the preceding September Consumer Price Index plus 1% or 1%. 

d)    Service charges continue to be set on the basis of actual cost.

The Portfolio Holder for Finance presented a report from the Head of Finance, Governance and Assurance [s151 Officer] on the level of fees and charges to be applied in 2018/19.

RESOLVED:

i.      That the breakdown of the total income for 2017/18 and 2018/19 be noted and in particular that the proposed 2018/19 charges for discretionary services represent only £34.159m of the £72.337m of income derived from Fees and Charges.

ii.    That the charges for 2018/19 be approved as detailed in Appendix 3 to be implemented 1 April 2018, recognising that managers have proposed varying policies for 2018/19.

iii.   That it be noted that as previously agreed, any changes to fees and charges proposed by Shropshire Community Leisure Trust Ltd. in relation to the outsourced leisure facilities will only be referred to Cabinet and Council for approval if the proposed increases exceed Consumer Price Index (CPI) for the preceding November.

iv.   That subject to restrictions or exemptions identified in the Welfare Reform and Work Bill it is recommended to Council that 

a)    Social Housing rents for 2018/19 are reduced by 1% from 1st April 2018.

b)    Affordable rents for 2018/19 are reduced by 1% from 1st April 2018.

c)    Shared Ownership rents continue to be set at 2.75% of the outstanding capital value of the home at the time of sale and thereafter increased each April by the greater of the preceding September Consumer Price Index plus 1% or 1%. 

d)    Service charges continue to be set on the basis of actual cost.

Lead Member – Councillor David Minnery – Portfolio Holder for Finance

Report of the Head of Finance, Governance and Assurance [s151 Officer]

Contact: James Walton      Tel: 01743 255001

RESOLVED:

i.      That the overall Collection Fund estimated deficit of £2.712m for the year ending 31^st March 2018, comprised of an estimated surplus of £2.784m for Council Tax and an estimated deficit of £5.496m for Non-Domestic Rates (NDR), be noted.

ii.     That the distribution of the Collection Fund estimated surplus for Council Tax and deficit for NDR to the major / relevant precepting authorities and the Secretary of State, be noted.

iii.    That Shropshire Council’s share of the overall estimated deficit of £0.130m, comprised of an estimated surplus of £2.293m for Council Tax and an estimated deficit of £2.423m for NDR, be noted.

iv.   That the inclusion of Shropshire Council’s share of the overall estimated deficit in the 2018/19 budget be noted.

The Portfolio Holder for Finance presented a report from the Head of Finance, Governance and Assurance [s151 Officer] detailing the estimated Collection Fund surpluses/deficits for 2017/18, calculated as at 15 January 2018 for Council Tax and as at 31 January 2018 for Non-Domestic Rates, for the year ending 31 March 2018.

RESOLVED:

i.      That the overall Collection Fund estimated deficit of £2.712m for the year ending 31^st March 2018, comprised of an estimated surplus of £2.784m for Council Tax and an estimated deficit of £5.496m for Non-Domestic Rates (NDR), be noted.

ii.     That the distribution of the Collection Fund estimated surplus for Council Tax and deficit for NDR to the major / relevant precepting authorities and the Secretary of State, be noted.

iii.    That Shropshire Council’s share of the overall estimated deficit of £0.130m, comprised of an estimated surplus of £2.293m for Council Tax and an estimated deficit of £2.423m for NDR, be noted.

iv.   That the inclusion of Shropshire Council’s share of the overall estimated deficit in the 2018/19 budget be noted.

Lead Member – Councillor David Minnery – Portfolio Holder for Finance

Report of the Head of Finance, Governance and Assurance [s151 Officer]

Contact: James Walton      Tel: 01743 255001

RECOMMENDED:

a)    That the Treasury Strategy for 2018/19 be approved.

b)    That the Prudential Indicators, set out in Appendix 1, in accordance with the Local Government Act 2003, be approved.

c)     That the Investment Strategy, set out in Appendix 2 in accordance with the CLG Guidance on Local Government Investments be approved.

d)    That the Minimum Revenue Provision (MRP) Policy Statement, set out in Appendix 3 be approved.

e)    That the Section 151 Officer be authorised to exercise the borrowing powers contained in Section 3 of the Local Government Act 2003 and to manage the Council’s debt portfolio in accordance with the Treasury Strategy.

f)      That the Section 151 Officer be authorised to use other Foreign Banks which meet Link’s creditworthiness policy as required. 

g)    That Members be asked to note the changes to the CIPFA Treasury Management Code of Practice and Prudential Code and outstanding consultation exercises.

The Portfolio Holder for Finance presented a technical report from the Head of Finance, Governance and Assurance [s151 Officer] proposing the Treasury   Strategy for 2018/19 and recommending the Prudential and Treasury Indicators for 2018/19 to 2020/21.

RECOMMENDED:

a)    That the Treasury Strategy for 2018/19 be approved.

b)    That the Prudential Indicators, set out in Appendix 1, in accordance with the Local Government Act 2003, be approved.

c)     That the Investment Strategy, set out in Appendix 2 in accordance with the CLG Guidance on Local Government Investments be approved.

d)    That the Minimum Revenue Provision (MRP) Policy Statement, set out in Appendix 3 be approved.

e)    That the Section 151 Officer be authorised to exercise the borrowing powers contained in Section 3 of the Local Government Act 2003 and to manage the Council’s debt portfolio in accordance with the Treasury Strategy.

f)      That the Section 151 Officer be authorised to use other Foreign Banks which meet Link’s creditworthiness policy as required. 

g)    That Members be asked to note the changes to the CIPFA Treasury Management Code of Practice and Prudential Code and outstanding consultation exercises.

Lead Member – Councillor David Minnery – Portfolio Holder for Finance

Report of the Head of Finance, Governance and Assurance [s151 Officer]

Contact: James Walton      Tel: 01743 255001

RESOLVED:

That the position detailed in the report be accepted.

The Portfolio Holder for Finance presented a report from the Head of Finance, Governance and Assurance [s151 Officer] outlining the treasury management activities of the Council during the last quarter.

RESOLVED:

That the position detailed in the report be accepted.

Lead Member – Councillor David Minnery – Portfolio Holder for Finance

Report of the Head of Finance, Governance and Assurance [s151 Officer]

Contact: James Walton      Tel: 01743 255001

RESOLVED:

i.      That the proposals for the new business rate relief scheme for 2018-19 and subsequent financial years be approved, and a delegation be confirmed to the Head of Finance, Governance and Assurance in consultation with the Portfolio Holder for Finance, to finalise the scheme for 2018-19 and subsequent financial years. 

ii.    That the use of any remaining government funds to support other businesses on a case by case basis considered by the Council’s Section 151 Officer be approved.

iii.   That continuation of £1000 business rate discount in 2018-19 for local pubs with a rateable value up to £100,000 be formally approved.

The Portfolio Holder for Finance presented a report from the Head of Finance, Governance and Assurance [s151 Officer] detailing the parameters for the            new business rate relief scheme.

RESOLVED:

i.      That the proposals for the new business rate relief scheme for 2018-19 and subsequent financial years be approved, and a delegation be confirmed to the Head of Finance, Governance and Assurance in consultation with the Portfolio Holder for Finance, to finalise the scheme for 2018-19 and subsequent financial years. 

ii.    That the use of any remaining government funds to support other businesses on a case by case basis considered by the Council’s Section 151 Officer be approved.

iii.   That continuation of £1000 business rate discount in 2018-19 for local pubs with a rateable value up to £100,000 be formally approved.

Lead Member – Councillor Robert Macey – Portfolio Holder for Planning and Regulatory Services

Report of the Director of Public Health

Contact: Professor Rod Thomson            Tel: 01743 253934

RESOLVED:

That the Director of Public Health be authorised to revoke the Shrewsbury No.1 AQMA in Bayston Hill and the Shrewsbury No.2 AQMA centred around Heathgates Roundabout under section 83(2)(b) of the Environment Act 1995. The Orders are attached at Appendix 1 and 2 of the report.

The Portfolio Holder for Planning and Regulatory Services presented a report from the Director of Public Health on the revocation of two Air Quality Management Areas that were no longer needed because the measured levels of nitrogen dioxide were now below nationally set Air Quality Objective      Levels.

RESOLVED:

That the Director of Public Health be authorised to revoke the Shrewsbury No.1 AQMA in Bayston Hill and the Shrewsbury No.2 AQMA centred around Heathgates Roundabout under section 83(2)(b) of the Environment Act 1995. The Orders are attached at Appendix 1 and 2 of the report.

Lead Member – Councillor Nicholas Bardsley – Portfolio Holder for Children and Young People

Report of the Director of Children’s Services

Contact: Karen Bradshaw  Tel: 01743 254201

RESOLVED:

i.      That the proposal to amend the local authority’s admission arrangements be approved, namely:

·         The rationalisation of the designated secondary school catchment areas for properties at Bomere Heath, Hoptonheath , Clunbury, Cockshutt, Morville, Pennerley and Stanwardine.

ii That the admission arrangements for 2019/20 be approved without further amendment to those determined in February 2017.

iii  That, by agreeing to the above, the school admission arrangements for Shropshire Council for the academic year 2019/20 and the required publication of the arrangements in accordance with the School Admissions Code 2014 be determined.

iv  That Officers notify the Secretary of State by 28 February 2018 that Shropshire Council has determined its school admissions arrangements for the 2019/20 academic year.

The Portfolio Holder for Children and Young People presented a report from the Director of Children’s Services on the change to the Council’s admission           arrangements for the 2019/20 academic year.  He added that consultations had taken place between 15 December 2017 and 26 January 2018 and the         Local Admissions Forum also supported the proposed arrangements.

RESOLVED:

i.      That the proposal to amend the local authority’s admission arrangements be approved, namely:

·         The rationalisation of the designated secondary school catchment areas for properties at Bomere Heath, Hoptonheath , Clunbury, Cockshutt, Morville, Pennerley and Stanwardine.

ii That the admission arrangements for 2019/20 be approved without further amendment to those determined in February 2017.

iii  That, by agreeing to the above, the school admission arrangements for Shropshire Council for the academic year 2019/20 and the required publication of the arrangements in accordance with the School Admissions Code 2014 be determined.

iv  That Officers notify the Secretary of State by 28 February 2018 that Shropshire Council has determined its school admissions arrangements for the 2019/20 academic year.