Agenda and minutes

An apology for absence was received from Councillor Coombs (Portfolio Holder for Education).

The record of the meeting held on 16 January 2024 was agreed by the Cabinet and signed by the Leader as correct.

Disclosable pecuniary interests

There were none.

Other significant interests (OSIs)

Councillor Mahil declared an interest in agenda item No.17 (Star Hill to Sun Pier Conservation Area Appraisal and Management Plan - Request to Adopt Document and Extend the Conservation Area) and agenda item No.18 (Star Hill to Sun Pier Conservation Area Significance Led Development Framework Supplementary Planning Document - Request for Adoption) as he lived within the Conservation Area. Councillor Mahil left the room during discussion and determination of the item.

Other interests

There were none.

Background:

This report provided details of the final funding proposals for Medway’s schools and academies for 2024/25. Officers, working with the Schools Forum, had consulted with schools and academies on the proposed new funding formula options.

The Schools Forum had met on 19 January 2024 and recommended Cabinet to approve the implementation of the final funding formula, as set out at section 5 of the report.

It was noted that in line with rule 15.11 of Chapter 4, Part 5 of the Constitution, call-in could be waived where any delay likely to be caused by the call-in process would seriously prejudice the Council’s or the public’s interests. In this case, the deadline for the submission of the final funding formula to the Department for Education (DfE) was 22 January 2024. It was therefore proposed that call-in be waived to prevent any further delay in confirming the Cabinet’s decision to the Education and Skills Funding Agency (ESFA) and to allow the authority to implement the funding formula changes in accordance with the regulations. The Chairperson of the Children and Young People Overview and Scrutiny Committee had agreed that the decisions proposed were reasonable in all the circumstances and to them being treated as a matter of urgency and to waive call-In.

Reasons:

The local authority is required to implement the funding formula changes from 2024-25 in accordance with the regulations and to inform the Education Skills Funding Agency.

Background:

This report proposed changes to the Council Tax Reduction Scheme for 2024/25 which reflected income bands being uprated for Consumer Price Inflation, as set out at Appendix 1 to the report. It was noted that the Council’s financial situation did not enable the scheme to be made more generous.

The report also referred to the permanent discretionary policy for care leavers which sat outside of the Council tax Reduction scheme and formed a significant part of the Council’s Local Offer to care leavers.

A Diversity Impact Assessment (DIA) had been completed for the proposed Council Tax Reduction Scheme for 2024/25 and was attached at Appendix 2 to the report.

Reasons:

The CTR Scheme continues to balance the need for supporting those currently in receipt of council tax reductions and the ability of the Council to fund the scheme within the current budgetary constraints.

Background:

This report provided details of the Council’s Treasury Management Strategy for 2024/25. The Strategy had been prepared in line with CIPFA’s Local Authority Treasury Management Code and set out the Council’s borrowing requirement and strategy in respect of investments. It also provided details of the Council’s current portfolio position and set out the prudential and treasury indicators that would be used to monitor and measure treasury performance.

The Audit Committee had considered this report on 10 January 2024 and its comments were set out in section 6 of the report.

A Diversity Impact Assessment had been undertaken on the Treasury Management Strategy, as set out in Appendix B to the report.

Reasons:

Cabinet has the responsibility to make recommendations to Full Council on the approval of the Council’s Treasury Management, Investment Strategy and Minimum Revenue Provision Policy Statement and has responsibility for the implementation of the Treasury Management Practices and associated schedules.

Background:

This report presented the results of the third round of the Council’s revenue budget monitoring process for 2023/24. The report set out that at its meeting on 23 February 2023, Full Council had set a total budget requirement of £388.269million for 2023/24. Since then additional grant funding had been announced,primarily the Household Support Fund, Holiday Activity Fund, Market Sustainability and Improvement Fund (Workforce Fund) and Start 4 Life funding, plus the final allocations for Schools funding and the Public Health Grant had been confirmed. The net impact of these amendments took the Round 3 budget requirement to a total of £390.667million. 

The forecast outturn for 2023/24 represented a pressure of £11.359million, an improvement of £892,000 compared to the position reported at Round 2.

It was noted that the Council’s revenue budget situation was challenging and that this was the case for councils across the country. It was also considered that budgets under the previous administration had not been sustainable.

Reasons:

Full Council is responsible for agreeing a balanced budget in advance of each financial year. Cabinet is responsible for ensuring that income and expenditure remain within the approved budget, including instructing corrective action to prevent any forecast overspend from materialising.

The transfer of reserves from earmarked to general reserves will enable an overspend of the size projected in this report to be funded from general reserves if it materialises.

Background:

This report presented the results of the third round of the Council’s capital budget monitoring process for 2023/24. The report explained that this forecast a projected underspend of £51,000 in the Children and Adults Directorate, £32.54million in the Regeneration, Culture and Environment Directorate and £6,000 within Members Priorities. All other Services/Directorates were forecast to complete their capital schemes within the approved budget.

The Leader advised that the recommendation set out at 1.2 of the report incorrectly referred to paragraphs 12.1 to 12.5 of the report. The correct paragraph numbers were 11.1 to 11.5. The updated recommendation was as follows:

‘It is recommended that the Cabinet notes the changes made to the capital programme as set out in 11.1 to 11.5 to this report.’

Reasons:

Full Council is responsible for agreeing the capital programme. Cabinet is responsible for ensuring that expenditure remains within the approved programme, including instructing corrective action to prevent any forecast overspend from materialising.

Background:

This report asked Cabinet to recommend to Full Council the addition of £20million to the Council’s Capital Programme to deliver a programme of essential repairs and improvements to Gun Wharf, the scope of which included a replacement roof due to the presence of Reinforced Autoclaved Aerated Concrete (RAAC), planned maintenance, and works to improve building efficiency and occupation levels that included the delivery of a Monitoring Hub.

The report explored a number of options, a financial summary was included in an Exempt Appendix. The option to stay and invest in Gun Wharf was identified as the most cost-effective solution.

Reasons:

To ensure that Gun Wharf can continue to be used as the Council’s main Office Headquarters to deliver its statutory and discretionary functions.

Background:

This report proposed a level of increased investment in the permanent staffing of Adult Social Care (ASC) and a restructure to enhance efficiency, improve service delivery, ensure financial sustainability, and improve the overall quality of care provided to Medway’s clients.

It was noted that the amount of grant funding available for Adult Social Care had fallen by £5million. While some funding had been restored, this was not considered to be sufficient and action was therefore needed to ensure that the Council could continue to meet its statutory duties.

The report explained the increase in demand on the service and referred to a review of the Council’s ASC service which recommended areas of work that the Council could focus on to make savings,including the recruitment to permanent posts due to the social work workforce being reliant on a significant proportion of agency staff.

Reasons:

The increase to the Adult Social Care budget will introduce additional posts across the division to enable the authority to meet its statutory duties and improve service delivery.

Background:

This report proposed the implementation of a charging regime for visitor parking at Medway’s country parks. The new fees would generate income, which the Council could allocate to environmental improvements.

A benchmarking exercise had been undertaken to confirm parking charges, approaches and payment systems utilised in town centre car parks operated by Medway Council and within country parks managed by Kent County Council. Data from this had been used to determine suitable parking charges and payment systems for Medway’s Country Parks.

A Diversity Impact Assessment had been carried out and was attached at Appendix 1 to the report.

Reasons:

The new charge would bring Medway Council in line with the approach taken by Kent County Council to charge for parking in country parks whilst also providing a valuable new income stream to help address budget challenges.

Background:

This report proposed to pause development at Innovation Park Medway (IPM) and explore the best options for its future delivery. The market had changed quite significantly and suggested an opportunity to review the best long-term opportunities for IPM to ensure the most sustainable future for the sites.

IPM presented an opportunity to help shape the economic future of the region, attracting investment and growth by bringing forward high quality jobs. To be successful the IPM needed to achieve long-term financial sustainability and attract high value businesses that support this.

The report also requested £200,000 to be vired from existing capital funding for IPM which would cover the assessment of development options for the sites via an external commercial team, including planning advice and legal advice as required.

Reasons:

Further work is required to ensure that the sites are brought forward in a manner that suits the evolving needs of businesses in Medway along with ensuring that the sites are delivered in the most sustainable manner.  It is deemed necessary to pause the current work to avoid any abortive expenditure whilst this review takes place.

Background:

This report provided details of the proposed Housing Revenue Account (HRA) capital and revenue budgets for 2024/25 including rent, garage rent and service charge levels. The report gave a breakdown of the factors taken into account when formulating the budgets. The report also provided an update on the HRA Business Plan in accordance with the requirement to ensure the Plan met the Government’s fit for purpose criteria. The report stated that tenants had been informed of the proposals, as set out in section 18 of the report.

The Regeneration, Culture and Environment Overview and Scrutiny Committee had considered the report on 23 January 2024 and its comments were set out at section 19 of the report. A Diversity Impact Assessment had been carried out on the proposed budgets, as set out in Appendix F to the report.

Reasons:

The Council is required to carry out a review of rents and notify tenants not less than 28 days prior to the proposed date of change. The Council is required under the Local Government and Housing Act 1989 to ensure that the Housing Revenue Account does  ...  view the full minutes text for item 13.

Background:

This report presented proposals for the capital and revenue budgets for 2024/25. It was noted that the Cabinet had considered initial budget proposals on 21 November 2023, which had identified a potential revenue shortfall of £35.798million in 2024/25.

It was noted that setting a balanced budget was particularly challenging in the context of national level funding reductions which had included a 91% reduction in the Council’s revenue support grant since 2010. Inflationary pressures were making the situation more difficult.

It was also noted that the Council had engaged CIPFA to undertake a resilience review. CIPFA had concluded that it would not be possible for the Council to set a balanced budget for 2024/25 without some form of Government intervention. Following this, Exceptional Financial Support had been requested in January 2024. The Council had been advised that its request to increase council tax above referendum limits had been rejected. It was waiting for confirmation of whether the second part of its request had been successful. This would enable the council to borrow for revenue purposes and the flexibility to use existing grants to support Medway’s Improvement Programme.

An addendum report had been provided which set out the impact of the Final Local Government Finance Settlement 2024/25, which had been announced on 5 February.

The budget proposals had been referred to all the Overview and Scrutiny Committees for consideration. The Overview and Scrutiny Committees’ views together with the recommendations of the Business Support Overview and Scrutiny Committee (1 February 2024) were set out for Cabinet at Appendix 1 to the report.

The report set out the requirements under equality legislation and it was noted that an overarching Diversity Impact Assessment would be included in the budget report to Full Council on 29 February 2024.

Background:

This report presented the annual review of the Risk Strategy. The 2024/25 Risk Strategy was attached at Appendix 1 of the report. The 2023/24 Risk Strategy was attached at Appendix 2 for reference.

The report had been considered by the Audit Committee on 10 January 2024 and its comments were set out at paragraph 7.3 of the report. The Business Support and Digital Overview and Scrutiny Committee also considered the report on 1 February 2024 but made no comments to forward to the Cabinet.

Reasons:

The establishment of a corporate framework for risk management is recommended by CIPFA and SOLACE and will complement and support the work already being carried out within each directorate to manage risks.

Background:

This report set out an updated programme and timetable for the preparation of the new Medway Local Plan in a Local Development Scheme. The report considered the options and risks to inform the approach to securing a robust Local Plan to manage Medway’s growth to 2041.

The report recommended an additional stage of consultation at Regulation 18 which would better address potential legal challenges to the Local Plan, provide for more meaningful engagement in the plan preparation, and allow for greater certainty on strategic transport impacts. It was proposed that the second Regulation 18 Consultation Report would be presented to Cabinet in June 2024.

Reasons:

To provide certainty on the timetable for the production of the new Medway Local Plan.

Background:

This report sought approval for the adoption of the Star Hill to Sun Pier Conservation Area Appraisal and Management Plan, which would help to define the historic, architectural and townscape qualities that make a Conservation Area special. The Conservation Area Appraisal and Management Plan were subject to public consultation, details of which were set out in section 8 of the report and at Appendix 3.

Reasons:

The Star Hill to Sun Pier Conservation Area Appraisal and Management Plan will support the continued conservation and enhancement of the historic environment through defining the historic, architectural and townscape qualities that make the Conservation Area special.

Background:

This report outlined the work undertaken to assemble and formally consult upon the Star Hill to Sun Pier Conservation Area Significance-led Development Framework Supplementary Planning Document (the ‘Development Framework’) and sought Cabinet approval for its adoption. The Development Framework had been subject to formal public consultation, details of which were set out at Section 8 of the report.

A Diversity Impact Assessment had been undertaken and was set out at Appendix 2 to the report.

Reasons:

To meet the agreed outputs of the High Street Heritage Action Zone Programme.

Background:

This report proposed the renewal of four town centre alcohol control zone Public Spaces Protection Orders (PSPOs), which related to Rochester, Chatham, Gillingham and Strood and addressed the anti-social consumption of alcohol.

A public consultation exercise in relation to the proposed renewal of the 4 PSPOs had been conducted, the outcomes of which were detailed in Appendix 2 to the report.

Reasons:

The extension of the PSPOs should help to significantly reduce incidents of relevant anti-social behaviour (ASB) in the areas over the long-term and improve the quality of life for residents, visitors and local businesses.

Background:

This report provided details of how the Council had performed during quarter 3 in 2023/24 against the Council’s three priorities and the actions being taken to improve performance. The report also presented the quarter 3 review of strategic risks.

There were 47 Council Plan measures for 2023/24, of which it was possible to report on 46 as one measure was data only. In summary, 20 out of the 46 measures reported on met or exceeded target, five were slightly below target and 21 were significantly below target.

The report was due to be considered by the Overview and Scrutiny Committees during March/April 2024.

Reasons:

Regular monitoring of performance and risks by management and Members is best practice and ensures achievement of corporate objectives.

Background:

This report provided details of the South Thames Gateway Building Control Partnership Business Plan for 2024 to 2027. The Business Plan, as set out in the Exempt Appendix to the report, outlined how the building control function would be delivered on behalf of the partnership councils (currently Medway, Canterbury, Gravesham and Swale) up until 2027 and indicated what the contributions would be between 2024 and 2027.

Reasons:

The constitution of the Joint Committee requires approval of the Business Plan for the following year by the Cabinet of each Partner Authority.

Background:

This report requested the Cabinet’s agreement to approve the contract award for the HRA Repairs and Maintenance contract.

The report set out that the new contract would provide a fully encompassing repairs and maintenance service to the Council’s housing stock. It would also mark the beginning of the Housing Revenue Account’s journey to meet energy efficiency targets and would assist the service in ensuring it met the requirements of the housing regulator’s consumer standards.

The report had previously been considered by the Procurement Board, which had recommended it to the Cabinet for approval. A Diversity Impact Assessment had been carried out and was attached as Appendix 1 to the report. An exempt Appendix to the report set out financial analysis in relation to the procurement and recommended the provider the contract should be awarded to.

Reasons:

The recommendations contained within the report were provided on the basis that the current contract would cease on 31 August 2024 and could not be extended. Failure to provide a repair and maintenance service would mean that the Council could not meet its statutory obligations in terms of maintenance of its stock.

Background:

This report requested the Cabinet’s agreement to approve the contract award for the HRA Gas Servicing contract.

The report set out that the new contract would provide a fully encompassing repairs and maintenance service to the Council’s housing stock. It would also mark the beginning of the Housing Revenue Account’s journey to meet energy efficiency targets and would assist the service in ensuring it met the requirements of the housing regulators consumer standards.

The report had previously been considered by the Procurement Board, which had recommended it to the Cabinet for approval. A Diversity Impact Assessment had been carried out and was attached as Appendix 1 to the report. An exempt Appendix to the report set out financial analysis in relation to the procurement and recommended the provider the contract should be awarded to.

Reasons:

The recommendations contained within the report were provided on the basis that the current contract would cease on 31 August 2024 and could not be extended. Failure to provide a gas servicing contract would mean that the Council could not meet its statutory obligations in terms of maintenance of its stock.

Background:

This report detailed the options relating to the delivery of the One Public Estates (OPE) Brownfield Land Release Fund (BLRF) enabling works Contract. This was to facilitate the delivery of a minimum of 164 residential units at the Mountbatten House building.

The report proposed that Medway Development Company (MDC) be contracted to deliver the works to bring forward the site.

Reasons:

The appointment of MDC as Project Manager and Contractor to deliver the enabling works for the OPE BLRF, would ensure completion of the project and the utilisation of grant funding.