Agenda and minutes

Apologies were received from Councillors Animashaun, Williams and McDonald.

To approve the record of the meeting held on 26 October 2023.

The record of the meeting held on 26 October 2023 was agreed and signed by the Chairperson as correct.

The Chairpeson will announce any late items which do not appear on the main agenda but which he has agreed should be considered by reason of special circumstances to be specified in the report.

There were none.

Members are invited to disclose any Disclosable Pecuniary Interests or Other Significant Interests in accordance with the Member Code of Conduct. Guidance on this is set out in agenda item 4.

Disclosable pecuniary interests

Councillor Gulvin declared an interest in item 10 (Draft budget 2024-25), the report referenced potential changes to Council Tax which may affect private landlords which would include Councillor Gulvin. However, as the report noted this was a recommendation previously agreed by Cabinet he undertook not to speak on the issue of Council Tax and remained in the meeting and took part in the remainder of the discussion.

Other Significant Interests (OSI)

There were none.

Other interests

There were none.

The Chairperson advised the Committee that the Portfolio Holder for Community Safety and Enforcement was delayed by another commitment and the agenda item, where he would be held to account, would be taken following his arrival at the meeting.

This report provides Members with an update on the roll out of Universal Credit and other work streams associated with welfare reform.

Discussion:

The report provided Members with an update on the roll out of Universal Credit, the Head of Benefits and Financial Welfare highlighted that the current caseload of Housing Benefit claimants in Medway was around 8,000.

The following issues were discussed.

Welfare Debt and Advice Support Service – It was noted that the Council would deliver a welfare, debt and advice service from January 2024 which had previously been provided via a contract with the Citizens Advice Bureau (CAB). In response to a question whether the Council would be able to provide a similar service if there were no plans to expand the team, the Chief Finance Officer explained that the budget assumption was that the value of the contract would be spent in-house meaning additional staff would be recruited. The Head of Benefits and Financial Welfare explained that the service will have debt and advice officers in place, and that the Council was partnered with the Money and Pensions Service to provide qualified debt advisors in addition to all staff receiving relevant training. The Council was not aiming to directly replicate the service in the way the CAB had provided it, however there will be welfare advisors in community hubs, surgeries and the service will be embedded within the Council’s digital services.

Concern was raised that residents would not have the necessary services available because the Council was not ready to provide them.  The Head of Benefits and Financial Welfare explained the service would be ready to support those who need it in January 2024, and will continue to be enhanced over the coming months.

A Member raised concern that members of the public may be reluctant to approach the Council and asked whether the Council were aware of the potential number of clients that would use the service. The Chief Finance Officer explained that the Council had worked with CAB to estimate volumes and would review take up to adapt the service to meet requirements over the coming year.

The Chief Operating Officer told the Committee the change in approach would provide a more holistic service, with a single point of contact.

Council Tax Reduction Scheme – in response to a question what was the cause of the £1m pressure in the budget of the Council Tax reduction scheme, the Head of Benefits and Financial Welfare informed the Committee work to ensure the scheme was more accessible means it is easier for people to see if they are entitled to make a claim and secondly the cost of living crisis had meant more claims were being received.

Working with DWP on campaigns – in response to a question how the Council and the DWP co-ordinated on campaigns to ensure those entitled to benefits take them up, the Head of Benefits and Financial Welfare stated that the Department for Work and Pensions (DWP) run campaigns through the media, make regular contact with partner agencies and publish information through their website. The Council had undertaken a campaign in relation to  ...  view the full minutes text for item 405.

Medway’s Council Plan 2023/24 sets out the Council’s three priorities and the measures used to monitor performance. This report and appendices summarise performance in Q2 2023/24 on the delivery of these priorities and the actions we are taking to improve performance.

This report also presents the Q2 2023/24 review of strategic risks which fall under the remit of this committee (Appendix 2).

Discussion:

The Head of Council Planning and Programmes introduced the report, she noted there had been no changes to the Strategic Risks in the quarter.

The following issues were discussed:

Performance Metrics – in response to a question why there were no RAG ratings in the report, the Head of Council Planning and Programmes explained that there were no performance metrics assigned to the programmes which came under the remit of this Committee.

Electric Vehicles – a request was made for further information regarding timescales for installation of electric vehicle charging points. The Head of Regulatory Services stated the Electric Vehicle Project Officer was fairly new in post and feasibility studies were underway, he undertook to provide further information on the installation of electric charging vehicle points to the Committee outside of the meeting.

Network Security – in response to a question whether there had been any recent ICT Network security incidents, the Chief Information Officer informed the Committee there had been no recent incidents of concern. There had been a trawl for email addresses on the website which had temporarily affected Members’ access to their accounts, however, security protocols had ensured accounts were not accessed.

Strategic Risk 53: Medpay – a request was made that the role of Internal Audit be highlighted within the briefings planned to mitigate the risk to promote the understanding of the service. The Chief Operating Officer agreed to do this.

Gun Wharf – a Member asked whether the partial closure of Gun Wharf would affect ICT security with more staff working at home. The Head of Council Planning and Programmes agreed there would be an effect and this would be included in quarter 3 monitoring reports.

Decision

1.               The Committee considered and noted the Q2 2023/24 performance against the measures used to monitor progress against the Council’s priorities (Appendix 1).

2.               The Committee noted the Q2 2023/24 Strategic Risk Summary (Appendix 2).

This report presents the results of the second round of the Council’s capital budget monitoring process for 2023/24.

Discussion:

The Chief Finance Officer introduced the report which presented the results of the second round of capital budget monitoring for 2023-24.

The following issues were discussed:

ICT Services - in response to a question whether ICT could monetise the improved services it provided following investment by the Council by offering services outside of the Council, the Chief Finance Officer agreed that the Council would be keen to grow services where the business case demonstrated investment could be recouped through increased income.

Price fluctuation - a Member requested further information how the Council was managing the risk of fluctuations in price as noted in the Data Centre Refurbishment scheme in the Business Support Capital Programme to ensure the project is completed on time and within budget. The Chief Finance Officer undertook to ask the team managing that project to provide a briefing note to the Committee.

Decision:

1.                  The Committee noted the results of the second round of capital budget monitoring for 2023/24.

2.                  The Committee noted the changes made to the capital programme as set out in paragraph 7.1 to the report.

This report presents the results of the second round of the Council’s revenue budget monitoring process for 2023/24. The Council’s summary position is presented in section 5, with sections 6-7 providing the detail for the service areas within the remit of this committee.

Discussion:

The Head of Revenue Accounts introduced the report which presented the Council’s revenue budget monitoring position. The Council position had improved from a projected £17m overspend in round 1 to a £12m overspend in round 2. The projected overspend of these areas within the remit of the Committee was £1.1m.

The following issues were discussed:

Comparison with position in 2022-23 – a Member commented that the current projected position of an overspend of £12m was better than at the same point last year where the projected overspend was £14m at the end of round 2 monitoring, the current position was therefore not unusual for the Council. The Chief Operating Officer acknowledged the projected overspend was higher at round 2 last financial year, however at that point the Council had significantly more in reserves available to fund it. Despite management action the Council overspent by £6m in addition to a £5m planned use of reserves in 2022/23, reducing general reserves down to £10m, which was less than the current projected overspend.

Council Reserves - a Member commented that Council general reserves of £10m were significantly better than had been for much of the last few years. The Chief Operating Officer agreed that reserves had increased from £5m in 2018 to £26m in 2022, which was positive, however, the Council had used much of their reserves and the current projected overspend was greater than the level of general reserves and the Council was in a challenging financial position.

Property Rationalisation – a Member asked for progress on the property rationalisation programme. The Chief Operating Officer explained there was a programme in place which was being led by the Regeneration Department and not a function of Business Support so would not be reported to this Committee.

Members’ Allowances – in response to a question why Members’ allowances were shown as overspent by £134,000 when Members allowances were linked to staff costs so should be known in advance, the Chief Finance Officer acknowledged there had been a clerical error which meant the change in that budget to reflect the rise in the number of Councillors had not been made.

Legal Services – a Member noted progress had been made in reducing the overspend in legal services by £203,000, it was asked whether this related to release of agency staff or recruitment of permanent  staff.  The Head of Revenue Accounts explained that although progress had been made, the recent changes in legal services would take time to realise savings. The Chief Operating Officer explained that Legal Services were undertaking recruitment at the moment to increase the establishment and pay at a commercial rate, the overspend will be reduced when the base cost was reset. A briefing note was requested on the effects of the changes in Legal Services.

Staff Productivity – in response to a question whether staff productivity had been affected by the partial closure of Gun Wharf and working from home, the Chief Operating Officer explained that productivity was a matter for  ...  view the full minutes text for item 408.

This annual report provides an account of the role of the Portfolio Holder for Community Safety and Enforcement. It details their ambitions for their areas of responsibility, how they have and will undertake political challenge and leadership and what their priorities and ambitions are for the year ahead.

Discussion:

The Portfolio Holder for Community Safety and Enforcement introduced the report and highlighted that Medway 2.0 and Digital Services was a key part of the Council’s agenda to streamline and improve the services provided to residents. The Portfolio Holder thanked the work undertaken by officers and the previous administration.

The following issues were discussed:

Pilot project ‘Report it’ – In response to a question whether the pilot project report it, and planned future projects would be used by officers as well as the public, the Portfolio Holder stated that the app represented a new way of working with Microsoft to reduce the number of platforms the Council used. Officers would be encouraged to use the services as well as part of a move from legacy based systems to Microsoft systems.

The Portfolio Holder added, that the changes would be an addition rather than an alternative to telephone services and the Council would continue to support those who were not online.

A Member expressed disappointment that the pilot only included three elements, the Portfolio Holder stated it was in his view important to get those elements right first and then expand.

New work streams – in response to a question what achievements had been made since May, the Portfolio Holder agreed that much of the ongoing work was inherited from the previous administration. Since he had become Portfolio Holder there had been a change in emphasis in approach, particularly the importance of Medway 2.0.

Savings to the Council – In response to a question what were the realised savings to the Council from the digital agenda, the Portfolio Holder explained that £4m had been identified to the end of the financial year in savings which would be made from removing redundant databases and systems.

A Member commented that it was disappointing that the Transformation Board, which had made very significant savings to the Council’s budget, had been abolished after the local elections. The Portfolio Holder told the Committee that the Cabinet had chosen to change processes to improve transparency which included the digital agenda being considered by Overview and Scrutiny and the name change of this Committee. 

The Portfolio Holder added that reducing the budget overspent was a significant issue for Council and digital transformation would be part of the response The Portfolio Holder’s aim was to modernise communications and simplify forms.

Artificial Intelligence (AI) – It was commented that AI would have a significant impact on the Council in the future, the Portfolio Holder agreed, one way the Council already used AI is to interface with the DVLA regarding cars parked illegally or not taxed.

The Chief Information Officer added that when a member of the public submitted a photo of a car parked illegally or with no tax, AI scanned the photo, recognised the vehicle and number plate and undertook DVLA checks automatically to speed up the process.

Online Council Tax – A Member expressed concern at the difficulty in using the online Council Tax system, he believed  ...  view the full minutes text for item 409.

This report sets out the Draft Capital and Revenue Budgets for 2024/25. In accordance with the Constitution, Cabinet is required to develop ‘initial budget proposals’ approximately three months before finalising the budget and setting Council Tax levels at the end of February 2024. The Draft Budget is based on the principles set out in the Medium Term Financial Outlook 2023-2028 (MTFO) considered by the Cabinet on 26 September 2023. 

Discussion:

The Chief Finance Officer introduced the report and highlighted the new approach to balancing the budget where each directorate would operate within an agreed budget allocation. The directorate had responsibility to deliver savings or additional income to meet the identified gap. The current identified draft budget gap stood at c£36m.

The government’s Autumn Statement was announced the day after the Cabinet at which the Draft Budget was discussed (22 November 2023), however there was little in the Statement which would affect Medway’s finances as it was in line with the Draft Budget projections. The Department of Levelling Up, Housing and Communities were expected to publish the Provisional Local Government Finance Settlement before Christmas and any impact would be included in the next report to Cabinet in January 2024.

Portfolio Holders were working with officers to close the draft budget gap. In addition, the Council was working with CIPFA (Chartered Institute Public Finance and Accountancy) and Partners in Care & Health to review of spending Council assumptions and these bodies were expected to report informally ahead of Christmas.

The following issues were discussed:

Staffing Costs – in response to a question whether the proposed increase in staff costs of £10m was affordable, the Chief Finance Officer explained that the current Council staff budget increases had been capped in recent times at 1%-2% and then a flat rate increase of £1,000 in 2022-23 which represented less than 2% for many staff. Recruitment and retention was a significant issue for the Council and this had led to agency staff being employed at a higher cost to the Council than permanent staff.  If the Council paid more attractive rates of pay then it may reduce costs and improve services through more effective recruitment and retention of staff via changes to Medpay.

The Chief Finance Officer added that in previous years the Council had been criticised by unions and Members during pay negotiations where salary budgets had been already been capped in the draft budget.

Housing Infrastructure Fund (HIF) staff – A Member noted the £375,000 cost to integrate HIF staff into the Council. The Chief Finance officer explained that the Council had recruited permanent staff into the department to deliver the HIF given the long timescales, however, the end of the HIF programme did not end the Council’s regeneration programme, for which those staff were an important part.

Increase to School Costs - In response to a request for clarification regarding the £263,000 increase in costs charged to schools, the Chief Finance Officer reported that the costs to the Council of delivering these services in 2023/24 were not covered by the charges made to schools but had been increased to cover the costs in 2024/25. Schools purchased services in an academic year and there had not been a significant loss to the Council since the changes had been made.

Increase to Court Costs – In response to a question whether the additional £500,000 in court costs claimed by the Council was achievable, the Chief  ...  view the full minutes text for item 410.

This item advises Members of the current work programme and allows the Committee to adjust it in the light of latest priorities, issues and circumstances. It gives Members the opportunity to shape and direct the Committee’s activities over the year.

Discussion:

The Democratic Services Officer introduced the report and highlighted the Procurement Strategy would be considered by the Committee in February and the Council Plan and Council Strategy would now be considered at the April meeting.

The Head of Democratic Services noted the further information regarding the membership of the Air Quality and Public Transport & Active Travel (combined review) requested at the last meeting of the Committee.

Decision:

1.               The Committee agreed the work programme at Appendix 1 to the report. 

2.               The Committee noted the work programmes of the other Overview and Scrutiny Committees at Appendix 2.

3.               The Committee approved a membership of seven Members (4 Labour and Co-operative Group, 2 Conservative Group and 1 Independent Group) for the Air Quality and Public Transport & Active Travel (combined review) Task Group plus one named substitute for each of the Labour and Co-operative and Conservative Groups.