Agenda and draft minutes

An apology for absence was received from Councillor Hackwell.

To approve the record of the meeting held on 24 October 2024.

The record of the meeting held on 24 October 2024 was agreed and signed by the Chairperson as correct.

The Chairperson 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 (DPI)

There were none.

Other significant Interests (OSI)

There were none.

Other Interests

There were none.

This annual report provides an account of the role of the Portfolio Holder for Climate Change and Strategic Regeneration. It details their ambitions for their areas of responsibility, specifically relating to Climate Change, how they have and will undertake political challenge and leadership and what their priorities and ambitions are for the year ahead.

Discussion:

The following issues were discussed:

Transition to Electric Vehicles – a Member commented that planning regulations in conservation areas were slowing the installation of electric charging points. He asked the Portfolio Holder what action the Council was taking to improve this. The Portfolio Holder explained that the Council had a strategy for installation of electric vehicle charging points, however it was reliant upon grants, so funding was limited. Historic England were considering how charging points could be incorporated into conservation areas and this had caused delay. The Council was in favour of innovative design options to solve these challenges such as charging points contained in bollards or Council car parks and officers were working to find solutions.

A Member commented that it was important that conservation areas and building issues should not prevent the Council’s Climate Change objectives such as the installation of more efficient windows for buildings and solar panels. The Portfolio Holder agreed and noted it was important to work with partners not to destroy historic sites and to take a bespoke approach for buildings and streets as required.

Trees – in response to a question asking for his thoughts on tree planting schemes, the Portfolio Holder explained that there was a tree planting scheme in place, but it was on a smaller scale than previous schemes and the Council was reliant on grant funding. 3,500 trees were scheduled to be planted in February and the tree policy was being reviewed. The Council continued to look for opportunities for further funding and did not underestimate the importance the role of planting trees in tackling climate change, flood prevention and town centre cooling.

A Member commented that many of the trees planted previously by the Council had died and had asked if they could be replaced. The Portfolio Holder explained that 80% of trees which were not adequately cared for would die, so it was vital that the aftercare was effective, there was, however, no funding available to replace trees that had died.

Active Travel - The Portfolio Holder was asked for his views on active travel, in particular on bus travel as a sustainable option. The Portfolio Holder agreed that promoting additional bus use would reduce congestion in Medway. The Council had created an active travel working group, and he was pleased that Arriva had recently announced the addition of new more environmentally friendly buses for the area.

He added that the Council was interested in bus franchising opportunities which would give the Council additional powers regarding routes, timetabling and ticketing, however, it was unclear how this would work in practice at the current time so the Council would wait for further information from government.

The Portfolio Holder added that the Council would consider a bus station in the Strood railway station area to improve connections to the peninsula, a Member commented that it may be helpful to discuss proposals with colleagues in other areas which have had similar experience. The Portfolio Holder agreed and added that  ...  view the full minutes text for item 462.

The One Medway Council Plan (OMCP) 2024/28 sets out the Council’s priorities and the performance indicators used to monitor performance. This report and appendices summarise how we performed in Quarter 1 (Q1) & Quarter 2 (Q2) 2024/25 on the delivery of these priorities. This report also presents the Q1 & Q2 2024/25 review of strategic risks which fall under the remit of this committee.

Discussion:

The Chief Finance Officer introduced the report which presented the key performance indicators within the remit of the Committee from One Medway Council Plan, and the latest strategic risk register.

The following issues were discussed:

Recruitment and Retention – a Member welcomed that Medway salaries were closer to the market comparison following last year’s pay rise and noted that the draft budget proposed a further 5% rise for the coming year. He asked how much further Medway had to do to match market comparisons. The Chief Finance Officer explained that the Medium Term Financial Outlook projected a 5% pay rise for April 2025 and a 3% pay rise in April 2026 which would be at or above inflation in the medium term, in addition the Council continued to fund the Medpay scheme which would provide staff with a career progression framework and succession planning for the Council.

A Member asked if there any correlation between the proposed pay rise which would cost the Council £10m and the £26m identified gap in the draft budget for next year which would need to be funded through the EFS. The Chief Finance Officer explained that the pay rise was considered necessary because the Council had previously struggled to recruit and retain staff and have consequently had to employ temporary staff at a higher cost to the Council. In her opinion, permanent staff reflected the Council’s core values and were an asset to the Council. In addition the Medpay scheme would assist the Council in creating a career progression framework. Whilst the £10m cost of the proposed pay rise seemed significant, it was relatively small in the context of a £470m budget.

Agency Staff – a Member asked if temporary staff levels had reduced, the Chief Finance Officer stated that the Medpay programme was underway but had not been completed so comparative data would be difficult to provide, she undertook to provide further information on temporary staff to the Committee following the meeting.

Decision:

a)         The Committee considered the Q1 and Q2 2024/25 progress of the performance indicators used to monitor progress of the Council’s priorities, as set out in Appendix 1 to the report.

b)         The Committee noted the Strategic Risk Summary as set out in Appendix 2 to the report.

This report presents the results of the second round of the Council’s revenue budget monitoring process for 2024/25. The Council’s summary position is presented in section 4, with sections 5 and 6 providing the detail for the service areas within the remit of this committee.

Discussion:

The Head of Revenue Accounts introduced the report, he highlighted that the projected overspend in round two showed an improved position, however the situation remained challenging.

Decision:

a)     The Committee noted the results of the second round of revenue budget monitoring for 2024/25.

b)     The Committee noted that Cabinet instructed the Corporate Management Team to implement urgent actions to bring expenditure back within the budget agreed by the Full Council.

This report presents the results of the second round of the Council’s capital budget monitoring process for 2024/25.

Discussion:

The Head of Revenue Accounts introduced the report. He informed the Committee that the Capital Programme for the Business Support Department remained within budget. The Capital Programme as a whole was underspent by £7.554m in round two.

The following issues were discussed:

Underspend –in response to a question requesting further information regarding the reported underspend, the Chief Finance Officer explained there had been a £5m underspend on the purchase of the new waste fleet. In addition, there had also been an underspend of £1.6m in relation to the development of Cozenten Sports Centre, however, a new programme had recently been announced which would use that £1.6m and this would be reflected in round three monitoring.

Decision:

The Committee noted the results of the second round of capital budget monitoring for 2024/25.

This report sets out the Draft Capital and Revenue Budgets for 2025/26. 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 2025. The Draft Budget is based on the principles set out in the Medium Term Financial Outlook 2024-2029 (MTFO) considered by the Cabinet on 27 August 2024. 

Discussion:

The Chief Finance Officer introduced the draft budget report which set out the budget projections for 2025-26, she highlighted the budget provided for a net growth of £26m in the next financial year.

The Chief Finance Officer added that section 13 of the report outlined key announcements in the recent budget, detailed grant allocations were expected to be announced in the week commencing 16 December, but the overall effect was expected to be broadly positive for the Council.

Section 14 of the report noted the Exceptional Financial Support (EFS) which would be required to meet the budget gap. This was projected to be £26m, officers and Portfolio Holders continued to work to close that gap.

The following issues were discussed:

Cuts to Services – a Member noted that following the request for EFS last year, cuts to services were announced, he asked whether there were proposed cuts in services or rises in fees associated with the 2025-26 draft budget. The Chief Finance Officer explained that the proposals include the full year impact of some reductions agreed last year, but primarily the proposals relate to projected additional income, including from  leisure services following a review of fees and charges to meet the additional costs of running those services, and from events at the Corn Exchange following its successful refurbishment. 

Children’s Services were reviewing costs principally through managing demand and effective use of services keeping costs low.

The Business Support and centralised proposals relate to the department focusing on rightsizing back office functions and investing to save in transformation.

Medpay – A Member asked if the Council would need to borrow to fund Medpay, the Chief Finance Officer explained that EFS would be required to fund the budget gap, however it was not allocated to particular services and not directly related to Medpay.

A Member commented that in his view the proposed pay rise and costs of Medpay were not prudent at the current time. The Chief Finance Officer stated that the Council wanted to retain experienced staff and had to correct where pay rises were below that of its peers for a number of years which had affected recruitment and retention issue for the Council.

A Member commented that the budget was developed to provide statutory services and included rightsizing those services which had struggled to recruit and retain staff.

Decision:

a)     The Committee noted that Cabinet had instructed officers to continue to work with Portfolio Holders in formulating robust proposals to reduce the budget deficit for 2025/26 and to continue to liaise with the Ministry of Housing, Communities and Local Government to secure support through the Exceptional Financial Support scheme.

b)     The Committee commented on the proposals outlined in the Draft Capital and Revenue Budgets 2025/26 as set out in the minutes and forwarded the proposals on to the individual overview and scrutiny committees..

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 one addition to the work programme for January 2025 when a report relating to a recent Local Government Ombudsman decision would be considered.

The Democratic Services Officer also highlighted the proposed Task Group Protocol at appendix three to the report. The Protocol would codify existing practice in relation to undertaking task group work including composition and the role of substitute members. It had been considered by an informal cross-party group of Overview and Scrutiny Members and the Committee was asked to submit comments to Council and recommend approval for inclusion in the Council’s Constitution.

Decision:

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

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

c)     The Committee considered the Task Group Protocol at Appendix 3 to the report and recommended approval by Full Council for inclusion in the Council’s constitution.