The Committee stood in silent tribute in memory of Councillor Julian Ware-Lane, who very sadly passed away the previous week following illness.

Apologies were received from Councillor R Hadley (substitute Cllr D Garne), Councillor C Walker (substitute Cllr J McMahon – also sent apologies) and Councillor D Garston (substitute Cllr K Buck).

The following interests were declared at the meeting:-

(a)  Councillors Courtenay, Cox and Flewitt (Cabinet Members) – interest in the referred items; attended pursuant to the dispensation agreed at Council on 19th July 2012, under S.33 of the Localism Act 2011;

(b)  Councillor Cox - agenda item relating to the proposed development of the Seaway Car Park - Disclosable Pecuniary Interest – family member is employed by Stockvale and is a business involved in discussions with regard to the development and lobbying of Councillors (withdrew).

(c)  Councillor Mulroney – agenda item relating to the proposed development of the Seaway Car Park – non-pecuniary interest – Member of Development Control Committee;

(d)  Councillor Mulroney – agenda item relating to Council Tax Base -  non-pecuniary interest – Member of DCC; member of Leigh Town Council;

(e)  Councillor Nelson – agenda item relating to Brexit – disclosable interest – employer is an MP – withdrew;

(f)   Councillor Phillips - agenda item relating to Brexit - non-pecuniary interest – son works in Brexit team in Westminster civil service;

(g)  Councillor Terry - agenda item relating to the proposed development of the Seaway Car Park – non-pecuniary interest – knows people involved with scheme; Fossetts Farm also mentioned – is SUFC season ticket holder;

(h)  Councillor Ayling - agenda item relating to the proposed development of the Seaway Car Park – non-pecuniary interest – knows people involved with scheme;

(i)    Councillor McGlone - agenda item relating to Future phases of Affordable Housing Development Programme  – non-pecuniary interest - lives in the vicinity of Lundy Close and knows individual residents;

(j)    Councillor Flewitt – agenda item relating to Draft Housing Revenue Account Budget 2018/19 and Rent Setting - non-pecuniary interest - friends and family are tenants of South Essex Homes matter (was not present for agenda item however);

(k)  Councillor Flewitt - agenda item relating to Future phases of Affordable Housing Development Programme  – non-pecuniary interest – lives in the vicinity of Lundy Close and knows individual residents and has been lobbied by some residents on the matter (was not present for agenda item however);

(l)    Councillor McDonald – agenda item relating to Employment Appeals – non-pecuniary interest - member of Unison, but not local branch consulted;

(m) Councillor Buck – agenda item relating Draft General Fund Revenue Budget – non-pecuniary interest – Governor at The Eastwood Academy.

The responses to the questions submitted by Mr Webb and Mr Miller will be forwarded to them as they were not present at the meeting.

Resolved:-

That the Minutes of the meeting held on Thursday, 29^th November, 2019 be confirmed as a correct record and signed.

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to all Scrutiny Committees for consideration.

The Committee considered Minute 604 of Cabinet held on 17th January 2019, which has been referred direct by Cabinet to all three Scrutiny Committees together with a report of the Chief Executive providing the Southend 2050 Strategic Delivery Plans (SDPs).

Resolved:-

That the following decisions of Cabinet be noted:-

“1. That the Strategic Delivery Plans supporting the delivery of the Southend 2050 Ambition and the Southend 2050 Five Year Road Map, be adopted.

2. That the Transforming Together work be noted and the new Council values, be endorsed.”

Note: This is an Executive Function

Cabinet Member: Cllr Lamb

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to the Policy & Resources Scrutiny Committee for consideration.

The Committee considered Minute 605 of Cabinet held on 17^th January 2019, which had been referred direct to the Policy and Resources Scrutiny Committee together with a report of the Strategic Director (Finance and Resources) reviewing the proposed Development of the Seaway Car Park and associated land and the Agreement for Lease and Sale dated 10^th December 2014 made between the Council and Turnstone Southend Limited. The preamble to Minute 605 sets out assurances given by the Strategic Director (Finance and Resources) as to the financial advantages of the Development and that independent experts have certified that the terms represent best consideration for the Council pursuant to S.123 Local Government Act 1972.

The report dealt with the proposed Development in the context of the Council’s land ownership, regeneration and economic development responsibilities.  It was noted that whilst the strategic planning context was mentioned in the report, the planning application recently submitted for the Development (Ref: 18/02302/BC4M) must be considered quite separately by the Council as local planning authority through the Development Control Committee.

The Strategic Director (Legal & Democratic Services) drew attention to the following:

(a)  Answers to a series of questions from Councillor Ayling which had been circulated to all Councillors on 25 and 29 January 2019, including the provision of additional information from Savills and the DVS;

(b)  A letter from Homes England that had been tabled, confirming that their position is fairly represented in the report to Cabinet; and

(c)    The legal position has been examined and the full Savills Report cannot be disclosed since it contains confidential and commercially sensitive information which would be very damaging to the economic interests to a number of parties if disclosed. The Information Commissioner’s Office (ICO) has previously decided that the Council was entitled to withhold disclosure of confidential information relating to the Development and this ICO decision is clearly a material consideration.

However (and this is most important), comprehensive independent valuation advice has been supplied to all Councillors which provides the necessary information to make a decision on the matter, namely:

·      Savills Report on Best Consideration for the Agreement for Lease dated 21 November 2018 (Appendix 4 to the Cabinet report) which was supplied in a specific format which could be considered by Councillors;

·      The full DVS Valuation Review dated 21 December 2018 which was circulated to all Councillors on 25 January 2019;

·      Supplementary letter from Savills dated 24 January 2019 which was circulated to all Councillors on 25 January 2019; and

·      Further letter from the DVS dated 25 January 2019 which was circulated to all Councillors on 25 January 2019.

In answer to a question, the Cabinet Member for Growth confirmed that the valuation of the Seaways Car Park Development has been undertaken on the basis of leisure /tourism uses. This is because it has been a long term Council ambition for the site to be developed for such uses, as the strategic planning and economic sections of the Cabinet report (and the Appendices) set  ...  view the full minutes text for item 668.

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to the Policy & Resources Scrutiny Committee for consideration.

The Committee considered Minute 606 of Cabinet held on the 17^th January 2019 which had been referred direct to the Policy and Resources Scrutiny Committee together with a report of the Strategic Director (Transformation) setting out for consideration the implications for the Council of the UK leaving the European Union (EU).

Resolved:-

That the following decision of Cabinet be noted:

“That the likely implications, including risks and opportunities, for the Council leaving the EU and the action being taken by the Council to address these, be noted.”

Note: This is an Executive Function

Cabinet Member: Cllr Lamb

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to the Policy & Resources Scrutiny Committee for consideration.

The Committee considered Minute 608 of Cabinet held on the 17^th January 2019 which had been referred direct to the Policy and Resources Scrutiny Committee together with a report of the Strategic Director (Finance and Resources) concerning the calculation of the Council Tax Base for 2019/20 and the submission of the National Non Domestic Rates (NNDR1) form to the Department of Communities and Local Government (DCLG) by 31^st January 2019.

Resolved:-

That the following decisions from Cabinet be noted:-

“In respect of the Council Tax Base:

1. That in accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 1992 (as amended by the Local Authorities (Calculation of Council Tax Base) (Amendment) (England) Regulations 2003) and Local Government Finance Act 2012 (Calculation of billing authority’s council tax base Section 15):

The Local Council Tax Support Scheme for 2019/20 approved by Council on 13 December 2018, be incorporated into the Council Tax base setting as outlined in Appendices A and B to the submitted report;

That the following changes to Council Tax discounts and exemptions approved by Cabinet on 5 January 2016 will remain unchanged, with the exception of the premium increase from 50% to 100% on Long Term Empty properties (those properties which have been empty for over 2 years or more) from 1 April 2019, these will be incorporated into the Council Tax Base:-

·      Properties requiring or undergoing structural alteration or major repairs (Class D) as allowed by Section 11A of the Local Government Finance Act 2012 is set at 0%;

·      Vacant and substantially unfurnished properties (Class C) as allowed by Section 11A of the Local Government Finance Act 2012 to be entitled to receive a discount of 100% for up to 1 month.

·      The second homes discount and exemption (Classes A and B) that were approved by Council on 13 December 2012 will remain unchanged from 1 April 2019 and these are incorporated into the Council Tax Base;

·      Long-term empty homes (Class C) as allowed by Section 11A of the Local Government Finance Act 2012, a current surcharge of 50% is set allowing a full charge of 150% where they have been unoccupied for more than 2 years.  From April 2019 this surcharge will increase to 100% allowing a full charge of 200%;

·      That a continuous 6 week period of occupancy is required between empty periods before a further discount can be awarded;

2. That the amount calculated by Southend-on-Sea Council as its Council Tax Base for the year 2019/20 shall be 58,424.44 (Appendix A).

3. That the amount calculated by Southend-on-Sea Council as the Council Tax Base in respect of Leigh-on-Sea Town Council for the year 2019/20 shall be 8,839.09 (Appendix B).

In respect of the Non-Domestic Rates Base (NNDR1 Form):

4. That the NNDR1 form at Appendix C to the submitted report be approved for submission to the Ministry of Housing, Communities and Local Government.”

Note: This is an Executive Function

Referred direct to: Policy and Resources Scrutiny Committee

Cabinet Member:  ...  view the full minutes text for item 670.

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to the Policy & Resources Scrutiny Committee for consideration.

The Committee considered Minute 609 of Cabinet held on the 17^th January 2019 which had been referred direct to the Policy and Resources Scrutiny Committee together with a joint report of the Deputy Chief Executive (People) and Strategic Director (Finance and Resources) setting out the Housing Revenue (HRA) budget for 2019/20, together with the information necessary to set a balanced budget as required by legislation.

In response to questions that an Equalities Impact Assessment had not been undertaken in respect of the proposals contained in the report, the Cabinet Member for Adults and Housing said that this would be considered as part of the proposals to be discussed by Cabinet at the meeting on 12^th February 2019.

Resolved:-

That the following decisions from Cabinet be noted:-

“1. That a rent reduction of 1% on secure tenancies, as required by the Welfare Reform and Work Act 2016, be endorsed.

2. That an average rent increase of 4.86% on shared ownership properties, be endorsed.

3. That the proposed rent changes in 1 and 2 above be effective from 1 April 2019.

4. That the increase in garage rents by 2.5% to £11.70 per week for tenants (£14.04, being £11.70 plus VAT for non-tenants), with all variants on a standard garage receiving a proportionate increase, be endorsed.

5. That the South Essex Homes core management fee of £5,738,000 for 2019/20, be endorsed, with additional one-off funding also being made available of:

·           £10,000 for the data cleansing, training and embedding of new data protection practices in compliance with General Data Protection Regulations (GDPR); and

·           £140,000 to undertake a project to achieve better integration between the various ICT systems that the company uses, with the aim to achieve efficiencies going forward.

6. That the South Essex Homes proposals for average changes of 4% in service charges and 17% in heating charges, be endorsed.

7. That the following appropriations, be endorsed:

·           £60,000 to the Repairs Contract Pensions earmarked reserve;

·           £1,397,000 to the Major Repairs earmarked reserve; and

·           £444,000 HRA to the Capital Investment earmarked reserve.

8. That, subject to 1 to 7 above, the HRA budget as set out in Appendix 1 to the submitted report, be endorsed.

9. That the value of the Council’s capital allowance for 2019/20 be declared as £37.326M, as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.”

Note: This is an Executive Function save that approval of the final budget following Cabinet on 12^th February 2019, is a Council Function.

Cabinet Member: Cllr Cox

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to all Scrutiny Committees for consideration.

The Committee considered Minute 610 of Cabinet on 17^th January 2019, which had been referred direct by Cabinet to all three Scrutiny Committees together with a report of the Strategic Director (Finance and Resources) outlining a draft programme of capital investment for the period 2019/20 to 2023/24.

Resolved:-

That the following decisions of Cabinet be noted:-

“1. That the current approved programme for 2019/20 to 2021/22 of £153.1m as set out in Appendix 1 to the submitted report, be noted.

2. That the Capital Investment Strategy for 2019/20 to 2023/24, as set out in Appendix 2 to the report, be approved.

3. That the following be approved:

(i) New schemes and additions to the Capital Investment Programme for the period 2019/20 to 2023/24 totalling £14.5m for the General Fund and £20.8m for the Housing Revenue Account (Appendix 6 to the submitted report);

(ii) Schemes subject to external funding approval for the period 2019/20 to 2020/21 totalling £3.0m (Appendix 6 to the report);

(iii) Schemes subject to viable business cases for the period 2019/20 to 2021/22 totalling £48.6m (Appendices 6 and 7 to the report).

4. That it be noted that the changes to the approved Programme will result in a proposed Capital Investment Programme of £177.0m for 2019/20 to 2023/24, as set out in Appendix 7 to the report, of which £70.7m is supported by external funding.

5. That it be noted that a final review is being undertaken on the 2018/19 projected outturn and the results will be included in the report to Cabinet on 12 February 2019.”

Note: This is an Executive Function save that approval of the final budget following Cabinet on 12 February 2019 is a Council Function.

Cabinet Member: Cllr Lamb

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to all Scrutiny Committees for consideration.

The Committee considered Minute 611 of Cabinet held on 17th January 2019, which had been referred direct by Cabinet to all three Scrutiny Committees, together with a report of the Corporate Management Team presenting the draft revenue budget for 2019/20.

Resolved:-

That the following decisions of Cabinet be noted:-

“1. That the 2019/20 draft revenue budget and any required commencement of consultation, statutory or otherwise, be endorsed.

2. That it be noted that the 2019/20 draft revenue budget has been prepared on the basis of a Council Tax increase of 4.49%, being 2.99% for general use and 1.5% for Adult Social Care.   

3. That it be noted that the 2019/20 draft revenue budget has been prepared using the provisional local government finance settlement and that the outcome from the final settlement will need to be factored into the final budget proposals for Budget Cabinet and Budget Council.

4. That the 2019/20 revenue budget, as endorsed, be referred to all three Scrutiny Committees, Business sector and Voluntary sector to inform the Budget Cabinet, which will then recommend the Budget and Council Tax to Budget Council.

5. That the Schools budget position and that the recommendations for the  Education Board on 22 January 2019, as set out in Appendices 11and 11(i) to the submitted report, be noted and referred to the People Scrutiny Committee and then to Budget Cabinet and Budget Council.

6. That the direction of travel for 2020/21 and beyond, noting the need for the organisation to move to a longer term and outcome based budgeting approach as set out in Section 15 of the report, be endorsed.”

Note: This is an Executive Function save that approval of the final budget following Cabinet on 12th February 2019 is a Council Function.

Cabinet Member: Cllr Lamb

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to the Policy & Resources Scrutiny Committee for consideration.

The Committee considered Minute 612 of Cabinet held on 17^th January 2019 which had been referred direct to the Policy and Resources Scrutiny Committee together with a report of the Deputy Chief Executive (People). This provided an overview of the future phases of the HRA Land Review project and requesting agreement to progress with Phases 3 and 4 of the project, to fund and construct 56 units of affordable housing and undertake feasibility studies for Phases 5 and 6 of the project.  The report also sought agreement to undertake Modern Methods of Construction (MMC) pilot projects across 2 garage sites and develop a Land Purchase Fund using existing S106 contributions.

In response to questions regarding the report, the Cabinet Member for Adults and Housing confirmed the following:-

·           in the context of this report, ‘affordable housing’ means Council housing for rent at locally affordable rent levels

·           the Council will continue to undertake the necessary business case assessment on any future disposals of isolated housing assets in the General Fund, to identify whether they can be used for housing

·           if the modular build is successful, this will be tested on larger scale.

Resolved:-

That the following decisions of Cabinet be noted:-

“1. That sites be brought forward within Phases 3 and 4 of the HRA Land Review.

2. That further feasibility work be undertaken on a number of sites that will form Phases 5 and 6 of the HRA Project.

3. That the proposed method of funding for the projects and the use of S106 funds for the feasibility  works for Phases 5 and 6, to a maximum of £50,000, be endorsed.

4. That the options for the delivery of 2 garage sites for Modern Methods of Construction (MMC) pilots be investigated, including undertaking a procurement exercise of solutions put forward by the market and also a value for money exercise.  Furthermore, to explore subsequent pilot sites to test Modern Methods of Construction on a broader scale, including Lundy Close.

5. That the use of S106 contributions received from developers, in order to facilitate the provision of affordable housing through the creation of an ongoing fund for the purchase of developable land in the borough, be endorsed.”

Note: This is an Executive Function

Cabinet Member: Cllr Cox

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to the Policy & Resources Scrutiny Committee for consideration.

The Committee considered Minute 616 of Cabinet held on 17^th January 2019 which had been referred direct to the Policy and Resources Scrutiny Committee. This concerned the notice of motion calling on the Council to explore all avenues for building social housing for rent at the former NHS land at Fossetts Farm and investigate potential funding options and calculating the potential benefit, both financial and social to Southend’s residents.

Resolved:-

That the following decisions from Cabinet be noted:-

“1. That the notice of motion, be noted.

2. That the Council continues the work to identify housing development opportunities and the best way to deliver the scale of new housing, and specifically locally affordable housing, needed in Southend.

3. That through the work in 2 above, to identify the best delivery methods for those opportunities, including those which are best delivered through Southend Housing Ltd.

4. To continue working in partnership with Homes England to achieve the best outcome for development of the Fossetts Farm site, in terms of the number, tenure, affordability, design and overall quality of the homes to be built.”

Note: This is an Executive Function

Cabinet Member: Cllr Cox

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to all Scrutiny Committees for consideration.

The Committee considered Minute 617 of Cabinet held on 17th January 2019, which had been referred direct by Cabinet to all three Scrutiny Committees together with a report of the Chief Executive presenting the corporate risk register Quarter 3 update.

Resolved:-

That the following decision of Cabinet be noted:-

“That the 2018/19 Corporate Risk Register and the Quarter 3 updates outlined in Appendix 1 to the submitted report, be noted.”

Note: This is an Executive Function

Cabinet Member: Cllr Lamb

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to the Policy & Resources Scrutiny Committee for consideration.

The Committee considered Minute 618 of Cabinet held on 17^th January 2019 which had been referred direct to the Policy and Resources Scrutiny Committee together with a report of the Strategic Director (Finance and Resources) on the above.

Resolved:-

That the following decisions from Cabinet be noted:-

“1. That the current outstanding debt position as at 30^th November 2018 and the position of debts written off to 30^th November 2018, as set out in Appendices A and B of the submitted report, be noted.

2. That the write-offs greater than £25,000, as detailed in Appendix B to the report, be approved.”

Note: This is an Executive Function

Cabinet Member: Cllr Lamb

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to the Policy & Resources Scrutiny Committee for consideration.

The Committee considered Minute 619 of Cabinet held on 17^th January 2019 which had been referred direct to the Policy and Resources Scrutiny Committee together with a report of the Strategic Director (Transformation). This recommended amendments to the Constitution and the Council’s employment policies in respect of the dismissal appeal process.

Resolved:-

That the following recommendations of Cabinet be noted:-

Note: This is a Council Function

Cabinet Member: Cllr Lamb

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to all Scrutiny Committees for consideration.

The Committee considered Minute 620 of Cabinet held on 17th January 2019, which had been referred direct by Cabinet to all three Scrutiny Committees together with a report of the Strategic Director (Finance and Resources) presenting the Revenue and Capital budget report for the period ending 30^th November 2018.

Resolved:-

That the following decisions of Cabinet be noted:-

“That, in respect of the 2018/19 Revenue Budget Monitoring as set out in appendix 1 to this report:

1. That the forecast outturn for the General Fund and Housing Revenue Account, as at November 2018, be noted.

2. That the planned management actions of £3,230,000 to achieve that forecast outturn, be noted.

3. That the planned budget transfers (virements) of £949,000, be approved.

4. That the transfer of £413,000 from the Children Social Care reserve to support additional secured placements, be approved.

5. That the transfer of £472,000 from the Dedicated School Grant reserve to support 2018/19 in year funding pressures, be approved.

6. That the potential transfer of £1,505,000 to the Business Transformation Reserve in respect of the forecast General Fund underspend, be noted.

7. That the potential transfer of £24,000 to the HRA Capital Investment Reserve in respect of the forecast HRA underspend, be noted.

That, in respect of the 2018/19 Capital Budget Monitoring as set out in appendix 2 of this report:

8. That the expenditure to date and the forecast outturn as at November 2018 and its financing, be noted.

9. That the requested changes to the 2018/19 capital investment programme as set out in Section 2 of Appendix 2 of the report, be approved.”

Note: This is an Executive Function

Cabinet Member: Cllr Lamb

Members are reminded to bring with them the most recent MPR for period end November 2018 circulated recently.

Comments/questions should be made at the appropriate Scrutiny Committee relevant to the subject matter.

The Committee considered Minute 621 of Cabinet held on 17th January 2019, which had been referred direct by Cabinet to all three Scrutiny Committees together with the Monthly Performance Report covering the period to end November 2018.

Resolved:-

That the report be noted.

Note:- This is an Executive Function.

Executive Councillor:- As appropriate to the item.

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to the Policy & Resources Scrutiny Committee for consideration.

The Committee considered Minute 622 of Cabinet held on 17^th January 2019, which had been referred direct to scrutiny relating to item 1.1 (Grant of agreement lease of land at East Beach for a Restaurant Development).

Resolved:-

That the decision of Cabinet be noted:

Note: This is an Executive Function

Cabinet Member: Cllr Lamb

Further to Minute 504 of its meeting held on 29^th November 2018, the Committee received a brief oral update on the progress that had been made with the joint in-depth study to date.

Resolved:-

That the update be noted.

Note:- This is a Scrutiny Function.

That, under Section 100(A)(4) of the Local Government Act 1972, the public be excluded from the meeting for the item of business set out below, on the grounds that it would involve the likely disclosure of exempt information as defined in Part 1 of Schedule 12A to the Act and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Item 1.1 Grant of agreement lease of land at East Beach for a Restaurant Development

The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to the Policy & Resources Scrutiny Committee for consideration.

The Committee considered Minute 624 of Cabinet held on 17^th January 2019, which had been referred direct to the Policy and Resources Scrutiny Committee relating to item 1.1 (Grant of agreement lease of land at East Beach for a Restaurant Development).

Resolved:-

That the decision of Cabinet be noted:

Note: This is an Executive Function

Cabinet Member: Cllr Lamb