To receive any apologies for absence.

Apologies for absence were submitted on behalf of Councillor Emsley and Councillor R. Massey.

To approve the minutes of the Cabinet meeting held on 24^th October 2023.

Resolved – That the minutes of the Cabinet meeting held on 24^th October 2023 be approved as a correct record.

Members are required to declare any disclosable pecuniary, personal or personal and prejudicial interests they may have and the nature of those interests relating to items on this agenda and/or indicate if S106 of the Local Government Finance Act 1992 applies to them.   

There were no declarations of interest.

To determine any items on the agenda, if any, where the public are to be excluded from the meeting.

Resolved - That agenda Item Nos.16, 17, 18, 19 and 20 be considered following the exclusion of the press and public.

To determine whether there are any additional items of business which, by reason of special circumstances, the Chair decides should be considered at the meeting as a matter of urgency.

The Cabinet Member for Regeneration and Housing reported that a member of the public had raised concerns in relation to organised crime gangs and drug dealing in Rochdale.  It was suggested that an open letter be drafted outlining the issues and concerns, similar to a letter published by the Liverpool City Region Combined Authority.

Resolved

1.    That the Chair agreed to consider agenda Item No. 21 Third Party Loan as an urgent item.

2.    That an open letter outlining concerns regarding organised crime gangs and drug dealing in Rochdale be drafted.

To consider a report of the Cabinet Member for Finance and Corporate /  Director of Corporate Services.

Consideration was given to a report of the Cabinet Member for Finance and Corporate / Director of Corporate Services that set out the Council’s forecast 2023/24 financial position as at the end of September 2023.

Resolved

1.    That the forecast 2023/24 financial positions for Revenue, Capital, and the Collection Fund as at the end of September 2023, as detailed in section 5 of the report, be noted.

2.    That Cabinet noted the £6,870k forecast overspend reported by the Children’s Directorate, and that a recovery plan was being developed that would be reported alongside the Finance Update report.

3.    That the Budget Pressures requests as detailed in section 5.4 of the report be approved and the Chief Finance Officer, in consultation with the Cabinet Member for Finance and Corporate, be authorised to increase the level of Budget Pressures allocated to offset Children’s Services legal costs, if required.

4.    That the update on the Health and Social Care Pooled Budget as detailed in section 5.5 of the report be noted.

5.    That the net Capital budget changes of £11,240k, as detailed in section 5.6.1.of the report be noted.

6.    That the Capital re-phasing of £36,790k into future years detailed in section 5.6 and Appendix B (2) of the report be noted.

7.    That the request to switch capital budgets within Economy, Corporate and Neighbourhoods directorates as detailed in section 5.6.3 of the report be approved.

8.    That the request to switch £972k budget from the Capital Investment Fund to fund a number of schemes within the directorates as detailed in section 5.6.3 of the report be approved.

9.    That the Property Growth Fund update set out in section 5.8 of the report be noted.

10.That the Treasury Management update for Quarter 2 in section 5.9 and Appendix C of the report be noted.

Reason for decision

To provide an update on the financial position of the Council, as effective budget management was critical to ensuring financial resources were spent in line with the budget and were targeted towards the Council’s priorities.

Alternatives considered

Not to consider the Q2 23/24 Finance Update – this option was not recommended as the Council’s financial reporting complied with CIPFA’s Financial Management Code and its standards to ensure management of financial resources in the short, medium and long term, the management of financial resilience to meet unforeseen demands on services and management of unexpected shocks within financial circumstances.

To consider a report of the Cabinet Member for Finance and Corporate / Director of Corporate Services.

Consideration was given to a report of the Cabinet Member for Finance and Corporate / Director of Corporate Services that provided an update on the Revenue Budget 2024/25 to 2026/27 and the Council’s Medium Term Financial Strategy.

Resolved

1.    That the updated Revenue Budget Position 2024/25 to 2026/27, including the forecast budget gap for 2024/25 being £3.600 million be noted.

2.    That it be noted that further work was required to set a balanced budget at Budget Council in February 2024, following the announcement of the provisional and final settlement.

3.    That the update regarding the Council’s Medium Term Financial Strategy be noted.

Reason for decision

Cabinet was required to recommend a balanced 2024/25 Revenue Budget to Budget Council, and provisional budgets for 2025/26 to 2026/27. The Council was required to set a balanced budget for 2024/25 by 11th March 2024.

The Revenue Budget and Medium Term Financial Strategy were key elements of the budget setting process.

Alternatives considered

Not to consider the Revenue Budget and Medium Term Financial Strategy – this option was not recommended as the Council was legally obliged to set a balanced budget. The budget setting process was complex and must be undertaken in a planned way. It was equally important that assumptions used in the preparation of the budget were agreed, reasonable and consistently applied by all services.

To consider a report of the Cabinet Member for Finance and Corporate /  Director of Corporate Services.

Consideration was given to a report of the Cabinet Member for Finance and Corporate / Director of Corporate Services that sought approval to submit a report to Council to agree the calculation of the 2024-25 Council Tax base.

Resolved

That Cabinet approve, for submission to Council on 13^th December 2023:

1.    The Council Tax base expressed as “Band D equivalent properties”, be recommended as 58,500 for 2024/25 (2023/24: 57,552) as detailed at Appendix 1 of the report.

2.    The Local Council Tax Support Scheme for 2024/25 remained unchanged.

3.    The proposed precepts payment schedule detailed in paragraph 5.3.3 of the report

Reason for decision

Rochdale Borough Council, as a Council Tax billing authority, was required each year to make statutory calculations specified in Section 31B of the Local Government Finance Act 1992 (as amended). The Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012 required authorities to calculate the Council Tax base (number of taxable properties), expressed as "Band D equivalent properties". Approval of the calculations was required by 31 January in each financial year.

The Local Government Finance Act 1992 prescribed the procedures to be adopted in setting precept payment dates. The Act required billing authorities to notify precepting authorities of a proposed payments schedule. The notification was required before 31 December in respect of the following financial year. The final payments schedule was then confirmed by 31 January.  The calculation of the tax base had to be made by 31 January and notified to the major precepting and levying authorities.

Alternatives considered

Not to consider calculation of the 2023-24 Tax base report – this option was not recommended as it was a statutory requirement for the Council to calculate and approve a Council Tax base each financial year.

To consider a report of the Cabinet Member for Finance and Corporate / Director of Corporate Services.

Consideration was given to a report of the Cabinet Member for Finance and Corporate / Director of Corporate Services that sought approval to remove Council Tax discounts provided by the Council in relation to empty properties.

Resolved

That Cabinet approve, for submission to Council on 13^th December 2023:

1. The removal of Council Tax discounts provided in respect of empty properties.

2. A change to the date from which the 100% Council Tax Empty Property premium was applied from two years after the property became empty to one year.

3. The application of a Council Tax premium in respect of second homes with effect from 1 April 2025.

4. That the Chief Finance Officer, in consultation with the Cabinet Member for Finance and Corporate be authorised to agree the Council’s Empty Property Discount Policy and its Empty Property Premium Waiver Policy should the outcome of Government consultation on the Levelling Up and Regeneration bill provide for any changes to the draft bill.

Reason for decision

There were defined classes of property that were to be awarded a statutory exemption from Council Tax if they became empty.

On 1 April 2013, Government gave local authorities power to determine the level of empty property discounts (Sections 11 and 12 of the Local Government Finance Act 2012) and the power to charge a premium of 50% where a property has been empty in excess of two years.

In addition to statutory exemptions the Council was able to apply a range of local policies.

Alternatives considered

To continue with the existing empty property discounts i.e empty property premium could remain payable after two years and a premium in respect of second homes could not be applied.  This option was not recommended as Government had identified additional measures needed to make improvements.

To consider a report of the Cabinet Member for Finance and Corporate /  Director of Corporate Services.

Consideration was given to a report of the Cabinet Member for Finance and Corporate / Director of Corporate Services that sought approval to submit a report to Council to agree setting the Business Rate Base 2024-25.

Resolved

That Cabinet approve, for submission to Council on 13^th December 2023:

1. The draft Business Rate baseline figure of £77.171m for 2024/25, subject to any changes which may result from:

·         The provisional Local Government Finance Settlement 2024/25.

·         The issue of the Department for Levelling Up, Housing and Communities (DLUHC) guidance on completion of the 2024/25 Business Rates baseline return (NNDR1), due in January 2024.

2. That the Chief Finance Officer, in consultation with the Cabinet Member for Finance and Corporate, be authorised to conclude and agree the final Business Rates baseline return (NNDR1) due on 31 January 2024, should the final information yet to be received from DLUHC change the baseline figure for 2024/25.

3. That the precepts payment schedule detailed in paragraph 5.2.2 of the report be approved.

Reason for decision

The Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) require billing authorities to notify the Secretary of State and their major precepting authority of their calculation of non-domestic rating income for the following financial year and the estimated surplus/deficit on the Collection Fund by 31 January each year.

The figures were produced subject to the DLUHC guidance being published and provided, following which the figure in the report may have to be revisited.

Alternatives considered

Not to consider the Business Rate Base 2024-25 - this option was not recommended as it was a statutory requirement for the Council to calculate and approve a Council Tax base each financial year.

To consider a report of the Cabinet Member for Finance and Corporate /  Director of Corporate Services.

Consideration was given to a report of the Cabinet Member for Finance and Corporate / Director of Corporate Services that provided an update in relation to the Council’s Capital Programme 2024/25 to 2028/29.

Resolved

1. That the proposed changes to the Capital Programme 2023/24, which was now £118.361m be noted.

2. That the Capital Programme for 2024/25 of £170.050m and provisional programmes for 2025/26 to 2028/29, as a basis for consultation, subject to confirmation of grant funding allocations, as detailed in Appendix 1 be approved.

3. That the additional revenue cost of new capital schemes and inflation was £0.152m in 2024/25 rising to a future year full year effect of £0.845m by 2028/29 be noted.

4. That a review of the phasing of the existing Capital Programme and the use of £3.3m of Capital Receipts to fund shorter life schemes had resulted in reduced revenue costs of circa £1m in 2024/25 and 2025/26, with reduced savings across future years. And that this had resulted in a net revenue cost reduction in 2024/25 (£0.854m) and 2025/26 (£0.701m), and a net revenue cost increase in 2026/27 (£0.384m) be noted

5. That the next steps of the consultation process which would take place over the autumn 2023 be approved.

Reason for decision

Cabinet was required to recommend a balanced 2024/25 Revenue Budget to Budget Council, and provisional budgets for 2025/26 to 2026/27.

The Council was required to set a balanced budget for 2024/25 by 11th March 2024.  The Capital Programme was a key element of the budget setting process.

Alternatives considered

The Council was legally obliged to set a balanced budget. The budget setting process was complex and must be undertaken in a planned way. It was equally important that assumptions used in the preparation of the budget were agreed, reasonable and consistently applied by all services.

A number of alternative elements of the Capital Programme had been considered in the development of the programme, the one which was presented was of the most strategic/community value and was aligned with the Council’s priorities, and therefore formed the basis for consultation, on the understanding that any alternatives offered during the process would be considered.

To consider a report of the Cabinet Member for Finance and Corporate /  Director of Corporate Services.

Consideration was given to a report of the Cabinet Member for Finance and Corporate / Director of Corporate Services that detailed the proposed Discretionary Fees and Charges for 2024/25 as a basis for consultation and listed the charges which were proposed to be exempt or different from the general 5% increase.

Resolved

1. That the updated Discretionary Fees and Charges for 2024/25, as a basis for consultation be approved.

2. That it be noted that a 1% change to the Discretionary Fees and Charges would mean an increase or decrease of £40k. Any change to the % increase could be considered as part of the consultation.

3. That the charges exempt from the general 5% increase, as set out in paragraph 5.3 of the report be approved.

4. That the different % increases, as set out in paragraph 5.4 of the report be approved.

5. That the proposed new Discretionary Fees and Charges, as set out in paragraph 5.5 of the report be approved.

Reason for decision

The fees and charges set out in the report had been proposed by each Directorate, taking into account the 5% general uplift in Discretionary Fees and Charges. It was recommended that no uplift be applied to the fees and charges detailed in paragraph 5.3 of the report.

It was recommended that the fees and charges in paragraph 5.4 were uplifted by the amounts stated in the report. It was also recommended that the new fees and charges in paragraph 5.5 of the report be approved for consultation.

Alternatives considered

Not to review or increase fees and charges – this option was not recommended as it would potentially reduce the income available to the Council and make it more difficult to achieve a balanced budget.

To consider a report of the Cabinet Member for Cabinet Member for Children’s Services and Education / Director of Children’s Services.

Consideration was given to a report of the Cabinet Member for Children’s Services and Education / Director of Children’s Services that provided a forecast for 2023/24 of the financial position and detailed issues impacting the Children’s Service directorate.

Resolved - That the financial and related service data, and plans for the remainder of 2023/24 and the medium term be noted.

Reason for decision

To update Cabinet on the financial position of the directorate as effective budget management was critical to ensuring financial resources were spent in line with the budget, and were targeted towards the Council’s priorities.

Alternatives considered

Not to consider the Children’s Services Q2 2023/24 Revenue Monitoring Update – this option was not recommended as financial reporting ensured the Council complied with CIPFA’s Financial Management Code and its standards for management of financial resources in the short, medium and long term.  Management of financial resilience to meet unforeseen demands on services, and management of unexpected shocks within financial circumstances.

To consider a report of the Cabinet Member for Children’s Services and Education / Director of Children’s Services.

Consideration was given to a report of the Cabinet Member for Children’s Services and Education / Director of Children’s Services that sought approval to enter into negotiations to purchase new homes to accommodate children who were cared for by the local authority.

Resolved

1. That the proposal to enter into negotiations for the in-principle purchase of two 4/5-bedroomed homes to be converted to residential children’s homes be approved.

2. That spend of up to £1.4m for the purchase and refurbishment of two 4/5-bedroomed homes to be converted to residential children’s homes be approved.

3. That the Director of Economy, in consultation with the Director of Children’s Services, be authorised to enter into negotiations and agree terms for the purchase of the premises, for the purpose of two children’s homes, with approval to the agreed terms being delegated to the Director of Children’s Services.

4. That the Director of Neighbourhoods, in consultation with the Director of Children’s Services, and the Director of Corporate Services be authorised to undertake procurement, appoint contractors and enter into legal agreements for the refurbishment of the premises to make it fit as children’s homes.

5. That the Assistant Director of Legal and Governance be authorised to enter into the necessary legal documentation.

6. That the proposal for future decisions regarding the homes to be delegated to the Director of Children’s Services, in consultation with the portfolio holder, the Director of Corporate Services and the Leader of the Council be approved.

Reason for decision

Cabinet on the 1st October 2019 approved a 5 year strategy for children’s social care. The Strategy involved a Greater Manchester wide innovation programme to deliver improvements across the wider area through three strands. The ACT: Achieving Change Together programme for vulnerable adolescents; the “No Wrong Door” edge of care programme to reduce the number of children in residential care; and the Strengthening Families pre-birth service for mothers who have previously had children removed.

Cabinet on 14th February 2023 noted, that following the Covid-19 pandemic, there had been a significant increase in the number of children coming into care. Whilst significant additional measures were being undertaken to address these pressures, there was a significant, current and pressing need to address the lack of sufficient in-borough placements to meet the needs of our cared for children in Rochdale.

Cabinet on 22nd November 2022 approved the Capital Programme to be distributed for consultation, the full programme was then approved at Budget Setting Council on 22nd February 2023. The programme included a capital spend allocation of £1.4m for residential children’s homes.

Each of the two homes would provide places for up to three children, with live in carers. Together the new houses would provide up to six additional places for cared for children within a home style environment in the borough. This had the potential to reduce the cost of external placements by £466k annually with the caveat that the council had a duty to find the most appropriate setting for each child.

Alternatives considered

The alternative to investing the capital sums  ...  view the full minutes text for item 84.

To consider that the press and public be excluded from the remaining part of the meeting pursuant to Section 100(A)4 of the Local Government Act 1972 on the grounds that discussions may involve the likely disclosure of exempt information as defined in the provisions of Part 1 of Schedule 12A to the Local Government Act 1972 and public interest would not be served in publishing the information.

That, in accordance with the provisions under Section 100(A) (4) of the Local Government Act 1972, as amended, the press and public be excluded from the meeting during the consideration of the following items of business. Reason for the Decision: Should the press and public remain during consideration of the items, there may be a disclosure of information that was deemed to be exempt under Part 3 of Schedule 12A of the Local Government Act 1972.

To consider a report of the Cabinet Member for Regeneration and Housing / Director of Economy.

Consideration was given to a report of the Cabinet Member for Regeneration and Housing / Director of Economy that provided an update on the progress of the Touchstones Capital Investment Project.

Resolved - That the recommendations as set out in the exempt report, be approved.

Reason for decision

In order to meet the Arts Council funding deadline and to continue to meet the terms of agreement, the project must remain on programme.

Alternatives considered

Not to proceed with the Capital Project – this option was not recommended as the existing Touchstones building would remain as it was and the Arts Council Grant funding would be lost.

To consider a report of the Cabinet Member for Finance and Corporate /  Director of Corporate Services.

Consideration was given to a report of the Cabinet Member for Finance and Corporate / Director of Corporate Services that provided an update regarding the financial position for Rochdale Riverside Retail and Leisure Development.

Resolved - That the Rochdale Riverside Financial Update 2023/24 report be noted.

Reason for decision

To update Cabinet on the financial position of the Council, to ensure that budget pressures were identified and corrective action was taken, to ensure that financial resources continued to be spent in line with the budget, and to enable decisions to be taken in full knowledge of all relevant financial implications.

To ensure Cabinet was aware of the anticipated financial performance of the Rochdale Riverside scheme over the next 10 years, including an understanding of business risk and opportunities

Alternatives considered

Not to consider the report – this option was not recommended as the report was provided for information to update on the financial position of the Council.

To consider a report of the Cabinet Member for Finance and Corporate /  Director of Corporate Services.

Consideration was given to a report of the Cabinet Member for Regeneration and Housing / Director of Economy that provided an update regarding the performance of the Council’s property investments and highlighted any associated risks.

Resolved - That the report, including the assessment of risk with regard to the property portfolio included at paragraph 10 and Appendix 2 of the report be noted.

Reason for decision

The report was provided for information. Awareness of the financial implications of the Council’s property investments was essential to enable informed decision-making.

Alternatives considered

Not to consider the report – this option was not recommended as the report was provided for information to update on the financial position of the Council’s property investments.

To consider a report of the Cabinet Member for Finance and Corporate /  Director of Corporate Services.

Resolved – That the report be withdrawn and resubmitted to a future meeting.

To consider a report of the Cabinet Member for Regeneration and Housing / Director of Neighbourhoods.

Consideration was given to a report of the Cabinet Member for Regeneration and Housing / Director of Neighbourhoods that set out the ongoing review of the Council’s Housing Allocation Policy.

Resolved - That the consultation on the proposed changes to the Allocations Policy, as detailed at Appendix 1 of the report, to start as soon as was reasonably practicable and to run for a fourteen-week period be approved.

Reason for decision

Agreement on the approach outlined in the report and the feedback from the consultation would enable officers to further progress the policy review and develop a draft policy document.

The Council had a duty to consult on significant policy changes to its housing scheme, in accordance to Section 166A(13) of the Housing Act 1996.

Alternatives considered

Details of the alternative options considered were set out in the exempt report.

To consider a report of the Leader of the Council and Cabinet Member for Finance and Corporate Services / Director of Corporate Services.

Consideration was given to a report of the Leader of the Council and Cabinet Member for Finance and Corporate / Director of Corporate Services.

Resolved - That a decision regarding the Third Party Loan be delegated to the Leader of the Council, in consultation with the Deputy Leader and Cabinet Member for Health, the Deputy Leader and Cabinet Member for Equity, Safety and Reform and the Director of Corporate Services.

Reason for decision

The resolution would allow additional information to be sought prior to a decision being taken.

Alternatives considered

Details of the alternative options considered were set out in the exempt report.

The Chair of the Corporate Overview and Scrutiny Committee had agreed the decision was urgent and to waiver the call-in process to allow the decision to be implemented immediately.