To receive apologies for absence.

Apologies were received from Councillor A Warmington.  Apologies were also received from the co-optees Mrs Fisher and Mr Sell.

To receive details of members nominated to attend the meeting in place of a member of the committee.

No substitutions were made.

To receive any declarations of interest by members.

There were no declarations of interest.

To receive the minutes of the meeting held on 5 September 2016.

RESOLVED:       That the minutes of the meeting held on 5 September 2016 be approved as a correct record.

To consider suggestions from the public on issues the committee could scrutinise in the future.

(There will be no discussion of the issue at the time when the matter is raised.  Consideration will be given to whether it should form part of the committee’s work programme when compared with other competing priorities.)

No suggestions had been received.

To note questions received from the public and the items to which they relate.

(Questions are welcomed for consideration at a scrutiny committee meeting subject to the question being directly relevant to an item listed on the agenda below.  If you have a question you would like to ask then please submit it no later than 5.00 pm on Wednesday 14 September 2016 to tbrown@herefordshire.gov.uk)

No questions had been received.

To seek the views of the general overview and scrutiny committee on the four year central government funding deal.

Further to its meeting on 5 September the Committee gave further consideration to the four year central government funding deal.

The Head of Corporate Finance presented the report.  She highlighted the following points on accepting the settlement: it did not prevent the authority lobbying for additional resources; it provided certainty for the authority’s long term plans, meaning less risk in setting budgets; it was in line with the medium term financial settlement and supported the delivery of the council’s savings plans.

Business rates retention of 100% was expected to be introduced by the end of the parliament. However, until the end of 2019/20 ,as the annex to the Secretary of State’s letter at appendix 2 stated, the current system of assessed funding need for business rates and top ups would continue. The council would retain the funding it had expected under the system until the end of 2019/20.

Appendix 4 to the report sought to address points raised by the Committee at its meeting on 5 September.  In terms of the approach of other local authorities over 40% had officially accepted the government’s offer.  A further 30% had indicated that they intended to accept it.  She was not aware of any authority having decided not to accept the offer.

The offer provided certainty and this was what the authority and other authorities had been requesting from government for some time, mindful that achieving savings required a lead in time. 

She noted that the efficiency statement at appendix 3 to the report had been updated and a revised version had been circulated with the Cabinet agenda papers for its meeting on 23 September.

In discussion the following principal points were made:

Several members suggested that a considerable amount of uncertainty remained making it difficult to judge whether it was better to accept or reject the settlement.

In response to questions the Head of Corporate Finance commented:

·        The district councils within the west midlands combined authority area had accepted the settlement.  She was awaiting information from other authorities.

·        She was not aware that any of the authorities who had accepted the offer were doing so subject to terms and conditions they wished the government to meet.

·        The government had stated that the level of funding currently provided to individual authorities from business rates would be funded nationally until the end of 2019/20.

·        The authority was working on its response to the current consultation on 100% business rates retention.  The closing date for the consultation was 26 September.  No government response would therefore be available before the 14 October the deadline for accepting the four year settlement offer.

·        The understanding was that if further savings were required by government during the period of the four year settlement those authorities who had not accepted the deal would be first in line for budget reductions.

·        Business rate growth had been between 1.9% and 2% since 2013/14 and that was the estimated growth forecast used in planning up until the end of 2019/20.  The national assessment  ...  view the full minutes text for item 27.

The next scheduled meeting is Tuesday 27 September at 10:00 am.

Monday 14 November from 9.30 am.