To receive apologies for absence.

Apologies for absence had been received from Councillors AJM Blackshaw, DW Greenow and RL Mayo.  Apologies had also been received from Mr P Burbidge and Miss E Lowenstein (education co-optees).

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

There were no named substitutes.

To receive any declarations of interest by members.

8          Proposed Revisions to the Council Tax Reduction Scheme 2015/16.

Councillor BA Durkin, Non-Pecuniary, A council appointed representative to Herefordshire Citizens' Advice Bureaux Trustee Board.

To receive the minutes of the meeting held on 8 September 2014.

The minutes of the meeting held on 8 September 2014 were received.

RESOLVED:  That the minutes of the meeting held on 8 September 2014 be approved as a correct record and be signed by the Chairman.

To consider suggestions from members of 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 in advance of the meeting.  The Chairman invited members of the public in attendance to suggest issues and Claire Keetch, Chief Executive of Herefordshire Citizens’ Advice Bureaux (CAB) suggested that, in view of the proposed revisions to the Council Tax Reduction Scheme and the potential for additional non-payment, the authority should consider how increased need for legal and debt advice could be met, especially considering the uncertainties around funding for the CAB service.

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

(Questions are welcomed for consideration at a scrutiny committee meeting so long as the question is directly related 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 two working days before the meeting to the officer named on the cover of this agenda).

Questions had been received from the following: Claire Greener of the NFU on behalf of the Herefordshire Tenants’ Association in relation to agenda item 4, Minutes; and Victoria Wegg-Prosser in relation to agenda item 7, Proposed Capital Programme 2015/16 to 2017/18.  The questions and officer responses were published in a supplement to the agenda and also circulated at the meeting.

Noting that a number of tenants were present, the Chairman said that he understood that there would be no changes to the policy in relation to smallholdings during the remainder of the current administration.  He said that there would be no debate on the issue at this meeting but the Head of Corporate Asset Management and the County Land Agent were available to speak to people outside the meeting.

To provide Cabinet with comments on the proposed additional capital investment programme for 2015/16 to 2017/18 inclusive for recommendation to Council on 12 December 2014.

The Chief Financial Officer presented the report, the key points included:

i.        Comments were invited from the committee on the proposed capital programme, for submission to Cabinet and subsequently to Council.

ii.       The current capital programme amounted to £146.7m.  The proposed additions to the scheme would cost £57.5m of which £48.6m would be funded from external sources.

iii.      A summary of the additions was appended to the report and an overview was provided of the principal requirements.

iv.      It was reported that the total outstanding debt was £168m as at 31 March 2014 and was being repaid at £10m per annum.  With additional investment already approved and the proposed additions identified in the report, the debt requirement would be £200m as at 31 March 2018.

v.       The authority had a long-term debt to asset percentage of 26%; this reflected the average position for all unitary authorities.

The principal points of the ensuing debate included:

1.       The Chief Financial Officer advised that the profile of the funding depended upon the details of the scheme involved; overviews were provided in relation to the South Wye Transport Package and Hereford Enterprise Zone.

2.       In response to a question from a member, the Chief Financial Officer explained that purchase of gritters would provide better value for money than leasing and the borrowing cost would be funded by the winter service budget.  The Director for Economy, Communities and Corporate said that a list of all vehicles in the council’s ownership would be provided to the member.

3.       Another member questioned why the savings in terms of vehicle leasing costs were not identified in the report and the Chief Financial Officer advised that the report identified capital programme intentions going forward, subsequent decision reports would set out the value for money and financing considerations in detail.  The member felt that there was an inconsistency in terms of presentation compared to the Hereford Enterprise Zone and the Chief Financial Officer said that he would review the relevant paragraphs before submitting the report to Cabinet. 

4.       The committee was advised that the Marches Local Enterprise Partnership Board was due to make a decision on the distribution of business rates and the identified investment in the Enterprise Zone would not proceed without a suitable arrangement in place.

5.       In response to questions about the Three Elms Trading Estate, the Head of Corporate Asset Management and the Cabinet Member for Contracts and Assets outlined the background to the issue and how the cost of borrowing would be funded from rental income.

6.       It was questioned whether investment in Colwall Primary School was being viewed in terms of the potential impact on schools provision in the wider catchment, especially given plans for the expansion of Ledbury Primary School.  The Chief Financial Officer said that the schools estate strategy was being updated and any investment would need to be made in the context of that strategy.  He added that a separate project was looking at various options for Colwall Primary School.  ...  view the full minutes text for item 27.

To seek the views of the committee regarding proposed revisions to the Council Tax Reduction Scheme.

The Chief Financial Officer presented the report and the following matters were highlighted:

a.       The national council tax benefit system was abolished with effect from 1 April 2013 and Herefordshire Council set up a localised Council Tax Reduction (CTR) scheme.

b.       For 2014/15, CTR support by the council was based on 84% of the applicant’s council tax charge.  The Medium Term Financial Strategy (MTFS) approved by Council in February 2014 assumed reductions in the level of support to 76% in 2015/16 and to 70% in 2016/17.

c.       Comments were invited from the committee on the proposed revisions to CTR for submission to the Leader (Cabinet Member for Corporate Strategy and Finance) and subsequently to Council.

d.       Cumulative surplus had been delivered against the plan in 2013/14 and 2014/15 and it was anticipated that there would be surplus of £211k in 2015/16 which could be used to provide a contribution towards demographic pressures.

e.       Approximately 5,000 residents of working age were in receipt of CTR at the maximum reduction of 84%, with a further 2,034 claimants having financial circumstances which entitled them to partial reduction.

f.        It was reported that the proportion of summonses issued for non-payment of council tax was significantly higher for those in receipt of CTR than those not in receipt of CTR; an additional charge for the cost of summonses was added to claimants’ debts.

The Chairman used his discretion to allow Richard Hadley of Ledbury Town Council to address the committee on this subject.  Town Councillor Hadley made a number of comments, including:

•        there was a high level of concern about this proposal, not just from those directly affected but also the wider community;

•        although public bodies had to look at potential cost savings and revenue generation, he did not consider this proposal to be acceptable;

•        the level of increase in 2015/16 (for a Band D property) for a resident in receipt of CTR would be around £130, representing a significantly higher increase than that for a resident not in receipt of CTR;

•        he considered the proposal unfair and felt that it targeted the poorest sections of the community;

•        claimants had received 100% discount under the national system, so the percentage increases each year were substantial;

•        the proposal contradicted the national strategy of lifting the least well off people out of tax thresholds;

•        Herefordshire had the lowest average earnings in the West Midlands region and some of the lowest in the country;

•        indices of poverty did not take into account the additional costs of living in rural areas;

•        one third of rural households were considered to be living in fuel poverty;

•        the proposal would affect hard working families and individuals, people with disabilities and long term health problems;

•        unemployment was generally low, meaning that CTR claimants were just ordinary people that found themselves in difficult circumstances;

•        information obtained from the council showed that around 7,000 people were facing court summonses, not only resulting in  ...  view the full minutes text for item 28.

To consider the committee’s work programme and to receive verbal updates on task and finish groups in progress.

The committee received the draft work programme and updates were received, from the respective chairman, on progress with the task and finish groups on Community Infrastructure Levy, Development Management (Planning) and Balfour Beatty Living Places. 

A committee member noted that there was important work to be undertaken on Digital Strategy but time was limited before the pre-election period.

RESOLVED:  That the work programme be noted.

The next scheduled meeting is Monday 24 November 2014; scrutiny members are advised to attend from 10.00am with the presentation of the Budget and Medium Term Financial Strategy at the Health and Social Care Overview and Scrutiny Committee.

Monday 24 November 2014