Agenda and minutes

Members and officers must declare any disclosable pecuniary interests in relation to any business on the agenda.  Declarations should also be made at any stage such an interest becomes apparent during the meeting. 

If in doubt contact the Legal or Democratic Services representative for this meeting.

There were no declarations of interest. 

To approve the minutes of the Joint Strategic Committee meeting held on 12 November 2024, copies of which have been previously circulated.

Resolved: that the minutes from the Joint Strategic Committee meeting held on 12 November 2024 be approved as the correct record

To receive any questions from members of the public.

Questions should be submitted by noon on Thursday 5 December 2024 to  Democratic Services, democratic.services@adur-worthing.gov.uk    

(Note: Public Question Time will operate for a maximum of 30 minutes.)

There were no questions from the public.

Pre-submitted Members questions are pursuant to rule 12 of the Council & Committee Procedure Rules.

Questions should be submitted by noon on Thursday 5 December 2024 to  Democratic Services, democratic.services@adur-worthing.gov.uk    

(Note: Member Question Time will operate for a maximum of 30 minutes.)

A Member asked the following question

I note Worthing Councils statement that it intends to write to MHCLG to request 'exceptional financial support'. Invariably if granted, this is achieved by granting a capitalisation direction which permits a local authority to meet its pressing revenue costs through using capital raised on assets that are sold, on current capital financial resources already held or on further borrowing by the authority. Clearly a lot of thought will have been applied prior to this request. So can you please explain what capital sum/s from what assets have been identified for capitalisation. 

Response:

I think it would help to provide some context which will help with the response to this question and some of the following questions from other members.

As you say exceptional funding support is provided in the form of a capitalisation direction which permits the use of capital resources to meet revenue costs. These capital resources can include capital receipts (for example from the sale of assets) and borrowing. The new Labour government has confirmed the removal of the interest premium which the Conservative government previously applied to borrowing for this purpose from the government (i.e. from the Public Works Loans Board or PWLB). So the borrowing costs will be lower that they previously would have been under a Tory government, interest rate movements notwithstanding.

We will be asking MHCLG (Ministry of Housing, Communities and Local Government) to address our central funding gap associated with homelessness and the supported accommodation subsidy.  This request is unlikely to have been reviewed before the 2025/26 budget is finalised and therefore funding support will be sought to bridge the budget gap followed by a correction to reflect the actual need to borrow.

To come to the specific question regarding the raising of sums from assets, I am sure you will appreciate this is a commercial matter so we cannot go into specifics.

You will recall that we presented our new asset strategy and draft disposals policy at the last of these meetings - these are important elements of our overall financial strategy irrespective of our conversations with MHCLG.  If we do, as we expect, receive a capitalisation directive from the government to address our funding gap then we will need to make sensible choices about where to apply our capital receipts vs when to borrow to support our revenue budget.  This will be done as part of our treasury management approach which is looking carefully at how we manage debt vs capital.

A Member asked the following question

The Financial Strategy and Organisational Design demonstrate that the Councils are not only redesigning services to meet significant financial challenges but also actively improving outcomes for our communities in ways that are more sustainable and cost-effective in the long term”. Given you have approached the government for exceptional financial support to balance a large budget gap, and given the scale of cuts you have had to make over the last few years, do you honestly believe that you  ...  view the full minutes text for item JSC/55/24-25

To consider any items the Chairman of the meeting considers to be urgent.

There were no urgent items

To consider a report by the Director for Sustainability and Resources, copy attached as item 6.

Before the Committee was a report by the Assistant Director for Sustainability and Resources, copies of which had been circulated to all Members and a copy of which is attached to the signed copy of these minutes as Item 6.

The purpose of treasury management reports that are submitted during the year was to ensure that proper scrutiny was undertaken of the treasury and capital expenditure activities of the Councils and that the activities were conducted in a prudent manner in order to safeguard the financial position of the Councils.

Councils were required by regulations issued under the Local Government Act 2003 to produce a mid-year treasury management review of activities; and a review of performance against the prudential and treasury indicators for the year.

The key message arising from the report was that both Adur and Worthing Councils had complied with the approved policies and the indicators agreed prior to the start of the financial year.

This report asked Members to note the Treasury Management mid-year performance for Adur and Worthing Councils at the 30 September 2024, as required by regulations issued under the Local Government Act 2003.

Decision:

That the report be noted and forwarded to the Worthing Borough Council Meeting on 17th of December 2024 and Adur District Council 19th of December 2024 for noting

Call In: Decisions of full council are not able to be called in

To consider a report by the Director for Sustainability and Resources, copy attached as item 7.

Before the Committee was a report by the Director for Sustainability and Resources, copies of which had been circulated to all Members and a copy of which is attached to the signed copy of these minutes as Item 7.

The report updated the Committee with the latest expenditure and income projections for both Adur District Council and Worthing Borough Council for the financial year 2024/25, compared to the Revenue Budget approved by both Councils in February. Whilst the 'spend to date' would be the position as at the 30th September 2024, the forecast outturn position reflected the information available to ensure an up-to-date forecast was presented.

The outturn projection for the 2024/25 financial year for the Worthing Borough Council General Fund was a net overspend of £511k and for Adur District Council General Fund was a net underspend of £333k. Those projections reflected the assumption that the budgeted contributions to rebuild reserves within the councils budgets would not be possible unless there were underspend outturn positions and surplus funds to transfer. A breakdown was set out in section 4.4 of the report.

The report showed that the councils were absorbing most of the considerable pressure of housing needs which had risen beyond the budget allocation which had in term been increased for 23/24, but the overspend in Worthing reflected the challenges that this had caused.

Decision:

That the report and projected outturn position be noted for the Joint Committee, Adur District Council and Worthing Borough Council against the approved revenue budgets and proposed use of reserves (Appendix 2b and 3b).

Call In: The call-in deadline for decisions will be 5.00pm on 20 December 2024

To consider a report by the Director for Sustainability and Resources, copy attached as item 8

Before the Committee was a report by the Director for Sustainability and Resources, copies of which had been circulated to all Members and a copy of which is attached to the signed copy of these minutes as Item 8.

This report updated the Committee on the progress made on the delivery of the 2024/25 Capital Investment Programme for Adur District Council and Worthing Borough Council. The programme included schemes which supported the delivery of services by the Joint Services Committee.

Included within the report was information about the prudential indicators which provided a link between the Councils’ revenue budget and capital budget. Quarterly monitoring of these indicators was a requirement of the prudential code

Decision:

1.    That the reprofiling of the Worthing Borough Council capital schemes as advised in paragraph 7.2.1 and appendix 2 be noted;

2.    That the Kingston Beach urgent virement be approved retrospectively as requested in 7.11;

3.    That the virement of grant funding to Splashpoint GSHP project be approved as requested in 7.2.2;

4.    That as at 6.3.1 that financial decisions in relation to Worthing Pier be considered as part of another report;

5.    That the budget amendments to both the Adur District Council and Worthing Borough Council 2024/25 capital programmes detailed in appendix 3 be approved following the programme review referenced in sections 4.2, 4.3 and 4.4 of the report

Call In: The call-in deadline for decisions will be 5.00pm on 20 December 2024

To consider a report by the Director for Sustainability and Resources, copy attached as item 9

Before the Committee was a report by the Director for Sustainability and Resources, copies of which had been circulated to all Members and a copy of which is attached to the signed copy of these minutes as Item 9.

The report presented an update on the budget setting process for 25/26 for both councils as well as updating on the progress of the implementation of the new financial strategy.

Progress on the new strategy was progressing well and was showing mid-term benefits, the short term budget pressures caused by external factors were considerable. As a result neither council was as yet able to show a balanced budget and the report showed the steps being taken to achieve this.

The Local Government Finance Policy Statement indicated a significant change to the approach to the settlement process and as such a likely material change to the budget position. The government had committed additional funding to local authorities, however the allocation across individual councils would not be visible until the provisional settlement. This is suggested by the focus on housing needs which was the main driver of the challenges in both Councils’ position. The statement was currently being reviewed and will be reflected in the next budget update alongside the updated funding levels for both councils.

Despite this, and despite the considerable work being done to redesign the organisation and implement a more resilient and sustainable financial strategy, it was clear that it was unlikely to provide the funding required to close the significant budget gap in Worthing and so the proposed route for requesting exceptional funding support which is outlined in the policy statement was also welcome. Members were being recommended to request the Chief Executive formally write to the Ministry for Housing, Communities and Local Government to request this support for Worthing.

Decision:

1.    That the contents of the report including the working 5 year forecasts be noted as at appendix 1

2.    That the Chief Executive writes to MHCLG in order to request exceptional financial support for Worthing in order to get the help needed to balance the budget during this period while the new financial strategy is being implemented

Call In: The call-in deadline for decisions will be 5.00pm on 20 December 2024

To consider a report by the Director for Housing and Communities, copy attached as item 10

Before the Committee was a report by the Director for Housing and Communities, copies of which had been circulated to all Members and a copy of which is attached to the signed copy of these minutes as Item 10.

As part of the Adur Homes Improvement Plan, officers had been developing a maintenance programme, which is a critical part of providing residents with decent homes.

Ten existing Adur Homes blocks had been identified as requiring essential and urgent repairs.

The Councils were asked to approve a contract with a main contractor to carry out multiple and varied repairs to the ten blocks.

Following surveys carried out at Warren Court in Lancing, The ‘RAFA’ blocks and Aston House in Shoreham, essential repairs and remedial work was required across these blocks. For efficiency it was proposed that all the work was instructed under one contract with a Principal Contractor who would manage the subcontract packages of work, the sequencing and programming, together with the necessary resident liaison.

Decision:

1.    That the allocation of £5m from the previously approved Adur Homes Investment Programme budget for a ‘Whole Blocks’ repairs project be approved, covering ten existing Adur Homes blocks in phase 1, to include site investigations and professional fees;

2.    That the multidisciplinary consultants be appointed to provide pre-contract services, site investigations and cost advice;

3.    To commit to the principle of the repair and improvement of Adur Homes properties using a phased approach and Whole Block contracts, with one Principal Contractor where necessary.

4.    That it be noted that the phase 1 blocks have been identified on the basis of existing, historic information and investigations, however the production of new building conditions surveys may identify further urgent works in other properties.

Call In: The call-in deadline for decisions will be 5.00pm on 20 December 2024

To consider a report by the Director for Housing and Communities, copy attached as item 11.

Before the Committee was a report by the Director for Housing and Communities, copies of which had been circulated to all Members and a copy of which is attached to the signed copy of these minutes as Item 11.

As part of the Adur Homes Improvement Plan, officers have been developing a maintenance programme, which is a critical part of providing residents with decent homes.

As part of the programme the paper set out a proposal to use what was referred to as a ‘multi disciplinary consultant’ (MDC) to project manage a minimum of eight contracts over a three year period of time with the added extension options included.

The MDC role which broadly includes pre-contract design, undertaking surveys, and cost planning and further details are detailed in 4.3 below.

Members were told of the role of this consultant and options were set out for Members to consider. It proposed the appointment of one Multi Disciplinary Consultant to manage the contracted packages of work with the appointed contractor(s). This work would be required for the purposes of obtaining key information to inform the overall scope of work and tender documents and subsequent contract management.

Decision:

1.    That the appointment of a multi disciplinary consultant for an initial three year period be approved for the essential contract professional services required for the development, procurement and management of contracts entered into.

2.    That the spend be authorised in respect of the MDC to cover 8 work areas detailed in section 3.3 over a 3 year period. The spend is in accordance with procurement consortium tender price of 4.24% of full contract value and detailed further in section 7.3.

Call In: The call-in deadline for decisions will be 5.00pm on 20 December 2024