Agenda and minutes

Consider report by Executive Director, Finance and Regulatory.  (Copy attached.)

There had been circulated copies of a report by the Executive Director Finance and Regulatory on the steps taken to engage with stakeholders as part of a consultation exercise on the budget.  The report highlighted the budget Communication Strategy used and provided feedback gathered from the Scottish Borders Budget Challenge. This feedback had been considered as part of the 2020-2021 Financial Planning process.  As part of the agreed budget consultation exercise on the Council’s updated Financial Plan, the SB Budget Challenge was made available from 30 September 2019 to 31 January 2020 to members of the public on the Council website.  Members of the public were reminded that the Council had limited resources and that going forward was unable to continue to provide services in the same way.  The public could then use the online simulator tool to advise the Council what the priorities were in each local area so that the Council could use the information to inform which services communities wanted to protect.  As at the 31 January 2020, 953 members of the public completed the Simulator and gave their views on prioritisation of local community based services.  The number of people taking part in the Budget Challenge had increased significantly compared to those participating in previous years.  A summary of the public feedback from the Scottish Borders Budget Challenge was detailed per locality and for the Scottish Borders as a whole in Appendix 1 to the report.  Members were delighted that public participation in the Budget Challenge had increased and thanked Officers.  Members noted that potholes and recycling were high on the priority list.     

DECISION

NOTED:-

(a)       the budget Communication Strategy used;

(b)       the feedback from the Scottish Borders Budget Challenge detailed in Appendix 1 to the report.

Consider report by Executive Director, Finance and Regulatory.  (Copy attached.)

2.1     There had been circulated copies of a report by the Executive Director Finance & Regulatory Services on the estimated revenue and capital resources available for financial year 2020/21 following publication of the local government finance settlement (LGFS) on 6 February 2020.  The report recommended the financial strategy to be followed by the Council the following year and identified the financial constraints and major risks to be addressed.  The report also outlined the process supporting the construction of the draft revenue and capital Financial Plans for 2020/21 as well as draft plans for future years.  The Corporate Management Team had worked with political groups to support Members in setting a corporate revenue and capital budget, meeting identified pressures facing the Council.  These pressures had arisen from a variety of factors and the principle pressures identified were due to the anticipated continuing constraints on external revenue and capital funding from central government, the impact of national pay negotiations, the increasing pressures from demographics, particularly the increasing numbers of very elderly people requiring care services, as well as general inflation.  The budget development process had been conducted to ensure that the financial plans of the Council were aligned with its business and people planning objectives and the level of resources available.  The report highlighted that total revenue resources of £295.757m were available to Elected Members assuming the Council accepted the 2020/21 settlement offer from Scottish Government including the ability to vary Council Tax by up to 4.84% in 2020/21.  The impact of other potential variations in the Council Tax was shown in the tables contained in paragraphs 7.2 and 9.1 of the report.  The benefits, in terms of financial stability and effective change management, derived from adopting a longer term corporate approach to the revenue and capital planning process and were widely accepted.  Financial year 2020/21 represented the third year of the revenue 5 year financial plan for the Council agreed in February 2018.  It was anticipated Members would continue to adopt a longer-term approach to financial planning and consequently the estimated resources available over the following four financial years were also shown.  These estimates would continue to be updated annually as the detail of the financial settlement from Scottish Government became known.  There was a commitment by Scottish Government to provide a three-year settlement from 2020/21; this had not materialised, but it was hoped that from 2021/22 a three year settlement would be provided assisting long term financial planning.

2.2     The Council had approved a revised approach to organisational change under the banner of ‘Fit for 2024’ when the budget was set for 2019/20 in February 2019.  This approach was reshaping the transformation programme ensuring individual projects were more cross-cutting and focused on joined up business process review.  The Fit for 2024 programme had been a strong driver in developing financial plan proposals for the 5-year period of the plan.     In line with previous Audit Scotland recommendations scenario planning had once again been used to model a range of scenarios  ...  view the full minutes text for item 2.

Consider report by Executive Director, Finance and Regulatory.  (Copy attached.)

There had been circulated copies of a report by the Executive Director Finance and Regulatory presenting Scottish Borders Council’s updated Capital Investment Strategy (CIS) supporting the 2020/21 financial planning process.  The report explained that the requirements of the Prudential Code were updated in December 2017 including the recommendation that Councils published a Capital Investment Strategy to support their Capital Plan.  Scottish Borders Council first produced this document for 2019/20 and had updated and developed the second strategy to support the strategic investment priorities of the Council through the Capital Plan.  The Capital Investment Strategy was designed to highlight the capital investment priorities and explained how these priorities would assist with the delivery of the Council’s Strategic Corporate Plan 2018 -2023.  As such, the CIS was structured to reflect the themes of the Corporate Plan.  The document should be read in conjunction with the Council’s 10 year capital investment plan 2020 – 2030 and the Treasury Strategy which provided detail of the Council’s Prudential Indicators and set out how the Capital Investment plans (CIP) of the Council would be financed.  The Capital Investment Strategy had been compiled through input from all relevant Council Services including service input, the Property and Asset team and Finance.  In response to a question about the Learning Estate Strategy, the Chief Executive advised that it should be available within the next 2 months.    

          DECISION

          AGREED to approve the Capital Investment Strategy as part of the suite of 2020/21 budget papers.

Consider report by Executive Director, Finance and Regulatory.  (Copy attached.)

There had been circulated copies of a report by the Executive Director, Finance and Regulatory, seeking approval of the Treasury Management Strategy for 2020/21.  The Treasury Management Strategy was the framework which ensured that the Council operated within prudent, affordable financial limits in compliance with the CIPFA Code.  The Strategy for 2020/21 was appended to the report and reflected the impact of the Administration’s Financial Plans for 2020/21 onwards on the prudential and treasury indicators for the Council.  Councillor Bell, as Chairman of the Audit & Scrutiny Committee, advised that the Strategy had been considered by that Committee on 10 February 2020.  The report included detailed projected external borrowing for the next five financial years and then at five year intervals up to 2049/50, together with the Operational Boundary and Authorised Limit.

DECISION

AGREED to:-

(a)       approve the Treasury Management Strategy 2020/21 as set out in Appendix 1 to the report;

(b)       note that the draft Treasury Management Strategy had been considered by the Audit & Scrutiny Committee on 10 February 2020;

(c)       review its capital expenditure plans going forward to ensure they remained realistic, affordable and sustainable; and

(d)       instruct officers to ensure that the revenue consequences of all capital projects be fully considered as part of the revenue financial planning process and be reflected in annual budgets.

Consider report by Service Director HR & Communications.  (Copy attached.)

There had been circulated copies of a report by the Service Director HR & Communications providing assurance that any potential equality impacts of the proposals brought forward within the Council’s Financial Plan from 2020/21 had been identified and would be managed accordingly.  The report explained that the Council had a legal obligation in terms of the Equality Act 2010, when exercising functions, to have due regard to the need to:

(a)       eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Equality Act;

(b)       advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it;

(c)       foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

Carrying out and considering the findings of an Equality Impact Assessment (EIA) as part of the decision making process was the method of ensuring “due regard” was paid to the effect of the relevant policy or practice on the Council’s obligations under the Public Sector Equality.  Initial Integrated Impact Assessments on the 2020/21 Financial Plan proposals had been undertaken as an integral part of the revenue and capital budget planning processes in order to fully inform decisions proposed by officers and approved by Members.  Some of the proposals had been carried forward from previous years and so had already been subject to an impact assessment.  Where that was the case they had not been re-assessed at this stage, although may be as detailed proposals developed.  While some of the assessed proposals indicated no impact, it was recommended that any potential impact continue to be monitored, given the nature of the proposals.  These 117 proposals may potentially impact in a positive or negative way on one or more of the Protected Characteristics or Socio-Economic Factors and any potential negative impact would require ongoing management through their implementation stage, in terms of mitigating and alleviating these impacts.  Any positive impacts identified at this stage should be maximised during the planning and implementation stage of the proposals. 

DECISION

AGREED:-

(a)     to note the summary outcomes of the 68 Initial Equality Impact assessments undertaken in respect of the 2019/20 Financial Plan proposals, as detailed in Appendix I to the report; and

(b)    that officers undertake further and ongoing Impact Assessment work, as necessary, in respect of these proposals with specific reference to the equality or socio-economic groups on whom there may be possible impact:

(i)      that where there was an identified relevance to the Council’s statutory duty and there was a possible positive impact on one or more equality characteristic or socio-economic group, actions to maximise this impact would be identified and implemented as part of the project planning and delivery of each proposal or project; and

(ii)     that where there was an identified relevance to the Council’s statutory duty and where there was a possible negative impact on one or more equality characteristic or socio-economic group, actions to mitigate and alleviate this impact would be identified  ...  view the full minutes text for item 5.

There had been detailed on the agenda Motions by both the Administration and the Opposition Groups and supporting papers had been circulated relating to each. 

The Conservative/Independent Alliance Administration recommend that Scottish Borders Council

(i)      approves a council tax increase of 4.84% for financial year 2020/21 commencing 1 April 2020, with a band D equivalent of £1,253.91 as set out in table 1 below;

Table 1.

(ii)      approves the Administration’s 5 year revenue plan 2020/21 – 2025/26  and 10 year capital investment plan 2020/21- 2030/31 set out in documents 9(a) and 9(c); and in doing so,

(iii)     notes the following:

The publication of the Local Government Settlement on the 6^th February 2020 confirmed a reduction in the core revenue support grant from central Government to Scottish Borders Council of £1.8m (0.9%) and a reduction in Capital Grant of £4.2m (25.5%)   in 2020/21, compared to the 2019/20 Settlement issued by Scottish Government in December 2018.

These reductions have been compounded by lack of clarity with regard to the new funding model for School replacement which has changed significantly from the previous model on which we based our plans a year ago.  These issues have left the Council Administration with no credible alternative other than to increase the Council Tax by 4.84%, as allowed by the Local Government Settlement, in 2020/21.  This increase replaces resources lost through Scottish Government cuts elsewhere in the Settlement.  The council tax increase will provide the ability to invest in new schools and care facilities that are desperately needed in our communities at a time when capital grant from the Scottish Government has been cut. 

The income raised by the Council tax increase will provide up-front capital finance to transform Peebles High School, and deliver Community Campuses to replace Galashiels Academy and Hawick High School much earlier than would otherwise have been possible and in line with previously agreed timescales.

The income raised will also help the Council to invest in 2 new 60 bed Care Homes in Hawick and the Central Borders to better meet the needs of a growing elderly population in the Borders. 

While these facilities are in the planning and development phase, the increased Council Tax will fund investment in improving the condition of the road network with a further £2.2m invested on top of the additional £2.3m announced in last year’s budget.  This funding is to fund extra road resurfacing and pothole repairs in our communities in response to the priority feedback provided by 953 responses to the consultation on the 2020/21 budget.  

Taken together the increases in the Council Tax approved by this Administration will deliver £4.3m of extra investment in improving the condition of the road network.  With this additional resource, the total investment in the road network proposed by this budget will total £40.4m in revenue the next five years and £84.6m in capital over the next ten years.

In addition, we  ...  view the full agenda text for item 6a

Councillor Haslam, seconded by Councillor Aitchison, moved the Motion as detailed on the agenda, thus:

“The Conservative/Independent Alliance Administration recommend that Scottish Borders Council:

(i)      approves a council tax increase of 4.84% for financial year 2020/21 commencing 1 April 2020, with a band D equivalent of £1,253.91, as set out in table 1 below: 

          Table 1

(ii)      approves the Administration’s 5 year revenue plan 2020/21 – 2025/26 and 10 year capital investment plan 2020/21 – 2030/31 set out in documents 9(a) and 9(b) on the agenda; and in doing so,

(iii)     notes the following: 

          The publication of the Local Government Settlement on the 6^th February 2020 confirmed a reduction in the core revenue support grant from central Government to Scottish Borders Council of £1.8m (0.9%) and a reduction in Capital Grant of £4.2m (25.5%) in 2020/21, compared to the 2019/20 Settlement issued by Scottish Government in December 2018. 

          These reductions have been compounded by lack of clarity with regard to the new funding model for School replacement which has changed significantly from the previous model on which we based our plans a year ago.  These issues have left the Council Administration with no credible alternative other than to increase the Council Tax by 4.84%, as allowed by the Local Government Settlement, in 2020/21.  This increase replaces resources lost through Scottish Government cuts elsewhere in the Settlement.  The council tax increase will provide the ability to invest in new schools and care facilities that are desperately needed in our communities at a time when capital grant from the Scottish Government has been cut. 

          The income raised by the Council tax increase will provide up-front capital finance to transform Peebles High School, and deliver Community Campuses to replace Galashiels Academy and Hawick High School much earlier than would otherwise have been possible and in line with previously agreed timescales.

The income raised will also help the Council to invest in 2 new 60 bed Care Homes in Hawick and the Central Borders to better meet the needs of a growing elderly population in the Borders. 

While these facilities are in the planning and development phase, the increased Council Tax will fund investment in improving the condition of the road network with a further £2.2m invested on top of the additional £2.3m announced in last year’s budget.  This funding is to fund extra road resurfacing and pothole repairs in our communities in response to the priority feedback provided by 953 responses to the consultation on the 2020/21 budget.  

Taken together the increases in the Council Tax approved by this Administration will deliver £4.3m of extra investment in improving the condition of the road network.  With this additional resource, the total investment in the road network proposed by this budget will total  ...  view the full minutes text for item 6a

Under the terms of Standing Order 26 Council agrees to revisit - as part of the Opposition Budget motion - its decision at the meeting of 30th January 2020 in respect of agenda Item 12 (CCTV Provision in the Scottish Borders).

This Motion is seconded by Councillor Robson and signed by Councillors A. Anderson, H. Anderson, J. Brown, K. Chapman, K. Drum, H. Laing, C. Ramage and E. Thornton-Nicol

The Opposition Parties on Scottish Borders Council – the Scottish National Party and the Liberal Democrat Party recommend that Council

(i)      approves the Opposition Parties’ alternative 5 year revenue plan 2020/21 – 2025/26  and alternative 10 year capital investment plan 2020/21- 2030/31 set out in documents 9(b) and 9(c); and in doing so,

(ii)      approves a council tax increase of 4.84% for financial year 2020/21 commencing 1 April 2020, with a band D equivalent of £1,253.91 as set out in the Table 1 below;

Table 1.

(iii)     notes the following principals and proposals:

1.         The Opposition Parties have prepared an alternative 5 year revenue plan of £1.51bn for the Scottish Borders and a 10 year capital plan of £464m;

·                This budget builds on opportunities and improves the lives of Borderers whatever their age by Investing in our Future. It focuses on delivering quality services, opportunities for all in a thriving economy, empowering communities and enabling people to live independently and achieve their goals.

·                This budget rebuilds educational capacity, protects teacher ratios, library services, school mental health services and frontline Council services; whilst also recognising that we must modernise service delivery and make efficiencies.

·                The Opposition budget specifically proposes :-

Ø   £24.7m investment over ten years into new or refurbished Primary schools

Ø   To expand the program of High School provision through renewing or replacing secondary schools in Galashiels, Peebles and Hawick by 2027 at a cost of £128.2m

Ø   £18.5 investment in two new nursing homes

Ø   Investing a further £5.9m capital and £4.5m revenue in 2020/21 into Early Learning & Childcare

Ø   To continue investment to a total of £55.2m in flood studies and Flood & Coastal protection over the capital period

Ø   To reinstate Librarians in all High Schools

Ø   To commit funding for a Climate Change Champion and to invest revenue in environmental and bio-diversity projects

Ø   To revisit the Council decision of January this year and renew public sector CCTV in priority towns

2.            The Opposition Parties propose to finance the associated Revenue and Capital costs through rescheduling Community Fund investment, though discontinuing the second Council-funded CAT team when its contract comes up for renewal and through changes to the Council Tax across all Bands.

(iv)    agrees that Scottish Borders Council mainstreams funding – initially £1m - from September 2020 into Borders Decides.  This will devolve decisions about  ...  view the full agenda text for item 6b

With reference to paragraph 9 of the Minute of 30 January 2020, and in terms of Standing Order 26, Councillor Bell, seconded by Councillor Robson, moved the motion as detailed on the agenda in the following terms:-

“Under the terms of Standing Order 26 Council agrees to revisit - as part of the Opposition Budget motion - its decision at the meeting of 30th January 2020 in respect of agenda Item 12 (CCTV Provision in the Scottish Borders).

This Motion is seconded by Councillor Robson and signed by Councillors A. Anderson, H. Anderson, J. Brown, K. Chapman, K. Drum, H. Laing, C. Ramage and E. Thornton-Nicol.

The Opposition Parties on Scottish Borders Council – the Scottish National Party and the Liberal Democratic Party recommend that Council:

(i)      approves the Opposition Parties’ alternative 5 year revenue plan 2020/21 - 2025/26 and alternative 10 year capital investment plan 2020/21 – 2030/31 set out in documents 9(b) and 9(c) on the agenda; and in doing so

(ii)      approves a council tax increase of 4.84% for financial year 2020/21 commencing 1 April 2020, with a band D equivalent of £1,253.91, as set out in the Table 1 below:

          Table 1

(iii)     notes the following principles and proposals:

1.  The Opposition Parties have prepared an alternative 5 year revenue plan of £1.51bn for the Scottish Borders and a 10 year capital plan of £464m;

·      This budget builds on opportunities and improves the lives of Borderers whatever their age by Investing in our Future. It focuses on delivering quality services, opportunities for all in a thriving economy, empowering communities and enabling people to live independently and achieve their goals.

·      This budget rebuilds educational capacity, protects teacher ratios, library services, school mental health services and frontline Council services; whilst also recognising that we must modernise service delivery and make efficiencies.

·       The Opposition budget specifically proposes :-

Ø£24.7m investment over ten years into new or refurbished Primary schools

ØTo expand the program of High School provision through renewing or replacing secondary schools in Galashiels, Peebles and Hawick by 2027 at a cost of £128.2m

Ø£18.5 investment in two new nursing homes

ØInvesting a further £5.9m capital and £4.5m revenue in 2020/21 into Early Learning & Childcare

ØTo continue investment to a total of £55.2m in flood studies and Flood & Coastal protection over the capital period

ØTo reinstate Librarians in all High Schools

ØTo commit funding for a Climate Change Champion and to invest revenue in environmental and bio-diversity projects

ØTo revisit the Council decision of January this year and renew public sector CCTV in priority towns

2.    The Opposition Parties propose to finance the associated Revenue and Capital costs through rescheduling Community Fund investment, through discontinuing the second Council-funded CAT  ...  view the full minutes text for item 6b

6.3     Councillors spoke in support of their respective Motions.   Councillor Haslam, seconded by Councillor Turnbull, moved that the vote be taken by “roll call”.  Councillor Bell, seconded by Councillor Moffat, moved as an amendment against a “roll call” vote.

          VOTE

          On a show of hands -

          For the roll call vote - 28

          Against the roll call vote – 5

          DECISION
DECIDED that the vote on the 2 Motions would be taken by roll call.

          ROLL CALL VOTE

            There being 21 votes for Councillor Haslam’s Motion and 11 votes for Councillor Bell’s Motion and 1 abstention, Councillor Haslam’s Motion was accordingly carried.

            DECISION

          DECIDED to approve the Motion as detailed in paragraph 6.1 above including the Administration’s Budget as contained in Appendix I to this Minute in the Minute Book.

Fees and charges 2020/21 relating to (a) and (b) above.  (Copy attached.)

There had been circulated copies of a schedule of proposed 2020/21 fees and charges.  The fees and charges were based on the approved 2019/20 charges plus an inflationary increase of at least 3% unless there was a business reason not to do so, such as charges being set nationally or if the increase would have a negative effect on usage. 

DECISION

AGREED to approve the fees and charges schedule with effect from 1 April 2020, as detailed in Appendix II to this Minute in the Minute Book.

Consider report by Executive Director, Finance and Regulatory.  (Copy attached.)

There had been circulated copies of a report by the Executive Director, Finance and Regulatory, seeking approval for the proposed individual projects and programmes within the various block allocations in the 2020/21 Capital Financial Plan.  Appendices A – V attached to the report contained proposals for various projects to be allocated resources from the various block allocations within the 2020/21 Capital Financial Plan as shown in the table below.

.

It was noted that not all projects had been fully identified at this point.  As and when this information became available further reports would be brought to the Executive Committee for consideration.

DECISION

AGREED to approve the block allocations as shown above and the breakdowns as detailed in Appendices A-V to the report.

MEMBER

Councillor Brown left the meeting.

ADJOURNMENT

The Convener adjourned the meeting at 1.05 pm and reconvened at 1.15 pm.

Before proceeding with the private business, the following motion should be approved:-

“That under Section 50A(4) of the Local Government (Scotland) Act 1973 the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in the relevant paragraphs of Part 1 of Schedule 7A to the aforementioned Act.”

DECISION

AGREED under Section 50A(4) of the Local Government (Scotland) Act 1973 to exclude the public from the meeting during consideration of the business detailed in  Appendix III to this Minute on the grounds that it involved the likely disclosure of exempt information as defined in Paragraphs 8 and 9 of Part I of Schedule 7A to the Act.

      SUMMARY OF PRIVATE BUSINESS

Consider report by Service Director Assets and Infrastructure.  (Copy attached.)

There had been circulated copies of a report by the Service Director Assets and Infrastructure requesting authority to proceed with the award of the Hawick Flood Protection Scheme’s Main Works Construction Contract, and thereby the commencement of the final delivery of the Scheme.  The recommendations contained in the report were approved. 

Consider report by Service Director Assets & Infrastructure.  (Copy attached.)

There had been circulated copies of a report by the Service Director Assets and Infrastructure  which provided an update on the Stage 2 National Lottery Heritage Fund application, the procurement of the Main Works Contractor and a recommended way forward for funding the project.  The recommendations contained in the report were approved.