Agenda and minutes

Minute of meeting held on 16 May 2023 to be approved and signed by the Chairman. (Copy attached.)

There had been circulated copies of the Minute of the meeting held on 16 May 2023.

DECISION

APPROVED for signature by the Chairman.

MEMBER

Councillors Carol Hamilton and Pirone joined the meeting during the discussion of the item below. 

Consider report by Acting Chief Financial Officer. (Copy attached.)

There had been circulated copies of a report by the Acting Chief Financial Officer which provided a statement which compared the final capital outturn for 2022/23 with the final budget for the year and identified the main reasons for any significant variations.  The final capital outturn statement for 2022/23 was included at Appendix 1 to the report and included the reasons identified by the Project Managers and Budget Holders for the variances to the final approved budget.  That identified an outturn expenditure of £63.537m which was £11.583m below the final revised budget of £75.120m including timing movement in the final quarter of £10.445m.  A number of macro-economic factors affected the Capital Plan during 2022/23.  Unprecedented levels of inflation along with disruption in the construction materials supply chain continued to impact on the wider economy and consequently the Council.  A surge in demand coupled with constraints on supply had led to price increases, shortages and longer lead times.  Financial implications from those market conditions were reported within the final outturn report for 2022/23.  The outturn position provided the basis to inform the Capital Plan requirements in 2023/24, with any longer term impacts reflected in the financial planning process for future years.  In anticipation of inflationary pressures an inflation contingency of £1.253m was established at the 2021/22 year end to support potential budget pressures.  Through the first three quarters of 2022/23 that contingency was increased to £3.501m, with a timing movement of that approved into 2023/24 to support the 2023/24-2032/33 Capital Investment Plan.  The contingency was being increased by a further £1.022m in this final quarterly monitoring of 2022/23 with that being used to offset Planned Programming Adjustments in 2023/24.  The Acting Chief Financial Officer, Mrs Suzy Douglas, presented the report and responded to Members questions. In response to a question regarding whose responsibility it was for ensuring Integrated Impact Assessments (IIA) were carried out Mrs Douglas explained that there was a positive relationship between the Finance and Project Management Teams and confirmed that the Director – Infrastructure and Environment was responsible for project management IIAs.  Regarding the £3.245m set aside for inflation contingency within the budget, Mrs Douglas confirmed that the amount set aside was subject to review and there were no concerns regarding its current level.  Members welcomed the report.

DECISION

(a)        AGREED:-

(i)         the final outturn statement in Appendix 1 to the report;

(ii)         the block allocations detailed in Appendix 3 of the report.

(b)     NOTED:-

(i)         the adjustments to funding in Appendix 1 to the report;

(ii)        the final block allocations in Appendix 2 to the report

(iii)      the whole project costs detailed in Appendix 4 to the report.

Consider report by Acting Chief Financial Officer. (Copy attached.)

There had been circulated copies of a report by the Acting Chief Financial Officer which provided a statement comparing final revenue outturn expenditure and income for 2022/23 with the final approved budget for the year along with explanations for significant variances.  A net, unaudited outturn underspend of £1.532m was achieved in the 2022/23 revenue budget. The £1.532m net underspend (less than 0.5% of final approved budget) was delivered following a number of earmarked balances being carried forward from 2022/23 into 2023/24.  In total, those amounted to £31.142m and related to a number of initiatives across the Council and specifically included £1.187m of carry forward into the Council’s Recovery Fund and £3.589m of carry forward by schools under the Devolved School Management scheme (DSM).  Council services had delivered an underspend position whilst delivering significant financial plan savings totalling £12.027m.  A high level summary of the outturn position in each Service was detailed in the report.  The Council’s finances and operating model had continued to be affected by the COVID-19 recovery period during 2022/23.  Unprecedented market conditions and inflationary pressures, pressures from pay award and staff recruitment and retention challenges had also continued to impact.  Those financial challenges had resulted in a total draw down of £10.591m from the Recovery Fund during the year.  During 2022/23 detailed revenue monitoring reports were reviewed by the Council Management Team (CMT) allowing proactive corporate management action to be taken during the year where required.  In line with Financial Regulations quarterly monitoring reports were approved by the Executive Committee, authorising the necessary adjustments to the budget throughout the year.  Most recent communications from Scottish Government indicated that pay negotiations required Councils to fund 3% pay increases for all staff groups for 2023/24 on a permanent basis.  The Council budgeted for a 2% pay increase which had left a 1% gap.  A 1% increase in pay for all staff groups would require around £1.8m additional funding.  On that basis the £1.532m 2022/23 revenue underspend would be ring-fenced within the Council’s General Fund balance as a contribution towards pay pressures in 2023/24.  As previously reported, there were significantly more savings delivered permanently in 2022/23 when compared to 2021/22.  The level of savings required by the financial plan totalled £12.027m in 2022/23.  An analysis of delivery of savings was provided in Appendix 3 to the report.  The outturn position showed that £8.934m (74%) savings were delivered permanently in line with approved plans with the remaining £3.093m (26%) delivered on a temporary basis through alternative savings. Members welcomed the report, highlighted that the staff had done an excellent job at making savings on a yearly basis and stressed that it was prudent to ring fence financial resources to help meet the impact of pay negotiations.  The importance of building future capacity within the region to avoid sending people, in particular children, on out of area placements as part of social work and practice services was raised.   Regarding the learning disability underspend of £25k, Members highlighted that additional budget had been  ...  view the full minutes text for item 3.

Consider report by Acting Chief Financial Officer. (Copy attached.)

There had been circulated copies of a report by the Acting Chief Financial Officer which provided an analysis of the Council’s balances as at 31 March 2023.  The Council’s General Fund useable reserve (non-earmarked) balance was £8.448m at the end of the financial year.  The 2022/23 balances were before a series of technical accounting adjustments, the effect of which were expected to be broadly neutral.  Adjustments required as a result of the Statutory Audit process would be reported at the conclusion of the Audit.  The total of all useable balances, excluding developer contributions, at 31 March 2023 was £61.482m compared to £64.481m at 31 March 2022.  Members thanked staff for their hard work preparing finance reports.  In response to a question regarding the anticipated value of developer contributions, Mrs Douglas explained that Appendix 3 to the report set out the contributions and highlighted that the sub-total stood at £8.543m at 31 March 2023. 

DECISION

NOTED:-

(a)     the revenue balances as at 31 March 2023 contained in Appendices 1 and 2 to the report, including movement in reserves since the last reporting period; and

(b)     the balance in the Capital Fund contained in Appendix 3 to the report. 

Consider report by Acting Chief Financial Officer. (Copy attached.)

There had been circulated copies of a report by the Acting Chief Financial Officer which, as required by the Financial Regulations, detailed the aggregate amounts of debt written off during 2022/23 under delegated authority.  The report covered the areas of Council Tax, Non-Domestic rates, Sundry Debtors, Housing Benefit Overpayments and aged debt from the balance sheet.  The total value of write-offs increased from £0.39m in 2021/22 to £0.66m in 2022/23.  There were ongoing risks associated with the management of the Council’s debts, and those could lead to an increase in the level of debts that could be required to be written off as irrevocable in future years.  Those had been identified in the report.  The Council maintained an appropriate bad debt provision to help manage those risks.  Mrs Douglas presented the report and highlighted that the Council only wrote debt off when specific circumstances arose.  Members expressed frustration that the Council had to write off bad debts, provided assurance that debts were pursued where appropriate, and acknowledged that write offs could be compassionate in nature, in particular where they related to debtors who had deceased or faced financial hardship.  Regarding issues related to accessing personal bankruptcy cases, the Director – Resilient Communities undertook to provide a briefing note for Members.  In response to a question regarding whether there was alarm at the high number of write offs in cases of insolvency, the Director explained that the analysis provided in the report represented the work which had been undertaken by staff, and did not necessarily present an accurate picture of what had happened with businesses and people across the region.  A wide range of support was present for businesses and individuals across the Scottish Borders, including the assistance offered by the South of Scotland Enterprise’s through its Business Gateway, and Citizens Advice Bureaus respectively.   Regarding whether it would be economical to insure the debts of the Council, Mrs Douglas explained that the Council’s bad debt provision set aside financial resources to cover what was written off and to estimate what was required in future years.

DECISION

NOTED the debtor balances written off during 2022/23

Consider report by Director – Infrastructure and Environment. (Copy attached.)

With reference to paragraph 10 of the Minute of the Meeting held on 18 April 2023 there had been circulated copies of a report which provided a further update on the repair works to Peebles Swimming Pool.  Members had requested that a report exploring alternative methods of funding the additional works be brought back to the Committee.  Officers had examined the options and they were set out in the report.  Reinstatement works had begun in January 2023 focused on repairs to the damaged roof, plant room, and the internal fabric of the main pool hall.  During works, a number of other issues were identified which the Council were addressing alongside the reinstatement works.  Works were due to be completed to enable reopening of the swimming pool for operation by Live Borders in July 2023. The Director – Infrastructure and Environment, Mr John Curry, presented the report and responded to Members questions.  Members highlighted that a thorough lessons learned report needed to be produced.  Mr Curry indicated that the hoped the report would be ready for the autumn, and that the report would take account of other due diligence of the Council and LiveBorders estate which was going to be undertaken.  In response to a question regarding whether it would be possible to extend the installation of solar panels to other similar facilities, Mr Curry explained that a number of energy efficiency improvement works were underway at four different locations, of which the Peebles swimming pool was one.  Planning for works to improve energy consumption and renewable energy projects was being undertaken for future years.  Mr Curry acknowledged that the report had stated there would be no impact on energy efficiency due to the roof works in error and confirmed that there would be an impact due to the solar panel installation. The primary repair to the roof was focused on reinstatement, and the insulation levels would not necessarily be improved.  Mr Curry undertook to investigate the expected kilowatt-hour production from the solar panels.  In response to a question regarding references in the report to 2025/26, Mr Curry explained that the programme of works would finish in 2023, but financial resources from future blocks would be used to meet the cost of the works. 

DECISION

AGREED to:-

(a)        approve the funding proposal to re-profile the Building Upgrade Block through acceleration from 2025/26 as detailed in the report; and

(b)        note the progress made on reinstatement and refurbishment of Peebles Swimming Pool and completion and reopening in July 2023.

MEMBER

Councillor Carol Hamilton left the meeting during the discussion below.

Consider report by Director – Infrastructure and Environment (Copy attached.)

There had been circulated copies of a report by the Director – Infrastructure and Environment which sought endorsement of the Annual progress Report, which set out achievements and progress in the delivery of the Local Housing Strategy (LHS) 2017-22(23) and approval to submit that to the Scottish Government More Homes Division. The Housing (Scotland) Act 2001 placed a statutory requirement on local authorities to develop a Local Housing Strategy, supported by an assessment of housing need and demand. That strategy set out the strategic direction for housing investment and service delivery in the Scottish Borders for 2017-22(23).  The Council and its partners had made good progress since the LHS was formally approved in September 2017.  Year six had seen some challenges as a result of the legacy of the Covid-19 pandemic, the war in Ukraine and the Cost of Living Crisis, however, activity during 2022/23 included the delivery of 146 affordable homes, the submission of an ambitious Strategic Housing Investment Plan, delivery of 220 energy efficiency measures underpinned by £1.8m in investment, delivering the Warm and Well Borders project, initiating development of the Local Heat and Energy Efficiency Strategy, progress related to empty homes, progress in delivery of the Rapid Re-Housing Transition Plan and 68 major adaptations completed in the private sector.  The Principal Housing Officer, Ms Donna Bogdanovic, presented the report and explained that a number of key highlights had been drawn out of the full report as part of the summary.  Members welcomed the progress which had been made in delivering affordable homes throughout the period, and stressed that even more needed to be done over the coming years.  In response to a question regarding a pilot energy efficiency project which had previously been run in Peebles, Ms Bogdanovic explained that whilst the pilot had been successful and well received, no appropriate funding was available to offer future schemes or a repeat of the pilot.  The Local Heat and Energy Efficiency Strategy (LHEES) was expected to drive future work in the area of energy efficiency.  Ms Bogdanovic highlighted that there was a high degree of work related to energy efficiency and climate change being undertaken across the Council by dedicated officers.  The importance of reducing stigma associated with affordable housing was stressed.  In response to a question regarding what steps were taken to ensure that homes were built that did not require subsequently expensive alterations, and how the Registered Social Landlords ensured they had adequate housing stock, Ms Bogdanovic explained that her team worked closely with the RSLs to ensure that appropriate homes were built. Challenges remained in convincing the private sector to build wheelchair accessible standard homes.  In response to a question regarding the proportion of homes rented in the private sector, Ms Bogdanovic explained that approximately 13% were private rented, 20% social rented and the remainder owner occupied.  A Scottish Government consultation was expected later in the year on the requirement to maintain private rented homes to the same standard as the social rented sector.  Where  ...  view the full minutes text for item 7.

Consider report by Director – Infrastructure and Environment. (Copy attached.)

With reference to paragraph 2 of the Minute of the Meeting held on 4 October 2022 there had been circulated copies of a report by the Director – Infrastructure and Environment which advised of the affordable housing annual completions and progress made in the delivery of the Strategic Housing Investment Plan projects for the period 2022/23 and report on progress related to empty homes. The Strategic Housing Investment Plan (SHIP) was the sole document for targeting affordable housing investment in Scottish Borders.  It was prepared and submitted to Scottish Government on an annual basis, and provided a rolling 5 year planning horizon of identified and prioritised affordable housing development intentions.  Scottish Borders Council’s SHIP 2023- 2028 received positive feedback from Scottish Government Officials.  The report advised Members that for the financial period 2022-2023, 146 affordable homes were delivered. That exceeded the Council’s Local Housing Strategy annual target of 128 new affordable homes.  Of the 146 homes delivered, Registered Social Landlords delivered 120 additional homes through new building and conversion and an additional 13 via purchases of existing homes. Five homes were delivered through the Rural Housing Grant and 8 individual house purchases were assisted by Scottish Government’s Open Market Shared Ownership scheme. That represented a 6 year average annual delivery of 174 affordable homes; 131 of which were ‘new’ supply.  The report also provided some contextual commentary on empty homes activity and progress in 2022/23, including 36 homes brought back in to use.  Members welcomed the report and stressed that excellent work had been delivered in extremely challenging times.  Members highlighted the positive impact that the work of the Empty Homes Officer was having, and that with further investment and work even more homes could be brought back into habitation.  In response to a question regarding the response to the letters which had been sent to the owners of empty homes, Ms Bogdanovic undertook to investigate with the Empty Homes Officer and to respond offline.  Regarding the use of empty homes to help house Ukrainian refugees, Ms Bogdanovic explained that she was working closely with the Director of Social Work and Practice to assist with settlement, but that due to the level of disrepair inherent to empty homes, it was not financially viable to use them in the short term. 

DECISION

AGREED to:-

(a)        endorse the progress made in the delivery of affordable housing in 2022/23; and

(b)        note the progress made in addressing Empty Homes.

DECLARATION OF INTEREST

Councillors L. Douglas, E. Thornton-Nicol and T. Weatherston declared an interest in the following item of business in terms of Section 5 of the Councillors Code of Conduct and left the Chamber during the discussion.

MEMBER

Councillor Mountford left the meeting prior to the item below.

Consider report by Director – Resilient Communities (Copy attached.)

There had been circulated copies of a report by the Director – Resilient Communities which sought approval for a review of the Local Festival Grant Scheme to consider future provision of the Scheme from 2024/25 onwards.  29 festivals across the Borders were provided with an annual grant to support insurance costs and public protection measures.  To ensure the continuity of grants whilst the review was undertaken it was proposed that grants were issued as normal for 2023/24.   The review would involve stakeholders of the Scheme to ensure the options presented were reflective of the needs of local communities.  Members welcomed the report, highlighted that a review was overdue and that it was important that consideration was given to events which did not currently receive support.  In response to a question regarding Other Spend in Appendix 2 to the report, the Director explained that the costs were wide and varied and agreed to provide a breakdown via email.  Analysis would also be undertaken prior to the first meeting of the Working Group.  It was hoped that the review would ensure that vital support could continue to be provided to support local festivals, whilst also ensuring appropriate attention was paid to transparency and proper governance. 

DECISION

AGREED to:-

(a)        approve the review of the Local Festival Grant Scheme which would be carried out in advance of 2024/25 budget planning;

(b)       approve the establishment of a short-life Member/Officer Working Group to undertake the review and report back to the Executive Committee. The Working Group would include an Elected Member from each of the five localities; and

(c)        delegate authority to the Director - Resilient Communities to appoint the members of the Group in consultation with the relevant Executive portfolio holder.

MEMBER

Councillors L. Douglas, E. Thornton-Nicol and T. Weatherston re-joined the meeting following the item above.

Consider report by Director – Resilient Communities. (Copy attached.)

There had been circulated copies of a report by the Director – Resilient Communities which proposed to mitigate against the effect of the increase seen in community council insurance premiums, payable by community councils, between 2021/22 and 2022/23 and commence a review of financial support to community councils.  As of May 2023 there were community councils operational in 66 of the 69 community council areas across the Borders. The last review of funding and support in kind was undertaken in 2009.  Since then the funding and in kind support had been enough to cover the cost of the core functions of community councils.  However, the sharp rise in inflation had seen costs rise to a level that community councils were struggling to meet.  The current budget commitment to support community councils was £80,696.94. This was held within the Resilient Communities and Infrastructure and Environment departments. The Director presented the report and responded to questions.  In response to a question regarding delayed payment of grants, the Director – Resilient Communities, Ms Jenni Craig, undertook to investigate with the relevant team whether any perceived delays had been due to SBC processing times.  An analysis of Community Council Grants would form part of the review.  Ms Craig confirmed that discussions regarding the provision of suitable premises for meetings, taking into account online or blended capacity, to community councils would also be part of the review.  The Director confirmed that the Scottish Borders Community Councils’ network was subject to the same conditions related to annual accounts and Minute keeping as individual community councils.  In response to a question regarding inconsistent changes to insurance costs, Ms Craig explained that all insurance was provided under the Council’s insurance through Zurich.  The fact that some councils insurance costs had increased whilst others decreased was due to the type of activities and events organised by the respective council.  Where larger events were held, a larger level of insurance cost could be expected.  It was confirmed that employers’ liability insurance was in place at the request of 5 Community Councils because they had hired people to provide expertise or undertake other work.  Ms Craig confirmed that where volunteers carried out work, such as planting flowers, on behalf of a community council they would be covered by the appropriate insurance. Members unanimously agreed to the formation of a Member/Officer Working Group to steer the review.  It was emphasised that it was important that the review considered the empowerment and role of community councils, and the role of Elected Members in the context of community councils.  

DECISION

AGREED:-

(a)        that a review of financial support to community councils was undertaken and agreed changes fed in to the budget setting process for 2024/25;

(b)       that the difference in cost of the additional annual insurance premiums, payable by community councils, between 2021/22 and 2022/23 was covered by SBC on a one off basis;

(c)        that support provided to the Community Council Network was also considered as part of the review;

(d)        to approve  ...  view the full minutes text for item 10.

Consider report by Director – People, Performance and Change. (Copy attached.)

With reference to paragraph 5 of the Minute of the Meeting held on 14 March 2023 there had been circulated copies of a report by the Director – People, Performance and Change which presented a summary of Scottish Borders Council’s Quarter 4 and Annual 2023/23 performance information.  The information contained in the report would be made available on the SBC website.  The Director – People, Performance and Change, Ms Clare Hepburn, presented the report and highlighted that further work had gone into developing the infographics presented alongside the report.  Members thanked Council staff for their work and highlighted that the graphics were easier to read and understand.  In response to a question regarding super-fast broadband, Ms Hepburn undertook to investigate whether that referred to broadband to the property or the cabinet.  Regarding reference in the infographics to the 2012 Respectful Relationships Policy being updated and the Respectful Relationship and Anti-Bullying Policy 2023 being in final draft, Ms Hepburn explained that due to production deadlines it had not been possible to amend the infographics prior to publication.  The covering report had explained that the Policy had been completed and agreed.  In response to a question regarding the school attendance rate being below the rate pre-Covid, and its impact on attainment, the Director of Education and Lifelong Learning acknowledged the correlation between attendance and attainment and explained that attendance was above target at 93%.  Schools were attempting to maximise attendance, and had accessed pupil equity funding to employ attendance officers and improve levels of attendance.   In response to a question regarding whether it would be possible to explain in the Community Action Team report that some major incidents could result in figures being lower than previous reports, Ms Hepburn explained that reporting had previously been done for events such as the funeral of the Queen and undertook to investigate whether a more effective way of capturing key data for the report could be established.

DECISION

AGREED to:

(a)        note the Quarter 4 2022/23 Council Plan Key Milestones and Performance Indicators Report in Appendix 1 to the report;

(b)       note the Quarter 4 2022/23 Community Action Team Performance Report in Appendix 2 to the report; and

(c)        note the Annual 2022/23 Performance Report in Appendix 3 to the report.

Consider appointment of Elected Members to Council Headquarters Reprovisioning Working Group.

Councillor Jardine, seconded by Councillor Scott Hamilton, proposed that Councillors David Parker, Watson McAteer, Drummond Begg, Elaine Thornton-Nicol, Euan Jardine, Simon Mountford, Mark Rowley and Leagh Douglas be appointed to the Council Headquarters Re-Provisioning Working Group. The proposal was unanimously approved.

DECISION

AGREED to appoint Councillors David Parker, Watson McAteer, Drummond Begg, Elaine Thornton-Nicol, Euan Jardine, Simon Mountford, Mark Rowley and Leagh Douglas to the Council Headquarters Re-Provisioning Working Group.

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.”

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 1 to this Minute on the grounds that it involved the likely disclosure of exempt information as defined in the relevant paragraphs of Part I of Schedule 7A to the Act.

SUMMARY OF PRIVATE BUSINESS

Private Section of the Minute of Meeting held on 16 May 2023 to be approved and signed by the Chairman.  (Copy attached.)

The Private Section of the Minute of the meeting held on 16 May 2023 was approved for signature by the Chairman.