Agenda and minutes

To receive any apologies for absence.

There were no apologies for absence.

To note the protocol for remote meetings.

The protocol for remote meetings was noted.

To receive any questions relating to items on the Agenda from members of the public and replies thereto.

The Chairman read a statement on behalf of Mr Quinn

Concerning Agenda Items: 18 (Pay Policy) and 20 (Key Decisions)

Within the Pay Policy papers, there is reference to a retention payment being made to the Deputy Chief Executive - of £5,000.

The Pay Supplement Policy states that “Retention payments will only be authorised on the basis of the provision of robust evidence amounting to a material factor” and “A clear business case detailing the significant impact on service delivery will be required for submission to the Pay and Grading Group, following authorisation by Director or the Chief Executive”.

My questions on this item are:

a)     How many retention payments were made to other staff over this period?

b)     Can the Business Case, used to substantiate the award of this payment, be made available to the public?

Turning to Key Decisions: At the Cabinet meeting on 29 October 2020, expenditure was agreed to: “secure legal advice on exploring the advantages of new governance arrangements to include a holding company and Teckal-compliant subsidiary, in order to deliver the most benefits for Mid Devon”.

At the Cabinet meeting on 3 December 2020, I asked: “When the report on the ‘Teckal’ Company was expected to be brought before Cabinet?” and “Will this report be ‘Open’ – to allow for public scrutiny?”

The Cabinet Member for Housing and Property Services replied: “The report was likely to be scheduled to come to Cabinet in January” and “Yes this would be listed as an open item”.

Just two weeks ago, the key decisions list provided to Scrutiny Committee showed that the open report would be coming to this meeting of Cabinet.

But it is not here – and the new key decisions list does not show the report being rearranged. So my questions on this item are:

c) What has happened to this report?

d) What has happened to the money that was appropriated for it?

e) Has the idea of a ‘Teckal’ company been dropped?

The Chairman stated that the questions would be answered when the items were discussed.

Councillors are reminded of the requirement to declare any interest, including the type of interest, and reason for that interest, either at this stage of the meeting or as soon as they become aware of that interest.

Members were reminded of the need to make declarations of interest when appropriate.

The following interests were reported:

Item 9 Grant payments to external organisations:

Cllr C R Slade declared a personal interest as he was the Devon County Council representative for INVOLVE, the Chairman of the Grand Western Canal Joint Advisory Committee and a Trustee of the Tiverton Museum.

Cllr D J Knowles declared a personal Interest as he was a Life Member of the Tiverton Museum and a Trustee of INVOLVE.

Cllr B A Moore declared a personal interest as he was the Mid Devon Representative for INVOLVE.

Members to consider whether to approve the minutes as a correct record of the meeting held on 7 January 2021.

Subject to the inclusion of Cllr A Wilce in the attendance list, the minutes of the previous meeting were approved as a correct record.

The following motion has been passed to the Cabinet from Council for consideration and report:

This Council agrees to commission, as a matter of urgency, a plan based on evidence of local housing need for the delivery of affordable rented and social rented housing across Mid Devon. This plan should make best use of the Government's Affordable Housing programme 2021/26 and be presented to Council by June 2021.

The following motion has been passed to the Cabinet from Council for consideration and report:

This Council agrees to commission, as a matter of urgency, a plan based on evidence of local housing need for the delivery of affordable rented and social rented housing across Mid Devon. This plan should make best use of the Government's Affordable Housing programme 2021/26 and be presented to Council by June 2021.

The Lead Member for the Motion was invited to address the Cabinet:  Cllr G Barnell then addressed the meeting stating that the motion was proposed as a call for action from the minority group asking for a plan within 6 months for delivery of social and affordable rented housing. It did not ask for the delivery of a joint Local Housing Needs Assessment or a new Housing Strategy both of which were not necessary for the delivery of more social rented housing.  He referred to the priorities within the Corporate Plan and explained that there was a growing gap in social rented housing in the district.  He referred to registered providers who wanted to deliver social rented housing, the impact of the ‘Right to Buy’ scheme and the modest programme of return on social rented housing.  He referred to national studies and the programme for housing for social rented and affordable rented homes and MDDC’s performance figures against those studies.  He referred to monies allocated within the Medium Term Financial Plan set aside for the construction of additional affordable rented homes which could yield an additional seven or eight homes and that this would not keep pace with homes being released under ‘Right to Buy’; there was no mention of socially rented homes.  He then referred to funding streams available and the urgent need for an ambitious plan for the delivery of a programme of social rented housing across Mid Devon.

Cllr Clist was then invited to address the meeting: he stated that the Cabinet Member for Housing and Property Services was aware of the need for social rented housing and following the pandemic the need would be greater.

The Cabinet Member for Housing and Property Services responded stating that he felt that the motion was unnecessary, it was a duplication of the work that was already underway, and that there was a need for a realistic plan, for the authority to take advantage of other funding opportunities and to have a proper evidence based assessment of the need, together with evidence of the type of accommodation required, construction type, wider infrastructure costs and land availability.  He was working with officers on a 15 month fully evidenced plan.  He referred to funding streams available and the time limits on those, the money that had had to be returned and a request to the HMCLG for an extension of time

Consideration was given to:

·         The New Homes Bonus and that it was not a fund for building new homes, it had been set up as a bonus grant to benefit the community, keep  ...  view the full minutes text for item 303.

To consider a report of the Head of Planning, Regeneration and Economy considering options available to Council for the scope, approach and timetable for the preparation of a new Local Plan for Mid Devon.

The Cabinet had before it a *report of the Head of Planning, Regeneration and Economy considering options available to Council for the scope, approach and timetable for the preparation of a new Local Plan for Mid Devon.

The Cabinet Member for Planning and Economic Regeneration stated that there was a legal requirement for the Council to complete a review of the Mid Devon Local Plan 5 years from the date of its adoption. The current Mid Devon Local Plan was adopted in late July 2020 and was examined through transitional arrangements in relation to the 2012 NPPF.

In order to meet the legal requirement for a review there was a need to start preparing a new local plan for the district now which would

·         be in conformity with current national planning policy in the 2019 NPPF,

·         maintain a 5 year supply of housing sites to meet future housing needs,

·         provide planning policy for the Culm Garden Village proposal; and

·         which could respond to the Council’s policy priorities.

There was also a need to start preparing a new Local Plan following the decisions made by Councils not to progress the Greater Exeter Strategic Plan and for a joint non-statutory strategy and infrastructure plan to be prepared instead.

The paper before members also considered the merits of 6 alternative approaches for preparing a new Local Plan. These included an option for no review needed, a partial plan review and a full plan review. These are weighed up in terms of their advantages and disadvantages. The report also highlighted:

·         that a delay to plan making could risk the strategic policies for Mid Devon becoming out of date, an inability to demonstrate a 5 year supply of housing land and the ‘tilted balance’ being applied to planning decisions for housing proposals on sites not identified in the Local Plan; and

·         that while future planning reforms set out in the Government’s White Paper could affect a number of the options, the Government had strongly encouraged local authorities to continue the preparation and adoption of local plans and not to delay this in the expectation of those future planning reforms

He outlined the recommendation within the report stating that this could be achieved through current resourcing and budgetary provision, with a potential adoption in mid-2025.

He added that the report also recommended that a non-statutory interim policy statement on planning for climate emergency be prepared alongside the new Local Plan – Option 3. This could supplement current adopted Local Plan policies and help inform the policies in a new local plan.

Consideration was given to:

·         The involvement of the Planning Policy Advisory Group in bringing the report forward

·         The interim policy statement for climate emergency would act as a bridge and that the new Climate Change officer would guide this further

·         The timeline for the plan and whether it would take too long and that key issues should be considered within a shorter timeframe

RESOLVED that:

The preparation of a new Local Plan for Mid Devon  ...  view the full minutes text for item 304.

To consider a report of the Head of Planning, Regeneration and Economy updating the Local Development Scheme and providing a timetable for the production of a new Local Plan for Mid Devon.

The Cabinet had before it a *report of the Head of Planning, Regeneration and Economy updating the Local Development Scheme and providing a timetable for the production of a new Local Plan for Mid Devon.

The Cabinet Member for Planning and Economic Regeneration outlined the contents of the report stating that there was a legal requirement for the Council to have a Local Development Scheme, which must be made publicly available and kept up to date.

The adoption of the Mid Devon Local Plan in late July 2020 and decisions made by Councils not to progress the Greater Exeter Strategic Plan meant that there was a need for the Local Development Scheme to be revised.

The report sought Cabinet approval for a revised Local Development Scheme to come into effect on the 11^th February. The scheme set out the timetable for preparing a new Local Plan for Mid Devon which followed the option 6b full plan review with enhanced consultation that was recommended in the preceding Cabinet report.

The revised Local Development Scheme no longer included a timetable for preparing the Greater Exeter Strategic Plan, and did not include a timetable for preparing a joint non-statutory strategy and infrastructure plan since this would not be subject to a formal process for plan making.

There was no requirement to consult on revisions to the Local Development Scheme. Once approved and brought into effect, the revised Local Development Scheme would be published on the Council’s website.

RESOLVED that the revised Local Development Scheme attached at Appendix 1 be approved to come into effect on 11 February 2021.

(Proposed by Cllr R J Chesterton and seconded by Cllr C R Slade)

Reason for decision:A Local Development Scheme is required under section 15 of the Planning and Compulsory Purchase Act 2004 as amended by Section 111 of the Localism Act 2011.

Note: *Report previously circulated, copy attached to minutes.

Following consideration of a report of the Head of Planning, Economy and Regeneration, the Community Policy Development Group has made the following recommendation:

1)    A one year grant award be made for 2021-2022, with a review in the autumn of 2021;

2)    Grants to be made on a 1 year settlement basis, to be reviewed annually each autumn;

3)    The £9650 previously offered to Age UK Mid Devon be identified as a saving;

4)    The grant payments for 2021 – 2022 to the Council’s other strategic partners should remain at the same levels as 2020-2021;

5)    The levels recommended were:

·         If the Cabinet were minded to reduce the grant payment awards in 2021-2022 the Community Policy Development Group would recommend that the organisations which directly supported vulnerable residents should have their grant payments protected, namely:

·         Churches Housing Action Team (CHAT)

·         Citizens Advice

·         Involve – Voluntary Action in Mid Devon

·         Mid Devon Mobility

Following consideration of a report of the Head of Planning, Economy and Regeneration, the Community Policy Development Group had made the following recommendation:

1)    A one year grant award be made for 2021-2022, with a review in the autumn of 2021;

2)    Grants to be made on a 1 year settlement basis, to be reviewed annually each autumn;

3)    The £9650 previously offered to Age UK Mid Devon be identified as a saving;

4)    The grant payments for 2021 – 2022 to the Council’s other strategic partners should remain at the same levels as 2020-2021;

5)    The levels recommended were:

·         If the Cabinet were minded to reduce the grant payment awards in 2021-2022 the Community Policy Development Group would recommend that the organisations which directly supported vulnerable residents should have their grant payments protected, namely:

·         Churches Housing Action Team (CHAT)

·         Citizens Advice

·         Involve – Voluntary Action in Mid Devon

·         Mid Devon Mobility

The Cabinet Member for Community Well-Being outlined the contents of the report stating that many of the strategic partners had found new funding streams which could be used in addition to the grants available from the authority.  He highlighted the closure of Age UK (Mid Devon) and that this money could be used as a potential saving.  He explained the impact of the pandemic on many of the grant recipients and how they would be important in the future.

Consideration was given to:

·         The need to consider a longer term settlement for grant recipients in the future, rather than a one year settlement

·         A typographical error with regard to the 2019/20 funding for the Citizens Advice Bureau

·         How vital the recipients were to the community and the role they were playing during the pandemic

RESOLVED that the recommendation of the Policy Development Group be approved.

(Proposed by Cllr D J Knowles and seconded by Cllr C R Slade)

Reason for the Decision – So that the allocation of grants could continue to support external agencies delivering services to enhance the Council’s Homes, Community and Economy priorities

Notes:

i)             Cllr D J Knowles declared a personal Interest as he was a Life Member of the Tiverton Museum and a Trustee of INVOLVE;

ii)            Cllr B A Moore declared a personal interest as he was the Mid Devon Representative for INVOLVE;

iii)           Cllr C R Slade declared a personal interest as he was the Devon County Council representative for INVOLVE, the Chairman of the Grand Western Canal Joint Advisory Committee and a Trustee of the Tiverton Museum;

iv)           *Report previously circulated and attached to the minutes

To consider a report of the Chief Executive providing Cabinet with a 5 year Business Plan.

The Cabinet had before it a * report of the Chief Executive providing Cabinet with a 5 year Business Plan.

The Cabinet Member for Housing and Property Services introduced the 2 new directors that had joined the company:

·         Mr Bill Yardley – Non Executive Director

·         Mr John Riley – Finance Director

and welcomed them to the meeting.

A Member posed a series of questions which were answered by the Deputy Chief Executive (151) at this point in the meeting:

With regard to interest received, the Deputy Chief Executive (S151) stated that all the interest was shown in the top part of the table, monies were earned and recharged and the money came from cash balances not the PWLB.

With regard to MDDC recharges – these amounts related to costs of MDDC officer time, office accommodation, IT support etc, and whether the council recharges the company at cost, the Deputy Chief Executive (s151) stated that the Councillor was correct, all amounts were recharged at cost, but that it was a financial benefit to the Council.

With regard to loans advanced - clarity was sought with regard to the loan figures and a statement by the Chief Executive which differed in amounts and whether the loans were properly secured– the Deputy Chief Executive (S151) stated that – this has nothing to do with working capital, the loan was £9,611,100 – the difference was the timing difference on the VAT on Knowle Lane and with regard to securing the loan – this was in hand at the present time.

Repaid – if the VAT refund was £550,000 would this not have allowed 3RDL to pay the Council back the single working capital loan it was using to fund its normal operations. The Deputy Chief Executive (S151) stated that the overall loan request for the Knowle Lane site initially included the £550k VAT charged on the land purchase. This sum was fully repaid by the company once they had recovered the VAT from HMRC.

How the working capital loan had been paid off? – the Deputy Chief Executive (S151) to provide this information. (Answer supplied - The working capital advance(s) are being recharged back to the company over a 4 year period which is based on the estimated breakeven timetable).

Why impairments had been considered a direct financial benefit to the Council – The Deputy Chief Executive (S151) stated the report did not state impairments were a financial benefit, but there was a financial benefit in the table – loans and impairments could be signified at the bottom of the table.

Discussion then took place with regard to:

·         impairments and how they were reported

·         the need for proper scrutiny of the business plan prior to a decision of the Cabinet

·         The  presentations made to the informal workshop for the Scrutiny and Audit Committees and the work that was taking place to include the Audit Committee in the risk aspect of the business

·         Whether there should be more information within the business plan with  ...  view the full minutes text for item 307.

To consider a  report of the Deputy Chief Executive (S151) detailing the statutory calculations necessary to determine the Tax Base for the Council Tax.  The calculations made follow a formula laid down in Regulations.

The Cabinet had before it a * report of the Deputy Chief Executive (S151) detailing the statutory calculations necessary to determine the Tax Base for the Council Tax.  The calculations made follow a formula laid down in Regulations.

The officer outlined the contents of the report stating that every year each billing authority was required to calculate and approve its Band D equivalent Council Tax base.  The figure for the coming year was 28,594,38 properties which amounted to £6,114,620 being raised by Council Tax for the district.  The report set out the key information and the exemptions/ appeals allowance/discounts that were applicable and which impacted on the return.  He added that the collection rate was normally 98% but had been reduced to 96% because of the pandemic.

(Proposed by Cllr B A Moore and seconded by Cllr R B Evans)

Reason for decision: Mid Devon District Council is a Statutory Billing Authority and must set its Council tax each year.

Note:  *Report previously circulated, copy attached to minutes.

To consider a  report of the Deputy Chief Executive (S151)  providing Members with an update of the income generation and financial implications of the number of Business Rate properties in Mid Devon and to approve the NNDR1 (estimated income to be generated in 2021/22 from business rates).

The Cabinet had before it a * report of the Deputy Chief Executive (S151)  providing Members with an update of the income generation and financial implications of the number of Business Rate properties in Mid Devon and to approve the NNDR1 (estimated income to be generated in 2021/22 from business rates).

The officer outlined the contents of the report stating that again this was a statutory requirement for setting the business rate property base.  The net yield from 3350 business rated properties amounted to £15,501,737.  A large amount of the receipt went into the Central Government pool and was redistributed, the approximate figure kept by Mid Devon was £3.3m.  Again exemptions/allowances and reliefs applied and these are all verified by the Revenues Team and checked by the Accountancy Team.  He reported that there may be a delay in the billing exercise due to the timing of the Chancellor’s budget announcements.

(Proposed by Cllr B A Moore and seconded by Cllr C R Slade)

Reason for decision: This is a statutory function and is a legal requirement. The Council must set its budget annually based on the tax base and the NNDR1 projected values.

Note:  *Report previously circulated, copy attached to minutes.

To receive a report of the Deputy Chief Executive (S151) presenting a financial update in respect of the income and expenditure so far in the year.

The Cabinet had before it and NOTED a * a report of the Deputy Chief Executive (S151) presenting a financial update in respect of the income and expenditure so far in the year.

The officer outlined the contents of the report explaining how the current year had been unprecedented, but to date the General Fund deficit was predicted at £89K.  The Council had received 4 tranches of Government support and it was estimated that the Government would pay £1.6m in income protection to mitigate losses in leisure, planning, car parking etc. and that they had also stated that they would honour 75% of any lost revenue from Council Tax and Business Rates, but that guidance was still awaited. 2 claims for income protection had been made and a final one would be made at the end of May.

Consideration was given to:

·         The pressure on staff at the current time and the support given by managers and senior officers

·         The savings made on vacancies

·         Prioritisation of service delivery

Note:  *Report previously circulated, copy attached to minutes.

To consider a report of the Deputy Chief Executive (S151) providing the budget proposals for the General Fund and the Housing Revenue Account for the year 2021/22.

The Cabinet had before it a * report of the Deputy Chief Executive (S151) providing the budget proposals for the General Fund and the Housing Revenue Account for the year 2021/22.

The Cabinet Member for Finance outlined the contents of the report stating that the proposed budget had been discussed at numerous meetings throughout the year which had included review by the Policy Development Groups and the Scrutiny Committee.  He explained that there was a need for a temporary transfer from the New Homes Bonus of £385K to cover the deficit.  He referred to the budget gap predicted for 2022/23 and the work that had to take place with regard to this.

The Deputy Chief Executive (S151) reported that the settlement to be received from the Government was in line with the figures stated in the report

Consideration was given to:

·         The savings required for the financial year 2022/23

·         The need for a conversation on climate change priorities going forwards and the schemes that had already been highlighted

·         News of external funding that had been achieved that day from the Decarbonisation Fund which would help improve the leisure centres, the multi-storey carpark and other portfolio assets

(Proposed by Cllr B A Moore and seconded by Cllr R B Evans)

Reason for decision – there is a need to make a recommendation to Council requesting that a balanced budget be set.

Note: *Report previously circulated, copy attached to minutes.

To consider a report of the Deputy Chief Executive (S151) seeking approval of the 2021/22 Capital Programme and note the draft 2022/23, 2023/24 and 2024/25 programmes and make recommendation to Council.

The Cabinet had before it a *report of the Deputy Chief Executive (S151) seeking approval of the 2021/22 Capital Programme and note the draft 2022/23, 2023/24 and 2024/25 programmes and make recommendation to Council.

The officer outlined the contents of the report stating that most members had been able to challenge the contents of the Capital Programme through various meetings.  He outlined the material items within the report that of the hydro mills project, 3 Rivers funding, ongoing financial support for the HIF Scheme and HRA build and property maintenance.

(Proposed by Cllr B A Moore and seconded by Cllr C R Slade)

Reason for the decision:  There is a need for a balanced Capital Programme to be agreed by Council.

Note:  *Report previously circulated, copy attached to minutes.

To consider a report of the Deputy Chief Executive (S151) informing Members that the Council’s tax risk exposure has changed and having tax policies and procedures in place helps to mitigate this risk.

The Cabinet had before it a *report of the Deputy Chief Executive (S151) informing Members that the Council’s tax risk exposure has changed and having tax policies and procedures in place helped to mitigate this risk.

The officer outlined the contents of the report stating that this was a new policy to comply with the Criminal Finances Act 2017 which introduced a corporate offence, which applied to relevant bodies including local authorities.  This offence could occur where an associated person of a local authority, which could include suppliers had committed tax evasion offences and the local authority was held guilty of failure to prevent.  There was a need for due diligence to protect the authority against any offence, with reasonable measures in place to mitigate the risk.

(Proposed by Cllr B A Moore and seconded by Cllr R B Evans)

Reason for decision – there is a need to have such a strategy in place.

Note: *Report previously circulated, copy attached to minutes.

To consider a report of the Chief Executive with regard to the Policy Framework and requesting the Cabinet to make recommendation to Council.

The Cabinet had before it a * report of the Chief Executive with regard to the Policy Framework and requesting the Cabinet to make recommendation to Council.

(Proposed by the Chairman)

Reason for the decision – the Constitution states that the Policy Framework must be approved by Council each year.

Note: *Report previously circulated, copy attached to minutes.

To consider a report of the Corporate Manager for People, Governance and Waste complying  with the legislative requirements of the Localism Act 2011 relating to senior pay in particular the role of the Chief Executive, Directors and other senior officers. The Localism Act 2011 requires an annually published Pay Policy which has been adopted by the full Council.

The Cabinet had before it a * report of the Corporate Manager for People, Governance and Waste complying with the legislative requirements of the Localism Act 2011 relating to senior pay in particular the role of the Chief Executive, Directors and other senior officers.

Responding to a question raised in public question time with regard to a retention payment being made, the Leader stated that: the retention payment was made to retain a critical member of the Leadership Team at a time when the Council was about to lose a number of staff to an adjacent local authority, given that that authority’s pay bands for that equivalent post were significantly higher than Mid Devon’s as a result of its enlarged size due to a merger of two authorities

The Cabinet Member for the Working Environment and Support Services outlined the contents of the report stating that the Pay Policy appended to the report was to be noted as a draft, pending formal review by both management team, unions and the staff consultative group.  The Pay Policy would be approved at the Joint Negotiation and Consultative Committee which she attended.

(Proposed by the Chairman)

Reason for the decision: The Localism Act 2011 requires an annually published Pay Policy which has been adopted by the full Council.

Note:  *Report previously circulated, copy attached to minutes

To consider a report of the Corporate Manager for People, Governance and Waste informing Members of the overall structure of the Council showing the management and deployment of officers. This report should be read in conjunction with the functions of individual officers highlighted in the constitution.

The Cabinet had before it a * report of the Corporate Manager for People, Governance and Waste informing Members of the overall structure of the Council showing the management and deployment of officers.

The officer outlined the contents of the report stating that it set out the new senior management structure, performance of the workforce and sickness absence statistics

(Proposed by the Chairman)

Reason for the decision: The Constitution states that the Establishment should be received by Council annually.

Note:  *Report previously circulated, copy attached to minutes.

To note the contents of the Forward Plan.

The Cabinet had before it and NOTED its *rolling plan for March 2021 containing future key decisions.

Providing answers to questions posed in public question time with regard to a report on a ‘Teckal’ company, the Cabinet Member for Housing and Property Services stated that the report had been moved to the April meeting of Cabinet and could be found on page 226 of the agenda pack.  The budget for this work would be carried forward into the next financial year and no, the idea had not been dropped, the Council would be considering a number of options for social housing.

Note: *Plan previously circulated, copy attached to minutes.

To consider a report of the Chief Executive providing an update on current project performance and any key risks.

The Cabinet had before it and NOTED a * report from the Chief Executive providing an update on current project performance and any key risks.

The Cabinet Member for Housing and Property Services stated that the information within the report provided an up to date reflection on the progress made by the company.

Note:  *Report previously circulated, copy attached to minutes.