Agenda, decisions and minutes

Cllr Hamida Ali (Chair) welcomed colleagues to the meeting and invited introductions from members of Cabinet.

There were no apoloies for absence received from Members.

The Chair took the opportunity to raise the sad situation in the Ukraine and expressed Council and community support for those affected, with Croydon Council already in receipt of vast donations to be shipped to Poland to assist the refugees.

Members and co-opted Members of the Council are reminded that, in accordance with the Council’s Code of Conduct and the statutory provisions of the Localism Act, they are required to consider in advance of each meeting whether they have a disclosable pecuniary interest (DPI), an other registrable interest (ORI) or a non-registrable interest (NRI) in relation to any matter on the agenda. If advice is needed, Members should contact the Monitoring Officer in good time before the meeting.

If any Member or co-opted Member of the Council identifies a DPI or ORI which they have not already registered on the Council’s register of interests or which requires updating, they should complete the disclosure form which can be obtained from Democratic Services at any time, copies of which will be available at the meeting for return to the Monitoring Officer.

Members and co-opted Members are required to disclose any DPIs and ORIs at the meeting.

-      Where the matter relates to a DPI they may not participate in any discussion or vote on the matter and must not stay in the meeting unless granted a dispensation.

-      Where the matter relates to an ORI they may not vote on the matter unless granted a dispensation.

-      Where a Member or co-opted Member has an NRI which directly relates to their financial interest or wellbeing, or that of a relative or close associate, they must disclose the interest at the meeting, may not take part in any discussion or vote on the matter and must not stay in the meeting unless granted a dispensation. Where a matter affects the NRI of a Member or co-opted Member, section 9 of Appendix B of the Code of Conduct sets out the test which must be applied by the Member to decide whether disclosure is required.

The Chair will invite Members to make their disclosure orally at the commencement of Agenda item 3, to be recorded in the minutes.

There were no disclosures of interest made by Members at the meeting.

To receive notice of any business not on the agenda which in the opinion of the Chair, by reason of special circumstances, be considered as a matter of urgency.

There were no items of urgent business.

Cabinet Member: Leader of Croydon Council, Councillor Hamida Ali

Officer: Corporate Director of Resources (Section 151 Officer), Jane West

Key decision: No

The Leader of the Council has delegated authority to the Cabinet to make the following decisions:

That Cabinet be recommended to approve and to recommend the following to Full Council for its consideration and approval at its meeting on 7th March 2022:

1.      The General Fund revenue budget for 2022/23 as set out in appendices A to D;

2.      The Council’s request for a capitalisation direction from the Department of Levelling Up, Housing and Communities [DLUHC] of up to £50m for 2021/22 and up to £25m for 2022/23 as set out in paragraph 9.26

3.      1.99% increase for Croydon Services in 2022/23 (in line with government’s core spending power assumptions) as detailed in Section 10 and Appendix E

4.      A 1.00% increase in 2022/23 for the Adult Social Care Precept (in line with government’s core spending power assumptions) as detailed in Section 10 and Appendix E

5.      To note the draft Greater London Authority precept on the Collection Fund and increase of 8.8% as set out in Appendix F

6.      With reference to the principles for 2022/23 determined by the Secretary of State under Section52ZC (1) of the Local Government Finance Act 1992 (as amended) confirm that in accordance with Section 52ZB (1) the Council Tax and GLA precept referred to above are not excessive in terms of the most recently issued principles and as such to note that no referendum is required. This is detailed further in section 10 of this report.

7.      The calculation of budget requirement and council tax as set out in Appendix E and F including the GLA increase will result in a total increase of 4.11% in the overall council tax bill for Croydon.

8.      The revenue budget assumptions as detailed in this report and the associated appendices

9.      The detailed programme of revenue savings, income and growth items, by directorate, as set out in Appendix B

10.   That based on the advice of the Pension Fund Actuary and the Fund's independent investment advisors (as provided to the Pension Committee), and upon the wording of the Hymans Robertson recently issued Draft Rates and Adjustments Certificate, the Council agrees not to progress plans to transfer properties to the Pension Fund (as detailed in Section 12);

11.   The Council’s 2022/23 HRA revenue budget as set out in Section 15

12.   The amendment to the previously approved General Fund capital budget to reflect the change in requested transformation funding requests (to be financed by the use of flexible capital receipts) as detailed in section 16.

13.   The list of individual transformation projects as detailed in Section 16

14.   In relation to the Facility Agreement with Brick By Brick Croydon Ltd:

                        i.   Approve variations to the Facility Agreement to:

a.     change the repayment structure to allow flexibility in the way the Council can apply repayments, as explained in section 9; and

b.     reflect the inclusion of £1.379m of outstanding liabilities post the Fairfield Halls expenditure review.

                      ii.   Approve that the Section 151 Officer shall be authorised to finalise  ...  view the full decision text for item 45/22

Cllr Ali reminded colleagues of previous discussion around the capitalisation direction following the Period 9 report. Members were notified that confirmation of £25million support had now been received from the Minister of State. The Chair expressed the positive shift and extensive work of the council to be in a far more sustainable position.

Cllr Ali took the opportunity to formally welcome new Corporate Director for Resources, Jane West, and thanked colleagues, Chris Boss and Richard Ennis for their contribution to the current budget setting. Members noted challenges ahead,  including the proposal for savings of £55million but were encouraged at the shift in the council’s capacity to engage and meet these commitments.

Jane West was invited to introduce the report. Members received an outline of the content of the papers and made several key points, including:

·       She acknowledged uncertainty at the current time due to events and funding from government and therefore preparation for any eventuality is key going forward.

·       The position for councils around Adult Social Care Funding is still unclear.

·       Croydon has local challenges including finalisation of 2020/21 accounts which need to be addressed.

·       The budget has built in realistic markers against pressures.

·       Members were being asked to agree the raise in Council Tax of 1.99% with an additional 1% for Adult Social Care, the maximum amount permissible under referendum rules.

·       The budget will need to be actively managed throughout the year.

·       The budget is on track for a small underspend at the end of the year.

·       Reserve levels will need to be assessed every year.

·       Good progress has been made but more is needed and will be achievable with this budget as a roadmap for the way ahead.

Ms West informed Cabinet that she concurred with previous officers’ conclusions on the robustness of the Council’s budget estimates, under Section 25 of the Local Government Act, 1993, and that the recommendations should be agreed.

Cllr King thanked Ms West for her contribution and reminded colleagues of previous budget forecasts, the purpose of the budget strategy and the work achieved in aiming to fix the council’s finances and to ensure that it continues to serve its residents. Members recognised the council’s commitment to improve its position and were pleased to hear about reinvestment in services now possible because of the sound management of managing its finances.

Members noted the highest amount of reserves in recent history and new earmarked reserves to protect the budget. A reduction in borrowing has also been achieved and Cllr King said that this has been done, despite cuts in funding and inflation bills.

In conclusion, Cllr King reminded colleagues that exploration and mitigation of risks are considered, He asked for clarity on the level of short-term debt and reassurance that inflation will be dealt with robustly, with the council’s contractors absorbing the costs. 

Ms West responded to the comments made and agreed that priorities would include management of risk, allowing a greater preparation for uncertainties. She confirmed that any contracts will require re-negotiation with respect  ...  view the full minutes text for item 45/22

Cabinet Member: Deputy Leader (Statutory) and Cabinet Member for Croydon Renewal, Councillor Stuart King

Officer: Interim Corporate Director of Resources (Section 115 Officer), Richard Ennis

Key decision: No

The Leader of the Council has delegated to the Cabinet the power to make the decisions set out in the recommendations below.

The Cabinet is asked to recommend to Full Council that it approves:

1.1.           The Treasury Management Strategy Statement 2022/23 as set out in this report including the recommendations:

1.1.1.       That the Council takes up borrowing requirements as set out in paragraph 4.15.

1.1.2.        That for the reasons detailed in paragraph 4.21, opportunities for debt rescheduling are reviewed throughout the year by the Corporate Director Resources (Section151 Officer) and that he be given delegated authority, in consultation with the  relevant member/s of the Executive carrying portfolio responsibilities which cover those currently performed by the Cabinet Member for Resources & Financial Governance and Cabinet Member for Croydon Renewal in relation to Treasury Management in conjunction with the Council’s independent treasury advisers, to undertake such rescheduling only if revenue savings or additional cost avoidance can be achieved at minimal risk in line with organisational considerations and with regard to the Housing Revenue Account (HRA) as set out in the Council’s Medium Term Financial Strategy 2022/23 to 2024/25.

1.1.3.       That delegated authority be given to the Corporate Director Resources (Section151 Officer), in consultation with the relevant member/s of the Executive carrying portfolio responsibilities which cover those currently performed by the Cabinet Member for Resources & Financial Governance and Cabinet Member for Croydon Renewal in relation to Treasury Management, to make any necessary decisions to protect the Council’s financial position in light of market changes or investment risk exposure.

1.2.           That the Council adopts the Annual Investment Strategy as set out in paragraphs 4.23 and 4.24 of this report.

1.3.           That the Authorised Limit (required by Section 3 of the Local Government Act 2003) as set out in paragraph 4.16 be as follows:

  2022/23                         2023/24                       2024/25

£1,674.624m                 £1,677.024m              £1,687.824m

1.4.           That the Council approve the Prudential Indicators as set out in Appendix D of this report.

1.5.            That the Annual Minimum Revenue Provision Policy Statement (required by the Local Authorities (Capital Financing and Accounting) (England) (Amendment) Regulations 2008SI 2008/414) as set out in Appendix Eof this report be approved.

1.6.            That the Council’s authorised counterparty lending list criteria as advised within 4.24 and updated from time to time  in line with Link Group recommendations, be approved.

1.7.            That in the event of the Council receiving a Capitalisation Direction that requires amendments to any part of the statements, strategies or policies contained in this report that the Corporate Director Resources (Section 151 Officer) be authorized to implement those changes and to report them to the next meetings of the Executive and Council.

1.8.            The Capital Strategy Statement as provided within Appendix A and further detailed within Section 3 of this Report and have regard to the Capital Programme presented within the General Fund & Housing Revenue Account Budget 2022/23 to 2024/25 report which together comprise the Council’s Capital Strategy.

The Chair invited Cllr Stuart King to speak to the item and members received a summary of the treasury management objectives of the council for the forthcoming year.

Members noted significant changes to the capital programme and by putting affordability first in the council’s approach to borrowing. Further detailed work and reviews will be available, and Cllr King asked Cabinet to approve the recommendations set out within the report.

Cabinet members highlighted issues around operational boundaries and the authorized limit and referred to confusion around continued rising external debt. Officers responded to these concerns, stating that there were limits as to when these were up for renewal and the intention is to bring down borrowing in the long term, but for now, is considered affordable.

Members agreed the recommendations.

The Leader of the Council has delegated to the Cabinet the power to make the decisions set out in the recommendations below.

The Cabinet is asked to recommend to Full Council that it approves:

1.1.             The Treasury Management Strategy Statement 2022/23 as set out in this report including the recommendations:

1.1.1.        That the Council takes up borrowing requirements as set out in paragraph 4.15.

1.1.2.        That for the reasons detailed in paragraph 4.21, opportunities for debt rescheduling are reviewed throughout the year by the Corporate Director Resources (Section151 Officer) and that he be given delegated authority, in consultation with the  relevant member/s of the Executive carrying portfolio responsibilities which cover those currently performed by the Cabinet Member for Resources & Financial Governance and Cabinet Member for Croydon Renewal in relation to Treasury Management in conjunction with the Council’s independent treasury advisers, to undertake such rescheduling only if revenue savings or additional cost avoidance can be achieved at minimal risk in line with organisational considerations and with regard to the Housing Revenue Account (HRA) as set out in the Council’s Medium Term Financial Strategy 2022/23 to 2024/25.

1.1.3.       That delegated authority be given to the Corporate Director Resources (Section151 Officer), in consultation with the relevant member/s of the Executive carrying portfolio responsibilities which cover those currently performed by the Cabinet Member for Resources & Financial Governance and Cabinet Member for Croydon Renewal in relation to Treasury Management, to make any necessary decisions to protect the Council’s financial position in light of market changes or investment risk exposure.

1.2.             That the Council adopts the Annual Investment Strategy as set out in paragraphs 4.23 and 4.24 of this report.

1.3.             That the Authorised Limit (required by Section 3 of the Local Government Act 2003) as set out in paragraph 4.16 be as follows:

  2022/23                                2023/24                             2024/25

£1,674.624m                       £1,677.024m                    £1,687.824m

1.4.             That the Council approve the Prudential Indicators as set out in Appendix D of this report.

1.5.              That the Annual Minimum Revenue Provision Policy Statement (required by the Local Authorities (Capital Financing and Accounting) (England) (Amendment) Regulations 2008SI 2008/414) as set out in Appendix Eof this report be approved.

1.6.              That the Council’s authorised counterparty lending list criteria as advised within 4.24 and updated from  ...  view the full minutes text for item 46/22

The following motion is to be moved and seconded where it is proposed to exclude the press and public from the remainder of a meeting:

“That, under Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting for the following items of business on the grounds that it involves the likely disclosure of exempt information falling within those paragraphs indicated in Part 1 of Schedule 12A of the Local Government Act 1972, as amended.”

This was not required.