Minute
North Lanarkshire Council · 23 February 2023
Back to Council — 23 February 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 23 23 February 2023 at 2 pm A Special Meeting of the NORTH LANARKSHIRE COUNCIL PRESENT Councillor Duffy, Provost; Councillor Burgess, Depute Provost; Councillors Ashraf, Ballinger, Barclay, Baudo, Beveridge, Boyd, Brannan-McVey, Brennan, Bustard, Cairns, Campbell, Carragher, Costello, M. Coyle, S. Coyle, Crichton, Currie, Di Mascio, Docherty, Duffy-Lawson, Dunbar, Fisher, Fotheringham, Goldie, Hughes, Hume, Jarvie, D. Johnston, T. Johnston, Jones, Kelly, Keltie, Khan, Larson, Leckie, Lennon, Linden, Logue, Loughran, MacGregor, Magowan, Masterton, McBride, McCluskey, B. McCulloch, M. McCulloch, McDade, McKay, McKendrick, McLaren, McManus, McNally, McPake, McPhilemy, McVey, Mitchell, Nolan, Patton, Reddin, Roarty, Robb, Robinson, Shevlin, Shields, Smith, Stevenson, A. Stubbs, L. Stubbs, Sullivan, Thomas, Toner, Watson, Williams, Wilson and Woods. CHAIR Councillor Duffy (Provost) presided. IN ATTENDANCE The Chief Executive; Depute Chief Executive; Chief Officer (Finance); Chief Officer (Legal and Democratic); Chief Officer (Strategic Communication and Engagement); Democratic Services Manager, and Principal Democratic Officer. PROVOST'S REMARKS - SIR CHARLES GRAY The Provost announced that former Councillor Sir Charles Gray had passed away. Sir Charles was elected as a Councillor in 1958 with Lanark County Council. He was subsequently Leader of Strathclyde Region from 1986 to 1992 before transferring to North Lanarkshire Council in 1995 where he was appointed Convener of the Education Committee. In 2007 he was awarded a Knighthood for services to education. The Provost on behalf of the Council, expressed his condolences to the family. Thereafter the Council observed a one minute silence. DECLARATIONS OF INTEREST IN TERMS OF THE ETHICAL STANDARDS IN PUBLIC LIFE ETC. (SCOTLAND) ACT 2000 1. Councillor M. Coyle, by virtue of being a Board Member of Mears LLP, declared a connection in respect of paragraph 4 – Revenue Budget 2023/2024 to 2025/2026 and Council Tax 2023/2024, and further declared that he considered the interest so sufficiently remote that it did not preclude his participation in this item. HOUSING REVENUE ACCOUNT – REVENUE ESTIMATES 2023/2024 2. With reference to paragraph 10 of the Minute of the meeting of the Housing Committee held on 15 February 2023 when (1) the Housing Revenue Account cost pressures set out in Appendix 1 to the report were noted; (2) the base budget savings outlined in Appendix 2 to the report were noted; (3) the allocation of the HRA surplus balances as detailed in the report were noted, and (4) it was agreed that the financial assumptions contained within the report be reviewed at the Special Council meeting on 23 February 2023 to allow approval of the HRA revenue estimates for 2023/24, there was submitted the said report.
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 24 Councillor Brannan-McVey, seconded by Councillor McPake, moved:- 1. In setting the 2023/24 budget for the Housing Revenue Account, Council notes the continuing progress made in delivering the ambitious programme for housing, supported by previous budget decisions, including: • Increasing the Council’s target for new supply housing from 2,150 by 2027 to 5,000 by 2035, • Completion of 970 new build homes with a further 421 on site. Sites have been identified and are various stages of progression for a further 1,346 homes, • Expansion of the buy back scheme which will allow around 130 homes to be brought back into use each year. A total of 606 home have already been purchased, • The approval, development and ongoing delivery of plans for investment and re- provisioning of the Council’s tower properties, and • Approval of record investment in a 5 year mainstream capital programme from 2021/22 to 2025/26 that aims to deliver £354m of investment in the Council’s housing stock representing a 20% increase from the previous 5 year period. 2. Note the cost pressures and base budget savings outlined in Section 2 of the ‘Housing Revenue Account – Revenue Estimates 2023/24’ report. 3. Propose a rental increase of 5% for 2023/24 to generate £7.156m. With inflation at 10.5% in December, this below inflation increase will allow for the continuation of high quality and valued service provision by the Housing service and maintenance of plans for record capital investment of over £130m to ensure the Council continues to meet home quality standards, build new homes, buy back properties and reprovision towers. 4. Importantly, a rental rise of 5% will ensure the Council can continue to support tenants on low incomes and on Universal Credit through its Rent Assistance Fund. 5. Propose £1m from the 2022/23 projected surplus is allocated to the Rent Assistance Fund to increase the number of tenants receiving support. 6. Propose one-off utilisation of £3.088m from the Ambition Reserve to support cost pressures during 2023/24. 7. Propose all other charges including for lock-ups, laundries and Sheltered Housing utilities are also increased by 5%. 8. Agree to maintain a core contingency reserve representing 1% of the Housing Revenue Account annual budget (approximately £1.5 million). Decided: (1) that the Housing Revenue Account Budget for 2023/2024 be implemented; (2) that the cost pressures and base budget savings outlined in Section 2 of the Housing Revenue – Revenue Estimates 2023/2024 report be noted. (3) that a below inflation rental increase of 5% for 2023/2024 be approved which will allow for the continuation of high quality and valued service provision by the Housing Service and maintenance of plans for record capital investment of over £130m to ensure that the Council
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 25 continues to meet home quality standards, build new homes, buy back properties and reprovision towers; (4) that it be noted that a rental rise of 5% will ensure that the Council can continue to support tenants on low incomes and on Universal Credit through the Rent Assistance Fund. (5) that £1m from the 2022/23 projected surplus be allocated to the Rent Assistance Fund to increase the number of tenants receiving support. (6) that one-off utilisation of £3.088m from the Ambition Reserve to support cost pressures during 2023/24 be agreed. (7) that all other charges including for lock-ups, laundries and Sheltered Housing utilities be increased by 5%. (8) that the core contingency reserve representing 1% of the Housing Revenue Account annual budget (approximately £1.500 million) be maintained. ACCOUNTING FOR SERVICE CONCESSIONS 3. There was submitted a report by the Chief Officer (Finance) (1) seeking approval to implement a change in accounting for all existing service concession agreements following the publication of new statutory guidance published in September 2022; (2) intimating that the guidance provides a statutory override to the requirements of the accounting code in respect of the Council’s existing service concessions for PPP Schools only and must be adopted no later than financial year 2023/2024; (3) providing details of the key principles of the statutory guidance and the detailed financial implications, including potential associated one-off costs that may require to be managed, subject to future decisions on use of one-off retrospective savings; (4) informing that there was no change to the unitary charge cash payment to school contractors over the period and the change applies only to the accounting treatment in respect of the repayment of debt in the Council’s revenue account; (5) indicating that the change in accounting treatment will see a reduction in annual accounting charges for service concession arrangements in the short to medium term, due to spreading them over the remaining useful life of their asset rather than the shorter contract life which is currently applicable; (6) advising that this will result in a short to medium term financial benefit for the Council and this has been reflected as a base budget adjustment to reduce the Council’s budget gap in 2023/2024; (7) intimating that, based on the analysis shown in Appendix 1 to the report, an annual financial saving of £4m is estimated to be prudent and sustainable over the short to medium term, and (8) informing that future changes in respect of implementing the new accounting standard IFRS16, which was planned to be adopted by the Council in 2024/2025, are also anticipated to give a financial benefit in respect of costs of service concession arrangements only and that this would be given due consideration as part of future budgetary strategies. Decided: (1) that the implementation of the change in accounting for all existing service concession arrangements be approved; (2) that the reduction in annual accounting costs of service concessions over the short to medium term, which has been reflected in the 2023/2024 to 2025/2026 budget report to be considered at this meeting, be acknowledged; (3) that the one-off benefit generated in applying the accounting change retrospectively, and its use, be acknowledged and that it be noted that the use of this benefit will be approved as part of future budget strategies, subject to an affordability review, and
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 26 (4) that it be recognised that further financial benefit may be generated following the implementation of the IFRS16 in 2024/2025. Councillor M. Coyle, prior to consideration of the following item of business, having declared a connection by virtue of being a Board Member of Mears LLP, further declared that he considered the interest so sufficiently remote that it did not preclude his participation in the item. REVENUE BUDGET 2023/2024 TO 2025/2026 AND COUNCIL TAX 2023/2024 4. There was submitted a report by the Chief Officer (Finance) (1) providing information to enable the Council to set its Revenue Budget and Council Tax for 2023/2024 and providing a forecast revenue budget position for financial years 2024/2025 and 2025/2026; (2) intimating that the Council’s Medium Term Financial Plan, approved by the Policy and Strategy Committee on 29 September 2022, identified an envisaged three year budget gap of £74.817m, with an estimated short fall of £37.897m in 2023/2024 and that this forecast had been updated to reflect the 2023/2024 financial settlement contained in the Local Government Finance Settlement Circular and other changes to planning assumptions which result in a net reduction in forecast cost of £9.643m, reducing the 2023/2024 budget gap to £28.254m, as outlined in Appendices 1 and 2 to the report; (3) advising that, to help manage the budget gap in 2023/2024, action totalling £17.210m was proposed through a combination of base budget adjustments and the use of one off resources reducing the gap to £11.044m and as a result the gap for 2024/2025 and 2025/2026 was now estimated at £30.848m and £16.090m respectively; (4) enclosing, in Appendix 2 to the report, the updated financial outlook across the three year period; (5) attaching, in Appendix 3 to the report, details of the base budget adjustments; (6) setting out, in Appendix 4 to the report, the financial projections for the Change Management Fund, and (7) proposing (a) that the general reserve fund of £8m, as set out by the Chief Officer (Finance), be agreed, and (b) the continuation of the treatment of volume discount. Councillor Logue, seconded by Councillor Fisher, moved that the Council increase the level of Council Tax for 2023/2024 by 5%, which was agreed. Councillor Logue, seconded by Councillor Fisher, moved the following budget motion. 1. Whilst noting the update provided by the Chief Officer (Finance) in respect of the Local Government Financial Settlement for 2023/24, we reluctantly accept the wholly inadequate level of funding provided. 2. We endorse COSLA’s Save Our Services campaign asking for Local Government to be fairly funded and empowered to deliver services. We also acknowledge that COSLA advises this settlement represents a £71 million cash increase for the whole of local government after accounting for 2023/24 policy commitments. 3. The Resource Spending Review published in May 2022 set out the anticipated future Scottish Budget spend on Local Government up to and including 2025/26 as being maintained. However, once again the Scottish Government have provided a one-year financial settlement and we endorse COSLA’s call for multi-year settlements as a necessity to properly plan and deliver local services. 4. We note that after accounting for ring fenced funding, funding for new commitments and other directed expenditure, North Lanarkshire Council received a cash increase of £6.143 million (0.87%) to core funding within the Local Government Finance Settlement. 5. Therefore, the Council faces a budget gap of £28.254 million in 2023/24 and further gaps in 2024/25 and 2025/26 of £20.620 million and £16.300 million, respectively, a total of £65.174 million across the three-year planning period.
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 27 6. Whilst this administration remains fully committed to the key principle of the Revenue Resources Budget Strategy to develop budgets covering a three year period, setting a single year budget for 2023/24 is the focus here today. 7. Agree the significant action totalling £17.210 million, already taken by this Council to manage the gap in 2023/24 as outlined Appendix 1 of the Revenue Budget 2023/24 to 2025/26 and Council Tax 2023/24 Report. This includes £7.912m of Base Budget Adjustments over the three-year period, £6.510 million of which will be realised in 2023/24. It also reflects a prudent use of unallocated resources of £10.700 million to support the estimated budget burden in respect of hikes in energy costs, until there is greater certainty over the recurring financial implications for this Council. Such action reduces the budget gap in 2023/24 to £11.044 million. 8. Confirm that Council Tax rates will increase in 2023/24 by 5%, taking a Band D charge to £1,320.78, and recognise that this is estimated to generate additional revenue of £8.000 million, in perpetuity. 9. Reiterate our previous commitment to Community Investment by continuing to set aside the amount equivalent to a 1% Council Tax increase from 2023/24 to support Community Investment, leaving £6.400 million to help manage the 2023/24 budget gap. This brings the budget gap to £4.644 million. 10. Agree savings of £7.614 million which are detailed in Appendix 1. 11. However, in recognition of feedback from our Communities, we agree recurring investment of £2.970 million to; £m • Active & Creative Communities 2.000 Reverse previous savings linked to former Culture and Leisure Services • Environmental Improvement 0.970 Investment in greenspace maintenance across North Lanarkshire’s communities. This will see improved maintenance of cemeteries, reintroduction of grass cutting on verges for A and B Category roads at 40mph and above, enhanced roundabout maintenance and an effective enforcement deterrent from littering, fly tipping and dog fouling. 12. Note that this administration has ensured that Culture and Leisure functions and facilities are saved from closure in financial year 2023/24. However, given the scale of challenges that lie ahead it is recognised that a further review of additional savings options will be required to address significant forecast budget gaps in 2024/25 and 2025/26. Because of this, the Chief Executive should arrange for a full review of facilities to be conducted, the outcome of which should be reported to the Policy & Strategy Committee in due course. 13. Instruct Chief Officer (Education) to immediately commence statutory and non-statutory consultation on the proposal to move distance thresholds for mainstream home to school transport to statutory limits with updates to be reported through future Education Children and Families Committees. 14. Note that the Communities Committee has agreed it will receive a report on the Grant Award Programme, levels of funding and award criteria for voluntary organisations in the third committee cycle of 2023. 15. Note that a detailed report will be presented to Education and Families Committee by June 2023 in respect of ECF10, which will identify current uptake levels and options for alternative delivery
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 28 of the programme reflecting additional funding anticipated from Scottish Government to provide meals during school holidays. 16. Note that this administration has instructed the Chief Executive to consider the process to be undertaken to manage the significant budgetary challenges anticipated from 2024/25, to ensure the Council remains financially sustainable. 17. Note that this administration puts jobs first and has therefore acted to ensure jobs are protected for as long as possible. 18. After providing for the cost of investment a balanced budget 2023/24 is proposed as summarised in Appendix 2. 19. Due to the phasing and the time required to implement the savings detailed in Appendix 1 it is necessary to a agree further use of unallocated balances totalling £10.375 million over financial years 2023/24 and 2024/25 (£6.975 million in 2023/24 & £3.400 million in 2024/25). 20. Approve a Revenue Budget for 2023/24 which recognises available resources of £978.624 million after accounting for the additional Council Tax income of £6.400 million and further use of one-off resources of £6.975 million in 2023/24. Reflecting the action already taken by this Council, the cost of investment and savings outlined, the total expenditure budget is estimated at £978.624 million, resulting in a balanced budget. 21. Agree the level of general fund contingency reserve at £8.000 million as advised by the Chief Officer (Finance). 22. Agree the continuation of the historic practice in respect of the volume discount as set out within section 6 of the Revenue Budget 2023/24 to 2025/26 and Council Tax 2023/24 Report. 23. Recognise that in line with requirements, a total of £5.045 million additional funding will be passed to the IJB for delegated services. 24. Agree that in the event additional undirected funding is made available for 2023/24, it will be held in reserves to mitigate against financial risks and uncertainties, and to support future budget pressures.
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 29 Appendix 1 2023/24 £m 2024/25 £m 2025/26 £m Total £m Review of Early Learning & Childcare; Single Status Employee Resources 0.000 2.000 1.000 3.000 To align staffing resources to previously approved model Review of Devolved School Management 0.639 0.375 0.000 1.014 Review of education resources including budget allocations to schools through the Devolved School Management (DSM) scheme. This review will be supported by DSM working group and in dialogue with Education senior managers, and will give consideration to utilisation of resources and the outcomes for children and young people, whilst remaining mindful of the impact on teacher numbers School Transport Move distance threshold to statutory limits 0.000 1.200 2.400 3.600 Total Savings 0.639 3.575 3.400 7.614 Savings Options Appendix 2 £m Budget Shortfall per the Budget Report 11.044 Managed by; 5% Increase in Council Tax 6.400 Revenue Savings 7.614 Surplus/ (Shortfall) 2.970 New Investment (2.970) Net Budget 0.000
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 30 Councillor Hume, seconded by Councillor Carragher, moved that the Council agree the following budget proposal. The North Lanarkshire SNP Group accept the figures in the latest financial outlook provided by the Finance Team, which covers the figures from the Medium Term Financial Plan and subsequent updates. In keeping with the advice received, we have provided a one year balanced budget that identified future years savings will be temporarily met by reserves, totalling £8.053m (£6.410m in 23/24 and £1.643m in 24/25). This confirmation will also allow Officers to complete the necessary planning to allow the changes to be delivered. Our primary goals in choosing our Budget Options were to ensure: • No NLC colleagues faced compulsory redundancy in 23/24 • minimise any impact on frontline services To that end: • We have accepted the Base Budget Adjustment Savings proposals which are documented in Appendix 3 of the Revenue Budget 2023/24 to 2025/26 and Council Tax 2023/24 report on today’s agenda. We have utilised the year 2 and year 3 savings of £0.682 to contribute to the 23/24 budget gap, thus leaving a budget gap of £31.320m and £16.300m in financial years 24/25 and 25/26 respectively. • We have chosen savings options that balance the Budget and also cover the required £2.000m Active and Creative Communities savings that has not been realised in previous years. Appendix 3 £m £m Expenditure Budget 2023/24 per Budget Report 982.803 Advanced Action; Base Budget Adjustments (6.510) 2023/24 Savings Deliverable (0.639) 2023/24 New Investment 2.970 Revised Net Expenditure 2023/24 978.624 Available Resources: Resources Budget 2023/24 per Budget Report 954.549 5% Council Tax increase 2023/24 6.400 Use of balances per budget report 10.700 Further Use of Balances in 2023/24 to manage timing of savings 6.975 2023/24 Available Resources 978.624 Recurring Budget Shortfall/ (Excess) 0.000 Summary Budget for 2023/24
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 31 • We felt it was more beneficial to our local Communities to minimise the savings to ensure a balanced budget rather than take more substantial savings and propose additional spending options. • We welcome the financial flexibilities made available by the Scottish Government, which allowed alterations to accounting for school PPP Contracts providing scope for expenditure in this and future years. • We propose an increase in Council Tax of 5% which will mean an increase for Band D of £1.21 per week. • We would like to confirm our commitment to utilise 1% of Council Tax increases to support the Community Investment Fund. • The SNP Group notes that there was an increase in the Scottish Government funding this year and can confirm that for a number of years, the overall funding North Lanarkshire has received has increased annually. 23/24 £000 24/25 £000 25/26 £000 Total £000 Budget Shortfall MTFP 37,897 20,620 16,300 74,817 Reversal of 1.25% NI increase (3,500) (3,500) Increase in General Revenue Grant (6,143) (6,143) Revised Budget Gap 28,254 20,620 16,300 65,174 Agreed Action Base Budget Adjustments & Operational decisions 6,510 472 210 7,192 Use of balances - energy costs 10700 -10700 0 Revised Shortfall / (Excess Resource) 11,044 30,848 16,090 57,982 Solutions: Council Tax @ 5% (6,400) Remaining gap to be managed 4,644 30,848 16,090 51,582 Chosen Savings options - SNP Group: 23/24 24/25 25/26 Total £000 £000 £000 £000 EC12 Removal of growth Budget 234 0 0 234 EC19 Brown bin charges 0 1428 0 1428 ECF01 Single Status Employee costs re ELC operating staff 0 2000 1000 3000 ECF11 EC&F clerical review 0 867 433 1300 Total Savings Options 234 4295 1433 5962 Total savings options 5,962
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 32 Excess savings over 23/24 Budget Gap 1,318 Base Budget Adjustments for future years savings 682 Overall savings 2,000 Offset ACC outstanding saving 2,000 Budget/ Savings options gap 0 Councillor Watson, seconded by Councillor Currie, moved the following budget motion. 1. Budget adjustments Service area Saving ref. No Summary Savings Proposal Saving Description 23/24 £000 24/25 £000 25/26 £000 Total £000 Education Children & Families ECF01 Early Years Establishments Re-align the operating model for Early Learning and Childcare employees 0 2,000 1,000 3,000 ECF03 HQ Service Delivery Reduction in transport and plant 0 1,200 2,400 3,600 ECF09 Music Tuition Review the operational model for the Instrumental Music Service 95 45 0 140 ECF13 Schools Review of Devolved School Management whilst being mindful of teacher numbers 664 332 0 996 Total Education Children & Families 7,736 2. Areas for growth Service area Summary Savings Proposal Growth Description Total £000 Enterprise & Communities Environmental enforcement Increase environmental enforcement Wardens 137 Anti-Social Behaviour Extend assistance to all residential properties 111 Grass cutting Re-establish / enhance grass cutting on Council land (including Cemeteries and roads and verges adjacent to roads 794
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 33 with a speed limit of 40mph and above) Coronation Funds to support public participation in the Coronation 50 Offset outstanding saving Reversal of previous savings linked to Culture and Leisure 2,000 Total of additional budget items 3,092 3. Summary Narrative Summary 23/24 (000) Identified savings 7,736 Gap -4,644 Additional items -3,092 Balance 0 Assumption Council tax rise 5% =£6,400 Note: This proposal requires agreement to use one-off resources of £6.977m in year one and £10.377m over the three-year period. This allows time to implement the savings. Councillor Roarty, seconded by Councillor Patton, moved that the meeting be adjourned for one hour. Councillor Carragher, seconded by Councillor Sullivan, moved as an amendment, that the meeting be not adjourned. Thereon, in terms of Standing Order 39, the vote was taken by calling the roll. On the roll being called 35 Members voted for the Amendment, as follows:- Councillors Ashraf, Ballinger, Barclay, Baudo, Brennan, Cairns, Carragher, Crichton, Di-Mascio, Fotheringham, Goldie, Hughes, Hume, Jarvie, D. Johnston, T. Johnston, Keltie, Larson, Lennon, Linden, MacGregor, Magowan, Masterton, McCluskey, McManus, Mitchell, Robb, Robinson, Smith, A. Stubbs, L. Stubbs, Sullivan, Thomas, Toner and Williams. 42 Members voted for the Motion, as follows:- Councillors Beveridge, Boyd, Brannan-McVey, Burgess, Bustard, Campbell, Costello, M. Coyle, S. Coyle, Currie, Docherty, Duffy, Duffy-Lawson, Dunbar, Fisher, Jones, Kelly, Khan, Leckie, Logue, Loughran, McBride, B. McCulloch, M. McCulloch, McDade, McKay, McKendrick, McLaren, McNally, McPake, McPhilemy, McVey, Nolan, Patton, Reddin, Roarty, Shevlin, Shields, Stevenson, Watson, Wilson and Woods. 35 Members having voted for the Amendment and 42 Members having voted for the Motion, the Motion was accordingly declared carried. The meeting was adjourned for one hour. The meeting re-convened at 3.50 pm. Councillor Watson withdrew the Conservative Group budget motion. Councillor Logue, seconded by Councillor Watson, moved a composite adjustment to the Labour Group budget motion.
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 34 Composite Adjustment to Labour Group Motion 2023/24 £m Anti-Social Behaviour; Extend assistance to all residential properties 0.111 Public Holiday 8 May 2023; Provide funding to support community activity in respect of the celebration of the Coronation of King Charles III 0.050 Additional Devolved School Management Saving (0.161) Net Adjustment 0.000 Thereon, in terms of Standing Order 39, the vote was taken by calling the roll. On the roll being called between the Motion (Labour Group Budget Proposal as amended by the Composite Adjustment to Labour Group Budget Proposal) and the Amendment (SNP Group Budget Proposal):- 33 Members voted for the Amendment, as follows:- Councillors Ashraf, Ballinger, Barclay, Baudo, Brennan, Cairns, Carragher, Crichton, Di-Mascio, Fotheringham, Goldie, Hughes, Hume, Jarvie, D. Johnston, T. Johnston, Keltie, Larson, Linden, MacGregor, Magowan, Masterton, McCluskey, McManus, Mitchell, Robb, Robinson, Smith, A. Stubbs, L. Stubbs, Sullivan, Thomas and Toner. 40 Members voted for the Motion, as follows:- Councillors Beveridge, Boyd, Brannan-McVey, Burgess, Bustard, Campbell, Costello, M. Coyle, S. Coyle, Currie, Docherty, Duffy, Duffy-Lawson, Dunbar, Fisher, Jones, Kelly, Khan, Leckie, Logue, Loughran, McBride, B. McCulloch, M. McCulloch, McDade, McKay, McLaren, McNally, McPake, McPhilemy, McVey, Nolan, Patton, Reddin, Roarty, Shevlin, Stevenson, Watson, Wilson and Woods. Councillors Lennon, McKendrick and Williams abstained. 33 Members having voted for the Amendment, 40 Members having voted for the Motion and 3 Members having abstained, the Motion was accordingly declared carried. Decided: that, subject to the composite adjustment to the Labour Group Motion, the Council agreed the following:- 1. that, whilst noting the update provided by the Chief Officer (Finance) in respect of the Local Government Financial Settlement for 2023/24, the Council reluctantly accepts the wholly inadequate level of funding provided. 2. that COSLA’s Save Our Services campaign asking for Local Government to be fairly funded and empowered to deliver services be endorsed and it be acknowledged that COSLA advises this settlement represents a £71 million cash increase for the whole of Local Government after accounting for 2023/24 policy commitments.
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 35 3. that it be noted that the Resource Spending Review published in May 2022 set out the anticipated future Scottish Budget spend on Local Government up to and including 2025/26 as being maintained, and that COSLA’s call for multi-year settlements as a necessity to properly plan and deliver local services be endorsed. 4. that it be noted that after accounting for ring fenced funding, funding for new commitments and other directed expenditure, the Council received a cash increase of £6.143 million (0.87%) to core funding within the Local Government Finance Settlement. 5. that it be noted that the Council faces a budget gap of £28.254 million in 2023/24 and further gaps in 2024/25 and 2025/26 of £20.620 million and £16.300 million, respectively, a total of £65.174 million across the three-year planning period. 6. that it be noted that the administration remains fully committed to the key principle of the Revenue Resources Budget Strategy to develop budgets covering a three year period, setting a single year budget for 2023/24 is the focus here today. 7. that the significant action totalling £17.210 million, already taken by this Council to manage the gap in 2023/24 as outlined Appendix 1 of the Revenue Budget 2023/24 to 2025/26 and Council Tax 2023/24 Report be agreed which includes £7.912m of Base Budget Adjustments over the three-year period, £6.510 million of which will be realised in 2023/24 and reflects a prudent use of unallocated resources of £10.700 million to support the estimated budget burden in respect of hikes in energy costs, until there is greater certainty over the recurring financial implications for this Council which reduces the budget gap in 2023/24 to £11.044 million. 8. that Council Tax rates for 2023/24 be increased by 5%, taking a Band D charge to £1,320.78, estimated to generate additional revenue of £8.000 million, in perpetuity. 9. that the previous commitment to Community Investment by continuing to set aside the amount equivalent to a 1% Council Tax increase from 2023/24 to support Community Investment, leaving £6.400 million to help manage the 2023/24 budget gap be reiterated bringing the budget gap to £4.644 million. 10. that savings of £7.614 million as set out in Appendix 1 be agreed. 11. that, in recognition of feedback from communities, recurring investment of £2.970 million be provided to; £m • Active & Creative Communities 2.000 Reverse previous savings linked to former Culture and Leisure Services • Environmental Improvement 0.970 Investment in greenspace maintenance across North Lanarkshire’s communities. This will see improved maintenance of cemeteries, reintroduction of grass cutting on verges for A and B Category roads at 40mph and above, enhanced roundabout maintenance and an effective enforcement deterrent from littering, fly tipping and dog fouling.
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SPECIAL NORTH LANARKSHIRE COUNCIL - 23 FEBRUARY 2023 36 12. that it be noted that the administration has ensured that Culture and Leisure functions and facilities are saved from closure in financial year 2023/24, but given the scale of challenges that lie ahead it is recognised that a further review of additional savings options will be required to address significant forecast budget gaps in 2024/25 and 2025/26 and the Chief Executive shall arrange for a full review of facilities to be undertaken, the outcome of which should be reported to the Policy and Strategy Committee in due course. 13. that the Chief Officer (Education) immediately commence statutory and non- statutory consultation on the proposal to move distance thresholds for mainstream home to school transport to statutory limits with updates to be reported through future Education, Children and Families Committee. 14. that it be noted that the Communities Committee has agreed it will receive a report on the Grant Award Programme, levels of funding and award criteria for voluntary organisations in the third committee cycle of 2023. 15. that a detailed report be presented to the Education, Children and Families Committee by June 2023 in respect of ECF10, which will identify current uptake levels and options for alternative delivery of the programme reflecting additional funding anticipated from Scottish Government to provide meals during school holidays. 16. that it be noted that the administration has instructed the Chief Executive to consider the process to be undertaken to manage the significant budgetary challenges anticipated from 2024/25, to ensure the Council remains financially sustainable. 17. that it be noted that the administration puts jobs first and has therefore acted to ensure jobs are protected for as long as possible. 18. that it be noted that after providing for the cost of investment, a balanced budget for 2023/24 was proposed as set out in Appendix 2. 19. that, due to the phasing and the time required to implement the savings detailed in Appendix 1, further use of unallocated balances totalling £10.375 million over financial years 2023/24 and 2024/25 (£6.975 million in 2023/24 & £3.400 million in 2024/25) be agreed. 20. that a Revenue Budget for 2023/24 which recognises available resources of £978.624 million after accounting for the additional Council Tax income of £6.400 million and further use of one-off resources of £6.975 million in 2023/24 be approved, reflecting the action already taken by this Council, the cost of investment and savings outlined, the total expenditure budget is estimated at £978.624 million, resulting in a balanced budget. 21. that the level of general fund contingency reserve at £8.000 million be agreed. 22. that the continuation of the historic practice in respect of the volume discount, as set out within section 6 of the Revenue Budget 2023/24 to 2025/26, and Council Tax 2023/24 Report, be agreed. 23. that in line with requirements, a total of £5.045 million additional funding be passed to the IJB for delegated services. 24. that, in the event additional undirected funding is made available for 2023/24, it will be held in reserves to mitigate against financial risks and uncertainties, and to support future budget pressures.