Agenda Document Pack - Finance and Resources Committee - 15/06/2022
Perth and Kinross Council · 15 June 2022
Back to Finance and Resources Committee — 15 June 2022 and its agenda
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Securing the future… • Improving services • Enhancing quality of life • Making the best use of public resources Council Building 2 High Street Perth PH1 5PH 09/06/2022 A hybrid meeting of the Finance and Resources Committee will be held in the Council Chamber on Wednesday, 15 June 2022 at 14:00. If you have any queries please contact Committee Services on (01738) 475000 or email Committee@pkc.gov.uk. THOMAS GLEN Chief Executive Those attending the meeting are requested to ensure that all notifications are silent on their device and other devices are in silent mode. Please note that the meeting will be broadcast online and recorded. The recording will be publicly available on the Council’s website following the meeting. Members: Councillor Stewart Donaldson (Convener) Councillor Grant Laing (Vice-Convener) Councillor Chris Ahern Councillor Alasdair Bailey Councillor Peter Barrett Councillor Andy Chan Councillor Dave Cuthbert Councillor Eric Drysdale Councillor John Duff Councillor Angus Forbes Councillor Xander McDade Councillor Tom McEwan Councillor Andrew Parrott Councillor John Rebbeck Councillor Caroline Shiers Councillor Colin Stewart Page 1 of 118
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Finance and Resources Committee Wednesday, 15 June 2022 AGENDA MEMBERS ARE REMINDED OF THEIR OBLIGATION TO DECLARE ANY FINANCIAL OR NON-FINANCIAL INTEREST WHICH THEY MAY HAVE IN ANY ITEM ON THIS AGENDA IN ACCORDANCE WITH THE COUNCILLORS’ CODE OF CONDUCT. 1 WELCOME AND APOLOGIES 2 DECLARATIONS OF INTEREST 3 MINUTE OF MEETING OF STRATEGIC POLICY AND RESOURCES COMMITTEE OF 20 APRIL 2022 FOR APPROVAL (copy herewith) 5 - 10 4 APPOINTMENT OF MEMBERS TO THE EXECUTIVE SUB- COMMITTEE OF FINANCE AND RESOURCES COMMITTEE In terms of the Council's Scheme of Administration, the Committee is asked to appoint five members of the Committee. 5 APPOINTMENT OF MEMBERS TO THE PROVOSTS SUB- COMMITTEE In terms of the Council's Scheme of Administration, the Committee is asked to appoint four members of the Committee and the Convener of the Council. 6 TREASURY ACTIVITY AND COMPLIANCE REPORT 2021/22 QUARTER 4 Report by Head of Finance (copy herewith 22/122) 11 - 30 7 AUTHORITY TO WRITE OFF DEBTS AND OBSOLETE STOCK Report by Head of Finance (copy herewith 22/123) 31 - 50 8 CORPORATE AND DEMOCRATIC SERVICES JOINT BUSINESS MANAGEMENT AND IMPROVEMENT PLAN 2022/23 AND SERVICE ANNUAL PERFORMANCE REPORT 2021/22 Report by Chief Operating Officer (copy herewith 22/124) 51 - 90 9 LOCH LEVEN GUIDANCE Report by Head of Planning & Development (copy herewith 22/125) 91 - 118 Page 3 of 118
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STRATEGIC POLICY AND RESOURCES COMMITTEE Minute of meeting of the Strategic Policy and Resources Committee held virtually on Wednesday 20 April 2022 at 9.30am. Present: Councillors J Duff, M Lyle, C Ahern, A Bailey, S Donaldson, E Drysdale, D Illingworth (substituting for A Forbes), G Laing, R McCall, T McEwan, Councillors A Parrott, C Shiers, L Simpson (substituting for P Barrett), C Stewart and W Wilson. In Attendance: T Glen, Chief Executive; B Renton, Executive Director (Communities), C Brien, M Butterworth, S Coyle, S Crawford, F Crofts, C France, J Dick, L Haxton, C Mailer, S Merone, B Murray, F Robertson, K Smith, D Stokoe (all Communities); S Devlin, Executive Director (Education and Children’s Services); G Boland, Education and Children’s Services; L Brady, S Hendry, C Irons, P Johnstone, S Mackenzie, S Walker, L Simpson, A Brown, K Molley, A Taylor, B Parker and A McMeekin (all Corporate and Democratic Services). Apologies: Provost D Melloy and Councillors A Forbes and P Barrett. Councillor J Duff, Convener, Presiding. 1. WELCOME AND APOLOGIES The Convener welcomed all those present to the meeting. Apologies and substitutions were noted as above. 2. DECLARATIONS OF INTEREST There were no Declarations of Interest in terms of the Councillors’ Code of Conduct. 3. MINUTES OF PREVIOUS MEETINGS (i) Strategic Policy and Resources Committee The minute of meeting of the Strategic Policy and Resources Committee of 2 February 2022 was submitted and approved. (ii) Executive Sub-Committee of Strategic Policy and Resources The Minute of meeting of the Executive sub-Committee of the Strategic Policy and Resources Committee of 19 January 2022 was submitted and noted. (iii) Property Sub Committee The minute of meeting of the Property Sub-Committee of 10 January 2022 was submitted and noted. 3 Page 5 of 118
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(iv) Appeal Sub-Committee The minutes of meetings of the Appeal Sub-Committee of 12 January 2022 and 24 March 2022 was submitted and noted. (v) Employees Joint Consultative Committee The minute of meeting of the Employees Joint Consultative Committee of 6 December 2021 was submitted and noted. (vi) Perth and Kinross Integration Joint Board The minute of meeting of the Perth and Kinross Integration Joint Board of 1 December 2021 was submitted and noted. 4. REVENUE BUDGET 2021/22 – UPDATE NO.5 There was submitted a report by the Head of Finance (22/87) providing (1) an update on progress with the 2021/22 General Fund Revenue Budget based upon the January 2022 ledger and updated for any subsequent known material movements and (2) the projected financial position of the Housing Revenue Account. Resolved: (i) The contents of Report 22/87, be noted; (ii) The projected outturn for General Fund Services set out in Section 4 and Appendix 1 and 2, be noted. (iii) The projected outturn for Corporate Budgets set out in Section 5, be noted. (iv) The Health & Social Care projected outturn, which is summarised in section 5 and Appendix 3,be noted. (v) The projected outturn for the Housing Revenue Account which is summarised in Section 6 and Appendix, be noted. (vi) The adjustments to the 2021/22 Management Revenue Budget detailed in Appendices 1, 2, 4 and 5 and Section 7, 8 and 9,be approved. (vii) The adjustments to the 2022/23 Management Revenue Budget detailed in Appendix 6 and Section 10, be approved. (viii) The 2023/24 structural deficit of £10.015 million that will require to be addressed for 1 April 2023, be noted. (ix) £25,000 be approved for a project feasibility/consultancy study for the consideration of a safe pedestrian/cycle route from Scone to Perth City Centre subject to due diligence. 5. COMPOSITE CAPITAL BUDGET 2021/28 & HOUSING INVESTMENT PROGRAMME 2021/26 – MONITORING REPORT No.4 There was submitted a report by the Head of Finance (22/88), (1) providing a summary position to date for the 6-year Composite Capital Delivery Page 6 of 118
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Programme for 2022/23 to 2027/28 and the 5-year Housing Investment Programme 2021/22 to 2025/26, and (2) seeking approval for adjustments to the budgets. Resolved: (i) The contents of Report 22/88, be noted; (ii) The proposed budget adjustments to the seven-year Composite Capital Budget 2021/22 to 2027/28 as set out in Sections 3 and 4 of the report, and summarised at Appendices I and II, be approved. (iii) The proposed budget adjustments to the Housing Investment Programme Budget 2021/22 to 2025/26 set out in Section 5 of the report, and summarised at Appendix III, be approved. There was a comfort break and the meeting resumed at 11.25am. 6. COMMUNITY INVESTMENT FUND 2021/22 There was submitted a report by the Head of Culture and Community Services (22/89) providing an update on the Community Investment Funding grants awarded to community groups by ward panels for the limited second round of funding 2021/22. Resolved: (i) The spend for round two of Community Investment Funding 2021/22, be noted. (ii) That a report will be brought to a future meeting of this Committee, outlining proposals for 2022/23 Community Investment Funding. 7. BUSINESS GATEWAY TAYSIDE SERVICE There was submitted a report by the Head of Planning and Development (22/90) providing an overview of the Business Gateway Tayside service together with its performance and contracting arrangements. THERE FOLLOWED A RECESS AND THE MEETING RECONVENED AT 12.25PM. Motion (Councillors Duff and Lyle) (i) The excellent performance against targets of the service delivered despite the challenging operating environment, be noted. (ii) That the Scrutiny Committee reviewed the Business Gateway services’ performance and governance arrangements at its meeting on 29 November 2021, be noted. (iii) Plans for revised governance arrangements in line with those set out in this report, be approved. Page 7 of 118
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(iv) It be remitted to the Executive Director (Communities) to develop and conclude a Memorandum of Understanding (MoU) with Dundee City Council and Angus Council that will underpin the revised governance arrangements. (v) The Head of Legal and Governance be instructed to examine the memorandum of Understanding on dispute resolution and consider the risks involved and report back to this committee at the earliest opportunity. Amendment (Councillors Stewart and Bailey) Notes that the £450,000 top-slicing of the Business Gateway has not been returned by Dundee City Council and instructs officers to instigate the dispute clause of the Memorandum of Understanding in order to pursue repayment of these public funds so that they can be properly directed towards supporting business across Tayside and to report the original redirection of funds to Audit Scotland for further investigation. In terms of Standing Order 58 a Roll Call vote was taken. 8 members voted for the Motion as follows: Councillors Ahern, Duff, Illingworth, Lyle McCall Shiers, Simpson and Wilson. 7 members voted for the Amendment as follows: Councillors Bailey, Donaldson, Drysdale, Laing, McEwan, Parrott and Stewart Resolved: In accordance with the Motion. 8. PLANNING FOR NATURE GUIDANCE There was submitted a report by the Head of Planning and Development (22/91) (1) summarising the comments received during the consultation on the non-statutory Planning for Nature guidance published in 2021 and (2) seeking approval to finalise and adopt the guidance document to support the Local development Plan as non-statutory Supplementary Guidance. Resolved: The Planning for Nature guidance to support the implementation of Policy 41 of the Local Development Plan, be approved. 9. PLANNING FEES CHARTER There was submitted a report by the Head of Planning and Development (22/92) presenting the Planning Fees Charter, noting the fee increases set by Scottish Government and seeking agreement to reducing planning application fees for specific applications to apply a surcharge to retrospective Page 8 of 118
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applications and to revise some of the discretionary charges previously agreed. Resolved: The Planning Fees Charter attached as appendix 1 to report 22/92, be approved. 10. EMPLOYEES CODE OF CONDUCT There was submitted a report by the Corporate Human Resources Manager (22/93) outlining an update to the Employee Code of Conduct to incorporate a protocol for joint working with the third sector and the Council. Resolved: The refreshed Code of Conduct attached as appendix 2 to report 22/93, be approved. 11. VALEDICTORY Prior to the Local Government Elections on 5 May, the Convener thanked all members for their contribution to the committee during this term of the Council. The Convener also referred to the upcoming retiral of Charlotte Irons, Committee Officer who had been clerk to the Committee for a number of years. Members thanked Charlotte for her support and wished her well in her retirement. ~~~~~ Page 9 of 118
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PERTH AND KINROSS COUNCIL Finance & Resources Committee 15 June 2022 TREASURY ACTIVITY AND COMPLIANCE REPORT 2021/22 QUARTER 4 Report by the Head of Finance (Report No 22/122) 1. PURPOSE 1.1 The purpose of this report is to update the Committee on the Treasury Activity for the quarter ending 31 March 2022 and to report on compliance with the Council’s Treasury Management Policy Statement (TMPS); Investment Strategy and Prudential Indicators. This report covers the fourth quarter of the financial year for the period 1 January to 31 March 2022. 2. RECOMMENDATIONS 2.1 It is recommended that the Committee notes the content of this report, which is submitted in accordance with the Council’s approved Treasury Management Practices. 3. ECONOMIC BACKGROUND 3.1 The Bank of England’s Monetary Policy Committee (MPC) increased the UK Bank Base Rate from 0.25% to 0.50% at its meeting on 4 February 2022. They also commenced reducing the Quantitative Easing programme. On the 17 March 2022, the MPC increased the base rate further to 0.75. The increases in the Bank Base Rate were mainly in response to rising inflation pressures, including from increased energy bills and food costs, as well as the economic impact of the conflict in Ukraine. UK Gross Domestic Product (GDP) increased by 0.8% over the quarter to March 2022, however the rate of growth has slowed in recent months. 3.2 At its Meeting in May 2022, the MPC increased the Bank Rate further to 1%. This was in response to global inflationary pressures intensifying and the deterioration in the outlook for economic growth, particularly following Russia’s invasion of Ukraine and Covid-19 restrictions being reintroduced in China affecting supply chains. Consequently, the MPC’s expectations is for UK inflation to exceed 10% by the end of the current financial year. Based on the Bank of England’s most recent forecast, it is anticipated that there will be further increases in the Bank Rate to around 2.5% by mid-2023, with inflation returning to its 2% target level by 2024. The increase in the outlook for inflation has also resulted in long-term yields rising significantly. 6 Page 11 of 118
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3.3 Internationally, economic data from both Europe and the US similarly also indicated rising inflation as a result of the invasion of Ukraine and rising energy costs. 3.4 The Public Works Loan Board’s (PWLB) certainty fixed interest rates for the quarter, which are based on yields on UK gilts, are shown in the graph at Appendix I. PWLB borrowing rates showed significant volatility over the quarter due to the conflict in Ukraine and inflationary pressures. All durations of rates increased over the quarter due to the impact of the two base rate increases and increasing inflationary expectations. 4. TREASURY ACTIVITY 4.1 A summary of the Council’s treasury position and transactions is shown at Appendix II. The main activities are detailed below. 4.2 During the quarter there was no new long-term PWLB borrowing undertaken, whilst there was the repayment of one maturing PWLB fixed-rate loan of £7.5 million at 1.40% which had been borrowed for 5 years. 4.3 Over the quarter the Council’s total long-term debt decreased from £618.8 million at an average interest rate of 2.55% to £611.3 million at an average interest rate of 2.56%. There was one short-term loan borrowed in the quarter to manage daily cashflows, for £3 million at 0.08% for 2 weeks, and which was repaid by the end of the quarter. 4.4 Common Good and Charitable Fund balances held on fixed deposit within the Loans Fund remained at £2.169 million, with the average interest rate paid increasing to 1.05%, in line with the approved Treasury Policy. Funds held from associated bodies and organisations decreased from £3.368 million to £2.983 million over the quarter, in line with their own cash flow requirements, whilst the average rate paid on these funds increased from 0.18% to 0.20%, in accordance with the approved Temporary Loan policy. 4.5 Short term cashflow surpluses are invested in a mixture of fixed term deposits, instant access accounts, notice accounts and money market funds. All investments were made in accordance with the approved Investment Strategy and permitted Investments. Fixed Term Deposits 4.6 Cashflow surpluses which arise during the year and which are not immediately required are generally invested in fixed term deposits for periods of up to 12 months, or up to 3 years where forecast cashflow requirements allow. Page 12 of 118
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4.7 There were 18 fixed rate deposits made in the quarter (totalling £117 million) for an average amount of £6.5million each at an average interest rate of 1.26% and for an average term of 230 days. Fixed deposit activity increased over the quarter following the advance PWLB borrowing that was undertaken in the previous quarter. With interest rate expectations increasing, many deposits were made for shorter durations, with a view to re-investing as rates increase. Interest rates improved with the two increases in the bank base rate and the expectation of further increases to follow. Subsequently, with the increase in interest rates, fixed deposits for shorter periods (1 to 6 months) are now giving higher returns and the deposits undertaken in the quarter will generate over £1m in interest when they reach maturity. Investments for Daily Cashflow Requirements 4.8 Cashflow surpluses which are required for more immediate needs are invested in the Council’s instant access, notice deposit accounts and money market funds. These investment transactions in the quarter can be summarised as follows: • The daily average amount of such funds over the quarter decreased from £10.8million in the last quarter to £5.7 million in the current quarter. • The average interest rate achieved on these accounts over the quarter increased from 0.15% to 0.27% reflecting the increase in base rate. • Due to their relatively low rates, activity in notice accounts mostly related to giving notice on existing balances, to be re-invested in alternative investments. • Instant access facilities were used over the quarter to meet day-to-day cashflow requirements. However, the interest rate on such facilities remains low at 0.01%. 4.9 The total amount of investments outstanding at 31 March 2022 was £252 million compared to £260.5 million at the end of the previous quarter in December. The overall average rate of interest on the investments outstanding increased from 0.38% at the end of the previous quarter to 0.88% at the end of the current quarter. This increase reflects the increases in base rates over the quarter. 4.10 Total investment income generated on the investments undertaken during the quarter is £1,105,813 (£356,692 in the quarter ended 31 December 2021). This measure reflects the total return on the investment activity undertaken in each quarter and is significantly higher in the current quarter compared to last quarter as more funds were available to invest and interest rates had improved. 4.11 All of the above investment activities are consistent with the Council’s current investment strategy and cashflow requirements. Page 13 of 118
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5. COMPLIANCE 5.1 For the quarter ending 31 March 2022, there were no breaches in compliance with the Council’s approved Treasury Management Policy Statement, Treasury Management Practices (TMP’s) or lending limits as detailed in TMP 4 (Approved Instruments, Methods & Techniques). 5.2 Appendix III shows the list of approved counterparties, based on the Council’s current lending policy, as at May 2022. 5.3 For the quarter ending 31 March 2022 the average closing cleared bank balance was £34,368.00 in credit. 6. INVESTMENT STRATEGY COMPLIANCE AND PERFORMANCE 6.1 The Treasury Investment Strategy for 2021/22 was approved by the Council at its meeting on 31 March 2021 (report 21/42 refers). 6.2 In the current quarter the level of Council investments peaked at £284.353 million on 17 January 2022 and reduced to £252.035 million by the end of the quarter. The average daily investment balance over the quarter was £262.917 million, which increased from an average of £233.232 million in the previous quarter and £230.238 million in the same quarter of last year. 6.3 As the Council undertook long-term borrowing of £90 million in the previous quarter the investment balances have increased, however, these will gradually reduce (subject to daily fluctuations) over the next few years as the Capital programme accelerates, and in line with forecast cashflows. 6.4 The Investment Strategy was applied in full over the quarter, with liquidity being maintained using instant access accounts and money market funds as detailed in paragraph 4.8 above. There were no other risks identified in the quarter. 6.5 The Investment Strategy also incorporates investments held by the Common Good Funds. All such investments during the quarter were with the Council’s Loans Fund. The only Council funds held by external fund managers relate to Council administered Charitable Trusts and are, therefore, not covered by this Investment Strategy. 6.6 The budgeted income in 2021/22 for Commercial Property investments is £1,819,000 whilst the final position (subject to audit) for the year is £1,847,000. There were no new property investments entered into during the quarter. Page 14 of 118
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7. PRUDENTIAL INDICATORS 7.1 Revised Prudential Indicators for 2022/23 to 2027/28 were approved by the Council at the meeting on 9 March 2022 (report 22/47 refers) as part of the Annual Treasury & Investment Strategy report. 7.2 The latest estimates of the Prudential Indicators, in line with the Council’s current approved Capital Budget and Capital Financing (borrowing) requirements, are shown at Appendix IV. 7.3 As a result of the additional approved borrowing, the Council’s Authorised Limit for borrowing was increased to £1.2 billion on 9 March 2022. The increased limit gives the Council more flexibility over the timing of new borrowing over the whole 6-year Capital Delivery Programme. 8. CONCLUSION AND RECOMMENDATIONS 8.1 The Bank of England’s MPC increased the Bank Base Rate from 0.25% to 0.75% over the quarter due to rising inflation. PWLB borrowing rates were volatile over the quarter due to inflationary expectations and the war in Ukraine, however all durations of rates increased. Consequently, there was no new PWLB borrowing undertaken. 8.2 Investment activity in the quarter consisted of the use of instant access and money market funds to meet short term liquidity requirements, and increased use of fixed rate deposits as rates improved with the increases to Base rate. The total level of investments reduced slightly over the quarter. 8.3 The Council adhered to its Investment Strategy and policies throughout the quarter, with no breaches in compliance. The Authorised Limit was increased in order to deliver the current Capital Programme. Author(s) Name Designation Contact Details John Jennings Senior Accountant CHXFinance@pkc.gov.uk Approved Name Designation Date Stewart MacKenzie Karen Donaldson Head of Finance Chief Operating Officer 31 May 2022 31 May 2022 Page 15 of 118
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Corporate Plan Yes Resource Implications Financial Yes Workforce No Asset Management (land, property, IST) No Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Corporate Plan 1.1 The Council’s Corporate Plan 2018 – 2023 lays out five outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: (i) Giving every child the best start in life; (ii) Developing educated, responsible and informed citizens; (iii) Promoting a prosperous, inclusive and sustainable economy; (iv) Supporting people to lead independent, healthy and active lives; and (v) Creating a safe and sustainable place for future generations. 1.2 This report relates to all these objectives. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Page 17 of 118
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Workforce 2.2 There are no direct workforce implications arising from this report. Asset Management (land, property, IT) 2.3 There are no direct asset management implications arising from this report other than those reported within the body of the main report. 3 Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation 4.1 The Chief Executive and the Council’s Treasury advisors, Link Asset Services, have been consulted in the preparation of this report. Page 18 of 118
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2. BACKGROUND PAPERS No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. 3. APPENDICES • Appendix I – PWLB Fixed Maturity Interest Rates from 1 January to 31 March 2022. • Appendix II – Summary of the Treasury Position and Transactions from 1 January to 31 March 2022. • Appendix III – Approved Investment Counterparty List. • Appendix IV – Monitoring of Prudential Indicators – Quarter ending 31 March 2022. Page 19 of 118
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PWLB Fixed Maturity Interest Rates From 1st January to 31st March 2022 (Certainty Rate) APPENDIX I 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 31-Dec-21 07-Jan-22 14-Jan-22 21-Jan-22 28-Jan-22 04-Feb-22 11-Feb-22 18-Feb-22 25-Feb-22 04-Mar-22 11-Mar-22 18-Mar-22 25-Mar-22 01-Apr-22 1 Year 5 Years 10 Years 20 Years 30 Years 50 Years 6 Page 21 of 118
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SUMMARY OF THE TREASURY POSITION AND TRANSACTIONS 1 JANUARY TO 31 MARCH 2021 APPENDIX II 1 LONG TERM BORROWING (a) Long Term Borrowing 1st January to 31st March 2022 Average Average Amount No. Rate (%) Life (years) (£) PWLB - Maturity Loans 0 0.00% 0.0 0 0 0.00% 0.0 0 (b) Long Term Debt Repayments 1st Janury to 31st March 2022 Average Amount No. Rate (%) (£) PWLB - Maturity Loan - Scheduled Repayments 1 1.40% 7,500,000 1 0.00% 7,500,000 (c) Long Term Debt Outstanding Outstanding Average Outstanding Average 31-Dec-21 Rate 31-Mar-22 Rate £ £ Public Works Loan Board 575,500,000 2.40% 568,000,000 2.41% Money Market Loans (LOBO's) 43,200,000 4.59% 43,200,000 4.59% Other Long Term Debt 140,000 0.00% 140,000 0.00% TOTAL 618,840,000 2.55% 611,340,000 2.56% 2 SHORT TERM BORROWING (a) Short Term Market Borrowing - 1st January to 31st March 2022 Average Average Average Interest No. Amount (£) Rate (%) Term (Days) (£) Temporary Borrowing 1 3,000,000 0.08% 14 92.05 1 3,000,000 0.08% 14 92.05 (b) Short Term Borrowing Outstanding Outstanding Average Outstanding Average 31-Dec-21 Rate 31-Mar-22 Rate £ £ Market Borrowing 0 0.00% 0 0.00% Common Good and Charitable Funds 2,169,254 0.10% 2,169,254 1.05% Local Trusts & Investors 3,368,431 0.18% 2,983,512 0.20% TOTAL 5,537,685 0.15% 5,152,766 0.56% 6 Page 23 of 118
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SUMMARY OF THE TREASURY POSITION AND TRANSACTIONS 1 JANUARY TO 31 MARCH 2021 APPENDIX II 3 INVESTMENTS (a) Investment Transactions - 1st January to 31st March 2022 Average Average Average Total Fixed Deposits & Investments No. Amount (£) Rate (%) Term (Days) Interest (£) Banks 5 8,000,000 1.13% 228 290,728.77 Foreign Banks and Institutions 13 5,923,077 1.32% 230 743,672.88 18 6,500,000 1.26% 230 1,034,401.64 Average Average Total Instant/Notice Accounts & Money Market Funds Amount (£) Rate (%) Interest (£) Instant Access/Notice accounts 6,001,264 0.28% 68,583.52 Money Market Funds 5,463,855 0.26% 2,827.64 5,740,417 0.27% 71,411.15 (b) Investments Outstanding Outstanding Average Outstanding Average 31-Dec-21 Rate 31-Mar-22 Rate £ £ UK Banks 148,982,611 0.36% 115,035,371 0.74% Foreign Banks and Institutions 45,000,000 0.18% 92,000,000 1.15% Money Market Funds 11,525,000 0.09% 0 0.00% Other Local Authorities 55,000,000 0.66% 45,000,000 0.71% TOTAL 260,507,611 0.38% 252,035,371 0.88% Page 24 of 118
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APPROVED INVESTMENT COUNTERPARTY LIST APPENDIX III Fitch Credit CDS Maximum Country Rating Range Lending Note (2) Category 1 - Principal UK Clearing Banks - 40% Investment total (or £20M per Counterparty if higher) (Minimum rating required Fitch A, F1) Bank of Scotland (RFB) (5) UK A+, F1 In range 6 months £80million Group limit Barclays Bank plc (NRFB) (5) UK A+, F1 No data 6 months Barclays Bank plc (RFB) (5) UK A+, F1 In range 6 months Goldman Sachs International Bank UK A+, F1 In range 12 months Handelsbanken plc UK AA, F1+ No data 12 months HSBC Bank plc (NRFB) UK AA-, F1+ In range 12 months HSBC Bank plc (RFB) UK AA-, F1+ No data 12 months Lloyds Bank Corporate Markets Plc (NRFB) UK A+, F1 No data 6 months £80million Group limit Lloyds Banking Group plc (RFB) UK A+, F1 In range 6 months £80million Group limit NatWest Markets Plc (NRFB) UK A+, F1 In range 6 months Royal Bank of Scotland plc (RFB) (inc Nat West) (3) (4) UK A+, F1 Nationalised 12 months Sovereign Rating AA Santander UK plc (inc Cater Allen) UK A+, F1 No data 6 months Standard Chartered Bank UK A+, F1 In range 6 months Sumitomo Mitsui Banking Corporation Europe Ltd UK A, F1 In range 6 months Category 2 - Foreign Banks & Institutions - 25% Investment total (or £10M per Counterparty if higher) (Minimum rating required Fitch A, F1) Australia and New Zealand (ANZ) Banking Group Ltd Aus A+, F1+ In range 12 months Commonwealth Bank of Australia Aus A+, F1+ In range 12 months Macquarie Bank Ltd Aus A, F1 No data 6 months National Australia Bank Ltd Aus A+, F1+ In range 12 months Westpac Banking Corporation Aus A+, F1+ In range 12 months BNP Paribas Fortis Bank Belgium A+, F1 No data 1 month Sovereign Rating AA- KBC Bank Belgium A+, F1 No data 1 month Sovereign Rating AA- Bank of Montreal Can AA-, F1+ No data 12 months Bank of Nova Scotia Can AA-, F1+ No data 12 months Canadian Imperial Bank of Commerce Can AA-, F1+ No data 12 months National Bank of Canada Can A+, F1 No data 6 months Royal Bank of Canada Can AA, F1+ No data 12 months Toronto Dominion Bank Can AA-, F1+ No data 12 months Danske Bank Denmark A, F1 In range 6 months Nordea Bank Finland plc Finland AA-, F1+ No data 1 month Sovereign Rating AA+ BNP Paribas France A+, F1 In range 1 month Sovereign Rating AA Credit Agricole Corporate and Investment Bank France A+, F1 In range 1 month Sovereign Rating AA Credit Agricole SA France A+, F1 In range 1 month Sovereign Rating AA Credit Industriel et Commercial France A+, F1 No data 1 month Sovereign Rating AA DZ Bank AG Germany AA-, F1+ No data 12 months Landesbank Hessen-Thueringen Girozentral (Helaba) Germany A+, F1+ In range 6 months Landwirtschaftliche Rentenbank Germany AAA, F1+ No data 24 months NRW Bank Germany AAA, F1+ No data 24 months ABN AMRO Bank Netherlands A, F1 No data 6 months Bank Nederlandse Germeenten Netherlands AAA, F1+ No data 24 months Cooperatieve Rabobank Netherlands A+, F1+ In range 12 Months ING Bank Netherlands AA-, F1+ In range 12 Months DBS Bank Limited Singapore AA-, F1+ No data 12 months United Overseas Bank Ltd Singapore AA-, F1+ No data 12 months Skandinaviska Enskilda Banken AB Sweden AA-, F1+ No data 12 months Svenska Handelsbanken AB Sweden AA, F1+ No data 12 months Swedbank AB Sweden A+, F1 No data 12 months Credit Suisse Switzerland A, F1 In range 3 months UBS AG Switzerland AA-, F1+ In range 12 months Bank of America, NA USA AA-, F1+ No data 12 months Bank of New York Mellon USA AA, F1+ No data 24 months Citibank, NA USA A+, F1 In range 6 months JP Morgan Chase Bank, NA USA AA, F1+ No data 12 months Wells Fargo Bank, NA USA AA-, F1+ In range 12 months 6 Page 25 of 118
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APPROVED INVESTMENT COUNTERPARTY LIST APPENDIX III Category 3 - Subsidiary Banks & Building Societies - 15% of Investment total (or £10M per Counterparty if higher) (Minimum rating required Fitch A, F1) (parent bank shown in brackets) Subsidiary Banks None Building Societies Nationwide Building Society UK A, F1 No data 6 months Category 4 - Other Local Authorities - 20% of Investment total (or £20M per Counterparty if higher) As arranged Category 5 Money Market Funds - 10% of Investment Total (or £10M per Counterparty if higher) (Minimum rating required Fitch AAA) Aberdeen Standard Investments UK AAA Aviva Investors Liquidity Fund UK AAA Federated Sterling Liquidity Fund (Class 3) UK AAA Insight Sterling Liquidity Fund (Class 5) UK AAA Deutsche Bank Sterling Fund UK AAA Note: (1) - Standard & Poor's credit ratings shown, as no Fitch credit rating available (2) - All Soveriegn credit ratings for above Countries are AAA, unless stated otherwise. (3) - Banks are part/majority owned by the UK government (4) - UK Sovereign Rating is AA (Fitch and Standard & Poor's) Last Updated: 13-May-22(5) - NRFB = Non Ring Fenced Bank, RFB = Ring Fenced Bank Page 26 of 118
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PERTH AND KINROSS COUNCIL PRUDENTIAL INDICATORS - QUARTER ENDING 31 MARCH 2022 APPENDIX IV 1 Financing Costs:Net Revenue Stream The ratio of Capital Financing Costs (Loan Charges) to the Council's net revenue stream shall not exceed the following limits, which are based on historic levels, and allow some headroom for movement in interest rates. The estimated Financing Costs below are based on the latest monitoring figures. 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Prudential Limit - General Fund 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% Estimated Ratio of Financing Costs to Revenue 6.86% 7.78% 8.72% 9.46% 9.56% 9.21% Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% Estimated Ratio of Financing Costs to Revenue 22.79% 23.88% 23.62% 23.23% 22.98% 22.61% 2 Gross & Net Borrowing and Capital Financing Requirements For prudence, net external borrowing must not exceed the total capital financing requirement, thus ensuring that over the medium term, borrowing is only undertaken for capital purposes. The estimated total net borrowing and Capital Financing Requirement at the end of each of the years are as follows: Actual as at Projected Projected Projected Projected Projected Projected 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 Net External Borrowing* 491,652,000 559,341,000 802,938,000 968,676,000 1,027,713,000 1,073,296,000 1,103,879,000 Gross External Borrowing* 743,687,000 729,341,000 892,938,000 1,018,676,000 1,077,713,000 1,123,296,000 1,153,879,000 Capital Financing Requirement 618,465,000 749,841,000 912,304,000 1,039,411,000 1,100,396,000 1,143,879,000 1,176,156,000 *For the purpose of this indicator, Borrowing includes the outstanding liability under PPP/PFI contracts. 3 Estimates of Gross Capital Expenditure The total estimated Capital Expenditure contained within the Council's Budgets for each year is as follows, based on updated monitoring figures. Composite Programme 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Current estimate 164,452,000 189,177,000 139,954,000 63,769,000 54,830,000 45,858,000 Original Budget Estimate (including Budget Motion) 178,562,000 175,493,000 128,749,000 63,376,000 54,519,000 45,737,000 Movement in Estimated Capital Expenditure (14,110,000) 13,684,000 11,205,000 393,000 311,000 121,000 The Original Budget Estimates are those per the 2022/23 to 2027/28 Composite Capital Budget Report on 23 February 2022 The latest estimates for Capital Expenditure are based on the SP&R Capital Monitoring Report No. on 20 April 2022. HRA Programme 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Current estimate 17,963,000 15,983,000 13,871,000 19,995,000 16,044,000 16,500,000 Original Budget Estimate 17,299,000 15,983,000 13,886,000 20,085,000 16,044,000 16,500,000 Movement in Estimated Capital Expenditure 664,000 0 (15,000) (90,000) 0 0 The Original Budget Estimates are those per the 2020/21 Housing & Communities Budget Report on 24 January 2022. The latest estimates for Capital Expenditure are based on the SP&R Capital Monitoring Report No. on 20 April 2022. 6 Page 27 of 118
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PERTH AND KINROSS COUNCIL PRUDENTIAL INDICATORS - QUARTER ENDING 31 MARCH 2022 APPENDIX IV 4 Estimate of Capital Financing Requirement The estimate (as at May 2022) of the Capital Financing Requirement (ie new borrowing requirement for Capital Expenditure) for each year based on these plans is as follows: Composite Programme 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Current Estimated Capital Financing Requirement 125,644,000 155,102,000 117,980,000 41,974,000 35,115,000 26,188,000 Original Budget Estimate (including Budget Motion) 140,264,000 137,906,000 106,775,000 41,581,000 34,804,000 26,067,000 Movement in Estimated Capital Financing Requirement (14,620,000) 17,196,000 11,205,000 393,000 311,000 121,000 The Original Budget Estimates are those per the 2022/23 to 2027/28 Composite Capital Budget Report on 23 February 2022 The latest estimates for Capital Expenditure are based on the SP&R Capital Monitoring Report No. on 20 April 2022. HRA Programme 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Current Estimated Capital Financing Requirement 15,349,000 13,338,000 10,542,000 16,035,000 11,765,000 12,000,000 Original Budget Estimate 14,685,000 13,338,000 10,557,000 16,125,000 11,765,000 12,000,000 Movement in Estimated Capital Financing Requirement 664,000 0 (15,000) (90,000) 0 0 The Original Budget Estimates are those per the 2020/21 Housing & Communities Budget Report on 24 January 2022. The latest estimates for Capital Expenditure are based on the SP&R Capital Monitoring Report No. on 20 April 2022. 5 External Debt (Gross and Net) As at Projected Projected Projected Projected Projected Projected External Borrowing 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 Public Works Loan Board 568,000,000 560,000,000 730,000,000 862,000,000 927,000,000 977,000,000 1,012,000,000 Market Bonds (LOBOs) 43,200,000 43,200,000 43,200,000 43,200,000 43,200,000 43,200,000 43,200,000 Project Borrowing 140,000 140,000 0 0 0 0 0 Special Loans 2,169,254 2,169,254 2,169,254 2,169,254 2,169,254 2,169,254 2,169,254 Temporary Loans/Other Borrowing 2,983,512 2,600,000 2,300,000 2,000,000 2,000,000 2,000,000 2,000,000 Other Long Term Liabilities (PPP/PFI) 127,194,346 121,231,770 115,269,194 109,306,618 103,344,043 98,926,869 94,509,695 Total Gross External Debt 743,687,112 729,341,024 892,938,448 1,018,675,872 1,077,713,297 1,123,296,123 1,153,878,949 Short Term Investments (252,035,371) (170,000,000) (90,000,000) (50,000,000) (50,000,000) (50,000,000) (50,000,000) Long Term Investments 0 0 0 0 0 0 0 Total Net External Debt 491,651,741 559,341,024 802,938,448 968,675,872 1,027,713,297 1,073,296,123 1,103,878,949 Note: Operational Boundary 744,000,000 729,000,000 893,000,000 1,019,000,000 1,078,000,000 1,123,000,000 1,154,000,000 Authorised Limit 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000 The Operational Boundary and Authorised Limit are based on Gross External Debt. Page 28 of 118
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PERTH AND KINROSS COUNCIL PRUDENTIAL INDICATORS - QUARTER ENDING 31 MARCH 2022 APPENDIX IV 6 Principal Sums Invested Longer Than 365 Days The Upper Limit for sums invested for over 1 year up to 3 years is £45 million. There were no amounts invested within this period as at the end of the quarter. 7 MATURITY STRUCTURE The lower and upper limit for the proportion of the Council's total-long term debt which matures in each of the time bandings below, and is therefore subject to refinancing at the prevailing market rates, is as follows: Fixed Rate Borrowing Maturity Structure Lower Limit Upper Limit Estimated Under 12 months 0% 35% 1.08% over 12 months and < 24 months 0% 35% 1.48% Expand the Over 10 year banding? over 2 years and < 5 years 0% 50% 6.15% Should also include variable debt!! over 5 years and < 10 years 0% 75% 6.96% Include para in report on interest rate exposure policy? over 10 years 10% 95% 84.32% The maurity profile for the Council's current long-term portfolio as at 31 March 2022, measured from the start of the financial year, is as follows: Less 1 Year 1 - 2 Years 2 - 5 Years 5 - 10 Years 10 - 20 Years 20 - 30 Years 30 - 40 Years 40 - 50 Years Over 50 Years Total PWLB 8,000,000 5,000,000 23,000,000 27,500,000 5,000,000 0 40,500,000 459,000,000 0 568,000,000 LOBOs 0 0 0 0 0 13,000,000 25,200,000 5,000,000 0 43,200,000 Other 0 0 140,000 0 0 0 0 0 0 140,000 PPP/PFI Liability 0 5,962,576 22,304,901 23,875,338 70,009,414 5,042,117 0 0 0 127,194,346 Total 8,000,000 10,962,576 45,444,901 51,375,338 75,009,414 18,042,117 65,700,000 464,000,000 0 738,534,346 Percentage 1.08% 1.48% 6.15% 6.96% 10.16% 2.44% 8.90% 62.83% 0.00% 100.00% diff Page 29 of 118
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PERTH & KINROSS COUNCIL Finance & Resources Committee 15 June 2022 AUTHORITY TO WRITE OFF DEBTS AND OBSOLETE STOCK Contact Officer: Stewart MacKenzie, Head of Finance (Report No 22/123) 1. PURPOSE 1.1 This report seeks approval to write off identified debts in respect of Sales Ledger; Council Tax (including Water & Waste Water charges); Non-Domestic Rates; Irrecoverable Rents; Housing Benefit Overpayments and Car Park Trading Account Income. In addition, approval is sought to write off obsolete stock and write on other miscellaneous balances. 2. RECOMMENDATIONS 2.1 The Committee is requested to: i. approve that all amounts detailed in section 4 and the attached appendices to this report are written off or on for accounting purposes. ii. note that whilst these amounts are written off or written on, the files are not closed, and every effort will be made to collect outstanding debt where recovery is cost effective. iii. approve the removal of charges for services for people seeking asylum – see section 5. 3. BACKGROUND 3.1 In order that the appropriate entries may be made in the Council’s Annual Accounts for the year ending 31 March 2022, it is necessary to consider the write off of debts, obsolete stock and other miscellaneous balances. 3.2 To accommodate year end accounting processes and timescales, some of the Council’s systems have already been amended to reflect the proposed adjustments, pending approval by the Committee of the recommendations within this report. 3.3 The debts included within this report have progressed through the Council’s debt recovery process using the various legislative procedures available for each category of debt to collect the amounts outstanding. The amounts that remain due, after exhaustive recovery procedures have been undertaken, are included within this report for write off as a last resort. Should any additional 7 Page 31 of 118
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information be received, the debt will be written back. Every effort is made to collect outstanding debt where it is cost effective to recover. 3.4 This report includes all the recommended write off and on amounts for financial year 2021/22. 3.5 As Covid-19 has continued to impact on customers in 2021/22 the Council has again sought to strengthen engagement throughout the debt recovery process. For individuals and families, this has continued by sign posting customers to the Council Tax and Housing Benefits; Welfare Rights and Tenancy Support teams to ensure that they have access to appropriate advice and support in claiming entitlements and maximising household income. For business customers, support and advice on accessing the various Scottish Government business grant schemes has been provided by the Council’s business support team. 4. PROPOSALS Sales Ledger 4.1 Appendix 1 details Sales Ledger debt which it has not been possible to collect for various reasons. The majority of these debts have been placed with Sheriff Officers, including instances where debtors are deceased or untraceable. 4.2 The Council has introduced a number of measures to maximise income collection including “set-off” (which, in certain circumstances, allows the Council to apply customer debt against payments due by the Council) and encouraging customers to pay at point of sale, therefore, reducing cost of collection and the level of debt. Appendix 1 sets out the debt recovery process for Sales Ledger debt. 4.3 After consultation with Services who raised the original invoices, it is recommended that the Council write off £281,710.91 as shown in Appendix 1. This amount includes debt relating to eight financial years from 2014/15 through to 2021/22. A comparison by Service between the current and the previous financial year is shown below. Write off By Service Total 2020/21 Total 2021/22 Corporate & Democratic Services 25.00 312.00 Education & Children's Services 79,477.41 30,862.23 Health & Social Care 89,567.44 92,644.41 Communities 79,186.91 157,892.27 248,256.76 281,710.91 4.4 The total provision for bad and doubtful debts included within the Council’s Annual Accounts for Sales Ledger debt at 31 March 2021 was £1,161,527. The total value of Sales Ledger invoices raised in financial year 2021/22 Page 32 of 118
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totalled approximately £24 million and the proposed write off for all years represents approximately 1.2% of this amount. 4.5 In most instances, accounts raised prior to 30 September 2020 carry a 50% provision whilst those raised prior to 31 March 2020 are fully provided for. Where debts fall into this category, part or all of the amount to be written off will be met from the provision. 4.6 Where no provision or only partial provision has previously been made, the balance of the write off will be charged against the issuing Service’s Revenue Account for 2021/22. Council Tax and Non-Domestic Rates 4.7 Appendices 2 and 3 set out the debt recovery processes for Council Tax and Non-Domestic Rates respectively. To maximise levels of collection and reduce collection costs, the Council continues to promote the use of electronic forms and payment by Direct Debit. Approximately 77% of Council Tax customers currently pay by Direct Debit. 4.8 Appendix 2 details Council Tax (including Water and Waste Water Charges) where the sum of £278,900.17 has been deemed uncollectable (£308,841.98 in 2020/21). There is an overall provision for bad and doubtful Council Tax debt of £14,849,303.09 as at 31 March 2021. 4.9 The total amount of Council Tax billed for financial year 2021/22 was £117 million (including Water and Waste Water Charges), with an in-year collection rate of 97.70% (96.59% in 2020/21). 4.10 The proposed write offs relate to the last 29 financial years during which time the Council has raised over £2 billion in Council Tax and has continually delivered high collection levels. 4.11 Appendix 3 details Non-Domestic Rates income totalling £269,612.49 which it has not proved possible to collect for the reasons shown in the appendix (£96,256.26 was written off in 2020/21). The write off figures for 2021/22 show a significant increase in those reported for 2020/21. This is due to last year’s figures for sequestration and liquidations etc being lower than normal as a result of the various moratoriums and relaxation of recovery action that were in place to protect financially vulnerable businesses at such a difficult time. 4.12 In terms of write offs relating to Non-Domestic Rates, the costs at present are met by the Scottish Government through the “pool” mechanism. The provision for bad and doubtful Non-Domestic Rates debt was £613,199.92 at 31 March 2021. 4.13 The amount recommended to be written off for all years represents approximately 0.72% of the £37.2 million of Non-Domestic Rates income raised in financial year 2021/22. The in-year collection rate for Non-Domestic Rates was 94.29% for 2021/22 (95.83% in 2020/21). Page 33 of 118
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4.14 These proposed write offs relate to the last 7 financial years during which time the Council has raised over £336 million in Non-Domestic Rates and has continually delivered high collection levels. 4.15 Appendices 2 and 3 also include accounts where the balance is for a small value either in debit or credit (£0.99) for Council Tax and Non-Domestic Rates. It is uneconomical to collect or refund/transfer such small amounts and, therefore, an automated process is in place to adjust these accounts. Housing Revenue Account (Rents) 4.16 Appendix 4 details rent charges raised in respect of former tenants and court expenses incurred which it has not been possible to collect for the reasons set out. 4.17 A comprehensive review of former tenant arrears has been undertaken within Communities which has identified a requirement to write off £363,100.10 (including £39,808.22 of sequestrations) of outstanding housing rent (£257,334.60 was written off in 2020/21). The provision for bad and doubtful Housing Revenue Account debt was £1,880,726 as at 31 March 2021. The in- year collection rate for Housing Rents was 99.08% for 2021/22 (96.91% in 2020/21). The total rental charges raised between the 1 March 2021 and 27 February 2022 were approximately £29million, with the proposed write off representing 1.11%. 4.18 Authority is also requested to write off outstanding arrears on garage sites and lock ups of £2,955.41 (£2,202.94 was written off in 2020/21). 4.19 The overall proposed write off for the Housing Revenue Account is £366,055.51 (including sequestrations). The total rent charge raised for the period was £29,467,529.18, with the proposed write off representing 1.24%. 4.20 The write off for sequestrations for the same period amounts to £39,808.22. Housing General Fund 4.21 Appendix 5 details charges for those housing services administered through the Council’s rent system, provided to Homeless clients placed in temporary accommodation. These tenancies have ended, and it has not proved possible to recover outstanding income, in part, due to the vulnerable nature of the client group. 4.22 Authority is requested to write off £206,522.09 for the period 1 March 2021 to 28 February 2022 (£227,393.59 was written off in 2020/21) for rent and service charges for housing services provided to homeless households placed in temporary accommodation. The provision for bad and doubtful debts in relation to this activity was £746,660 as at 31 March 2021. Page 34 of 118
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4.23 The majority of the write off for temporary accommodation, 80.42% (£166,079.35) is, in the main, due to arrears which accrued when rents and service charges were higher than at present and this debt has now become prescribed in the current financial year. A debt becomes prescribed where “the debt is too old to be recovered and barred by statute (5 years or over)”. 4.24 Authority is also requested to write off Housing Benefit overpayment debt of £67,126 for 2021/22 (£36,192.11 was written off in 2020/21) which it has not proven possible to recover. The provision for bad and doubtful Housing Benefit overpayment debt was £840,821 as at 31 March 2021. The total value of Housing Benefit overpayments in 2021/22 was approximately £322,000 and the proposed write off value for all years represents 20.85% of this amount. The recovery of Housing Benefit payments, however, remains an ongoing process and £416,000 was recovered in 2021/22 which includes former debt. Car Park Trading Account Income 4.25 Authority is requested to write off £103,873 in respect of Car Park Trading Account Income (£163,154 was written off in 2020/21). This amount equates to all amounts charged and still outstanding in relation to the period prior to October 2020. The provision for bad and doubtful Car Park Trading Account debt was £110,564 as at 31 March 2021. The proposed write off is equivalent to 19.66% of the number of Penalty Charge Notices issued during 2020/21 (13.53% in the previous financial year). Stock Write Offs 4.26 Authority is requested to write off obsolete stock of £3,000 in respect of vehicle parts at Friarton Depot (£3,000 was written off in 2020/21). Full provision has been made for this write off. Outstanding Balances 4.27 Authority is requested to write off outstanding balances over various accounts. These balances relate to transactions before 31 March 2021. The net amount of the outstanding balances is a write on totalling £10,928.30 (£4,681 was written off in 2020/21). 5. CHARGES FOR ASYLUM SEEKERS 5.1 The Council is committed to supporting people that are seeking asylum and refugees and providing a safe and welcoming place for them. To support this, it is proposed to waive charges for all adult care and support services for people seeking asylum with no recourse to public funds and all refugees within Perth and Kinross. Page 35 of 118
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5.2 To date, the demographic of people coming to Perth and Kinross has been predominantly younger adults, some with children and it is anticipated that this will continue, resulting in minimal additional demand for adult care and support services. On that basis, the financial consequences of this proposal will not be significant, and any additional costs can be contained within existing budgets. 5.3 It is proposed that this position is reviewed annually. 6. CONCLUSION 6.1 In all the above cases it has either not been possible to recover outstanding monies due to the Council or to utilise stocks held by the Council. The write off debt is only recommended after all means of recovery have been exhausted. Although the amounts will be written off for accounting purposes, the files are not closed, and every effort will be made to collect the outstanding debt where new information becomes available and where recovery is cost effective. Approved Name Designation Date Stewart MacKenzie Head of Finance 31 May 2022 Karen Donaldson Chief Operating Officer 31 May 2022 chxfinance@pkc.gov.uk Page 36 of 118
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Strategic Plan Yes Resource Implications Financial Yes Workforce None Asset Management (land, property, IST) None Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Strategic Plan 1.1 The Council’s Corporate Plan 2018 – 2023 lays out five outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: (i) Giving every child the best start in life; (ii) Developing educated, responsible and informed citizens; (iii) Promoting a prosperous, inclusive and sustainable economy; (iv) Supporting people to lead independent, healthy and active lives; and (v) Creating a safe and sustainable place for future generations. 1.2 This report relates to all of these objectives. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Page 37 of 118
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3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation Internal 4.1 The Chief Executive and all Executive Directors have been consulted in the preparation of this report. 2. BACKGROUND PAPERS No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. Page 38 of 118
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3. APPENDICES • Appendix 1 – Sales Ledger debt written off in financial year 2021/22 by year and reason. • Appendix 2 – Council Tax debt written off in financial year 2021/22 by year and reason. • Appendix 3 – Non Domestic Rates debt written off in financial year 2021/22 by year and reason. • Appendix 4 – Irrecoverable Rents written off in financial year 2021/22 by year and reason. • Appendix 5 – Homeless debt written off in financial year 2021/22 by year and reason. Page 39 of 118
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PERTH AND KINROSS COUNCIL FINANCE AND RESOURCES COMMITTEE 15 JUNE 2022 CORPORATE & DEMOCRATIC SERVICES JOINT BUSINESS MANAGEMENT & IMPROVEMENT PLAN 2022/23 AND SERVICE ANNUAL PERFORMANCE REPORT 2021/22 Report by the Chief Operating Officer (Report No 22/124) 1. PURPOSE 1.1 This report presents the Joint Service Business Management and Improvement Plan 2022/23 and Annual Performance Report 2021/22 for Corporate & Democratic Services. It details the progress of our work in supporting the Council’s objectives and service delivery. It also highlights the challenges and priority focus areas for the coming year. 2. RECOMMENDATION 2.1 It is recommended that the Finance and Resources Committee: • Approves the Corporate & Democratic Services Joint Business Management Improvement Plan 2022/23 and Annual Performance Report 2021/22. 3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Background • Section 5: Proposals • Section 6: Further Considerations • Appendices 4. BACKGROUND 4.1 Council Services produce a Joint Service Business Management and Improvement Plan (BMIP) and Annual Performance Report (APR) on an annual basis. This sets out the key actions which the Service will deliver in the coming year, to ensure better outcomes for everyone in Perth and Kinross, and to demonstrate how the Service contributes to the delivery of the Council’s strategic objectives. This also allows an opportunity to reflect on the progress made in the previous year. 4.2 These documents are an important part of the strategic planning framework for the organisation, translating the strategic objectives of the Local Outcome Improvement Plan and Corporate Plan into the contributions that each 8 Page 51 of 118
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Service makes. Divisional Plans and Team plans are based on Service BMIPs. 4.3 The joint Service BMIPs and APRs are presented to Scrutiny and Performance Committee, and then to the relevant Service Committees. This report presents the Joint Business Management Improvement Plan for the period 2022/23 and Annual Performance Report for the period 2021/22 for Corporate & Democratic Services. 5. PROPOSALS 5.1 The Service Joint BMIP and APR for this year has not changed significantly in terms of structure and format. The report includes performance summaries and end of year data, where currently available, along with comments on performance against priority areas identified last year. It also sets out information about how the Service is organised and structured to deliver and identifies key priority focus areas for the upcoming year, rather than a detailed plan. 5.2 This approach was agreed last year, due to the impact of COVID-19, which has continued during 2021/22. Also, work is currently being undertaken to revise the Corporate Plan, Local Outcomes Improvement Plan and implement a new Change and Transformation Programme, which will likely have an impact upon Service priorities. 5.3 The Council has also procured a performance management software system which will be introduced during 2022. This will improve the way in which performance information is recorded, used and reported.This development will dovetail with our data analytics work and the implementation of Interactive Power BI visualisations which are easy to interpret and understand. 5.4 Following approval of the new strategic documents and the implementation of the new performance management software solution, service planning and performance reporting will be reviewed and improved with new guidance being developed for reports next year. 5.5 Much of our efforts last year continued to be dominated by our response to the global pandemic and we have made the best use of our resources to help the most vulnerable in our communities, to support businesses and to keep the organisation functioning. 5.6 The pandemic has changed the way we live and work; in CDS many teams have continued in their normal workplace with changes in work practices – for example, Registrars, IT and property teams. Many staff were working from home and are now settling into new hybrid work patterns, where this is appropriate for the customers they serve. 5.7 Our priorities for 2022/2023 will focus on addressing the financial challenges facing our communities and the Council, and supporting the organisational wide programme of transformation and change, both of which are inextricably linked Page 52 of 118
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6. FURTHER CONSIDERATIONS None Authors Name Designation Contact Details Ian Caldow CDS Business Support Manager IMCaldow@pkc.gov.uk Approved Name Designation Date Karen Donaldson Chief Operating Officer (Corporate & Democratic Services) 01.06.22 Page 53 of 118
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement Yes Corporate Plan Yes Resource Implications Financial None Workforce None Asset Management (land, property, IST) None Assessments Equality Impact Assessment None Strategic Environmental Assessment None Sustainability (community, economic, environmental) None Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Community Plan / Corporate Plan 1.1 This report supports the delivery of the Strategic Objectives within Perth and Kinross Community Plan (Local Outcomes Improvement Plan) 2017-2027 and Corporate Plan 2018-2022. 2. Resource Implications Financial 2.1 There are no financial implications arising from this report. Workforce 2.2 There are no workforce implications arising from this report. Asset Management (land, property, IT) 2.3 There are no asset management implications arising from this report. Page 54 of 118
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3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 This report has been considered under the Corporate Equalities Impact Assessment process (EqIA) with the following outcome: (i) Assessed as not relevant for the purposes of EqIA Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. no further action is required as it does not qualify as a PPS as defined by the Act and is therefore exempt. Sustainability 3.4 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Climate Change (Scotland) Act 2009 the Council also has a duty relating to climate change and, in exercising its functions must act: • in the way best calculated to delivery of the Act’s emissions reduction targets; • in the way best calculated to deliver any statutory adaptation programmes; and • in a way that it considers most sustainable. 3.5 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Legal and Governance 3.6 Not applicable. Risk 3.7 Not applicable. Page 55 of 118
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4. Consultation Internal 4.1 The Corporate & Democratic Services Management Team were consulted during the preparation of this report. External 4.2 Not applicable. 5. Communication 5.1 Not applicable. 2. BACKGROUND PAPERS 2.1 The background papers referred to within the report are: • Corporate & Democratic Services Joint Business Management Improvement Plan 2021/22 3. APPENDICES 3.1 Corporate and Democratic Services Joint Business Management Improvement Plan 2022/23 and Annual Performance Report 2021/22 Page 56 of 118
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Appendix 1 CDS BMIP 2022-23 Page 1 8 Page 57 of 118
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Appendix 1 CDS BMIP 2022-23 Page 2 Contents Page Introduction 3 Vision, Strategic Objectives and Service Priorities CDS Performance 2021-22 and Priorities 2022-23 4 5-22 • Getting the Basics Right • Developing People, Skills, and Capacity • Exploiting Digital Opportunities and Data Insight • Protecting our Physical and Information Assets • Improving our Customers’ Experience • Working Smarter Organised to Deliver • Governance and Management Structure of the Service • Customer Focus and Community Engagement • Preparing our People for the Future • Partnership Working • Financial and Resource Management • Performance, Self-Evaluation, and Risk Management 23-31 Key Performance Indicators • Corporate Performance Indicators 31-32 Page 58 of 118
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Appendix 1 CDS BMIP 2022-23 Page 3 INTRODUCTION Welcome to the 2022-2023 Business Management and Improvement Plan for Corporate & Democratic Services. I am delighted to share highlights of the work carried out by Corporate & Democratic Services (CDS) over the last year and to set out our priorities for the year ahead. Much of our efforts last year continued to be dominated by our response to the global pandemic. Teams across CDS have shown outstanding commitment, compassion, resilience, and creativity to channel their skills, knowledge, and abilities to help the most vulnerable in our communities, to support businesses and to keep the organisation functioning. As public health restrictions have eased, we have supported staff to move to hybrid working, continuing to learn new digital skills, and to adapt our work practices which ensure the health and safety of everyone. We have ensured elected members were able to maintain democratic oversight and decision- making which is at the heart of local government. And of course, we have been preparing to welcome newly elected and returning elected members to the Council following the Local Government elections. This plan is an extension of our 2021-22 Business Management and Improvement Plan, with continuing progress in our improvement work. Our priorities will focus on addressing the financial challenges facing our communities and the Council, and supporting the organisational wide programme of transformation and change, both of which are inextricably linked This Plan sets out how CDS will support delivery of the Council’s corporate objectives and priority outcomes; achieving financial sustainability and enabling change and transformation, especially through the Perth and Kinross Offer; and our commitment to continue to deliver high quality services despite the significant challenges we face as an organisation. Karen A Donaldson Page 59 of 118
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Appendix 1 CDS BMIP 2022-23 Page 4 VISION, STRATEGIC OBJECTIVES AND SERVICE PRIORITIES Vision: We support the Vision of the Community Planning Partnership, for our area: “Creating a confident, ambitious, and fairer Perth and Kinross, for all - who live and work here.” This Plan aims to translate this vision into an agenda for CDS to deliver positive outcomes for our citizens and communities by supporting the Perth and Kinross Officer and working together so everyone in Perth and Kinross can live life well. Strategic Objectives: The Council’s five strategic objectives, outlined in the current Corporate Plan, inform decisions about policy direction and budget spending: • Giving every child the best start in life • Developing educated, responsible, and informed citizens • Promoting a prosperous, inclusive, and sustainable economy • Supporting people to lead independent, healthy, and active lives • Creating a safe and sustainable place for future generations. CDS connect and collaborate with Services, Partners, and Communities as enablers for the Perth & Kinross Offer and delivery of the Council’s strategic objectives. Page 60 of 118
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Appendix 1 CDS BMIP 2022-23 Page 5 CDS Key Priorities GET THE BASICS RIGHT PEOPLE, SKILLS, CAPACITY DIGITAL & DATA PROPERTY & INFORMATION ASSETS CUSTOMER EXPERIENCE SMARTER WORKING This section uses case studies to convey the breadth and depth of activity across the Service, providing insight into what we do and the impact we have. It also sets out priorities for 2022/23. Getting the Basics Right This matters because CDS provides the Council’s strategic management of corporate resources - being people, finances, property, ICT and digital, and information assets. It maintains the Council governance framework and system of internal control, ensures legal and regulatory compliance, effective scrutiny, and accountability in respect of Council decision-making. Performance Summary for 2021/22 The Council continues to operate in a particularly challenging financial environment characterised by pressures on Council funding, growing demand for Services and increasing inflation on the cost of service delivery and capital investment. The Finance team developed a long-term funding strategy to enable the Council to approve a 6-year funded Capital delivery programme for 2022/23 - 2027/28 with provision for £155m of additional Capital investment, including the PH2O project. Through pro-active treasury management, annual savings of around £700,000 per annum were secured on the Council’s borrowing for Capital investment. Working with Services across the Council, the Council’s Medium Term Financial Plan was updated in November 2021; the 2020/21 financial statements approved and audited by September 2021 and elected members were supported in setting the Revenue and Capital budgets in February 2022. In conjunction with the Council’s Economic Development teams and Local Taxes & Benefits team, approximately £25m of business grant support was distributed to local businesses and a further £6m to individuals and families in welfare payments in 2021/22. Page 61 of 118
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Appendix 1 CDS BMIP 2022-23 Page 6 The Procurement Team have supported the tendering for major projects, such as the Cross Tay Link Road and the replacement social care case management system. The Team were category winners at the Go Awards Scotland and received national recognition for their work on community benefits, being highly commended in the Social Value category. Getting the “governance basics” right ensures lawful, ethical, and effective decision- making at all levels. It creates and supports an organisational culture that is risk aware, commercially aware, solution focussed and legally compliant; ensuring that the Council not only does the right things but does things right. A review of the Democratic Services Team was completed in 2021-22 and a leaner management structure is now in place. Our Registrars Team continued to provide a compassionate and professional service, as well as a successful relocation to the Council Building. Our Licensing Team supported businesses with the ability to trade during difficult conditions. Throughout the pandemic period involving working from home, the HR Team have ensured that staff and elected members continued to be paid accurately and on time, processing back-dated pay awards and additional Scottish Government additional Covid Thank You payments to staff timeously. Statutory returns have been completed with accuracy and on time. Case Study: Supporting the Community 2021-22 The year ending 31 March 2022 was the second year of the COVID-19 pandemic and the citizens and communities of Perth and Kinross continued to need additional support to help mitigate the impacts of the health crisis. Effective collaborative working between Revenues & Benefits, Finance and Economic Development Service ensured the Council made the best use of funds provided to tackle financial insecurity and to provide timely support to businesses and households. Over the last two years, the benefits and grants landscape became increasingly more complex. New support arrangements were introduced by government including Business Grants, Self-Isolation Support Grants, Low Income Pandemic Payment, Cost of Living Awards, Financial Insecurity Funding, which were in addition to traditional support like Housing Benefit and Crisis Grants. Despite the complexity and additional administrative burden, grants and benefits have been provided to the communities of Perth and Kinross in 2021-2022 as set out in the table below. Page 62 of 118
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Appendix 1 CDS BMIP 2022-23 Page 7 A 20% growth in the number of rateable lands and heritages in Perth and Kinross over a five-year period, the growing financial pressure on businesses and the passing of the Non-Domestic Rates (Scotland) Act 2020 (the first rating Act since 1975) highlighted how Non-Domestic Rates can be used to deliver support to businesses. In addition to grant payments, a total of £23.6m was awarded in rates relief and reductions in 2021-22. The Welfare Rights and Scottish Welfare Fund Team continue to support our citizens and communities with welfare benefit advice, representation, and payment of support grants. The team’s efforts generated a minimum of £5.3 million in benefit gains which went directly in the pockets of Perth and Kinross residents. The team assisted around 5,000 households and had a Benefit appeals success rate of 84%. A summary of the key support payments and activity range is shown below: Activity £ Volume Housing Benefit £19.80m 4,900 Council Tax Reduction £6.80m 8,600 Self-Isolation Support Grants £1.46m 5,154 Low Income Pandemic Payment £1.30m 9,968 Discretionary Housing Payments £0.85m 3,002 Community Care Grants £0.72m 1,478 Crisis Grants £0.43m 5,286 Financial Insecurity Fund TBC 995 Case Study: Upgrade of Building Management Systems (BMS) In 2020, the Property Services instructed works to over 70 sites with BMS. System software was amended, and new controllers installed on site to maximise plant efficiency, reduce energy consumption, reduce carbon emissions, and improve site comfort levels. An investment of £300,000 included the upgraded remote monitoring system which was adapted to maximise analysis and improve data management of the sites. Alarm functions were also adapted to increase system performance and improve compliance of the property estate portfolio. Page 63 of 118
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Appendix 1 CDS BMIP 2022-23 Page 8 Savings and key success factors to date from August 2021 to May 2022 are as follows: • Reduction in energy Consumption - 2,137,902 kWh • Reduction in CO2 emissions - 347 tonnes. (35% of annual savings target) • Cost reduction - £70,000 (ROI will be achieved in under 4 years) By 2024, the target is to have 100 sites remotely connected to the system, further reducing energy consumption, CO2 emissions and energy costs. These good practice principles for energy management have delivered financial savings that have been diverted to support frontline services. We are recognised as a leading council in energy and carbon reduction through the Chartered Institute of Public Finance and Accountancy (CIPFA) annual benchmarking exercise. CDS Priorities for 2022/23 An external review during the first part of 2021 highlighted many strengths across the Council’s finance function. It also focussed on opportunities to enhance its value contribution through investment in systems, processes and people and the development of a Financial Strategy which will inform the budget setting process over the next 5 years. The Financial Strategy is being developed in tandem with the new Transformation and Change Strategy to help address the financial challenges facing the Council. One of the four elements of Transformation and Change will be re-structuring and consolidation of dispersed corporate activities. This will include a review of the Finance functions which will focus on the consolidation of resources and the streamlining and modernisation of processes. The new Democratic Service team are looking forward to working with the newly elected council to facilitate smooth and effective governance and improved decision-making. To better support our elected members, a comprehensive induction and member development programme has been developed. Open and transparent democratic decision-making is a key element of effective governance. We will review governance arrangements to ensure that the democratic service is modern, efficient, effective, and accessible to the public; continuing to live stream Council and Committee meetings, developing the capacity to facilitate hybrid (virtual/in person) meetings, and adapting our procedures, processes, systems, and structures to ensure that we can deliver the best possible service. The ongoing health, economic and social situation arising from the Covid 19 pandemic continue to affect businesses and our communities. Significant increases in the cost of living, with inflation reaching a 40 year high of 9% and forecast to rise higher, increasing food prices and further rises in the energy Page 64 of 118
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Appendix 1 CDS BMIP 2022-23 Page 9 price cap are placing acute pressures on households and businesses. The demand levels for customer services, welfare support and advice, crisis grant applications and other financial support schemes is therefore expected to continue to rise. It is anticipated our communities will continue to require support for some time to come, especially as COVID-19 related government financial support schemes end. Developing People, Skills, and Capacity This matters because people are our most valuable assets. The last two years have demonstrated that skilled, motivated people with a can-do approach make a difference to the lives of those who live, work, and learn in Perth and Kinross. The wellbeing of staff is paramount. Staff have been flexible and agile in meeting the many challenges thrown down by the pandemic. We need to attract and retain staff with the values, skills and behaviours which are critical to success; ensure our employment offer remains competitive and employ a diverse and inclusive workforce. Performance Summary for 2021/22 The Council is proud to be a Fair Work employer and to retain Living Wage Accreditation. We continue to apply the Fair Work principles of Effective Voice, Opportunity, Security, Fulfilment and Respect. We consult and engage with employees and recognised trade union representatives when developing or improving our employment practices and arrangements, many of which were adapted during the Covid pandemic. The procurement strategy requires fair work practices, including the Living Wage, and underpins our work with partner providers and commissioned services. We have continued to support the health and wellbeing of our employees through practical support, practices, and opportunities for learning, ensuring our people develop their capacity and resilience to deliver services. A new Employee Assistance Programme called PAM (People Assist Management) Assist which provides confidential counselling for employees, with 24/7 access to qualified counsellors for any psychological problems. Case Study: Developing Our Young Workforce and Career Pathways HR worked with apprentices, trainees, and their supervisors to design a new way of working that would provide the support they required during induction and throughout their training, whilst continuing to meet the stringent requirements of the Scottish Qualifications Agency (SQA) and Skills Development Scotland upon which our funding is reliant. Page 65 of 118
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Appendix 1 CDS BMIP 2022-23 Page 10 Apprentice/Trainee Teams chats were created, and regular Connections events continued providing opportunities for networking and personal development. These were supplemented by 1 to 1 meetings with both apprentices and their supervisors focused on achieving the qualification as well as personal wellbeing and additional support needs. One of the key aims of our apprenticeship and trainee programmes is to address current and anticipated skills shortages through the development of apprenticeship and trainee programmes and the creation of career paths for trainees. The increase in Early Years provision has resulted in the recruitment of additional Modern Apprentices in this area. Tailored Connections events and development activities were jointly designed and organised to support supervisors who were new to the PKC programmes and to help them best support their trainees and apprentices. In Adult Social Care, a new Service Level Agreement has been introduced to strengthen the delivery model. Plans are also in place to introduce a mentoring programme, group recruitment and induction to support networking and share good practice which will support our apprentices to develop careers in adult social care. Three new Graduate Apprenticeships in Road Building and Maintenance have provided career development opportunities for current staff which helped retain skills and experience, thereby enhancing in-house capacity and avoiding a recruitment exercise in what is a competitive skills market. CDS Priorities for 2022/23 We are proactively working with all Services to enable them to make informed decisions about their workforce requirements to ensure they are fit for the future. We are committed to creating a dynamic HR Delivery model to support the Council’s Transformation & Change Programme, ensuring agile and efficient HR support is available in the right place at the right time to enable smarter working across the Council. We have committed to building a framework to create greater mobility and flexibility in our workforce, embracing digital advances in technology and developing our employment offer to clearly articulate the values and behaviours developed as part of the Perth and Kinross Offer. Supporting the health and wellbeing of our employees remains a key priority as the organisation continues to adapt and incorporate the lessons of the pandemic to ensure the effective delivery of services to the people of Perth and Kinross. The ongoing impact of the pandemic on employee mental and physical health will remain an area of focus and more general health and wellbeing issues will also be a key priority to identify and address. Our activity will be directed using data from sickness Page 66 of 118
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Appendix 1 CDS BMIP 2022-23 Page 11 absence reports and from employee feedback which will be gathered directly from individual conversations, our DisABILITY employee network, employee surveys and other engagement activity. Health and Wellbeing is integral to the priorities in our Corporate Workforce Plan 2021-23. We will use external frameworks to access resources and ideas and to ensure that our progress can be measured using acknowledged best practice; we have signed up to the Development stage of the Equally Safe at Work programme, part of the Scottish Government’s strategy to eradicate violence against women and girls and will take forward an action plan of education and support to achieve this standard. Exploiting Digital Opportunities and Data Insight These matter because digital technology and information continue to underpin every service in the organisation and are strategic enablers which will establish new frontiers for how the Council delivers services in the future. Pioneering data analytics and visualisation tools will enable us to use data to tell a compelling story and provide colleagues and elected members with evidence to make better financial, strategic, and policy decisions. Performance Summary for 2021/22 The full fibre infrastructure, delivered via the Tay Cities Local Full Fibre Network (LFFN) project, is now in place. Focus has now moved to “lighting up” connections to dispersed Council offices and schools, to provide secure access to centrally stored systems and Internet resources. It is anticipated that this work will be completed for most connections by the end of 2022. The cross-disciplinary Digital Participation Working Group, chaired by the Chief Digital Officer, brings together Services and external partners to promote opportunities for helping citizens at risk of digital disadvantage. The Group has been instrumental in facilitating training for a network of local digital champions; investing in loan laptops for citizens’ use; and funding a range of creative digital projects nominated by local community groups via a Digital Inclusion Fund. Research into levels of digital participation across Perth & Kinross has been commissioned to baseline the local position and inform future digital participation initiatives Following a competitive tendering exercise to replace the SWIFT Social Care Case Management system, a contract was entered into with the Servelec Access Group in February 2022 for the supply of their MOSAIC Social Care Case Management product. Page 67 of 118
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Appendix 1 CDS BMIP 2022-23 Page 12 Case Study: Data Literacy Data literacy can be defined as the ability to work with data – to capture and maintain it correctly, to analyse it, to use it to gain insight and to communicate with it effectively. Data literacy improvement is important for any organisation seeking to make better use of data. Recognising this, our Data & Analytics programme incorporates high-level objectives to improve data literacy across the organisation. The Council’s data literacy improvement plan sets out a blended approach to improvement; it started with an initial assessment of data literacy across council services, using an online questionnaire supplemented by workshops with various staff groups. This assessment was used to establish a baseline and inform approaches to improvement. A key element of the improvement plan is communications and engagement, to ensure that staff are generally ‘data aware’. The festive period of 2021 provided an ideal opportunity to run a communications campaign which provided information about the data and analytics programme in a light- hearted, non-technical and innovative way under the banner ‘12 Days of Data’. PKC research identified that while data literacy improvement is an emerging area of interest, there is little in the way of mature best practice examples. The 12 Days of Data campaign set out to address feedback that data and analytics related communications are often perceived to be overly technical and difficult to understand. It used non-technical language and Microsoft Teams based channels that staff were already comfortable with. The main learning point being that data and analytics is relevant to everyone and is not just for the specialist. Feedback from the 12 Days of Data campaign has been positive, with high levels of interaction with the daily posts on MS Teams. The use of a seasonal theme encouraged engagement and each of the daily posts over the 12 days incorporated a small snapshot of information that was easier to digest than longer, more formal learning materials. The campaign also encouraged staff to visit our MS Teams Data Centre channel, building a community which will go on to participate in future data literacy improvement activities. This will include the development of targeted data literacy learning pathways and training modules, and of course further awareness raising communications. Page 68 of 118
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Appendix 1 CDS BMIP 2022-23 Page 13 CDS Priorities for 2022/23 Our COVID experience underlined the importance of our whole-Council mobile working and online services platforms to front line services and integrated working. We will continue to develop and improve these platforms to empower staff working in our communities to capture, access and exchange the data they need, while on the move and to provide anytime / anywhere access to a wider range of quality online services. Technology has never been more important for shaping and delivering services; evolving our hybrid working model; and communicating with each other, with citizens and partners. How we are developing our ICT / digital infrastructure, capabilities, capacity, leadership, and skills matters more than ever. A fresh, fit for the future Digital Strategy continues to be developed, against the backdrop of post-COVID remobilization; the maturing Perth & Kinross Offer and the emerging Transformation and Change Programme. Implementation of Mosaic as the Council’s new social care platform is opening new opportunities for streamlining processes; and information sharing between Services and support partners, like the NHS. This means re-thinking the way we work to develop this key business system as a tool to be used by citizens to engage meaningfully with us, rather than a tool we use to do things for them. The Mosaic programme team is working towards a potential go-live date in September / October 2023 Perth & Kinross Council is increasingly adopting cloud solutions at points of change, with the pace of this migration accelerating because of commercial decisions by vendors to make new / updated business systems only available as cloud services. Cloud solutions offer potential for increased business system flexibility, scalability, and agility to enable our new hybrid working model. Migrating a system to the cloud requires a collaborative approach between Services, Information Security; Data Protection and IT to ensure the cloud / hosting arrangements we sign up to keep our data safe, accessible, reportable, and recoverable. The whole cloud “lifecycle”, from acquisition / migration to repatriation of data at the end of a contract needs to be managed and monitored. One key system moving to a cloud-based solution is the integrated HR and Payroll system ‘ResourceLink’.This is due to be migrated over the summer of 2022. The Council’s Data and Analytics (DA) programme continues to build the capacity and create the capabilities necessary for introducing new technologies. These tools are starting to be used effectively and delivering benefit. Page 69 of 118
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Appendix 1 CDS BMIP 2022-23 Page 14 An example is Power BI - Covid Cases Daily Report. In mid-2021, Covid case numbers started rising rapidly again, and there was a need for fast and easy access to the most accurate case figures to aid the Council and Health & Social Care Partnership’s response and resilience planning. A Power BI report was developed by the IT Data Services team to provide both daily headline case figures and a series of interactive visualisations which can be used to understand and analyse case numbers by neighbourhood, demographics, and time. The Power BI Covid Cases – Daily Update is highly innovative and illustrates the new capabilities now available as outputs from the data and analytics programme. Interactive Power BI visualisations which are easy to interpret and understand used trustworthy data extracted from NHS source automatically using new data pipelines. Our work is continuing from a proof-of-concept solution, illustrating how we can build data insight using Microsoft Power BI – the Council’s new analytics platform. Protecting our Physical and Information Assets These matter because our property and infrastructure assets (including schools, houses, offices and depots, and other infrastructure) are an integral element of effective service delivery and capital funding stimulates development and regeneration in local areas. Our information is also a valuable business asset, critical to effective strategic and operational decision-making across the organisation. Page 70 of 118
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Appendix 1 CDS BMIP 2022-23 Page 15 Performance Summary for 2021/22 Case Study: Records and Information Security We implemented successfully the Corporate Digital Platform programme, which was a multi-faceted project, designed to streamline and modernise paper processing activities across the organisation and ensure compliance with our legal requirements in terms of public records management. This programme delivered a digital mailroom and introduced hybrid mailing resulting in financial savings, efficiencies, and a reduction in use of paper. It also included the design and delivery of an Electronic Document Management System (EDMS) and the ongoing digitisation of paper records. Successful delivery of a corporate EDMS was a fundamental element of the Council’s Records Management Plan, which is submitted to the Keeper of the Records of Scotland (the Keeper) to ensure compliance with obligations under the Public Records (S) Act 2011 (PRSA 2011). The EDMS will keep the council on track as a “digital by default” organisation, producing savings in electronic storage and legacy file server systems. EDMS supported the delivery of services during the pandemic by enabling access to files from remote work locations and own devices and will be integral to the success of new hybrid working models. On receipt of the Council’s progress update review (PUR), the Keeper’s team commended PKC on continued compliance with both the spirit and letter of the PRSA obligations. The Keeper’s team was especially pleased that PKC has not only implemented EDMS but had approved records retention across the Microsoft 365 platform. The next phase of the EDMS project will focus on records management capability within Business Systems. We have continued to make strides in improving the council’s cyber resilience considering the current heighted risks. Over the last year, we have implemented a Cyber Incident Response plan (CIRP) and Incident Response Team. This includes several cyber-attack playbooks. Continuing measures to enhance our cyber-resilience include: • Procurement of phishing simulation software • Senior management and elected member cyber security exercises and briefings by the Scottish Business Resilience Centre Page 71 of 118
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Appendix 1 CDS BMIP 2022-23 Page 16 • Cyber Response plan testing • Cyber maturity assessment by Quorum Cyber who are the Security Operations Centre partner • Revise business continuity plans with a focus on cyber resilience • Building in-house expertise through a staff member undertaking a cyber security degree (which is fully funded by Skills Development Scotland), and recruitment of a cyber graduate apprentice Case Study: Riverside Primary School The new Riverside primary school is set to be one of Scotland’s first Passivhaus certified primary schools. The move to Passivhaus certification in our schools is in response to the Climate Change Strategy and Action Plan adopted by Perth & Kinross Council in December 2021. The internationally recognized Passivhaus standard delivers buildings with a much lower reliance on operational energy than the typical standard in Scottish construction. It delivers this through rigorous quality control processes and technical requirements during both design and construction. The Passivhaus standard helps lower our CO2 emissions and gives us the assurance that Perth and Kinross Council will meet the energy requirements for funding set by the Scottish Futures Trust (SFT) Learning Estate investment programme (LEIP). Page 72 of 118
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Appendix 1 CDS BMIP 2022-23 Page 17 Passivhaus not only sets a construction standard which PKC will need to attain in its move to a zero-carbon estate, it also moves us towards delivering on the construction quality outcomes as highlighted in the Cole report in 2017. To deliver better quality assurance and control, the report recommended independent third-party quality checks and better design team integration throughout the project stages. Passivhaus is the only independent certification scheme which delivers both. The school is currently on site, with completion in spring/summer 2023. Case Study: Maintenance & Investment Team There has been an increase in maintenance demand via our Help Desk (HD Requests) since lockdown and an increase in volume of maintenance delivered since the pandemic. This challenge has been met by the team with a positive attitude and transparent discussion with clients, resulting in no major failures or disruptions to Service delivery (through building availability) across the Council. Close working relationships and proactive budget management within first quarter of 2021/22 realised £350k of energy savings due to effective energy management to fund a backlog of Cemetery walls issues that were needed to ensure public safety. These works are progressing in conjunction with Bereavement Services. The Unpaid Work Team have been working closely with Maintenance teams and communities to make best use of available budgets and in the spirit of the Perth & Kinross Offer. Together, we have painted several community facilities at minimal cost, to the satisfaction of the Community groups. 0 2000 4000 6000 8000 10000 £0.00 £500,000.00 £1,000,000.00 £1,500,000.00 £2,000,000.00 £2,500,000.00 2015 2016 2017 2018 2019 2020 2021 No. Of HD Requests Value (£) Years Reactive Maintenance Summary Budget Spend HD Requests Page 73 of 118
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Appendix 1 CDS BMIP 2022-23 Page 18 Case Study: Ventilation Improvements and Installation of CO2 monitors. Following lockdown in March 2020, Property Services commenced an exercise of surveying all PKC buildings. This exercise assessed the adequacy of existing ventilation arrangements to be able to mitigate the risks of Covid-19. The surveys identified several actions, including re-programming of existing ventilation systems, repairing windows, accelerating servicing of equipment, and installing additional ventilation in numerous buildings to ensure they could be put into operation safely. These actions were all undertaken in accordance with Industry and Scottish Government Guidance available at the time. In tandem with this exercise, the team also used Integrated Environmental Solutions (IES) dynamic modelling software to ensure the ventilation strategy adopted for each building would be effective. During this process and through dialogue with Scottish Futures Trust and the Scottish Government, Perth & Kinross Council were identified as one of the leading Councils with a well-developed strategy to mitigate the impact of Covid -19 within its operational buildings. As such many of the actions suggested by Scottish Government in their document ‘Coronavirus (Covid –19): guidance on reducing the risks in schools were developed by the Council’s Energy and Engineering Team. In collaboration with Education & Children’s Services and installation contractors, the team were also key drivers in the successful CO2 monitor roll out across schools to meet Scottish Government targets. The Council was one of the few Councils to fully meet the initial Scottish Government target of 1 device per teaching and learning space. The early data from this exercise was again used by the Scottish Government to develop their ongoing strategy to ensure an appropriate response to the Covid –19 pandemic. CDS Priorities for 2022/23 Maintaining / Improving our Property Estate: Over the last two years, Property Services was diverted from much of its capital works to deal with essential covid safety measures across the estate. There has been an escalation of maintenance demand due to pent up issues during lockdown, remobilisation of properties, overall estate condition and complexities in working in Covid environment. The focus for 2022/23 is managing the increasing demand for maintenance within available budgets. An escalation in contract costs tied to CPI (Consumer Prices Index) combined with national supply chain difficulties with materials and resource supply will also bring significant challenges. National tender price inflation is affecting contracts planned to be awarded in 2022/23 and the amount of work deliverable in current / future planned programmes. Cyber-attacks are increasing in prevalence and in the potential damage they can do. Our security landscape is continuously evolving to anticipate and prevent unauthorised intrusion, to keep our valuable information assets Page 74 of 118
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Appendix 1 CDS BMIP 2022-23 Page 19 secure. CDS is partnering with external specialists to implement a managed 24/7 Cyber Security Operations Centre (SOC). This will significantly enhance our security capacity and capabilities for early threat detection, containment, response, and remediation. Encompassing the use of automated machine learning and advanced modelling techniques to combat cyber-attacks, our SOC will put us at the forefront of threat protection in the Scottish public sector and help us keep pace with emerging threat advances, deliver 24-hour monitoring, provide early warning of possible rogue activity and trigger professional, informed incident responses to suspected threats. Our IT infrastructure and networks protect our systems with up-to-date cyber- security measures and have PSN (Public Service Network) accreditation. The move towards achieving the Scottish Government targets of net zero by 2045 and intermediate reduction targets before then, requires to be embedded in all corporate decision making. CDS will be involved in facilitating the necessary changes in practices to achieve these statutory targets. Improving our Customers’ Experience This matters because, like getting the basics right, our external and internal customers expect to have an excellent experience when they use our services. Our internal processes need to be lean providing efficient, timely and accurate information to our customers at first point of contact and throughout the duration of their interaction with the Council. Our ambition is to continue to embrace the Customer Service Excellence Model. Performance Summary for 2021/22 Case Study: Procurement Team and Community Benefits As part of our Sustainable Procurement Policy, the Procurement Team ask suppliers to work in partnership to support local communities in a real and sustainable way, thereby creating a positive social impact from contracted spend. In recognition of our creative, community-focussed approach to Community Benefits in Procurement, the Procurement Team were winners of the “Social Value” category in the 2020 National Procurement Awards – Scotland’s leading public procurement awards. This was followed up with a Highly Commended award at the 2020/21 UK National GO Awards. Page 75 of 118
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Appendix 1 CDS BMIP 2022-23 Page 20 To help both communities and suppliers get the best out of community benefits, we created an innovative way for local organisations to ask for what they needed – the Community Benefits Wish List. Local communities can add to the Wish List using our online Community Benefits Wish List form, explaining what they need for example, sponsorship, donations of material or labour, presentations, work experience placements, etc. A list of all current requests on the Wish List is published on our procurement pages, alongside an interactive map showing the location of the requests. This offers suppliers a straightforward way to connect with communities and organisations who have a defined need and to be able to identify the type of benefits they, as a contractor, could supply. To date, a wide-ranging array of benefits have been delivered by suppliers, including placements for prison leavers, financial support for local charities, employment opportunities and careers workshops for young people. The Procurement Team work hard to raise awareness of this approach, working closely with the Supplier Development Programme to promote the initiative amongst SMEs. We have demonstrated our Wish List approach at various Procurement and Economic Development forums, including as part of a Community Engagement Workshop at the Annual National Procurement Conference. The workshop was attended by more than 100 delegates, and there is now UK-wide interest in our approach. Our Community Benefits approach has been included in a Scottish Government publication, measuring social impact in public procurement: SPPN 10/2020 and was part of a case study created by SCRIG (Scotland’s Centre for Regional Inclusive Growth). Case Study: Child Abuse in Care Redress Scheme The Redress for Survivors (Historical Child Abuse in Care) (Scotland) Act 2021 led to the establishment of a financial redress scheme. Claiming redress requires people to provide evidence of their care experience; one of the ways this can be obtained is by people exercising their right to make a subject access request for the information about them which is held by the authority. It was recognised that many requestors were also seeking information about their life experiences, to make sense of what were often difficult and traumatic experiences. This led to a significant increase during 2021/22 (19% more than during 2020/21) in the number of people exercising their right to access information about themselves (or about deceased partners or parents) held by Perth and Kinross Council. These requests were frequently for large volumes of sensitive and distressing information, which require processing to remove Page 76 of 118
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Appendix 1 CDS BMIP 2022-23 Page 21 third party and other information, before they can legally be released. The volume of work which the Information Governance team was dealing with led to delays in responding to people at what was often a time of heightened emotion. Working with Education and Children’s Services, additional funding was secured to employ two officers to deal primarily with requests for historical care records. This additional resource has resulted in an improvement in the time taken to respond to requestors, with almost all requests relating to care experience being responded to, either in full or partially, within statutory timescales. Ongoing training will enable staff to access information held on social work systems which will streamline and speed up the service provided to requestors. They will also use the Archives held by CulturePK to look for evidence when no records are held on social work systems. Recognising the distressing content of many records, the Information Governance team has developed communications which direct individuals to contact external support organisations. When no information is held, members of the team provide guidance on where requestors could try to find evidence. All requestors are treated compassionately and with empathy, and there is a recognition of the particularly difficult circumstances of people who are seeking evidence for the Redress Scheme. CDS Priorities for 2022/23 Whilst interrupted by the 2-year pandemic, it is planned that development work will restart in 2022/23 to develop an ambitious Customer Service Strategy. This will include a new model of service, customer insight and engagement and developing customer engagement based on the national Customer Service Excellence model. We will continue to promote digital channels and make sure no citizen is excluded. We are investigating opportunities for new and emerging technologies including webchat to improve service operation and design. This will be aided by robust demand analysis Page 77 of 118
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Appendix 1 CDS BMIP 2022-23 Page 22 Working Smarter This matters because a strategic and integrated approach to people, technology and property is essential to improving how we work as a Council to support delivery of the Perth and Kinross Offer. Our experience in responding to the Covid 19 pandemic has demonstrated that as an organisation we can implement radical change at pace and scale. We will therefore continue to challenge our traditional assumptions about work and workplace, embrace different ways of working which improve productivity, enhance the employee and customer experience, and achieve better outcomes for our communities. Performance Summary for 2021/22 Working Smarter has meant being more flexible about what we do, how we work, who we work with, when and where employees work – ensuring we optimise use of buildings, workspace, and technology to find new and more effective ways of doing things. It is also about supporting wellbeing, enhancing employee experience, and promoting positive life work balance. Over the last year, we have seen a stop start impact in terms of remobilising our offices, in line with public health requirements as prevalence of Covid-19 changed across the country. A gradual return to corporate offices was facilitated in line with emerging public health guidance from early 2022. This return was assisted with new HR guidance on hybrid working and the installation of IT equipment to facilitate hybrid meetings in additional offices. The return has also seen a reduction in paper files facilitated by new ways of working and the new EDMS. Office based staff are now settling into new hybrid working patterns and Covid public health restrictions have been eased. Maintaining a healthy and safe work environment for all remains a priority and everyone has a responsibility for looking after themselves and respecting each other. A range of good practice mitigations and support remain in place to safeguard the health and wellbeing of staff, elected members, and members of the public. These include promotion of the Distance Aware Scheme. Priorities for 2022/23 Over the next few months, we will be working with teams in offices to review workspace requirements based on how they are using hybrid working; this will help determine overall space requirements and consider the need for quiet spaces, collaboration spaces, bookable rooms with and without hybrid meeting equipment. Page 78 of 118
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Appendix 1 CDS BMIP 2022-23 Page 23 This exercise will ensure we are making best use of our office accommodation and digital kit, supporting staff to work flexibly and to aid productivity. ORGANISED TO DELIVER Governance and Management Structure of the Service CDS has the key resource functions relating to people, money, property, and information. This brings together the key strategic enablers of change and transformation. It also is the central service which supports the Council’s democratic processes and civic role and manages the governance framework. CDS provides specialist customer services directly to the communities of Perth and Kinross through its Registrars, Licensing, Information Governance, Local Taxes & Benefits and Welfare Fund & Welfare Rights teams. It also provides the Council’s general enquiry service for residents, businesses, and visitors through the Customer Contact Centre. CDS employs 522 people working a full time equivalent of 464 permanent employees across a diverse range of functions and activities. CDS fulfils a significant role in the Council’s leadership and governance structure. With representation on the Executive Leadership Team, CDS provides the core expertise in corporate resources, digital / IT, legal and financial advice to the Chief Executive, Executive Directors, Elected Members and Conveners of Committees of the Council. Key statutory roles are held by officers within CDS; Monitoring Officer (Head of Legal & Governance Services), Section 95 Officer (Head of Finance) and the Data Protection Officer. The Head of IT & Revenues is the Chief Digital Officer. Heads of Service and Senior Service Managers are members of the Extended Executive Leadership Team (EELT). Many also have leadership roles on several key groups and Boards within and out with the organisation and contribute to the national policy and strategic agenda via Cosla or their respective professional associations. Page 79 of 118
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Appendix 1 CDS BMIP 2022-23 Page 24 This ‘At a Glance’ Diagram of Corporate Services shows the different Divisions and teams within the Service and a brief outline of their responsibilities. More detail can be obtained on our ERIC page Here Customer Focus and Community Engagement Customer Experience is normally associated with external customer contact and service teams who deal directly with the public. However, our internal customers are just as vital (the next person in the process is your customer). Employee experience is at the heart of HR service delivery. Customer engagement and improved communication with customers across all the Service’s work will be progressed to ensure CDS is listening carefully to its customers’ needs, and to develop exceptional levels of insight into how it could transform and improve to the benefit of customers. We also directly provide customer services to the public in line with the Customer Service Excellence Standards (Formerly Charter Mark). The Welfare Rights Team already hold accreditation at the highest level possible for Welfare Benefits Advice and Representation at Courts and Tribunals. Working proactively with Scottish Government and partners, Welfare Rights staff share best practice and influence guidance and process to ensure policy objectives are optimised. LEGAL AND GOVERNANCE FINANCE PROPERTY HUMAN RESOURCES IT And REVENUES Legal Services Digital Services Central Accounting Corporate Landlord HR Resourcing & Wellbeing Civic and Committee Services Customer Contact Centre Members Services Financial Planning & Budgeting Capital Works, Quantity Surveying & Project HR Services Local Taxes & Benefits Information Governance Data Analytics Registrars Procurement Premises Management HR Performance & Systems IT Operations Licensing Insurance, Incomes & Financial Systems Compliance Payroll and Reward Internal Audit Welfare Fund &Welfare Rights Page 80 of 118
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Appendix 1 CDS BMIP 2022-23 Page 25 Preparing our People for the Future People are the Council’s most important asset and remain at the heart of everything it does. The people who work in CDS are dedicated and committed to public service and use their talents and skills to provide the best possible services to our customers and communities. We remain committed to investing in the support and development of our employees – providing 1:1 time, team discussions, wellbeing support and access to learning and development – leadership training, continuing professional development, digital skills, and certificated qualifications. The Council’s Corporate Workforce Plan (2021 – 2023) (Report No. 21/84 refers), together with the Organisational Development Plan and Health & Wellbeing Plan, collectively set the direction for how we develop our workforce for the future. These plans will evolve to support and enable the Transformation and Change Programme, with engagement and consultation with employees and trade unions throughout. The Service continues to have a strong track record of employing modern apprentices and professional trainees, as well as offering graduate work experience opportunities across all our teams. This approach ensures a pipeline of talent for future roles. CDS currently provides twelve opportunities for trainees, working across Energy and Engineering, Data analytics, Payroll, Internal Audit and Legal services, with a further three opportunities in Cyber Security and HR. The pandemic has changed the way we live and work; in CDS many teams have continued in their normal workplace with changes in work practices – for example, Registrars, IT, and property teams. Many staff were working from home and are now settling into new hybrid work patterns, where this is appropriate for the customers they serve. Keeping people safe and promoting wellbeing remain priorities for the Council as an employer of a large and diverse workforce and we continue to work collaboratively with trade unions on health and safety and employment matters. We are ambitious for how we enhance the collective contribution of CDS in service delivery to our customers and communities and in how we support and enable the Council to achieve its priority outcomes. With increasing demands and reducing resources, how we work is as important as what we do. We will continue to develop: • Strong relationships that enable CDS to act as professional adviser and as a critical friend. Influential and solution focussed people that are connected, astute and politically aware, providing relevant and timely advice that leads to more informed decision making and better outcomes. Page 81 of 118
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Appendix 1 CDS BMIP 2022-23 Page 26 • Confident and visible leaders who understand public services, role model technical excellence and lead by example. • Skilled people equipped with the knowledge, skills, and experience to achieve our priorities and meet future challenges. • Clear career frameworks and succession planning arrangements that define roles and set expectations of our people, to support the attraction and retention of high-performing and diverse talent. • Team structures and ways of working that promote collaboration, integration, and knowledge-sharing. • Clear, consistent, and accessible data governance, helping to protect data integrity, and improve evidence-based decision making. • Effective risk management that is integrated and embedded into our core business processes and a review of the Council’s risk appetite. • Enhanced reporting and monitoring of strategic financial performance and associated risks, that informs governance, decision making and financial management for the Council. Partnership Working Our values drive our behaviours and actions in all that we do. These are Ambition, Compassion, and Integrity. Our staff are also expected to demonstrate strong ethical behaviour, respecting the rule of law and the appropriate codes of conduct. Our Service includes several professional disciplines, each subject to its own governing body and professional standards. We provide support for continuing professional development and learning for all to maintain and develop skills and knowledge to enable us to continue to provide the best possible advice and support. Our approach to working with our customers and stakeholders is to be collaborative, supportive, enabling, and agile. Our approach is to work collaboratively with Services and Partners to deliver the best possible outcomes for our citizens and communities. Several key community-wide developments and service activities will be supported by officers in CDS. Some examples include: Page 82 of 118
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Appendix 1 CDS BMIP 2022-23 Page 27 • Major construction projects such as Cross Tay Road Link Road, City Hall Museum, and enhancements to the school estate. • Comrie Flood Protection Scheme • Child Poverty • Support for asylum seekers and Ukraine refugees • Health & Social Care – Review of the Integration Scheme • The Perth and Kinross Offer • Local Action Partnerships • Work with Third Sector to ensure seamless referrals to welfare rights • Community Vaccination Centres and Food Support • Wellbeing Economy Alliance - UNCRC (United Nations Convention on the Rights of the Child) focussed pilot project in Letham • 2022 Transformation and Change Programme. We want every member of CDS to fulfil their respective professional roles to the best of their ability and take ownership in leading, piloting innovative ideas, learning from others, and improving outcomes for communities and citizens. Collaboration with other functions is essential in the delivery of this plan. We will continue to promote a One-Council approach, share knowledge and information, solve problems together, and develop creative solutions jointly to drive better quality outcomes for our communities. Financial and Resource Management CDS itself has a net revenue budget of £36.4m in 2022/23 which represents 8.8% of the Council’s Revenue Budget. CDS has direct responsibility for a capital budget of £57m through to 2028/29, split between IT and Property Services. Property Services makes up £17.5m, 48% of the CDS Net Revenue Budget. Our considerable property estate needs to be maintained to high standards to address conditions issues as well as challenges relating to climate change, Net Zero and emerging technology and legislation. In the next period, it is anticipated that demand for maintenance will continue to exceed previous levels of activity. Currently, the construction market is highly volatile and unpredictable in the short to medium term, and this is problematic for investment planning because of cost uncertainty and concern over the supply of labour and materials. Page 83 of 118
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Appendix 1 CDS BMIP 2022-23 Page 28 IT investment ensures our core infrastructure components (servers, cyber security, user devices, Microsoft estate and business systems and telephony etc) provide a stable platform from which to build digital and transformative change. It ensures the technologies needed to deliver frontline services remain up to date, secure, available, and developed to meet evolving customer needs and the Council’s emerging operating model. The last two years have also seen seismic disruption to IT supply chains with lead times for some equipment increasing from 3 weeks to 13 months. This volatility and unpredictability are likely to continue into 2023. Budget monitoring for the overall Council revenue budget of £430million and capital budget of £640m through to 2028/29 is reported to the new Finance and Resources Committee. The Investment Blueprint and Delivery Plan will ensure investment decisions support corporate objectives and priority outcomes - investment in maintaining and developing the assets which are used to deliver services (including schools, houses, operational buildings, and infrastructure) and the utilisation of capital funding to stimulate economic development and regeneration in local areas are essential enabling activities. Delivery of the Council’s ambitious capital programme supports key outcomes such as tackling climate change, cultural transformation, and improving the school estate. A graphical representation of CDS’ Net Revenue Budget and FTE is shown below. Page 84 of 118
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Appendix 1 CDS BMIP 2022-23 Page 29 Performance, Self-Evaluation, and Risk Management The Service makes a significant contribution to the overall strategic objectives directly through our service delivery, and through our professional advice and support to other Services and Partners in all that they do. CDS participates in the cross-service Planning, Performance and Risk (PPR) group as part of the corporate policy and governance arrangements. CDS is committed to embedding self-evaluation and performance management across all teams to drive improvement and more integrated ways of working. CDS welcomes the new modernised performance reporting system procured in Spring 2022 by the PPR group lead officer. This will help us to embed effective performance management principles and disciplines throughout the Service. Our 2021-22 performance against key corporate indicators will shortly be available on our web site at, PK Performs selecting ‘Organised to Deliver’. Previous year’s performance indicators are available online now. Page 85 of 118
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Appendix 1 CDS BMIP 2022-23 Page 30 As part of the business planning process for 2022/23, CDS undertook a PESTLE and SWOT analysis to gain insight into the emerging demands and risks which may affect our performance and the organisation’s capacity to deliver services. This insight helped shape our improvement priorities. We are aware of Audit Scotland’s recommendations (Best Value Assurance Report August 2019) around improving how performance management and performance reporting is used to drive continuous improvement, and we are investing resources to change the way we use data and information. Work has commenced on developing a balanced scorecard within our performance management arrangements. Effective risk management is a key element of the Council’s system of internal control and an essential element of good governance. CDS has responsibility for the development and management of the Council’s Strategic Risk Management Framework; ensuring that there is a consistent and coherent approach taken across the organisation to the identification, assessment, analysis, mitigation, and management of strategic and key operational. An update to the Strategic Risk Register will be presented to the appropriate Council Committee in summer 2022. As the core corporate functions, CDS are the risk owners in relation to several of the key risks facing the Council including financial management and accountability, information security, workforce, and corporate governance. As key enablers of change and transformation, CDS also play a key role in supporting the organisation in managing and mitigating the spectrum of strategic risks from reducing the impact of climate change to tackling poverty and inequality across Perth and Kinross. Involving and engaging staff in the critical agendas of equality and fairness, sustainability and climate change will ensure everyone can contribute effectively. Financial Resilience Corporate Governance Workforce Information Security Page 86 of 118
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Appendix 1 CDS BMIP 2022-23 Page 31 As part of our business planning activity during 2021-22, CDS regularly reviewed the opportunities and threats emerging from the external environment and updated its Service Risk Register. KEY PERFORMANCE INDICATORS The section below provides 2021/22 performance indicators where the information is currently available. The remaining indicator will be updated later this year when the information becomes available. Comments on Performance Indicators Council performance in the Corporate Services’ indicators has mirrored the national experience during the COVID-19 pandemic. The 2021/22 performance in respect of these indicators shows that as the restrictions have eased, performance levels are returning to normal ranges. Page 87 of 118
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Appendix 1 CDS BMIP 2022-23 Page 32 Sickness absence has increased from an average of 8.3 to 10.9 days for non- teaching employees. This excludes Covid-related absences. The requirement for most staff to work from home changed the way we work and meant resources, systems, processes, tools, and technology being deployed very differently. Working digitally and from home and recording COVID-19 absences differently saw reductions in sickness absences, in line with other organisations in 2020/21. Our sickness absence indicators continue to be impacted and these are being closely monitored. We have identified some factors that we consider have contributed to increases in absences and these are used to shape our wellbeing support for employees, including advice and support for managers. We will continue to work with our trade unions and professional associations to prioritise support for the health and wellbeing of our workforce who are essential to delivering the best possible services to the people of Perth and Kinross. Page 88 of 118
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Appendix 1 CDS BMIP 2022-23 Page 33 Contact Us For further information on any aspects of our Business Management and Improvement Plan, please contact any of the following officers: Page 89 of 118
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Appendix 1 CDS BMIP 2022-23 Page 34 Links to relevant documents Community Plan and LOIP 2017-2027 Corporate Plan 2018-2022 Corporate Workforce Plan 2021-2023 Revenue budget and Reserves Strategy Report Feb 2022 Local Government Benchmarking Framework Report 2020-21 All Annual accounts Council budgets Past Council Strategies, Performance Reports and Business Plans Best Value Assurance Report 2019 Page 90 of 118
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PERTH AND KINROSS COUNCIL Finance and Resources Committee 15 June 2022 LOCH LEVEN GUIDANCE Report by Head of Planning & Development (Report No 22/125) 1. PURPOSE 1.1 This report summarises the comments received during the consultation on non-statutory planning guidance published for consultation in 2021. It follows a similar report (Report No. 22/95) to the Kinross-shire Local Committee on 21 April 2022. That report sought the views of the Area Committee on the guidance. These have been incorporated into this report which seeks approval to finalise and adopt the guidance document to support the Local Development Plan (adopted November 2019) as non-statutory Supplementary Guidance. 2. RECOMMENDATIONS 2.1 It is recommended that Committe: • approves the Loch Leven guidance to support the implementation of Policy 46 of the Local Development Plan. 3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Background • Section 5: Key Concerns, Responses and Proposed Changes • Section 6: Conclusion • Appendices 4. BACKGROUND 4.1 The Loch Leven Special Protection Area and Ramsar Site planning advice addressing phosphorus and foul drainage in the catchment area (Loch Leven guidance) has been prepared in response to the adoption of LDP2. This is non-statutory planning guidance to support LDP2. In the report to council on 29 January 2020 (Report No. 20/25 refers), it was noted that the guidance document would be brought forward to Strategic Policy and Resources Committee as part of the review of guidance to support LDP2. The document was placed before the Kinross-shire Local Area Committee to seek feedback on the guidance. This has has been incorporated into this report. 9 Page 91 of 118
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Loch Leven Guidance 4.2 The Loch Leven Guidance supports Policy 46: Loch Leven Catchment and sets out the tests and information required for developments within the catchment area to address phosphorus emissions that affect the Loch. It sets out requirements for phosphorus mitigation for private wastewater systems. 4.3 The Loch Leven Guidance was updated following adoption of the Local Development Plan (adopted November 2019) (LDP2). This was consulted on from 17 February to 16 March 2020. Following consideration of the Lathro application (19/00917/FLM) (Report No. 20/112) at Planning and Development Management Committee on 1 July 2020, the issue of additional mitigation for developments connecting to public wastewater treatment plants was raised. The updated guidance was not promoted for adoption to allow time to consider this issue. As a result, a special meeting of the Loch Leven Catchment Management Group explored further options as detailed below. While no major changes resulted, an added minor change requested by SEPA needed further consultation which was carried out between 29 November 2021 and 24 January 2022. 5. KEY CONCERNS, RESPONSES AND PROPOSED CHANGES 5.1 Responses to the consultation held in 2020 were received from SEPA and NatureScot, with minor technical changes requested (see Appendix 2). 5.2 Following concerns raised about phosphorus impact on the loch of new development connecting to public wastewater treatment works (WWTW), a meeting of the Loch Leven Management Group was held in August 2020. At that meeting, it was concluded that a requirement should be explored for developers connecting to public WWTW to provide a phosphorus mitigation calculation. 5.3 Consultation with SEPA, NatureScot, Scottish Water and Legal Services concluded that this requirement was not feasible to implement. In summary, this is because there is no power in the policy to request this information. It is not reasonable to request this information as it would serve no purpose, as Scottish Water mitigation is based on a SEPA licence based on their own environmental assessment. 5.4 Scottish Water mitigation is carried out in response to daily monitoring within the context of their licenced limit. The Planning Authority’s power to request information to inform a Habitat Regulations Appraisal could not extend to the provision of this information, due to the final input to the loch being controlled by Scottish Water in accordance with their licence. 5.5 A further request was made by SEPA outside the consultation period for the guidance to include a statement about the temporary use of private facilities where there is no connection to public WWTW. While a minor change, it was thought significant enough to call for a further consultation. Page 92 of 118
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5.6 The further consultation in 2022 resulted in only a further response from SEPA regarding terminology and a request for a definition of “potential bedrooms” which has been produced in collaboration with SEPA and the Council’s building standards team. The resulting draft incorporating all changes is attached as Appendix 1. 5.7 Further work is ongoing to engage with partners including Scottish Water, SEPA, CEH, NatureScot and local councillors to explore the operation of Policy 46 and any improvements that may be brought forward for LDP3. 5.8 The Kinross-shire Local Committee was content with the revised guidance set out in Appendix 1 and agreed to recommend it to this committee for approval. However, concerns were voiced in relation to the following: • continued issues with combined sewers where the storm drains overflow during periods of heavy rainfall releasing sewerage into the catchment • the discord between the LDP reducing the housing land requirement in Kinross-shire to protect Loch Leven, and the housing numbers on allocated sites invariably being approved for higher numbers than identified in the plan 5.9 The Kinross-shire Local Committee are supportive of the further work referred to in paragraph 4.7 and wish to see their concerns raised above addressed fully in the preparation of LDP3. Loch Leven Protocol 5.10 In parallel with these discussions, the Loch Leven Protocol (the Protocol) has also been updated between Council officers, SEPA and NatureScot to update references to LPD2 and reflect current practice. The protocol is an operational arrangement concerning conditions and the implementation of measures to protect the Loch. This is a delegated matter, and the Head of Planning & Development continues to liaise with the two other agencies over the terms of the protocol and revise as appropriate. For information, the latest version of the protocol is attached as Appendix 3. 6. CONCLUSION 6.1 The Loch Leven guidance has been reviewed to support the implementation of LDP2. The document has been through two public consultations and extensive consultation with stakeholders, including the Kinross-shire Area Committee. Page 93 of 118
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Authors Name Designation Contact Details Robert Wills Brenda Murray Planning Officer (Development Plan Team) Development Plan Team Leader (01738) 475000 ComCommitteeReports@pkc.gov.uk Approved Name Designation Date Barbara Renton Executive Director (Communities) 30 May 2022 APPENDICES • Appendix 1: Loch Leven • Appendix 2: Loch Leven Guidance Summary of Consultation Responses • Appendix 3: Loch Leven Protocol Page 94 of 118
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan Yes Corporate Plan Yes Resource Implications Financial None Workforce None Asset Management (land, property, IST) None Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance None Risk None Consultation Internal Yes External Yes Communication Communications Plan None 1. Strategic Implications Community Plan 1.1 The Loch Leven guidance document supports delivery of the Perth and Kinross Community Plan/Single Outcome Agreement by safeguarding and encouraging restoration of valued natural environments. As well as promoting health and wellbeing, the guidance document contributes positively to the priority of “Creating a safe and sustainable place for future generations”. In particular the guidance addresses the challenges of: • maintaining the outstanding beauty of our urban and rural environments; and • responding to the agenda in relation to climate change. Corporate Plan 1.2 The Loch Leven guidance document contributes to the achievement of the Council Corporate Plan Priority delivery of “Creating a safe and sustainable place for future generations,” in particular the guidance promotes the goal to Protect our Outstanding Area. Page 95 of 118
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2. Resource Implications Financial 2.1 None. Workforce 2.2 None. Asset Management (land, property, IT) 2.3 None. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council must eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments (EqIA) for plans and policies allows the Council to show that it is meeting these duties. 3.2 The Loch Leven Guidance was considered under the Council’s Integrated Appraisal Toolkit. No impacts on equality were identified and the document was assessed as not relevant for the purposes of EqIA. A full EqIA was not needed. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. The guidance was considered under the Act in consultation with Consultation authorities and pre-screening identified that the Loch Leven Guidance will have no or minimal environmental effects and is therefore exempt and the SEA Gateway was notified on 30 January 2020. The reasons for concluding that the PPS will have no or minimal environmental effects is that the earlier version of the Guidance had been screened out and the minor changes introduced would have no or minimal effects. Sustainability 3.4 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Nature Conservation Act (Scotland) Act 2004 public bodies in Scotland have a duty to further the conservation of biodiversity. Under the Climate Change (Scotland) Act 2009 the Council also has a duty relating to climate change and, in exercising its functions must act: Page 96 of 118
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• in the way best calculated to delivery of the Act’s emissions reduction targets • in the way best calculated to deliver any statutory adaptation programmes • in a way that it considers most sustainable. 3.5 The guidance was assessed for Sustainability through the Integrated Assessment Toolkit. The document promotes sustainable development and the conservation of biodiversity and addresses climate change by: • Promoting best practice development that protects and restores nature and utilises nature-based solutions • Promoting the health of waterways and water bodies through avoidance and mitigation of impacts from new development. Legal and Governance 3.6 None. Risk 3.7 None. 4. Consultation Internal 4.1 The draft guidance was developed and consulted on with internal stakeholders as set out in section 3 of the Report. The Loch Leven guidance required minimal changes although consultation with building standards was carried out as a result of SEPA comments. External 4.2 The draft guidance was developed and consulted on with external stakeholders as set out in section 3 of the Report. Further consultation with SEPA was required. 5. Communication 5.1 Once approved, the guidance will be uploaded to the Council website and those consulted on the draft will be notified. The Loch Leven guidance has minimal changes and further promotion beyond communication as stated and conversations with development management is not considered necessary. 2. BACKGROUND PAPERS 2.1 No background papers are referred to. Page 97 of 118
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