Agenda item

An update from the Cabinet Member for Housing, Regeneration, Business & Economic Development on key areas within his portfolio is attached.

A verbal update will be provided by the Cabinet Member for Finance and Corporate Services who will be in attendance to answer questions from the Committee.

5.1     The Committee received a verbal update from the Cabinet Member for Finance and Corporate Services on key areas of the portfolio.  He informed Committee members about the extensive meetings that he holds with service areas within the portfolio on a weekly or bi-monthly basis.  This included Finance, Revenue and Benefits, Corporate Property and Corporate Services which incorporated Legal Services, ICT, Managed Services and Procurement.

5.2     With regards to the Council’s finances, he advised that at the end of July the budget was in surplus.  He was confident that there would be a balanced budget by the year’s end.  He further advised that the Council was currently working on its medium term financial planning.  The government’s spending review was due to take place in the autumn and an announcement on the Council’s financial settlement for 2016-17, and possibly beyond, would be announced in December or January.  Alongside medium term financial planning individual departments were working on developing their business plans for the 2016-17 financial year.  The Cabinet Member was asked whether the Government was likely to provide local authorities with a multi-year financial settlement.  Steve Mair, City Treasurer, advised that that whilst there was an indication that there could be a 4 year settlement covering the remainder of this Parliament this was unlikely to be the case.

5.3     The Cabinet Member advised in respect of Revenue and Benefits that he was shortly due to take a decision on revising the criteria for Discretionary Housing Payments (DHP) to reflect changes in funding at government level.  The proposed changes had been consulted upon including with constituency MPs.  The Cabinet Member was asked about the government funding for DHP for 2016-17.  Ben Denton, Executive Director for Growth, Planning & Housing, informed members that this was still unknown.  The government had provided the Council with £2.7 million for 2015-16 and the Council had added a further £1 million of its own funding to this sum.  The government had allocated £800 million nationally in the previous 5 years for DHP while this year it had provided only £125 million which signalled a downward trend in funding.  60 to 70% of the DHP awarded by the Council is to help support homeless households in temporary accommodation.  This detail has been used by the Council in its lobbying of the Department for Work and Pensions (DWP) regarding concerns about the reduction in DHP funding.

5.4     The Cabinet Member was asked in relation to revenue which Executive Member was responsible for lobbying on business rates retention.  He explained that as the issue cuts across a number of Council service areas it is undertaken centrally by the Leader.  He suggested that scrutiny of this issue was best undertaken by the Westminster Scrutiny Commission.  Members were informed that the last re-evaluation of business rates occurred at a time when the market and land values were more buoyant.  The Council, as a billing authority, has to pick up a percentage of the loss in business rates when a business is successful in appealing its valuation.  Over the last 3 to 4 years this has cost the Council £6 million.  One of the Council’s requests as part of its lobbying on this matter is to shield the authority from this cost.

5.5     The Committee was informed in relation to the Managed Services Programme (MSP) that meetings had been held with Tri-Borough colleagues and BT to resolve outstanding issues.  A meeting with BT was due to be held by the Leader and Deputy Leader of the Council.  The Cabinet Member acknowledged that there were problems with MSP.  It was noted that there were a number of on-going risks and a query was raised as to whether there would be compensation to smaller contractors.   Jane West, Bi-Borough Executive Director of Corporate Services, advised that the Council was currently gathering information regarding the problems experienced by staff and contractors following the rollout of the new system.  It was hoped that the bulk of the problems would be resolved by the end of September.  The Chairman advised that if the issues had not been largely resolved by the committee’s next meeting then an update of the Managed Service Programme should be added to the agenda in place of the Corporate Property Investment Strategy.

5.6     The Cabinet Member informed the Committee that one of the largest projects within corporate property at the present time was the redevelopment of City Hall.  Members of staff had been informed in outline terms of the plans.  A report had been agreed in July for consultants to work up proposals which would be submitted for consideration by Cabinet in November.

5.7     The Committee also received a written update from the Cabinet Member for Housing, Regeneration, Business and Economic Development on key aspects within the portfolio. 

5.8     RESOLVED: That the report be noted.

5.9     ACTION: 

1.     Provide the Committee with a copy of the presentation on the redevelopment of City Hall that was circulated to staff.  (Action for: Ben Denton, Executive Director for Growth, Planning & Housing)

2.     Provide Councillor Rampulla with details of the number of cases in the last year where bailiffs had been used for the recovery of non-payment of council tax.  (Action for: Steve Mair, City Treasurer)

3.     Provide the Committee with a briefing note on current lobbying activities by the Council on business rates.  (Action for: Martin Hinckley, Head of Shared Services Centre)

4.     Include an item on MSP on the Committee’s next agenda if the bulk of outstanding problems are not resolved by the end of October.  (Action for: Anne Pollock, Scrutiny Officer in liaison with Jane West)

5.     Provide Councillor Mohammed with the timeframe for completing the joint venture with Central London CCG whereby the Council will fund bed spaces for hospital discharge services for homeless people.  Provide details of the number of hostel beds available through rough-sleeper hostel services. (Action for: Ben Denton, Executive Director for Growth, Planning & Housing)

6.     Provide Councillor Rampulla with background information on the Key Employment Programme Projects. (Action for: Ben Denton, Executive Director for Growth, Planning & Housing)