Council
Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
15 September 2015
A meeting of the North Norfolk District Council will be held in the Council Chamber at the
Council Offices, Holt Road, Cromer on Wednesday 23 September 2015 at 6.00 p.m.
Members of the public who wish to ask a question or speak on an agenda item are
requested to arrive at least 15 minutes before the start of the meeting. It will not always be
possible to accommodate requests after that time. This is to allow time for the Chairman to
rearrange the order of items on the agenda for the convenience of members of the public.
Further information on the procedure for public speaking can be obtained from Democratic
Services, Tel: 01263 516010, Email: democraticservices@north-norfolk.gov.uk
Anyone attending this meeting may take photographs, film or audio-record the proceedings
and report on the meeting. Anyone wishing to do so must inform the Chairman. If you are a
member of the public and you wish to speak on an item on the agenda, please be aware that
you may be filmed or photographed.
Sheila Oxtoby
Chief Executive
To: All Members of the Council
Members of the Management Team, appropriate Officers, Press and Public.
If you have any special requirements in order
to attend this meeting, please let us know in advance
If you would like any document in large print, audio, Braille, alternative format or in a
different language please contact us
Chief Executive: Sheila Oxtoby
Corporate Directors: Nick Baker and Steve Blatch
Tel 01263 513811 Fax 01263 515042 Minicom 01263 516005
Email districtcouncil@north-norfolk.gov.uk Web site northnorfolk.org
AGENDA
1.
PRAYER
Led by Reverend Catherine Dobson, All Saints Church, Lessingham
2.
CHAIRMAN’S COMMUNICATIONS
To receive the Chairman’s communications, if any.
3.
TO RECEIVE DECLARATIONS OF INTERESTS FROM MEMBERS
Members are asked at this stage to declare any interests that they may have in any
of the following items on the agenda. The Code of Conduct for Members requires
that declarations include the nature of the interest and whether it is a disclosable
pecuniary interest.
4.
APOLOGIES FOR ABSENCE
To receive apologies for absence, if any.
5.
MINUTES
(page 7)
Minutes Appendix A – p.13
To confirm the minutes of the meeting of the Council held on 21 July 2015.
6.
ITEMS OF URGENT BUSINESS
To determine any other items of business which the Chairman decides should be
considered as a matter of urgency pursuant to Section 100B (4)(b) of the Local
Government Act 1972.
7.
PUBLIC QUESTIONS
To consider any questions received from members of the public.
8.
APPOINTMENTS
To consider any appointments
9.
DEVOLUTION IN EAST ANGLIA
(page 14)
(Appendix A – p.18) (Appendix B – p. 22)
Summary:
The concept of ‘devolution’ has been included within the
covering report for the Council’s Corporate Plan 2015-2020.
However, this report provides further background as to the
current positives for Norfolk in submitting a ‘letter of intent’ to
government for a devolution proposal covering Norfolk and
Suffolk.
Options
considered:
A key focus for Government is scale of a prospective deal
and a Norfolk only devolution option is not seen by
Government as a viable option.
The new Anglia LEP area (Norfolk and Suffolk) is the
geographical scope of the devolution proposal.
Conclusions:
Recommendations:
It is crucial that the District council is actively engaged in
discussions on devolution and ensuring that all potential
benefits are explored: and particularly ensuring this is
relevant and advantageous to a rural, coastal authority such
as North Norfolk District Council.
1. That Members note the contents of this report.
2. Agree that NNDC follows up work on the initial
expression of interest undertaken with partners across
the Norfolk and Suffolk area to maximise the
opportunity
presented
by
the
Government’s
commitment to devolution.
3. Delegate to the Leader in consultation with the Head
of Paid Service any resources required providing
costs are met from the existing approved council
budget.
Reasons for
This report outlines the devolution agenda that has emerged
Recommendations: over the last few years. It details some of the benefits and
opportunities that the current devolution agenda offers in
areas such as skills, transport, infrastructure, housing,
policing, health and welfare.
The austerity back drop of reduced funding and a reduced
state presence has meant a greater focus on localism and a
closer examination of the effectiveness of the current funding
streams and their ability to deliver improved outcomes
Cabinet Member:
Ward member(s)
Contact Officer
Telephone
Email
10.
Councillor T FitzPatrick
All
Sheila Oxtoby
01263 516000
sheila.oxtoby@north-norfolk.gov.uk
SHARED SERVICE OPPORTUNITIES
Please note this report will follow.
11.
RECOMMENDATIONS FROM CABINET 07 SEPTEMBER 2015
(page 27)
(Corporate Plan – p.39)
RECOMMENDATIONS TO COUNCIL:
a)
AGENDA ITEM 11: CORPORATE
GOVERNMENT CONTEXT
PLAN
2015-2019
To recommend approval of the Corporate Plan 2015 – 2020
AND
LOCAL
b) AGENDA ITEM 12: MEDIUM TERM FINANCIAL STRATEGY
(page 47)
(Strategy document – p.49) (Reserves statement – p.75)
a) Continuation of the current Local Council Tax Support Scheme for 2016/17;
b) That the Local Council Tax Support Scheme grant for parishes be offered to
those parish and town councils that accepted the grant in 2015/16 and the
total amount available is reduced in line with the Council’s relative funding
reductions as outlined within the strategy document;
c) The revised reserves statement as included at Appendix A to the financial
strategy.
RECOMMENDATIONS FROM OVERVIEW AND SCRUTINY COMMITTEE
The Overview and Scrutiny Committee considered the above recommendations from
Cabinet at their meeting on 16 September 2015 – after the Council agenda was
published. The Chairman will provide an oral update at the Council meeting.
12.
ANY FURTHER RECOMMENDATIONS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE 16 SEPTEMBER 2015
To receive any further recommendations from the Overview and Scrutiny Committee
meeting held on 16 September 2015.
13.
RECOMMENDATION FROM LICENSING & APPEALS COMMITTEE 20 JULY 2015
AGENDA ITEM 13: MOBILE PARK HOMES FEES POLICY
(page 77)
RECOMMENDATION TO COUNCIL:
That the Mobile Park Homes Fees Policy be approved
14.
RECOMMENDATIONS FROM THE AUDIT COMMITTEE 15 SEPTEMBER 2015
The Annual Governance Statement 2014/15 and the 2014/15 Statement of Accounts
will be considered at the Audit Committee meeting on 15 September 2015. The
Chairman of Audit Committee will provide an oral update at the Council meeting and
introduce agenda items 15 and 16.
15.
ANNUAL GOVERNANCE STATEMENT 2014/15
To receive the Annual Governance Statement 2014 – 2015
(page 86)
(Source: Karen Sly, Head of Finance, Tel: 01263 516243,
email: karen.sly@north-norfolk.gov)
16.
2014/15 STATEMENT OF ACCOUNTS
Agenda note: The Statement of Accounts is available electronically. Hard copies can
be obtained from Democratic Services on request.
To approve the Statement of Accounts 2014/15
(Source: Karen Sly, Head of Finance, Tel: 01263 516243,
email: karen.sly@north-norfolk.gov)
17.
TO RECEIVE THE APPROVED MINUTES OF THE UNDERMENTIONED
COMMITTEES
Members are requested to note that the minutes of the undermentioned committees
have been approved. Copies of all the minutes are available on the Council’s website
or from Democratic Services.
a)
b)
c)
d)
e)
f)
g)
18.
Standards Committee – 02 June 2015
Audit Committee – 16 June 2015
Licensing & Appeals Committee – 22 June 2015
Development Committee – 25 June 2015
Standards Committee – 30 June 2015
Cabinet – 06 July 2015
Development Committee – 23 July 2015
REPORTS FROM THE CABINET OR MEMBERS OF THE CABINET
To receive reports, updates or briefings from members of the Cabinet.
19.
QUESTIONS RECEIVED FROM MEMBERS
None
20.
OPPOSITION BUSINESS
To receive any opposition business.
21.
NOTICE(S) OF MOTION
The following motion has been submitted by Councillor Andrew Wells and seconded
by Councillor David Young:
This Council notes:
 The Government’s proposal to extend the Right to Buy to Housing
Association tenants, to be paid for by selling off the most expensive Council
Housing stock;
 The significant need for affordable housing in North Norfolk;
 The damaging potential impact of an extended Right to Buy on the highlyvalued charitable housing associations in many North Norfolk communities;
 That many former Local Authority properties sold under the right to buy are
now owned by private landlords and let out on a commercial basis;
 A recent opinion poll (1) suggesting that just 16% of the public believe that
extending Right to Buy to housing association tenants would be the most
useful way of tackling the affordability crisis; and

Advice from the Office of Budget Responsibility suggesting that the proposals,
if implemented, could add £60bn to the Government debt.
This Council therefore calls upon Cabinet to:
1. Continue working to build more affordable houses in North Norfolk;
2. Write to the Communities Secretary expressing concern about the proposals
and urging him to consider alternative approaches to provide more affordable
housing; and
3. Write to our two local Members of Parliament requesting their support in
opposing the proposals.
[1] April 2015 - Poll conducted by National Housing Federation
22.
EXCLUSION OF PRESS AND PUBLIC
To pass the following resolution – if necessary:
“ That under Section 100A(4) of the Local Government Act 1972 the press and public
be excluded from the meeting for the following item(s) of business on the grounds
that they involve the likely disclosure of exempt information as defined in
paragraph(s) _ of Part 1 of Schedule 12A (as amended) to the Act.”
23.
PRIVATE BUSINESS
Circulation:
All Members of the Council.
Members of the Management Team and other appropriate Officers.
Press and Public
COUNCIL
Minutes of a meeting of North Norfolk District Council held on 21 July 2015 at the Council
Offices, Holt Road, Cromer at 6.00 pm.
Members Present:
Officers in
Attendance:
Mr J Lee
Mr W J Northam
Mrs J Oliver
Mr N Pearce
Mrs G Perry-Warnes
Mr R Price
Ms M Prior
Mr J Punchard
Mr J Rest
Mr R Reynolds
Mr P Rice
Mr E Seward
Mr S Shaw
Mr R Shepherd
Mr B Smith
Mr D Smith
Mr R Stevens
Mrs V Uprichard
Mrs L Walker
Mr A Wells
Mr G Williams
Mr A Yiasimi
Mr D Young
The Chief Executive, The Corporate Directors, the Communications
Manager and the Democratic Services Team Leader
None
Press:
42.
Mrs S Arnold
Mrs A ClaussenReynolds
Mr N Coppack
Mrs H Cox
Mr N Dixon
Mr T FitzPatrick
Ms V R Gay
Mrs A Green
Mr S Hester
Mr M Knowles
Mr N Lloyd
PRAYERS
The Chairman invited Reverend Andrew King, Fakenham Methodist Church to lead prayers.
43.
CHAIRMAN’S COMMUNICATIONS
The Chairman began by saying that she had represented the Council at various church
services including welcoming the Reverend Dr James Porter at his induction at Cromer Parish
Church by Bishop Graham of Norwich on 17th July.
Other significant occasions included the High Sheriff of Norfolk’s reception and the Orchestra
Live concert at Ludham which was superb due to the excellent acoustics in the church. One of
the highlights – as last year – was the Lord Mayor of Norwich’s procession, which concluded
with an amazing fireworks display.
The Chairman then drew Members’ attention to the new art display in the upper corridor. She
explained that all the work was done by someone who attended the Wensum Centre in
Fakenham, one of her nominated charities for the year.
She concluded by informing Members that the Chairman’s Reception would take place on 4th
September at the Wells Maltings which has had close involvement with the Council for many
years. As there had not been a reception last year, this year’s event had been brought forward
to take advantage of the lighter evenings.
Before moving onto the rest of the agenda, the Chairman clarified voting procedures to ensure
that all Members had an understanding of when abstentions would be noted.
7
44.
TO RECEIVE DECLARATIONS OF INTEREST FROM MEMBERS
None
45.
APOLOGIES FOR ABSENCE
Apologies for absence were received from Mrs S Butikofer, Mrs J English, Mrs A Fitch-Tillett,
Mr V FitzPatrick, Mrs P Grove-Jones, Mr B Hannah, Mrs B McGoun, Miss B Palmer, Mr N
Smith and Mr S Ward.
46.
MINUTES
The minutes of the meeting held on 24 June 2015 were approved as a correct record and
signed by the Chairman.
47.
ITEMS OF URGENT BUSINESS
None
48.
PUBLIC QUESTIONS
None
49.
APPOINTMENTS
None
50.
RECOMMENDATIONS FROM CABINET 06 JULY 2015
a) AGENDA ITEM 13: ENVIRONMENTAL HEALTH INFORMATION TECHNOLOGY
SYSTEM PROCUREMENT
Mr T FitzPatrick introduced this item. He explained that the Environmental Health IT system
contract had expired and that approval was sought to procure a replacement system contract
for a 5 year term with an option to extend for an additional 3 years. It was important that the
procurement process should have regard to the ‘technology baseline plan’ within the Business
Transformation programme to minimise the inclusion of features that would be delivered
corporately through that programme.
The Chairman of the Overview and Scrutiny Committee informed Council that the Committee
had supported the recommendations.
RESOLVED:
To approve a capital budget of £150,000 for system implementation.
51.
RECOMMENDATIONS FROM THE CONSTITUTION WORKING PARTY 13 JULY 2015
The Chairman of the Constitution Working Party, Mrs H Cox, said that there had been a full
debate at the meeting. The revised protocol was intended to give local members a broad
understanding of how issues relating to their ward should be communicated and it was hoped
that the changes would improve Members’ awareness of ward issues. She concluded by
saying that the Constitution Working Party felt that it was important that Members should be
8
included in the formative stages of any process and this should include Cabinet reports, policy
development and consultations.
It was proposed by Mrs H Cox, seconded by Ms V Gay and
RESOLVED
To approve the draft Officer/Member Protocol (as amended)
52.
RECOMMENDATIONS FROM OVERVIEW AND SCRUTINY COMMITTEE 15 JULY 2015
The Chairman confirmed that there were no further recommendations from the meeting of the
Overview and Scrutiny Committee held on 15th July 2015.
53.
TO RECEIVE THE APPROVED MINUTES OF THE UNDERMENTIONED COMMITTEES
The minutes of the meetings below were noted as a correct record.
a)
b)
c)
d)
54.
Cabinet – 08 June 2015
Development Committee – 28 May 2015
Licensing & Appeals Committee – 2 March 2015
Overview & Scrutiny Committee – 26 March 2015
REPORTS FROM THE CABINET OR MEMBERS OF THE CABINET
Mrs S Arnold, Portfolio Holder for Planning said that she was delighted to report that the
Council’s Building Control team had won the regional LABC award and would now be put
forward for the national awards which would take place in London in November.
Mrs Arnold then informed Members that the Council had embarked on the new Local
Development Plan. This was a lengthy and complicated process which now required a ‘duty to
cooperate’ which could lead to the possibility of taking on housing requirements from the
Norwich area. North Norfolk District Council needed to build at least 400 new houses a year to
achieve the housing supply target. She encouraged Members to become involved in the
process over the coming months. Mrs Arnold concluded by saying that the planning service
had undertaken a thorough review of all their processes to see what could be improved and
streamlined. It was anticipated that the review would be completed by the end of September
and an agreed implementation plan prepared. In response to a question from Mr E Seward as
to whether briefings would be arranged for members on the Local Plan, Mrs Arnold confirmed
that they would.
The Leader, Mr T FitzPatrick, commented on the recent problems with the Council’s email
system. He said that it occurred due to a failure during the back-up process and that the IT
service had worked very hard to restore the system as soon as possible.
55.
QUESTIONS FROM MEMBERS
The following question had been received from Mr N Lloyd:
'What plans are there to increase resources for enforcement to deter the small number of
irresponsible dog owners who permit their pets to foul public spaces, beaches and footpaths in
the district?’
Mr T FitzPatrick replied on behalf of the Portfolio Holder for Environmental Services. He
agreed that dog fouling concerned everyone and said that the Council was promoting a
community dog warden scheme. So far 8 volunteers had been trained as dog wardens and it
9
was anticipated that this would be increased to 16 across North Norfolk. Mr FitzPatrick went
onto say that the flow of information was improving and that officers spoke to dog owners to
remind them of their responsibility to clean up after their pets. Hot-spot locations such as North
Walsham were also being targeted with displays and stickering. In addition, the Environmental
Health Team had also recently met with the Kennel Club with the aim of starting a joint
campaign in the Autumn.
Mrs H Cox commented that this was not a new issue. She said that she had been out on patrol
with the dog wardens early in the morning and encouraged other Members to do the same.
The Chairman invited Mr N Lloyd to respond. He said that it was reassuring to hear of the
efforts being made to address dog fouling but it was disappointing that less than 1 full time
post was dedicated to dealing with it and that there had not been any prosecutions to date. He
added that the Council must ensure that efforts to address the problem were sustained.
Mr W Northam commented that on a recent holiday to Guernsey he had seen lots of signs
warning of a £1000 fine for dog fouling and this seemed to be an excellent deterrent.
Mrs G Perry-Warnes asked whether it was necessary to increase the number of dog bins to
ensure that all of the dog waste could be collected. Mr FitzPatrick replied that any town or
parish council could put forward a request for bins. However, a common problem seemed to
be that people bagged up dog waste but did not put it into the bins. He said that high profile
campaigns were very effective at changing behaviour.
Mr B Smith said that Bacton was fortunate to have two dog wardens and that more people
should be encouraged to volunteer.
56.
OPPOSITION BUSINESS
The following motion had been proposed by Councillor Andrew Wells and seconded by
Councillor Eric Seward:
‘This Council:
Notes that after five years of careful fiscal management by the Conservative-Liberal Democrat
Coalition, National Debt is projected to fall as a proportion of GDP from the next financial year;
Welcomes the Chancellor’s announcement of a minimum wage of £9.00 an hour for those
over 25 by 2020 and an increase in the Personal Allowance to £11,000 in 2016-17;
Recognises the impact on the poorest working families of the proposed changes to Working
Tax Credit in the Chancellor’s 2015 Summer Budget;
Notes that many of the poorest working families in North Norfolk will lose net income as a
result of these changes;
Resolves to:
- explore the financial impact for the Council of implementing a £9.00 minimum wage for all
NNDC employees ahead of the Chancellor’s proposed timescale;
- write to the Council’s commercial contractors encouraging them to explore implementing a
£9.00 minimum wage for their employees ahead of the Chancellor’s proposed timescale.’
The Chairman asked Mr Wells if he wished to add anything further. Mr Wells said that
nationally the Liberal Democrats and the Conservatives had worked together to take difficult
decisions. They had not always agreed but at local level, one thing both parties agreed on was
10
that Council officers worked very hard. He went onto say that the Council had a long history of
concern for the lowest paid staff and it was therefore hoped that members would be supportive
of giving NNDC employees a minimum of £9.00 an hour ahead of the proposed
implementation date of 2020. Contractors should also be urged to demonstrate compassion
and do the same.
The Chairman invited the Leader of the Council, Mr T FitzPatrick, to respond. Mr FitzPatrick
said that the Council already paid the current national living wage to all employees. He said
that he wished to propose the following amended motion (the amendment was circulated to all
members at this point).
‘This Council:
Welcomes the positive update on the state of the economy provided by the Summer
Budget from the Chancellor at the outset of the new Conservative Government following
the election in May 2015. It notes the wo rk done by the previous Coalition Government of
2010-2015 and welcomes the fact that the Government can build on this free from
previous constraints.
We welcome the proposal for a National Living Wage for those over 25 by 2020. However
this Council notes that proposed National Living Wage will have a potential upward
pressure on council budgets and contract costs and we ask that any resultant arising new
burdens will be fully funded as requested in the Local Government Association Budget
briefing.
We note the increase in the Personal Allowance to £11,000 in 2016-17 and the proposed
changes to Working Tax Credit. This Council further notes the work being done by the
Local Government Association in conducting detailed analysis and evaluation on the likely
impact of this change and will await the result of this work to assess the impact on the
residents of North Norfolk.
This Council currently pays the existing National Minimum Wage as a minimum to all our
employees.
Resolves to
Awa it the detailed analysis and evaluation on what the change to the minimum wage is
likely to mean and will await the results of this work.
Mr J Rest seconded the amendment, saying that the original motion was uncosted.
The Chairman invited Members to speak on the amendment:
a. Mrs L Walker said that she was very disappointed that members of the opposition group
had only just seen the amendment. It would have been helpful to have seen it earlier.
b. Mr E Seward said that the key to the original motion was that it proposed that the Council
simply explored the financial impact on NNDC and its contractors. There was no reason to
wait for the LGA to undertake an analysis as this could be done by the Council. If a proactive approach was taken with the Council’s commercial contractors then they could be
encouraged to adopt good working practices. The amendment did not recognise this.
Also, by raising the level of the Living Wage, it was the Government’s intention to
encourage employers to pay more and thus reduce the benefits bill. For these reasons Mr
Seward said he would not accept the amendment to the Motion.
c. Mr R Reynolds said that the original motion was a proposal to increase the level of the
living wage paid to employees and as this was un-costed he could not support it. Mr A
Wells replied that this was not the case – it was just a proposal to assess the financial
11
impact of introducing an increased living wage at an earlier stage than that proposed by
the Government.
The Chairman asked Members to vote on the amendment to the motion. Mr T FitzPatrick
requested a recorded vote (attached at Minutes Appendix A). 25 Members voted in support
of the amendment and 10 against. The amendment therefore became the substantive motion
and the following resolution was agreed:
RESOLVED:
To await the detailed analysis and evaluation on what the change to the minimum wage is
likely to mean and will await the results of this work
57.
NOTICE(S) OF MOTION
None
58.
PRIVATE BUSINESS
None
The meeting concluded at 6.45pm.
_________________________
Chairman
12
Minutes Appendix A
COUNCIL
RECORDED VOTE FORM
Motion: Agenda Item 15 – Opposition Business
Date: 21st July 2015
For
Arnold, s
Against
Abst
For
Oliver, J
X
Butikofer, S
Palmer, B
X
Pearce, N
X
X
Perry-Warnes, G
X
Cox, H
X
Price, R
X
Dixon, N
X
Prior, M
X
English. J
Punchard, J
X
Fitch-Tillett, A
Rest, J
X
Reynolds, R
X
Rice, P
X
X
FitzPatrick, V
Gay, V R
Green, A R
Seward, E
X
X
Shaw, S
X
Grove-Jones, P
Shepherd, R
X
Hannah, B J
Smith, B
X
Smith, D
X
Hester, S
X
X
High, P W
Smith, N
Jarvis, B
X
Stevens, R
Knowles, M
X
Uprichard, V
X
Lee, J H A
X
Walker, L
X
Lloyd, N
X
Ward, S
X
McGoun, B M
Wells, A
X
Moore, A
X
Williams, G
Moore, P W
X
Yiasimi, A
X
Young, D
X
Northam, W J
Abst
X
ClaussenReynolds, A
Coppack, N
FitzPatrick, T
Against
X
recorded votes form
13
Agenda Item No____9________
Devolution in East Anglia
Summary:
The concept of ‘devolution’ has been included within the
covering report for the Council’s Corporate Plan 20152020. However, this report provides further background
as to the current positives for Norfolk in submitting a
‘letter of intent’ to government for a devolution proposal
covering Norfolk and Suffolk.
Options considered:
A key focus for Government is scale of a prospective
deal and a Norfolk only devolution option is not seen by
Government as a viable option.
The new Anglia LEP area (Norfolk and Suffolk) is the
geographical scope of the devolution proposal.
Conclusions:
Recommendations:
It is crucial that the District council is actively engaged in
discussions on devolution and ensuring that all potential
benefits are explored: and particularly ensuring this is
relevant and advantageous to a rural, coastal authority
such as North Norfolk District Council.
1. That Members note the contents of this report.
2. Agree that NNDC follows up work on the initial
expression of interest undertaken with partners
across the Norfolk and Suffolk area to maximise
the opportunity presented by the Government’s
commitment to devolution.
3. Delegate to the Leader in consultation with the
head of Paid Service any resources required
providing costs are met from the existing
approved council budget.
Reasons for
Recommendations:
This report outlines the devolution agenda that has
emerged over the last few years. It details some of the
benefits and opportunities that the current devolution
agenda offers in areas such as skills, transport,
infrastructure, housing, policing, health and welfare.
The austerity back drop of reduced funding and a
reduced state presence has meant a greater focus on
localism and a closer examination of the effectiveness
of the current funding streams and their ability to
deliver improved outcomes
Cabinet Member:
Ward member(s)
Contact Officer
Telephone
Email
Councillor T FitzPatrick
All
Sheila Oxtoby
01263 516000
sheila.oxtoby@north-norfolk.gov.uk
14
1.
Introduction
1.1
Since 2011, Local Enterprise Partnerships (LEPs), based broadly on county
areas, were established following the abolition of regional government and
enterprise bodies.
1.2
The last four years has also seen the development of ‘City Deals’ where
urban areas have worked with Government to agree greater control of
spending and resources in their locality.
1.3
Nationally, there is an active debate about the need for Government to pass
significant powers down to local government in England to match the powers
devolved to the parliament in Scotland and the National Assemblies in Wales
and Northern Ireland.
1.4
So far ‘deals’ between the government and local authorities have tended to
focus on English cities and large urban areas. More recently Cornwall has
been the first rural area to agree a devolution deal by the Government after
submitting proposals. The Cornwall Devolution proposal covers a range of
key areas including transport, employment and skills, EU funding, business
support, energy, health and social care, public estate, heritage and culture.
The government has also agreed to work with agencies in Cornwall on a
number of proposals to improve employment and skills opportunities. These
include reshaping training and learning provision, developing new
apprenticeship opportunities and improving careers advice for young people.
1.5
Currently across the country many two-tier areas are also keen to take part in
the discussion and the government is now seeking expressions of interest in
further potential devolution projects, including those from two tier areas.
There has subsequently been a growing momentum of the national agenda
for devolving powers from Westminster and the government announced that
any area wishing to engage with this agenda during the current spending
review period would need to submit proposals by the 4th September 2015.
2.
Current Position
2.1
An expression of interest has been submitted to Government within the 4th
September deadline and this has previously been circulated to all Members.
The covering letter (appendix A) and Norfolk Offer (appendix B) set out the
scope of the devolution expression of interest (EOI) in more detail.
2.2
The purpose of this EOI is so that government and local public sector
partnerships can explore what policy/budget areas might be advantageous to
both if they were to be devolved for more local control.
2.3
There are significant potential benefits associated with devolution. These
include support and devolved government funding to encourage economic
growth and infrastructure provision, better use of public funds in areas such
as health and wellbeing allowing cross sector investment to reduce demand
on services and more coordinated decision making in respect of major issues
such as strategic housing and infrastructure delivery. These points are made
within the EOI.
15
2.4
It is important to stress that the status of the document submitted to date is
aimed at opening dialogue with Government about devolved powers and the
appropriate governance arrangements that will be needed. This Council and
all partners will need to agree to support any devolution ‘deal’ and associated
governance arrangement. If the EOI is successful there is considerable work
to be done to bring this to fruition, and a decision would need to be taken by
Council at a further date.
New forms of Governance based around a ‘Combined Authority’ model, will
be required. Suffolk and Norfolk are committed to discussing arrangements
with the New Anglia LEP. The Combined Authority proposal could include a
‘Double Devolution’ approach, which sets out functional clusters of districts,
and this is currently being considered.
3
Expected Benefits
3.1
Public sector partners, the LEP and higher education organisations have
recognised potential benefits of achieving devolved powers and budgets and
also in developing closer and more effective working between public sector
bodies.
3.2.
The Norfolk offer document in appendix B invites the Government to enter into
discussions about these additional powers and the governance arrangements
that would be necessary to operate them. The expression of interest focuses
on the benefits of this approach including:
 Delivering economic growth and prosperity
 Coherent planning and housing
 Employment and skill
 Physical Asset and infrastructure
 Action on flood risk
 Improved health and social care
4.
Stakeholders / Consultation / Timescales
4.1.
This is very much the first stage in the process and if taken up by Government
then much more work will need to be undertaken with partners to develop for
example, a more integrated approach to health and social care. Essentially it
will involve the development of greater powers over areas of public spending
which are currently controlled centrally and more detailed information will be
required in respect of the actual ‘asks’ of Government and benefits to be
achieved. This further work would involve consultation with all partners.
4.2
A further update on timescales will be provided at the Council meeting on 23
September 2015.
5.
Implications and Risks
5.1.
This report relates to an expression of interest which is at an early stage of
potential implementation of a devolution deal. Governance proposals to
establish how any deal will be delivered will have to be developed in
association with the development of the deal following acceptance by
Government.
16
6.
Financial Implications and Risks
6.1.
The strategic financial implications for the devolution agenda for the Council
will be considered should the EOI lead to further development work.
7.
Sustainability
None applicable
8.
Equality and Diversity
None applicable
9.
Section 17 Crime and Disorder considerations
None applicable
17
Appendix A
Fiona McDiarmid
c/o NCC
County Hall
Martineau Lane
Norwich
NR1 2SG
NCC contact number: 0344 800 8020
Textphone: 0344 800 8011
Email: xxx@norfolk.gov.uk
Via email
Xxx
Xxx
xxx
4 September 2015
Your ref:
My ref: FMc/
To whom it may concern
Re: Devolution – Letter of Intent
We invite you to consider an exciting proposal that will further transform the economy of
much of East Anglia. It comes with the strong endorsement of the Councils in Norfolk
together with the New Anglia Local Enterprise Partnership and our universities. It conveys
our commitment to continue to work together to maximise the benefits of devolution for
businesses and communities Our proposals in summary are to:




improve productivity, drive growth and improve housing delivery
invest in transport and improve infrastructure
transform skills and employment
transform the delivery of health and social care
These represent a significant commitment to achieve the local/national dividend desired
through devolution and to rebalance the local economy.
Building on the Norwich & Ipswich City Deals we will develop the existing strong
relationships which we have created with private and public sector partners through the
New Anglia LEP and develop further Enterprise Zones focused on agri-tech, food and
health and digital ICT. We will also complete our commitment to provide Superfast
Broadband to 100% of our premises by 2020,
We are proud of our collaboration which has led to two Round 2 City Deals; our Enterprise
Zone, covering Great Yarmouth and Lowestoft, has exceeded job creation targets; our
Growth Hub has blazed the trail for simplified and streamlined support for businesses and
our Growing Business Fund has created more than 1,000 new jobs and levered in £60m in
private sector investment.
Productivity
At the heart of our collaboration would be a Productivity Commission, led by the private
sector and the New Anglia LEP which will examine the root causes of the productivity gap
in Suffolk and Norfolk and make positive recommendations on how we can tackle these
issues head on.
Rural Issues
Our productivity commission will incorporate a 10 point rural productivity plan for boosting
productivity in the two counties, in support of the national programme, to address the
challenges faced by businesses and local communities in rural and isolated areas.
18
Financing Infrastructure Investments
A key role for the LEP in a combined authority would be to create investable investment
and infrastructure opportunities in a way that levers-in private finance, perhaps from
individuals, pension funds or sovereign wealth without relying exclusively on the UK
Government for funding.
Strategic Connections to Neighbouring Areas
Whilst our immediate focus is Norfolk we see strengthening connections, both physical
and economic, to Suffolk and further still to Cambridgeshire and our neighbouring LEP as
key to unlocking the whole area’s economic potential, especially in respect of strategic
transport provision.
Strategic Transport
We have welcomed and supported government investment in transport infrastructure,
including the A11, A47 and A14, but we are ambitious for more. We see the devolution of
funding for investment in our roads infrastructure as essential to enable the further
development of an integrated, modern transport system that would be the key to
developing employment and housing sites across the counties. In this respect we are
committed to looking outside our boundaries to areas such as Cambridgeshire and beyond
to deliver benefits for the wider region. An effective transport system is the lifeblood of our
rural area.
We also want greater local influence over planned improvements to the Strategic Road
Network and greater local engagement and influence over the development and operation
of the Greater Anglia Rail franchise. We believe this will ensure that government and
private sector investments provide better value for money and are focussed strongly on
making East Anglia a more attractive place to start up, locate and grow business.
Our “Norwich in 90” rail campaign has brought together private and public sector partners
around a compelling business plan to support investment and growth and we have
established effective delivery through the Local Transport Body and Skills Board. Not only
will such infrastructure unlock business and housing investment throughout East it will also
ensure the port of Felixstowe, the UK’s busiest container port, continues to grow and
contribute to UK economy.
Supporting Business Growth
Building on the success of our Growth Programme, we will enhance the Growth Hub which
is already exceeding ambitious performance targets. This will continue to provide a single
point of contact for business support. By seeking devolution of national support schemes,
including UKTI, MAS and Growth Accelerator this will ensure that businesses have the
support they need to help them grow, compete and win in the global marketplace.
Co-operation amongst Key Partners
All the Norfolk and Suffolk Councils have played a major role in the acknowledged success
of New Anglia LEP, judged to be one of the most successful in England. This is testament
to the strong and enduring collaboration and leadership from private and public sector
organisations across Norfolk & Suffolk. We all want this to continue and strengthen so that
together we can release the further potential that exists, particularly on growth and in
tackling the productivity challenge.
Our submissions to the Comprehensive Spending Review on the wider opportunities
presented by devolution represent the respective positions of the authorities. We believe
that devolution presents a once in a generation opportunity for public service reform and
improved collaborative working, not just on growth and productivity, but the range of
opportunities highlighted above. Working with other partners to improve health economies
19
is critical to delivering sustainable public services and we are committed to working with
our partners to make the most of the opportunity offered by devolution to do so.
Support for Key Industry Sectors
Focusing on growth, we know the East Anglian economy, already a net contributor to the
Exchequer, has the potential to grow faster, with strengths in key sectors such as agritech, energy, ports & logistics and the digital economy. Linking Greater Cambridge and
Greater Norwich with their two world-class universities and research facilities with the A11
growth corridor should further accelerate jobs and growth.
Our innovation and research pedigree is world class, with Norwich Research Park (NRP),
hosting the Institute of Food Research, The Genome Analysis Centre (TGAC), The
Sainsbury Laboratory and The John Innes Centre. We have the University of East Anglia
(UEA) with its established record across disciplines, and the Norwich University of the Arts’
international reputation.
In Suffolk, the University Campus Suffolk, opened in 2007 has grown quickly and is
applying for Taught Degree Awarding Powers currently. In addition our private sector
includes Adastral Park, home to BT’s global research facility and other tech companies
and the Hethel Engineering Centre, a hub for innovation.
Growth in the IT and Digital sector supported by Norwich University of the Arts (NUA),
presents a huge opportunity for East Anglia, even more so when you factor in collaboration
with Cambridgeshire and the Greater Cambridgeshire and Greater Peterborough LEP.
Close to mainland Europe and the wider South East we want East Anglia to be a centre for
global business, offering high value, secure and sustainable jobs to everyone who lives
there.
Employment & Skills
We are already making good progress. 88% of 18-24 year olds are in work or education
and the number of young Job Seekers has fallen by almost 40% in the last 12 months.
However, 2,675 16-24 year olds remain on Job Seekers Allowance (JSA), 2,770 on
Employment Support Allowance and the rate of youth unemployment in our most deprived
towns and some rural areas is still above regional and national average. With the help of
Government, we will deliver the national Youth Obligation through a local promise that all
our 14-24 year olds will receive the personal support they need to make a successful
transition into post-16 learning, get an apprenticeship, work experience or a job within
three months of leaving education or employment. This is our Youth Pledge.
Democracy & Governance
We appreciate the need for clear and democratically accountable governance which in
turn recognises and reflects the nature of the distinct economic and social geographies
within a larger Combined Authority based on clusters of Districts or City Deal geography.
This proposal will incorporate clear, decisive and accountable decision making at the
geography that best matches effective local delivery
We will explore new forms of governance, based around a Combined Authority model,
customised for Norfolk, focused on growth and productivity and our other headline
proposals. Suffolk is committed to discussing arrangements with Norfolk and the New
Anglia LEP as they evolve further. We will happily enter into discussion about governance
arrangements which cross our county borders.
Meaningful Double Devolution
Built into a combined authority will be the importance of a meaningful double devolution
approach based on district clusters or City Deal areas, especially in respect of strategic
planning and housing delivery. The Greater Norwich partnership is a prime example of
how this can work successfully.
20
This way we can build on the strengths of the New Anglia LEP Board, its active
collaborations across public and private sectors, the universities and the LEP Sector
Groups.
We are confident that you will see these proposals as a clear commitment to build on what
we have achieved already, to strengthen the economy of East Anglia and recognise that
all the councils in the New Anglia LEP area are ambitious not just to support this growth,
but to exploit the wider opportunities presented by devolution for the benefit of our
communities and the country.
We can move at pace and look forward to a positive response to this expression of
interest. We are committed to working with you to meet the Spending Review deadline.
Yours sincerely
Cllr Nick Daubney
Leader - Borough Council of
King’s Lynn & West Norfolk and
Chair of Norfolk Leaders
Mark Pendlington
Chair - LEP
Cllr George Nobbs
Leader – Norfolk County
Council
Professor David Richardson
Vice-Chancellor - UEA
Professor John Last
Vice-Chancellor - NUA
Cllr Michael Wassell
Leader – Breckland District
Council
Cllr Andrew Proctor
Leader – Broadland District
Council
Cllr Graham Plant
Leader – Gt Yarmouth Borough
Council
Cllr Tom Fitzpatrick
Leader – North Norfolk
District Council
Cllr Alan Waters
Leader – Norwich City Council
Cllr John Fuller
Leader – South Norfolk Council
21
Appendix B

A prosperous Norfolk is fundamental to the UK’s continued push to be a global economic leader in the 21st century. It is vital
we get the support necessary to capitalise on our opportunities and create growth in high value jobs and business

We want greater devolution for Norfolk and there is much that can be gained by partners joining forces to increase
productivity. New solutions will focus on clusters of districts such as Greater Norwich.

We are keen to explore larger scale options, based on our LEP footprint of the combined counties of Norfolk and Suffolk and
we are actively engaged in working with Suffolk.

Our ambition doesn’t stop there. We will also pursue strategic links with Cambridgeshire, our historic East Anglian partners,
now even more accessible, thanks to the newly dualled A11.

This statement of intent is very much the start of a process and we want to begin discussions with Government on how we
accelerate the pace of growth and prosperity in Norfolk and beyond.
Norfolk has for centuries contributed to the economic growth of the country, through innovation and technological advancement in
agri-business and environmental management.
This has never been more true than today with innovation in the county at the heart of tackling the major global challenges of food
production, energy security and climate change.
The county is a world centre for hi-tech research, and in specialist manufacturing.The gas and offshore wind industry, supported by
world class engineering technology developing along the A11 Technology Corridor, underpins our Green Energy Coast. We have
both a well-established and diversified financial sector which is internationally recognised, and new areas of growth, like the digital
and creative sectors, are fuelled by our second university, the highly successful Norwich University of the Arts.
1
22
As Leaders, we want to build upon our current success and reap the benefits that devolution could offer our communities.
The county areas of Norfolk and Suffolk, with their centuries of common interest and culture, represent the core element of a
combined authority, working with our Universities and New Anglia Local Enterprise Partnership. The work of the LEP has been
underpinned by the support of local authorities across Norfolk and Suffolk and city deals in Greater Norwich and Ipswich.
Our immediate focus is Norfolk but we see strengthening connections, both physical and economic, to Cambridgeshire and our
neighbouring LEP as key to unlocking our area’s economic potential.
Our Devolution Deal
Devolution - initially with Suffolk and the New Anglia LEP – will help us realise our vision for a 21st century economy. Government
has recognised the potential of Norfolk, with welcome investments in key infrastructure including the A11, NDR and A47 and the
Norwich Research Park. But we are ambitious for more.
With greater devolution we could deliver:
Economic Growth & Productivity
 A new Anglia LEP productivity commission with a 100 day challenge to examine the scale of the productivity gap and
establish the root causes of the problem.
 A network of rural enterprise zones with innovation and improved productivity at their heart.
Coherent Planning & Housing
 A combined authority to provide a single vision to stimulate the growth, overcome blockages and provide better integration
and efficiencies, with the appropriate cluster level democratic governance to ensure delivery.
 Work with Government to identify new settlements, utilising Homes and Communities Agency powers and resources to plan
and deliver.
 Strengthened compulsory purchase powers to accelerate housing delivery.
2
23
Employment & Skills
 To work with Government on the roll-out of Universal Credit and test new approaches to providing in work progression to
support raising incomes and reducing welfare dependency.
Physical Assets and Infrastructure
 A five year funding settlement for local transport schemes to fund an integrated investment package to deliver our local
economic, housing and employment priorities. This will deliver better value for money and greater connectivity through
integrated transport solutions.
 Direct influence over the new Greater Anglia rail franchise and accelerate much needed improvements on the Norwich to
Liverpool Street (Norwich in 90) and King’s Lynn to Cambridge King’s Cross lines.
Action on Flood Risk
 Responsibilities, and associated budgets and funding, currently exercised by Environment Agency to transfer to the
Combined Authority to meet local priorities.
 Improved Health & Social Care
 Integrated commissioning to tackle the challenges facing Norfolk’s health and social care offer.
Foundations for growth
The Greater Norwich area represents 50% of the GVA of Norfolk and is a focus for housing and employment growth; Great
Yarmouth is an established energy centre; and there is also additional potential from growth in Kings Lynn and along the A11
corridor towards Cambridge.
Norfolk is England’s primary offshore energy county, having serviced the oil and gas sector in the Southern North Sea for 50 years.
This has helped its rapid growth to become a centre for new technology energy industries, especially offshore renewables. Around
£20bn of investment is planned around the UK by 2020 and the Southern North Sea basin presents by far the largest portion. The
East Anglia Array, situated off our Green Energy Coast, will ultimately comprise around 1000 turbines. This is infrastructure
development on a scale seldom seen outside of the Far East. Great Yarmouth and Lowestoft are already recognised as one of the
six national Centres for Offshore Renewable Engineering (CORE) and their Enterprise Zone is considered to be one of the most
successful in the country, delivering jobs and growth well ahead of its original target.
3
24
Car maker Lotus is synonymous with Norfolk. There is now a high tech cluster of businesses in this area, building on the Lotus
heritage and attracting further new high performance technology businesses to start up. This is the heart of the A11 Technology
Corridor, where hundreds of companies with links to the automotive and motorsports sector are based. We have available space
and plans to create significant numbers of new high performance engineering jobs.
Norwich Research Park (NRP), Home to Europe's largest concentration of agri-tech scientists, is turning world class science into
world class jobs. It houses the Institute of Food Research, The Genome Analysis Centre (TGAC), The Sainsbury Laboratory, The
John Innes Centre and the University of East Anglia (UEA). It is also a globally renowned centre for the study of climate change,
due to the close association between the Tyndall Centre and the Climatic Research Unit at UEA. This is coupled with leading edge
research at UEA through the Energy Materials Laboratory. The Park has superb business incubation facilities – the NRP
Innovation Centre, the Bio Incubator, the new Centrum building and the unique Enterprise Centre at the UEA - Britain’s greenest
building. New companies benefit from the cluster effect of specialist researchers and the NRP has 52ha of development land, with
the Greater Norwich City Deal set to create 7,000 jobs there by 2031.
The 200 year old Norwich financial services cluster –which includes the largest concentration of insurance business in the UK
outside of London - and new hi- tech industries (including Norwich Tech City), are both ideally placed to benefit from the success of
London and Cambridge. The emerging Centre for Advanced Knowledge Engineering campus which is being developed by Aventa
Capital Partners at Downham Market in the west of the county is a case in point, with expectations of more than 4,000 new jobs in
the new & rapidly growing data analytics sector.
As well as these unique facilities, Norfolk has two further attributes that can support rapid economic growth. It has an ambitious
public service - in local government, higher education and health services - that supports innovation and takes pride in providing
space for new businesses to grow. We work closely to both support fledgling business and get out of their way when they are
ready to fly.
And, importantly, Norfolk also has the room to grow. Situated less than 100 miles from the nation’s capital (albeit with a number of
infrastructure projects still necessary to capitalise on this proximity), we have space for new business and new homes and we are
committed to creating the business growth, jobs and housing needed to achieve that growth.
4
25
As part of any devolution agreement for Norfolk and Suffolk, opportunities should be seized to develop a local Rural Productivity
Plan for the two counties, in support of the national programme, to address the challenges faced by businesses and local
communities in rural and isolated areas. Examples of where local solutions might be developed could include problems faced by
young people accessing education and training opportunities; centralisation of many public and financial services; development of
successful market town programmes to compete with internet based shopping; and developing new approaches to business
development in rural areas through conversion of agricultural buildings to business, rather than second or holiday home use. This
would deliver more balanced and sustainable rural communities.
We recognise the need for clear and democratically accountable governance which recognises and reflects the nature of our
economic social geography. This is likely to incorporate clear decisive, and accountable decision making, built into a combined
authority which reflects the importance of greater Norwich and our mixed urban/rural area. A meaningful double devolution
approach will provide appropriate local governance to the delivery of growth.
We can move at pace and look forward to a positive response to this expression of interest.
5
26
Agenda Item No___11_________
CORPORATE PLAN 2015-2019 AND LOCAL GOVERNMENT CONTEXT
Summary:
The corporate plan is the overarching component of the
Council’s policy framework and this new version will
provide strategic direction through to 2020. It is
presented as a high level document outlining the
priorities for the authority and the key actions which the
organisation will take to achieve those priorities. It
provides the context for the budget and has been
prepared alongside the Council’s anticipated resourcing
framework. Implications for the allocation of financial
and other resources, risk, sustainability, and equalities
will stem primarily from the implementation of actions
and delivery of services designed to secure the stated
priority outcomes.
Options considered:
The Council’s Constitution requires a Policy Framework
within which resources will be allocated and strategic
priorities agreed. The format is a matter for Council.
Conclusions:
The Corporate Plan sits at the heart of the Council’s
policy framework. It sets out the corporate priorities the
outcomes by which success can be measured and the
actions designed to delivery those outcomes. Achieving
the plan will be challenging in the current economic
climate. However, it will provide the council with clear
direction and guidance in work planning and resource
allocation, and in service delivery.
Recommendations:
1. CABINET is requested to recommend approval
of the Corporate Plan 2015 – 2019 by Full
Council at its meeting on 23 September 2015.
2. OVERVIEW AND SCRUTINY COMMITTEE is
requested to consider the Corporate Plan and
refer any comments to the meeting of Full
Council on 23 September 2015
Reasons for
Recommendations:
Sound governance and management of the Council
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and which are not
published elsewhere)



Demographic date from Census 2011
County and Government collated data
Information commissioned for the District e.g. Strategic Housing Market Assessment
27
Cabinet Member(s):
Cllr Tom Fitzpatrick
Ward(s) affected:
All
Contact Officer, telephone number and email:
Sheila Oxtoby, Tel: 01263 516000, Email: Sheila.Oxtoby@north-norfolk.gov.uk
1.
Introduction
1.1
In preparing the Council’s Corporate Plan for the next four years there are a
number of contextual issues which are relevant when considering the
Council’s strategic direction. These are outlined within the report and include
both the national and local context within which the Plan has been prepared.
1.2
Members are asked to consider the priorities as set out in the Corporate Plan
2016-2020 as attached at Appendix A and to confirm that these provide the
strategic policy context within which future Council plans, strategies and
policies will be prepared.
1.3
The priorities as set out in the attached document, however, are not intended
to be all encompassing in that they do not cover all of the services or activities
which are provided by the Council. There will be a more detailed annual
activity plan which is prepared alongside the budget detailing the actions and
activities which will be delivered to ensure that the required improvements
and changes are progressed in line with the ambitions of the Corporate Plan.
Each service will then prepare more detailed service plans which in turn will
link to individual employee appraisals.
1.4
At this stage, the performance framework will also be updated. The
performance framework will report on those items which can be measured
and for which the Council has some direct influence. These are in place for
two reasons;
1.5
To ensure that targets are set where performance needs to be measured to
ensure that a good level of service is being provided to our customers and/or
where there are financial implications and budgets which are being set based
upon certain deliverables.
1.6
Secondly, it provides a mechanism for monitoring outcomes in a proactive
and responsive manner and early identification of any potential problems.
1.7
A further report will be brought late autumn outlining any changes to the
performance framework.
28
2.
Background
2.1
In preparing a four year plan, it is essential that this is informed by the
following;





The needs and aspirations of our residents
The national and local economic context
The government’s agenda
The financial constraints being placed on the Council through government
cuts in funding
The financial opportunities available to the Council through income generation
and other grant funding mechanisms
3.
Needs and aspirations of our residents
3.1
There is a wealth of data which is available to the Council from the 2011
Census about the demographics and make-up of the District. We also have
access to data which is collated annually by various government departments
as well as information held at a County level and information which has been
commissioned specifically for the District eg Strategic Housing Market
Assessment.
3.2
Whilst there are specific pockets of deprivation in certain wards and the
issues faced by individual communities are not generic across the District,
there are certain characteristics which bind the community of North Norfolk
and should inform our priorities.
3.3
Key statistics for the Council in preparing the Corporate Plan are:








3.4
Forty five miles of dynamic coastline;
A population of just over 100,000 with 31% of the population aged over
65 (nearly double the England average) and an over 85 population which
is due to increase by 40% by 2021;
Health issues linked to obesity as well as specific health issues
associated with the age profile with high numbers of people living with a
long term debilitating illness;
Levels of sparsity which place the District in the 20% most sparsely
populated areas of the country;
Key employment sectors which include traditional low wage and seasonal
employment such as tourism, manufacturing, wholesale and retail, with
public services and financial business services being the other main
areas of employment;
Growth in the wind energy sector and other specialist sectors along with
an increase in cottage industries and business start-ups;
47% of the District is designated as an area of outstanding natural
beauty;
9% of the housing stock is classified as a second home.
The Corporate Plan priorities therefore reflect the particular needs of the
District but must also be prepared in the context of the national economic
situation. North Norfolk does not exist in isolation and having key aims which
reflect the need for people to have access to jobs, decent housing and reduce
29
dependence on welfare are critical components of the Council’s ambition
whilst at the same time contributing to the local, regional and national
economic recovery programme.
3.5
In the last four years, unemployment (measured through JSA claimants) has
reduced from 1425 in June 2011 to 538 in June 2015, whilst over the same
period the number of registered businesses has increased from 4710 to 4735.
3.6
As we revise our planning policies there will always be a balance between
housing and jobs and a challenge in meeting local housing need whilst being
responsive to market demand. The ratio of average lower quartile earnings to
house prices has worsened in recent years with the ratio now over 8.
Alongside 9% of the housing stock held in second home ownership, this will
continue to be a challenge but links closely with the need to up-skill the
workforce.
3.7
The Council has recently commissioned an inward investment strategy to
consider our future interventions in a changing economic market.
4.
National and Local Economic Context
4.1
As Members will be aware, the UK Economy had suffered the deepest
recession and the slowest recovery in almost 100 years. Now though it is
expanding at the fastest rate of all the world’s leading economies. The year
on year growth in the first quarter of 2015 was 2.4%, although the rate of
growth has slowed over recent quarters.
4.2
In its recent annual report, The Office for Budget Responsibility (OBR) said
that without spending cuts or tax rises, the national debt would only increase,
and a permanent £20bn cut in annual public spending will be needed by
2020. This would help bring the national debt down to 40% of Gross
Domestic Product (GDP) by 2064. If achieved, this means it would have
taken more than half a century to bring the national debt back to the same
level it was before the 2008 financial crisis. Last year, public sector net debt
was £1.8tn, or 80% of economic output, compared with £600bn, or around
42% of GDP, in 2008.
4.3
The outcome of the General Election is widely considered to be positive for
the UK growth prospect, although the prospects of an “in-out” referendum on
membership of the European Union before 2017 may dampen business
investment in the short to medium term.
4.4
However, despite growth projections, if the new government is to deliver its
aim of achieving a budget surplus, there will have to be tax rises or a sharp
reduction in government spending. The chancellor has announced spending
cuts to welfare and government departments totalling £17bn in his summer
Budget for which further details are provided in Section 6.
4.5
Clearly the national predictions on growth and employment provide the basis
for calculating future government income and therefore public sector
expenditure levels will be dependent upon achieving target levels of growth
whilst at the same time reducing national debt. This is therefore without doubt
a challenging time for the public sector and reductions in funding are to be
expected and planned for. Indeed, the fifth Fiscal sustainability report,
30
published by the OBR on 11th June shows that further tax increases or
spending reductions are likely to be needed after the current fiscal
consolidation to help meet the costs of an ageing population.
4.6
It is against this economic and fiscal backdrop that the government set out its
agenda for the first session of this Parliament on 27 May 2015.
5.
The government’s agenda – Queen’s Speech 27 May 2015
5.1
The following section provides a summary of the new Bills which the
Government intends to bring forward and which will be of most relevance to
local government, and in particular the District Council. These are:





Cities and Local Government Devolution Bill
Housing Bill
Enterprise Bill
Full Employment and Welfare Benefits Bill
Energy Bill
Cities and Local Government Devolution Bill
(now at third reading in the House of Lords)
5.2
Whilst there has been a great deal of focus on Elected Mayors the provisions
of this Bill enable combined authorities to be established across England.
Provisions in the Bill are generic (to be applied by order to specified combined
authorities and their areas) and enable:





An elected mayor for the combined authority’s area who would exercise
specified functions and chair the authority.
The mayor to undertake the functions of Police and Crime Commissioner
(PCC) for the area.
Where a mayor is to have PCC functions, allow the current PCC term of
office to be extended until the mayor is in place.
Remove the current statutory limitation on its functions (currently these
are limited to those on economic development, regeneration, and
transport).
Enable local authority governance to be streamlined as agreed by
councils.
5.3
The provisions should enable local authority governance to be streamlined by
devolving housing, transport, planning and policing powers to the combined
authority, as agreed by the relevant councils (i.e. those affected by the
change). There is no requirement for shire areas to introduce elected mayors
and the potential powers or functions are deliberately flexible in the Bill.
5.4
Freedoms on planning, development and housing are intended to allow
delivery of higher growth, and speed up delivery of new housing. The
Government believes that certainty over budgets and greater fiscal freedom
will allow areas to plan better to build infrastructure. Sharpened governance,
closer working with business and clearer accountability will help strengthen
local support for and ownership of plans for growth.
31
5.5
5.6
5.7
5.8
Housing Bill
The intentions of this Bill are to;
 Increase the supply of new Starter Homes (to be exclusively offered to
young first-time buyers, at a 20 per cent discount below their open market
value).
 Helping those wishing to build their own home.
 To enable the extension of Right to Buy levels of discount to housing
association tenants.
 To require local authorities to dispose of high-value vacant council
houses, which would help fund the Right to Buy extension discounts and
the building of more affordable homes in the area.
 To take forward the Right to Build, requiring local planning authorities to
support custom and self-builders registered in their area in identifying
suitable plots of land to build or commission their own home.
 To introduce a statutory register for brownfield land, to help achieve the
target of getting Local Development Orders in place on 90% of suitable
brownfield sites by 2020.
 To simplify and speed up the neighbourhood planning system, to support
communities that seek to meet local housing and other development
needs through neighbourhood planning.
Enterprise Bill
The intentions of this Bill are;
 To extend and simplify the Primary Authority scheme, which allows a
business to get advice on regulation from a single local council and that
advice must be respected by all other councils.
 To introduce business rates appeals reform and allows for the Valuation
Office Agency to share information with local government.
 To cut red tape by ‘at least £10 billion’ in Whitehall and from independent
regulators. The legislation will also create a Small Business Conciliation
Service and cap the exit payments made to public sector workers.
Full Employment and Welfare Bill
This Bill will propose the following welfare changes;
 freeze the main rates of a number of working-age benefits, tax credits and
Child Benefit, and reduce the level of the benefit cap.
 replace Jobseeker’s Allowance for 18 to 21-year-olds with a Youth
Allowance time-limited to six months, after which individuals will be
required to undertake an apprenticeship, training or community service;
remove 18 to 21-year-olds’ automatic entitlement to Housing Benefit
 provide Jobcentre Plus support in schools to supplement careers advice.
Energy Bill
This is to ensure local planning authorities have consenting powers for all
onshore wind farms. The Bill would make legislative changes to remove the
need for the Secretary of State’s consent for any large onshore wind farms
(over 50MW).
32
5.9
On Friday 10th July the Government also published its Productivity Plan which
contained a number of planning reforms to deliver the Government’s
manifesto commitments, and reaffirm the importance of local plans and the
further simplification of the system. It made clear that councils need to press
ahead with plan-making where they are not already doing so – with new
league tables being published and intervention considered where inadequate
progress is being made. Performance expectations in handling planning
applications is also being strengthened, including minor development being
brought within scope for the first time (so that authorities may in future be
designated as under-performing where the speed or quality of decisions falls
below an acceptable level). Important simplification measures announced in
the plan include:
new powers to grant permission in principle for sites on the statutory
register of brownfield land; and
 revised thresholds for agricultural building permitted development, and
action in London to enable additional stories to be added more easily to
properties in appropriate locations.
The plan also announces the intention to introduce a new dispute resolution
mechanism for section 106 agreements, and further reform of compulsory
purchase to make it clearer, faster and fairer for all. The Productivity Plan also
announces that regulation on house builders will be reduced. This includes
not proceeding with zero carbon homes but to enable the recently
strengthened energy efficiency standards in the building regulations to be
implemented.

5.10
6.
Summer Budget 2015
6.1
To achieve a Budget surplus in 2019-20 the Government has committed to
£37 billion of further consolidation measures. The Summer Budget set out
around £17 billion of measures that will reduce the deficit, including £12 billion
by 2019-20 from welfare reform and £5 billion by 2019-20 from tackling tax
avoidance and tax planning, evasion and noncompliance, and imbalances in
the tax system. In the autumn, the Government will set out plans to deliver the
remaining £20 billion of consolidation measures required to achieve the
surplus following a rigorous Spending Review process.
6.2
Whilst no major funding changes for councils were announced, the following
changes will impact on Council services.
6.3
A mandatory National Living Wage for over 25s of £7.20 per hour, rising to £9
per hour by 2020. Although this may have an impact on local authorities
as employers, and on social care costs, these will be considered as part
of Spending Review discussions. There will also be continued wage restraint
in the wider public sector (1 per cent annual increase for the rest of the
Parliament).
6.4
On local authority assets, in the Autumn Statement of 2014 the Government
committed to expanding the One Public Estate programme to local authorities
33
in England with a significant asset base. The July Budget commits a further
£6 million to continue to deliver progress and ensure that local government
rationalises its estate to contribute to growth and ensure efficient use of public
assets.
6.5
The Budget announced that the Government will work with Local Government
Pension Scheme administering authorities to ensure that they pool
investments to significantly reduce costs, while maintaining overall investment
performance. The Government will invite local authorities to come
forward with their own proposals to meet common criteria for delivering
savings. A consultation to be published later this year will set out those
detailed criteria as well as backstop legislation which will ensure that those
administering authorities that do not come forward with sufficiently ambitious
proposals are required to pool investments.
6.6
There were a number of announcements on devolution including further
devolution of powers from central government to Greater Manchester. The
following areas also received confirmation that we will be working with them
over the coming months on devolution deals: Sheffield City Region, Liverpool
City Region, and Leeds, West Yorkshire and partner authorities. The
Secretary of State and the Chancellor have reiterated their invitation to any
area to approach DCLG and the Treasury to discuss proposals for increased
powers and greater freedoms to maximise their economic growth.
6.7
To date the Coastal Communities Fund has been oversubscribed so it was
welcome news that the Fund will be extended until 2020-21. This Council will
be closely monitoring further announcements regarding this funding.
Commitment was also given to launch a new bidding round for Enterprise
Zone extensions and this was formally announced on Thursday 16 July.
Again this is of interest to the District Council.
6.8
Finally, the Chancellor set out how the Government will deliver its manifesto
commitment of reducing the welfare bill by £12 billion by 2019-20. The key
announcements were as follows:





the Government will reduce rents paid by tenants in social housing in
England by 1% a year for 4 years from 2016;
working age benefits will be frozen for four years;
those on higher incomes – over £40,000 in London, or £30,000 elsewhere
– living in social housing will be required to pay rents at the market, or
near market, rates. Local authorities will be required to return the
additional rental income they raise to the Government. The Government
will consult on this shortly.
the Government will increase funding for Discretionary Housing Payments
to a total of £800 million over the course of this Parliament; and
out-of-work 18 to 21 year olds will no longer be automatically entitled to
the housing element of Universal Credit.
7.
Financial Constraints for local government
7.1
With the fiscal pressures being placed on the government as described in
Section 4, the Council needs to be aware of the future forecasts of public
34
sector expenditure not only for the District Council’s own financial projections,
but also to appreciate the pressures being placed upon the public sector as a
whole.
7.2
In the County Council’s recent publication ‘Re-imagining Norfolk’ the County
Council has highlighted their financial challenges with £149million needed to
be found over the next four years.
7.3
At North Norfolk District Council, we are in a strong financial position to meet
the challenges ahead and have continued each year to produce a sustainable
budget position ie we are not relying on one-off reserves when setting the
budget. However, with the projected cuts in government funding the forecast
gap between what we currently spend and our projected income is just over
£1.6million by the end of year 4 (2019/20) if no changes were made to the
way in which we currently manage the Council’s business.
7.4
Therefore continuing ‘as is’ is not an option and the better prepared the
organisation is to meet this financial challenge, the less impact there will be
on our residents and service users.
7.5
As part of the Corporate Plan there is a business strategy which is aligned to
the financial strategy. This sets out how the Council intends to meet the
financial challenge whilst at the same time continue to provide good quality
services and enhance the quality of life for all North Norfolk residents.
7.6
Key to this is an understanding of the financial opportunities presented
through financial incentives and income generation, as well as the business
opportunities which will deliver a combination of income and efficiencies.
8.
Business Strategy and Financial Opportunities
8.1
The Business Strategy responds to both national and local pressures,
including the need to increase productivity as well as seeking to achieve full
employment. This is therefore a strategy which supports growth and income
generation, whilst at the same time driving down costs through the re-design
of services, use of technology and reduced overheads. It is clear that a ‘do
nothing’ approach is not an option and therefore the Council must think
carefully about adopting a more commercial approach to business decisions
and ensure it has the right skills within its staff to take forward this agenda.
The Business Strategy is therefore closely aligned with a new ‘Competency
Framework’ for staff which links our corporate ambitions with our values and
individual competences.
8.2
The Strategy is aligned across six key themes:
Growth - New Homes and Business Rates – Under the current allocation
method of New Homes Bonus (NHB) there is a direct financial benefit to the
Council from growth in homes through the NHB funding and through
increasing the Council Tax Base and additional income generated from
Council Tax. Whilst new housing growth will have an impact on the demand
for local services, there will still be a net gain in terms of overall income
delivery. For similar reasons growing the business rates base will have a
direct impact on the level of business rates income retained locally. Equally,
maintaining existing business rates remains a priority in that decline in
35
business rates will reduce the amount of income retained locally. These
financial incentives directly align with our corporate ambitions.
Digital Transformation – Building upon the Business transformation project
that commenced in 2014 savings have started to be identified from changes
to service delivery from the implementation of new technology. The overall
programme will be delivered over a number of years and savings will then be
realised. The Planning Service is the first service to be comprehensively redesigned and this if expected to be fully operational from April 2016 with
associated savings.
Property Investment and Asset Commercialisation – Opportunities for
investment in properties whether direct or indirect can be considered to
achieve either an income stream or improved returns on investment. Any
direct investment would be subject to a robust business case and the full
implications in terms of borrowing costs if required would need to be taken
into account. Indirect property investments can also be considered, for
example as part of the Treasury Management Strategy, i.e. similar to the
current £5 million pooled property investment. Again, detailed consideration of
this will need to take account of whether the investment is a revenue/treasury
management transaction or a capital investment. The Council currently holds
assets with a balance sheet value of around £48 million. The assets are held
for different purposes, for example service delivery, investment properties and
community assets. Again opportunities for the most efficient utilisation of the
Council’s assets and maximising the return that the Council receives from the
assets needs to be taken into account.
Shared Services/Selling Services – Creating efficiencies through shared
services continues to be a priority for central government. Identifying such
opportunities must therefore continue at a local level, ensuring that realistic
and deliverable benefits can be achieved.
Collaboration and Localism – Identifying opportunities to work alongside
other public sector partners and organisations to deliver services.
Maximising Income and Reducing Costs – Maximising service and other
income through collection and also critically reviewing the cost bases.
Through the regular budget monitoring process and annual budget process
service efficiencies and savings will be considered where there is little or no
impact on service delivery.
Procurement – a review of procurement best practice will also be undertaken
in partnership with other District Councils. This is to ensure that best value is
achieved in all procurement activity and the potential to benefit the local
economy is understood by ensuring SMEs are well placed to bid for contracts.
In support of the wider economy, understanding supply chains and
procurement practices across the public sector will form part of our economic
growth plans.
9.
Conclusion
9.1
When considering the national economic and fiscal projections it is clear that
the Council cannot operate in isolation and that the demographic and social
needs of our residents must be clearly at the forefront of the Council’s
agenda.
36
9.2
Growth sits at the heart of North Norfolk District Council’s priorities, and as
well as contributing to the national economic picture, with a strong indication
that devolution could lead to further fiscal freedoms, a strong local economy
will in turn underpin quality public service provision.
9.3
Increasingly this evidence suggests that a stronger emphasis on prevention
and early help will save the public purse over the medium to long term.
Therefore the Council has recognised its important role in supporting the
health and well-being of individuals and communities.
9.4
As the council reviews all of its spend over the coming months to drive further
efficiency there will be a strong focus on income generation and collaboration
to ensure that all residents of the District are given the best possible quality of
life and equality of opportunity
10.
Implications and Risks
10.1
The key risk relates to delivery failure which would impact on the Council’s
reputation and would hinder achievement of the priority outcomes. We are
able to mitigate that risk through ensuring that as much of the plan as
possible is built upon choices that the Council is free to make and determine
itself and through the flexible structure and annual action planning process
which will allow changes in emphasis and resource allocations a result of the
effect of any future external decision by central government. Parts of the plan
will require strong partnership with other organisations and we must therefore
work from the outset with those partners to ensure common understanding of
roles and commitment to achieving clear outcomes.
10.2
The corporate risk register will be updated with the adoption of the plan and
will be used as the basis for monitoring ongoing corporate and strategic risks.
11.
Financial Implications and Risks
The plan will be rolled out within the projected resourcing envelope through to
2019/20. The Council’s Financial Strategy (on the same Cabinet agenda)
underpins the Corporate Plan.
12.
Sustainability
12.1
Actions stemming from the corporate plan will be compliant with the Council’s
sustainability policies
13.
Equality and Diversity
13.1
Actions stemming from the corporate plan will be compliant with the Council’s
equality policies and will meet our statutory obligations.
14.
Section 17 Crime and Disorder considerations
No direct implications.
37
15.
Recommendations
1. CABINET is requested to recommend approval of the Corporate Plan
2015 – 2020 by Full Council at its meeting on 23 September 2015.
2. OVERVIEW AND SCRUTINY COMMITTEE is requested to consider the
Corporate Plan and refer any comments to the meeting of Full Council on
23 September 2015
38
CORPORATE
PLAN 2015 - 2019
39
CORPORATE PLAN 2015 - 2019
CONTENT
01 Jobs and the Local EconomyP4
02 Housing and Infrastructure P6
03 Coast and Countryside P8
04 Health and Well-Being P10
05 Delivering Service Excellence P12
2
3
40
Our Priority: A district with a thriving
economy offering better jobs and
prospects for local people.
We will:
Work to maintain existing jobs and help businesses expand by
Providing business grants and mentoring support
Ensuring our procurement practice supports small and medium sized businesses operating in the district
Supporting our market and coastal towns recognising their importance as economic hubs and local service
centres
Increase the number and support for business start-ups by
Providing a business start-up package of support and funding
JOBS AND THE
LOCAL ECONOMY
Improve the job opportunities for young people within the District by
01
Encouraging employers to offer apprenticeships
Working with partners to bring businesses and schools together to ensure skills match needs and jobs
Supporting provision of a North Norfolk centre for science, technology, engineering and maths (STEM)
Support major business opportunities and take-up of allocated employment land
across the district by
Working with the New Anglia Local Enterprise Partnership (NALEP) to access funding streams
Developing an Inward Investment Strategy for business growth to North Norfolk
Capitalise on our tourism offer both inland and along our historic coast by
Investing in our assets to support the tourism economy and promote the ‘Deep History’ concept
Encouraging a private sector lead to tourism promotion with support in developing a strong brand
Working with partners to improve access to faster Broadband for all our communities including investing
directly £1m over the next 2 years
5
41
Our Priority: To address housing and
infrastructure for local people whilst
meeting the market demand for
housing
We will:
Increase the number of new homes built in the District by
Encouraging the early completion of dwellings through incentivisation measures
Commissioning a specialist housing needs survey in the context of market and social demand
Providing grants and loans which support the delivery of local housing initiatives
Address housing need through the provision of more affordable housing by
Encouraging the building of affordable homes in sustainable locations
Addressing the housing waiting list by enabling more exception schemes that provide local housing for local
people
HOUSING AND
INFRASTRUCTURE
02
Ensure new housing contributes to the prosperity of the area by
Undertaking a review of all planning policies and land allocations to inform the new Local Plan up to 2036
Reduce the number of empty properties by
Working pro-actively across the Council using all available powers to bring empty properties back into use
Improve the infrastructure needs of the District by
Explore with partners the extent to which there is capacity to modify and expand train services along the
Bittern Line from Norwich to Sheringham
Explore with partners the scope to improve road network capacity alongside major development proposals.
6
7
42
Our Priority: A district where the
beautiful natural environment is
managed and protected for future
generations
We
will:
Work jointly with neighbouring authorities and key partners to attract funding to
manage the coast for future generations by
Supporting fishing and agriculture in North Norfolk through accessing funding streams such as European Grants
Working with partners to identify funding and deliver schemes which will enable us to manage our coastline
Protect the wonderful countryside and encourage sustainable access by
Caring for our areas of outstanding natural beauty and protected areas and liaising with other organisations
Through careful management, ensuring our natural environment contributes to the tourism offer and wider
COAST AND
COUNTRYSIDE
economic well-being of the area
03
Continue to improve recycling rates and reduce the amount of waste material going
to landfill by
Tackling dog fouling, fly tipping and litter across our District through Community Engagement Schemes
Improve the environment both in our towns and in the countryside by
Addressing properties and sites which create eyesores and detract from our natural and built environment
9
43
Our Priority: A district with vibrant
communities and where healthy
lifestyles are accessible to all.
We will:
Support local residents and their communities by
Continuing to operate the Big Society Fund to meet local needs and aspirations
Developing projects to address fuel poverty and energy efficiency
Working with charities and other voluntary organisations
Address issues leading to ill health and improve the quality of life for all our
residents by
Encouraging more community involvement and volunteering
Providing support and advice to people who are vulnerable and/or struggling with issues which are negatively
impacting on their lives
HEALTH AND
WELL-BEING
Encourage participation in a range of sports and activities by
04
Promoting North Norfolk as a Sporting Centre of Excellence, to help encourage our talented young people to
aim for and reach the highest possible level in their sport
Working with partners to invest in sport and recreation facilities across the District
Supporting iconic sporting events
Promoting health and fitness for all ages, abilities and ambition
10
11
44
Our Priority: To make the council
more efficient so that we can both
deliver our priorities and offer value
for money for local taxpayers
We will:
Help you to get what you need from the Council easily by
Redesigning services around the customer and using technology as a driver for efficiency
Ensuring all information from the Council is accurate and readily available, whether people choose to visit in
person, online or telephone
Collaborating and developing local solutions leading to a more joined up service for our residents
Ensure the Council’s finances continue to be well managed and inform our decision
making by
Reducing overheads and sharing services where appropriate
DELIVERING SERVICE
EXCELLENCE
05
Maximising the value from services delivered through contracts
Taking a more commercial approach to the management of our asset portfolio
Investing in property as a means by which we will improve income streams
Publishing decisions in accordance with the government’s Transparency Agenda
Value and seek to develop the Council’s staff and Members by
Recognising and rewarding good performance and celebrating success
Encourage a culture of learning and development
Offering focussed training to our staff
Offering Members the opportunity to develop their expertise
12
13
45
CORPORATE
PLAN 2015 - 2019
North Norfolk District Council
Holt road, Cromer
Norfolk NR27 9EN
facebook/northnorfolkdc
@northnorfolkdc
T: 01263 513 811
www.northnorfolk.org
46
Agenda Item No___12_________
MEDIUM TERM FINANCIAL STRATEGY
Summary:
This report presents an updated medium term financial
strategy for the period 2016/17 to 2019/20. The strategy
has been updated to support the Corporate Plan for the
period 2015 to 2019 which is included as a separate
item on the agenda.
Options considered:
The MTFS has been refreshed following the May 2015
elections and is presented in support of the Corporate
Plan for the period 2015 to 2019.
Conclusions:
The Council continues to face a funding gap in the
medium term, the MTFS has been refreshed alongside
the Corporate Pan for the period 2015 to 2019.
Recommendations:
It is recommended that:
1) Members consider and note:
a) The current financial forecast for the period
2016/17 to 2019/20;
b) The current capital funding forecasts;
2) Members consider and recommend to Full
Council:
a) Continuation of the current Local Council
Tax Support Scheme for 2016/17;
b) That the Local Council Tax Support Scheme
grant for parishes be offered to those parish
and town councils that accepted the grant in
2015/16 and the total amount available is
reduced in line with the Council’s relative
funding reductions as outlined within the
strategy document;
c) The revised reserves statement as included
at Appendix A to the financial strategy.
Reasons for
Recommendations:
To refresh the Medium Term Financial Strategy in line
with the Corporate Plan and to inform the detailed
budget work for 2016/17.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and
which are not published elsewhere)
Financial Strategy 2015/16 to 2017/18 Financial Strategy 2015-16 to 2017-18
2015/16 Budget report, item 11 February 2015 Cabinet - February 2015 Cabinet
Agenda
Cabinet Member(s)
Ward(s) affected
47
Cllr Wyndham Northam
All
Contact Officer, telephone number and email: Karen Sly, Head of Finance, 01263
516243, Karen.sly@north-norfolk.gov.uk
1.
Introduction and Background
1.1
The paper attached as an appendix to this covering report sets out the
Financial Strategy for the period 2016/17 to 2019/20. It sets out how both the
external financial changes and internal budget pressures will impact on the
overall financial position of the Council for the next four years.
1.2
In addition the Financial Strategy updates the Council’s financial projections.
It identifies the budgetary pressures on the Council during the period of the
Corporate Plan by examining inflation, service pressures, income streams,
reserves and the capital programme and seeks to identify strategies for
addressing these areas within the overall context of the revenue and capital
budgets. Revised funding projections have been made and are included
within the MTFS.
1.3
As part of the annual budget process the Financial Strategy is the first of a
number of pieces of work which culminate in setting the annual budget for the
forward financial year in February 2016.
2.
Financial Implications and Risks
2.1
The detail within the financial strategy has highlighted the significant
challenges that Local Authorities are facing in terms of the forecast funding
reductions.
2.2
The strategy provides an update to the funding forecasts for the period
2016/17 to 2019/20.
2.3
The Strategy provides details of a programme of efficiency savings and
workstreams that will be delivered over the period of the financial strategy
that will assist in reducing the forecast budget gap.
3
Sustainability
3.1
None as a direct consequence from this report.
4.
Equality and Diversity
4.1
This report does not raise any equality and diversity issues.
5.
Section 17 Crime and Disorder considerations
5.1
This report does not raise any Crime and Disorder considerations.
48
FINANCIAL STRATEGY 2016/17 TO 2019/20
1.
INTRODUCTION
1.1
The Medium Term Financial Strategy (MTFS) is refreshed annually ahead of the
detailed preparation of the budget for the following financial year. The reason for
updating the MTFS annually is to ensure a longer term/strategic view can be taken
when making decisions that will have a financial impact in the current and future years.
1.2
The MTFS informs the attainment of the Council’s priorities by setting out the
framework within which resources are available to the Council over the medium term
and the financial challenges facing the Council in terms of future funding gaps.
1.3
The MTFS of an authority is a strategic document that supports the delivery of the
Corporate Plan. The Council’s Corporate Plan has been updated following the
elections in May 2015 to provide the new strategic direction for the authority during the
next four years and is being reported to Cabinet in September 2015.
1.4
The MTFS provides a high level assessment of the resources available and outlines
the financial projections for the following four financial years (beyond the current year).
The financial projections take into account a number of local and national factors which
inform the assumptions upon which the projections are based. These will include
known spending pressures and commitments along with forecast of future funding
reductions.
1.5
The MTFS covering the period 2015/16 to 2017/18 was presented for approval in
September 2014 ahead of the detailed consideration of the budget for 2015/16. In
February 2015, the Council approved the budget for 2015/16 and at the same time
considered the financial projections for the three year period 2016/17 to 2018/19. At
this time forecast funding gaps of upto £1.6 million were identified prior to achievement
of savings or increases in income which were yet to be identified.
1.6
The strategy explores the expenditure plans of the Council and sets these against the
impact of reduced central government funding. It also considers the capacity for
levying council tax, the likely levels of grants and the part played by fees and charges
in the overall revenue budget of the Council going forward.
1.7
In addition the MTFS explores the demands on the capital programme both in terms of
ambition and resources and on the level of reserves held by the Council.
1.8
Finally the strategy addresses both the sustainability of the Councils financial position
and examines the risks inherent in the proposals.
1.9
The MTFS includes the following:

Background and Context – this provides an overview of the wider financial
issues and assumptions that have been made in the strategy and forward
financial projections;

Resources – this provides an overview of the resources available to the Council
from grants and income;

Financial Forecast – this provides an update to the financial projections made in
February 2015 taking into account known changes to expenditure and income
forecasts and revised forecasts as applicable;

Reserves – this section provides an overview of the Council’s reserves both
general and earmarked;

Capital – an overview of the current capital programme and resources is
included within this section of the MTFS;
Financial Strategy 2016/17 to 2019/20
August 2015
49
Page 1 of 27

Financial Strategy – this section of the document outlines some of the work that
is currently in progress or is due to commence in the short to medium term to
reduce the forecast deficit;

Risk and Sensitivity – this section outlines the more significant financial risks
facing the Council along with scenarios of the impact of changes to some of the
assumptions.
Financial Strategy 2016/17 to 2019/20
August 2015
50
Page 2 of 27
2.
BACKGROUND AND CONTEXT
2.1
The 2015/16 budget was set and approved in February 2015. At the same time the
forward financial projections for the following three years were reported. These were
based on current service delivery spending and income plans at the time taking into
account inflationary increases (where applicable) along with agreed savings plans and
additional income where applicable. They also included projections of government
funding based on the current finance settlement as announced in February 2015.
2.2
This document now provides the latest financial forecast for the period 2016/17 to
2019/20 which has been informed by both local and national factors that have or are
due to have an impact on the overall financial position for the Council moving forward.
2.3
The financial projections have been updated to reflect the latest indications of
government funding reductions and to take account of revised spending pressures and
commitments along with updated forecasts of property growth to inform the council tax
income and New Homes Bonus allocations along with local income sources.
2.4
There continues to be a number of important issues facing the public sector along with
the associated financial impact. This section of the report seeks to outline a number of
these issues, in particular the following:
2.5

Economic Outlook (2.5)

Funding (2.6)

Business Rates Retention (2.7.2)

New Homes Bonus (2.8)

Local Council Tax Support (2.9)
National Economic Outlook
2.5.1
The UK Economy had suffered the deepest recession and the slowest recovery in
almost 100 years. Now though it is expanding at the fastest rate of all the world’s
leading economies. The year on year growth in the first quarter of 2015 was 2.4%,
although the rate of growth has slowed over recent quarters.
2.5.2
The outcome of the General Election is widely considered to be positive for the UK
growth prospects. The undertaking by the Prime Minister to hold an “in-out”
referendum on membership of the European Union before 2017 however is likely
to dampen business investment in the short to medium term.
2.5.3
If the new government is to deliver its aim of achieving a budget surplus, there will
have to be tax rises or a sharp reduction in government spending.
2.5.4
In its recent annual report, The Office for Budget Responsibility said that without
spending cuts or tax rises, the national debt would only increase, and a permanent
£20bn cut in annual public spending will be needed by 2020. This would help bring
the national debt down to 40% of Gross Domestic Product (GDP) by 2064. If
achieved, this means it would have taken more than half a century to bring the
national debt back to the same level it was before the 2008 financial crisis. Last
year, public sector net debt was £1.8tn, or 80% of economic output, compared with
£600bn, or around 42% of GDP, in 2008.
2.5.5
Household consumption is key to economic growth in the coming year, and
consumption will be supported by the rise in employment, a recovery in real wage
growth, low interest rates and an increase in disposable incomes.
2.5.6
Inflation, as measured by the Consumer Prices Index (CPI) was 0.0% in June
2015, which is well below the Bank of England’s Monetary Policy (MPC)
Committee’s target of 2%. In the August Inflation Report, the Bank projected that
CPI will rise around the end of 2015 and is likely to return to the 2% target within
Financial Strategy 2016/17 to 2019/20
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two years. This implies that the Bank Rate could rise slightly sooner than
previously priced within markets, and slightly before the second quarter of 2016.
The rise in the Bank Rate is anticipated to be small and gradual from then on, and
an appropriate rate for a post-crises UK economy is likely to be between 2% and
3%. The weak global environment and resulting low inflation expectations are
likely to dampen long term rates.
2.5.7
2.6
Over the last couple of years, the UK had enjoyed one of the strongest
employment performances in its history, with unemployment falling by more than 2
percentage points since the middle of 2013. There has been a small rise in the last
couple of months however and it currently stands at 1.85 million. The Bank of
England governor Mark Carney says this might actually be a good thing. This is
because the rise suggests a rise in productivity as business do not need to keep
hiring more people and are using up spare capacity. This is good news for the
sustainability of the recovery. It means that the marked pick-up in wage growth
over recent months is more sustainable, and this is a good sign for the
sustainability of the economic recovery.
Funding
Spending Review
2.6.1
Following the May 2015 elections the Chancellor announced the Summer Budget
on 8 July. The Summer budget did not include any in-year reductions to Local
Government funding. The Spending Review is due to be announced late
November 2015 and will provide a greater steer around future public service
funding along with indications of the size of the reductions over the medium term. It
is likely that Councils will continue to face challenging funding reductions at the
same time as increasing spending pressures over the next few years. Some of the
key points around the 2015 Spending review are:

The Spending review will cover the period 2016/17 to 2019/20;

Promotion of innovation and greater collaboration in public services will be
key;

Unprotected departments have been asked to model reductions of 25-40%
real reductions by 2019/20;

Local Government is the largest un-protected budget;

Defence spending is protected.
Revenue Finance
2.6.2
The Government uses a measure called “Revenue Spending Power” for local
authority finance. The main elements of spending power include:



2.6.3
Council Tax Income
New Homes Bonus
Government Grants.
Table 1 provides a summary of the main elements of Revenue Spending Power as
included in the 2015/16 finance settlement. The settlement announcement included
figures for 2015/16 only. The projections for future financial years are informed by
these announcements along with any updates.
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August 2015
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Table 1 - Revenue Spending Power
2014/15
Adjusted
£000
Spending Power Components
2015/16
Settlement
£000
Council Tax Requirement (excluding parish)
4,928
4,943
Settlement Funding Assessment
6,273
5,331
30
43
Community Right to Challenge
8
0
Community Right to Bid
8
0
Indicative Council Tax Freeze Grant 2015/16
0
58
1,267
1,674
10
10
583
522
76
21
13,183
12,601
Adjustment to reflect Sect'n 31 grants for B Rates Cap
New Homes Bonus
New Homes Bonus: returned funding
Local Council Tax Support & Hsg Benefit Administration Subsidy
Council Tax Support New Burdens Funding
Total Estimated 'Revenue Spending Power'
Change in estimated 'revenue spending power' 2015/16
(582)
-4.4%
2.6.4
The main element of government funding is the “Settlement Funding Assessment”
(SFA) and includes revenue support grants (RSG) and the baseline funding level
(retained business rates). The baseline funding element is increased by RPI each
year and the RSG is reduced year on year in line with the governments programme
of funding reductions. Table 2 provides a breakdown of the SFA since 2013/14
when this measure of government funding was introduced.
Table 2 - Settlement Funding
Assessment (SFA)
Revenue Support Grant £000
2013/14
2014/15
2015/16
£000
£000
£000
4,235
RSG Annual Movement £000
RSG Annual Movement %
Baseline Funding Level £000
2,818
Baseline Funding Annual Movement £000
Baseline Funding Annual %
Total Settlement Funding
Assessment
7,053
2.7.1
2,404
(904)
(927)
-21.4%
-27.8%
2,872
2,927
54
55
1.9%
1.9%
6,203
(850)
-12%
Total SFA Movement £000
Total SFA Movement %
2.7
3,331
5,331
(872)
-14%
Revenue Support Grant (RSG)
The revenue support grant (RSG) element of the funding is anticipated to continue
to reduce year on year with an expectation that Local Authorities funding will be
predominately from the retained business rates. Based on current funding
forecasts, it would not be unrealistic to assume that there would be no funding
received from RSG by 2019/20. Table 3 below shows the actual RSG for 2015/16
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August 2015
53
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along with the current future forecasts to 2019/20. The forecast assumes further
reductions of 35% in RSG to just over £400k by 2019/20.
Table 3 - Revenue Support Grant (RSG)
2015/16
2016/17
2017/18
2018/19
Actual
Forecast
Forecast
Forecast
Forecast
£000
£000
£000
£000
£000
RSG
Movement £000
Movement %
2,404
(927)
-28%
1,563
(841)
-35%
1,016
(547)
-35%
2019/20
660
(354)
-35%
Business Rates Retention
2.7.2
2.7.3
The following outlines the main elements of the current business rates retention
scheme:

Business rates collected are split 50/50 between central and local shares.
The local share is then split 80/20 districts and County, so essentially
NNDC receive 40% of the business rates collected;

The system includes a mechanism of tariffs and top ups to reflect local
spending needs, essentially districts pay a tariff and counties receive a topup;

The business rates baseline is increased annually by RPI (in line with the
actual business rates payable) and the tariffs and top-ups are increased by
the same measure, RPI. The baseline allocation forms part of annual
budget finance settlement announcements;

The baseline, tariffs and top-ups are expected to grow in line with RPI each
year, other revisions will be when the business rate system is reset (in
2020 as stipulated in the current government policy) or at the time of a
revaluation (due to come into effect in 2017)1;

Local Authorities can keep up to 50% of the growth in business rate
income. They will however be required to pay a levy (to central government
outside any business rates pool) to ensure there is not disproportionate
growth within the overall system;

The Levy is used to fund the ‘safety net’ element of the system which
provides protection to those authorities that see their year-on-year income
fall by more than 7.5%, i.e. they are protected beyond the 7.5% reduction;

Business rates pooling provides a mechanism for a business rate pool to
be established which allows for the levy payment that would have been
paid to the government on growth, to be retained locally and used as
agreed by the authorities within the pool. NNDC has been part of the
Norfolk pool from 2014/15.
The previous two Autumn statements ( December 2013 and 2014) have included a
package of business rate relief measures to support businesses, including the
following:

A 2% cap on the inflation increase for 2014/15 and 2015/16 instead of the
annual RPI increase;
1
It is expected that as part of the re-valuation top-ups and tariffs will be recalculated in order that Local
Authorities do not lose or gain specifically due to revaluation.
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429
(230)
-35%

Extension of the small business rate relief, doubled from 50% to 100% for
properties with a rateable value of £6,000 or less;

A discount of £1,500 for all retail, pubs and restaurants with a rateable
value below £50,000 for two years up to state aid limits, from 1 April 2014;

Relaxation of the small business rate relief for a second property allowing
continuation of the relief for 12 months.
2.7.4
Local Authorities are being reimbursed for these measures via a section 31 grant,
although the grants are taken into account when determining the level of levy
payable each year on business rate growth each year. The future forecasts
assume that these measures continue and that Local Authorities are recompensed
accordingly as thhe current system.
2.7.5
Business rate information on reliefs and income received or expected is collected
on the National Non Domestic Rate (NNDR) returns submitted in January
(projection) and May (actual). The returns are reviewed as part of the annual audit
process.
2.7.6
The business rates baseline funding and tariff is included in the annual finance
settlement announcement and these increase by inflation each year. Table 4 below
provides a summary of the local share, tariff and baseline funding level for 2015/16
and projections to 2019/20.
Table 4 - Baseline Funding Level (Retained Business Rates)
2015/16
2016/17
2017/18
2018/19
2019/20
Finance
Settlement
Forecast
Forecast
Forecast
Forecast
£000
£000
£000
£000
£000
Business Rates
Retained (NNDC)
Less: Tariff
Baseline
Funding
Movement £000
Movement %
9,676
9,947
10,226
10,512
10,806
(6,749)
(6,938)
(7,132)
(7,332)
(7,537)
2,927
3,009
3,095
3,179
3,268
55
81
85
85
89
1.91%
2.8%
2.8%
2.8%
2.9%
2.7.7
As outlined at 2.6.3 the government funding measure of “Settlement Funding
Assessment” consist of RSG and baseline funding level (retained business rates).
Using the updated forecasts within tables 3 and 4, the SFA is forecast to reduce by
40% to just over £3.5million by 2019/20 compared to 2014/15.
2.7.8
The annual National Non-Domestic Rates Return (NNDR1 form) provides an
estimate of what the Council will collect in business rate income for the following
financial year. The variation between the estimate and the actual is then accounted
for through the surplus/deficit on the (business rates) collection fund in the
following year, in a similar way to the operation of the Council tax collection fund
account. The actual position will be influenced by fluctuations in business rate
income actually received in the year, for example as a result of appeals and
reductions in property rateable value, new business rate growth and changes in the
level of eligible reliefs. A forecast of the deficit on the 2014/15 business rates
collection fund was taken into account within the 2015/16 NNDR1 return and
determining the respective values of the shares of the business rates income for
the year and will also determine the payment of the levy due from the authority in
Financial Strategy 2016/17 to 2019/20
August 2015
55
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relation to increases in business rate income compared to the baseline. The actual
position at 31 March 2015 will inform the 2016/17 shares.
2.7.9
The following table provides the outturn figures for the Business rates retention
scheme for the first two years of operation
Table 5 - NNDC Business rates Retention
2014/15
2015/16
2013/14
Settlem
Varianc Settlem
Varianc Settlem
Varianc
Actual
Actual
Budget
ent
e
ent
e
ent
e
£000
£000
£000
£000
£000
£000
£000
£000
£000
Baseline/Retained (9,313) (9,329)
(15) (9,495) (9,778)
(283) (9,757) (9,220)
537
Tariff
6,496
6,496
0
6,622
6,622
0
6,805
6,749
(56)
Levy
0
435
435
0
332
332
0
578
578
S31 Grants
0
(792)
(792)
0 (1,249) (1,249)
0 (1,228) (1,228)
Net BR Retained
(2,818) (3,190)
(373) (2,872) (4,073) (1,200) (2,952) (3,121)
(169)
2.7.10
A Norfolk business rate pool was established in 2014/15 combining five districts
(including NNDC) and the County Council. Allocations of funding from the pool for
2014/15 have been determined by the authorities participating in the pool which
includes the allocation of funds totalling £1.1 million for schemes within the district.
2.7.11
The Government announced as part of the Autumn settlement there would be a
review of business rates which would inform the 2016 Budget. It is expected to be
fiscally neutral, however the impact on businesses and Local Authorities in terms of
the funding impact through the business rates retention scheme will not be known
until later in the year. The profile of the businesses in North Norfolk is
predominately small business and therefore any shift from small to larger
businesses could potentially have an impact.
2.8
New Homes Bonus
2.8.1
The New Homes Bonus (NHB) was introduced in 2011/12 to incentivise and
reward councils and communities for building new homes in their areas. Under the
current methodology the grant is payable for six years (paid under section 31 of the
Local Government Act 2003) and is calculated by multiplying the national average
council tax by the net additional homes growth plus an additional supplement of
£350 per affordable dwelling. The payment of NHB is split between local authority
tiers; 80% to the lower tier and 20% to the upper tier. The net additional growth
includes growth in housing unit numbers (after demolitions) and reduction in long
term empty properties. In the main, the bonus is funded from the same control total
as the revenue support grant and is paid as a non “ring fenced” grant to individual
councils.
2.8.2
Annual allocations of NHB Grant are made as part of the finance settlement
announcements and are based on the Council Tax Base returns that are submitted
annually to the Government (covering the twelve-month period October to
September). Once a new home is recorded on the Council Tax Base return as
being eligible for Council Tax (including those eligible for discounts), it counts
towards NHB. The calculation of the bonus does not take into account planning
permissions or any other elements of the planning processes. Statistics on the
gross affordable housing supply are used to calculate the affordable homes
enhancement.
2.8.3
Currently 75% of the annual NHB is included in the Council’s base budget funding
to support local service provision and in part the loss of core funding by the scaling
back of the revenue support grant. Not using all of the funding in the base budget
Financial Strategy 2016/17 to 2019/20
August 2015
56
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provides some mitigation should there be changes to the current methodology for
allocation including the split within two-tier authorities.
2.8.4
The funding received via the NHB is illustrated in table 6 below.
Table 6 - New Homes Bonus Allocations to date
2011/12
2011/12
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6*
Year 7*
Year 8*
Year 9*
£000
£000
£000
£000
£000
£000
£000
£000
£000
350
2012/13
350
350
350
350
350
262
262
262
262
262
2013/14
118
2014/15
350
612
730
2,100
262
1,572
94
94
94
94
94
562
562
562
562
562
3,382
417
407
407
407
407
2,047
1,278
1,684
1,674
1,324
1,063
588
969
* 2016/17 onwards allocations to be confirmed
2.8.5
The forecast for new property growth is based on the housing trajectory
information, however, this information includes elements that are not taken into
account in the Council Tax Base return and therefore sensitivity has been applied
to the trajectory for the financial forecasts. The forecast in housing growth is also
informed by recent figures from the Council Tax Base Return that show an
increase in properties (eligible for council tax purposes) in the year and a reduction
in empty properties. The projections from 2016/17 onwards assume a net growth of
280 band D properties, made up of 250 new property growth and 30 reduction in
long term empties.
2.8.6
Table 7 below provides a summary of the current forecasts of NHB for NNDC.
Table 7 - NNDC NHB Forecast
NNDC Forecast
Allocation
Used in base
Budget
NHB Earmarked
£000
£000
£000
2015/16
1,684
1,263
421
2016/17
2,008
1,506
502
2017/18
1,992
1,494
498
2018/19
2,065
1,549
516
2019/20
2,305
1,729
576
NHB Allocation Year
Note – this assumes calculation of the NHB stays the same as in previous years.
2.8.7
2.9
2.9.1
Nationally up to and including the 2015/16 Local Government Finance Settlement,
funding in the region of £3.4 billion has been allocated through the New Homes
Bonus scheme. To date, NNDC has received just over £4.6 million and therefore
this still represents a significant funding resource.
Local Council Tax Support (LCTS)
The LCTS scheme was implemented in April 2013 as a replacement to Council
Tax Benefit as part of a national funding reduction programme and to encourage
people to work. Previously the scheme was 100% funded through subsidy paid to
the Council from the Department for Work and Pensions (DWP). From April 2013
Financial Strategy 2016/17 to 2019/20
£000
572
2015/16
Total
Total
August 2015
57
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9,688
each billing authority was given the discretion to set their own scheme, although at
the outset the government did stipulate that the scheme would not change the
support for low income pensioners, i.e. they would receive the same level of
support as they did under the system of Council Tax Benefit.
2.9.2
Funding for LCTS is no longer received as a separate subsidy grant but is now
within the overall Local Government Funding system as non ring-fenced funding
within revenue support grant and baseline funding level.
2.9.3
The local scheme (for North Norfolk) has remained the same since the introduction
of LCTS in 2013/14. The local scheme means that those that were previously
entitled to 100% council tax benefit would be required to pay 8.5%.
2.9.4
The Council Tax Support Working Group met in June to consider the options for
the LCTS for 2016/17. The group recommended that the scheme remain for the
same for 2016/17 and, therefore, this forms a recommendation in the covering
report.
2.9.5
The funding for LCTS includes an element in relation to parishes. In year one of
the new scheme all parish and town councils were offered a grant as part of setting
their precept for the coming year to cover the cost of the new scheme that fell to
them2. In subsequent years parish and town councils (that accepted the grant in
2013/14) were offered a grant albeit at a reduced value in line with the Council’s
funding reductions. The current financial projections assume further reductions in
grants offered to the parish and town councils for the duration of the strategy, in
line with the forecast funding reductions. This report is recommending that this
same method is adopted for 2016/17, offering the (reduced) grant to those that
accepted the grant in 2015/16 which they could take into account in calculating
their Council Tax Requirement.
2
The impact that LCTS has on Council Tax is a reduced Council Tax Base, i.e. similar to the impact of Council Tax
Discounts, that is fewer band D equivalent properties. For the major preceptors (Districts, County and Police)
this reduces the call on the collection fund (i.e. income from Council Tax), for parishes there are fewer band d
equivalents to share the parish precept.
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August 2015
58
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3.
RESOURCES
3.1
The Council’s net current revenue budget for 2015/16 (excluding Parish and Town
Council Precepts) is £12.1 million and is summarised in table 8 below. Internal
resources are from Council Tax and other income, these two areas are discussed in
further detail below.
Table 8 - NNDC Budget - Funding Sources
2015/16 Budget
£000
Funding Source
Council Tax – District
5,307
Retained Business Rates
3,121
Revenue Support Grant
2,404
Council Tax Freeze (2014/15)
58
New Homes Bonus (net of earmarking)
1,263
Total
3.2
12,153
Council Tax
3.2.1
Since 2011/12 the Council has accepted the council tax freeze grant, thereby
maintaing the Band D District Council tax charge of £138.87. Council tax freeze
funding for 2015/16 is £57,912.
3.2.2
As part of the annual Local Government Finance Settlement, the government make
announcements on referendums relating to Council Tax increases (Principles).
These require that over a threshold an authority would be required to hold a
referendum in order to increase Council Tax. For 2015/16 the amount of council
tax increase deemed to be excessive was 1.99% or more. As a guide a 2%
increase in NNDC’s council tax would generate income of just over £100,000.
3.2.3
The Council tax base is an assessment of the number of dwellings expressed in
Band D equivalents; it allows for non-collection, discounts and new property growth
and for 2015/16 the approved Council tax base is 37,274. This influences the level
of council tax income. Table 10 below shows the current forecast of Council Tax
income for the period 2016/17 to 2019/20. This currently assumes a freeze in
council tax for the period but allows for an increase in the council tax base from
property growth in line with the forecast used for the New Homes Bonus
assumptions. Changes to Council Tax discounts for example second homes and
Council tax Support will influence the Council Tax Base and therefore the level of
income generated through Council Tax, no changes to discounts have been
assumed in the current forecast. The table separate council tax income and the
income from the collection fund.
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August 2015
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Table 9 - Council Tax Income
Council Tax Income
2014/15
Actual
2015/16
Actual
2016/17
Forecast
2017/18
Forecast
2018/19
Forecast
2019/20
Forecast
£000
£000
£000
£000
£000
£000
5,106
5,176
5,215
5,254
5,293
5,332
n/a
70
39
39
39
39
99
131
94
57
19
19
5,205
5,307
5,309
5,311
5,312
5,351
Increase/(Decrease) in
Yield
Collection Fund Yield
Total Income
Note the Coucnil Tax Income equates to the tax base multiplied by the Band D equivalent and
the Collection Fund Yield reflects the forecast of the surplus available for distribution.
3.2.4
3.3
Currently the County Council return half of the discretionary element of their share
of council tax income from second homes to the districts for community projects.
This is currently earmarked for community related expenditure, ie the Big Society
Grant scheme. The current charge for second homes is 95%; this is made up of a
mandatory 50% charge and a 45% discretionary element. The 2015/16 budget
includes £454,000 from the County. This arrangements is currentlly assumed for
threey years until 2017/18 when the arangement will be reviewed.
Fees, Charges and Other Income
3.3.1
The Council has a number of limited sources of income available, for example fees
and charges for services and income from investments.
3.3.2
Some of the charges for services are set by government, for example some licence
fees, others are set locally to break even over a three year period and others set to
fund the provision of wider Council services.
3.3.3
A number of the more significant income budgets are subject to factors which the
Council has limited control over, for example some demand led services including
car parking, planning and building control fees and waste and recycling credits
which are influenced by both the level of recycling achieved as a district and the
market for recycled materials. These areas are highlighted within the annual
budget setting report and the risk of not achieving the budgeted figures is reflected
in the assessment of the level of general reserve.
3.3.4
Investment income continues to be an important source of income to the Council.
This is generated from investment of the Council’s reserves and surplus funds. The
2015/16 budget is based on an available investment balance of £19.4 million and is
currently forecast to deliver £426,390 for 2015/16. This is forecast to be maintained
over the length of the strategy based on the current treasury management strategy.
Significant changes to the strategy moving forward for example that would see a
reduction in the available balance for investment would need to be considered as
part of any business cases.
Financial Strategy 2016/17 to 2019/20
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4.
FINANCIAL FORECAST UPDATE
4.1
The 2015/16 budget was approved in February 2015, at the same time that the forward
financial projections for the following three years to 2018/19 were also reported. The
projections were based on the then current expenditure and income plans and were
forecasting future funding gaps of £265k in 2016/17, increasing to £1 million in 2017/18
and £1.2 million in 2018/19, this was after allowing for projected savings from the
business transformation which had yet to be identified to specific projects. The updated
forecasts have been informed by revised income forecasts for a number of the more
significant income areas, RSG and business rates retention and where further savings
have been identified.
4.2
The Council continues to align its spending plans with the available resources at its
disposal. Significant savings and additional income have been realised over a number
of years and the continuation of these savings and income have been assumed within
the MTFS.
4.3
There continues to be a number of national changes for which timescales have
changed. The most significant is in relation to the impact of the Welfare Reform Act
2012 and the move to universal credits, with the administration of Housing Benefits no
longer being undertaken by Local Authorities but transferring to the Department for
Work and Pensions. The precise consequence in terms of staffing and financial impact
through potentially redundant computer systems is not yet known, nor are the
timescales for the further roll out. Therefore, this strategy assumes that the status quo
position will exist until there are firm proposals on which to base the detailed
calculations of the likely impact on the Council.
4.4
The detailed budget for 2016/17 will be produced later in the year and revised forecast
updated to reflect the outcomes of the Spending Review due to be announced later in
the year.
4.5
The financial forecasts have been updated for known service variances that have been
highlighted to date or where revised forecasts based on the 2014/15 outturn position
are necessary. The following commentary provides further information as applicable:
4.5.1
Car Parking Income – The 2015/16 income budget reflected the removal of the
evening charges in 2015. The latest budget monitoring position has highlighted that
the current level of income from pay and display is currently exceeding the profiled
budget. No revisions have been made to the budget and forecasts at this time due
to the demand led and seasonal nature of the budget, although further work will be
carried out to inform the 2016/17 budget.
4.5.2
Land Charges – The original forecast assumed a reduction in income from the land
charges service part way through 2015/16 due to the transfer of the function to the
land registry. The timescales for this have now slipped to 2017 and therefore the
projections have been updated to reflect the revised profile. This has impacted on
the current year and 2016/17 only.
4.5.3
Income – The forecasts assume additional income of £60,000 per annum from
2016/17 for the co-location of the DWP within Cromer and Fakenham offices which
is due to commence later in 2015/16.
4.5.4
Employee Budgets – A number of posts within the establishment have been or
have become vacant in the year. Where applicable, some have been replaced or
opportunities taken to replace in a different way. There are still a number of vacant
posts and these will be reviewed alongside the areas of focus within the financial
strategy as detailed at section 7. The forecasts assume an annual pay award of
1% for the period of the strategy. Following the announcement by the Chancellor of
the introduction of a National Living Wage by 2020/21 the forecasts have been
updated to reflect the impact to direct employee budgets over the period covered
Financial Strategy 2016/17 to 2019/20
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by the financial strategy. The impact on contractors has not yet been quantified
and has therefore not been included at this time.
4.5.5
Business Rates – The forecasts have been informed by the outturn position on the
2014/15 NNDR and updated in respect of appeals, growth and the collection fund
deficit. Although the forecast currently mitigate significant fluctuations in the
Business rates income from use of the reserve.
4.5.6
Council Tax/New Homes Bonus – The forecasts take account of a revised
projection of tax base growth which have an impact on the council tax income
forecasts along with the forecast of NHB.
4.6
Table 10 provides a summary of the revised position taking into account all the factors
identified above, these are based on the current service delivery.
Table 10 - Updated Financial Forecast
Forecast Gap February 2015 (Excl BT
Savings)
2017/18
2018/19
2019/20
£000
£000
£000
£000
409
1,314
1,620
1,971
(154)
(121)
(113)
(105)
Revised Funding Forecasts Adjustments
(91)
(108)
(151)
(183)
Revised Forecast Budget Gap
164
1,085
1,356
1,683
Service Pressures/(Savings)
4.7
2016/17
The revised financial projections are now forecasting a budget gap of just over £1.6
million by 2019/20. Whilst there is anticipated to be a small deficit for 2016/17, this can
be funded from the one-off use of reserves, although, as further detailed work on the
budget for 2016/17 is completed over the coming months it is anticipated that this work
will identify further savings/additional income in the interim.
Financial Strategy 2016/17 to 2019/20
August 2015
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5.
RESERVES
5.1
As part of the annual budget and council tax setting process the Chief Financial Officer
must report on the adequacy of the reserves that the Authority holds. This is informed
by the Policy Framework for Reserves which is reviewed and updated alongside
approving the budget each year3.
5.2
The Council holds a number of ‘useable’ reserves both for revenue and capital
purposes which fall within one of the following categories, each are discussed in the
following sections:
5.3
5.4

General Reserve

Earmarked Reserves

Capital Receipts Reserve
The General Reserve is held for two main purposes:

to provide a working balance to help cushion the impact of uneven cashflows
and avoid temporary borrowing

a contingency to help cushion the impact of unexpected events or emergencies
As part of setting the budget each year the adequacy of all reserves is assessed along
with the optimum level of general reserve that an authority should hold. The optimum
level of the general reserve takes into account a risk assessment of the budget and the
context within which it has been prepared including the following factors:









sensitivity to pay and price inflation;
sensitivity to fluctuations in interest rates;
the level of savings that have been factored into the budget and the risk they will
not be delivered as anticipated, both level and timing;
potential legal claims where earmarked funds have not been allocated;
emergencies and other unknowns;
impact of demand led pressures which impact on both income and expenditure;
future funding fluctuations;
level of earmarked reserves held;
a level of reserve that is within 5% to 10% of net expenditure.
5.5
A financial assessment will be made of all the factors to arrive at a recommended level
for the general reserve. The current recommended balance is £1.75million.
5.6
The general reserve balance at 1 April 2015 was £2.29 million, after allowing for
planned movements, the balance by 31 March 2016 is forecast to be £2.082 million.
5.7
Earmarked Reserves provide a means of building up funds to meet known or
predicted liabilities and are typically used to set aside sums for major schemes, such
as capital developments or asset purchases, or to fund restructurings. Whilst
earmarked in nature until the amounts are budgeted to be taken from the reserves,
commitments have not yet been made from these reserves. Earmarked reserves can
also be held for service projects and business units which have been established from
surpluses to cover potential losses in future years, or to finance capital expenditure.
Earmarked reserves also provide a mechanism to carry forward underspends at the
year-end for use in the following financial year where no budget exists.
5.8
For each earmarked reserve a number of principles should be established:
3

the reasons for or the purpose of the reserve

how and when the reserve can be used – short to long term
Full Council Agenda February 2015, Agenda Item No. # Appendix #
Financial Strategy 2016/17 to 2019/20
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63
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
procedures for the reserve’s management and control.
5.9
The establishment and use of earmarked reserves is reviewed at the time of budget
setting, throughout the year as part of the budget monitoring processes and also as
part of the year-end reporting. Review of earmarked reserves throughout the year
takes into account the continuing relevance and adequacy of the reserve and also the
level of the general reserve.
5.10
An updated reserves statement is included at Appendix A. This reflects the latest
position for the use of all reserves in the current and future financial years where
known. There is still some uncertainty around the exact timing of the use of a number
of the reserves, for which some are held as a contingency to mitigate a potential
liability although the timing and likelihood of this is depended upon future events.
5.11
The following provides a commentary on some of the more significant reserves that the
Council currently holds and maintains:

Capital Projects Reserve – The majority of this reserve represents VAT shelter receipts
that are received as revenue receipts but earmarked to fund capital schemes.

Benefits - The Benefits reserve is held to mitigate any claw back by the Department for
Work and Pension following audited subsidy claim forms. The amount of subsidy paid
out annually by the Council is in the region of £30 million and therefore even a small
error rate on a claim could have significant financial implications. The audit of the
2014/15 subsidy is yet to be finalised and should there be any recovery of subsidy
payable the reserve will mitigate the impact. The reserve also holds any previous years
underspends in respect of the service where it was approved to carry them forward.

Big Society Fund - This reserve was established as part of the councils approach to
Localism and holds the balance from the County Council’s share of second homes
council tax that is returned to the districts. This is currently being used to fund the Big
Society grants and enabling fund. Contributions to and from this reserve are
dependent upon the sharing arrangement with the County Council and are determined
annually as part of setting the budget.

New Homes Bonus - The New Homes Bonus (NHB) was introduced in 2011/12 as an
incentive and reward mechanism to promote housing growth. From 2014/15 an
element4 of the NHB has been included in the base budget with the balance being
transferred to the earmarked reserve to be used for one-off costs that promote or
facilitate future growth.

Restructuring/Invest to Save – This reserve is held to fund one-off/upfront costs for
projects that will deliver on-going savings. Examples include, officer restructurings
where one-off redundancy or pension strain costs might be payable but the business
case delivers an on-going revenue saving within two to five years, or for investment in
IT hardware, software or equipment or one-off costs which will deliver savings through
more efficient ways of working for example the programme of digital transformation
projects.

Broadband – This reserve represents the £1million that has been approved to be
reallocated from the Big Society Fund and NHB reserves for a contribution towards
matched funding for the Norfolk’s Better Broadband for Norfolk project. The release of
these funds will be subject to a recommendation to Council as per the original report
that was made to Members in July 2014.
5.12
All reserves general and earmarked will be reviewed over the coming months as part
of setting the detailed budgets for 2015/16, with a view that where commitments have
not been identified and funds or reserve balances are no longer required these are reallocated to specific reserves to address the other requirements as applicable
4
80% in 2014/15, 75% from 2015/16 onwards.
Financial Strategy 2016/17 to 2019/20
August 2015
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5.13
The Council also holds a Capital Receipts Reserve, this includes the balance of
receipts generated from asset disposals. Capital receipts are generated when an asset
is disposed of and can only be used to fund expenditure of a capital nature, i.e. not for
on-going revenue expenditure. The balance of capital receipts is used to fund the
current approved capital programme. The balance of capital receipts at 31 March 2015
was just over £6 million.
5.14
Details of the current capital programme that are being financed from capital receipts is
included in section 6 and which highlights the reducing available balance within this
reserve over the next three years.
5.15
The MTFS does not currently rely on the use of reserves over the medium term. The
use of reserves provides only a short-term measure to reduce the funding gap and
whilst it can be used to mitigate the impact in the short-term, to allow time for the
implementation of financial strategy options or in response to in-year changes does not
provide a sustainable solution in the medium to long term.
Financial Strategy 2016/17 to 2019/20
August 2015
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6.
CAPITAL
6.1
The Capital programme is updated regularly throughout the year as part of the budget
monitoring reports. A copy of the current capital programme is included as an
appendix to the 2015/16 period 4 budget monitoring report within the September
Cabinet Agenda and therefore has not been reproduced within this document.
6.2
The following tables provide a summary of the current approved capital programme for
2015/16 plus the current forecasts for 2016/17 and 2017/18, along with a breakdown
on relevant financing.
Table 11 Current Approved Capital Programme
2015/16
Updated
Budget
£'000
2016/17
Forecast
£'000
2017/18
Forecast
£'000
Jobs and the Local Economy
Housing and Infrastructure
Coast, Countryside and Built
Heritage
Localism
Delivering the Vision
Total Capital Expenditure
Financing:
Non NNDC
NNDC
315
4,695
0
499
0
1,054
9,568
656
1,025
16,259
2,151
30
10
2,690
0
0
15
1,137
9,214
7,045
2,310
380
0
1,137
Total Capital Financing
16,259
2,690
1,137
Table 12 Capital Programme
Financing
2015/16
Updated
Budget
£'000
Environment Agency Grant
DEFRA Grant
Disabled Facilities Grant
MMO and Euro Fisheries Grant
Other Grants and Contributions
Capital Projects Reserve *
Other Reserves *
Capital Receipts *
Internal Borrowing *
Total Financing (*NNDC
Resources)
6.3
2016/17
Forecast
£'000
2017/18
Forecast
£'000
7,542
509
595
250
318
1,039
75
5,007
924
1,844
0
466
0
0
0
0
380
0
0
0
0
0
0
0
0
1,137
0
16,259
2,690
1,137
The current capital programme is funded from the following sources of finance:
Financial Strategy 2016/17 to 2019/20
August 2015
66
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




Capital Receipts – generated from asset disposals and preserved right to buys (both
new and existing within the capital receipts reserve)
Grants and contribution received from external sources including third parties and
government
Revenue – by means of making a revenue contribution to capital
VAT Shelter Receipts (received as a revenue receipt and transferred to the capital
projects reserve) – this arrangement is to be reviewed in 2015/16 when the value of
works as detailed within the original stock transfer agreement has been reached
Earmarked reserves, for example the capital projects reserve, or invest to save
reserve.
6.4
Another source of funding for capital expenditure is prudential borrowing. Prudential
borrowing to fund capital expenditure can only be undertaken when an authority can
demonstrate a need to borrow. The need to undertake prudential borrowing is
demonstrated through the Capital Financing Requirement which is driven by the
balance sheet of the authority and takes into account reserves (including general and
earmarked). Financing costs of the borrowing would be a charge to the revenue
account and therefore any decision to undertake external borrowing would need to
take account of the debt costs including interest and the Minimum Revenue Provision
(MRP). As internal capital resources are utilized the Council will need to consider
looking at alternative capital financing options including borrowing. These will need to
be considered as part of the overall business case as proposals for capital expenditure
are considered for approval.
6.5
After taking into account the planned spend within the current capital programme for
the period 2015/16 to 2017/18 and the anticipated resources, i.e. new capital
resources for the same period, there is currently an unallocated balance of just over
£2.4 million, inclusive of £1.802million within the capital projects reserve which can be
used as a capital or revenue resource. This is illustrated within the following table.
Table 13 Capital Resources
Capital
Receipts
£'000
Balance at 31/3/15
Estimated (New) Receipts 2015/16
Capital Financing 2015/16
New Receipts 2016/17
Capital Financing 2016/17
New Receipts 2017/18
Capital Financing 2017/18
2,676
165
(1,039)
0
0
0
0
8,770
780
(6,046)
0
(380)
0
(1,137)
1,005
1,802
1,987
August 2015
67
Total
£'000
6,094
615
(5,007)
410
(380)
410
(1,137)
Estimated Balance at 31/3/18
Financial Strategy 2016/17 to 2019/20
Capital
Projects
Reserve
£'000
Page 19 of 27
7.
FINANCIAL STRATEGY AND KEY THEMES
7.1
The preceding sections have set out the revised financial forecast for the period
2016/17 to 2019/20. A balanced position is currently forecast for the short term, i.e. for
2016/17, however there are still funding shortfalls projected for the medium to longer
term. Some of this can be mitigated by the one-off use of prior year surpluses,
however a medium term strategy to deliver a sustainable financial position moving
forward is required.
7.2
The Council’s strategy therefore is to maximise income through growth in homes and
businesses, taking advantage of new funding streams including those that offer
financial incentives which at the same time deliver further efficiencies, by transforming
the way in which we currently schedule our business and provide services, taking
advantage of technological changes.
7.3
The following outlines in more detail the key themes of the financial strategy to work
towards reducing the forecast budget gap along with indicative financial targets for
each of the priorities as applicable:
7.3.1
Growth - New Homes and Business Rates – Under the current allocation method
of New Homes Bonus (NHB) there is a direct financial benefit to the Council from
growth in homes through the NHB funding and through increasing the Council Tax
Base and additional income generated from Council Tax. Whilst new housing
growth will have an impact on the demand for local services, there will still be a net
gain in terms of overall income delivery. For similar reasons growing the business
rates base will have a direct impact on the level of business rates income retained
locally. Equally, maintaining existing business rates remains a priority in that
decline in business rates will reduce the amount of income retained locally.
Pending further review of the NHB and business rates, no target has been
allocated against this priority at this time, this will be reviewed following the
spending review announcement later in the year.
7.3.2
Digital Transformation – Building upon the Business transformation project that
commenced in 2014 savings have started to be identified from changes to service
delivery from the implementation of new technology. The overall programme will be
delivered over a number of years and the timing of the savings will then be
realised. A savings target of £375,000 was included in the original business case
for the project, whilst some efficiencies have started to be delivered the full saving
are not anticipated until 2018/19.
7.3.3
Property Investment and Asset Commercialisation – Opportunities for investment
in properties whether direct or indirect can be considered to achieve either an
income stream or improved returns on investment. Any direct investment would be
subject to a robust business case and the full implications in terms of borrowing
costs if required would need to be taken into account. Indirect property investments
can also be considered, for example as part of the Treasury Management Strategy,
i.e. similar to the current £5 million pooled property investment. Again, detailed
consideration of this will need to take account of whether the investment is a
revenue/treasury management transaction or a capital investment. The Council
currently holds assets with a balance sheet value of around £48 million. The assets
are held for different purposes, for example service delivery, investment properties
and community assets. Again opportunities for the most efficient utilisation of the
Council’s assets and maximising the return that the Council receives from the
assets needs to be taken into account.
7.3.4
Shared Services/Selling Services – Creating efficiencies through shared services
continues to be a priority for central government. Identifying such opportunities
must therefore continue at a local level, ensuring that realistic and deliverable
benefits can be achieved.
Financial Strategy 2016/17 to 2019/20
August 2015
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7.3.5
Collaboration and Localism – Identifying opportunities to work alongside other
public sector partners and organisations to deliver services.
7.3.6
Maximising Income and Reducing Costs – Maximising service and other income
through collection and also critically reviewing the cost bases.
7.3.7
Other Efficiencies and Savings - Through the regular budget monitoring process
and annual budget process service efficiencies and savings will be considered
where there is little or no impact on service delivery. However with the robust
challenge and consideration of savings proposals that has already taken place
each year, this does reduce the scope within existing budgets to identify further
savings and additional income opportunities.
7.3.8
The following table provides a summary of the indicative financial targets for the
above themes where agreed plans and projects have either commenced or are
planned. As the projects for the above are progressed the associated
savings/additional income will be quantified and factored into the budget and future
financial projections.
Table 14 - Financial Targets - Themes
2016/17
£000
2017/18
£000
2018/19
£000
2019/20
£000
Financial Strategy Theme:
Growth - Homes and Business Rates
0
0
0
0
145
270
375
375
Property Investment and Asset
Commercialisation
70
120
140
140
Shared Services/Selling Services
20
20
20
20
Collaboration and Localism
20
20
20
20
Maximising Income and Reducing Costs
120
150
150
150
Total
375
580
705
705
Digital Transformation
7.4
Use of Reserves – Invest to Save
7.4.1
Use of reserves to balance a budget provides only a short term solution as the
funds can only be used once. They can however be used to smooth the impact of
funding gaps over the short to medium term and to allow for planning and
implementing projects and work streams that will deliver a longer term financial
benefit through reduced costs or additional income.
7.4.2
Similarly, reserves can be used to fund one-off costs for projects that will deliver a
longer-term benefit. For example the use of the restructuring and invest to save
reserve to fund one-off officer restructure costs, where a restructuring will deliver a
longer term saving for a service and the use of this reserve for some of the
implementation and project costs for the business transformation programme that
will deliver future savings.
7.4.3
The use of the reserves in this way will be considered as part of the full business
case for individual project proposals, taking into account the payback period of the
project along with indirect financial implications, for example, reduced balance
available for investment and the associated loss of investment income.
7.5
Updated Financial Forecast
Financial Strategy 2016/17 to 2019/20
August 2015
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7.5.1
The following table summarises the updated financial position allowing for the
indicative financial targets identified at table 14 and referred to in section 7.3.
Table 15 - Updated Budget Gap
2016/17
£000
Table 10 - Gap
2017/18
£000
2018/19
£000
2019/20
£000
164
1,085
1,356
1,683
Financial Targets (Table 14)
(375)
(580)
(705)
(705)
Revised Budget Gap/(Surplus)
(211)
505
651
978
7.5.2
Based on the latest financial projections and assuming delivery of the financial
targets against each of the themes, there is an anticipated to be a surplus in
2016/17 with a budget gap of just over half a million in 2017/18, increasing to just
under £1 million by 2019/20. This is before any use of reserves in the short term to
allow for the implementation of other work streams as identified above. This
assumes delivery of the financial savings and additional income at the levels
included in the indicative targets and the continued achievement of current income
and growth forecasts along with the government funding forecasts. Once further
detail on the spending review and financial settlement for 2016/17 are announced
the forecast will be updated as applicable.
7.5.3
The Council remains in a strong financial position should there be delay in the
timing of the delivery of the savings and also the levels assumed. As referred to
earlier once the projects start to progress the savings will be quantified and
included in the annual budgets.
Financial Strategy 2016/17 to 2019/20
August 2015
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8
SENSITIVITY ANALYSIS AND RISKS
8.1 The Council works within the constraints of central government funding allocations and
its control over council tax increases through the capping and referendum principles. The
continuing downward pressure on external resources will, over time, constrain the level of
service delivery that the Council is able to provide.
8.2 The legal requirement to set an annual budget that balances, ensures care is taken in
preparing figures and proposing changes to service levels which may require upfront
investment.
8.3 The forecast projections as detailed earlier in the document are dependent upon a
number of key assumptions which are not directly within the control of the Council, the
most significant of these are detailed below along with the sensitivities to the financial
projections, a summary table is also shown below.
8.4 Employee Inflation – As mentioned above the forecasts assume an annual pay award
of 1%, the Council is part of a national pay agreement and as a guide for NNDC, 1%
equates to approximately £90,000 annually. Therefore should the annual pay award
agreement be different to the 1% assumed say for example by 0.5%, this would equate
to an additional cost of £45,000 per annum.
8.5 Business Rates Growth – Within the Local Government Finance Settlement the
Business Rates Baseline funding is assumed to increase annually in line with inflation.
Actual increases (or reductions) will result in an additional or reduced level of income
retained locally. Some allowance for growth after allowing for appeals has been factored
into the projections, as a guide a 1% movement each year would result in approximately
£50,000 additional per annum being retained locally above the level included in the
forecasts.
8.6 New Homes Growth/Increase in Tax Base – Fluctuations of the growth in New Homes
and the properties becoming eligible for Council Tax have a direct impact on the Council
Tax Income and New Homes Bonus forecasts. An increase in 50 properties (band D
equivalent) would generate an additional £7,000 per annum in Council Tax income and
£52,000 from New Homes Bonus based on the current method of calculation and
allocation, the impact to the revenue account would be £39,000 based on the current
treatment of allocating 25% to the earmarked reserve.
8.7 Revenue Support Grant – The current forecast assume a reduction in RSG per annum
of 35%. As a guide a further reduction of 10% each year would add to the funding gap
each year £237,000 to the funding gap in 2016/17.
Table 16 - Sensitivity Analysis - Cumulative Effect
2016/17
Sensitivity
£000
Employee Inflation - Additional 0.5%
45
annually
Business Rates Growth- Movement of 1%
50
growth projection +/Housing Growth - NHB impact 50
39
properties (Annually) +/Housing Growth 50 properties (Band D
7
equivalent)- Council Tax Income Impact +/Revenue Support Grant - Additional 5%
120
Reduction
Financial Strategy 2016/17 to 2019/20
August 2015
71
2017/18
£000
2018/19
£000
2019/20
£000
90
135
180
100
150
200
78
117
156
14
21
28
150
140
118
Page 23 of 27
8.8 The extent to which the above factors will have an impact on the overall projections and
forecast funding gap will vary. Some will have an ongoing impact, for example an
increase to the tax base in 2016/17 will have an ongoing benefit in terms of additional
Council tax generated year on year, converse to this an increase in the employee
inflation in one year will increase the base budget moving forward cumulatively.
8.9 Fluctuations in the demand for services, say for example a fall in car parking income due
to inclement weather over a holiday period would be relatively short term, assuming no
changes to other factors, for example the closure of a pay and display car park. For the
short-term fluctuations these are mitigated through allowing elements within the general
reserve. Full details on the level of reserves were included within the outturn report for
2014/15 that was presented to Members in June.
8.10 The Council continues to face a number of risks in terms of future funding and delivery of
services. A number of these risks have been referred to within the main body of the
Financial Strategy. The detail of the 2016/17 budget will be completed over the coming
months in preparation of the Budget and Council Tax setting report which will be
presented for approval in February 2016. The work on the detailed budgets will be based
on the latest local and national information and will be informed by the provisional and
later final budget settlement announcements.
8.11 The main risks that the authority continue to face are outlined below:
8.11.1 Future Funding and Business Rates – Local Authority funding from central
government continues to be under pressure with a greater shift from the RSG to
retained business rates. The emphasis on retaining funds from business rates locally
provides further risks to Local Authorities in that there are a number of inherent risks
which will continue to be borne locally including, the status of properties changing for
example schools changing to academies and also business premises becoming
empty. In addition, the impact of business rates appeals will also have an effect on the
level of retained business rates and whilst the scheme does provide incentive for
promoting and delivering growth in local economies, the impact of appeals and
business decline can have a negative impact.
8.11.2 The impact of appeals will have an impact in year from reimbursement of refunds and
also the future income received. Recently there has been a tribunal decision which
means that purpose built medical centres and GP surgeries have a lower basis of
valuation for business rates. Some of these will date back to 2005 for which refunds
could be payable. The full impact will be dependent upon the outcome of the appeal by
the Valuation Office Agency (VOA). The financial impact to the Council will be
mitigated through the use of the provision and also the earmarked reserve.
8.11.3 Further measures for example extension of reliefs announced within the Autumn
Statement, continue to present a risk to Local Authorities, albeit some of this risk is
mitigated by the section 31 grant. Growth and/or decline in businesses will continue to
have a direct impact on the funding at a local level. Some of this risk is mitigated by the
earmarked reserve which is maintained to reduce the impact of appeals and to smooth
the fluctuations in income being retained year-on-year. In addition the review of the
Business Rates system will be used to inform the budget for 2016, the impact of this
will need to be considered once further detail is announced.
8.11.4 Savings – The Council is continuing to deliver a programme of savings and additional
income. Delivery of the savings at the levels budgeted is vital to delivery of the overall
budget and achieving a sustainable future financial position. The delivery of these
savings is closely monitored by CLT and Cabinet as part of the ongoing budget
monitoring process.
8.11.5 Income - Income from a number of demand led services remains a financial risk that
cannot be fully influenced by the Council. Whilst annual estimates are pulled together
under a robust methodology taking into account current performance, previous actuals
Financial Strategy 2016/17 to 2019/20
August 2015
72
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and knowledge of the service delivery, income levels need to be closely monitored, for
example for planning and car park income. Fluctuations in income can be mitigated by
the use of reserves and this is a factor that is taken into account as part of the budget
setting process when determining the recommended level of general reserve.
8.11.6 Investment Returns - Over the past few years investment income has been
significantly reduced in the light of the prolonged duration of low interest rates. The
current investment strategy is looking for a return of 2.2% for 2015/16. In accordance
with the Treasury Strategy 2015/16 as reported to Cabinet in February 2015, the
Council will seek to invest more of its portfolio in secured investments such as the
£4.5m in covered bonds purchased in October 2014.
8.11.7 New Homes Bonus – The current budget and projections include 75% of the NHB
allocation with 25% being allocated to an earmarked reserve. There are risks
associated with this funding source at a local and national level. Risks at a local level
are the continued delivery of housing growth and also reductions in the number of long
term empty properties. The growth in new homes can be informed by the housing
trajectory figures, however the fluctuations in the number of long term empty properties
can negatively (should the number increase) impact on the allocation of NHB. This
area therefore that continues to be monitored closely with proactive work with
homeowners and landlords to bring the properties back into use. The national risk
around the future of the NHB is more significant should there be a change in the
allocation method, removal of the scheme or change to the 80/20 District/County
current split.
8.11.8 Second Homes – The return of an element of the second homes council tax from the
County to the districts is subject to annual approval by the County. This is returned to
the districts for community related expenditure and has been used to fund the
Council’s Big Society Fund (BSF) Grant scheme and related expenditure. The use of
these funds will be part of the annual budget setting process and will be informed by
any proposal by the County for changes to the distribution to districts. As part of the
2015/16 budget the County reduced the funding returned to the district by 50%, this is
due to be reviewed further in 2017/18 by the County Council.
8.11.9 Service Delivery Changes – The Financial Strategy reflects known service delivery
changes including the centralisation of the Land Charges service from 2017 to the
Land Registry. Further service delivery changes for example the roll out of universal
credits is currently underway and should there be further changes the implications will
need to be taken account of in future budget updates.
8.11.10
Local Plan Review - Local Planning Authorities are required to prepare and
maintain up to date Development Plans. These comply with national guidance and
provide for all objectively assessed needs and demands for development consistent
with the principles of sustainable development. The North Norfolk Core Strategy was
adopted in 2008 and covers the period to 2021. The Site Allocations Development
Plan was adopted in 2011 and allocates land for around 3,500 dwellings. Whilst the
Council is well placed to deliver the planned growth over the short term some
consideration needs to be given to the possible timetable for a Plan review.
Preparation for a plan review is resource intensive from both officer time and external
support. Funding for a plan review has been earmarked from the unallocated NHB
reserve and work will commence over 2015/16 to 2017/18.
8.11.11
Comprehensive Spending Review 2015 – The Spending Review 2015
announcements will be made on 25 November and will inform the budget from 2016/17
onwards.
Financial Strategy 2016/17 to 2019/20
August 2015
73
Page 25 of 27
Glossary of Acronyms – Financial Strategy
DWP
Department for Work and Pensions
LCTS
Local Council Tax Support
LTE
Long Term Empty
MRP
Minimum Revenue Provision
NHB
New Homes Bonus
RSG
Revenue Support Grant
SFA
Settlement Funding Assessment
SFIS
Single Fraud Investigation Service
Financial Strategy 2016/17 to 2019/20
August 2015
74
Page 26 of 27
Reserves Statement 2015/16 Onwards
Reserve
General Fund General Reserve
Purpose and Use of Reserve
A working balance and contingency, current recommended
balance is £1.75 million.
Balance at
01/04/15
2015/16
Updated
Movement
Balance
01/04/16
2016/17
Budgeted
Movement
Balance
01/04/17
Budgeted
Movement
2017/18
Balance
01/04/18
Budgeted
Movement
2018/19
Balance
01/04/19
Budgeted
Movement
2019/20
Balance
01/04/20
£
£
£
£
£
£
£
£
£
£
£
2,289,024
(206,959)
2,082,065
0
2,082,065
0
2,082,065
0
2,082,065
0
2,082,065
Earmarked Reserves:
Capital Projects
To provide funding for capital developments and purchase of
major assets. This includes the VAT Shelter Receipt.
2,676,360
(873,744)
1,802,616
0
1,802,616
0
1,802,616
0
1,802,616
0
1,802,616
Asset Management
To support improvements to our existing assets as identified
through the Asset Management Plan.
59,899
(26,751)
33,148
0
33,148
0
33,148
0
33,148
0
33,148
Benefits
To mitigate any claw back by the Department of Works and
Pensions following final subsidy determination. Timing of the
use will depend on audited subsidy claims.
721,792
(50,000)
671,792
0
671,792
0
671,792
0
671,792
0
671,792
Big Society Fund
(BSF)
To support projects that communities identify where they will
make a difference to the economic and social wellbeing of the
area. Funded by a proportion of NCC element of second
homes council tax.
786,588
(338,357)
448,231
0
448,231
0
448,231
0
448,231
0
448,231
Broadband
Earmarks £1million for superfast broad band in North Norfolk.
(600k was transferred from the BSF reserve and £400k from
NHB reserve)
1,000,000
0
1,000,000
0
1,000,000
0
1,000,000
0
1,000,000
0
1,000,000
Building Control
Building Control surplus
120,235
0
120,235
0
120,235
0
120,235
0
120,235
0
120,235
Business Rates
To be used for the support of local businesses and to mitigate
impact of final claims and appeals in relation to business rates
retention scheme.
1,579,136
(535,855)
1,043,281
(250,000)
793,281
0
793,281
0
793,281
0
793,281
Coast Protection
To support the ongoing coast protection maintenance
programme ands carry forward funding between financial
years.
237,295
(237,295)
0
0
0
0
0
0
0
0
0
Common Training
To deliver the corporate training programme. Training and
development programmes are sometimes not completed in the
year but are committed and therefore funding is carried forward
in an earmarked reserve.
27,450
0
27,450
0
27,450
0
27,450
0
27,450
0
27,450
Economic
Development and
Regeneration
Earmarked from previous underspends within Economic
Development and Regeneration Budgets along with funding
earmarked for Learning for Everyone.
117,783
(66,698)
51,085
0
51,085
0
51,085
0
51,085
0
51,085
Election Reserve
Established to meet costs associated with district council
elections, to smooth the impact between financial years.
90,000
(90,000)
0
30,000
30,000
30,000
60,000
30,000
90,000
30,000
120,000
M:\Accountancy\Shared Information\Financial Plan\2016-17\Reserves
Statement 2015-16 MTFS v2 Apx A
75
Reserves Statement 2015/16 Onwards
Reserve
Purpose and Use of Reserve
Enforcement Works
Established to meet costs associated with district council
enforcement works including buildings at risk .
Environmental
Health
Balance at
01/04/15
2015/16
Updated
Movement
Balance
01/04/16
2016/17
Budgeted
Movement
Balance
01/04/17
Budgeted
Movement
2017/18
Balance
01/04/18
Budgeted
Movement
2018/19
Balance
01/04/19
Budgeted
Movement
2019/20
Balance
01/04/20
£
£
£
£
£
£
£
£
£
£
£
146,857
(36,516)
110,341
0
110,341
0
110,341
0
110,341
0
110,341
Earmarking of previous underspends and additional income to
meet Environmental Health initiatives.
41,287
(19,720)
21,567
0
21,567
0
21,567
0
21,567
0
21,567
Grants
Revenue Grants received and due to timing issues not used in
the year.
327,741
(219,405)
108,336
(6,500)
101,836
0
101,836
0
101,836
0
101,836
Housing
Previously earmarked for stock condition survey and housing
needs assessment.
101,920
(16,920)
85,000
0
85,000
0
85,000
0
85,000
0
85,000
Treasury (Property)
Reserve
Property Investment (Treasury), to smooth the impact on the
revenue account of interest fluctuations.
66,068
0
66,068
0
66,068
0
66,068
0
66,068
0
66,068
Land Charges
To mitigate the impact of potential income reductions.
89,155
0
89,155
0
89,155
0
89,155
0
89,155
0
89,155
Legal
One off funding for Compulsory Purchase Order (CPO) work
and East Law Surplus.
73,595
(30,000)
43,595
0
43,595
0
43,595
0
43,595
0
43,595
Local Strategic
Partnership
Earmarked underspends on the LSP for outstanding
commitments and liabilities.
51,728
0
51,728
0
51,728
0
51,728
0
51,728
0
51,728
LSVT Reserve
To meet the cost of successful warranty claims not covered by
bonds and insurance following the housing stock transfer.
435,000
0
435,000
0
435,000
0
435,000
0
435,000
0
435,000
New Homes Bonus
(NHB)
Established for supporting communities with future growth and
development and Plan review, the future allocations to the
reserve are dependant upon receipt of the NHB.
1,116,194
314,432
1,430,626
345,113
1,775,739
286,613
2,062,352
446,384
2,508,736
0
2,508,736
Organisational
Development
To provide funding for organisation development to create
capacity within the organisation and address anomalies within
the pay structure.
116,391
(76,963)
39,428
0
39,428
0
39,428
0
39,428
0
39,428
Pathfinder
To help Coastal Communities adapt to coastal changes.
206,378
(52,237)
154,141
(18,126)
136,015
(44,108)
91,907
(44,108)
47,799
(44,108)
3,691
Planning
Additional Planning income earmarked for Planning initiatives
including Plan Review.
375,183
(112,590)
262,593
(84,263)
178,330
0
178,330
0
178,330
0
178,330
Restructuring &
Invest to Save
Proposals
To fund one-off redundancy and pension strain costs and
invest to save initiatives. Transfers from this reserve will be
allocated against business cases as they are approved.
Timing of the use of this reserve will depend on when business
cases are approved.
1,246,890
(55,367)
1,191,523
0
1,191,523
0
1,191,523
0
1,191,523
0
1,191,523
26,316
0
26,316
0
26,316
0
26,316
0
26,316
0
26,316
16,224 11,411,544
272,505
11,684,049
432,276
12,116,325
(14,108)
12,102,217
Sports Hall
To support renewals for sports hall equipment. Amount
Equipment & Sports transferred in the year represents over or under achievement
of income target.
Facilities
Total Reserves
14,126,265 (2,730,945) 11,395,320
M:\Accountancy\Shared Information\Financial Plan\2016-17\Reserves
Statement 2015-16 MTFS v2 Apx A
76
Agenda Item 13
North Norfolk District Council
Mobile Park Homes Fees Policy
Contents
Page
Summary
1
1
Introduction
2
2
3
3
Fees for New Licence, Transfer/Variation and
Annual Fees
2.1 Overview
2.2 Exemptions from paying fees
2.3 Fees for New Licences, Transfer/ Variation
and Annual Fees
2.4 Review of Annual License Fees
2.5 Time when fees are payable
Enforcement Costs
4
Fees for Depositing Site Rules
Appendix 1 – Calculation of Fees
77
4
6
Summary
The Mobile Homes Act 2013 (MHA 2013) was introduced with the aim of providing
increased protection to occupiers of residential caravans and mobile homes. This
legislation amends the Caravan Sites and Control of Development Act 1960 (CSCDA
1960) and introduces important changes to mobile home site licensing. Enacted on 1
April 2014, these changes allow Local Authorities (LA) to charge site owners a fee for
applying for a site licence, for amendments or transfers of existing licences, for annual
fees and for site owners depositing site rules with the LA.
Publication of this Fees Policy is a statutory requirement and will enable Councils to
recover fees associated with the licensing function and enable site owners to recover
these costs should they opt to increase pitch fees at the next pitch fee review date. The
fees associated with applying for a new site licence, for transfers or variations of existing
licences and for annual fees are as follows:
Item
New Park Home
Licence
Licence Transfer
Licence Variation
Units
1–5
6 – 24
25 – 99
100+
1–3
4–5
6 – 24
25 – 99
100+
N/A
N/A
Deposit of Site Rules
N/A
Annual Licence Fee
Fee (£)
210.00
225.00
240.00
270.00
Nil
120
180
240
270
97.50
97.50 (plus inspection
fee if applicable)
45
This policy is applicable to ‘Relevant Protected Sites’ (RSP) only. An RSP can be defined
as any licensable caravan site other than those solely for (a) holiday use or (b) where
conditions exists specifying times during the year where caravans may not be stationed on
the land for human habitation. Sites where there are a mix of RSPs and sites falling within
(a) and (b) above will be deemed as RSPs.
The MHA 2013 enables LAs to introduce a scale of fees according to the size and
character of the RSP. The LA may also determine that no fee is required to be paid in
certain cases. Upon consideration, it is decided that sites containing 5 or fewer pitches
will be exempt from annual inspection fees due to their low risk factor and infrequent
inspection schedule. Collecting such fees in these instances is not deemed to be cost
effective.
78
The LA now has powers under the MHA to serve enforcement notices on site owners for
failing to comply with site conditions. They may also carry out works in default to
secure a remedy for such failures. Any reasonable expenses incurred while doing so
may be recovered by the LA.
The Mobile Homes (Site Rules) (England) 2014 requires site owners to replace existing
site rules with new ones and deposit these with the Local Authority. The LA has a duty to
publish this information in a register of site rules. The costs incurred by the LA in doing
so may be recovered by them. A fee of £45.00 has been set for the depositing of site
rules.
1. Introduction
A licensing scheme was introduced under The Caravan Sites and Control of
Development Act 1960 (CSCDA 1960) to regulate the establishment and operation of
caravan sites. The Act defines what constitutes a caravan and caravan site. It also sets
out cases where a site licence is not required, including;








Local Authority owned sites
Use incidental to a dwelling-house and within the same curtilage
Sites for stationing of a caravan for not more than 2 nights (as long as caravans
had not been present for more than 28 days during the previous year)
Sites where caravans are stationed on land not less than five acres for not more
than 28 days and no more than three caravans are stationed at any one time
Sites where caravans are solely for seasonal agricultural/forestry workers
employed on land owned by the site owner
Sites where caravans are solely for workers employed in building or engineering
operations on that or adjacent land
Sites used by travelling showmen who are members of a relevant organisation
Sites occupied by organisations holding a certificate of exemption
Licences can only be issued to the owners of sites that have obtained valid planning
permission.
The MHA 2013 introduced powers to enable LAs to recover costs associated with its
function to grant, amend or transfer caravan site licenses under the CSCDA 1960. Fees
may also be charged for annual inspections of licensable sites and for the depositing of
site rules with the LA by site owners. Before these fees can be recovered, N o r t h
N o r f o l k D i s t r i c t Council has a legal duty under Section 10A of CSCDA 1960 (as
amended by MHA 2013) to publish a Fees Policy. This document has therefore been
developed to allow for this.
In setting the fees published in this Fees Policy, North Norfolk District Council has given
attention to the document “Mobile Homes Act 2013 – A guide for Local Authorities on
setting site licensing fees” produced by the Department for Communities and Local
Government. The level of fees and how they are charged are, subject to legal restrictions,
at the discretion of North Norfolk District Council.
79
2. Fees for New Licences, Transfer/Variation and Annual Fees
2.1 Overview
The owners of Relevant Protected Sites are required by the CSCDA 1960 to obtain a
licence from the Local Authority. Failure to possess a licence is an offence under this
legislation and is punishable by a fine, upon conviction in a magistrates court, of up to
Level 4 on the Standard Scale (currently £2500).
The MHA 2013 amends the CSDA 1960 and now enables LAs to impose fees in
respect of:




Relevant Protected Site applications (s.3 (2A))
Annual fees in respect of RPSs (s.5A (1))
Alterations to site licence conditions (where
requested by the site owner) (s.8 (1B))
The transfer of a site licence to another party
(s.10 (1A))
When requiring a licence holder to pay an annual fee, the LA must inform them of
matters to which they have had regard to in fixing the fee. The costs associated with
monitoring conditions on sites and dealing with licensing matters informally can be
included within annual fees. However, annual fees should not take into account any
costs incurred in relation to enforcement activities such as serving compliance notices,
emergency action, and works in default as these costs can be recovered by other
means.
2.2. Exemptions from paying fees
Sites that fall outside the definition of a Relevant Protected Site are exempt from
licensing fees. These include sites for holiday use only or where conditions exists
specifying times during the year where caravans may not be stationed on the land for
human habitation. The MHA 2013 also allows LAs to determine that no fee is required to
be paid in “certain cases or descriptions of case” (s.10A(3)).
North Norfolk District Council will make sites that have three or fewer pitches exempt from
annual fees. These sites are generally deemed as being of low risk, often consisting of
single family units and do not contain the hazards associated with larger sites, e.g. fire
separation. Formal annual programmed monitoring would therefore not be deemed
necessary or cost effective. The costs associated with monitoring sites that have less
than three pitches would be met through existing budgets.
Sites for the sole use of the owner and their families (does not include sites that are run
for financial gain) are also exempt from the annual licensing fee.
80
2.3 Fees for New Licence, Transfer/ Variation and Annual Fees
In determining the fee structure contained within this Policy, the Council has referred to the
document “Mobile Homes Act 2013 – A guide for Local Authorities on setting site
licensing fees”. This involved a notional costing exercise based upon the amount of
time taken during the licensing process to include administration, site inspections,
travelling to and from site and any associated consultations or meetings and was
multiplied by relevant officer costs. Costs associated with enforcement or licensing
duties outside the MHA 2013 cannot be taken into consideration.
The subsequent fee structure has been reviewed by officers responsible for licensing
park home sites at North Norfolk District Council and are considered comparable with
nearby Local Authorities. The fee structure was devised to be as simple and clear as
possible to prevent any future ambiguity. When requiring a licence holder to pay an
annual fee the Council will inform them of the matters to which they have had regard to in
fixing the fee.
2.4 Review of Annual Licensing Fees
Section 5A(2) of the CSCDA 1960 provides that a LA in setting annual fees must advise
the site owner of the extent to which they have had regards to deficits and surpluses
from the previous year. In terms of deciding surpluses and deficits a local authority
must not make a profit and can only pass on to the site owner their costs incurred in
carrying out the licensing function. Equally, a local authority is not expected to make a
loss in carrying out its licensing functions. Overall licensing can be a self-financing
function which local taxpayers are not required to subsidise. The Council will therefore
carry out an annual review of licensing fees, taking into account deficits and surpluses
and advise site owners of the outcome of this review.
2.5 Time When Fees are Payable
Section 10A(5) of the MHA 2013 states that the Fees Policy must include provision
about the time at which the annual fee is payable. For the purpose of this policy the
period covered by the annual fee will mirror the financial year (1 April to 31 March) and will
be paid in advance. Invoices will be sent out during the month of April requiring
payment within 30 days. Where a new site is licensed part way through the year then an
invoice with the same payment terms will be sent shortly after the licence is issued, pro
rata for this date to the beginning of the next financial year. Transfer or variation must be
paid at application.
3. Enforcement Costs
The MHA 2013 allows LAs to serve compliance notices on site owners where site
licence conditions are breached. Where a notice is not complied with, an offence is
committed and the LA will enforce the notice which may involve legal proceedings.
Upon successful prosecution, the Council has the power to carry out works in default.
81
The cost of deciding whether to take action, preparing and serving the various
enforcement notices and the actual work itself can be recovered by LAs at the Court’s
discretion. Unpaid expenses can be placed as a charge against the site owner’s
land.
4. Fees for Depositing Site Rules
The Mobile Homes (Site Rules) (England) 2014 requires site owners, after
consultation with residents, to deposit site rules with the local authority by 3
February 2015. These rules constitute a pitch agreement between the site owner and
the mobile home occupier, setting out the residents’ rights and obligations and are not
enforceable by the Local Authority. LAs will need to satisfy themselves that rules
deposited with them have been made in accordance with the statutory procedure. They
will also be required to establish, keep up to date, and publish a register of site rules. In
doing so a LA may levy a fee for the depositing of site rules, or the variation or deletion
of site rules.
It is estimated that the cost to the North Norfolk District Council associated with the
administration and publication of site rules will be £45.00. Therefore a fee of
£45.00 will be charged for the depositing or replacement of site rules.
82
Table 1: Park Home Fees - Issue of new licence
Processing
Examine application documentation,
associated
certificates. Check to ensure that
details
are correct and
correct
fee is
Make assessment
of site
layout,
attached. of
provision
amenities/utilities,
examine
Finance receive payment
of fire
fee,risk
process
assessment
payment
and issue receipt
Inspection
Pitches
Verification inspection of the
site
Verification inspection of the
site
Verification
inspection of the
site
Verification inspection of the
site
1-5
6-24
25-99
100+
Issue of New Licence
Prepare licence documents and
certificates
Check and sign certificates / licence as
necessary,
and
serve
by postregister and public
Update
database
register
Time
(minutes)
60
Hourly Rate (£)
30.00
30.00
60
Total (£)
60
30.00
30.00
Total
90.00
Time
(minutes)
60
90
120
180
Hourly rate (£)
Total (£)
Time
(minutes)
120
30
Hourly rate (£)
30.00
30.00
30
Total
30.00
45.00
60.00
90.00
Total (£)
60.00
15.00
15.00
90.00
Combined Total fees for new park home licence applications
Number of Pitches
1-5
6-24
25-99
100+
83
Total Fee (£)
210.00
225.00
240.00
270.50
Number of Band
Z
pitches
Formula
A Admin Time B
Inspection
(minutes)
Time
(minutes)
120
120
4-5
1
=((A1+B1)/60 x C
6-24
2
=((A2+B2)/60 x C 180
25-99
3
=((A3+B3)/60 x C 240
100+
4
=((A4+B4)/60 x C 240
(Formula based upon Local Authority guidance)
180
240
300
Fee (£)
120.00
180.00
240.00
280.00
Table 3: Variations and Amendments
Variations and Amendments
Examine amended application
documents and
associated certificates. Check to ensure
details site
are correct
andany
correct
fee is
Check
history for
outstanding
attached
issues
Make decision as to whether
amendments are
appropriate
Prepare new license documents
Check, sign and post new documents
Update database and public register
Time
(minutes)
60
30
30
Hourly rate
(£)
30.00
30
15
30
Total
Fee (£)
30.00
15.00
15.00
15.00
7.50
15.00
97.50
Table 4: Licence transfer fee
Transfer
Check from is correct including correct
fee.
Check site history and any outstanding
issues.
Examine request documentation and
make
decision.
Prepare new licence documents.
Check, sign and post new documents.
Update database and public register.
Time
(minutes)
30
30
60
Hourly rate
(£)
30.00
30
15
30
Total
84
Total (£)
15.00
15.00
30.00
15.00
7.50
15.00
97.50
Table 5: Verification Inspections
The Council may decide to carry out a verification inspection upon receipt of a
variation, amendment or licence transfer application. The following fees will apply.
Site Inspection Fees
Verification inspection of the
site
Verification inspection of the
site
Verification inspection of the
site
Verification inspection of the
site
Pitches
1-5
6-24
25-99
100+
Time
(minutes)
60
90
120
180
Hourly rate
(£)
Time
(minutes)
30
30
15
15
Hourly rate
(£)
30.00
Total (£)
30.00
45.00
60.00
90.00
Table 6: Deposit of site rules
Deposit of site rules
Examine rules, checking for banned rules
Check site history
Accept rules or suggest amendments
Update database and public register
30.00
Total
85
Total (£)
15.00
15.00
7.50
7.50
45.00
Agenda Item 15
Annual Governance Statement 2014/15 – DRAFT
1. SCOPE OF RESPONSIBILITY
1.1.
North Norfolk District Council (NNDC) is responsible for ensuring that its business is conducted in accordance with the law and proper
standards, that public money is safeguarded and properly accounted for and used economically, efficiently and effectively. NNDC also has a
duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are
exercised, having regard to a combination of economy, efficiency and effectiveness.
1.2.
In discharging this overall responsibility, NNDC is responsible for putting in place proper arrangements for the governance of its affairs,
facilitating the effective exercise of its functions, which includes arrangements for the management of risk.
1.3.
NNDC has approved and adopted a local code of corporate governance, which is consistent with the principles of the CIPFA/SOLACE
Framework “Delivering Good Governance in Local Government”. A copy of the Council’s local code is on our website at www.northnorfolk.org or
can be obtained from the Head of Finance at the Council Offices, Holt Road, Cromer. This statement explains how NNDC has complied with the
code and also meets the requirement of regulation 4[3] of the Accounts and Audit (England) Regulations 2011 in relation to the publication of an
annual governance statement, prepared in accordance with proper practises in relation to internal control and is reviewed annually or more
frequently as required. In addition NNDC’s framework for delivering good Corporate Governance is embedded within its constitution, policies and
procedures.
2. THE PURPOSE OF THE GOVERNANCE FRAMEWORK
2.1.
The governance framework comprises the systems and processes, and culture and values, by which the authority is directed and controlled and
its activities through which it accounts to, engages with and leads the community. It enables the Council to monitor the achievement of its
strategic objectives and to consider whether those objectives have led to appropriate, cost-effective service delivery.
2.2.
The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate all
risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness.
The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Council’s
policies, aims and objectives, to evaluate the likelihood and impact should those risks be realised and to manage those risks efficiently,
effectively and economically.
2.3.
The governance framework has been in place at NNDC for the year ended 31 March 2015 and up to the date of approval of the statement of
accounts.
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3. THE GOVERNANCE FRAMEWORK
3.1.
The Councils governance framework is derived from the following principles:
3.1.1. focusing on the purpose of the authority and on outcomes for the community and creating and implementing a vision for the local area;
3.1.2. members and officers working together to achieve a common purpose with clearly defined functions and roles;
3.1.3. promoting values for the authority and demonstrating the values of good governance through upholding high standards of conduct and
behaviour;
3.1.4. taking informed and transparent decisions which are subject to effective scrutiny and managing risk;
3.1.5. developing the capacity and capability of members and officers to be effective; and
3.1.6. engaging with local people and other stakeholders to ensure robust public accountability.
3.2.
The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate all
risk of not fully achieving policies, aims and objectives and therefore provides a reasonable rather than absolute assurance of effectiveness.
The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of NNDC policies,
aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them
efficiently, effectively and economically.
3.3.
The following section goes through in detail each of the key principles of the governance framework.
4. THE SIX KEY PRINCIPLES
4.1.
Focusing on the purpose of the authority and on outcomes for the community and creating and implementing a vision for the local
area
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1
4.1.1.
The Council’s aims and objectives are set out in the Corporate Plan 2012-2015: small government, big society1. This contains a
statement of the Council’s vision for the area, priorities and business strategy over the same period.
4.1.2.
The Corporate Plan identifies five key strategic priorities for the Council up to 2015 including clear statements of intent under each of
the following priority areas:

To boost employment and create more jobs

To enable the provision of new homes and the infrastructure that goes with them

To protect our coastline and the character of our countryside and built heritage

To empower individuals and local communities to have a greater say in their own futures

To reform the organisation to deliver high quality services that achieve our priorities in an efficient manner that represents good
value for local taxpayers.
4.1.3.
The Corporate Plan contains details of what the Council wants to achieve, the methods to be employed in delivering the key priorities
and is accompanied by an annual action plan setting out the details which underpin the Corporate Plan. In addition the Cabinet
receives an annual Medium Term Financial Strategy which draws on other strategies, including ICT, asset management and human
resources covering a rolling four-year period, which is used to set initial parameters for the annual budget process.
4.1.4.
The Council has an effective performance management framework utilising a dedicated IT system to record and report upon
performance management information. The system is driven by the Corporate Plan which focuses attention on Council priorities. This is
cascaded through departmental service plans, individual employee appraisals and action plans. It is clearly established in the annual
service and financial planning and performance management cycle and comprises of regular reports to Members upon progress of
delivering the overall plan.
4.1.5.
The Annual Report and Performance Plan represents the culmination of the annual planning and reporting process. The report
evidences the compliance of the Council with its Performance Management Framework and is reported in June each year.
4.1.6.
The Council’s Cabinet and the Performance and Risk Management Board monitor and scrutinise progress against targets and
performance in priority areas affecting relevant service areas, and consider and approve corrective action on a regular basis where
necessary. These reports also include a minimum of four budget monitoring reports including the outturn report, covering the revenue
account, capital projects, key prudential code indicators, treasury management and certain specific budget areas regarded as
particularly sensitive. The reporting process is under constant review in order to develop its maximum potential, and we are conscious
that the financial information needs to be closely linked to the service performance information.
The Corporate Plan from 2015 onwards will be updated post the May 2015 Elections
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4.1.7.
All budget headings are allocated to a named budget officer, who is responsible for controlling spend against a budget. This control is
reinforced by regular budget monitoring reports to Cabinet and Overview and Scrutiny Committee culminating in the annual outturn
report.
4.1.8.
The Council maintains an objective and professional relationship with external auditors and other statutory inspectors, as evidenced by
the Annual Audit Letter.
4.1.9.
Through reviews by external agencies, and Internal Audit, the Council constantly seeks ways of ensuring the economic, effective and
efficient use of resources, and for securing continuous improvement in the way in which its functions are exercised.
4.1.10.
During the year the Council took part in a Corporate Peer Challenge, the review focused on a number of opportunities for growth along
with how effective the Council’s arrangements are for transformation to meet financial challenges and how the arrangements will
provide services to residents and businesses in the future. The feedback from the review was very positive, in relation to governance
and decision making the feedback included the following:


The formal democratic decision-making process of Cabinet and committees works with each understanding their
respective role.
The Cabinet and CLT interface is strong and there is good use of Management Boards (with Member involvement)
that can be a powerful way to develop cross-cutting themes and agendas and to work across Council services to
promote integrated working.
4.1.11. During the year the Constitution Working Party met to review and recommend changes as applicable.
4.1.12. The Performance and Risk Management Board has defined terms of reference to develop a comprehensive performance framework for
risk management and to embed risk management across the Council. The Performance and Risk Management Board maintains the risk
register, and submits it to the Audit Committee on a regular basis. The representatives on the Business Continuity Working Group is
currently under review this has not impacted on the delivery of Business Impact Assessments which are now in place for critical areas
and Business Continuity Plans have been strengthened with critical services having complete documentation.
4.2.
Members and Officers working together to achieve a common purpose with clearly defined functions and roles
4.2.1.
The Council aims to ensure that the roles and responsibilities for governance are defined and allocated so that accountability for
decisions made and actions taken are clear.
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4.2.2.
The Council has adopted a constitution which sets out how the Council operates, how decisions are made and the procedures which
are followed to ensure these are efficient, transparent and accountable to local people. It does this by electing a Leader and appointing
a Cabinet. The Leader then allocates executive responsibilities to the members of the Cabinet.
4.2.3.
The Council publishes a forward plan which contains details of key decisions to be made by the Cabinet. Each Cabinet member has a
specific portfolio of responsibilities requiring them to work closely with senior officers and other employees so as to achieve the
Council’s ambitions. The Cabinet operates on the basis of collective responsibility.
4.2.4.
Additionally, the Council appoints a number of committees to discharge the Council's regulatory and scrutiny responsibilities. These
leadership roles, and the delegated responsibilities of officers, are set out in the Constitution, revisions to the constitution were
recommended by the constitution working party during the year.
4.2.5.
All Committees have clear terms of reference and work programmes to set out their roles and responsibilities. An Audit Committee
provides assurance to the Council on the effectiveness of the governance arrangements, risk management framework and internal
control environment.
4.2.6.
Meetings are open to the public except where personal or confidential matters are being discussed. Public speaking was introduced to
all Committees and Full Council some years ago to improve openness and accountability. In addition, senior officers of the Council can
make decisions under delegated authority, the extent of these delegations is set out in the Constitution.
4.2.7.
The Constitution also includes a Member/Officer protocol which describes and regulates the way in which Members and Officers should
interact to work effectively together.
4.2.8.
The Council's Chief Executive (and Head of Paid Service) leads the Council's officers and chairs the Corporate Leadership Team which
consists of the Chief Executive and two Corporate Directors. All staff, including senior management, have clear conditions of
employment and job descriptions which set out their roles and responsibilities.
4.2.9.
The Head of Finance has been appointed as the s151 Officer under the Local Government Act 1972, carrying overall responsibility for
the financial administration of the District Council and is member of the Management Team. The Council complies with the requirements
of the CIPFA statement on the Role of the Chief Financial Officer in Local Government. The corporate finance function headed by s151
Officer, provides support to each service area of the Council in respect of budget preparation, financial monitoring and advice.
4.2.10. The Monitoring Officer position is provided under contract with NP Law and carries overall responsibility for legal compliance supported
by a legal team. The Council employs four practising solicitors.
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4.2.11. The Council’s Corporate Leadership Team (CLT) is made up of the Chief Executive and two Corporate Directors who meet on a weekly
basis to develop policy issues commensurate with the Council’s aims, objectives and priorities. CLT also considers other internal control
issues, including risk management, performance management, compliances, value for money and financial management. CLT also
meets with Cabinet on a regular basis to review progress in achieving the Council’s ambitions, priorities for action, performance
management and forward planning for major issues.
4.2.12. Below CLT the management structure is well defined in a hierarchical manner, comprising the following teams:
Title
Corporate Leadership Team
(CLT)
(Consists of Chief Executive
and Corporate Directors)
Title
Management Team (MT)
Principal Objectives
Weekly meetings that deal with forward workplan and media issues
Provides collective responsibility for:
•
•
•
•
•
•
•
•
Providing corporate leadership;
Employee development ;
Internal and external communications;
Performance management; and
Co-ordinating and delivering corporate objectives and priorities for action;
Reviews corporate policy implementation;
Agrees corporate standards; and
Considers key operational matters
Principal Objectives
Monthly meetings consisting of all Heads of Service and members of Corporate Leadership Team.
(Consists of CLT and Heads of To work with the Corporate Leadership Team in the leadership of the Council so as to deliver the
Service)
Council’s Corporate Plan and provision of high quality services to the District’s residents,
businesses and visitors.
To work as one team to deliver the Council’s objectives and vision by
•
Leading by example - promoting the values and principles of the Council
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Title
Principal Objectives
• Utilising collective skills, knowledge and experience
• Creating a safe, collaborative and respectful environment where robust challenge and
informed and managed risk taking is acceptable
• Keeping colleagues informed on matters which may impact on other service areas
• Collectively updating CLT on matters of strategic or reputational importance
• Providing consistent and regular communication to staff on key issues and activities
• Listening to, sharing and reacting to feedback from staff, Councillors and service users
• Deputising on generic management issues for other Heads of Service as required
• Providing shared understanding of the changes the Council needs to take in order to gain ‘buy
in’ from staff
• Taking joint responsibility to empower and motivate staff to provide the best possible service
and be proud of their achievements
• Continually challenging current working practices and identifying flexible and innovative ways
to maximise efficiency and effectiveness
• Taking responsibility for implementing changes (within budget) to service delivery, including
across services
• Driving a customer service ethos throughout the organisation
• Measuring and managing performance against key indicators
Title
Extended Managers Group
Principal Objectives
•
(Consists of all Managers that •
Report to a Head of Service)
•
Quarterly meetings of all Managers that report to a Head of Service
Deliver consistent messages through the organisation
Keeping managers informed on matters which may impact on their teams and services
In addition there are specific groups established to progress issues on a corporate basis, examples include the following:
Group
Principal objectives
Coastal Management Board
(Consists of Members and
•
The Board meets on a quarterly basis, with additional meetings if required;
•
To oversee coastal adaptation and policy and coast defence capital works;
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Group
Officers)
Performance and Risk
Management Board (Consists
of the Leader, Deputy Leader
and Portfolio member for
Resources, CLT, Head of
Finance and Head of
Organisational Development)
Principal objectives
•
Providing strategic steer for the overall management of the coastal issues at NNDC;
•
Provides an officer/member corporate group to ensure an integrated approach is taken to all
coastal issues and inform the development of an Integrated Coastal Management Plan;
•
Make recommendations to Cabinet as appropriate;
•
Reports into the Coastal Forum.
To maintain a performance management framework that is understood and implemented by all;
•
To identify and manage the Council’s strategic and operational risks and strengthen business
continuity;
•
To ensure that all staff and Members have a shared understanding of the council’s priorities
and of what is needed to be done to realise those priorities;
•
To ensure that the commitment given to performance and risk management is commensurate
with the importance placed on embedding a successful performance and risk management
culture;
•
To ensure that services deliver the corporate objectives by challenging the measures and
targets put forward by service heads / managers;
•
To ensure that management and Council decisions are based on valid, accurate and timely
information;
•
Report to Audit Committee, Scrutiny or Cabinet.
Housing and Planning Policy
Board (Consists of the Leader
and Portfolio Member and
Officers)
•
Provide a steer to the work of the Housing and Planning Policy Teams to ensure a strategic
approach to deliver the Council’s Growth Agenda;
•
Report to Planning Policy and Built heritage Working Party.
Big Society Grant Panel
(Consists of Members and
Officers)
•
•
Receive and determine applications for Big Society and Enabling funding;
Make recommendations to Cabinet on large grant applications.
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4.3.
Promoting values for the community and demonstrating the values of good governance through upholding high standards of conduct
and behaviour.
4.3.1.






4.3.2.



The Council has adopted a number of codes and protocols that govern both Member and Officer activities. These are:
Members Code of Conduct;
Officers Code of Conduct;
Planning Protocol;
Members’ declarations of interest;
Member/Officer relations; and
Gifts and hospitality
The Council takes fraud, corruption and maladministration very seriously and has the following policies in place which aim to prevent or
deal with such occurrences:
Anti-Fraud and Corruption Policy;
Whistle Blowing Policy; and
HR policies regarding the implications for staff involved in such incidents.
4.3.3.
It is part of the function of the Monitoring Officer to ensure compliance with established policies, procedures, laws and regulations. After
consulting the Chief Executive and Head of Finance, the Monitoring Officer can report to the Full Council if any proposal, decision or
omission would give rise to unlawfulness or maladministration. Such a report will have the effect of stopping the proposal or decision
being implemented until the report has been considered.
4.3.4.
The financial management of the Council is conducted in accordance with the financial rules set out in the Constitution and with
Financial Regulations. The Council has designated the Head of Finance as its Chief Finance Officer in accordance with Section 151 of
the Local Government Act 1972. The Council has in place a four-year Financial Strategy, updated annually, to support the medium-term
aims of the Corporate Plan.
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4.4.
4.3.5.
The Council maintains an externalised Internal Audit function, which operates to the Public Sector Internal Audit standards. 2014/15
was the final year of the delivery model with South Norfolk District Council to provide internal audit services to a consortium of client
authorities under a contract with Mazars Public Sector Internal Audit Ltd.2
4.3.6.
Service Plans are produced and updated annually so as to translate the Corporate Plan requirements into service activities and to take
into account available funding. In this way services identify and plan to achieve the Council’s priorities and ambitions. These plans also
identify any governance impact.
4.3.7.
At employee level the Council has established an Employee Development Scheme so as to jointly agree employee objectives and
identify training and development needs. The Scheme provides for an annual appraisal for each member of staff at which past
performance is reviewed, work objectives are planned and also provides for regular monitoring of performance during the year.
Taking informed and transparent decisions which are subject to effective scrutiny and managing risk.
4.4.1.
The Council’s Constitution sets out how the Council operates and the process for policy and decision making.
4.4.2.
Full Council sets the policy and budget framework. Within this framework, all key decisions are made by the Cabinet. Cabinet meetings
are open to the public (except where items are exempt under the Access to Information Act).
4.4.3.
The Leader’s Forward Plan of key decisions to be taken over the next three months is published on the Council’s website.
4.4.4.
All decisions made by Cabinet are made on the basis of reports, including assessments of the legal and financial implications, policy
and equalities assessments, and consideration of the risks involved and how these will be managed. The financial and legal
assessments are provided by named finance and legal officers as part of the report production stage.
4.4.5.
The decision-making process is scrutinised by a scrutiny function which has the power to call in decisions made, but which also
undertakes some pre-decision scrutiny and some policy development work.
4.4.6.
Other decisions are made by officers under delegated powers. Authority to make day to day operational decisions is detailed in a
departmental Scheme of Delegation.
2
During 2014/15 the procurement of the Internal Audit provider for the consortium from 2015/16 was completed with the outcome finalized in the Autumn of 2014 ahead of the
commencement of the new contract with TIAA from April 2015.
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4.4.7.
Policies and procedures governing the Council's operations include Financial Regulations, Contract Procedure Rules and a Risk
Management Policy. Ensuring the policies are up to date and complied with is the responsibility of managers across the Council. The
Internal Audit, Finance and Legal Services also check that policies are complied with. Where incidents of non-compliance are identified,
appropriate action is taken.
4.4.8.
The Council’s Risk Management framework requires that consideration of risk is embedded in all key management processes
undertaken. These include policy and decision making, service delivery planning, project and change management, revenue and capital
budget management and partnership working. In addition, a Corporate Risk Register is maintained and the Performance and Risk
Management Board meets regularly to review the extent to which the risks included are being effectively managed. The Audit
Committee oversees the effectiveness of risk management arrangements and provides assurance to the Council in this respect.
Financial Management processes and procedures are set out in the Council’s Financial Regulations and include:

Comprehensive budgeting systems on a medium term basis;

Clearly defined capital and revenue expenditure guidelines;

Regular reviews and reporting of financial performance against the plans for revenue and capital expenditure and income;

Overall budgets and a clear Scheme of Delegation defining financial management responsibilities;

Regular capital monitoring reports which compare actual expenditure plus commitments to budgets;

Key financial risks are highlighted in the budgeting process and are monitored through the year by service and corporately;

Robust core financial systems; and

Documented procedures are in place for business critical financial systems, and these are also checked on a regular basis
by Internal Audit.
4.4.9.
Containing spending within budget is given a high priority in performance management for individual managers. Monitoring reports are
submitted to the Cabinet on a quarterly basis linking finance and service delivery performance and also provides a monitoring position
on achieving planned savings.
4.4.10. The Council has several committees which carry out regulatory or scrutiny functions. These are:

Development Control Committee to determine planning applications and related matters;

Standards Committee which promotes, monitors and enforces probity and high ethical standards amongst the Council’s
Members, and this extends to having the same responsibility for all town and parish councils within the District;

Audit Committee to obtain assurance about the adequacy of internal controls, financial accounting and reporting
arrangements, and that effective risk management is in place. The committees work is intended to enhance public trust in
the corporate and financial governance of the council;

A Licensing Committee is responsible for policy issues regarding licensing and will consider licensing applications;

Overview and Scrutiny Committee, which review and/or scrutinise decisions made or actions taken in connection with the
discharge of any of the Council’s functions.
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4.5.
4.6.
Developing the capacity and capability of Members and Officers to be effective
4.5.1.
The Council aims to ensure that Members and managers of the Council have the skills, knowledge and capacity they need to discharge
their responsibilities and recognises the value of well trained and competent people in effective service delivery. All new Members and
Officers undertake an induction to familiarise them with protocols, procedures, values and aims of the Council.
4.5.2.
All Council services are delivered by trained and experienced people. All posts have a detailed post profile and person specification.
Training needs are identified through the Employee Development Scheme and addressed via the Human Resources service and/or
individual services as appropriate.
4.5.3.
The Council was re-assessed in July 2013 for the Investors in People Standard and was re-accredited at Bronze level, the Council is
currently planning for re-assessment in late Autumn 2015.
4.5.4.
In respect of Members, the Council has established a Member Training, Development and Support Group which has continued to meet
to support the Member development programme. As part of the arrangements for developing and supporting elected Members the
Council has committed itself to achieving the Members Charter which will provide a structured approach to building elected Member
capacity.
4.5.5.
Members who have not undertaken relevant training are not permitted to sit on the regulatory committees for example Development
Committee. This, along with the Scrutiny role provides important developmental opportunities for Members.
4.5.6.
The Council is concentrating on delivering improved service for its customers through an information management strategy designed to
enhance the value and usefulness of the corporate resource that information, data and knowledge represents.
Engaging with local people and other stakeholders to ensure robust public accountability
4.6.1.
The Council has an approved Communication Strategy which covers the period 2011 to 2015, this is due to be reviewed in 2015/16.
The Communication Strategy ensures that the work of the Council is and will continue to be open, honest and transparent and will
enhance inclusion by building on our understanding of all residents’ needs and perceptions, through improved customer service and
community engagement. An annual action plan is agreed and implemented in conjunction with the strategy.
4.6.2.
In line with the implications and opportunities arising from the Localism Act 2011, the Council is currently developing a Customer
Services Strategy and a separate Consultation Strategy is also being developed.
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4.6.3.
The Communication Strategy sets the framework for both conveying messages and seeking residents’ views, and supports the need for
further improvement with clear aims and a set of specific actions.
4.6.4.
The Council has continued to engage with local people and stakeholders on a range of issues, the means of engagement include the
following;

Surveys;

Consultation workshops;

Interviews;

Public meetings;

Road shows;

Attendance at parish and Town Council meetings.
4.6.5.
The results of this engagement continue to be used to shape and inform the Council’s policies and strategies.
4.6.6.
The Council has tried to engage “harder to reach” groups through varying the way in which it conducts consultation so that the views of
a broad spectrum of the community can be well represented.
4.6.7.
The Council has recognised the opportunities provided by the Localism Act 2011 to engage with local communities. The Corporate Plan
(Small Government – Big Society), and its associated action plan, sets out how the Council proposes to embrace the Localism agenda.
In addition the Council has continued to provide support and funding (from the Big Society Fund) for community oriented projects,
building on the successful approach operated since it started in 2012/13.
5. REVIEW OF EFFECTIVENESS
5.1.
NNDC annually reviews the effectiveness of its governance framework including the system of internal control. The review of effectiveness is
informed by managers within the Council who have responsibility for the development and maintenance of the governance environment, the
work of the internal auditors and from comments made by the external auditors and other inspection agencies.
5.2.
Both during the year and at year end, reviews have taken place. In year review mechanisms include:
5.2.1.
The Cabinet is responsible for considering overall financial and performance management and receives comprehensive reports on a
quarterly basis. It is also responsible for key decisions and for initiating corrective action in relation to risk and internal control issues.
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5.2.2.
The Monitoring Officer has a duty to monitor and review the operation of the Constitution to ensure its aims and principles are given full
effect. In addition the Constitution Working Party is in place to review the constitution and make recommendations to Full Council as
appropriate.
5.2.3.
The Council has a Scrutiny Committee which can establish ‘task and finish’ groups, to look at particular issues in depth, taking evidence
from internal and external sources, before making recommendations to the Cabinet. Scrutiny can “call-in” a decisions of the Cabinet
which are yet to be implemented, to enable it to consider whether the decision is appropriate. In addition the Scrutiny Committee can
exercise its scrutiny role in respect of any Cabinet function, regardless of service area or functional responsibility, and will conduct
regular performance monitoring of all services, with particular attention to areas identified as under-performing.
5.2.4.
The Local Government and Public Involvement in Health Act 2007 include powers to enable Councillors to formally champion local
issues where problems have arisen in their ward. North Norfolk has embedded the “Councillor Call for Action”. This allows Councillors to
ask for discussion at Overview and Scrutiny Committee on issues where other methods of resolution by the District member have been
exhausted.
5.2.5.
The development of the procurement function across the public sector has led to the establishment of a number of framework
agreements for purchasing where the detailed work on price and quantity with suppliers has already been carried out. Contracts for
supply are only established when goods works or services are called off under the agreement.
5.2.6.
The Equality Framework builds on the work already undertaken in this area. It is based on three levels of “developing, achieving and
excellent”.
5.2.7.
The Standards and Conduct provisions of the Localism Act 2011 came into force on 1st July 2012. The authority has appointed an
Independent Person pursuant to the Act and has decided to have a Standards Committee (which is now not mandatory). This
committee met seven times during the year to consider complaints and issues around the conduct of Members. The Committee has
received a number of items during the year including, reports detailing complaints received by the Monitoring Officer and the status of
such complaints. It has held two full hearings in relation to Members and parish complaints.
5.2.8.
The Audit Committee met four times during the year to provide independent assurance to the Council in relation to the effectiveness of
the risk management framework and internal control environment. The Committee received regular reports on, internal control and
governance matters in accordance with its agreed work programme. During the year 16 (14 in 2013/14) internal audit assignments were
completed delivered over 210 days (186 days in 2013/14), the level of assurance achieved was adequate overall. One review was not
completed during the year as originally planned due to the timing of the review, this was carried forward to the following year.
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5.2.9.
Internal Audit is an independent and objective assurance service to the management of the District Council. It completes a programme
of reviews throughout the year (16 reviews completed during 2014/15) to provide an opinion on the internal control, risk management
and governance arrangements. In addition, Internal Audit undertakes fraud investigation and proactive fraud detection work which
includes reviewing the control environment in areas where fraud or irregularity has occurred. All significant weaknesses in the control
environment identified by Internal Audit are reported to senior management and the Audit Committee. It should be noted that two high
risk recommendations were raised in the year in relation to Network Infrastructure, both recommendations have been implemented in
line with the agreed timescales and therefore no high priority recommendations are outstanding. Internal Audit also carry out bi-annual
reviews of the status of implementation of Internal Audit recommendations. During the year there has been an improvement in the
number of recommendation being completed compared to the previous year. At 31 March 2015 there was 10 recommendations
outstanding (7 medium and 3 low) compared to 19 outstanding at 31 March 2014 (12 medium and 7 low), where applicable revised
implementation dates have been agreed between Audit and Officers and will be followed up during 2015/16.
5.2.10. The External Auditor’s Annual Audit Letter is considered by the Audit Committee and the Performance and Risk Management Board.
5.2.11. The Performance and Risk Management Board monitor Performance Indicators on a quarterly basis and recommend improvements to
the Cabinet. They also continually review corporate risks and ensure that actions are being taken to effectively manage the Council's
highest risks.
5.2.12. The Council continues to review its treasury management arrangements in line with best practice and in response to regular updates
and advice from the Council’s Treasury advisors, Arlingclose.
5.2.13. Management Team (Heads of Service and CLT) complete an annual Self-Assessment Assurance Statement which identifies noncompliance in a number of areas including procedures, risk and control, financial management and procurement. Any significant areas
of non-compliance will either be taken account of in service plans or if corporate included in the AGS action plan.
5.3.
The year-end review of the governance and the control environment arrangements by the Performance and Risk Management Board included:
5.3.1.
Obtaining assurances from Directors and Heads of Service that key elements of the control framework were in place during the year in
their departments.
5.3.2.
The statement itself was considered by CLT and is supported by them as an accurate reflection of the governance arrangements in
place for the year.
5.3.3.
Obtaining assurances from other senior management, including the Monitoring Officer that internal control and corporate governance
arrangements in these essential areas were in place throughout the year.
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5.3.4.
Reviewing any high level audit recommendations that remained outstanding at the year end and taking appropriate action if necessary.
5.3.5.
Reviewing external inspection reports received by the Council during the year, the opinion of the Head of Internal Audit in her annual
report to management and an evaluation of management information in key areas to identify any indications that the control
environment may not be sound.
5.4.
The Audit Committee received assurances from the Head of Internal Audit that standards of internal control, corporate governance
arrangements and systems of risk management were all operating to an adequate standard.
5.5.
The Audit Committee review the effectiveness of the governance framework as part of an annual review of the Local Code of Corporate
Governance, and an improvement plan to address weaknesses and ensure continuous improvement of the system is in place.
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6. SIGNIFICANT GOVERNANCE ISSUES
6.1.
6.2.
Two significant issues requiring action were made within the 2013/14 Annual Governance process, the status on these are included below:
Action
Officer
Target Date
Status
Timely completion of all
agreed internal audit
recommendations
Management Team (All
Heads of Service and
CLT)
31 October 2014
In progress – there has been an improvement in the
implementation of agreed recommendations, whilst there are
some outstanding recommendations the progress of
implementation is being monitored as part of the ongoing
programme of review.
Recording of all
delegated Executive
decisions
Chief Executive
30 September 2014
Completed (TBC)
Following from the review of the Annual Governance Statement for 2014/15 and the Self-Assessment Assurance Statements the following action
has been identified:
Action
Contract and SLA monitoring including
contracts register maintenance and
publication inline with transparency
requirements
Officer
Target Date
Management Team (All Heads of Service and
CLT)
31 October 2015
7. CERTIFICATION
7.1.
To the best of our knowledge, the governance arrangements, as defined above, have been effectively operating during the year with the
exception of those areas identified above. We propose over the coming year to take steps to address the above matters to further enhance our
governance arrangement. We are satisfied that these steps will address the need for improvements that were identified during the review of
effectiveness and will monitor their implementation and operation as part of our next annual review.
Leader of the Council:
Chief Executive:
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Cllr Tom FitzPatrick
Mrs Sheila Oxtoby
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