Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
27th August 2015
A meeting of the Cabinet of North Norfolk District Council will be held in the Council Chamber at
the Council Offices, Holt Road, Cromer on Monday 7th September 2015 at 10.00am
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 Committee Chair 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 should 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: Mrs S Arnold, Mr N Dixon, Mr T FitzPatrick, Mrs A Fitch-Tillett, Mr W Northam, Mrs J Oliver,
Miss B Palmer, Mr J Rest,
All other Members of the Council for information.
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 & Steve Blatch
Tel 01263 513811 Fax 01263 515042 Minicom 01263 516005
Email districtcouncil@north-norfolk.gov.uk Web site northnorfolk.org
AGENDA
1.
TO RECEIVE APOLOGIES FOR ABSENCE
2.
MINUTES
(page 12)
To approve, as a correct record, the minutes of the meeting of the Cabinet held on 6th
July 2015.
3.
PUBLIC QUESTIONS
To receive questions from the public, if any.
4.
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.
5.
DECLARATIONS OF INTEREST
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.
6.
MEMBERS QUESTIONS
To receive oral questions from Members, if any.
7.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR RECONSIDERATION
To consider matters referred to the Cabinet (whether by the Overview and Scrutiny
Committee or by the Council) for reconsideration by the Cabinet in accordance with the
provisions within the Overview and Scrutiny Procedure Rules or the Budget and Policy
Framework Procedure Rules.
8.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE
To consider any reports from the Overview and Scrutiny Committee, which may be
presented by the Chairman of the Overview and Scrutiny Committee, and determination
of any appropriate course of action on the issues so raised for report back to that
committee
9.
BUDGET MONITORING 2015/16 – PERIOD 4
(page 17)
(Appendix A – p.24) (Appendix B – p.25) (Appendix C – p.27) (Appendix D – p.28)
Summary:
This report summarises the budget monitoring position for
the revenue account and capital programme to the end of
July 2015.
Options
considered:
Not applicable
Conclusions:
Recommendations:
Cabinet
Decision
The overall position at the end of July 2015 shows an
under spend of £175,136 to date for the current financial
year on the revenue account, this is currently expected to
deliver a full year variance of £115,000.
It is recommended that:
1) Cabinet note the contents of the report and the
current budget monitoring position;
2) Approve the additional budget of £20,000 in respect of
4a Market Street as referred to within the report.
To update Members on the current budget monitoring
position for the Council.
Reasons for
Recommendations:
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
System budget monitoring reports
Cabinet member(s):
Ward member(s)
Contact Officer
Telephone
Email
10.
Councillor W Northam
All
Karen Sly
01263 516243
karen.sly@north-norfolk.gov.uk
MANAGING PERFORMANCE Q1 2015/16
(page 33)
(Appendix E – p. 36)
Summary:
The purpose of this report is to give a first quarter progress report
of the performance of the Council. More specifically it reports
delivery of the Annual Action Plan 2015/16 and achieving targets.
It gives an overview, identifies any issues that may affect delivery
of the plan, the action being taken to address these issues and
proposes
any
further
action
needed
that
requires
Cabinet approval.
Options considered:
Options considering action regarding performance are presented
separately, issue by issue, to the appropriate Council Committee.
Conclusions:
Cabinet
Decision
1. The majority of the 55 activities in the Annual Action Plan
2015/16 are on track (49). Performance is being closely
monitored, particularly for the activities where issues or
problems have been identified (two). Some activities have
already been completed successfully (two), one is on hold
and one is not started.
2. Of the 17 performance indicators where a target has been
set 11 are on or above target, two close to target and four
below target. Where assessment against the same period
last year is possible (20 indicators), nine are improving,
five are static and six are worsening.
3. The delivery of the Annual Action Plan is progressing
according to plan but there are a very few performance
issues in achieving targets and achieving improvement.
The issues involved, and action being taken in each case,
are detailed in the remainder of the document.
Recommendation:
11.
That Cabinet notes this report, welcomes the progress
being made and endorses the actions laid out in
Appendix E being taken by management where there are
areas of concern.
Reasons for
Recommendations:
To ensure the objectives of the Council are achieved.
Cabinet member(s):
Ward member(s)
Contact Officer
Telephone
Email
Councillor T FitzPatrick
All
Helen Thomas
01263 516214
helen.thomas@north-norfolk.gov.uk
CORPORATE PLAN 2016-2020 AND LOCAL GOVERNMENT CONTEXT
(page 77)
(Corporate Plan – p.89)
Summary:
Council
Decision
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:
Reasons for
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
3. any comments to the meeting of Full Council on 23
September 2015
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
Cabinet Member:
Ward member(s)
Contact Officer
Telephone
Email
12.
Councillor T FitzPatrick
All
Sheila Oxtoby
01263 516000
sheila.oxtoby@north-norfolk.gov.uk
MEDIUM TERM FINANCIAL STRATEGY
(page 97 )
(Strategy document – p.99) (Reserves statement – p.125)
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
Council
Scheme for 2016/17;
Decision
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.
To refresh the Medium Term Financial Strategy in line with the
Reasons for
Recommendations: 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 201718
2015/16 Budget report, item 11 February 2015 Cabinet - February 2015
Cabinet Agenda
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
13.
Councillor W Northam
All
Karen sly
01263 516243
karen.sly@north-norfolk.gov.uk
CABBELL PARK – PROPOSED LIFTING OF OPEN SPACE RESTRICTION
(page 127)
(Consultation responses – electronic appendix only)
This report summarises the comments received from
the recent public consultation exercise on the
proposed lifting of the open space restriction at
Cabbell Park, Cromer so as to allow future
development of the site to accommodate a new
medical centre for the town and potentially other uses
on the balance of the site in the future.
Summary:
Options:
The report considers:
whether the authority should proceed with lifting the open
space restriction on Cabbell Park, Cromer so as to
facilitate development of a new medical centre facility to
serve the town on part of the site, as well as new sports
pitch facilities on a site on the edge of town; or

retain the Cabbell Park site in current use as a single
football pitch with limited access by the wider public
which the Council believes is outside of the original
intention of the benefactor in proposing that the Cabbell
Park site be defined as open space under the terms of
the 1906 Open Spaces Act.
Conclusions:
The recent public consultation process has indicated
support for the lifting of the open space restriction in
order to accommodate a new medical centre facility for
the town on part of the Cabbell Park site, but a
preference for the balance of the site to be retained as
open space, available for wide public use.
Recommendations:
That Cabinet:1. considers the comments received through the
public consultation process;
Cabinet
Decision
2. agrees to the removal of the open space
restriction at Cabbell Park; and
3. restates its intention that the proposed new
Cromer community sports pitch facility will be
named after Mrs Bond Cabbell in honour of her
original bequest of land in the town for sporting
purposes in memory of local people who gave their
lives in service during the Great War of 1914-1918.
Reasons for
Recommendations:
Cabinet member(s):
Ward member(s)
Contact Officer
Telephone
Email
14.
To facilitate investment in new medical centre and sports
facilities for Cromer.
Councillor T FitzPatrick
All
Steve Blatch
01263 516214
steve.blatch@north-norfolk.gov.uk
PROCUREMENT OF REPLACEMENT PRINT SOLUTION
Summary:
(page 133)
This report details the need to procure a new
corporate printing solution for the Council. The
existing print solution contract expires in December
this year and needs in this area are changing as a
result of technology, giving us an opportunity to
change our approach with potentially, significant
financial savings.
Options considered:
Procure a solution which maintains the existing level
of centralised, on site printing. This has been rejected
as being too expensive for the volumes the council
now requires.
Procure a solution which reduces the level of
centralised on site printing. Soft market testing has
indicated that this will deliver savings but that it is
probably not the best solution in terms of value for
money.
Procure a hybrid solution which allows for a
combination of onsite and offsite printing with an
option for inclusive postage costs for the offsite printed
matter. Soft market testing indicates this will be the
best option as it will give greatest flexibility and better
financial savings than option 2 above.
Procure a completely offsite printing solution, including
postage where required. This may provide more
financial benefits but it is likely that the additional risks
in terms of flexibility and speed of delivery may
outweigh these additional benefits.
Conclusions:
The current print contract is due to expire in
December 2015, and authorisation is therefore
required from Cabinet to procure a new print solution.
This can be achieved by a number of procurement
options, including both the use of framework contracts
which the council is eligible to use, and open
procurement options.
A simple reduction in print equipment to reflect current
volumes provides an adequate business case to
proceed. However, it is likely that a hybrid,
onsite/offsite printing, with postage costs included
solution will provide the most economically
advantageous solution to the Council, given the
likelihood of changing needs for printed material in the
future.
It would appear that this can be delivered either in
splits lots or as one overarching contract.
Recommendations:
Cabinet
Decision
Reasons for
Recommendations:
That Cabinet authorises officers to procure a new
printing solution, which gives the most
economically advantageous option to the Council,
for implementation as soon as possible after the
existing printing equipment contract expires in
December 2015.
The existing printing contract expires in December
2015 and there is a need to complete the procurement
by this time or negotiate a short additional extension
to cover a longer procurement period..
Whilst eligible framework contracts will allow this
timeline to be met, the Council wishes to ensure that
smaller, local providers are able to be included in the
procurement process.
Cabinet member(s):
Ward member(s)
Contact Officer
Telephone
Email
15.
Councillor T FitzPatrick
All
Nick Baker
01263 516221
nick.baker@north-norfolk.gov.uk
FORMER NORTHFIELD ROAD SURGERY PREMISES, NORTH WALSHAM
(page 141)
(Aerial map – p.146) (Floor plan – p.147) (Exempt Appendix 1 – p.)
** EXEMPT APPENDIX ** NOT FOR PUBLICATION – BY VIRTUE OF PARAGRAPH 3 OF
PART 1 OF SCHEDULE 12A (AS AMENDED) OF THE LOCAL GOVERNMENT ACT 1972
Summary:
Conclusions:
This report proposes that the District Council registers
its interest with NHS England Property Services in
purchasing the freehold of the former Northfield Road
surgery premises. This would enable to Council to
facilitate the provision of a “community hub” facility for
voluntary and community organisations providing
services to the local population in and around North
Walsham in conjunction with the North Norfolk
Community Transport Association; pending preparation
of a detailed business case and report for discussion /
approval by Cabinet at its September meeting.
The report proposes that the Council registers its
interest in purchasing the former Northfield Road
surgery premises in North Walsham with NHS England
Property Services and seeks to develop a detailed
business case so as to inform the basis of an offer for
the premises, a decision in respect of which would be
agreed at the September meeting of Cabinet.
Recommendations:
Cabinet
Decision
That Cabinet agrees:1) that the District Council registers its interest with
NHS England Property Services in purchasing the
freehold of the former Northfield Road surgery
premises in North Walsham by 9th July 2015;
2) that the Council seeks to develop a detailed
business case in conjunction with North Norfolk
Community Transport Association regarding the
future development of the premises as a community
hub facility for voluntary and community
organisations providing services to the local
community in North Walsham. This report to be
prepared over the period to end of August in order
to inform a further report to Cabinet in September.
Cabinet member(s):
Ward member(s)
Contact Officer
Telephone
Email
16.
Councillor J Rest
All
Steve Blatch
01263 516232
steve.blatch@north-norfolk.gov.uk
COMPULSORY PURCHASE OF 33 OAK STREET FAKENHAM – LONG TERM
EMPTY PROPERTY
(page 148)
(Exempt Appendix 2 – p)
** EXEMPT APPENDIX ** NOT FOR PUBLICATION – BY VIRTUE OF PARAGRAPHs 1, 2 & 3
OF PART 1 OF SCHEDULE 12A (AS AMENDED) OF THE LOCAL GOVERNMENT ACT 1972
Summary:
This report makes the case for compulsory purchase of
the above property, which has been empty in excess of 7
years.
Options
This property has been empty for a considerable period.
Various methods of improving the property and/or bringing
the property back into use have been explored (see
accompanying Exempt Enforcement Board Briefing), to no
avail. The owners continue to show no willingness to bring
the property back into use and without intervention by the
Council the property is unlikely to be returned to use in the
near future.
The local Methodist Church has expressed some interest
in the property but of late that interest has waned. The
property is externally attractive and should the church not
pursue their interest officers consider that it presents a
promising development opportunity for investors.
This report proposes that the Council applies to the
Secretary of State for a Compulsory Purchase Order
because without such an order the property is unlikely to
be voluntarily returned to use by the owners in the near
future.
Prior to seeking an order, the Council would be expected
to have attempted to reach a voluntary agreement for sale
with the current owners, which would be based on an
independent market valuation.
It may be possible to enter into an arrangement with a
purchaser for a back to back sale following compulsory
purchase. If not, then once acquired, the property would
be sold on the open market by the method likely to attract
greatest interest from potential developers.
Recommendations:
Cabinet
Decision
1. That officers are authorised to seek a voluntary
agreement from the owners of 33 Oak Street,
Fakenham, to sell the property to the Council stating
clear timescales for the owners to respond and to
complete the sale.
2. If no such agreement is reached, that officers are
authorised to proceed with an application for a
Compulsory Purchase Order on the property from the
Secretary of State.
3. That officers are authorised to take necessary steps for
the acquired property to be sold on at the earliest
opportunity with binding conditions that will make
clear the Council’s expectation for the property be
returned to use as soon as realistically achievable.
4. That the purchase will be funded from capital
resources from which virement of the necessary funds
is authorised.
5. To cap the CPO on costs at the upper limit identified in
the accompanying confidential briefing paper.
Reasons for
Recommendations:
1. There is an expectation by the Secretary of State that
Councils will seek to reach voluntary agreement on
purchase prior to a Compulsory Purchase being
authorised.
2. To enable the property to be brought back into use, thus
reducing the number of long-term empty properties in the
area and increasing housing provision.
3. As for 2 above.
4. To make the necessary financial provision for purchase
5. To ensure CPO remains a cost effective option.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report and which do not contain exempt information)
North Norfolk Empty Homes Policy
Section 17 Housing Act 1985
Cabinet member(s):
Ward member(s)
Contact Officer
Telephone
Email
17.
Cllrs J Oliver & J Rest
Lancaster (South and North)
Will Abë
01263 516080
Will.abe@north-norfolk.gov.uk
EXCLUSION OF PRESS AND PUBLIC
To pass the following resolution:
“That under Section 100A(4) of the Local Government Act 1972 the press and public be
excluded from the meeting for the following item of business on the grounds that they
involve the likely disclosure of exempt information as defined in paragraphs _ of Part I of
Schedule 12A (as amended) to the Act.”
18.
PRIVATE BUSINESS
Agenda Item 2__
CABINET
Minutes of the meeting of the Cabinet held on Monday 06 July 2015 at the Council
Offices, Holt Road, Cromer at 10.00am.
Mrs S Arnold
Mr N Dixon
Mrs A Fitch-Tillett
Mr T FitzPatrick (Chairman)
Members Present:
Also attending:
Officers in
Attendance:
15.
Mrs A Claussen-Reynolds
Mr P W High
Mr R Reynolds
Mr W Northam
Mrs J Oliver
Miss B Palmer
Mr J Rest
Mr E Seward
Mr R Shepherd
Mr B Smith
The Chief Executive, the Corporate Directors, the Head of Finance,
the Head of Assets and Leisure, the Estates and Valuation Manager,
the Communications Manager and the Democratic Services Team
Leader
APOLOGIES FOR ABSENCE
None
16.
MINUTES
The minutes of the meeting held on 8th June 2015 were approved as a correct record
and signed by the Chairman
17.
PUBLIC QUESTIONS
None received
18.
ITEMS OF URGENT BUSINESS
None
19.
DECLARATIONS OF INTEREST
None
20.
MEMBER QUESTIONS
The Leader confirmed that Members could ask questions as each item arose.
Cabinet
1 12
08 June 2015
21.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR
RECONSIDERATION
None
22.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE
None
23.
COUNCIL TAX SUPPORT WORKING PARTY
1.1
Mr W Northam, Portfolio Holder for Revenues and Benefits introduced this item. He
explained that the Council had introduced a council tax support scheme in 2013/14
which had met the government’s default criteria and therefore was eligible for
transitional funding. The scheme in effect reduced Council Tax Support by 8.5% for
working age, which essentially meant that those of a working age depending on other
criteria would be required to pay 8.5% of the Council Tax liability, i.e. a maximum
discount of 91.5%. The initial scheme had been extended for 2014/15 and
subsequently for 2015/16. Pensioners as per the prescribed protection could receive
a maximum of 100% discount.
Mr Northam informed Members that any changes to the scheme would require the
Council to go out to consultation. The Council Tax Support Working Party had
discussed the various options at length but felt that it would be fairer on residents to
keep the current scheme. It was agreed that the scheme should be reviewed again a
year.
RESOLVED that
The Council’s council tax support scheme should remain unchanged for 2016/17.
Reasons for the decision:
To minimise the financial impact on residents.
24.
PLANNING POLICY AND BUILT HERITAGE WORKING PARTY
Mrs S Arnold, Portfolio Holder for Planning introduced this item. She explained that
the Council already had a Local Development Scheme in place and the time had
come to review it. With reference to housing land supply, Mrs Arnold said that it was
very important for the Council to have a five year supply of residential housing land in
place.
RESOLVED
1) To approve the publication of the Local Development Scheme (LDS) as the
timetable for production of a new Local Plan for the district as soon as reasonably
practicable following authorisation by Cabinet, but in any case having effect from the
3rd August 2015.
2) To approve the publication of the Regulation 18 Notification document as the
scope of the emerging Local Plan for North Norfolk and to authorise the formal
Cabinet
2 13
08 June 2015
notification of all those specified in the regulations, and to invite representations on
the scope of the new local plan for a period of not less than 8 weeks commencing on
the 17th August 2015.
3) To approve the publication of the Statement of Community Involvement (SCI),
and to authorise a period of consultation of not less than 8 weeks commencing on
the 17th August 2015.
4)
25.
That the Land Supply Statement is published,
BUSINESS EFFICIENCY AND DIGITAL TRANSFORMATION PROGRAMME
UPDATE
The Leader and Portfolio Holder for Business Transformation, Mr T FitzPatrick,
introduced this item. He said that the report provided the third six monthly update on
progress within the Business Efficiency and Digital Transformation Programme
(BTP). He explained that the IT infrastructure improvement work required in the
programme continued to progress well. The Business Process Review (BPR) of the
Planning Service was underway and would be complete by the end of July. This
would be followed by the development of a service improvement plan
It was proposed by Mr W Northam, seconded by Mrs A Fitch-Tillett.
RESOLVED to recommend to Council:
That the Treasury Management Annual Report and Prudential Indicators for 2014/15
are approved.
Reasons for the decision:
Approval by Council demonstrates compliance with the required Codes.
26.
ANNUAL REPORT 2014/15
The Leader introduced this item. He said that the report outlined the key elements of
the Annual Report 2014/15 which would be published by July 2015. The Annual
report presented the delivery of the Annual Action Plan 2014/15 and showed
achievements against targets. The Deputy Leader said that she was very proud of
the Council’s achievements over the previous year.
It was proposed by Mr T FitzPatrick, seconded by Mrs A Fitch-Tillett and
RESOLVED
1) To note the contents of this report.
2) To give authority to the Leader of the Council and the Chief Executive to approve
the final public version of the report.
3) To give authority to the Leader of the Council and the Chief Executive to approve
the communications plan for the Annual Report 2014/15.
Reason for the decision:
Cabinet
3 14
08 June 2015
To comply with the provisions of the Council Performance Management Framework
and local government best practice.
27.
TAXI FEES
Mrs A Fitch-Tillett, Portfolio Holder for Environmental Services introduced this item in
the absence of Mrs J Oliver, Portfolio Holder for Licensing. She explained that the
report outlined the change in fees to the Hackney Carriage and Private Hire Vehicle
application fee due to renewal in the taxi test station contract. The change had been
agreed by the Chief Executive under delegated authority during the election period
due to the contract end date falling in a period when Cabinet was not due to meet.
As a result of the changes, the vehicle test fee would be removed from the hackney
carriage and private hire vehicle application fee and for garages to charge the
customer directly.
It was proposed by Mrs A Fitch-Tillett, seconded by Mr N Dixon and
RESOLVED:
To confirm the decision made under delegated authority by the Chief Executive
during the election period.
To remove the vehicle taxi test fee from the hackney carriage and private hire vehicle
application fee and for the garages to charge the customer directly.
Reasons for the decision:
To agree the change to the published fee for the hackney carriage or private hire
vehicle application in accordance with the Councils required process.
PROPOSED CROMER COMMUNITY SPORTS PITCH FACILITY – SUMMARY OF
CONSULTATION RESPONSES
28.
The Leader introduced this item. He explained that the report summarised the
comments received from the recent public consultation on the potential of four shortlisted sites adjoining the boundary of Cromer to accommodate a new community
sports pitch facility. The results indicated that there was support for the new facility
being accommodated on the former Golf Practice Ground site, off Overstrand Road.
The Deputy Leader added that Mr J Lee, local member and former Cabinet Member
would like to pass on his thanks to Members and Officers for progressing this issue
and he also wished to indicate his support for the proposal.
It was proposed by Mr T FitzPatrick, seconded by Miss B Palmer and
RESOLVED:
1) That Cabinet notes the comments received through the public consultation
process on the four shortlisted sites identified for consideration in accommodating
the proposed Cromer community sports pitch facility; and
2) The Cabinet authorises officers to open discussions with the owner of the former
golf practice ground site, off Overstrand Road regarding its possible acquisition to
accommodate the proposed community sports pitch facility
Cabinet
4 15
08 June 2015
Reasons for the decision:
To progress the acquisition of a site for the new community sports pitch facility.
The Meeting closed at 10.21 am
_______________
Chairman
Cabinet
5 16
08 June 2015
Agenda Item No____9________
BUDGET MONITORING REPORT 2015/16 – PERIOD 4
Summary:
This report summarises the budget monitoring position
for the revenue account and capital programme to the
end of July 2015.
Options considered:
Not applicable
Conclusions:
The overall position at the end of July 2015 shows an
under spend of £175,136 to date for the current financial
year on the revenue account, this is currently expected
to deliver a full year variance of £115,000.
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and
the current budget monitoring position;
2) Approve the additional budget of £20,000 in
respect of 4a Market Street as referred to
within the report.
Reasons for
Recommendations:
To update Members on the current budget monitoring
position for the Council.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
System budget monitoring reports
Cabinet Member(s)
Ward(s) affected
Cllr Wyndham Northam
Contact Officer, telephone number and email: Karen Sly, 01263 516243,
Karen.sly@north-norfolk.gov.uk
1.
Introduction
1.1.
This report compares the actual expenditure and income position at the end
of July 2015 to the Updated budget for 2015/16. The Original Base Budget as
agreed by Full Council in February 2015 has now been updated for the
approved budget roll forward requests as reported in the 2014/15 Outturn
report in June 2015 where the spend is committed for 2015/16.
1.2
The base budget for 2015/16 included savings and additional income totalling
£222,000 to be delivered in the year. Section 3.1 of this report includes the
latest position on both of these areas
17
2.
Budget Monitoring Position – Revenue Services
2.1
The General Fund Summary at Appendix A shows the high level budget
monitoring position at 31st July 2015 which shows a year to date variance of
£175,136 underspend. Of the underspend £187,993 is in relation to the
service variances and £12,857 is in relation to the funding Scheme compared
to the profiled budget. Details of these variances are included within section
2.7. Appendix B provides further details of the individual service variances.
2.2
Variances are reported against the updated budget in Appendix A. Any
budgets and reserves affected will be updated accordingly.
2.3
The following table shows the over/under spend to date for the more
significant variances this is compared to the updated budget.
Table 1 – Service Variances
Over/ (Under)
Spend to Date
against
Updated
Budget
£
Assets and Leisure
Car Parking – The favourable variance to the end of
period 4 largely reflects income from pay and display
ticket sales above the profiled budget. As this service
is demand led and seasonally influenced the level of
income will continue to be closely monitored. For the
current time a full year variance of £30,000 is currently
forecast.
Sports Centres – The underspend to date is mainly
due to invoices not yet being received for the hire of
the facilities.
Investment Properties – The overspend showing to
date represents outstanding insurance claims which
are still to be finalised.
Community, Economic Development and Coast
Community and Localism – The variance reflects prior
year grants which have been allocated but the funding
has not yet been drawn down.
Customer Services
IT Support Services – of the variance to the end of
period 4 £21,000 represents an underspend on
employee expenditure due to a vacant post which is
expected to be utilised in the year. Of the remaining
variance £48,400 relates to expenditure not yet
incurred on computer related expenditure including
software licences and consumables which is currently
planned to be spent in the year.
Development Management
Development Management – The favourable variance
showing at the end of period 4 reflects income
received compared to the profiled budget. The overall
position continues to be monitored and some of the
income will be required for the service restructurings.
18
Estimated
Full Year
Variance
Against
Updated Budget
£
(79,771)
(30,000)
(26,388)
0
28,920
0
(67,153)
(85,963)
(114,662)
Table 1 – Service Variances
Over/ (Under)
Spend to Date
against
Updated
Budget
£
(33,357)
Estimated
Full Year
Variance
Against
Updated Budget
£
(48,232)
(50,000)
(26,595)
0
(31,361)
0
Benefits and Revenue Management – Employee
savings due to a vacant post for which there is
expected to be a full year saving.
(27,512)
(35,000)
Corporate Finance – Employee savings due to a
vacant post pending further review of options to fill the
post.
(17,053)
Corporate and Democratic Core – The variance to
date includes some outstanding provisions from
2014/15 for which the invoices have not yet been
received.
(45,455)
Building Control – Of variance at the end of period 4,
£13,000 is due to the trainee post which has only
recently been appointed to, the remainder relates to
income received above the level budgeted. No full
year variance is currently shown as this will be
allocated to the reserve in line with the ring-fencing of
surpluses for the service.
Property Information – The base budget allowed for
the transfer of the land charges service to the Land
Registry during the year. The timescales for the
national project have now slipped for which there will
be a resulting full year effect. A variance for year of
£50,000 has currently been identified, but the overall
service impact will be reviewed.
Environmental Health
Waste Collection and Disposal – Recent audits show
that the total waste reject figure is 11.86%. This
equates to a full year cost of £45,000 which can be
met from within the service.
Financial Services
Benefits – The variance to date is mainly due to
employee vacancies within the team of which three
posts have now been appointed to.
Organisational Development
Insurance and Risk Management - The underspend is
due to invoices not yet being received for insurance
claims and tender work undertaken in 2014/15.
Registration Services – The variance to the end of
period 4 reflects the costs of the May elections for
which the claims for reimbursement at yet to be made.
TOTALS
3
(15,819)
158,091
0
(449,287)
(115,000)
Budget Monitoring Position – Savings and Additional Income
19
3.1
The budget for 2015/16 included savings and additional income totalling
£222,000 within the service areas The detail for each of the service savings is
included at Appendix D. Table 2 below summaries the current position for
each service heading.
Table 2 – Savings and Additional
Income 2015/16
Corporate Savings
101,000
2015/16
Movement
from the
Base
Budget at
P4
101,000
0
2015/16
Updated
Budget
£
Finance
96,000
96,000
0
Environmental Health
25,000
25,000
0
222,000
222,000
0
Total
4
2015/16
Base
Budget
£
Non Service Variances
Investment Interest – to Period 4 2015/16
4.1
The interest budget for 2015/16 anticipates that a total of £430,610 will be
earned from treasury investments and loan interest. Overall an average
balance of £19.6m is assumed, at an average interest rate of 2.2%.
4.2
At the end of period 4, a total of £164,139 had been received in interest,
resulting in a surplus against the year to date budget of £19,951. The rate of
interest achieved on investments was 1.6% from an average balance
available of £29.1m.
4.3
The LAMIT pooled property fund continues to perform well and returned
income of 1.45% in the first quarter of the year. Investment balances remain
higher than budget and consequently the opportunity was taken to make
further investments in pooled funds. The most appropriate funds were
selected in consultation with the Council’s treasury advisers, Arlingclose, and
£3m was invested in the Royal London cash Plus Fund and £3m in the
Payden & Rygel Sterling Reserve Fund.
4.4
The Royal London fund is rated AAA and offers the opportunity for enhanced
returns over the liquidity money market funds which the council currently
uses. The fund manager aims to achieve this through a diversified portfolio of
cash instruments and short-dated fixed income assets. The sum invested
can be withdrawn with 2 days’ notice if necessary, and income earned is
distributed quarterly. The fund has a performance benchmark of 7 day LIBID
+0.75% before fees. The Payden fund operates in a similar way and so far an
average of 0.85% is anticipated to be earned from these investments.
4.5
The total return which will be achieved in the year depends on a number of
factors including the timing of the loans to Broadland Housing Association
and the performance of the recent investments in the pooled funds and no
change to the interest budget is being proposed at this stage. Alternative
investments opportunities will again be considered as part of the mid-year
update to the strategy.
Retained Business Rates
20
4.6
The 2014/15 outturn position highlighted a favourable variance in relation to
the local retention of business rates which allowed for a transfer to the
earmarked reserve. Further details are included in the update to the financial
strategy which is included on the September Cabinet Agenda. Part of the
reason for the favourable variance was in relation to additional section 31
grants received above the level budgeted. The operation of the business
rates retention scheme means that any deficit on the collection fund for
business rates in the year would need to be taken account in future years
when determining the shares of the business rates to be allocated (between
the district, County and Central Government), the earmarked reserve has
been established to mitigate any significant impact on the in-year budget of
surpluses and deficit to avoid significant fluctuations year on year.
4.7
Currently no variance is forecast on the current years position although the
position will be monitored over the coming months and ahead of the
submission of the government returns.
5.1
Budget Monitoring Position – Summary
5.2
The following table provides a summary of the full year projections for the
service areas along with an updated use of reserves figure where applicable.
Table 3 - Summary of Full Year Effects 2015/16
Service Areas (Table 1)
Treasury Management
Total
Estimated
Movement
From Original
Base
£
(115,000)
0
(115,000)
6
Budget Monitoring Position – Capital
6.1
Members were provided with an updated capital programme for both the
current and future years as part of the 2014/15 Outturn Report to Cabinet in
June 2015. Since this time there have been three amendments to the
programme for the current financial year, which are outlined below.
6.2
Storm Surge (Coastal) – The Storm Surge budget previously totalled
£1,041,000, with all funding identified as coming from Environment Agency
grant. In addition to this a further £135,000 has been allocated to the scheme
from the Council’s Capital Projects Reserve, to reflect that some works
previously identified as revenue will be required to be capitalised during the
current financial year. This change has been reflected within the Capital
Programme identified in Appendix ___.
6.3
Web Infrastructure – In January 2015, Cabinet approved the allocation of a
further £82,000 from the overall budget allocation for the Business
21
Transformation Scheme. Of this total, £34,000 was identified as being
required to fund capital expenditure in relation to the Web Inftrastructure
scheme. As there was an existing budget of £37,500, the additional allocation
has taken the overall budget for the scheme up to £71,500, which has been
reflected in the updated budget within the Capital Programme.
6.4
Environmental Health IT System Procurement – In the Cabinet report for July
2015, approval was given for the inclusion of a capital budget of £150,000 for
the purchase of a new Environmental Health IT System following the
expiration of the existing contract. The system will be used extensively to
drive efficiency and reduce reliance on paper files within the Environmental
Health sections. The budget has therefore been included within the Capital
Programme for 2015/16, to be funded from capital receipts.
6.5
In addition to these amendments approval is also sought for an amendment to
the North Walsham Regeneration Scheme capital budget. At the current time
the budget available in year is £63,116, but an additional budgetary
requirement of £20,000 has been identified. This scheme incorporated the
purchase of 4a Market Street in North Walsham. The eventual purchase
price for the site was slightly higher than originally anticipated following the
independent valuation assessment. Further to this, as the site is now in the
ownership of the Council, there is a requirement to make landscaping
improvements. As the site is in a Conservation area, and following initial
stakeholder consultation and discussions with the portfolio holder, it is felt that
it would be best to have a York stone finish on the site, in keeping with the
existing town centre street scheme.
7
Conclusion
7.1
The revenue budget is showing an estimated full year under spend for the
current financial year of £115,000. The overall financial position continues to
be closely monitored and it is anticipated that the overall budget for the
current year will be achieved.
8
Financial Implications and Risks
8.1
The detail within section 2 of the report highlights the more significant
variances including those that are estimated to result in a full year impact.
8.2
The Original base budget for 2015/16 included service savings and additional
income totalling £222,000, these are still on target to be achieved. The
progress in achieving these is being monitored as part of the overall budget
monitoring process and where applicable corrective action will be identified
and implemented to ensure the overall budget remains achievable.
8.3
The estimated outturn shown in Table 1 will continue to be monitored during
the year and where applicable will be transferred to reserves.
9
Sustainability - None as a direct consequence from this report.
10
Equality and Diversity - None as a direct consequence from this report.
22
11
Section 17 Crime and Disorder considerations - None as a direct
consequence from this report.
23
Appendix A
General Fund Summary Report for Period 4 Year 2015/16
Full Year Budget
£
Net Cost Of Services
Assets & Leisure
Clt / Corporate
Customer Services & Ict
Community, Econ Dev & Coast
Organisational Development
Environmental Health
Finance
Planning
YTD Budget
£
Total
Actuals YTD YTD Variance Commitments
£
£
£
Remaining
Budget
£
2,229,553
0
612,761
5,676,831
948,221
3,867,714
3,044,050
1,446,866
698,349
38,516
224,024
561,170
391,450
229,640
1,209,258
418,656
623,158
57,940
104,509
458,346
540,622
191,658
1,406,996
199,841
(75,191)
19,424
(119,515)
(102,824)
149,172
(37,982)
197,738
(218,815)
1,782,995
26,262
125,772
237,069
26,398
2,742,430
194,933
80,258
(176,600)
(84,202)
382,480
4,981,416
381,201
933,626
1,442,121
1,166,767
Net Cost Of Services
17,825,996
3,771,063
3,583,070
(187,993)
5,216,117
9,026,809
Non Service Expenditure/Income
Precepts Of Parish Councils
Capital Charges
Interest Receivable
External Interest Paid
Revenue Financing For Capital
Retirement Benefits
Contributions To/From Reserves
1,760,520
(5,630,696)
(426,390)
0
90,800
289,815
424,608
880,275
(698,916)
(144,188)
0
0
0
0
880,275
(698,916)
(164,139)
23
0
0
0
0
0
(19,951)
23
0
0
0
0
0
0
0
0
0
0
880,245
(4,931,780)
(262,251)
(23)
90,800
289,815
424,608
Non Service Expenditure/Income
(3,491,343)
37,171
17,243
(19,928)
0
(3,508,586)
(1,760,520)
(5,307,073)
(3,121,466)
(2,403,933)
(57,912)
(1,683,749)
(14,334,653)
(616,183)
(1,857,477)
(1,187,759)
(1,238,338)
(23,164)
(846,642)
(5,769,563)
(616,183)
(1,857,477)
(1,154,947)
(1,238,301)
(23,228)
(846,642)
(5,736,778)
0
0
32,812
37
(64)
0
32,785
0
0
0
0
0
0
0
(1,144,337)
(3,449,596)
(1,966,519)
(1,165,632)
(34,684)
(837,107)
(8,597,875)
0
(1,961,329)
(2,136,465)
(175,136)
5,216,117
(3,079,652)
Income
Council Tax Payers - Parish
Council Tax Payers - District
Retained Business Rates
Central Government Grants - Revenue Support Grant
Central Government Grants - Council Tax Freeze Grant
Central Government Grants - New Homes Bonus
Income
Surplus / Deficit
24
Appendix B
Service Area Summaries P4 2015/16
Assets & Leisure
Service
Car Parking
Markets
Industrial Estates
Surveyors Allotments
Handy Man
Parklands
Administration Buildings Svs
Property Services
Parks & Open Spaces
Foreshore
Community Centres
Sports Centres
Leisure Complexes
Other Sports
Recreation Grounds
Pier Pavilion
Foreshore (Community)
Woodlands Management
Cromer Pier
Public Conveniences
Investment Properties
Leisure
Cctv
Total Assets and Leisure
Corporate
Full Year Budget YTD Budget
£
£
(1,209,835)
(465,484)
66,301
(19,407)
(15,683)
(15,610)
3,320
1,108
(5,223)
7,164
5,399
(25,738)
107,490
102,524
0
9,607
471,746
137,256
193,832
68,780
20,396
6,744
291,834
75,628
650,005
192,505
99,721
60,144
10,389
2,769
103,300
68,847
400,159
176,407
188,742
62,118
70,949
34,646
669,317
235,763
95,726
(21,322)
0
12
11,668
3,888
2,229,553
Full Year Budget
£
698,349
YTD Budget
£
YTD Actuals YTD Variance Commitments Budget Remaining
£
£
£
£
(545,255)
(79,771)
300,342
(964,922)
(17,228)
2,179
20,759
62,771
(1,813)
13,797
4,838
(18,708)
1,378
270
0
1,942
7,135
(29)
0
(12,358)
(25,252)
486
1,047
29,604
114,620
12,096
174,567
(181,697)
6,923
(2,684)
19,114
(26,037)
129,801
(7,455)
280,522
61,423
64,396
(4,384)
11,595
117,841
4,917
(1,827)
483
14,996
49,240
(26,388)
43,684
198,910
182,470
(10,035)
212,810
254,725
66,597
6,453
43,391
(10,267)
2,346
(423)
6,305
1,738
67,530
(1,317)
151,667
(115,897)
172,682
(3,725)
198,568
28,909
67,339
5,221
69,444
51,959
31,707
(2,939)
8,342
30,900
232,433
(3,330)
200,506
236,378
7,598
28,920
31,479
56,649
(294)
(306)
3,532
(3,238)
3,888
0
0
7,780
623,158
YTD Actuals
£
(75,191)
1,782,995
(176,600)
YTD Variance Commitments Budget Remaining
£
£
£
Service
Corporate Leadership Team
Legal Services
0
0
0
38,516
(4,212)
62,152
(4,212)
23,636
3,360
22,903
852
(85,055)
Total Corporate
0
38,516
57,940
19,424
26,262
(84,202)
Community, Econ Dev & Coast
Full Year Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance Commitments Budget Remaining
£
£
£
Service
Health
Arts & Entertainments
Museums
General Economic Development
Tourism
Nnflag Project
Coast Protection
Pathfinder
Regeneration Management
Comm & Econ Dev Mgt
Housing (Health & Wellbeing)
Housing Strategy
Community And Localism
Coastal Management
0
112,981
20,000
418,648
124,278
0
1,123,600
0
0
0
256,784
3,482,844
137,696
0
0
40,228
0
139,560
48,717
0
371,796
0
16
0
72,104
18,613
(129,864)
0
(11,061)
42,640
0
139,375
45,317
(8,431)
372,612
62
(3,873)
1,184
65,463
16,373
(197,017)
(4,298)
(11,061)
2,412
0
(185)
(3,400)
(8,431)
816
62
(3,889)
1,184
(6,641)
(2,240)
(67,153)
(4,298)
0
512
0
63,343
20,588
2,567
119,474
0
150
0
0
0
10,000
150
11,061
69,829
20,000
215,930
58,374
5,864
631,515
(62)
3,723
(1,184)
191,321
3,466,471
324,713
4,148
Total Community Economic Development
5,676,831
561,170
458,346
(102,824)
216,783
5,001,702
Customer Services & Ict
Full Year Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance Commitments Budget Remaining
£
£
£
Service
It - Support Services
Tic'S
Homelessness
Customer Services Housing
Graphical Info System
Media & Communications
Customer Services - Corporate
0
244,510
368,251
0
0
0
0
3,332
89,622
122,752
12
8,290
8
8
(82,631)
77,621
132,567
(6,032)
5,423
(16,840)
(5,599)
(85,963)
(12,001)
9,815
(6,044)
(2,867)
(16,848)
(5,607)
59,716
16,941
24,081
0
3,250
12,330
9,454
22,915
149,948
211,603
6,032
(8,673)
4,510
(3,855)
Total Customer Services & ICT
612,761
224,024
104,509
(119,515)
125,772
382,480
Planning
Full Year Budget
£
Service
Development Management
Planning Policy
Conservation & Design & landscape
Major Developments
Building Control
Planning Support
Property Information
515,124
251,624
225,038
185,991
87,930
0
181,159
YTD Budget
£
171,716
93,220
71,016
61,996
29,312
8
(8,612)
YTD Actuals
£
YTD Variance Commitments Budget Remaining
£
£
£
57,054
76,417
67,914
57,594
(4,045)
1,751
(56,844)
(114,662)
(16,803)
(3,102)
(4,402)
(33,357)
1,743
(48,232)
25
7,624
450
2,250
745
768
1,540
66,881
450,446
174,757
154,874
127,652
91,207
(3,291)
171,122
Total Planning
1,446,866
418,656
199,841
(218,815)
80,258
1,166,767
Environmental Health
Full Year Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance Commitments Budget Remaining
£
£
£
Service
Commercial Services
Rural Sewerage Schemes
Travellers
Public Protection
Street Signage
Pest Control
Environmental Protection
Dog Control
Env Health - Service Mgmt
Waste Collection And Disposal
Cleansing
Environmental Strategy
Community Safety
Civil Contingencies
471,640
370,675
99,960
90,319
33,562
16,572
549,803
60,304
0
1,339,151
638,723
29,147
21,973
145,885
154,759
185,277
46,812
41,776
7,848
5,540
176,913
18,866
8
(595,060)
136,885
(5,950)
7,326
48,640
151,298
182,889
46,799
40,769
4,858
5,874
173,403
17,641
(2,408)
(621,655)
155,019
(9,204)
3,610
42,765
(3,461)
(2,388)
(13)
(1,007)
(2,990)
334
(3,510)
(1,225)
(2,416)
(26,595)
18,134
(3,254)
(3,716)
(5,875)
6,387
0
27,771
9,519
2,165
71
19,179
11,550
7,686
2,210,747
424,055
21,263
0
2,039
313,955
187,786
25,390
40,031
26,539
10,627
357,221
31,113
(5,278)
(249,941)
59,649
17,088
18,363
101,081
Total Environmental Health
3,867,714
229,640
191,658
(37,982)
2,742,430
933,626
Finance
Full Year Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance Commitments Budget Remaining
£
£
£
Service
Local Taxation
Benefits
Discrectionary Payments
Non Distributed Costs
Benefits & Revenues Mgmt
Corporate Finance
Internal Audit
Central Costs
Corporate & Democratic Core
549,929
1,030,227
95,051
290
0
0
0
0
1,368,553
235,752
481,584
47,096
67,272
0
0
(31,332)
8
418,262
243,169
450,223
46,942
66,747
(27,512)
(17,053)
(41,443)
394
372,807
7,417
(31,361)
(154)
(525)
(27,512)
(17,053)
(10,111)
386
(45,455)
17,944
13,948
0
0
0
11,067
89,661
0
62,313
288,816
566,056
48,109
(66,457)
27,512
5,986
(48,218)
(394)
933,433
Total Finance
3,044,050
1,209,258
1,406,996
197,738
194,933
1,442,121
Organisational Development
Human Resources & Payroll
Insurance & Risk Management
Policy & Performance Mgt
Registration Services
Members Services
Total Organisational Development
Total Net Cost of Services
Full Year Budget YTD Budget
£
£
0
3,516
0
10,334
0
(8)
403,722
196,096
544,499
181,512
YTD Actuals YTD Variance Commitments Budget Remaining
£
£
£
£
17,391
13,875
4,705
(22,096)
(5,485)
(15,819)
0
5,485
(4,098)
(4,090)
0
4,098
354,187
158,091
9,677
39,858
178,627
(2,885)
12,016
353,856
948,221
391,450
540,622
149,172
26,398
381,201
17,825,996
3,771,063
3,583,070
(187,993)
5,195,832
9,047,094
26
PROPOSED SAVINGS 2015/16 ONWARDS
Service
Savings Title
Workstream
(where
applicable)
Brief Outline of Saving/Additional Income (where applicable)
Appendix C
Saving(S)
/Income (I)
2015/16
Savings
/Income
2015/16
Period 4
Update
£
£
CORPORATE SAVINGS
Various
Overtime
Other
Efficiencies
Historically actual overtime incurred has exceeded the budget set. Additional
will be funded from underspends elsewhere in the service, for example from
vacant posts or one-off funding. Not all services budget separately budget for
overtime, but most will incur OT costs. The savings proposal proposes some
reduction to the overtime budget for 15/16 pending further detailed work of the
reasons for the level of overtime incurred and whether alternative process or
methods of working can be used. Where overtime is required for an
emergency, then this should be funded from the general reserve.
Various
Professional
Fees
Other
Efficiencies
A small number of professional fees budgets are allocated across services
which are not currently utilised, it is therefore proposed that these be removed.
S
10,000
10,000
Training
Other
Efficiencies
Following a review of all service training budgets along with the corporate
training budget it is proposed that a saving can be made across this area of
expenditure. This is an area that has underspent in previous years, also there
is inconsistency across services in relation to the training budget available. This
proposal has also reduces this disparity and also releases an ongoing saving
whilst still ensuring capacity within service and corporate training budgets.
S
19,000
19,000
Various
Travel
Other
Efficiencies
Travel costs for example lump sums and public transport costs are allocated
across a nnumber of services, following a review a number of small savings at
the cost centre levels have been identified and are being put forward for
consideration as a saving.
S
25,000
25,000
Legal
Additional
Income
Selling
Services
Additional income from the provision of legal services to another authority.
I
40,000
40,000
Other
Efficiencies
Within the service (including Revenues, Benefits and Accountancy ) there are
currently a number of vacant posts. It is proposed that four posts are removed
from the establishment. Further review will be carried out to ensure resources
are allocated accordingly across the service. In addition following a review of
the subsidy budgets it is possible to remove £20k from the ongoing budget.
S
96,000
96,000
Other
Efficiencies
The annual budget for recycling initiatives is historically underspend and is not
always required every year in full. It is proposed that the annual budget is
removed and initiatives are funded on a project basis moving forwards from the
general or earmarked reserves as applicable.
S
25,000
25,000
222,000
222,000
Various
S
7,000
7,000
FINANCE
Finance
Vacant Posts
and Subsidy
ENVIRONMENTAL HEALTH
Environmental
Health
Recycling
Initiatives
Sub Total
27
Appendix D
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P4
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Comments
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
Jobs and the Local Economy
North Norfolk Enterprise Innovation Centre
50,000
10,295
39,705
0
(39,705)
Rocket House
77,084
36,485
40,599
0
Public Conveniences (Plumbing and
Drainage)
15,000
12,303
2,697
Mundesley Road Car Park Resurfacing
70,000
615
North Norfolk Enterprise and Start Up
Grants
135,000
Car Park Refurbishment 2015/16
Public Convenience Water Heater
Improvements
This scheme is currently on
hold
0
0
0
(40,599)
0
0
0
466
(2,231)
0
0
0
69,385
32,838
(36,547)
0
0
0
35,454
99,546
37,802
(61,744)
0
0
0
53,108
0
53,108
0
(53,108)
0
0
0
10,000
0
10,000
0
(10,000)
0
0
0
410,192
95,152
315,040
71,106
(243,934)
0
0
0
Disabled Facilities Grants
Annual programme
0
594,970
116,568
(478,402)
499,277
1,054,890
0
Housing Associations
Annual programme
0
504,543
0
(504,543)
0
0
0
3,500,000
0
3,500,000
0
(3,500,000)
0
0
0
100,000
4,437
95,563
4,482
(91,081)
0
0
0
3,600,000
4,437
4,695,076
121,050
(4,574,026)
499,277
1,054,890
0
1,409,000
1,184,417
224,583
0
(224,583)
0
0
0
40,023
37,671
2,352
0
(2,352)
0
0
0
1,418,631
1,304,161
114,470
16,411
(98,059)
0
0
0
79,500
69,533
9,967
0
(9,967)
0
0
0
Housing and Infrastructure
Housing Loans to Registered Providers
Parkland Improvements
Payment of the loan is currently
on hold following delays in
planning permissions.
Coast, Countryside and Built Heritage
Gypsy and Traveller Short Stay Stopping
Facilities
Sheringham Beach Handrails
Cromer Pier Structural Works - Phase 2
Sheringham Promenade Lighting
28
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P4
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Comments
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
Cromer Pier and West Prom Refurbishment
Project
815,000
42,062
772,938
1,164
(771,774)
0
0
0
Refurbishment Works to the Seaside
Shelters
149,500
109,184
40,316
8,918
(31,398)
0
0
0
10,400,000
3,447,172
6,952,828
585,598
(6,367,230)
0
0
0
1,967,015
1,683,217
283,798
0
(283,798)
0
0
0
122,000
91,486
30,514
0
(30,514)
0
0
0
90,000
16,678
73,322
0
(73,322)
0
0
0
1,176,000
852,105
323,895
5,100
(318,795)
0
0
0
804,000
279,957
524,043
220
(523,823)
0
0
0
2,221,000
307
69,693
660
(69,033)
2,151,000
0
0
Sheringham Gangway
136,737
46,570
90,167
72,667
(17,500)
0
0
0
Repairs and Renewals Grants - Flood
Protection Works
368,294
368,294
0
235,273
235,273
0
0
0
Ostend Targeted Rock Placement and
Coastal Adaptation
55,000
0
55,000
220
(54,780)
0
0
0
Cromer Pier - External and Roofing
Improvements to Pavilion Theatre
20,000
0
0
0
0
0
20,000
0
21,271,700
9,532,814
9,567,886
926,232
(8,641,654)
2,151,000
20,000
0
197,000
732
196,268
0
(196,268)
This scheme is currently on
hold as the transfer of property
title to Cromer Town Council
did not take place.
0
0
0
No's 4 and 4a Market Street,
North Walsham have been
(17,786) purchased, and plans are being
drawn up for landscaping of the
area.
0
0
0
Cromer Coast Protection Scheme 982 and
SEA
Pathfinder Project
Cromer to Winterton Scheme
Coastal Erosion Assistance
Storm Surge
Sheringham West Prom
Mundesley - Refurbishment of Coastal
Defences
Grants have continued to be
paid in the current financial
year, with any expenditure to be
offset by DEFRA grant income
Localism
North Lodge Park
North Walsham Regeneration Schemes
(Including Market St North Walsham)
82,045
18,929
63,116
45,330
Victory Swim and Fitness Centre
54,370
12,535
41,835
3,816
(38,019)
0
0
0
100,000
86,190
13,810
8,440
(5,370)
0
0
0
Play Areas
29
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P4
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Comments
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
Splash Roof Repairs
73,630
9,563
64,067
0
(64,067)
0
0
0
Steelwork Protection to Victory Pool and
Fakenham Gym
27,500
33
14,967
0
(14,967)
0
12,500
0
Cabbell Park
64,000
7,915
56,085
45,673
(10,412)
0
0
0
178,500
0
178,500
0
(178,500)
0
0
0
Holt Country Park
12,500
0
12,500
0
(12,500)
0
0
0
Fakenham Gym
62,500
0
15,000
0
(15,000)
30,000
0
17,500
Splash Pool - Steelworks
35,000
0
0
0
0
0
35,000
0
887,045
135,897
656,148
103,259
(552,889)
30,000
47,500
17,500
Trade Waste Bins/ Waste Vehicle
272,700
254,666
18,034
0
(18,034)
0
0
0
Personal Computer Replacement Fund
205,583
162,603
42,980
0
(42,980)
0
0
0
Waste Management & Environmental Health
IT System
232,427
226,332
6,095
0
(6,095)
0
0
0
75,000
63,190
11,810
0
(11,810)
0
0
0
Procurement for Upgrade of Civica System
317,312
198,214
119,098
0
(119,098)
0
0
0
e-Financials Financial Management System
Software Upgrade
33,000
21,506
11,494
0
(11,494)
0
0
0
250,570
172,301
78,269
0
(78,269)
0
0
0
10,000
0
10,000
100
(9,900)
0
0
0
100,000
0
100,000
0
(100,000)
0
0
0
90,000
7,933
82,067
11,646
(70,421)
0
0
0
38,950
(31,903)
0
0
0
North Norfolk Railway
Delivering the Vision
Asset Management Computer System
Administrative Buildings
Cash Receipting System Upgrade
Planning System (Scanning of Old Files)
Telephony Procurement
This budget has been
increased by £34,000 to reflect
further draw down of monies
from the Business
Transformation budget.
Web Infrastructure Upgrade
71,500
647
70,853
New Print Solution - Multi Function Devices
60,000
53,599
6,401
0
(6,401)
0
0
0
100,000
100,000
0
0
0
0
0
0
Server Replacement
30
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P4
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
126,000
0
126,000
5,166
GIS / Web Based Mapping Solution
20,000
0
20,000
0
Recording and Audio Equipment
20,000
0
20,000
Upgrades to Accolade and Idox
25,000
0
Wheeled Bins (Kier)
66,750
Wheeled Bins
40,000
Fakenham Connect and Cromer Office Works - DWP
Comments
Updated
Updated
Budget 2016/17 Budget 2017/18
£
Tenders for the works at
(120,834) Fakenham Connect were due
back on the 7th August.
£
Updated
Budget in
Future Years
£
0
0
0
(20,000)
0
0
0
0
(20,000)
0
0
0
25,000
0
(25,000)
0
0
0
0
66,750
59,638
(7,112)
0
0
0
0
40,000
12,740
(27,260)
0
0
0
0
0
0
Following Cabinet approval at
their meeting in July 2015, this
budget has been included for
(150,000)
the procurement of a new
Environmental Health IT
system.
Environmental Health IT System
Procurement
150,000
0
150,000
0
Fakenham Connect Roof Works
30,000
0
20,000
0
(20,000)
10,000
0
0
Stonehill Way Fire and Security System
15,000
0
0
0
0
0
15,000
0
2,310,842
1,260,991
1,024,851
128,241
(896,610)
10,000
15,000
0
28,479,779
11,029,291
16,259,001
1,349,889
(14,909,112)
2,690,277
1,137,390
17,500
31
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P4
2015/16
£
£
£
£
32
Variance to
2015/16 Current
Budget
£
Comments
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
Cabinet 7 September 2015
Overview and Scrutiny 16 September 2015
Agenda Item No_____10_______
MANAGING PERFORMANCE QUARTER 1 2015/16
Summary:
The purpose of this report is to give a first quarter
progress report of the performance of the Council. More
specifically it reports delivery of the Annual Action Plan
2015/16 and achieving targets. It gives an overview,
identifies any issues that may affect delivery of the plan,
the action being taken to address these issues and
proposes any further action needed that requires
Cabinet approval.
Options considered:
Options considering action regarding performance are
presented separately, issue by issue, to the appropriate
Council Committee.
Conclusions:
1. The majority of the 55 activities in the Annual
Action Plan 2015/16 are on track (49).
Performance is being closely monitored,
particularly for the activities where issues or
problems have been identified (two). Some
activities have already been completed
successfully (two), one is on hold and one is not
started.
2. Of the 17 performance indicators where a target
has been set 11 are on or above target, two
close to target and four below target. Where
assessment against the same period last year is
possible (20 indicators), nine are improving, five
are static and six are worsening.
3. The delivery of the Annual Action Plan is
progressing according to plan but there are a
very few performance issues in achieving targets
and achieving improvement. The issues
involved, and action being taken in each case,
are detailed in the remainder of the document.
Recommendation:
That Cabinet notes this report, welcomes the
progress being made and endorses the actions laid
out in Appendix E being taken by management
where there are areas of concern.
Reasons for
Recommendations:
To ensure the objectives of the Council are achieved.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
33
Cabinet 7 September 2015
Overview and Scrutiny 16 September 2015
(Papers relied on to write the report, which do not contain exempt information and which are not
published elsewhere)
Cabinet Member(s)
Ward(s) affected
Tom FitzPatrick
All
Contact Officer, telephone number and email:
Helen Thomas, 01263 516214, Helen.thomas@north-norfolk.gov.uk
1.
Introduction
The purpose of the ‘Managing Performance Quarter 1 2015/16’ report is to
identify good practice and disseminate it, highlight any performance issues to
help the Council identify areas for discussion and take action to secure
improvement in the future where it is needed.
It is a key part of the Council’s Performance Management Framework.
2.
Content of the Report
The first quarter performance report shows progress against the Corporate
Plan 2012-2015 priorities together with any other relevant performance
achievements and issues.
Each priority has a strategic assessment of progress achieved during the
quarter in delivering the Annual Action Plan 2015/16 and achieving targets.
Performance information for each priority is broken into two sections: Strategic Overview including assessment of overall performance within each
priority, key achievements and issues
 Performance Indicators – progress reporting
In addition, detailed progress reports for each activity in the Annual Action
Plan 2015/16 are presented as Appendix 1 and a Development Mangment
Workload report is included as Appendix 2.
3.
Conclusion
The majority of the 55 activities in the Annual Action Plan 2015/16 are on
track (49). Performance is being closely monitored, particularly for the
activities where issues or problems have been identified (two). Some activities
have already been completed successfully (two), one is on hold and one is
not started.
Of the 17 performance indicators where a target has been set 11 are on or
above target, two close to target and four below target. Where assessment
against the same period last year is possible (20 indicators), nine are
improving, five are static and six are worsening.
34
Cabinet 7 September 2015
Overview and Scrutiny 16 September 2015
The delivery of the Annual Action Plan is progressing according to plan but
there are a very few performance issues in achieving targets and achieving
improvement. The issues involved, and action being taken in each case, are
detailed in the remainder of the document.
4.
Implications and Risks
Prompt action to deal with any performance issues identified by this report will
reduce the risk to delivery of the Annual Action Plan and the achievement of
the priorities in the Corporate Plan 2012-15. The recommendations of this
report outline the action being taken to reduce or remove the risk of not
delivering the Corporate Plan.
The Corporate Risk Register which includes the risk associated with nondelivery of the Corporate Plan is reviewed regularly by the Audit Committee
and the Performance and Risk Management Board.
5.
Financial Implications and Risks
Prompt action to deal with any performance issues identified by this report will
reduce the financial risk to the Council.
6.
Sustainability
There are no sustainability implications of this report.
7.
Equality and Diversity
There are no equality and diversity implications of this report.
8.
Section 17 Crime and Disorder considerations
There are no Section 17 Crime and Disorder implications of this report.
35
Appendix E
Managing
Performance
Quarter 1 2015/16
Version 1.0
Any queries please contact Policy and Performance Management Officer, Helen Thomas
Tel. 01263 516214
Managing Performance Quarter 1 2015-16 v1360
Page 1 of 41
Contents
Contents .................................................................................... 2
Introduction............................................................................... 3
Key............................................................................................. 3
Overview ................................................................................... 4
Jobs and the Local Economy .................................................. 5
Housing and Infrastructure ...................................................... 8
Coast, Countryside and Built Heritage ................................. 10
Localism .................................................................................. 17
Delivering the Vision .............................................................. 19
Appendix 1: Delivering the Annual Action Plan 2015/16 ..... 25
Jobs and the Local Economy ............................................................ 25
Housing and Infrastructure ................................................................ 29
Coast, Countryside and Built Heritage............................................... 31
Localism ............................................................................................ 34
Delivering the Vision .......................................................................... 36
Appendix 2: Development Management Workload .............. 39
Version Control....................................................................... 41
Managing Performance Quarter 1 2015-16 v1370
Page 2 of 41
Introduction
The quarterly performance report for Cabinet shows progress against the Corporate
Plan 2012-2015 Priorities, together with any other relevant performance achievements
and issues.
Each priority has a strategic assessment of progress achieved during the quarter in
delivering the Annual Action Plan 2015/16 and achieving targets.
Performance information for each priority is broken into two sections:


Summary, including assessment of overall performance within each priority
Performance Indicators – progress reporting
Progress in delivering each activity in the Annual Action Plan 2015/16 is reported in
Appendix 1.
The purpose of the report is to highlight any performance issues to help the Council
identify areas for discussion and take action to secure improvement in the future where
it is needed.
Signifies an action or target achieved that has an outcome that meets our
equalities objectives.
Key
NA = Not
applicable
Target achieved or exceeded
Improving compared to the same period
last year
Close to target
Close to the same period last year’s
result
Significantly below target
Significantly worse compared to the same
period last year
Indicators can be labelled as not applicable as this is important information for the Council
where the influence and actions of the Council may make improvements but there is not
sufficient control over the outcome to set a target
Managing Performance Quarter 1 2015-16 v1380
Page 3 of 41
Overview
1. The majority of the 55 activities in the Annual Action Plan 2015/16 are on track (49).
Performance is being closely monitored, particularly for the activities where issues or
problems have been identified (two). Some activities have already been completed
successfully (two), one is on hold and one is not started. See Chart 1 below.
2. Of the 17 performance indicators where a target has been set 11 are on or above target, two
close to target and four below target. Where assessment against the same period last year
is possible (20 indicators), nine are improving, five are static and six are worsening.
3. The delivery of the Annual Action Plan is progressing according to plan but there are a very
few performance issues in achieving targets and achieving improvement. The issues
involved, and action being taken in each case, are detailed in the remainder of the
document.
Activities
4%
2%2%
3%
Completed Successfully
On Track
Some Problems
Not Started
89%
On Hold
Chart 1 : Progress of the activities in the Annual Action Plan 2015/16
Managing Performance Quarter 1 2015-16 v1390
Page 4 of 41
Jobs and the Local Economy
Strategic Overview
There has been a considerable amount of activity against this priority. All actions are on track
(18 of 18). Performance against all of the four performance indicators are on or above target.
Performance against all but one of the performance indicators have improved since the same
period last year.
The Council has:
1. Successfully completed extensive Cromer pier repair works following the
storm surge. The official opening is expected during August
2. Supported a further 34 business start-ups, through the Enterprise north
Norfolk programme and a full programme of business training events is
planned up until December 2015.
3. Provided small grants to 42 businesses (since Jan 2015), totalling £78,255
4. Gained funding for key projects in the area, including: Egmere Business Park;
The Maltings at Wells-next-the-Sea; Cromer West Promenade; fishermen’s
beach access ramps and the development of a Deep History Coast project
5. Commissioned a ‘Business Growth and Investment Opportunities Strategy’
6. Assisted in attracting new business investment into the District, most
significantly the new user of the former Heinz site at Westwick
7. Established the Enabling Fund for projects that support the vitality of our
towns
8. This quarter eastlaw has recruited a Legal Intern post intended to be a
placement for a law student during the summer period
9. Held Planning Business Review Workshops the outcome of which will feed
into new ways of working designed to streamline our processes and improve
performance
10. Engaged in planning and preparation work for the Tour of Britain cycling race
which will take place in September 2015, with stage 7 starting in Fakenham
on Tuesday 8 September
11. On 7 July the Council sponsored an event at Paston College entitled Futures.
The event was targeting year 10 pupils and above and was attended by
colleges, universities and employers. The Growth Skills team, Learning for
Everyone, were present promoting the option of becoming an apprentice to
the 1,000 school children from across the District who attended.
12. The Council currently employs one apprentice and is advertising for two within
Revenues and Benefits. The Human Resources Department created a flier on
becoming an apprentice at the council.
Managing Performance Quarter 1 2015-16 v1400
Page 5 of 41
Issues and challenges
The Council plans to:
1. Develop a coherent marketing approach that builds on the investment strategy
and the Deep History Coast concept, to attract investment and appropriate
further development into the area
2. Develop appropriate projects that make the most of new European Union
funding programmes and other emerging funding streams (such as the Coastal
Communities Fund and European Maritime and Fisheries Fund (EMFF)) and
orienting these towards supporting our growth objectives for the area
Performance Indicators
Indicators and Measures
Number of businesses
assisted to retain jobs
and/or increase
employment each year
(monthly cumulative) (J
004)
Q1/13/14
Q1/14/15
Q1
15/16
Target
Q1
15/16
Result
2
43
9
12
Target
2015/16
36
This is a combination of following up businesses from the skills
survey and assistance to new and fledgling businesses.
Number of member
businesses of the
Destination Management
Organisation (DMO) for the
North Norfolk coast and
countryside (quarterly) (J
015)
152
149
80
188
250 by
December
2015
April saw the largest renewal activity for the DMO with 91 renewals
sent out to members. 90% of those members were retained, with
those not renewing were mainly due to retirement or selling of their
businesses. The acquisition of new members continues to grow, all
in-line with the new rate card for membership (i.e., a new simplified
two-tier structure). Member numbers are currently at 188, and they
are awaiting paperwork or confirmation from an additional 15
businesses. If all successful, the total will be 203 members which will
make Visit North Norfolk (VNN) have more members than both
VisitNorwich and The Suffolk Coast, which have been established
significantly longer than VNN.
Number of new business
start-ups supported by
Enterprise North Norfolk
12
11
Managing Performance Quarter 1 2015-16 v1410
12
50
34
Page 6 of 41
Indicators and Measures
Q1/13/14
Q1/14/15
Q1
15/16
Target
Q1
15/16
Result
Target
2015/16
(quarterly cumulative) (ED
023)
The Enterprise North Norfolk (ENN) extended contract started and
ran from 1 January 2015 to 30 June 2015. The target was 35 for the
six months. 11 were achieved in the first quarter (NNDC Q4) and a
further 34 were achieved in the second quarter (NNDC Q1).
Therefore achieving 45 against a target of 35 for this contract period.
It has been agreed that the ENN contract will be extended for a
further six months.
Number of people
supported with Information,
Advice and Guidance (IAG)
(quarterly cumulative) (ED
025)
-
110
125
194
450
(annual)
We are about to launch our new on line webinar service, which will
hopefully absorb some of the ongoing demand for this service.
Managing Performance Quarter 1 2015-16 v1420
Page 7 of 41
Housing and Infrastructure
Strategic Overview
There has been a lot of activity against this priority and outcomes being delivered. Seven of the
eight activities are on track and one has not started. Performance against one of the two
indicators where an assessment against the same period last year is possible is improving and
the other is worsening.
The Council has:
1. Seen that affordable housing yield on development sites is steady and is
expected to continue in the near future
2. Developed a loan under the Local Investment Strategy which has led to the
development of a scheme to be submitted for planning soon
3. Developed Exception Housing Schemes with registered providers and local
communities (including a mixed affordable / market housing development)
4. eastlaw continues to play a pivotal role in the Council’s Enforcement Board
delivering empty homes back into use. We have also advised on the setting up
of Local Authority Trading Companies (LATCOs) and Registered Providers
(RPs) for market and affordable housing and advised on an £85m housing
development
Issues and challenges
The Council plans to:
1. Revise the Housing Strategy as a framework for the supply of sufficient housing
appropriate to the identified market demand and local need and to feed in to
the housing policies and land supply in the formulation of Local Plan
2. Standardise the approach to S106 agreements and review the Council’s
approach
3. Maintain the momentum in the supply of new affordable housing and in the
reduction in empty homes
Managing Performance Quarter 1 2015-16 v1430
Page 8 of 41
Performance Indicators
Indicators and
Measures
Number of long
term empty
homes (6
months or
more)
(monthly) (H
002)
Q1/13/14
-
Q1/14/15
Q1 15/16
Target
Q1 15/16
Result
-
518
612
Target
2015/16
-
Monitor
Class C total is 421 and the Levy total is 97 which give a slight increase in the
long term properties of 4 compared to last month. This increase is broken down
by an increase of 13 properties at Class C (empty 6-24 months) whilst the
properties at Levy stage have reduced by 9 (empty 2 years+).
The properties that have been reported as empty after 3 months receive an
empty property review and questionnaire to complete. This gives us information
as to what the owner's intention is regarding their property. Each month these
reviews are sent out and dealt with by the Revenue's Service and the Empty
Homes Manager. Where reviews are not completed or action not taken then
these are followed up on a regular basis.
Number of
affordable
homes built
(monthly
cumulative) (H
007)
41
9
N/A
0
-
Carry out
trend
analysis
The first affordable housing completions are expected in July, with 78
completions expected by the end of the financial year. The first 4 shared equity
dwellings to be sold are now under offer and will be counted as completions
when sold.
Managing Performance Quarter 1 2015-16 v1440
Page 9 of 41
Coast, Countryside and Built Heritage
Strategic Overview
Activities and outcomes are being delivered against this priority. Two of the eleven actions have
been successfully completed and a further eight are on track. One activity is having some
problems. Performance against four of the seven targeted performance indicators are on or
above target and three below target. Performance against one of the thirteen indicators where
an assessment against the same period last year is possible are improving, four are static and
three worsening.
The Council has:
1. Successfully retained Green Flag awards at all 3 sites including Holt Country
Park, Pretty Corner Woods in Sheringham and Sadler’s Wood in North
Walsham
2. Successfully retained Blue Flags at all 4 beaches including Sheringham,
Cromer, Sea Palling and Mundesley with Quality Coast awards for East Runton
and, for the first time, Wells
3. Continued progress towards the completion of the Cromer Coast Protection
Scheme, in a way that is sympathetic to local economic and community
requirements
4. Further developed the Scheme to refurbish the Sea Wall at Sheringham West
5. Further developed a partnership approach towards a scheme to plan for the
Bacton/ Walcott frontage, in conjunction with the operators of Bacton Gas
Terminal, the Environment Agency and other partners
6. Garnered widespread support for the Norfolk/ Suffolk coastal partnership
approach.
7. This quarter eastlaw has enforced against individuals to protect North Norfolk’s
environment, and quality of life for residents, successfully obtaining fines and
costs awards which deter repeated behaviour
8. Launched the Graham Allen Awards 2015
9. Carried out a public consultation on the potential of four short-listed sites
adjoining the boundary of Cromer to accommodate a new community sports
pitch facility
10. Opened a formal consultation to seek the public’s views regarding lifting the
open space restriction at Cabbell Park in Cromer
11. Won two Building Excellence awards for North Norfolk District Council at the
2015 East Anglia Local Authority Building Control (LABC) Building Excellence
awards held at St Andrew’s Hall, Norwich on Friday 26 June
Managing Performance Quarter 1 2015-16 v1450
Page 10 of 41
Issues and challenges
The council plans to:
1. Implement the partnership approach for Norfolk/ Suffolk maritime authorities and
develop ideas for the wider centre of excellence for coastal management
2. Bring the Bacton/ Walcott coastal scheme to fruition
3. The planning application workload has increased significantly. Comparison figures
show that, compared with the same time last year, the Council has received an
additional 62 applications, and major applications in particular have risen from 16
to 28 over this period. This has resulted in additional fee income in excess of
£100,000. However, this has resulted in a drop in our performance based on the
statutory determination times. Actions are in place to address this. However, this
has been impeded by difficulties in recruiting suitably qualified staff. Work is
underway as part of the Digital Transformation to review the process used in
planning. Once implemented the outcome of the work should be to increase our
capacity to deal with this increase in workload. More detailed analysis is shown in
Appendix 2
Performance Indicators
Indicators
and
Measures
Percentage
of planning
appeals
allowed
(monthly
cumulative)
(C 002)
Number of
planning
appeals
allowed
(monthly
cumulative)
(C 002a)
Q1/13/14
-
Q1/14/15
Q1
15/16
Target
Q1
15/16
Result
38.5%
38.5%
33.3%
Target
2015/16
Review and
report. Less
than 30%.
-
N/A
-
5.0
-
1.0
-
-
The number of appeals allowed has decreased in this first quarter.
The appeal decisions are reviewed on a regular basis by
Development Committee.
Managing Performance Quarter 1 2015-16 v1460
Page 11 of 41
Indicators
and
Measures
Percentage
of MAJOR
planning
applications
processed
within
thirteen
weeks
(monthly
cumulative)
(C 003)
Q1/13/14
Q1/14/15
Q1
15/16
Target
Q1
15/16
Result
50.00%
75.00%
80.00%
50.00%
Target
2015/16
80%
While still below target, there has been an improvement in our major
application performance in June. This highlights the need to review
our approach to S106 agreement which usually is the reason for the
delay.
Percentage
of MINOR
planning
applications
processed
within eight
weeks
(monthly
cumulative)
(C 004)
70%
34.68%
62.16%
70.00%
36.00%
We cleared a backlog of applications early in the quarter which has
had a negative impact on the cumulative figure for this quarter.
There are still vacant posts within the team, which makes it difficult
to maintain an improved performance level. This matter is currently
being addressed.
Percentage
of OTHER
planning
applications
processed
within eight
weeks
(monthly
cumulative)
(C 005)
52.86%
81.31%
70.00%
70%
61.21%
There are still vacant posts within the team, which makes it difficult
to maintain an improved performance level. This matter is currently
being addressed.
Managing Performance Quarter 1 2015-16 v1470
Page 12 of 41
Indicators
and
Measures
Percentage
of MAJOR
planning
applications
processed
within
thirteen
weeks over
the last 24
months
(monthly
cumulative)
(DM 005)
Q1/13/14
-
Q1/14/15
72.22%
Q1
15/16
Target
40.00%
Q1
15/16
Result
Target
2015/16
Target
threshold
revised by
Government
from 30% to
40% in June
2014.
73.86%
Although our major application performance has dropped this
quarter, it has not impacted on this indicator as it is measured over
a longer period. Our major application performance will be closely
monitored.
Percentage
of MAJOR
planning
applications
refused and
then
overturned
on appeal
over the last
24 months
(monthly
cumulative)
(DM 006)
Number of
MAJOR
planning
applications
refused and
then
overturned
on appeal
over the last
24 months
(monthly
cumulative)
(DM 006a)
-
-
1.39%
1
20.00%
1.14%
Target
threshold set
by
Government
at 30% and
confirmed by
the
Department
of
Communities
and Local
Government
at 20% in
June 2014.
NNDC target
20%.
4
1
Less than 5.
Managing Performance Quarter 1 2015-16 v1480
Page 13 of 41
Indicators
and
Measures
Q1/13/14
Q1/14/15
Q1
15/16
Target
Q1
15/16
Result
Target
2015/16
The percentage of major appeals allowed remains low and well
within the Government targets
Target
response
time to fly
tipping and
all other
pollution
complaints
(within 2
working
days)
(monthly
cumulative)
(C 007)
86.00%
88.00%
80.00%
80%
87.00%
The level of service over the quarter has remained consistent with a
high proportion of complaints being responded to within 2 working
days.
There is no significant difference in the response to the range of
pollution complaints included in this indicator.
Number of
pollution
enforcement
interventions
(quarterly
cumulative)
(C 008)
10
9
-
6
-
-
Review and
report.
Within the quarter there were six new pollution cases which were
investigated with a view to potential prosecution all were related to
fly tipping, one warning letter was sent. The other cases are still
pending further investigation/action.
In addition two further fly tipping cases and one dog fouling case
was completed during the quarter. One warning letter was sent and
one simple caution was issued. The other case relating to dog
fouling was closed with no evidence to proceed.
A further two simple cautions were issued for burning commercial
waste offences.
Managing Performance Quarter 1 2015-16 v1490
Page 14 of 41
Indicators
and
Measures
Number of
fixed penalty
notices
issued
(quarterly
cumulative)
(C 009)
Q1/13/14
Q1/14/15
2
0
Q1
15/16
Target
-
Q1
15/16
Result
0
Target
2015/16
-
-
Carry out
trend
analysis
The team continues to issue FPNs when incidents are witnessed.
Number of
defaults
issued to the
waste and
related
services
contractor
for
cleanliness
(monthly
cumulative)
(C 010)
10
52
-
17
-
-
Review and
report.
Defaults have been issued to the contractor either where they have
failed to respond to a rectification within the specified time or they
have not carried out an element of the service to the specified level.
Officers monitor trends in areas defaults are issued to ensure
prompt and appropriate interventions with the contractor.
Number of
rectifications
issued to the
waste and
related
services
contractor
for
cleanliness
(monthly
cumulative)
(ES 015)
50
80
-
63
-
-
No target.
Report to
Head of
Service and
Management
Team
The number of rectifications issued remains above target but is
improved on previous periods. Proactive monitoring of the contract
continues and rectifications issued where standards have slipped
below those expected. This improvement is in the context of an
increasing workload as the tourist season picks up.
Managing Performance Quarter 1 2015-16 v1500
Page 15 of 41
Managing Performance Quarter 1 2015-16 v1510
Page 16 of 41
Localism
Strategic Overview
There has been a considerable amount of activity against this priority. All six activities are on
track.
The Council has:
1. Held the Parliamentary, District and Parish Council elections on 7 May 2015
2. Continued successful administration of the Big Society Fund in support of a
wide range of community projects
3. Agreed the prospectus for the Enabling Fund to support projects for local towns
4. Continued to develop a joint commissioning approach with Norfolk County
Council for information, advice and guidance services in North Norfolk
5. Successfully delivered one hub in Holt, two more to be delivered by the end of
the year along with three clubs as part of the Sports Clubs and Hubs project
6. Held a ceremony, attended by more than 150 guests, at the Council’s Cromer
offices, to commemorate the centenary of World War 1 and unveil the 'Poppies
in Steel' commemorative sculpture
Issues and challenges
The Council plans to:
1. Commission and implement the funding support for the new model of
information advice and guidance
Managing Performance Quarter 1 2015-16 v1520
Page 17 of 41
Performance Indicators
Indicators and Measures
Q1/13/14
Q1/14/15
Q1
15/16
Target
Q1 15/16
Result
Target
2015/16
Number of grants awarded to
local communities from the Big
Society Fund (monthly
cumulative) (L 005)
0
11
N/A
5
-
-
Review
and
report
Amount of funding investment
in community projects (from the
Big Society Fund) (£) (monthly
cumulative) (L 006)
0
59,066
N/A
21,500
-
-
Review
and
report
Applications to be considered by the Big Society Fund Panel
June 2015.






Eight applications received requesting maximum funding
of £71,404
Two applications totalling £18,000 were ineligible to be
presented to the Panel
Six applications totalling £53,404 were presented to the
Panel
One application was deferred
Five applications were approved
Total funding awarded £21,500
Managing Performance Quarter 1 2015-16 v1530
Page 18 of 41
Delivering the Vision
Strategic Overview
The majority of actions in the Annual Action Plan delivering this priority are on track (ten of
twelve), one has some problems and one is on hold. Performance against three of the six
performance indicators where a target has been set are on or above target, one close to target
and one is below target. Performance against four indicators are improving compared to the
same period last year, one is static and one worsening.
The Council has:
Service Improvement
1. Eastlaw continues to grow and achieve well, being shortlisted for the
prestigious “The Lawyer Awards” earlier this year. We won a tender for
Flagship Housing’s anti-social behaviour work in which we competed against
well-known private sector providers such as Devonshires
2. All eastlaw’s internal management targets are being met. As the service grows
it becomes more resilient and is able to deliver a higher quality service back to
the host council. The team is now at full capacity again having taken on a large
amount of matters which will be charged outside the Borough Council of King’s
Lynn and West Norfolk service level agreement and the Flagship work. The
amount of fee income is in line with budget. Eastlaw’s satisfaction ratings
continue to be very high with clients
Issues and challenges
The Council plans to:
1. Achieve an improvement in planning application performance in light of an
increased workload (60 more applications were received in this quarter), while
the team still has vacant posts
2. Present a new Corporate Plan 2015 – 2020 to Cabinet in September for
ratification at Full Council on 23 September 2015
3. Devise a Communications Strategy which will encompass the use of Social
Media
4. Work to deliver a Contact Centre which will include Social Media Channels to
enhance the Council’s capability to interact with Social Media users
5. Complete roll-out of the Unified Communications solution this year
6. Complete the business process review (BPR) of the Planning Service which
has started and is progressing well
Managing Performance Quarter 1 2015-16 v1540
Page 19 of 41
Performance Indicators
Indicators and
Measures
Percentage of
Priority 2
(Important) audit
recommendations
completed on
time (quarterly
cumulative) (V
001)
Q1/13/14
Q1/14/15
-
-
Q1
15/16
Target
-
Q1
15/16
Result
*
Target 2015/16
-
-
80%
*Not yet produced. Audit Recommendation follow up exercise commences
October 2015.
Percentage of
Priority 1 (Urgent)
audit
recommendations
completed on
time (quarterly
cumulative) (V
002)
100.0%
100.0%
100%
N/A
-
-
100%
No priority 1 (urgent) recommendations have been issued for 2015/16 and no
high priorities outstanding from previous years.
Percentage of
audit days
delivered
(quarterly
cumulative) (V
004)
16.0%
5.0%
22%
21%
100%
35 days of the planned 37 (22%) delivered.
Working Days
Lost Due to
Sickness
Absence (Whole
Authority days per
Full Time
Equivalent
members of
staff) (quarterly
cumulative) (V
007)
1.87
1.62
1.50
1.21
6 days per full
time equivalent
(FTE)
employee
This is a good start to 2015/16 and is the lowest first quarter figure since
2012/13. A full breakdown of sickness absence will be reported to the Joint
Managing Performance Quarter 1 2015-16 v1550
Page 20 of 41
Indicators and
Measures
Q1/13/14
Q1/14/15
Q1
15/16
Target
Q1
15/16
Result
Target 2015/16
Staff Consultative Committee on 14 July 2015.
Percentage of
Council Tax
Collected
(monthly
cumulative) (RB
009)
30.13%
30.12%
30.00%
30.27%
98.5% (annual)
There has been an improvement in the percentage collected each month
against target. April was 0.04% above target, May was 0.12% above target
and June was 0.27% above target.
Percentage of
Non-domestic
Rates collected
(monthly
cumulative) (RB
010)
33.34%
33.86%
33.60%
32.69%
99.2% (annual)
NNDR Collection is still below target however the deficit is less than the
previous month so there is no change in targets needed. The deficit has
reduced from being £400k below target (end of May) to £250k below target
(end of June). This difference can be attributed to the ratepayers now paying
over 12 months as this change commenced earlier this year compared to last
year so reducing the payments collected over the earlier months.
Average time for
processing new
claims (Housing
and Council Tax
Benefit) (monthly
cumulative) (RB
027)
28.0
21.0
18.0
16.0
18 days
During June, a total of 365 new claims have been processed, taking on
average 17 days to complete. This processing time includes delays by the
customer to provide the information required to process their application.
92% of new claims were processed within 14 days of receiving all information
required from the customer.
Further analysis shows that 66% of new claims were processed within 3 days
of receiving all information required from the customer.
Speed of
processing:
change in
circumstances for
16.0
16.0
10.0
Managing Performance Quarter 1 2015-16 v1560
16.0
10 days
Page 21 of 41
Indicators and
Measures
Q1/13/14
Q1/14/15
Q1
15/16
Target
Q1
15/16
Result
Target 2015/16
Housing and
Council Tax
Benefit claims
(average calendar
days) (monthly
cumulative) (RB
028)
Cumulative figure has been manually calculated.
During June, a total of 3103 changes in circumstances have been processed,
taking on average 16 days to complete. This processing time includes delays
by the customer to provide the information required to process their
application.
62% of changes in circumstances were processed within 14 days of receiving
all information required from the customer.
Further analysis shows that 37% of changes in circumstances were processed
within 3 days of receiving all information required from the customer.
Percentage of
Ombudsman
referrals
successful
outcomes for the
Council (monthly
cumulative) (PA
002)
-
100.0%
100%
*
-
-
Number of
Ombudsman
referral decisions
(monthly
cumulative) (PA
001)
-
2
N/A
0
-
-
No target set.
-
No target set.
Report to
Transformation
Board.
No target set.
Report to
Management
Team.
*No outcomes received.
Percentage of
customers who
were quite or
extremely
satisfied they
were dealt with in
a helpful, pleasant
and courteous
way (quarterly)
(CS 053)
-
-
-
Managing Performance Quarter 1 2015-16 v1570
96%
-
Page 22 of 41
Indicators and
Measures
Percentage of
customers who
were quite or
extremely
satisfied they
were dealt with in
a competent,
knowledgeable
and professional
way (quarterly)
(CS 054)
Percentage of
customers who
were quite or
extremely
satisfied with the
time taken to
resolve their
enquiry (quarterly)
(CS 055)
Percentage of
customers who
were quite or
extremely
satisfied they got
everything they
needed
(quarterly) (CS
056)
Average wait time
(minutes) Customer
Services
(monthly) (CS
057)
Average
transaction time
(minutes) Customer
Services
(monthly) (CS
058)
Q1/13/14
Q1/14/15
Q1
15/16
Target
Q1
15/16
Result
Target 2015/16
No target set.
Report to
Transformation
Board.
-
-
-
-
-
-
-
-
5 min
14 sec
(June)
9 min
36 sec
(June)
-
-
-
-
-
Managing Performance Quarter 1 2015-16 v1580
96%
92%
97%
3 min 7
sec
(June)
6 min
13 sec
(June)
-
-
-
-
-
-
-
-
-
-
No target set.
Report to
Transformation
Board.
No target set.
Report to
Transformation
Board.
No target set.
Report to
Transformation
Board.
No target set.
Report to
Transformation
Board.
Page 23 of 41
Indicators and
Measures
Q1/13/14
Q1/14/15
Q1
15/16
Target
Q1
15/16
Result
Target 2015/16
The reduction in both customer waiting time and transaction time by Customer
Services has been achieved through better use of performance management
information and allocation of staff resources to cover identified customer
demand patterns.
Average wait time
(minutes) Housing Options
(monthly) (CS
059)
-
5 min
53 sec
(June)
-
7 min
12 sec
(June)
-
-
No target set.
Report to
Transformation
Board.
Number of cases increased from 164 to 203 since the same month last year
and one member of staff absent during June.
Managing Performance Quarter 1 2015-16 v1590
Page 24 of 41
Appendix 1: Delivering the Annual Action Plan 2015/16
Key
Activity Status
Symbol
Description
Completed
Successfully/ On
Track
Activity has started on schedule, and is on track to be completed by the predicted end
date, to budget and will deliver the expected outputs and outcomes/ impacts or already
has.
Not Started
This is for activities that are not programmed to start yet.
Postponed, Delayed
or On Hold
This is for activities that should have started by now but have not or activities that have
started but have had to pause or are taking longer than expected.
Some Problems
Lead officers should have described the problems and the action being taken to deal
with them.
Needs Attention/ Off
Track/ Failed
Activity is off track (either by starting after the predicted start date or progress slower
than expected), and it is anticipated that it will not be completed by the predicted end
date. Attention is needed from the lead officer and others to get this activity back on
track.
Failed - Activity not delivered and there is no way that it can be.
Jobs and the Local Economy
A - Increase the number of new businesses and support the growth and expansion of
existing businesses
Activity
Status
Progress/ Action Note
AAP 15/16 - J A 01 - We will formulate and
deliver a Growth Plan for North Norfolk,
linked to the New Anglia Strategic Economic
Plan and Norfolk Growth Prospectus, and
identify and promote future projects which
could receive grant funding support through
these programmes
On
Track
A Growth Plan was approved by
Cabinet and the activities identified
within it are in train. Key projects
have been successful in achieving
grant funding from a variety of
sources (including the Norfolk
Business Rate pool).
AAP 15/16 - J A 02 - We will work with
partners to deliver the Enterprise North
Norfolk Business Start Up and Support
Scheme
On
Track
The support scheme has been
operating effectively. Following
monitoring and review, the
contract for its delivery has been
extended to 31/12/15.
AAP 15/16 - J A 03 - Working in partnership
we will develop an Investment Strategy to
increase investment opportunities in the
district through seeking to remove
constraints from allocated employment sites
and promote their potential to accommodate
new job-creating development
On
Track
Managing Performance Quarter 1 2015-16 v1600
BE Group have been appointed as
third party consultants to develop a
Business Growth and Investment
Opportunities Strategy. This is well
underway and will be due for
completion by October 2015.
Page 25 of 41
Activity
Status
Progress/ Action Note
AAP 15/16 - J A 04 - We will promote the
Egmere Business Zone to offshore wind
energy businesses and their suppliers and
partners
On
Track
Actively promoting Egmere
Business Zone as a desirable
inward investment location.
AAP 15/16 - J A 05 - We will work with
Norfolk County Council to promote new jobcreating development at the Scottow
Enterprise Park (formerly RAF Coltishall) site
On
Track
The Council is engaged as a key
player in the development/
approval of proposals at the
Scottow Enterprise Park site.
AAP 15/16 - J A 06 - We will develop our
corporate position and consult with a wide
range of stakeholders in respect of emerging
renewable energy policy and technologies
through preparation of an Energy Strategy
On
Track
A sound evidence base has been
established which will inform future
policy development through the
revision of the Local Plan.
AAP 15/16 - J A 07 - We will ensure regular
engagement with business through
established Forums such as the Norfolk
Chamber of Commerce, the Federation
of Small Businesses and local Chambers of
Trade to better understand business need
and where public sector intervention and/or
support is required.
On
Track
Application for investment funding
from the Business Rates Pool for
£450k successful. Detailed project
proposal now to be worked up.
A Business Engagement Strategy
has been formulated, which
includes proposed new methods of
engaging with the business
community and fostering greater
collaboration of the existing
business for a.
B - Improve the job prospects of our residents by developing a skilled and adaptable
workforce that is matched to business growth and development
Activity
Status
AAP 15/16 - J B 01 - Through the
Council's Learning for Everyone (L4E)
Team we will provide information, advice
and guidance to local people wishing to
enter employment or improve their levels
of skills and raise aspiration
On
Track
AAP 15/16 - J B 02 - We will offer
bespoke programmes of advice and
support to people faced with redundancy
from local companies as and when such
events occur
On
Track
We have continued to work with those
affected by the Heinz Westwick
factory closure, many are finding work
and others are starting to engage with
us.
AAP 15/16 - J B 03 - We will put in place
a sustainable programme of delivery for
the Learning for Everyone Team
On
Track
The team has been delivering
employment support initiatives with
external partners. We are in the
Managing Performance Quarter 1 2015-16 v1610
Progress/ Action Note
The service continues to receive
significant numbers of enquiries.
Page 26 of 41
Activity
Status
recognising the changing policy and
delivery framework of advice and
guidance services, opportunities to work
differently with existing partners and
develop bespoke programmes of skills
training on behalf of local employers
Progress/ Action Note
process of aligning the provision of
skills support to other programmes
and will utilise the outcomes of the
skills analysis to orientate the skills
support towards the local business
needs.
AAP 15/16 - J B 04 - We will promote
work experience and apprenticeship
initiatives as part of our role as an
intermediary member of the
Apprenticeships Norfolk Network
On
Track
AAP 15/16 - J B 05 - We will undertake
an audit of employment opportunities and
skills needs amongst local businesses
and share the findings with our partners
and key strategic bodies
On
Track
We are continuing to represent
Apprenticeships Norfolk Network at
more and more events in North
Norfolk.
We have completed the Skills
Analysis which needs some refining
before being approved to be shared.
This will be done by Autumn with a
view to liaising with Norfolk County
Council and the Local Enterprise
Partnership to refine skills provision in
North Norfolk.
C - Improve access to funding for businesses
Activity
Status
Progress/ Action Note
AAP 15/16 - J C 01 - We will
administer, monitor and review a
North Norfolk Small Business Grant
programme and review effectiveness
after 12 months operation
On
Track
The BESt grant is now mostly committed. A
recent interim report noted the
effectiveness of the grant with a more
formal evaluation due once all funds are
committed.
AAP 15/16 - J C 02 - We will seek to
influence Local Enterprise
Partnership programme delivery in
North Norfolk, particularly in respect
of monitoring the take-up of grant
funding programmes by North
Norfolk businesses
On
Track
The Economic Growth team sit on the
Growth Programme project development
board and are also in constant liaison with
the Local Enterprise Partnership in relation
to the Growth Hub. More work is underway
to ensure that business support remains
proactive and effective.
D - Reduce burdens to business by removing unnecessary red tape and bureaucracy
at the local level
Activity
Status
Progress/ Action Note
AAP 15/16 - J D 01 Working with partners we
will achieve more than 90%
coverage of the district with
On
Track
An additional £5.3 million investment for fibre
broadband has been secured for Norfolk, bringing
the total investment to over £12m.
Managing Performance Quarter 1 2015-16 v1620
Page 27 of 41
Activity
Status
superfast broadband
speeds (minimum 24
megabits per second)
Progress/ Action Note
This investment brings an additional £1m to North
Norfolk to help achieve more that 90% superfast
broadband coverage across the district.
AAP 15/16 - J D 02 - We
will ensure advice and
guidance is readily
available to help business
comply with the law and
our approach to
enforcement will consider
the needs of local business
On
Track
AAP 15/16 - J D 03 - We
will streamline the planning
process to facilitate new
job-creating investment in
the district through
improved engagement with
businesses and improved
planning performance
On
Track
We continue to provide guidance and support to
businesses with which we interact in order to secure
compliance with legislative requirements and
promote good practice.
The development of a Business Support toolkit is
being progressed and links are developing further
between Environmental Health teams and the
Economic Growth Team.
Planning Business Review Workshops have been
held, the outcome of which will feed into new ways of
working designed to streamline our processes and
improve performance.
E - Promote a positive image of North Norfolk as a premier visitor destination
Activity
Status
Progress/ Action Note
AAP 15/16 - J E 01 - We will work with the
North Norfolk Destination Management
Organisation, which is currently funded by
the District Council, to ensure the positive
promotion of North Norfolk as a leading
visitor destination.
On
Track
The Destination Management
Organisation (DMO) continues to
develop and support a wide network
of tourism related organisations and
has developed effective marketing
campaigns for the area.
Managing Performance Quarter 1 2015-16 v1630
Page 28 of 41
Housing and Infrastructure
A - Increase the number of new homes built within the district and reduce the
number of empty properties
Activity
Status
Progress/ Action Note
AAP 15/16 - H A 01 - We will bring
forward detailed proposals on allocated
sites by pro-active engagement with
developers
On
Track
Ten of the larger allocations within the
Site Allocation Plan are already under
construction. Discussions are continuing
with developer to bring forward other
schemes.
AAP 15/16 - H A 02 - We will seek to
increase the number of homes built of
all tenures by reviewing the Housing
Incentive Scheme and exploring other
innovative means of improving delivery
On
Track
The Council took the decision to
continue with the Housing Incentive
Scheme during 2015 and the review of
the Local Plan, which has now
commenced, will consider delivery of
housing and the implications of the
Strategic Housing Market Assessment
2015.
A further report on the success of the
Local Investment Strategy will be
undertaken and a report brought
forward in late Autumn.
AAP 15/16 - H A 03 - We will develop a
Property Investment Strategy to
supplement the delivery of additional
housing
On
Track
An initial report on options on the
opportunities and delivery mechanisms
of holding property has been
commissioned and work due to
complete end of September 2015.
AAP 15/16 - H A 04 - We will support
the development of neighbourhood
plans by aligning the wishes of towns
and parishes with the local plan review
On
Track
Two Neighbourhood Plans are being
prepared for Holt and Corpusty and
Saxthorpe. Both communities have
undertaken local consultation to
understand the issues to be addressed
and will shortly be starting to prepare
draft proposals. Corpusty and
Saxthorpe have indicated a desire to
identify development land in the village.
More recently Happisburgh Parish
Council has requested some advice in
relation to the process and may
consider preparing a plan.
AAP 15/16 - H A 05 - We will support
owners to bring empty homes back into
use and provide opportunities to do so
through the application of our statutory
powers
On
Track
Good progress being made to bring
long term empty homes back into use
through Council’s Enforcement Board
activity.
Managing Performance Quarter 1 2015-16 v1640
Cabinet agreed to extend the Empty
Page 29 of 41
Activity
Status
Progress/ Action Note
Homes Manager post to March 2016.
AAP 15/16 - H A 06 - We will gather the
evidence in support of the review of the
local plan including publishing the joint
strategic housing market assessment,
including identifying specialist housing
need in response to the prospective
age profile of the district.
On
Track
An initial outline plan has been agreed
by the Housing and Policy Board. A joint
Strategic Housing Market Assessment
(SHMA) and a Business Growth and
Investment Opportunities Study have
been commissioned. The SHMA is likely
to be published in August/ September
2015.
B - Increase the number of affordable homes with a range of tenure types
Activity
Status
Progress/ Action Note
AAP 15/16 - H B 01 - We will
seek to increase the number of
affordable homes provided
across the district through a
range of delivery mechanisms
and including the local
investment strategy loan to
registered providers
On
Track
It is expected that 78 additional affordable
dwellings will be completed across the district
during 2015/16 of which 7 will be sold as
shared equity or shared ownership. The first
planning applications for schemes funded
through the Local Investment Strategy loan to
Registered Providers will be submitted over
the summer. The first mixed tenure Exception
Housing Scheme is expected to achieve a start
on site this year providing a mix of affordable
rent, shared ownership and market homes.
C - Secure investment in new infrastructure
Activity
Status
AAP 15/16 - H C 01 - We will consult and then obtain
agreement on a process for securing contributions
towards infrastructure from development proposals in the
district known as section 106 agreements
Not
Started
Managing Performance Quarter 1 2015-16 v1650
Progress/ Action
Note
This needs to be a
priority in the
forthcoming quarter.
Page 30 of 41
Coast, Countryside and Built Heritage
A - Maintain the integrity of special landscape designations and balance the
development of housing and economic activity with the need to preserve the
character and quality of the district's countryside and built heritage
Activity
Status
AAP 15/16 - C A 01 - We
will assess and implement
requirements for new Green
Flag Awards and work to
retain the existing awards
Completed
Successfully
AAP 15/16 - C A 02 - We
will work with other
agencies to retain four of
the district's Blue Flags for
the quality of the beaches
and to achieve Quality
Coast Awards elsewhere
Completed
Successfully
AAP 15/16 - C A 03 - We
will manage the waste and
recycling contracts to
ensure an excellent level of
service and promote high
levels of recycling
On Track
Managing Performance Quarter 1 2015-16 v1660
Progress/ Action Note
Green Flag awards retained at all 3 sites
including Holt Country Park, Pretty Corner
Woods in Sheringham and Sadler’s Wood in
North Walsham.
Blue Flags successfully retained at all 4
beaches including Sheringham, Cromer, Sea
Palling and Mundesley with Quality Coast
awards for East Runton and Wells.
There are no major issues to report for
Quarter 1 relating to the waste, recycling and
cleansing elements of the contract. During
this time the annual adjustments to
schedules associated with the increased
tourist numbers have been implemented and
these have ensured a level of cleanliness
across the district. The changes resulting
from the implementation of the saving taken
last year have resulted in some changes to
cleansing frequencies and response times
the impact of which is being closely
monitored and is the subject to regular
discussions with Kier.
Residents are recycling an increased range
of material and the tonnage of recyclate
collected at the kerbside has increased.
However, levels of residual waste have risen
rapidly associated with the improved
economic situation and recycling as a
percentage of overall household waste has
therefore decreased. Levels of
contamination within the recycling stream
are higher than anticipated which has led to
the launch of the Rinse and Recycle
promotional campaign.
Page 31 of 41
Activity
AAP 15/16 - C A 04 - We
will ensure that all reported
fly-tipping and pollution
complaints will be
responded to within two
working days
Status
Progress/ Action Note
On Track
The level of service over the quarter has
remained consistent with a high proportion of
complaints being responded to within 2
working days. We continued to maintain the
level of service above the target percentage.
B - Recognise the District's built environment as a heritage asset when promoting
North Norfolk
Activity
AAP 15/16 - C B 01 - Through the
work of the Council's Enforcement
Board we will take appropriate action
where listed buildings and buildings
within conservation areas are
considered to be at risk
Status
On Track
Progress/ Action Note
Certain activities of the
Enforcement Board are creating
resource demands in the
Conservation Team which are
having some knock-on
performance consequences in
relation to Development
Management activities.
Conservation Officers are
working hard to try and maintain
performance.
C - Design a more cohesive framework for coastline management
Activity
Status
AAP 15/16 - C C 01 - We will
investigate options to improve
coastal management with
neighbouring coastal councils
On
Track
AAP 15/16 - C C 02 - We will work
with coastal communities and other
agencies to identify coastal
management schemes and sources
of funding working with the
Environment Agency to explore the
best possible solutions for all our
communities
On
Track
Managing Performance Quarter 1 2015-16 v1670
Progress/ Action Note
Discussions are progressing with Local
Authorities, related organisations and
academic institutions.
2015 submission into Environment Agency
capital programme completed. Continual
work in assessing opportunities for funding.
Continued engagement with local
communities through Coastal Forum and
one to one contact where required.
Ongoing improvements and innovation in
coastal awareness raising.
Page 32 of 41
D - Continue to defend coastal settlements against erosion wherever practicable
Activity
Status
Progress/ Action Note
AAP 15/16 - C D 01 - We will
manage the final delivery of
the £8.6m Cromer Defence
Scheme
On Track
The third winter campaign of works will
commence in September 2015. Due to
additional storm surge works and difficult
working conditions in the winter months the
scheme will continue into a third season of
operations. Progress has been made with
significant effort now focused on seeking
completion of this phase of the Cromer Coast
Protection Scheme.
AAP 15/16 - C D 02 - We will
consider plans to redevelop
sea front property assets in
Cromer for completion
following the Cromer
Defence scheme
Some
Problems
The Cromer sea defence scheme was due to
be completed by March 2015 but due to delays
encountered following the storm surge this has
not been possible. The contractors Volker
Steven are therefore due to return to complete
the works between September 2015 and March
2016, following which the redevelopment plans
can be further progressed.
AAP 15/16 - C D 03 - We will
work with other agencies to
assess and respond to the
issues arising from the
proposed Bacton Gas
Terminal coastal defence
scheme
On Track
The Coastal Management Team has continued
with the development of a coastal management
study for the Bacton Terminal, Bacton and
Walcott coastal frontage. It assesses if there is
a viable and feasible coastal management
solution which can dovetail with any proposed
coast protection work coming forward from the
operators of Bacton Gas Terminal. This has
involved close working with the operators of the
terminal, The Crown Estate and the
Environment Agency. This has linked to
information sharing with Department for
Environment, Food & Rural Affairs (DEFRA),
Department of Energy & Climate Change
(DECC) and Cabinet Office.
AAP 15/16 - C D 04 - We will
manage the delivery of the
£800k Sheringham West
Sea Wall Improvement
Scheme
On Track
The second season of works will begin in
September 2015, this will include an additional
26.5m of seawall refurbishment below the
Royal National Lifeboat Institution (RNLI)
station which will be part funded by the RNLI.
Managing Performance Quarter 1 2015-16 v1680
Page 33 of 41
Localism
A - Recognise the important role that Town and Parish Councils have as the
democratic embodiment of their communities
Activity
Status
Progress/ Action Note
AAP 15/16 - L A 01 - We will respond
positively to a Community Right to
Challenge to take over the running of
services within their area/communities if
they can be run more efficiently (to our
Service Level Agreement)
On
Track
Draft contract being finalised for
transfer of Tourist Information Centre
(TIC)/Toilet assets to North Norfolk
Railway as of 1 October 2015.
AAP 15/16 - L A 02 - We will maintain a
regular dialogue and work with Town and
Parish Councils
On
Track
Standards Committee engagement
sessions continue offering support to
new Parish Councillors. The next
phase of support will start in the early
autumn and continue until December
2015.
The Planning Forums are scheduled
for October and November 2015.
AAP 15/16 - L A 03 - We will hold
workshops for training and development,
in particular to encourage wide community
participation in the planning and
democratic processes
On
Track
Discussions have taken place to
discuss format, timing and location of
these sessions. These are likely to
take place in November.
B - Encourage communities to develop their own vision for their future and help
them to deliver it
Activity
Status
Progress/ Action Note
AAP 15/16 - L B 01 - We will
support and encourage Community
Engagement Schemes in those
parishes where there is a local
demand
On
Track
After a refresh and re launch of the scheme,
a training plan has been put in place and
eight new community dog wardens have
been recruited and are being trained over
the next month.
This is in addition to the eight existing
wardens already operating across the district
and increases the parishes covered by this
scheme. The team will be undertaking
patrols and re-engaging with the wardens to
ensure the link between the Environmental
Protection Team and the community is
effective.
In Sheringham and Sea Palling we have
undertaken some further work to engage
with local community groups and had a
display in the local vets to get some interest
in the scheme in these hotspot parishes,
Managing Performance Quarter 1 2015-16 v1690
Page 34 of 41
Activity
Status
Progress/ Action Note
however after this effort we had no
responses.
AAP 15/16 - L B 02 - We will
implement a Community Resilience
Planning programme to increase
uptake amongst local communities
so that communities are able to
help and support each other in the
face of a common crisis
On
Track
C - Encourage the growth of The Big Society within communities
Activity
Status
Progress/ Action Note
AAP 15/16 - L C 01 - We will
continue to support local
communities to obtain funding and
other assistance to deliver their
local priorities
On
Track
Assistance has been provided to many
community organisations and initiatives and
a new fund has been established to develop
further projects relating to the District’s
towns.
Managing Performance Quarter 1 2015-16 v1700
Page 35 of 41
Delivering the Vision
A - Deliver strong governance arrangements
Activity
Status
AAP 15/16 - V A 01 - The Audit
Committee will oversee a review
programme to ensure that audit
coverage reflects the risks facing
the Council
On Track
AAP 15/16 - V A 02 - We will set
and achieve 100% compliance with
deadlines agreed with Internal
Audit for recommendations rated
as Important and Urgent
Some
Problems
AAP 15/16 - V A 03 - We will
maintain a robust performance
management framework for
managing the Business
Transformation Programme
On Track
Progress/ Action Note
Work Programme of reports presented to
Audit Committee as a standing item,
quarterly progress reports on track to be
presented to the committee.
Revised implementation dates set for
previous year recommendations that are
still outstanding, some medium and low
recommendations are outstanding, follow
up work to be carried out in October
2015.
Project Manager has been recruited and
commences August 2015.
B - Ensure that effective communications exist
Activity
Status
Progress/ Action Note
AAP 15/16 - V B 01 - As part of
the Business Transformation
Programme we will work to
develop our approach to digital
and social media and work to
improve our services for residents
and other customers
On
Track
Communications Manager has been
appointed and is devising a Communications
Strategy which will encompass the use of
Social Media.
AAP 15/16 - V B 02 - Following
the Member Induction Programme
we will provide a programme of
Member Development to allow
Members to be effective in their
roles
On
Track
First phase of Members induction completed,
including committee training. Phase 2, the ongoing programme, will start shortly with the
Member Development Group. This will
include e-learning, mentoring and further
training courses. Next Member Development
Group, on 8 July 2015, will review the
induction programme and discuss future
development options.
AAP 15/16 - V B 03 - We will
implement a unified
communications approach for all
On
Track
Unified communications deployment is
continuing and will be complete by November
2015
Work has commenced on delivering a
Contact Centre which will include Social
Media Channels to enhance the Council’s
capability to interact with Social Media users.
Managing Performance Quarter 1 2015-16 v1710
Page 36 of 41
Activity
Status
Progress/ Action Note
of our digital media documents
and will procure a customer
information system
Document management we will implement
Microsoft Sharepoint as a Corporate
document Management System and integrate
this with service systems as necessary. A
pilot deployment will be in place by January
2016
A number of products have been evaluated to
inform the production of an Invitation to
Tender (ITT) which will be issued in
September 2015
C - Deliver strong and proportionate organisational management in the Council
Activity
Status
AAP 15/16 - V C 01 - We will
undertake reviews of all major
business processes in order to
improve customer service and
deliver financial savings detailed in
the financial strategy
On
Track
Progress/ Action Note
Work has commenced on our key
processes. Business Process Review
Workshops have been held, the outcome of
which will help inform the development of an
Implementation Plan.
D - Prioritise Services and Functions in line with the wishes of our communities and
to deliver our corporate objectives
Activity
Status
AAP 15/16 - V D 01 - We will review the
objectives in the Corporate Plan to
ensure it takes account of emerging
issues and opportunities
Progress/ Action Note
On
Track
A new Corporate Plan 2015 – 2020 is
due to be presented to Cabinet in
September for ratification at Full
Council on 23 September.
E - Deliver year-on-year improvements in efficiency
Activity
Status
Progress/ Action Note
AAP 15/16 - V E 01 - We will
review the delivery model for
the Revenues and Benefits
service
On
Hold
With system stability we will undertake a
further review of processes to ensure the
efficient operation of the service.
AAP 15/16 - V E 02 - We will
continue to drive
improvements and efficiencies
to protect the District Council's
part of the Council Tax Charge
On
Track
Financial Strategy to be presented to Members
in September 2015 ahead of the detailed budget
work to be completed over the Autumn.
Managing Performance Quarter 1 2015-16 v1720
Page 37 of 41
Activity
Status
Progress/ Action Note
AAP 15/16 - V E 03 - We will
identify ways to reward and
recognise staff in the delivery
of high quality services
On
Track
The East of England Local Government
Association (EELGA) will shortly be undertaking
a market review on the Council’s employee payscales and the staff focus group are looking at
reward schemes for staff. Progress will be
reported to the Corporate Leadership Team.
AAP 15/16 - V E 04 - We will
continue to implement the
Business Transformation
Programme to drive
efficiencies into all of our
services
On
Track
The roll-out of the Unified Communications
solution is in progress and will complete this
year.
Work on the other enabling technology
programme continues in accordance with
timeline and budget plans.
The business process review (BPR) of the
Planning Service has commenced and is
progressing well
Managing Performance Quarter 1 2015-16 v1730
Page 38 of 41
Appendix 2: Development Management Workload
Major Applications Registered
1 April 2014 to 31
July 2014
16
1 April 2015 to 31
July 2015
28
Minor Applications Registered
210
156
Other Applications Registered
272
376
Total
498
560
Major Applications Decisions
14
16
Minor Applications Decisions
193
119
Other Applications Decisions
260
314
Total
467
449
Appeals Received (Major)
0
0
Appeals Received (Minor)
4
3
Appeals Received (Other)
0
3
Total
4
6
Appeal Decisions (Major)
1
3
Appeal Decisions (Minor)
10
2
Appeal Decisions (Other)
3
2
Total
14
7
Non-material Amendments Received
44
39
Condition Discharge Received
68
71
Pre-Applications Received
90
95
Do I Need Planning Permission Requests Received
38
19
Approximate Duty Officer Enquires Dealt With
705
1066
Fee Income
£69,271
£103,400
£37,415
£4,076
£3,162
£6,950
£480
£224,754
£153,631
£77,301.50
£63,534.50
£3.402
£5,053.5
£9,090
£915
£312,927.5
Major
Minor
Other
Non-material Amendments
Condition Discharge
Pre-Applications
Do I Need PP
Total
Key Points
 Increase number of applications
 Decrease in number of decisions
 Drop in performance for 8 and 13 weeks
 30% increase in duty officer enquiries dealt with
Managing Performance Quarter 1 2015-16 v1740
Page 39 of 41
Cumulative figures 2014/15
Major
0-13 weeks 13+ weeks
Total
32
11
%
74.42%
25.58%
Minor
0-8 weeks
288
56.69%
8+ weeks
220
43.31%
Other
0-8 weeks
522
72.70%
8+ weeks
196
27.30%
Cumulative figures 1 April to 31 July
Major
0-13 weeks 13+ weeks
Total
9
7
56.25%
%
43.75%
Minor
0-8 weeks
45
37.82%
8+ weeks
74
62.18%
Other
0-8 weeks
206
65.61%
8+ weeks
108
34.39%
These figures are up slightly on the figures for the end of June, however with a backlog occurring,
as we clear that our figures are likely to drop before they improve.



Concern that backlog developing
Concentrated period of appeal work – increase in no. of informal hearings, 4 day public
inquiry and Supreme Court
Impacted by two vacant posts, that we’ve been unsuccessful in recruiting too
Actions being taken:
 Working with HR to look at ways of improving recruitment officer
 In meantime exploring use of agency staff to fill vacancies
 BPR work once implemented should streamline our processes, and provide capacity, but
this is a way off from completion.
Nicola Baker
13 August 2015
Managing Performance Quarter 1 2015-16 v1750
Page 40 of 41
Version Control
Version
0.0
0.1
Originator
Helen Thomas
Helen Thomas
0.2
0.3
0.4
Helen Thomas
Helen Thomas
Helen Thomas
1.0
Helen Thomas
Description including reason for changes
First draft for CLT
Second draft for Communications Manager for
comment
Third draft for pre Cabinet
Minor amendment to third draft for pre Cabinet
Amendments from Performance and Risk
Management Board
Final – Appendix 2 added
Managing Performance Quarter 1 2015-16 v1760
Date
07/08/2015
11/08/2015
13/08/2015
13/08/2015
21/08/2015
25/08/2015
Page 41 of 41
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
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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.
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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
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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,
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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.
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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).
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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
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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
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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
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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.
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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.
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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
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CORPORATE
PLAN 2015 - 2019
89
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
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3
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
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5
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
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7
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
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9
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
10
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
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11
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
95
13
CORPORATE
PLAN 2015 - 2019
North Norfolk District Council
Holt road, Cromer
Norfolk NR27 9EN
facebook/northnorfolkdc
@northnorfolkdc
T: 01263 513 811
www.northnorfolk.org
96
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
97
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.
98
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
99
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
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
100
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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
August 2015
101
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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.
Financial Strategy 2016/17 to 2019/20
August 2015
102
Page 4 of 27
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
103
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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.
Financial Strategy 2016/17 to 2019/20
August 2015
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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
105
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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
106
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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
107
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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.
Financial Strategy 2016/17 to 2019/20
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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
109
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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
August 2015
110
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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
August 2015
111
Page 13 of 27
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
112
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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
August 2015
113
Page 15 of 27

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
114
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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
115
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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
116
Page 18 of 27





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
117
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
118
Page 20 of 27
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
119
Page 21 of 27
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
120
Page 22 of 27
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
121
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
122
Page 24 of 27
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
123
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
124
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
125
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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
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7th September 2015
Cabinet
Agenda Item No_____13________
Cabbell Park – Proposed lifting of Open Space Restriction – Summary of
consultation responses
Summary:
This report summarises the comments received from the
recent public consultation exercise on the proposed lifting
of the open space restriction at Cabbell Park, Cromer so
as to allow future development of the site to
accommodate a new medical centre for the town and
potentially other uses on the balance of the site in the
future.
Options:
The report considers:
whether the authority should proceed with lifting
the open space restriction on Cabbell Park,
Cromer so as to facilitate development of a new
medical centre facility to serve the town on part
of the site, as well as new sports pitch facilities
on a site on the edge of town; or

retain the Cabbell Park site in current use as a
single football pitch with limited access by the
wider public which the Council believes is outside
of the original intention of the benefactor in
proposing that the Cabbell Park site be defined
as open space under the terms of the 1906 Open
Spaces Act.
Conclusions:
The recent public consultation process has indicated
support for the lifting of the open space restriction in
order to accommodate a new medical centre facility for
the town on part of the Cabbell Park site, but a
preference for the balance of the site to be retained as
open space, available for wide public use.
Recommendations:
That Cabinet:1. considers the comments received through the
public consultation process;
2.
agrees to the removal of the open space
restriction at Cabbell Park; and
127
7th September 2015
Cabinet
3. restates its intention that the proposed new
Cromer community sports pitch facility will be
named after Mrs Bond Cabbell in honour of her
original bequest of land in the town for sporting
purposes in memory of local people who gave their
lives in service during the Great War of 1914-1918.
Reasons
Recommendations:
for
To facilitate investment in new medical centre and sports
facilities for Cromer.
Cabinet member(s):
Cllr Tom FitzPatrick
Contact Officer, telephone number, and
e-mail:
Steve Blatch, Corporate Director
Steve.blatch@north-norfolk.gov.uk
Tel:- 01263 516232
128
7th September 2015
Cabinet
1.0
Summary:-
1.1
As part of wider consideration which the District Council has given to the future use of
the Cabbell Park site, particularly the ability of part of Cabbell Park to accommodate a
new medical centre facility for the Cromer Group Practice (as per a decision of Cabinet
taken in April 2014); the Council is required, under Section 122/123 (2A) of the Local
Government Act 1972, to invite public comments on the removal of the open space
restriction which exists at the Cabbell Park site.
1.2
This report details the responses received in respect of the recent public consultation
staged by the District Council in proposing the lifting of the open space restriction at the
Cabbell Park site.
2.0
Background:-
2.1
Over the past eighteen months, the District Council has given consideration to how the
longstanding need for increased sports pitch provision and a new medical centre for the
Cromer Group Practice might be provided in Cromer. In April 2014 the Council’s
Cabinet agreed that, subject to replacement sports pitch facilities being developed to
meet the needs of the town, the Cabbell Park site offered the best opportunity to
accommodate the new medical centre, subject to statutory planning processes being
followed.
2.2
Cabbell Park was originally bequeathed to the people of Cromer by Mrs B E Bond
Cabbell in 1922 as a memorial to those inhabitants of the town who died in the First
World War. The land was subsequently transferred under a Trust Deed to Cromer Town
Football Club which entitled the Club to occupy the land until 21 years after the death of
the last descendants of HM King Edward VII; following which the land was to be held by
the District Council (as statutory successor authority to Cromer UDC) in trust “with a view
to the enjoyment thereof by the public as an open space within the meaning of the Open
Spaces Act 1906”. Any proposals which involved development of all or part of the
Cabbell Park site therefore require the lifting of the Open Space restriction.
2.3
Whilst the District Council recognises that Cabbell Park has been the home of Cromer
Town Football Club for many years, the Council questions the extent to which use by a
private sports club meets the definition within the 1906 Act and therefore believes that
there would be wider public interest and benefit from the development of new sports
pitch facilities in the town which could accommodate Cromer Town Football Club,
Cromer Youth Football Club (which has a large membership but no “home” facilities or
training ground) and other sports clubs. The existing Cabbell Park site is not large
enough to accommodate any additional sports facilities and therefore the ambition to see
the provision of new community sports facilities to serve the town cannot be realised on
the Cabbell park site. The District Council has therefore promoted proposals which
would see the development of new community sports pitch facilities on the edge of the
town where modern changing and clubhouse facilities could be provided shared by a
number of local sports clubs.
2.4
The District Council has, since Cabinet discussion of the future of Cabbell Park in April
2014, consistently stated that it would not seek removal of the open space restriction at
Cabbell Park on a speculative basis, but only following the Cromer Group Practice
developing and inviting public comments on their proposals to provide a new medical
centre facility to serve the town on the front of the Cabbell Park site. The Cromer Group
129
7th September 2015
Cabinet
Practice and their development partner, MedCentres, published draft proposals for the
new surgery facility in May of this year and the Council has subsequently taken forward
consultation on the proposed lifting of the open space restriction.
3.0
The public consultation process:-
3.1
The Council has promoted the consultation on the proposed lifting of the Open Space
restriction at Cabbell Park through the following actions: Placed adverts in the North Norfolk News on 28th May and 4th June 2015 detailing
the consultation process and inviting comments to be submitted on the proposal
by 3rd July 2015.
 Issued a Press Statement / Release to accompany the placing of the above
advert in the North Norfolk News, with the story featuring on the front page of
North Norfolk News on 28th May under the heading “Speak out on park’s future”
with reference also made to the consultation process in the editorial comment
section.
 Story also featured in the Eastern Daily Press on 29th May under the headline
“People in Cromer asked for views on future of football ground”.
 Details of the NNN / EDP story also featured on both the NNN and EDP websites
– on which there was only one on-line comment posted.
 Story carried on BBC Radio Norfolk Breakfast Show on 27th May 2015, with live
interview with Cllr Fitch-Tillett from the Cabbell Park site.
 Site notice erected at Mill Road entrance to the Cabbell Park site.
 Details of the consultation carried on the front page of the Council’s website –
northnorfolk.org from 28th May 2015 through until 3rd July.
 Letters inviting comments on the proposed lifting of the Open Space restriction
sent to Cromer Town Council and Cromer Town Football Club.
 Details of the consultation being displayed on the District Council’s “Streetlife”
page.
 Exchange of comments on Twitter with Cromer Preservation Society asking /
responding to questions about the consultation process.
 Letters sent to the owners / occupiers of residential properties with an immediate
boundary with the Cabbell Park site inviting them to comment on the proposed
lifting of the open space restriction.
4.0
Responses received through the consultation process:-
4.1
The consultation process generated 14 individual responses by email and letter, together
with responses submitted on behalf of Cromer Town Council and the Cromer
Preservation Society. There was also a response received from a local resident with a
connection to the Cromer Town Football Club enclosing a petition of 633 signatures (of
which 311 were from residents of Cromer, 197 from residents with addresses elsewhere
in North Norfolk and 132 signatures from people outside of North Norfolk) gathered at
car boot sales and football matches at the Cabbell Park site over a number of weeks.
The responses received can be viewed in the appendix to this report. In addition, there
was also an exchange of comments on the proposed lifting of the restriction on the
Streetlife social media site, involving comments placed by 13 individuals, as per link
https://www.streetlife.com/conversation/tigjn8qvix6z/.
4.2
The consultation process generated the following responses:-
130
7th September 2015
Cabinet

4 comments in support of the lifting of the open space restriction

4 comments supporting the lifting of the restriction to accommodate the new GP
surgery facility, but proposing that the balance of the site be retained as open
space

1 comment suggesting that “if” part of the site is to be developed for the new
medical centre, the balance of the site should remain as open space

8 comments (two from one individual) objecting to the proposed lifting of the
restriction
Of the 13 individuals posting comments on the Streetlife North Norfolk social media site
2 were supportive of the proposal to accommodate the new surgery facility on the
Cabbell Park site, 5 objected and 7 passed comment but without expressing support or
objection. However, a number of the comments made related to planning issues,
particularly traffic, connected with the proposed new surgery and these issues will be
considered in due course through the planning process, rather than relating to the open
space restriction.
4.3
The objections to the proposed lifting of the open space restriction at Cabbell Park are
largely based upon concerns about the loss of an area of open (undeveloped) space
within the built up area of the town to development and the fact that the land was
originally bequeathed by Mrs bond Cabbell as a memorial to local people who lost their
lives in the First World War.
4.4
These issues have been given careful consideration by the District Council in proposing
that part of the Cabbell Park site accommodates a new doctors’ surgery and promoting
the development of new sports facilities elsewhere in the town which would have the
potential to meet the strong local demand for such facilities in Cromer and which cannot
be accommodated on the Cabbell Park site. The Council has therefore resolved in
proposing the above that any capital receipt generated from the sale of land at Cabbell
Park (except for the costs involved in relocating the existing football pitch within Cabbell
Park until the new facility is developed) be committed to the provision of the new sports
facilities and that such facilities be similarly dedicated to Mrs Bond Cabbell, therefore
honouring the objectives of her original bequest to the town.
5.0
Next steps:-
5.1
Cabinet is asked to consider the representations received by the Council through the
recent consultation process and, if minded to proceed with the lifting of the open space
restriction on the Cabbell Park site, authorise officers to undertake the following actions: Undertake the necessary arrangements to confirm the lifting of the open space
restriction;
 Advise the Cromer Group Practice and their development partner, that the open
space restriction is lifted allowing the proposed new surgery facility to be
developed on the Cabbell Park site, subject to the necessary planning consents
being obtained;
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7th September 2015
Cabinet
 Progress plans to undertake further works to enable the relocation of the existing
football pitch within the Cabbell Park site (ie agree specification for the relocation
of the floodlights and railings and supply of replacement changing facilities) which
can be taken forward if and when sale of part of the site to the Cromer Group
Practice proceeds.
6.0
Financial Implications and Risks:-
6.1
There are no direct financial issues raised by this report.
6.2
Removal of the open space restriction will allow the District Council to move forward with
the sale of the front part of the Cabbell Park site to the Cromer Group Practice /
MedCentres for the provision of a new medical centre to serve the town, subject to the
proposed development receiving planning consent through the statutory planning
process. The Council’s Cabinet has previously agreed that the capital receipt from the
sale of land at Cabbell Park (less costs incurred in relocating the existing football pitch at
Cabbell Park in a westerly direction) will be committed to supporting the delivery of a
new community sports facility for the town and the capital receipt received will be held by
the Council until such time as a site is secured for the new community sports pitch
facility.
7.0
Sustainability:-
7.1
The recommendations made in this report do not in themselves raise issues of
sustainability. The consideration given to the principle of the Cabbell Park site
accommodating the new doctors’ surgery recognised that the site was easily accessible
to a large number of the practice’s patients accessing the surgery on foot, by established
public transport routes and by private car, as well as being opposite the Cromer and
District Hospital; whilst retaining the existing football pitch within the site.
8.0
Equality and Diversity:-
8.1
There are no direct equality or diversity issues raised by this report, but the Council’s
support for the principle of accommodating a new primary care facility on the Cabbell
Park site would see the delivery of improved health facilities and outcomes for the
existing and future population of Cromer and the surrounding area; as would the
provision of new / improved sports facilities.
9.0
Section 17 Crime and Disorder considerations:-
9.1
This report does not raise any issues relating to Crime and Disorder.
132
Agenda Item No____14________
Procurement of Replacement Print Solution
Summary:
This report details the need to procure a new corporate
printing solution for the Council. The existing print
solution contract expires in December this year and
needs in this area are changing as a result of
technology, giving us an opportunity to change our
approach with potentially, significant financial savings.
Options considered:
Procure a solution which maintains the existing level of
centralised, on site printing. This has been rejected as
being too expensive for the volumes the council now
requires.
Procure a solution which reduces the level of centralised
on site printing. Soft market testing has indicated that
this will deliver savings but that it is probably not the
best solution in terms of value for money.
Procure a hybrid solution which allows for a combination
of onsite and offsite printing with an option for inclusive
postage costs for the offsite printed matter. Soft market
testing indicates this will be the best option as it will give
greatest flexibility and better financial savings than
option 2 above.
Procure a completely offsite printing solution, including
postage where required. This may provide more
financial benefits but it is likely that the additional risks in
terms of flexibility and speed of delivery may outweigh
these additional benefits.
Conclusions:
The current print contract is due to expire in December
2015, and authorisation is therefore required from
Cabinet to procure a new print solution. This can be
achieved by a number of procurement options, including
both the use of framework contracts which the council is
eligible to use, and open procurement options.
A simple reduction in print equipment to reflect current
volumes provides an adequate business case to
proceed. However, it is likely that a hybrid, onsite/offsite
printing, with postage costs included solution will
provide the most economically advantageous solution to
the Council, given the likelihood of changing needs for
printed material in the future.
133
It would appear that this can be delivered either in splits
lots or as one overarching contract.
Recommendations:
That Cabinet authorises officers to procure a new
printing
solution,
which
gives
the
most
economically advantageous option to the Council,
for implementation as soon as possible after the
existing printing equipment contract expires in
December 2015.
Reasons for
Recommendations:
The existing printing contract expires in December 2015
and there is a need to complete the procurement by this
time or negotiate a short additional extension to cover a
longer procurement period..
Whilst eligible framework contracts will allow this
timeline to be met, the Council wishes to ensure that
smaller, local providers are able to be included in the
procurement process.
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)
Cabinet Member(s)
Ward(s) affected
Cllr Tom FitzPatrick
Cllr Judy Oliver
Contact Officer, telephone number and email:
Nick Baker, Corporate Director
Tel: 01263 516221
Email: nick.baker@north-norfolk.gov.uk
1.
Introduction
The Council currently leases three print machines to meet its high volume
printing and copying needs. These machines use integrated, proprietary
software, which processes and sends print requests from the Print Room’s
PCs or scanners, to the individual printers. Each machine provides some
level of backup to the others, to provide for times when a specific printer is out
of use or to ensure the most efficient print run. Two scanners are used to
scan documents sent for printing or for conversion to electronic format.
134
The last procurement for a printing solution saw us procure an equipment
(including maintenance) and software contract and was carried out in 2010,
using a Government Framework Contract. It was agreed by Cabinet that a
three year contract would be signed, with an option to extend for a further two
years, which was taken up, so that it now expires in December 2015.
2.
Current Position
2.1
Costs
These are detailed in the Financial Implications section below, but in general
terms, the direct cost of the print service is made up of:



2 FTE Staff £58,000
Printer contract
o average over past five years £74,000
o budgeted for 2016-17 onwards £85,000
Paper and other consumables c. £20,000
This paper only considers the requirement for a solution to the Council’s
printing needs in terms of the equipment resource required. It was originally
assumed for budget purposes, that new printers would be procured and that
the contract price would actually increase from 2016-17, thus reverting to the
contract price in line with the commencement of the previous contract.
However, following some initial, soft market testing, this now appears unlikely
to be the case and the options outlined below point to reduced costs.
In addition, there is a significant space currently utilised for the print room and
its linked activities, and the potential procurement solution could well free up
some of this space, allowing the opportunity for it to be let out at a commercial
rate as we seek other partners to share the Council’s offices.
2.2
Print Trends
The average amount of combined prints on all three centralised machines in
the print room is currently around 2.2 million copies per annum, a reduction of
42% over the past five years from 3.8 million copies in 2010. However, whilst
the actual volume printed shows a simple downward trend, there are some
other changes in type of printing required, and trend analysis of print
production shows:
 A year on year increase in the amount of high quality, full colour printing
 Printing from digital formats is increasing
 Form production is reducing
 Number of large volume print runs is decreasing
 Number of small volume print runs is increasing
 Innovative requirements are increasing e.g. printing on envelopes, printing
of double sided colour folders, waterproof signage for outdoor use.
 The integrated software has become increasingly important in meeting the
Council’s print requirements as it is both time saving and flexible enough
to manage all the variations of print requests.
135

Increase in printing for Legal and Planning (especially court and appeal
paperwork) which has to be printed quickly and with 100% accuracy.
It is clear that the Council’s print requirements are changing and will continue
to change, especially as Business Efficiency and Digital Transformation
workstreams change working practices.
With printing, it is expected that overall volumes will continue to reduce over
time, but with a continuation of the increased demand for more specialist print
jobs, at least for the medium term.
3
The Case for Procurement
The Council’s current lease for print equipment and related software expires
in December 2015. To extend the lease further would give rise to the risk of
procurement challenge (unless our procurement was already active and the
extension was for a short period only). In addition, even if it was possible to
extend the lease again, this would result in increased risks around the
reliability of older equipment.
From initial soft market testing of existing Framework Contracts (for which the
Council is eligible), it is clear that we can achieve the procurement of a new
print solution to meet current and future printing and scanning needs, whilst
achieving significant savings.
At present, a minimum likely saving has been identified from two procurement
options; for reduced, onsite printing equipment only and then a hybrid solution
combining this with offsite printing and posting of outgoing documents.
There are other options for procurement as well as Framework contracts and
these are discussed elsewhere in the report.
4
Options for Procurement and Change
4.1
Given the position around known, existing demand and likely, future printing
and posting trends, it is proposed that the following issues are considered
within any procurement.
Firstly, officers believe that, as a minimum, any specification for our future
print solution should include the following key features:








black and white and full colour print options
full finishing capabilities
a direct link, via integrated software, for document print preparation
the ability to produce increased quality for specialist/innovative work
an appropriate level of print preparation design/graphics
the ability to print and post offsite for varying numbers of documents
a flexible proportion of charging which is on a “per click” basis; ie actual
volume printed; to ensure the best value for money, especially if as
expected, print volumes fall during the contract period.
appropriate resilience arrangements for loss of service
136
Secondly, the key question of the level of in-house printing capability we wish
to maintain. Officers believe that some needs to be retained, at least for the
medium term, and especially for the more complex, relatively low volume print
jobs. However, as yet, although we know this will change over time, we are
unsure on the level required.
Clearly, the advantage of having document finishing and printing on
immediate call on site is helpful for getting final details correct etc. and is also
faster in terms of turnaround for urgent work than sending off site and then
having to collect or await delivery.
Officers have made initial enquiries of potential contract providers, from
which the following options have become apparent.
4.2
Maintain Print Room In-house
It is clearly possible to keep the existing print room operation, although
changes will be required. Current levels of equipment resourcing would
represent over provision and therefore poor value. However, a fully in-house
service could be provided using a reduced level of printers, which would
effectively take account of the reduced volume of printing required.
An initial quote from our existing provider, within a public sector framework
contract gave a cost of c£50,000 pa if we simply reduced from three to two
printers. This would cover both our known current and future needs and
would give an immediate saving of £24,000 pa against the last five year’s
contract average cost, and approximately £39,000 pa against the current
budget projection from 2016/17 onwards. This option would also include
charging on a “per click” basis for much of the cost, so that if, and as
expected, volumes continue to fall, the cost would reduce further over time.
The disadvantage is that this option may result in over investing for unknown
levels of potentially lower future needs, and whilst the per click charging
mechanism takes some account of these changes, there are likely to be
better options.
4.3
Off Site Printing Option
With better digital communication, we are seeing an increased offer for “print
and post” contracts, where we as the customer send a digital copy of the print
requirement off site, for printing and posting out from a remote site. With the
economies of scale for contractors, such combined services can often be
provided cheaper even than just the cost of normal postage from our offices.
The Council already uses off site printing for Elections material and some
high volume, Revenues and Benefits requirements at peak times, and this
type of arrangement could well be extended to a number of smaller print runs,
thus further reducing the need for on site printing.
The downside of such a fully off site solution, is that for some documents,
especially where there is a need for a fast turnaround of material, offsite
arrangements may lose us flexibility, where documents are needed quickly
and then have to be couriered from an offsite location.
4.4
Hybrid In-house/Off Site Solution
137
Again, through examining known Framework Contracts, it is possible to
procure a solution which has a level of off site printing, with or without posting,
whilst maintaining the ability to print in-house, again at any required level. The
off site service would be accessed through sending completed print jobs
electronically, to a remote printer. Where necessary, the documents would
then also be enveloped and posted off site as required, on a ‘pay as you go’
basis.
It would appear that the most advantageous solution would be to reduce the
in-house printer provision to one machine only. Whilst this will require
significant increases in documents sent off site for printing and mailing, it will
also then drive the additional savings in this area.
In addition, this arrangement can be extended to allow installation of
integrated software on a designated server within the Council’s network, so
that we can control the output of print in-house if, for some documents, this
continued to be the best option.
There is little doubt that this would maximise our flexibility, as we could then
set some initial, minimum levels of onsite and offsite printing but, with all
output on a per click basis, gradually move as our needs change, to maximise
savings.
Initial indications from framework contract suppliers, are that this would
further reduce our contract costs, depending on the specification of the printer
being utilised on site.
In addition, there would be a reduction in postage costs for any documents
printed and posted from an off site location. Typical costs quoted are 36p for
a single paged letter, printed, enveloped and posted. Our existing postage
costs are in the region of £150,000pa and equate to over 50p per item
minimum to mail, plus the cost of paper and envelopes and officer time in
printing and handling. Further work will be undertaken as part of any
procurement to identify these elements of the savings in more detail.
4.5
Procurement Route
A number of appropriate Framework Contracts exist in this area, which the
Council is eligible to use. With primary procurement already having taken
place, the Council can be assured of the ability of the contractor to deliver.
The Framework Contracts, then provides for a mini- tender exercise to ensure
the Council achieves best value, whilst minimising the time and cost to the
Council of the procurement process.
There are also SMEs providing a commercial printing service which may wish
to participate in the proposed procurement but which are not on any relevant
Framework. With one of the priorities in the emerging Corporate Plan being
to support SMEs, we will also seek to procure via a route which opens up
opportunities to SMEs to bid for the work.
The procurement solution could be hybrid, potentially letting the work in lots,
with more than one firm providing one or more types of print services (bulk,
short-run, print and post, etc) with a facility still in the office to provide
138
resilience and for immediate needs.
Such a procurement route would be more complex and will inevitably take
longer than a pure Framework solution and a short extension to the existing
printer contract would need to be secured to cover any additional
procurement period.
5
Financial Implications and Risks
5.1
Financial Implications
The following table provides a summary of the actual for 2014/15, budget for
2015/16 and current forecast for 2016/17 for the reprographics service.
Cost Heading
2014/15
Actual £
58,197
(9)
67,802
18,737
2015/16 Base
Budget £
57,492
500
86,380
19,920
Employee
Transport
Supplies*
Support Service
Charges
Capital Charges
0
12,000
Direct Income
(12,061)
(7,500)
(External)
Net Costs
132,666
168,792
* this heading includes printer lease and paper costs.
2016/17
Projection £
59,311
500
119,308
19,920
12,000
(7,500)
203,539
The 2016/17 projections reflects the expiration of the current printer lease and
maintenance contract and therefore the current projection for the 2016/17
Financial Year, for printing equipment alone, is £89,650 pa.
Soft market testing within existing framework contracts for a reduced in-house
only equipment provision indicate likely minimum annual savings of £39,000.
Additional savings are then likely from increasing the number of documents
printed and posted offsite. This cannot be accurately forecast at this time, as
the savings will depend on the eventual solution procured.
Given that the Council is eligible to use the Frameworks referred to and the
known current volumes of printing, which will only reduce over time, there
would appear to be no reason why these savings could not be delivered from
December 2015. This however, is likely to need to be extended through to
April 2016, to cover the additional time required for an open procurement to
allow better inclusion of SMEs.
5.2
Risks
That the procurement would not be completed on time, meaning that the
Council had no ongoing printing solution.
This could be mitigated by the use of an eligible framework contract solution,
giving potentially, a very short procurement period. Alternatively, a short
139
extension of the existing contract to cover a longer procurement period, would
not give rise to a significant risk of challenge and would allow the inclusion of
SMEs.
That there is insufficient flexibility in the procured solution to take account of
reducing future printing needs.
The mitigation here would be ensuring that a) the solution specifically allowed
for changes in future print volumes and b) that as much of the service as
possible was provided on a ‘per click’, or ‘pay as you go’ basis, to minimise
actual costs as volumes changed.
6
Conclusion
The current print contract is due to expire in December 2015, and
authorisation is therefore required from Cabinet to procure a new print
solution. This can be achieved by a number of procurement options, including
both the use of framework contracts, which the council is eligible to use, and
open procurement options.
A simple reduction in print equipment to reflect current volumes provides an
adequate business case to proceed. However, it is likely that a hybrid
solution, with both on site printing, and off site printing, with postage costs
included, will provide the most economically advantageous solution to the
Council, given the likelihood of changing needs for printed material in the
future. It would appear that this can be delivered either in split lots or as one
overarching contract.
7
Sustainability
Other than a likely reduction in paper use from the wider digital transformation
agenda, there are no sustainability implications directly resulting from the
recommendation or options considered this report.
8.
Equality and Diversity
There are no equality and diversity implications directly resulting from the
recommendations or options considered in this report.
9.
Section 17 Crime and Disorder considerations
There are no Crime and Disorder implications directly resulting from the
recommendations or options considered in this report.
140
7th September 2015
Cabinet
Agenda Item No_____15________
Former Northfield Road surgery premises, North Walsham
Summary:
This report presents the detailed business case for the District
Council purchasing the vacant former Northfield Road surgery
premises from NHS England Property Services and operating
the premises as a shared office facility for voluntary and
community organisations providing services to the local
population in and around North Walsham.
Options:
The report considers whether the Council should proceed with
the purchase of the former Northfield Road surgery building
and operating the premises as a shared office facility for
voluntary and community organisations delivering services in
the North Walsham area.
Conclusions:
The report and accompanying business case concludes that
there is a sound rationale for the Council District purchasing
the property and leasing space within the building to voluntary
and community sector organisations in a shared office
environment.
Recommendations:
That Cabinet:1) Notes the valuation advice received in respect of
the property as detailed in the exempt appendix
2) notes the recommendations of the pre-acquisition
survey commissioned in respect of the premises;
3) receives the detailed business plan prepared in
respect of the property which outlines the capital
and revenue costs associated with purchasing and
operating the building as a shared office
environment, and the potential rental income
stream which might be derived through leasing
space within the building; which together should
inform the offer which the District Council makes to
NHS England Property Services for the freehold
purchase of the former Northfield Road surgery
premises in North Walsham;
4) notes the interest which has already been shown by
organisations in occupying space within the
premises;
5) Based on the above, Cabinet

141
delegates to the relevant Corporate Director
7th September 2015
Cabinet
the power to make an offer to NHS England
Property Services for the Northfield Road
surgery premises with the offer amount
based on the advice provided in the exempt
appendix and to establish a budget to
support the purchase, refurbishment and
operation of the building as a shared office
facility; and

Reasons for Recommendations:
delegates to the relevant Corporate Director
the power to pursue discussions with North
Norfolk Community Transport regarding that
organisation being the lead tenant / occupier
in managing the premises on a day-today
basis in respect of the opening and closing
of the premises, overseeing cleaning and
management of shared meeting / counselling
rooms on behalf of the Council through a
formal Service Level Agreement.
The proposal for the Council to acquire and operate the former
Northfield Road surgery as a shared office environment will
deliver a number of key objectives identified through the
Council’s Corporate Plan, including
Cabinet member(s):

supporting the provision of jobs and
services in North Walsham through
providing shared office accommodation for
key
voluntary
and
community
organisations providing services to local
people in North Walsham;

providing a type of office accommodation
which is in short supply in the North
Walsham area;

contributing to the Council’s asset
investment / commercialisation strategy;

allowing the sale of the North Walsham
council offices building to J D Wetherspoon
to proceed, further supporting regeneration
and investment in the town.
Cllr John Rest, Cabinet member for Corporate
Assets
Contact Officer, telephone number, and
e-mail:
Steve Blatch, Corporate Director
Steve.blatch@north-norfolk.gov.uk
Tel:- 01263 516232
142
7th September 2015
Cabinet
1.0
Summary:-
1.1
At the meeting of the Council’s Cabinet held on 6th July 2015 authority was provided to
officers to register the Council’s interest in acquiring the former Northfield Road surgery
premises in North Walsham with NHS England Property Services, with the objective of
operating the building as shared offices for voluntary and community organisations
providing services in the town.
1.2
The 6th July Cabinet decision was intended to allow the Council to explore over the July /
August period issues relating to the purchase and operation of the property as a shared
office environment through commissioning a condition survey of the property, developing
an understanding of the costs involved in operating the premises as a shared office and
in assessing potential rental income which might be earned through operating the
building for such a purpose; so as to inform any “offer” which the Council might consider
making for the asset, subject to consideration and approval by the September meeting of
Cabinet.
1.3
This report therefore seeks to present this information to Cabinet and recommends that
the Council proceeds and makes an offer for the asset to NHS England Property
Services based on the advice contained in the exempt appendix. If the offer is accepted,
Cabinet is asked to provide authority for the purchase to be pursued and plans
progressed to undertake a programme of works to refurbish the property as detailed in
the report, so as to allow space within the building to be occupied by local voluntary and
community sector organisations from December 2015.
2.0
Background:-
2.1
As detailed in the report to the Cabinet meeting of 6th July 2015, the former Northfield
Road surgery premises in North Walsham was declared surplus to future requirements
by local NHS organisations in March of this year and NHS England Property Services
was therefore asked to market the asset for disposal. Prior to advertising the asset for
disposal on the open market, NHS England Property Services was required to invite
interest from other public sector bodies, with expressions of interest having to be made
by 9th July 2015.
2.2
Following the Cabinet decision of 6th July 2015, officers registered the Council’s potential
interest in acquiring the property with NHS England Property Services and were advised
that the Council’s interest would be considered on an exclusive basis until the end of
September 2015. This has required the Council to prepare a detailed business case
over the July / August period and seek Cabinet approval to proceed with its interest at
this meeting.
2.3
As noted in the 6th July Cabinet report, the former Northfield Road surgery premises
occupies a site of approximately 0.4 hectares (1 acre) to the south of Northfield Road,
approximately 580 metres north-east of North Walsham Market Place (town centre), and
comprises an “H-shaped” single storey brick building providing approximately 700
square metres of floorspace within a large site including parking for approximately 40
vehicles and a large grassed area. A plan showing the location of the property in the
context of North Walsham is attached to this report, as is a floorplan showing the layout
of the building for information.
2.4
Since the 6th July Cabinet meeting officers have commissioned a condition survey of the
building and prepared a detailed business case considering the operating costs and
143
7th September 2015
Cabinet
potential rental income which could be achieved from letting space within the property
and these issues are considered further below.
3.0
The detailed business case:-
3.1
Valuation advice provided in respect of the former surgery building is contained within
the Exempt Appendix to this report. This is to be treated as confidential as the advice
will inform any offer the Council feels able to make for the property to NHS Property
Services.
3.2
Following the Cabinet decision of 6th July 2015 the Council appointed consultants, the
Hamson Group, to undertake a pre-acquisition survey of the property to provide the
Council with information relating to the structural condition of the building and the need
for a programme of works to be undertaken in order that the property can be brought
back into use as a shared office facility.
3.3
The survey report has been reviewed by the Property Services Team and identifies
works with an approximate value of £150,000 as being required in order to bring the
building back into use – including replacement of some doors and windows in the
building, provision of new toilets, internal redecoration throughout and provision of new
floor coverings. The cost of these works is more than originally anticipated and it is
suggested that this information be used by the Council as the basis for negotiation with
NHS England over the purchase price of the building.
3.4
Consideration has also been given to the revenue costs of operating the building as a
shared office to include annual costs of servicing boilers, fire alarms and emergency
lighting, security alarms, utility costs, business rates, insurance, cleaning etc upon which
rental and service charges might be based, details of which are outlined in the exempt
appendix.
3.5
Officers have also written to a number of organisations which might wish to take space
within the building if operated as a shared office for local voluntary and community
organisations, a number of which have expressed a strong interest in occupying space
within the facility in principle, dependent on rent, service charges and terms. A schedule
of the interest received is also provided within the Exempt Appendix to this report, with
interest in up to 70% of the lettable space in the building having been expressed to date.
4.0
Next Steps
4.1
The business case prepared for the acquisition and operation of the former Northfield
Road surgery premises as a shared office environment has involved some financial
modelling which suggests that dependent upon the price the Council has to pay for the
building, careful management of refurbishment costs, control of revenue costs and an
assumed level of occupancy of over 70% of the lettable floorspace; that a viable project
proposal can be demonstrated over a 10 year period.
4.2
Based on the above, it is recommended that the Council submits a formal offer for the
asset based upon the information provided in the exempt appendix to this report to NHS
England Property Services, and thereafter if accepted, commissions a programme of
works to refurbish the property, preparing the building for lease / occupation in early
2016.
5.0
Financial Implications and Risks
144
7th September 2015
Cabinet
5.1
See information contained in the Exempt appendix and comments made at 4.1 above,
which has informed the preparation of a detailed spreadsheet identifying the business
case for the Council to make a formal offer for the building and thereafter operate as a
shared office environment on a commercial (ie unsubsidised) basis.
6.0
Sustainability
6.1
The proposal to establish a shared office environment for voluntary and community
organisations in North Walsham is an innovative proposal which would seek to support
the delivery of value for money services by local third sector organisations providing
services to vulnerable groups and individuals in the North Walsham area and its wider
hinterland. The proposal is therefore founded upon strong sustainable development
principles.
7.0
Equality and Diversity
7.1
If the Council resolved to proceed with this project, it would see the improved delivery of
services to vulnerable people within the North Walsham area by local voluntary and
community sector organisations.
8.0
Section 17 Crime and Disorder considerations
8.1
This report does not raise any issues relating to Crime and Disorder.
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OS MasterMap ®
1:2500
Former Northfield Road Surgery Premises
Northfield Road, North Walsham
North Norfolk District Council
Council Offices, Holt Road, Cromer, Norfolk, NR27 9EN
Tel: 01263 513811 Fax: 01263 515042
146
+USERID+
+TIMEDATE+
© Crown Copyright
and database right
2012.
Ordnance Survey
100018623
Aerial Photos
©Getmapping plc
147
I
Agenda Item No____16________
Compulsory Purchase of 33 Oak Street, Fakenham
Summary:
This report makes the case for compulsory purchase of
the above property, which has been empty in excess of
7 years.
Options
This property has been empty for a considerable
period. Various methods of improving the property
and/or bringing the property back into use have been
explored (see accompanying Exempt Enforcement
Board Briefing), to no avail. The owners continue to
show no willingness to bring the property back into use
and without intervention by the Council the property is
unlikely to be returned to use in the near future.
The local Methodist Church has expressed some
interest in the property but of late that interest has
waned. The property is externally attractive and should
the church not pursue their interest officers consider
that it presents a promising development opportunity for
investors.
This report proposes that the Council applies to the
Secretary of State for a Compulsory Purchase Order
because without such an order the property is unlikely
to be voluntarily returned to use by the owners in the
near future.
Prior to seeking an order, the Council would be
expected to have attempted to reach a voluntary
agreement for sale with the current owners, which
would be based on an independent market valuation.
It may be possible to enter into an arrangement with a
purchaser for a back to back sale following compulsory
purchase. If not, then once acquired, the property
would be sold on the open market by the method likely
to attract greatest interest from potential developers.
Recommendations:
1. That officers are authorised to seek a voluntary
agreement from the owners of 33 Oak Street,
Fakenham, to sell the property to the Council
stating clear timescales for the owners to
respond and to complete the sale.
2. If no such agreement is reached, that officers
are authorised to proceed with an application
for a Compulsory Purchase Order on the
property from the Secretary of State.
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3. That officers are authorised to take necessary
steps for the acquired property to be sold on at
the earliest opportunity with binding conditions
that will make clear the Council’s expectation
for the property be returned to use as soon as
realistically achievable.
4. That the purchase will be funded from capital
resources from which virement of the necessary
funds is authorised.
5. To cap the CPO on costs at the upper limit
identified in the accompanying confidential
briefing paper.
Reasons for
Recommendations:
1. There is an expectation by the Secretary of State
that Councils will seek to reach voluntary
agreement on purchase prior to a Compulsory
Purchase being authorised.
2. To enable the property to be brought back into use,
thus reducing the number of long-term empty
properties in the area and increasing housing
provision.
3. As for 2 above.
4. To make the necessary financial provision for
purchase
5. To ensure CPO remains a cost effective option.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
North Norfolk Empty Homes Policy
Enforcement Board Briefing Note (Exempt Appendix A)
Section 17 Housing Act 1985
Cabinet Member(s) Cllr J
Oliver
Ward(s) affected Fakenham
Contact Officer, telephone number and email: Will Abë, 01263 516080,
william.abe@north-norfolk.gov.uk
1.
Introduction
1.1
The Council’s Empty Homes Policy states that effective use of existing
housing stock is key to achieving the stated ambition that ‘Everyone in North
Norfolk should have the opportunity to buy or rent a decent home at a price
they can afford, in a community where they want to live and work.’
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1.2
There are currently 526 long-term empty properties within North Norfolk.
Long-term empty properties are defined as those empty for 6 months or
more.
1.3
33 Oak Street, Fakenham has been empty since April 2008 when the
previous owner passed away. The beneficiaries of the deceased’s estate are
a son and daughter who do not live in the area.
1.4
In accordance with the Empty Homes Policy, the Council has considered
various actions and made repeated attempts to engage the beneficiaries in
consideration of a range of alternative actions to return the property to
effective use.
1.5
The options considered are set out in the accompanying briefing to the
Enforcement Board (Exempt Appendix A) but the beneficiaries have shown
no inclination to take steps to voluntarily return the property to use and in the
7 years since their mother’s death the son and daughter appear to have
taken no steps to apply for probate of their mother’s estate.
1.6
In July 2014 the owners were served with an improvement notice for the
property under section 215 of the Town and Country Planning Act 1990 in
relation to the property’s condition and appearance which was felt to be
detrimental to its surroundings and to the local amenities.
1.7
When the owners failed to take action in relation to the notice further action
was considered, including the option of an Empty Dwelling Management
Order to renovate and take on management responsibility for the property.
1.8
The Council commissioned a valuation report from Arnolds Keys Estate
Agents and a condition survey which revealed substantial renovation of the
property is required that would make the costs prohibitive for an Empty
Dwelling Management Order.
1.9
Property consultants, acting on behalf of the local Methodist church,
expressed interest in the property because of its proximity their proposed
new housing development on church land that had already received planning
permission.
1.10
However, after brokering discussions between with the beneficiaries’
solicitors and Church representatives in May 2015 over a possible voluntary
sale of the property, recent discussions have indicated that the Church’s
interest in the property has cooled, At the same time, the owner’s solicitors
were still having difficulties in gaining responses from their clients.
2.
The Case for Compulsory Purchase (CPO)
2.1
Section 17 of the 1985 Housing Act states:

A local authority can acquire:
A house, or houses, for the provision of improvement of housing
accommodation (whether by itself or someone else),
but the action must achieve a quantitative or qualitative housing gain
2.2
There is an obvious quantitative gain in compulsorily acquiring this property
to provide housing in North Norfolk, where it is widely accepted that there is
a shortage of housing.
2.3
The long-term nature of the property’s empty status, along with the reticent
nature of the owners and a lack of viable cost effective alternatives, mean a
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Compulsory Purchase Order is the approach most likely to deliver the
Council preferred outcome.
2.4
Compulsory Purchase Orders can take a significant amount of time to
progress to approval stage by the Secretary of State but if approved, give
Council a greater influence on the outcome than other approaches.
2.5
The accompanying Enforcement Board briefing note at Exempt Appendix A
outlines other considerations that would be made by the Secretary of State,
including public interest and human rights, but officers believe that this
property satisfies the criteria on all accounts.
3
Financial Implications and Risks
There will be costs attributable to a CPO. However, based on the
independent valuation and equity in the property, it is likely that most, if not
all, of the costs attributable to a CPO in this case could recovered by the
resale of the property.
The level of costs will depend on relevant objections to the Secretary of
State once we have submitted our CPO and obviously, any Public Inquiry
would make CPO more expensive and extend the process. The costs in the
accompanying briefing are indicative of a worst-case scenario.
The law states that owners whose properties are the subject of a CPO are
entitled to a Basic Home loss payment which is typically 7.5% of the sale
value. However, certain notices, including the open section 215 notice
previously served on the property can negate this payment in many cases.
In the case of the owners accepting a voluntary offer, the Council will only
incur the normal costs of purchase.
Compulsory purchase of this property will see the property being sold to
replace the capital resources used for this scheme. The return to occupation
of the property will also accrue New Homes Bonus to the Council.
The resale of the property will be dependent on the housing market and the
timescale for such will have cost liability implications should there be any
delays.
The cost of the CPO, assuming an Inquiry, will be the purchase price plus
£17,700 - £27,700, depending on the form of Inquiry the Secretary of State
decides if any.
4
Sustainability
The bringing back of empty properties represents a far more sustainable use
of resources and land.
This property occupies a prominent location close to the town centre and
taking action that will lead to the property being refurbished and reoccupied it
will make a significant regeneration contribution to the town.
5
Equality and Diversity
The Courts recognise that English CPO law and procedure complies with the
European Convention on Human Rights. The Council, in pursuing this
course of action, has considered the balance to be struck between individual
rights and the wider public interest. Interference with human rights, if any, is
justified in terms of the benefits that the action would have for the community
as a whole.
151
Empty homes are a wasted resource and have the potential to adversely
affect local housing markets. This proposed course of action will bring on to
the market, a property that has been empty for many years and will create a
housing opportunity that has been denied to households seeking housing.
6
Section 17 Crime and Disorder considerations
Empty homes have a detrimental effect on the visual amenity of the
neighbourhood and can attract vandalism; fly tipping and other forms of antisocial behaviour as well as reducing the value of the adjoining properties.
This proposed course of action will reduce the possibility of unauthorised
entry, the risk of injury and criminal damage and the general unsightliness
issues which have been raised to various departments of the Council.
7
Conclusions
The Council has made significant efforts along the way to engage the owners
and encourage them to take action to bring this property back into use.
Efforts to engage the owners have proved unsuccessful and after
considering and discounting all other legislative options officers believe
Compulsory Purchase Order is the most likely way to ensure this long-term
empty property is returned to use.
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