Agenda and minutes

To receive details of any Member nominated to attend the meeting in place of a Member of the Committee.

Councillor Jagger for Councillor Allcott, Councillor Lawrance for Councillor Murray, Councillor Piotrowski for Councillor Round.

To receive any declarations of interest.

The following declarations of interest were made in respect of Review of Grants to Third Parties 2023/24 (Minute 25):

Councillor Gregson – As Chair of the Elgar Festival

Councillor Hodgson – as a trustee of Lyppard Hub and Worcester Arts Council

Councillor Riaz – As Chair of Worcester Mela.

Up to a total of fifteen minutes can be allowed, with each speaker being allocated a maximum of five minutes, for members of the public to present a petition, ask a question or comment on any matter on the Agenda or within the remit of the Committee.

None.

Of the meeting held on 23^rd May 2023 to be approved and signed.

RESOLVED: That the minutes of the meeting held on 23^rd May 2023 to be approved as a correct record and signed by the Chair.

To receive the minutes of the meeting held on 14^th June 2023.

RESOLVED: That the minutes of the meeting held on 14^th June 2023 be received.

To receive the minutes of the meeting held on 12^th July 2023.

RESOLVED: That the minutes of the meeting held on 12^th July 2023 be received.

That the Committee:

1. Notes the financial challenges and other project risks outlined in this report which impact the Council’s ability to successfully complete the Future High Streets Fund project, the Scala and Corn Exchange performance arts venue, in the terms previously approved;

2. Agrees to stop any further work on the 500-seat auditorium scheme which was being worked up to RIBA Stage 4 design;

3. Authorises officers, with the oversight of the Major Programmes Member Reference Group, to undertake the following actions:

(i)    Commission further work, subject to ongoing dialogue with DLUHC, on a circa 300-seat alternative proposal for an arts venue.  This work will include additional concept design (RIBA Stage 2) and develop further detailed design (RIBA Stage 3);

(ii)    Commence a process of consultation and engagement with all interested stakeholders in the arts community, in order to identify best uses for the spaces within the buildings and assist in the development of a viable and sustainable operating model for the alternative proposals;

(iii)   Make a resubmission or amendment of the planning application in respect of an alternative scheme for an arts venue, informed by consultation with the arts community;

4. Notes that a further report will be brought to Committee in October.

The Committee considered a report on the Scala and Corn Exchange performance arts venue project. The Managing Director presented the report and summarised the background to the project, decisions taken to date and progress since the last report to this Committee in December 2022. The two main issues highlighted were firstly that the costs are now significantly higher than initially proposed, and secondly that the programme timescale for delivery exceeds the agreed programme with DLUHC.

The Committee were informed that negotiations are continuing with the single bidding contractor and the initial tender submission is under detailed review by the Officer team and external consultants. Detailed design has continued on the proposed project to enable the bidding contractors to fully appraise the scheme and inform their response in the tender process.  The Stage 4 proposals have also been reappraised and costed. Further inflationary pressures have been recognised as a result, leading to a further increase in the cost plan.

The Council will be unable to complete the construction work on the originally proposed performance venue by March 2024.  An extension to the programme has been requested and a response is awaited. The DLUHC is likely to make a formal announcement on extensions of time for FHSF projects across the country in the next few weeks.

Given this information and the challenges in delivering a financially viable venue that provides a new 500 seat auditorium, the Managing Director advised that the Council must now weigh up the project risks in detail in determining the future development of the buildings.  The key risks were set out in the report and these were explained at the meeting.

In light of the Officer analysis and to avoid additional unnecessary design and delivery cost, it was now deemed necessary to stop work on the proposal to deliver a 500 seat auditorium and to undertake a detailed appraisal (including stakeholder engagement) of the project to understand the likely facilities that can be delivered within the FHSF budget. The preferred option is to continue development work to see if it remains feasible, with the time and budget remaining, to create a new use for the buildings. Alternative options for using the FHSF grant were summarised in the report. These alternative options will form part of the further design work proposed under the preferred option.

All options will be reviewed again when the project is reported back to Committee in October.

Committee Members proceeded to debate the report and recommendations at length. Some Members were concerned that the financial gap has become too great to proceed as originally planned and the view was expressed that the Council needs to undertake a review to establish how this position has been reached. The review will help in terms of lessons learned and informing future direction of the project.

The view was also expressed that the Council should proceed to find a solution as to how best to use the remaining grant funding. The importance of engaging with the local arts community  ...  view the full minutes text for item 23.

That the Committee:

1.   notes the progress made to date towards closing the identified budget gap of £1.7m 

2.   considers the options identified in the report and specifies those to be implemented in order to close the projected budget gap of £2.25m for 2024/25:

a.Saturday skip service - £50,000

b.Sponsorship - £10,000

c.City Life Magazine - £18,000

d.Guildhall Sunday closing - £10,000

e.Solar Panels at Perdiswell & SMG - £41,600; and

3.   recommends to Council an adjustment to the capital programme of £710,240 to enable progress on energy cost reduction works on Council assets.

The Committee considered a report on progress made to date towards closing the budget gap of £1.7m which had been identified in the Medium Term Financial Plan (MTFP) published at Council on 21^st February 2023. The Corporate Director – Finance and Resources presented the report. He explained that a savings plan has been developed in accordance with the process which was agreed at the last meeting of the Committee. This report set out a number of proposals to support the savings plan. These items were for discussion now. Further proposals will be brought to subsequent meetings of the Committee.

The proposals were:

Details of each proposal including the rationale and impact, were set out in the report.

The report also addressed progress to date with the voluntary redundancy scheme which had been agreed at the last meeting.

The report recommended that each of these proposals be agreed and implemented as soon as possible to minimise the impact on reserves of the planned in-year overspend.

Officers responded to questions and comments from Committee Members.

In the ensuing discussion, the following main points were made:

·         The proposal to cease Saturday skips has been put forward following consultation with Group Leaders. There is evidence of a downward trend in usage. This provision can be reconsidered at a future date if there is evidence of a demand.

·         With regard to roundabout advertising/sponsorship, a proposal was made that the Council should not use this to promote organisations which do not support the Council’s net zero targets.

RESOLVED: That the Committee agree:

1.  to note the progress made to date towards closing the identified budget gap of £1.7m 

2.  that the options identified in the report as follows be implemented in order to close the projected budget gap of £2.25m for 2024/25:

a.   Saturday skip service - £50,000

b.   Sponsorship - £10,000

c.   City Life Magazine - £18,000

d.   Guildhall Sunday closing - £10,000

e.   Solar Panels at Perdiswell & SMG - £41,600;

3.  to recommend to Council an adjustment to the capital programme of £710,240 to enable progress on energy cost reduction works on Council assets; and

4.   to delegate authority to the Corporate Director – Finance and Resources in consultation with the Chair and Vice-Chairs of the Committee to agree a policy for advertising on roundabouts which supports the Council’s measures to reduce carbon emissions.

There was an adjournment following consideration of this item.

1.     To reduce the level of grants to third parties from £605,980 by £59,430 from 2024/25 and by £113,320 over the remaining life of the current City Plan as part of the MTFP cost reduction exercise;

2.     To place current grant funding to Worcester Theatres and Lyppard Grange Hub on the same basis as Worcester Community Trust to support access to services through use of the Council’s own assets;

3.     To change the existing process for managing small grants to a call-in period and incorporate a system for assessing applications;

4.     To pause grant funding from reserves once existing commitments have been met; and

5.     To publish an annual events programme and to make available an annual budget allowance of £25,000 to meet in-year applications compatible with the programme as they arise.

The Committee considered a report on proposals which had been developed following a review of grants to third parties. The Corporate Director – Finance and Resources presented the report and explained that grants to third parties represents an area of discretionary spending. The Council supports a number of organisations through various contributions. Next to employee costs, this represents the largest separate area of Council spending. It is difficult to track and ensure that it continues to align with the Council’s priorities. A simplified process for making grants to third parties was therefore required.

The report set out the following proposals:

In addition:

·           Funding for Worcester Theatres and Lyppard Grange Hub would transfer to Service Level Agreements as ongoing funding, in the same way as WCT and WHABAC funding;

·           The Small Grants pot of £45,000 funded by UKSPF will be subject to an annual call for bids;

·           The £25,000 ‘Corporate Events’ pot will be distributed on a first come-first- served basis within the existing arrangements;

·           The annual contributions to Three Choirs Festival of £8,600 and to Worcester Arts Council of £3,500 will remain;

·           All other applications for third party funded to be subject to these arrangements or, in exceptional circumstances, to Committee approval.

The report explained each proposal including the rationale and impact.

In the ensuing discussion, the following main points were made:

·         Proposals for a scoring system for grant applications can be brought back to the Committee for consideration.

·         Officers can look to develop metrics to evidence what grant have delivered in terms of social value to the local community.

 RESOLVED: That the Committee agree:

1.  To reduce the level of grants to thirdparties from £605,980 by £59,430 from 2024/25 and by £113,320 over the remaining life of the current City Plan as part of the MTFP cost reduction exercise;

2.  To place current grant funding to Worcester Theatres and Lyppard Grange Hub on the same basis as Worcester Community Trust to support access to services through use of the Council’s own assets;

3.  To change the existing process for managing small grants to a call-in period and incorporate a system for assessing applications;

4.  To pause grant funding from reserves once existing commitments have been met; and

5.  To publish an annual events programme and to make available an annual budget allowance of £25,000 to meet in-year applications compatible with the programme as they arise.

That the Committee:

1.     notes the financial monitoring details including budget variances and performance indicators for the 4th quarter ended 31 March 2023;

2.     approves the write-offs of Council Tax and Business Rates for the quarter; and

3.     agrees the balances on earmarked reserves at 31 March 2023.

The Committee considered the annual and quarter 4 performance report. The Corporate Director – Finance and Resources presented the report and highlighted the main points.

In summary, a balanced budget could only be achieved through a transfer from the Business Rates Risk Reserve of £0.434m, leaving a balance in the reserve of £1.225m. The report summarised the main elements of the year-end deficit at Q4.

Council Tax and Business Rates write-offs proposed for Q4 were £105k.

The summary of earmarked reserves showed a year-end position of £8.697m, of which £1.455m is yet to be committed to a specific project or use and £1.642m is in income and business rates risk reserves. In addition, there is £1.627m of funds relating to S106 schemes and reserves of £0.592m in relation to the Community Infrastructure Levy.

RESOLVED: That the Committee agree:

1.   to note the financial monitoring details including budget variances and performance indicators for the 4th quarter ended 31 March 2023;

2.   to approve the write-offs of Council Tax and Business Rates for the quarter; and

3.   the balances on earmarked reserves at 31 March 2023.

1.     That the Committee reviews the financial monitoring details including budget variances and performance indicators for the 1st quarter ended 30^th June 2023; and

2.     That the Committee approves the write-offs of Council Tax and Business Rates for the quarter.

The Committee reviewed the financial monitoring details including budget variances and performance indicators for the 1^st quarter ended 30 June 2023. The Corporate Director – Finance and Resources presented the report and summarised the reasons for the key budget variances. The report also highlighted proposed write-offs for Quarter 1.

RESOLVED: That the Committee agree to:

1.  note the financial monitoring details including budget variances and performance indicators for the 1st quarter ended 30th June 2023; and

2.  approve the write-offs of Council Tax and Business Rates for the quarter.

That that Committee approves an amendment to the Worcester City Council Fees & Charges 2023-24, by applying a reduced fee of £350.00p for ‘Cremation Only - Non Attendance’ with immediate effect.

The Committee considered a report on the fee for “Cremation Only – Non-Attendance.” The Corporate Director – Operations, Homes and Communities presented the report and explained that it was considered appropriate to reduce the fee of £529.00p which had been approved by the Council in February 2023 and set it to a level that will encourage local funeral directors and families to choose their local crematorium to hold a funeral. This would provide local funeral directors and local families with a more affordable offer at Astwood and avoid them having to travel outside of the city to hold funerals.

The proposal was to reduce the ‘Cremate Only – Non-Attendance’ charge to £350.00 with immediate effect. This charge has been developed through engagement with local funeral directors and would ensure that the fixed and variable costs in providing this particular service will continue to be covered. The proposed fee is lower than most of the neighbouring crematoria both within and outside Worcestershire.

Committee Members expressed support for the proposal.

RESOLVED: That that Committee approve an amendment to the Worcester City Council Fees & Charges 2023-24, by applying a reduced fee of £350.00p for ‘Cremation-Only - Non Attendance’ with immediate effect.

1.     That Policy and Resources Committee note the details included within the Treasury Management Annual Report for 2022/23; and

2.     That the Treasury Management Annual Report for 2022/23 is referred to full Council for information, in accordance with the CIPFA Treasury Management Code.

The Committee considered the Treasury Management Annual Report for 2022/23. The Corporate Director – Finance and Resources presented the report and summarised the main points. In accordance with the CIPFA Treasury Management Code, the Report would be referred to full Council for information.

RESOLVED: That the Committee agree to:

1. note the details included within the Treasury Management Annual Report for 2022/23; and

2. refer the Treasury Management Annual Report for 2022/23 to full Council for information, in accordance with the CIPFA Treasury Management Code.

That the Committee:

1.     Notes the progress in year 2 to implement the Equality Diversity and Inclusion Strategy and the actions planned for the rest of the year; and

2.     Notes the demographic data for Worcester from the Census 2021, set out in the “State of the City” report in Appendix 1.

The Committee received the annual report on the progress of implementing this Strategy. The Corporate Director – Planning and Governance presented the report, which reflected on the successes and challenges so far and provided a summary of actions against each of the four Excellence Aims. Richard Morris, Strategy Performance and Development Officer, was also in attendance and the Officers responded to questions and comments from Committee Members.

The report also contained information on data from the Census 2021 in respect of the characteristics and make-up of the population of Worcester. The Corporate Director advised that there is scope for an All-Member workshop to explore the data in more detail.

The Committee also considered a supplemental report on a Government consultation launched on 18 July 2023 on a Disability Action Plan. It was recommended that the Corporate Director should work with the Member Champion for Equality, Diversity and Inclusion, and the staff EDI steering group, to produce a draft response to this consultation, which will be shared with the Chair and Vice-Chairs of the Committee for their views, before it is submitted. Officers will attend the next Healthy Worcester meeting to discuss the Plan before submitting the Council’s response.

RESOLVED: That the Committee agree to:

1.  note the progress in year 2 to implement the Equality Diversity and Inclusion Strategy and the actions planned for the rest of the year;

2.  note the demographic data for Worcester from the Census 2021, set out in the “State of the City” report in Appendix 1 to the report; and

3.  delegate authority to the Corporate Director - Planning and Governance in consultation with Chair and Vice-Chairs of the Committee to submit a response to the Government’s consultation on a Disability Action Plan.

That the Policy and Resources Committee notes the Council’s quarter 1 performance for 2023/24.

The Committee considered the quarter 1 performance report for the Policy and Resources Committee. The Corporate Director – Finance and Resources presented the report and Officers responded to questions from Members.

In the ensuing discussion, the following main points were made:

·         In light of the earlier discussion, it was suggested that status of the Future High Streets Fund - Performance Arts Centre should not be green.

·         Towns Fund Community Skills was raised, as it has not previously been considered at this Committee. The Corporate Director explained that monitoring progress of all Towns Fund projects has been devolved to the relevant policy committees. Summary progress reports can be brought to each committee.

·         It was suggested that consideration should be given to making EDI training mandatory for all staff.

RESOLVED: That the Committee agree to note the Council’s quarter 1 performance for 2023/24.

That the Committee agrees appointments to the outside bodies listed in paragraph 3.1 of this report.

The Committee considered a report on appointments to various outside bodies. The Corporate Director – Planning and Governance presented the report and explained that some appointments were deferred at the last meeting in order to establish more information about the body or the role. In addition, there was one new appointment to consider in respect of a partner organisation and other appointments to consider following resignations.

The Committee considered the recommendations from Group Leaders and proceeded to make appointments.

RESOLVED: That the Committee agree the following appointments:

Which in the opinion of the Chair is of sufficient urgency as to warrant consideration.

None.

The Committee is invited 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 items of business on the grounds that they involve the likely disclosure of information as defined in Schedule 12A of the said Act.

RESOLVED: 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 it involves the likely disclosure of information as defined in Schedule 12A of the said Act.

To receive the minutes (exempt items) of the meeting held on 12^th July 2023.

RESOLVED: That the minutes (exempt items) of the meeting held on 12^th July 2023 be received.