## Extraordinary Meeting

# Of Cabinet

## Agenda

Meeting to be held in the Ceres Suite, Worksop Town Hall, S80 2AH 
on Tuesday, 8th January 2019 
at  6.30pm 
(Please note time and venue)
Please turn mobile telephones to silent during meetings. 

In case of emergency, Members/officers can be contacted on the Council's mobile telephone: 07904 001705. 

In accordance with the Openness of Local Government Bodies Regulations 2014, audio/visual recording and photography at Council meetings is permitted  
in accordance with the Council's protocol 'Filming of Public Meetings'. 

## Cabinet Membership 2018/19

 
Councillors:  
K Dukes, J Evans, S A Greaves, J A Leigh, D G Pidwell, S Scotthorne,      
S E Shaw and J White  
 Substitute Members: None 
 
Cabinet Members: 
 
Policy, Strategy and Communications:  Councillor S A Greaves 



Economic Development:  
 
Councillor J White  


Corporate Services:  
 
 
Councillor K Dukes  


Finance: 


Councillor J Evans 


Health and Community Wellbeing: 
Councillor S E Shaw  
Housing: 


Councillor S Scotthorne 
Neighbourhoods:  
 
 
Councillor J A Leigh 
Transport and Infrastructure: 
 
Councillor D G Pidwell 


Advisory Members: Councillor H M Brand  
(Non-Voting) 
Liaison Members: 
Councillors H Burton, T Critchley, S Fielding and T Taylor 

(Non-Voting)  
 
 
Quorum: 
 
2 Members 
 
Lead Officer for this Meeting Mr N Taylor Administrator for this Meeting 
 
Cara Hopkinson  
 

## Extraordinary Meeting Of Cabinet 8Th January 2018 Agenda

1.
APOLOGIES FOR ABSENCE
2.
DECLARATIONS OF INTEREST BY MEMBERS AND OFFICERS *
(Members' and Officers' attention is drawn to the attached notes and form) (pages 5-6) (a)
Members 
(b)
Officers 
3.
FORWARD PLAN * (pages 7- 10)

## Section A **– Items For Discussion In Public** Key Decisions

4.
REPORT(S) OF THE CABINET MEMBER - CORPORATE SERVICES * (a)
Council Tax Reduction Scheme 2019/20 (Key Decision No. 720) (pages 11 - 16) 
5.
REPORT(S) OF THE CABINET MEMBER - FINANCE *
(a) (b) (c) (d) (e) (f)
 
General Fund Capital Programme 2019/10 - 2023/24 (Key Decision No. 714)  
(pages  17 - 28) Housing Capital Programme 2019/20 - 2023/24 (Key Decision No. 724)  
(pages 29 - 36) Housing Revenue Account Budget 2019/20 and Future Years to 2023/24 (Key Decision No. 725) (pages 37 - 46) Medium Term Financial Plan 2019/20 - 2023/24 (Key Decision No. 726) (pages 47 - 64) 
Calculation of Council Tax Base 2019/20 (Key Decision No. 727) (pages 65 - 72) Property Asset Management Plan 2019/20 Update (Key Decision No. 728) (pages 73 - 84)

## Other Decisions

None 

## Exempt Information Items

The press and public are likely to be excluded form the meeting during the consideration of the following items in accordance with Section 100A(4) of the Local Government Act 1972. 

## Section B - Items For Discussion In Private Key Decisions

None 

## Other Decisions

6.
REPORT OF THE CABINET MEMBER - HOUSING* (a) 
Housing Service Review (pages 85 - 95) 
* 
Report attached

## Notes:

1.
The papers enclosed with this Agenda are available in large print if required.
2.
Copies can be requested by contacting us on 01909-533252 or by e-mail cara.hopkinson@bassetlaw.gov.uk

## Effective Date Of Decisions

1.
All key decisions made at this meeting will be referred to the Overview and Scrutiny Committee and will not come into force until that Committee has considered the decisions and has decided not to "call in" any decision.
2.
A copy of all non key decisions will be sent to all Members of the Council and any four Members may then, within five days, request that any particular decision be referred to the Overview and Scrutiny Committee - in which case the particular decision will not come into force until that Committee has considered the decision and has decided not to "call in" the same.   If no such request is made decisions will come into effect at the end of the five day period.

## Declaration Of Interest

 
COMMITTEE ……………………………………………………………………………… 
 
DATE …………………………………………………………………….. 
NAME OF MEMBER : ……………………………………………………………………………… Type of Interest 1. 
Disclosable Pecuniary 
2. 
Non Pecuniary 
 
Agenda Item 
(1 or 2) 
No. 
REASON * 
Type of Interest 


Signed 

 
Note: 
 
* 
When declaring an interest you must also state the nature of your interest. Completion of this form is to aid the accurate recording of your interest in the Minutes.  The signed form should be provided to the Minuting Clerk at the end of the meeting. 

 
A nil return is not required. It is still your responsibility to disclose any interests which you may have at the commencement of the meeting and at the commencement of the appropriate Agenda item. 

 

## Declaration Of Interests How To Use This Form

There are now only two types of Declaration of Interest: Disclosable Pecuniary Interests  
 
) 
Details can be found in the Councillors  


) 
Code of Conduct which is contained in 


) 
the Council's Constitution (a summary is 
Non Pecuniary Interests  
 
 
) 
printed below) 

 Upon receipt of the attached form you will need to enter the name and date of the Committee and your own name. By looking at the Agenda you will no doubt know immediately which Agenda Items will require you to make a Declaration of Interest. Fill in the Agenda Item number in the first column of the form. Enter the subject matter and any explanations you may wish to add in the second column. 

In the third column you will need to enter **either** if you are declaring a disclosable pecuniary interest, or a non pecuniary interest. The form must then be signed and dated. Please remember that if during the actual meeting you realise that you need to declare an interest on an additional Agenda Item number please simply amend the form during the meeting. The form must be handed into the Committee Administrator at the end of the meeting. NB. 

The following is a summary prepared to assist Members in deciding at the actual meetings their position on INTERESTS it is not a substitute for studying the full explanation regarding INTERESTS, which is contained in the Council's Constitution and the Code of Conduct for Councillors, which is legally binding. Members and Officers are welcome to seek, PREFERABLY WELL IN ADVANCE of a meeting advice from the Council's Monitoring Officer on INTERESTS. 

| Disclosable Pecuniary Interests                                      | Action to be Taken     |
|----------------------------------------------------------------------|------------------------|
| Must disclose to the meeting                                         |                        |
| - existence of the interest                                          |                        |
| - the nature of the interest                                         |                        |
| - withdraw from the room                                             |                        |
| - not seek improperly to influence                                   |                        |
| a decision on the matter                                             |                        |
| May relate to employment, office, trade, profession or vocation      |                        |
| carried on for profit or gain                                        |                        |
| May relate to sponsorship                                            |                        |
| May relate to contracts                                              |                        |
| May relate to interests in land                                      |                        |
| May relate to licences to occupy land                                |                        |
| May relate to corporate tenancies                                    |                        |
| May relate to securities                                             |                        |
|                                                                      |                        |
| Non Pecuniary Interests                                              | Action to be Taken     |
|                                                                      |                        |
| Must                                                                 |                        |
|                                                                      |                        |
| disclose to the meeting                                              |                        |
| - existence of the interest                                          |                        |
| - the nature of the interest                                         |                        |
| - not seek improperly to influence                                   |                        |
| a decision on the matter.                                            |                        |
|                                                                      |                        |
| May relate to any body of which you are a member or in a             |                        |
| position of general control or management and to which you are       |                        |
| appointed or nominated by the Council                                |                        |
| May relate to any person from whom you have received a gift or       |                        |
| hospitality with an estimated value of at least £25                  |                        |
| A Member may also have a non pecuniary interest where a              |                        |
| decision in relation to that business might reasonably be regarded   |                        |
| as affecting wellbeing or the wellbeing of other council tax payers, |                        |
| or ratepayers or inhabitants in the electoral division or ward, as   |                        |
| the case may be, affected by the decision.                           |                        |
| .                                                                    |                        |
| (Note - there are special provisions relating to "Sensitive          |                        |
| Interests" which may exclude the above provisions in certain         |                        |
| circumstances.)                                                      |                        |

 

## Bassetlaw District Council - Forward Plan 2018/19 - Cabinet/Council

CABINET 
14th February 2019 
EXTRAORDINARY 
CABINET 
8th January 2019 
EXTRAORDINARY 
COUNCIL 
31st January 2019 
COUNCIL 
7th March 2019  
(Budget) Treasury Management Policy and Strategy (Key Decision No. 712) Cabinet Area: Finance 
General Fund Capital Programme 2019/20 - 20/23/24 (Key Decision No. 714) Cabinet Area: Finance 
Delivery of Leisure and Well-Being Objectives (Key Decision No.736) CONFIDENTIAL 
Cabinet Area: Neighbourhoods 
General Fund Capital Programme 2019/20 - 2023/24 (Key Decision No. 714) 
Cabinet Area: 
Finance 
General Fund Revenue (Key Decision No. 729) Cabinet Area: Finance 
Council Tax Reduction Scheme 2019/20 (Key Decision No. 720) Cabinet Area: Finance 
Council Tax Reduction Scheme 2019/20 (Key Decision No. 720) 
Cabinet Area: 
Corporate Services  
Land at Radford Street, Worksop (Key Decision No. 585) 
Cabinet Area: Economic 
Development 
Housing Capital Programme 2019/20 - 2023/24 (Key Decision No. 724) Cabinet Area: Finance 
Review of Polling Districts & Polling Places (Key Decision No.734) 
Cabinet Area: 
Corporate Services 
Housing Capital Programme 2019/20 - 2023/24 (Key Decision No. 724) 
Cabinet Area: 
Finance 
Leverton Road, Retford (Key Decision No. 572) 
Cabinet Area: Economic 
Development 


Housing Revenue Account Budget 2019/20 and Future Years to 2023/24 (Key Decision No. 725)  Cabinet Area: Finance 
Housing Revenue Account Budget 2019/20 and Future Years to 2023/24 (Key Decision No. 725)  Cabinet Area: Finance 
Care Leavers Council Tax Discount Scheme - Review (Key Decision No. 689) 
Cabinet Area: Corporate Services 
19th March 2019 
CABINET 
4th June 2019 
Contract (Key Decision No. 386) CONFIDENTIAL 
Cabinet Area: 
Neighbourhoods 
Performance Indicator Outturn Report - Q4 2018/19 (Key Decision No. 735) 
Cabinet Area: Policy, Strategy and 
Communications 
Performance Indicator Outturn Report - Q3 2018/19 (Key Decision No. 733) 
Cabinet Area: Policy, Strategy and 
Communications 
 
CABINET 
14th February 2019 
EXTRAORDINARY CABINET 
8th January 2019 
EXTRAORDINARY COUNCIL 
31st January 2019 
COUNCIL 
7th March 2019  
(Budget) 


Medium Term Financial Plan 2019/20 - 2023/24 (Key Decision No. 726) 
Cabinet Area: Finance 
Medium Term Financial Plan 2019/20 - 2023/24 (Key Decision No. 726) 
Cabinet Area: 
Finance 
Worksop Creative Village - Update (Key Decision No. 698) 
Cabinet Area: Economic 
Development 


Council Tax Base 2019/20 (Key Decision No. 727) Cabinet Area: Finance 
Council Tax Base 2019/20 (Key Decision No. 727) 
Cabinet Area: 
Finance 
Harworth and Bircotes Town Centre Growth (Key Decision No. 700) 
Cabinet Area: Economic 
Development 


Property Asset Management Plan 2019/20 (Key Decision No. 728) Cabinet Area: Finance 
Empty Homes Strategy (Key Decision No. 703) 
Cabinet Area: 
Housing 
Property Asset Management Plan 2019/20 (Key Decision No. 728) 
Cabinet Area: 
Finance 


Treasury Management Policy and Strategy (Key Decision No. 712)  
Cabinet Area: Finance 
Housing Service Review (Key Decision No. 738) 
Cabinet Area: Housing 
CONFIDENTIAL 


Digital Update (Key Decision No. 715) 
Cabinet Area: Corporate Services 
CABINET 
19th March 2019 
CABINET 
4th June 2019 
CABINET 
14th February 2019 
EXTRAORDINARY CABINET 
8th January 2019 
EXTRAORDINARY COUNCIL 
31st January 2019 
COUNCIL 
7th March 2019  
(Budget) 


General Fund Revenue (Key Decision No. 729) Cabinet Area: Finance 


Capital Investment Strategy (Key Decision No. 731) Cabinet Area: Finance 


The Mayflower 400 Legacy Oaks Project (Key Decision No. 737) 
Cabinet Area: Economic 
Development 


Grounds Maintenance Resourcing  
Cabinet Area: Neighbourhoods 
CONFIDENTIAL 
CABINET 
19th March 2019 
CABINET 
4th June 2019 

## Cabinet

The voting members of the Cabinet, which is the District Council's Executive, are shown alongside their area of responsibility.  They are all contactable in writing to Bassetlaw District Council, Queen's Building, Potter Street, Worksop, Notts, S80 2AH, or by telephoning or emailing as shown below: 

| COUNCILLOR                  | AREA OF RESPONSIBILITY              | CONTACT                                                           |
|-----------------------------|-------------------------------------|-------------------------------------------------------------------|
| Councillor Simon Greaves    | Policy, Strategy and Communications | Tel: 07949 129 239  Email: simon.greaves@cllr.bassetlaw.gov.uk    |
| Councillor Kevin Dukes      | Corporate Services                  | Tel : 07887 657 936   Email: kevin.dukes@cllr.bassetlaw.gov.uk    |
| Councillor June Evans       | Finance                             | Tel: 07501 384 492   Email: june.evans@cllr.bassetlaw.gov.uk      |
| Councillor Julie Leigh      | Neighbourhoods                      | Tel : 07432 674 846  Email: julie.leigh@cllr.bassetlaw.gov.uk     |
| Councillor David Pidwell    | Transport and Infrastructure        | Tel: 07908 272 984  Email: david.pidwell@cllr.bassetlaw.gov.uk    |
| Councillor Susan Shaw       | Health and Community Well-being     | Tel : 07588 626 763  Email: susan.shaw@cllr.bassetlaw.gov.uk      |
| Councillor Steve Scotthorne | Housing                             | Tel: 07805 791 799  Email: steve.scotthorne@cllr.bassetlaw.gov.uk |
| Councillor Jo White         | Economic Development                | Tel : 07940 001 710  Email: jo.white@cllr.bassetlaw.gov.uk        |
|                             |                                     |                                                                   |
|                             |                                     |                                                                   |

# Cabinet 8Th Janaury  2019

## **Report Of The Director Of Corporate Resources** Council Tax Reduction Scheme 2019/20

Cabinet Member:  Finance Contact:  David Hill Ext:  3174 

## 1. Public Interest Test

 
1.1 
The author of this report, David Hill, has determined that the report is not confidential. 

## 2. Purpose Of The Report

 2.1  
To set the Council's scheme for Council Tax Reduction (CTR) for 2019/20. This must 
be in place, following Council approval by 11th March 2019, to come into effect from 
1st April 2019.  

## 3. Background And Discussion

 3.1     Amendments to section 10 of the Local Government Finance Act 2012, includes the 
requirement for each billing authority to set a local scheme, by the 11th March each 
year, for Council Tax Reduction, by way of discounts for residents in "financial need". 
 
3.2 
 The Secretary of State has the powers to prescribe by regulations, additional 
requirements that must or must not be included in a scheme. These are contained within The Council Tax Reduction Schemes (Prescribed Requirements) (England) Regulations 2012 and the Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) Regulations. These regulations are updated annually and include provision to allow for the annual uprating of allowances and premiums, without this being classed as a material change to the scheme. 

## The Current Council Tax Scheme (2018/19)

 3.3 
The main features of the current CTR scheme for working-age residents are: 
 
 
The scheme identifies each class of person entitled to a reduction. The current 
scheme has the following classes and maximum CTR amounts: 



Maximum 
CTR 
100% 
Class A 
Pensioner-age whose income is less than the applicable amount 
100% 
Class B 
Pensioner-age whose income is greater than the applicable amount 
| 100%                            | Class C    | Pensioner-age - alternative maximum council tax      |
|---------------------------------|------------|------------------------------------------------------|
| reduction (second adult rebate) |            |                                                      |
| 88%                             | Class D    | Working-age whose income is less than the applicable |
| amount                          |            |                                                      |
| 88%                             | Class E    | Working-age whose income is greater than the         |
| applicable amount               |            |                                                      |
| Not                             | Class F    | Does not apply to the Bassetlaw scheme - previously  |
| working-age second adult rebate | applicable |                                                      |
| 95%                             | Class G    | Working-age who are protected under this scheme      |
| (vulnerable class)              |            |                                                      |
|                                 |            |                                                      |

 
 
The current definition of a person within Class G is where the claimant or partner 
qualifies for the Severe Disability Premium in the calculation of Housing Benefit or other Department for Work and Pensions (DWP) benefits. The proposals in 
paragraph 3.8 below, address the anomaly that may occur once this group migrates to Universal Credit. 
 
 
A restriction across all working age groups to the maximum liability for a Band C 
property. 
 
 
The Bassetlaw Scheme also includes a full disregard of War Disablement Benefit, 
War Widows/Widowers Pension and Armed Forces Independent Payment, agreed under the Council's Housing Benefits and Council Tax Reduction (disregard of income) Local Scheme Policy. 

## Proposed Ctr Scheme 2019/20

 
3.4 
Following a full consultation exercise, it is proposed that the working age schemes set 
out in paragraph 3.3 above, remain unchanged (subject to any statutory changes within the 
Council 
Tax 
Reduction 
Schemes (Prescribed 
Requirements) 
(England) 
(Amendment) Regulations). 3.5    The maximum Council Tax Reduction of 88% of the liability (net of all other discounts) 
to remain the same. 
 
3.6    The maximum Council Tax Reduction of 95 % of the liability (net of all other discounts) 
for the vulnerable (class G) to remain the same. 3.7    All working age groups (class D, E and G) to remain subject to a restriction in the 
Council Tax charge used, to that of a band C property. 3.8 
The current criteria to be placed in Class G and therefore attract a higher level of CTR, 
will require a minor change to the scheme due to the Severe Disability Premium no longer existing in Universal Credit. The Government has recently announced that those who would have lost SDP due to migrating to Universal Credit, will instead receive a transitional payment. It is therefore proposed to add this to section 18A of the scheme to   ensure that this vulnerable group remains in class G. 3.9   To amend  Part 3 ,11(1) of Schedules 1-10– "Procedure for applying for a discretionary 
reduction", to allow the electronic Universal Credit form provided by the Department for Work & Pensions, to be accepted as a claim for Council Tax Reduction. 3.10  To amend Part 10 section 37 (1) which states that,  "in determining the income of the 
applicant who has an award of Universal Credit, the authority must use the  calculation or estimate of the income of the applicant (or partner) made for the purposes of determining the award of Universal credit."  
 
There are some cases where the data, for example earnings, is incorrect in the 
Universal Credit calculation, so the assessment of CTR entitlement could therefore also be incorrect. It is proposed to amend the wording of this section of the local scheme, to allow the Local Authority to correct such errors, provided the claimant supplies 
adequate, documentary evidence, and that they take steps to ask the DWP to correct their data. 

## 4. Implications A) For Service Users

 
The implications of the proposals in this report are positive for service users in that the 
Council has managed to preserve the current scheme for a further year.  
 
 
Those who migrate to Universal Credit during 2019/20 will have some protection 
against delays and duplication in applying for CTR, as the proposals will allow the data they provide to the DWP, to be accepted as a CTR claim. In addition, those currently in the vulnerable group would be protected if they lost their Severe Disability Premium due to a move to Universal Credit.  


As there are no changes to the income disregards, or family premium this year, this 
also protects families from further increases during an uncertain time of further welfare reforms, and keeps incentives to work, with generous earnings disregards. 

## B) Strategic & Policy



As central Government grant is removed further in 2019/20 and beyond, there may be 
implications on the budget strategy.                                                                                                          
  
 
c) 
Financial - Ref: 19/499 
 

## Funding Arrangements Estimated Cost Of The Current Scheme (2018/19)

| 2018/19                              | estimated    | Claim Group    |
|--------------------------------------|--------------|----------------|
|                                      |              |                |
| expenditure                          |              |                |
|                                      |              |                |
| Caseload                             |              |                |
|                                      |              |                |
| Pension-age (prescribed scheme)      | 3,721        | £3.60m         |
| Vulnerable group (severely disabled) | 873          | £0.83m         |
| Working-age employed                 | 652          | £0.39m         |
| Working-age other                    | 2,676        | £2.50m         |
|                                      |              |                |
| CTR SUB TOTAL                        | 7,922        | £7.32m         |
| Discretionary CTR Hardship Fund      |              | £0.035m        |
|                                      |              |                |
| TOTAL                                | £7.36m       |                |

## Estimated Cost Of Proposed Scheme 2019/20 (With A Total Council Tax Increase Of 4.99%)

| 2019/20                              | estimated    |
|--------------------------------------|--------------|
|                                      |              |
|                                      |              |
| Claim Group                          |              |
|                                      |              |
| Estimated                            |              |
| Caseload 2019/20                     | expenditure  |
| Pension-age (prescribed scheme)      | 3,731        |
| Vulnerable group (severely disabled) | 888          |
| Working-age employed                 | 647          |
| Working-age other                    | 2,598        |
|                                      |              |
| CTR SUB TOTAL                        | 7,864        |
| Discretionary CTR Hardship Fund      |              |
|                                      |              |
| TOTAL                                | £7.68m       |

 The funding for Council Tax Support is incorporated into the Upper Tier, Lower Tier and 
Fire funding blocks, which means that it is no longer a separate visible grant. Funding 
is paid into both Revenue Support Grant (RSG) and the Business Rate Baseline, with 60% funding in the RSG block and 40% funding in the Business Rates Baseline. As this funding is not separately identified, or ring-fenced, it is reasonable to assume that it 
has been reduced, in line with the annual reduction to the Revenue Support Grant, which will reduce to zero by 2020, and increased in line with the annual uplift to the Business Rates Baseline to give the net estimated funding position. 
The cost of the scheme is borne by Bassetlaw DC and its major preceptors in 
proportion to the Council Tax bill i.e. County 75%, Bassetlaw 10.58%, Police 10.32% 
Fire 4.1%.  For Bassetlaw, the estimated total cost of the current scheme is circa £7.32m in 2018/19, of which Bassetlaw's share is circa £0.77m. 
The proposed scheme described above has an estimated cost of £7.65m for 2019/20. 
Bassetlaw's share is estimated at £0.81m, which is an increase of £0.04m. However if trends on reducing caseload continue, this budget pressure may reduce to £0.03m. 
This additional budget will, be required from the general fund. d) 
 Legal - Ref: 203/01/2019. 
 
The Council Tax Reduction (Bassetlaw District Council) Scheme 2019-20 will take effect from 1st April 2019. 

 
 
The Secretary of State has the powers to prescribe, by regulations, additional 
requirements which must or must not be included in a scheme. These are contained in The Council Tax Reduction Schemes (prescribed requirements) (England) Regulations 2012 and the Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) Regulations. 
 
 
Any amendments published before the scheme is implemented, together with the 
amendments proposed in this report, will be included in the final version to commence 
1st April. 
 
e) 
Human Resources 
None from this report. f) 
Community Safety, Environmental, Equalities g) 
General Data Protection regulations 
 
 
None arising from this report 
 
 
h)       This is key decision number 720 

## 5. Options, Risks And Reasons For Recommendations

 5.1  Consultation began in October after consideration of several options that would work 
towards a cost-neutral scheme over a 2 year period, starting from April 2019. This is 
subject to the final funding announcements prior to the start of 2020. The options consulted on were: 
 
 
To reduce the maximum CTR allowed for Working age to 80% or 84% 
 
To reduce the maximum CTR allowed for Working age vulnerable to 90% or 92% 
 
To review the disregards that apply to child maintenance and child benefit 
 
To protect those in the vulnerable group who lose Severe Disability premium when 
transferred to Universal Credit 
 
To consider removing family premium for new claims, in line with other benefits 
 
Options for 2020 onwards were also included in the consultation to look at a 
discount scheme or an income-banded scheme. 5.2   These options and the risks to collection rates have been analysed against a backdrop 
of a reducing caseload trend. It is proposed that the maximum CTR levels remain the             
same at 88% and 95%. It is also proposed to protect those who lose their Severe Disability Premium due to migration to Universal Credit. 
 
5.3   The recommendations in 3.9 and 3.10 of this report are to reduce the risk of delays in 
claiming CTR, by accepting the Universal Credit claim as a claim form for CTR. This also reduces the requirement to duplicate the collection of some data  from the claimant and ensures income details are correct.  
 
5.4 
There is currently a risk that incorrect data from the DWP with regard to income, on a 
universal credit award is used to calculate CTR. The current scheme does not allow the Council to use anything other than the DWP income figure. This is unfair on the claimant, and provided they can verify the correct income, a change to the wording of the scheme, will allow the correct income to be used by the Council. 
 

## 6. Conclusions

 6.1 
Each year the estimated cost of the Council Tax Reduction Scheme is reviewed 
together with the funds available to ensure that the scheme is affordable. The estimated cost to the Council of maintaining the current scheme would be circa. £0.81m, an increase of £0.04m. Due to the continuing downward trend in the caseload, 
it is expected that the budget pressure can be contained within the general fund. 
This will need to be kept under review, should the caseload fluctuate in 2019/20 and 
this will be monitored throughout the year. 

## 7. Recommendations

 7.1 
That Members approve the Council Tax Reduction Scheme 2019/20 as set out in 
paragraph 3.5 to 3.10 and that this is subject to any further legislation changes and 
annual up-ratings notified prior to 1st April 2019. 7.2 
That this report be referred to the next appropriate Council meeting for consideration. Location 

## Background Papers

 
Consultation summary 2019/20                                                           SRBM 
 
Options appraisal report                                                                      SRBM 
 
Council Tax Reduction Scheme 2019/20                            Members' Library/ 
website 


Council Tax Reduction Scheme Appendix B (Schedules 1-10) Members' Library/website 
 
 
# 8Th **January 2019**

## Report Of The Director Of Corporate Resources General Fund Capital Programme 2019/20 To 2023/24



Cabinet Member:  Finance  
 
Contact:                David Hill 
 
Ext:                       3174 
1. 

Public Interest Test 

 
1.1 
The author of this report, David Hill, has determined that the report is not confidential. 

## 2. Purpose Of The Report

 2.1 
To approve the General Fund Capital Programme for 2019/20 to 2023/24. 

## 3. Background And Discussion

 3.1 
The Council's five year capital programme shows the commitment to deliver more 
efficient services, improve facilities and enable economic development.  The programme is approved for the five year period and allows flexibility of investment 
between the years provided the value of the five year programme is not exceeded for each scheme. 3.2 
As part of the overall strategy for capital, the Council restricts the funding of capital 
schemes via revenue and minimises borrowing, as the revenue implications add to the revenue pressures on the General Fund. This means that the capital programme is predominantly funded using capital resources from the sale of assets, Section 106 contributions, or external grant funding. 
3.3 
As part of the budget setting process, resources have been reviewed to identify the 
funding availability for new capital schemes in 2019/20 and future years.  As there is a low level of currently available capital funds, the five year capital programme has been split into two elements; one to be approved immediately and the second to be approved once enough capital receipts have been generated from the sale of General Fund capital assets.  Further details of the capital funding is provided in section 5 of this report. 
 

## 4. Capital Expenditure Schemes Already Approved As Part Of The 2018/19 Budget Setting Process:

4.1 
Council approved the General Fund Capital Programme 2018/19 to 2022/23 on 14 
December 2017. 4.2 
The Capital Programme changes throughout the year as projects are developed and 
spending commitments are made.   It is a requirement that the Council approves all variations made to the Capital Programme. 4.3 
The currently approved five year General Fund Capital Programme totals **£14.801m**, 
of which £6.488m relates to 2018/19 schemes and £8.313m relates to schemes approved for the years 2019/20 to 2022/23.  Table 1 below shows the breakdown of 
the approved schemes over the 5 financial years 2018/19 to 2022/23 together with the sources of funding:  
 

Approved - General Fund Capital Programme
2018/19 2019/20 2020/21 2021/22 2022/23
Total
£'000
£'000
£'000
£'000
£'000
£'000
General Fund Capital Expenditure
6,488
   
4,724
   
1,712
   
1,329
   
548
       
14,801
 
Funded by: General Fund Capital Receipts
1,278
   
810
       
295
       
175
       
-
        
2,558
   
Government Grants
969
       
700
       
700
       
700
       
-
        
3,069
   
Capital Grants and Contributions
1,318
   
1,860
    
110
       
-
        
-
        
3,288
   
S106 Grant/CIL
1,119
   
670
       
-
        
-
        
-
        
1,789
   
General Fund Reserves
70
         
-
        
-
        
-
        
-
        
70
         
Borrowing
1,734
   
684
       
607
       
454
       
548
       
4,027
   
6,488
   
4,724
   
1,712
   
1,329
   
548
       
14,801
 

## 5. Capital Funding Of New Schemes Available Capital Resources:

 
5.1 
Included within the Financial Outturn 2017/18 report, Cabinet approved (19 June 
2018) that during 2018/19 **£0.340m** be released from the New Homes Bonus reserve 
to fund future capital or revenue projects. 5.2       For 2018/19 the Council has been allocated a New Homes Bonus amount of 
£1.209m, of which £0.500m has been used for mainstream funding in accordance 
with the New Homes Bonus Strategy.  The balance of **£0.708m** is available for 
funding new capital projects.   
 
5.3     There is currently available **£0.68m** of unallocated General Fund Capital Receipts. 
 
5.4 
A capital receipt of **£0.500m** has been received in September 2018, which relates to 
the return of the 5 year capital Investment the Council made in the Local Authority Mortgage Scheme (LAMS). 
 
5.5 
Table 2 below provides a summary of the available resources, which shows there is 
currently **£1.616m** which can be allocated to new general fund capital schemes.   
 

Available General Fund Capital Resources
£'000
Funded by: New Homes Bonus - release from EMR
340
          
2018/19 New Homes Bonus
708
          
Unallocated Capital Receipts
68
            
LAMS investment returned
500
          
Total:
1,616
      
 

## New General Fund Capital Schemes

 5.6 
Council approved (14 December 2017) that £1.582m provisional capital schemes 
could be included in the General Fund Capital programme when enough capital receipts have been generated.  As part of this capital budget setting process, those provisional schemes have been reviewed and reduced by £280k.  The remaining £1.302m is now proposed to be included in the 2019/20 capital programme and funded from capital receipts.  Table 3 below shows the schemes which have been adjusted: 

New Schemes to be funded from Capital Receipts
£'000
Provisionally approved 17.10.18 
1,582
Schemes reviewed:
ICT Refresh reprofiled
-212 
ICT Refresh reduced 
-18 
Equipment funded from Invest to Save Reserve
-30 
Pay on exit works - car parks - adjusted
-20 
Revised total:
1,302
 

## New Capital Bids

5.7 
The annual outline capital bids have been received and reviewed by the Corporate 
Management Team.  Two of those bids submitted were required urgently and have already been approved by Cabinet (4 December 2018) and are included within the 2018/19 capital programme.  The four bids detailed below are included within this budget proposal: 
 
Bid 1 - Dilapidated Equipment Fire Risk Assessment - A capital budget of £41,000 is 
proposed to replace defective, end of life cycle switchgear and light fittings and 
provide emergency lighting and fire detection equipment.  These works are to be funded from general fund capital receipts. 

 
Bid 2 - Heritage Buildings at Risk - A capital budget of £80,000 is proposed to assist 
in the restoration of listed buildings at risk to remove them from the Heritage at Risk register.  These works are to be funded from general fund capital receipts. 
 
Bid 3 - Empty Homes Loan - A capital budget of £100,000 is proposed to allow 
owners of empty properties to borrow funds for renovation works which will enable them to be bought back into use.  This scheme is to be funded from general fund 
capital receipts. 
 
Bid 4 - Pilgrims Roots Project - A further £239,000 is proposed to be added to this 
project to ensure the Pilgrims Gallery and Pilgrims Trail are delivered in the quality 
expected by the Heritage Lottery Fund, members, residents and visitors to the museum. This scheme is to be funded by £93k from general fund capital receipts and a further £146k from the Heritage Lottery Grant Fund. 

## Further New Proposals To Be Included In The General Fund Capital Budget:

5.8 
Ongoing Vehicle and plant replacements - A further £500k is proposed to be added 
to the capital programme for 2023/24 this is to be funded through borrowing.   
5.9 
It is anticipated that the Disabled Facilities Grant will continue to be received at £700k 
per annum.  Therefore, a further £1.4m is proposed to be added to the capital programme to years 2022/23 and 2023/24, which is funded through the Better Care 
Fund. 
5.10 
Should all of the above proposals be approved the General Fund Capital budget will 
increase by **£3.692m** up to **£18.493m**.  The proposed new schemes will also utilise all the available general fund capital resources of **£1.616m** and are summarised in 
Table 4 below: 

Total Cost 
£'000
PROPOSED NEW CAPITAL SCHEMES Provisionally approved 17.10.18 
1,302
        
New Bids submitted for 2019/20
Equipment Fire Risk Assessments
41
              
Heritage Buildings at Risk
80
              
Empty Homes Loans
100
           
Pilgrims Roots Project
239
           
Other ongoing Capital Schemes
Disabled Facilities Grant
1,400
        
Vehicle and Plant Replacements
500
           
Equipment 
30
              
Proposed New Capital Schemes
3,692
        
Funded By:
Capital Receipts
1,616
        
Government Grants (BCF)
1,400
        
Other Grants (HLF)
146
           
General Fund Reserves
30
              
Borrowing
500
           
Total Funding
3,692
        
 

 5.11 
Table 5 below shows: 
 
The current approved capital programme for 2018/19 of **£6.488** 
 
The proposed capital programme for 2019/20 of **£6.020m** and 
 
The indicative capital programme for years 2020/21 to 2023/24 totalling £5.985m 

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
Total
Approved
Proposed
Indicative
Indicative
Indicative
Indicative
£'000
£'000
£'000
£'000
£'000
£'000
£'000
General Fund Capital Expenditure
6,488
     
6,020
     
1,946
     
1,501
     
1,308
     
1,230
     
18,493
  
Funded by: General Fund Capital Receipts
1,278
     
1,930
     
529
        
347
        
60
           
30
           
4,174
     
Government Grants
969
        
1,660
     
810
        
700
        
700
        
700
        
5,539
     
Other Grants and Contributions
1,318
     
1,046
     
-
         
-
         
-
         
-
         
2,364
     
S106 Grant/CIL 
1,119
     
670
        
-
         
-
         
-
         
-
         
1,789
     
General Fund Reserves
70
           
30
           
-
         
-
         
-
         
-
         
100
        
Borrowing
1,734
     
684
        
607
        
454
        
548
        
500
        
4,527
     
Total Funding:
6,488
     
6,020
     
1,946
     
1,501
     
1,308
     
1,230
     
18,493
  


## Provisional Approval Pending Future Capital Receipts

5.12 
The amount of capital resources available for all of the bids approved by the 
Corporate Management Team are insufficient, but the schemes are required in order to maintain Council services at a high standard and reduce the future revenue 
increases in costs.   
 
5.13 
Therefore, it is proposed that the following list of schemes in table 6 below, are 
approved but they cannot commence until enough capital receipts are generated from the future sales of General Fund assets and the New Homes Bonus allocation for 2019/20 is confirmed.  In terms of objectivity, no scheme shall commence until an 
aggregated amount of the required capital resources per financial year is available. Therefore, when £927k of capital resources is available all the schemes listed below 
for 2019/20 will be added onto the Capital Programme 2019/20 subject to Cabinet approval. 

Reserve list pending further Capital Receipts:
2019/20 2020/21 2021/22 2022/23 2023/24
Total
£'000
£'000
£'000
£'000
£'000
£'000
ICT Refresh, re-profiled
-
       
-
       
67
         
145
       
-
       
212
      
Mayflower Pilgrims
60
         
-
       
-
       
-
       
-
       
60
        
Middletons 
400
       
-
       
-
       
-
       
-
       
400
      
Creative Village (industrial units)
120
       
-
       
-
       
-
       
-
       
120
      
Canch Masterplan
347
       
-
       
-
       
-
       
-
       
347
      
Totals:
927
       
-
       
67
         
145
       
-
       
1,139
  
 

## External Grants

5.14 
Any capital schemes that are subject to funding by external parties e.g. European 
Regional Development Fund (ERDF) are subject to a detailed bidding process 
against projects submitted by other organisations. If successful, these can provide additional funding for the capital programme and any bids for new schemes will be 
assessed accordingly. 
5.15 
A separate report from the Director of Regeneration and Neighbourhoods to the July 
2018 Cabinet provided details of the latest position with regard to Section 106 agreements.  It identified that the Council holds £0.777m of Section 106 capital 
contributions that, subject to the conditions attached, can be utilised to fund capital projects going forward. 

## Prudential Borrowing

5.16 
In keeping to the Council's Capital Investment Strategy, unsupported borrowing is 
minimised to prevent any destabilisation of the General Fund from the interest and Minimum Revenue Provision (MRP) that results from borrowing.  Leasing is also tightly controlled within the revenue budgets for the same reason and is rarely used.  
 
5.17 
Some of the capital bids are traditional in that the approach to replacing assets e.g. 
vehicles and plant, is a well-established pattern and these are funded from borrowing.  The reason for this is that they used to be funded via leasing, but given the low interest rates over the last few years, the costs of borrowing are a much cheaper option.   
5.18 
An indicative amount of £0.500m has been added to the capital programme during 
2023/24 for vehicle and plant replacements. 

## 6. Summary Of Capital Programme 2018/19 To 2023/24

 
Table 7 below summarises the total value of the General Fund Capital Programme 2019/20 to 2023/24 by the already approved schemes, any new proposals and adjustments.  Appendices A and B attached to this report provide further details of the proposed capital schemes. 

 

| Total Cost                                       | Detailed in                                      |
|--------------------------------------------------|--------------------------------------------------|
| £'000                                            | Section:                                         |
| Table 7                                          |                                                  |
| Summary of General Fund Capital Programme        |                                                  |
| 2018/19 to 2023/24                               |                                                  |
| Schemes already approved as part of the 2018/19  |                                                  |
| Budget setting process                           |                                                  |
| 14,801                                           |                                                  |
| Section 4                                        |                                                  |
| Table 1                                          |                                                  |
| Proposed new schemes to be added to the Capital  |                                                  |
| Programme                                        |                                                  |
| 3,692                                            |                                                  |
| Section 5.10                                     |                                                  |
| Table 4                                          |                                                  |
| Total General Fund Capital Programme 2018/19 to  |                                                  |
| 2023/24                                          |                                                  |
| 18,493                                           |                                                  |
| Section 5                                        |                                                  |
| Table 5                                          |                                                  |
| Provisional new schemes - pending future capital |                                                  |
| receipts 2019/20                                 |                                                  |
| 927                                              |                                                  |
| Section 5.13                                     |                                                  |
| Table 6                                          | Provisional new schemes - pending future capital |
| receipts 2020/21 to 2023/24                      |                                                  |
| 212                                              |                                                  |
| Total Provisional General Fund Capital Programme |                                                  |
| 2019/20 to 2023/24                               |                                                  |
| 1,139                                            |                                                  |
|                                                  |                                                  |

## 7. Implications

a) 
For Service Users. 
 
Bassetlaw's capital investment in the district is an important factor for residents, but potential schemes and projects outweigh the resources available to the Council. Decisions on what schemes to fund are therefore important. 

 b) 
Strategic & Policy 
 
 
The Capital Programme has been developed with regard to the Council Plan. In particular, it supports the delivery of the Council's priorities through the Medium Term Financial Plan. c) 
Financial - Ref: 19/22 
These are included within the main body of the report.  Additionally, the 
revenue consequences of all schemes have been assessed and included within the General Fund revenue base budget. d) 
Legal - Ref: 210/01/2019 
 
None arising directly from this report, although this will assist in meeting the Council's corporate objectives. 

 
e) 
Human Resources 
 
None arising directly from this report. f) 
Community Safety, Equalities, Environmental 
 
Some of the capital schemes have positive implications on community safety, equalities and environmental issues, and these have been considered at the project appraisal stage, prior to any recommendations on the capital programme. 

g) 
G.D.P.R.  
 
 
None arising directly from this report 
 
h) 
This is Key Decision number 714 
8. 
Options, Risks and Reasons for Recommendations 8.1 
Members can decide what schemes to include or exclude. Any schemes which 
include external finance will have implications for those organisations.   

## 9. Conclusions

 9.1 
It is imperative that capital schemes are seen to be delivered on time and to budget. 
Resources are scarce and therefore capital expenditure is approved for three specific reasons:  
 
 
there is a demonstrable need for the project; 
 
it meets the strategic objectives of the Council; 
 
the benefits are clearly measurable. 
 
It is therefore important that expectations from Members and the public are realistic when approving timescales and determining the project outcomes is key to the successful delivery of projects. 

 9.2 
This report fully allocates the balance of the General Fund capital receipts. 9.3 
Members have carefully balanced their competing priorities in their approach to this 
investment plan and have sought to take stock of our assets.  This year the continued investment in all Council services will give benefit to future year's budgets. 9.4 
Council resources in terms of both money and officer time are shrinking and it is 
important that appropriate time is allocated to project planning before the commencement of a project. 
10. 
Recommendations 
 
10.1 
That Cabinet approves the Capital Programme for 2019/20 of **£6.020m** as shown at 
Appendix A, and recommends these to full Council on 31 January 2019. 
 
10.2 
That Cabinet approves the indicative Capital Programme for 2020/21 to 2023/24 of 
£5.985m also set out in Appendix A, and recommends these to full Council on 31 
January 2019. 
 
10.3 
That Cabinet approves the provisional Capital Programme for 2019/20 of **£0.927m** as 
shown at Appendix B, which cannot commence until enough Capital Receipts are 
generated, and recommends these to full Council on 31 January 2019. 10.4 
That Cabinet approves the indicative provisional Capital Programme for 2020/21 to 
2023/24 of **£0.212m** as shown at Appendix B, which cannot commence until enough 
Capital Receipts are generated, and recommends these to full Council on 31 January 
2019. 

## Background Papers Location Capital Bids & Resourcing Statements Head Of Finance & Property'S Office Appendix A General Fund Capital Programme 2019/20 To 2023/24

| 2019/20                                | 2020/21    | 2021/22    | 2022/23    | 2023/24    |
|----------------------------------------|------------|------------|------------|------------|
| EXPENDITURE SUMMARY                    |            |            |            |            |
| TOTAL                                  |            |            |            |            |
| Proposed                               | Indicative | Indicative | Indicative | Indicative |
| £'000                                  | £'000      | £'000      | £'000      | £'000      |
| £'000                                  |            |            |            |            |
| Disabled Facilities Grant              |            |            |            |            |
| 700                                    |            |            |            |            |
| 700                                    | 700        | 700        | 700        |            |
| 3,500                                  |            |            |            |            |
| Vehicles & Plant - Replacement         |            |            |            |            |
| 684                                    |            |            |            |            |
| 607                                    | 454        | 548        | 500        |            |
| 2,793                                  |            |            |            |            |
| Worksop Town Centre Interventions      |            |            |            |            |
| 1,800                                  |            |            |            |            |
| 0                                      | 0          | 0          | 0          |            |
| 1,800                                  |            |            |            |            |
| Retford Beck Flood Alleviation Scheme  |            |            |            |            |
| 1,100                                  |            |            |            |            |
| 0                                      | 0          | 0          | 0          |            |
| 1,100                                  |            |            |            |            |
| Flood Alleviation - Small Schemes      |            |            |            |            |
| 50                                     |            |            |            |            |
| 50                                     | 50         | 0          | 0          |            |
| 150                                    |            |            |            |            |
| Clarborough Flood Alleviation Scheme   |            |            |            |            |
| 200                                    |            |            |            |            |
| 200                                    | 0          | 0          | 0          |            |
| 400                                    |            |            |            |            |
| Play Areas Upgrade                     |            |            |            |            |
| 30                                     |            |            |            |            |
| 30                                     | 30         | 30         | 0          |            |
| 120                                    |            |            |            |            |
| Planned Maintenance & Capital Upgrades |            |            |            |            |
| 100                                    |            |            |            |            |
| 100                                    | 100        | 0          | 0          |            |
| 300                                    |            |            |            |            |
| Equipment Fire Risk Assessments        |            |            |            |            |
| 11                                     |            |            |            |            |
| 35                                     | 10         | 10         | 10         |            |
| 76                                     |            |            |            |            |
| Compliance with Energy Act             |            |            |            |            |
| 0                                      |            |            |            |            |
| 25                                     | 25         | 0          | 0          |            |
| 50                                     |            |            |            |            |
| ICT Refresh Project                    |            |            |            |            |
| 99                                     |            |            |            |            |
| 179                                    | 112        | 0          | 0          |            |
| 390                                    |            |            |            |            |
| Memorial Library                       |            |            |            |            |
| 60                                     |            |            |            |            |
| 0                                      | 0          | 0          | 0          |            |
| 60                                     |            |            |            |            |
| Heritage / Buildings at Risk           |            |            |            |            |
| 20                                     |            |            |            |            |
| 20                                     | 20         | 20         | 20         |            |
| 100                                    |            |            |            |            |
| Resurfacing and Re-lining Public Car   |            |            |            |            |
| Parks                                  |            |            |            |            |
| 75                                     | 75         |            |            |            |
| Langold Lake Resurfacing Works         |            |            |            |            |
| 25                                     | 25         |            |            |            |
| Pilgrims Roots Project                 |            |            |            |            |
| 239                                    | 239        |            |            |            |
| Replacement windows Queens Buildings   |            |            |            |            |
| 150                                    | 150        |            |            |            |
| Community Sports                       |            |            |            |            |
| 100                                    | 100        |            |            |            |
| Gateford Road car park                 |            |            |            |            |
| 100                                    | 100        |            |            |            |
| Public toilet improvements             |            |            |            |            |
| 100                                    | 100        |            |            |            |
| Empty Homes Loan                       |            |            |            |            |
| 100                                    | 100        |            |            |            |
| Land at Hannah Park Cemetery           |            |            |            |            |
| 97                                     | 97         |            |            |            |
| Heating System Upgrade - workshop      |            |            |            |            |
| 70                                     | 70         |            |            |            |
| Grinder for Sharpening mowing blades   |            |            |            |            |
| 30                                     | 30         |            |            |            |
| Works to Skip Compound at CF           |            |            |            |            |
| 30                                     | 30         |            |            |            |
| Park Safety Improvements               |            |            |            |            |
| 30                                     | 30         |            |            |            |
| Bench projects funding                 |            |            |            |            |
| 20                                     | 20         |            |            |            |
| TOTAL:                                 | 6,020      | 1,946      | 1,501      | 1,308      |
| 12,005                                 |            |            |            |            |
| 2019/20                                | 2020/21    | 2021/22    | 2022/23    | 2023/24    |
| FUNDED BY:                             |            |            |            |            |
| Proposed                               | Indicative | Indicative | Indicative | Indicative |
| £'000                                  | £'000      | £'000      | £'000      | £'000      |
| £'000                                  |            |            |            |            |
| Capital Receipts                       |            |            |            |            |
| 1,930                                  |            |            |            |            |
| 529                                    | 347        | 60         | 30         |            |
| 2,896                                  |            |            |            |            |
| Government Grants                      |            |            |            |            |
| 1,660                                  |            |            |            |            |
| 810                                    | 700        | 700        | 700        |            |
| 4,570                                  |            |            |            |            |
| Other Grants and Contributions         |            |            |            |            |
| 1,046                                  |            |            |            |            |
| 0                                      | 0          | 0          | 0          |            |
| 1,046                                  |            |            |            |            |
| Section 106/CIL                        |            |            |            |            |
| 670                                    |            |            |            |            |
| 0                                      | 0          | 0          | 0          |            |
| 670                                    |            |            |            |            |
| Reserves                               |            |            |            |            |
| 30                                     |            |            |            |            |
| 0                                      | 0          | 0          | 0          |            |
| 30                                     |            |            |            |            |
| Borrowing                              |            |            |            |            |
| 684                                    |            |            |            |            |
| 607                                    | 454        | 548        | 500        |            |
| 2,793                                  |            |            |            |            |
| TOTAL:                                 | 6,020      | 1,946      | 1,501      | 1,308      |
| 0                                      |            |            |            |            |
| 2019/20                                | 2020/21    | 2021/22    | 2022/23    | 2023/24    |
| CAPITAL RECEIPTS                       |            |            |            |            |
| £'000                                  | £'000      | £'000      | £'000      | £'000      |
| Capital Resources at start of year:    |            |            |            |            |
| 1,289                                  |            |            |            |            |
| 975                                    | 446        | 99         | 39         |            |
| Available New Homes Bonus              |            |            |            |            |
| 708                                    |            |            |            |            |
| 0                                      | 0          | 0          | 0          |            |
| Capital Receipt from LAMS Scheme       |            |            |            |            |
| 500                                    |            |            |            |            |
| 0                                      | 0          | 0          | 0          |            |
| Approved transfer from Reserve         |            |            |            |            |
| 340                                    |            |            |            |            |
| 0                                      | 0          | 0          | 0          |            |
| Available for Capital Bids             |            |            |            |            |
| 68                                     |            |            |            |            |
| 0                                      | 0          | 0          | 0          |            |
| Used for Funding                       |            |            |            |            |
| -1,930                                 |            |            |            |            |
| -529                                   | -347       | -60        | -30        |            |
| Capital Resources at end of year:      | 975        | 446        | 99         | 39         |

## General Fund Capital Programme 2019/20 To 2023/24

| 2019/20                                              | 2020/21   | 2021/22   | 2022/23   | 2023/24   | TOTAL   |
|------------------------------------------------------|-----------|-----------|-----------|-----------|---------|
| Proposed Indicative Indicative Indicative Indicative |           |           |           |           |         |
| Provisionally approved Pending                       |           |           |           |           |         |
| Capital Receipts:                                    |           |           |           |           |         |
| £'000                                                |           |           |           |           |         |
| £'000                                                | £'000     | £'000     | £'000     |           |         |
| £'000                                                |           |           |           |           |         |
| ICT                                                  |           |           |           |           |         |
| 0                                                    |           |           |           |           |         |
| 0                                                    | 67        | 145       | 0         |           |         |
| 212                                                  |           |           |           |           |         |
| Mayflower Pilgrims                                   |           |           |           |           |         |
| 60                                                   |           |           |           |           |         |
| 0                                                    | 0         | 0         | 0         |           |         |
| 60                                                   |           |           |           |           |         |
| Middletons Match Funding                             |           |           |           |           |         |
| 400                                                  |           |           |           |           |         |
| 0                                                    | 0         | 0         | 0         |           |         |
| 400                                                  |           |           |           |           |         |
| Industrial units at Creative Village                 |           |           |           |           |         |
| 120                                                  |           |           |           |           |         |
| 0                                                    | 0         | 0         | 0         |           |         |
| 120                                                  |           |           |           |           |         |
| Canch Masterplan                                     |           |           |           |           |         |
| 347                                                  |           |           |           |           |         |
| 0                                                    | 0         | 0         | 0         |           |         |
| 347                                                  |           |           |           |           |         |
| Totals:                                              | 927       |           |           |           |         |
| 0                                                    | 67        | 145       | 0         |           |         |
| 1,139                                                |           |           |           |           |         |
| CAPITAL RECEIPTS                                     |           |           |           |           |         |
| 2019/20                                              | 2020/21   | 2021/22   | 2022/23   | 2023/24   | TOTAL   |
| £'000                                                | £'000     | £'000     | £'000     | £'000     | £'000   |
| Pending Capital Receipts                             |           |           |           |           |         |
| 927                                                  |           |           |           |           |         |
| 0                                                    | 67        | 145       | 0         |           |         |
| 1,139                                                |           |           |           |           |         |
| Used for Funding                                     |           |           |           |           |         |
| -927                                                 |           |           |           |           |         |
| 0                                                    | -67       | -145      | 0         |           |         |
| -1,139                                               |           |           |           |           |         |
| Capital Receipts at end of year:                     | 0         |           |           |           |         |
| 0                                                    | 0         | 0         | 0         |           |         |
| 0                                                    |           |           |           |           |         |
|                                                      |           |           |           |           |         |

                                                                                                     Agenda Item No. 5(b)        

# Cabinet 8Th January 2019

## Report Of The Director Of Corporate Resources Housing Capital Programme 2019/20 To 2023/24

 
 
Cabinet Member:   Finance  
 
Contact:                 Dave Hill 
 
Ext:                        3174 

## 1. Public Interest Test

 
1.1 
The author of this report, Dave Hill, has determined that the report is not confidential. 

## 2. Purpose Of The Report

 2.1 
To consider and approve the Housing Capital Programme for 2019/20 to 2023/24. 

## 3. Background And Discussion

 
3.1  
As part of the arrangements for the new HRA self-financing regime, the Council 
prepared a 30 year Business Plan which identified the levels of capital expenditure required to maintain council housing stock at the 'Decent Homes' standard 
prescribed by central government into future years. 3.2 
The capital programme for 2019/20 to 2023/24 continues with the four major 
elements of:  
 
 
Decent Homes; 
 
Fuel Poverty; 
 
Crime & Disorder; 
 
Disability. 3.3 
From 2017/18, the HRA Business Plan has been fully developed into a 'live' model 
that is updated on a continuous basis to reflect any changes that materialise. The commitment made in the original Business Plan regarding the first five years of the capital programme remains in place, with later years being added and revised according to latest information.  This is important as 2013/14 heralded the end of the 
Decent Homes funding and this programme now looks at wider agendas and is 
therefore more balanced and diverse.  

## Major Improvements

 3.4  
In considering the schemes and the funding available, the first task is to maintain the 
Decent Homes standard going forward.  Appendix 1 shows that a total of £21.175m has been identified as a five-year commitment to maintain the housing stock at minimum decency levels. 

## Green Energy

 3.5 
One of the biggest risks to the financial stability of Bassetlaw's tenants is their ability 
to pay energy bills with a level of household income that prevents them from being classed as 'fuel poor'. The aim of this set of priorities in the capital programme is to minimise fuel poverty wherever possible, ensuring properties have good levels of insulation, A-rated boilers, solar PV, renewable energy and efficient well maintained 
heating schemes.  The Council has set a target of 20% of stock to be on some form of renewable heating by 2020/21. 3.6 
The Council has developed a sound tradition of pioneering air source and ground 
source heat pumps to properties that were previously dependent on expensive heating systems.  Therefore, a number of schemes have been included in the 2019/20 - 2023/24 Capital Programme. The programme areas identified in Appendix 1 cumulate in an investment of £4.025m over the five years covered in this report, with £0.805m being recommended for 2019/20.  Expenditure will be committed to external wall insulation to solid wall properties, boiler and heating replacements. 

## Decent Neighbourhoods

3.7 
Other emerging priorities are anti-crime and community safety measures. The 
commitment to this is for £0.940m in 2019/20, with an outline total of £4.7m invested 
by the end of 2023/24. 
3.8 
This priority group of projects includes not just property protection, but also 
environmental protection to assist with community wide safety. Crime risk can be minimised in the home with 'Secured by Design' windows and doors, but it is often 
the community projects that reduce anti-social behaviour and crime. Community safety doesn't however solely refer to crime but includes fire risk assessments, health protection from poor sanitation, waste management (2 or 3 bin systems for properties designed for only a single bin), Housing Health & Safety Rating System, safe car parking, putting footpaths into good repair and properties in a good state of structural repair. 3.9  
Fire Risk Assessments have provided one of the most significant additional funding requirements over the last few years.  This will have to remain one of the first priorities on the annual delivery programme. 

## Homes For Life

3.10 
Commitments to meet Equality Act requirements for tenants living with a disability 
and further home adaptions are being put forward with some £0.540m in 2019/20, with a total of £2.7m by the end of 2023/24. 
3.11 
The main thrust of this area will be the requirement for the delivery of adaptations to 
council tenants (to mirror the Disabled Facilities Grant process for private sector residents). 
 
As part of this process, it is important Bassetlaw remains innovative and adopts 
initiatives designed to reduce accidents and prevent the decline in people's health prematurely. This is where self-referral schemes are important. In addition, though 
this will always be a desire, the lifetime homes criteria (16 points relating to access in and around the home) should always be adopted wherever possible and schemes to improve some suitable properties would be beneficial. With new-build schemes, lifetime homes should always be criteria for consideration. 3.12 
Any pressures in this area can be kept to a minimum through good asset 
management and by obtaining grants wherever possible and working with partner organisations such as United Living, energy companies and maximising tariff schemes to ensure any duplication is removed from processes. Ensuring procurement gives value contracts that deliver both the product, the service and specifications that ensure product delivery is maximised and repair obligations 
minimised. Relying on capital budgets without including the above will always leave Bassetlaw behind the times.  

## Other Schemes

 3.13 
The HRA capital programme includes details of other schemes as follows: 


 
New Build Contribution - a sum of £2.0m per year has been included within the 
programme for the period 2019/20 to 2023/24 to enable further options for new build to be considered. 
 
 
Vehicle Fleet Replacement - The Housing depot operate a varied fleet and some 
vehicles can expect a longer life than others can. A replacement programme has been included in the 30-year business plan based on a life of between six and seven years for each vehicle.  The capital programme for the five years from 2019/20 
includes £268k per annum for vehicle replacement. 
 
 
Non Dwelling Assets (Community Centres, boiler houses, garages etc.) -  these have 
received very little capital investment over the last few years and the proposed programme allows for £0.100m per annum for the five years commencing 2019/20 
for improvement work. 
 
Contribution to Flood Prevention Schemes - The Council is very proactive in 
developing new flood prevention schemes and an annual contribution from the HRA is made towards the overall costs of protecting the HRA properties.  This is proposed at £50k per annum for the period 2019/20 to 2023/24. 
 
 
Damp Proofing Works - There is a need to inspect and provide damp proofing works 
to properties, and a sum of £0.100m per annum has been included in the five year programme. 
 
Asbestos Encapsulation / Removal - a proposed rolling programme of £0.100m per 
annum for the five years to identify areas at risk of deterioration and take the appropriate action. 
 
Electrical Installation Condition Testing - This is a health and safety issue and a sum 
of £0.250m per annum has been included in the five year programme to deliver this 
testing programme. 
 
Planned Works - Many properties require additional works in excess of the decent 
homes standard and a budget of £0.200m per year to 2023/24 has been included for 
this purpose.  A further £0.150 per year to 2023/24 has also been included for 
heating works at Conway Gardens. 
 
Other - Minor schemes such as the flats above shops, comprising replacement of 
external elements to improve weather resistance and lightning protection improvements to blocks of flats following fire risk assessments. 

## Funding

 3.14 
The Self Financing Regime for the Housing Revenue Account commenced in April 2012 and under it councils can self-finance capital investment.  In addition to this, capital receipts from council house sales can also be used to finance capital 
expenditure and if there is enough flexibility, revenue contributions to capital can also be made to provide additional funding through the Major Repairs Reserve (MRR). 3.15 
In summary, the Housing Capital Programme for 2019/20 totals £10.090m, which is 
to be funded by: 
 
 
£5.205m from the Major Repairs Reserve; 
 
£4.500m from Borrowing; 
 
£0.385m of capital receipts. 3.16    Members will note that the Major Repairs Reserve is funded from a combination of 
asset depreciation charges and other revenue contributions and this level of revenue contribution is significant to the coherence of the unfolding plan. It also emphasises 
the importance of the value for money savings within the Housing Revenue Account and the commitment required on rents to maintain the level of quality that tenants now expect and are demanding. 

## Capital Receipts And The Right To Buy Scheme

 3.17 
Under changes approved by Parliament in April 2012, local authorities were given the 
option of either transferring all Right to Buy receipts in excess of a government-set sales target back to central government, or to retain the receipt and reinvest in replacement homes. 
3.18 
Bassetlaw opted to retain the additional Right to Buy receipts and this means that the receipts: 
 
a) Must be used for the provision of affordable rented homes; b) Will constitute no more than 30% of total investment in such homes (net of any 
contribution from another public body); 
c) If they have not been used after three years, the Council will pay the unused 
sums, plus interest, back to the Secretary of State. 3.19 
As part of the introduction of the self-financing scheme, the government set 
Bassetlaw a Right-to-Buy sales target of circa 18 properties for 2019/20. This means 
that Bassetlaw will only retain 100% of the capital receipt from property sales in excess of this figure. In the interests of prudence, no retained right to buy receipts have been included within the updated business plan. 
 
3.20 
However, the 30 year Business Plan does include an assumption of £0.385m of Right to Buy receipts being generated in each financial year.  This amount of receipts being 
generated is kept under review during the financial year. 

## Affordability

 3.21 
The updated HRA Business Plan provides the assumptions for the Council's loan 
financing profile over the next thirty years. For information, the scheduled long-term debt repayments that are built into the Business Plan over the next 10 years amount to £25m and are itemised below: 
 
 
2019/20 - £3.3m 
 
2022/23 - £4.1m 
 
2023/24 - £3.3m 
 
2026/27 - £5.5m 
 
2027/28 - £3.3m 
 
2028/29 - £5.5m 3.22 
The Council's overall Borrowing limit was set at £105.436m as part of the 2012 
Settlement.  In October 2018, the Prime Minister announced a policy change of abolition of the HRA Debt cap.  The Chancellor announced in the Budget that the applicable date was 29 October 2018. 3.23  The current position regarding the HRA debt is shown in the table below.  The 
opening debt position of £89.05m reflects the repayment of £6.5m during 2018/19.   
 

2019/20 2020/21 2021/22 2022/23 2023/24
£m
£m
£m
£m
£m
Existing HRA Long Term Debt @ 1st April
-89.050 -90.277 -91.877 -93.177 -94.086
Internal Borrowing 
0.000
-1.600
-1.300
0.000
0.000
Additional Borrowing
-4.500
0.000
0.000
-5.000
-3.800
Plus:
Scheduled Debt Repayments in year
3.273
0.000
0.000
4.091
3.273
HRA Long Term Debt at year end
-90.277 -91.877 -93.177 -94.086 -94.613
 

 3.24 As the above figures show, with the cessation of the Decent Homes programme there 
is a direct impact on the decisions made on:  
 
(i)   the level of capital investment; (ii)  the pace of that investment; (iii) the levels of rent that tenants will be asked to pay for the quality of homes they 
live in. 3.25 Considerations need to be made about the pace of investment and improvement.  If an 
ambitious and proactive approach is taken in future years then overspends will occur in the revenue account which will take it below the approved minimum working balance of £1.3m. 3.27 The six maturing loans as outlined above will be repaid in the appropriate year 
payable.  However, due to the prescribed 1% cut in rents in 2019/20 it has removed the previously expected flexibility within the HRA Business Plan from 2017/18.  This is 
because there is now a need to re-borrow similar amounts to those repaid to keep the business plan a viable option over the next five years. 

## 4. Implications

a) 
For service users. 
 
Considered in tandem with the Housing Revenue Account Budget 2019/20 & 
Future Years to 2021/22 report, the link between capital decisions on investment and the revenue account is self-evident, as is the relationship between income (rents) and expenditure (improvements and repairs). Members need to decide if they wish to pace the level of improvements or make immediate commitments to the programme submitted on the priority areas put forward. 

 b) 
Strategic & Policy. 
 
There are a number of programme areas that are/will emerge as part of the post Decent Homes era and from within the Council Plan for Bassetlaw. These are outlined in the report. 

 
c)       Financial Ref: 19/186 
 
Until the Chancellor's Budget speech in July 2015, the business plan was based on a fair split between capital investment in old and new housing stock, and the repayment of long-term debt. The Chancellor's announcement regarding a 1% rent reduction each year for four years has effectively meant a 3% swing (as the business plan projected a 2% increase in rent each year). This has significantly impacted on the business plan in that £30.2m of rent has been lost as result of this decision over the next ten year period. Ultimately, this decision has forced some difficult decisions to be made, resulting in the commitment to the capital programme being maintained, with the consequence of the repayment of debt being deferred to later years.  

 
 
d) 
Legal Ref: 207/01/2019 
 
The Council needs to ensure compliance with the Equality Act 2010 and the appropriate levels of decency for its properties. 

 
e) 
Human Resources - None arising directly from this report. f) 
Community Safety, Equalities, Environmental 
 
The programme has been developed through tenant consultation. Ensuring the suitability of property for disabled users has been reflected in the scheme's priorities. 

g)  
G.D.P.R - None arising directly from this report 
         
h) 
This is key decision number 724 
 

## 5. Options, Risks And Reasons For Recommendations

 
5.1 
Members can decide what schemes to include or exclude, and the timing of those 
commitments. The summary provided under the section '*Affordability'* sets out the full 
situation. In coming to a view on what priorities Members want to establish, consideration must be given to the impact that long-term borrowing has on the affordability within the Housing Revenue Account. 

## 6. Conclusions

 6.1 
The year 2013/14 saw the end of government funding for the Decent Homes 
programme, but for Bassetlaw, the legacy and further commitment to the programme will be ongoing. 6.2  
The Council will always need some room for manoeuvre and for this reason only full 
approval for the 2019/20 proposed programme is being sought at this stage. Following years' capital programmes are therefore only being approved on an indicative basis and will be confirmed in succeeding financial years. 6.3 
The government-prescribed reduction in rent has had a significant detrimental impact on the sustainability of the HRA Business Plan and caution should be exercised when considering any more proposals for new build in the medium term up to 2020. 

## 7. Recommendations

 7.1 
That Members approve the 2019/20 proposed programme set out in Appendix 1 of 
the report. 7.2 
That Members approve the indicative programmes for 2020/21 to 2023/24 in 
Appendix 1 of the report. 7.3 
That Cabinet recommends the report to the Extraordinary Council meeting for 
approval on 31 January 2019. 

|                              |          |
|------------------------------|----------|
| Background Papers            | Location |
|                              |          |
|                              |          |
| HRA Housing Capital Schemes  |          |
|                              |          |
| HRA Self Financing data      |          |
|                              |          |
| Head of Finance & Property's |          |
| office                       |          |

 

## Housing Revenue Account Capital Programme 2019/20 To 2023/24

| 2019/20                                                 | 2020/21    | 2021/22    | 2022/23    | 2023/24   | TOTAL   |
|---------------------------------------------------------|------------|------------|------------|-----------|---------|
| £'000                                                   | £'000      | £'000      | £'000      | £'000     | £'000   |
| Proposed Indicative                                     | Indicative | Indicative | Indicative |           |         |
| MAJOR IMPROVEMENTS                                      |            |            |            |           |         |
| Maintaining the Decent Homes standard                   |            |            |            |           |         |
| 4,235                                                   |            |            |            |           |         |
| 4,235                                                   |            | 4,235      |            | 4,235     |         |
| GREEN ENERGY                                            |            |            |            |           |         |
| External Wall Insulation to Solid Wall Properties       |            |            |            |           |         |
| 310                                                     |            |            |            |           |         |
| 310                                                     |            | 310        |            | 310       |         |
| Boiler and Heating Replacements                         |            |            |            |           |         |
| 495                                                     |            |            |            |           |         |
| 495                                                     |            | 495        |            | 495       |         |
| DECENT NEIGHBOURHOODS                                   |            |            |            |           |         |
| Fire Protection to Blocks of Flats with Communal Areas, |            |            |            |           |         |
| including compartmentation work and sheltered           |            |            |            |           |         |
| accommodation                                           |            |            |            |           |         |
| 400                                                     |            |            |            |           |         |
| 400                                                     |            | 400        |            | 400       |         |
| Stuctural Repairs                                       |            |            |            |           |         |
| 110                                                     |            |            |            |           |         |
| 110                                                     |            | 110        |            | 110       |         |
| Waste Storage Facilities -Communal Areas and Dwellings  |            |            |            |           |         |
| 50                                                      |            |            |            |           |         |
| 50                                                      |            | 50         |            | 50        |         |
| Estate Parking Improvements                             |            |            |            |           |         |
| 200                                                     |            |            |            |           |         |
| 200                                                     |            | 200        |            | 200       |         |
| Smoke and Heat Detection                                |            |            |            |           |         |
| 100                                                     |            |            |            |           |         |
| 100                                                     |            | 100        |            | 100       |         |
| Repairs to Un-adopted Roads and Paths                   |            |            |            |           |         |
| 80                                                      |            |            |            |           |         |
| 80                                                      |            | 80         |            | 80        |         |
| HOMES FOR LIFE                                          |            |            |            |           |         |
| Adaptations - from OT Referrals                         |            |            |            |           |         |
| 500                                                     |            |            |            |           |         |
| 500                                                     |            | 500        |            | 500       |         |
| Lifetime Homes Works  - Disability Access               |            |            |            |           |         |
| 40                                                      |            |            |            |           |         |
| 40                                                      |            | 40         |            | 40        |         |
| OTHER SCHEMES                                           |            |            |            |           |         |
| Abbey Grove                                             |            |            |            |           |         |
| 120                                                     |            |            |            |           |         |
| 120                                                     |            | 120        |            | 120       |         |
| New Build Schemes-Airey Houses/Beverly Rd/Amanda Rd     |            |            |            |           |         |
| 2,000                                                   |            |            |            |           |         |
| 2,000                                                   |            | 2,000      |            | 2,000     |         |
| Vehicle Fleet Replacement                               |            |            |            |           |         |
| 268                                                     |            |            |            |           |         |
| 268                                                     |            | 268        |            | 268       |         |
| Non Dwelling Assets (Community Centres, Boiler Houses,  |            |            |            |           |         |
| Garages etc)                                            |            |            |            |           |         |
| 100                                                     |            |            |            |           |         |
| 100                                                     |            | 100        |            | 100       |         |
| Contribution to Flood Prevention Schemes                |            |            |            |           |         |
| 50                                                      |            |            |            |           |         |
| 50                                                      |            | 50         |            | 50        |         |
| Damp Proofing Works                                     |            |            |            |           |         |
| 100                                                     |            |            |            |           |         |
| 100                                                     |            | 100        |            | 100       |         |
| Asbestos Encapsulation / Removal                        |            |            |            |           |         |
| 100                                                     |            |            |            |           |         |
| 100                                                     |            | 100        |            | 100       |         |
| Electrical Installation Condition Testing and Rewires   |            |            |            |           |         |
| 250                                                     |            |            |            |           |         |
| 250                                                     |            | 250        |            | 250       |         |
| Flats above shops                                       |            |            |            |           |         |
| 60                                                      |            |            |            |           |         |
| 60                                                      |            | 60         |            | 60        |         |
| Lightning Protection                                    |            |            |            |           |         |
| 40                                                      |            |            |            |           |         |
| 40                                                      |            | 40         |            | 40        |         |
| Planned Works                                           |            |            |            |           |         |
| 200                                                     |            |            |            |           |         |
| 200                                                     |            | 200        |            | 200       |         |
| Legionella surveys and remedial works                   |            |            |            |           |         |
| 50                                                      |            |            |            |           |         |
| 50                                                      |            | 50         |            | 50        |         |
| Conway Gardens Individual Heatings to Flats             |            |            |            |           |         |
| 150                                                     |            |            |            |           |         |
| 150                                                     |            | 150        |            | 150       |         |
| Electical compliance to 10 blocks of flats              |            |            |            |           |         |
| 27                                                      |            |            |            |           |         |
| 27                                                      |            | 27         |            | 27        |         |
| Exchange Street - new lift                              |            |            |            |           |         |
| -                                                       |            | -          |            | -         |         |
| -                                                       |            |            |            |           |         |
| Demolition of Styrrup Road / Common Lane                |            |            |            |           |         |
| -                                                       |            | -          |            | -         |         |
| -                                                       |            |            |            |           |         |
| Furnival Street Demolition & Assoc. Works               |            |            |            |           |         |
| -                                                       |            | -          |            | -         |         |
| -                                                       |            |            |            |           |         |
| Ashford Court Demolition & Carpark                      |            |            |            |           |         |
| -                                                       |            | -          |            | -         |         |
| -                                                       |            |            |            |           |         |
| Conway or Larwood replacement Lift                      |            |            |            |           |         |
| 55                                                      |            |            |            |           |         |
| 55                                                      |            | 55         |            | 55        |         |
| TOTAL EXPENDITURE                                       | 10,090     | 10,090     | 10,090     | 10,090    | 10,090  |
| 2019/20                                                 | 2020/21    | 2021/22    | 2022/23    | 2023/24   | TOTAL   |
| Funded By:                                              |            |            |            |           |         |
| £'000                                                   | £'000      | £'000      | £'000      | £'000     | £'000   |
| Proposed Indicative                                     | Indicative | Indicative | Indicative |           |         |
| Major Repairs Reserve                                   |            |            |            |           |         |
| 5,205                                                   |            |            |            |           |         |
| 8,105                                                   | 8,405      | 4,705      | 5,905      | 32,325    |         |
| External Funding                                        | 0          |            |            |           |         |
| New Build Reserve                                       | 0          |            |            |           |         |
| Unsupported / Internal Borrowing                        |            |            |            |           |         |
| 4,500                                                   |            |            |            |           |         |
| 1,600                                                   | 1,300      | 5,000      | 3,800      | 16,200    |         |
| Capital Receipts                                        |            |            |            |           |         |
| 385                                                     |            |            |            |           |         |
| 385                                                     | 385        | 385        | 385        | 1,925     |         |
| TOTAL FUNDING:                                          |            |            |            |           |         |
| 10,090                                                  | 10,090     | 10,090     | 10,090     | 10,090    | 50,450  |
|                                                         |            |            |            |           |         |
|                                                         |            |            |            |           |         |
|                                                         |            |            |            |           |         |

# Cabinet 8Th **January 2019**

## Report Of The Director Of Corporate Resources Housing Revenue Account Budget 2019/20 & Future Years To 2023/24

 
 
Cabinet Member:  Finance   
 
Contact:                David Hill 
 
Ext:                       3174 

## 1. Public Interest Test

 
1.1 
The author of this report, David Hill, has determined that the report is not confidential. 

## 2. Purpose Of The Report

 2.1 
To consider and approve the Housing Revenue Account budget for 2019/20 and 
provide indicative figures for 2020/21 and 2021/22. 2.2 
To make recommendations to Extraordinary Council on the 31 January 2019 to set 
the budget and rent levels for 2018/19. 

## 3. Background And Discussion

 3.1 
Unlike the General Fund that comprises a range of different services, the Housing 
Revenue Account is a single service account which is funded by tenants' rent income 
for the social housing and the landlord functions Bassetlaw provides via the Arm's Length Management Organisation, A1 Housing. Therefore, all decisions on income and expenditure will have a direct impact on tenants' service levels and the level of investment in their homes. 3.2 
This has been re-enforced by the new 'Self Financing Regime for Housing' which 
became effective in April 2012. This means that expenditure now has to be entirely supported from rental and other income.  The main tool for the future financial management of the HRA is the 30-year Business Plan. 
 
3.3 
The introduction of HRA self-financing did not end the requirement to maintain a 
statutory ring-fenced HRA, and the Council is still required to maintain a separate account for the income received and expenditure incurred on council housing. The 2019/20 HRA Revenue Budget 3.4 
The Housing Revenue Account is shown at Appendix 1. Due to the changes made 
under self-financing, any favourable variance from the expected out-turn in year is now transferred to the New Build Reserve. This decision can, of course, be changed if the 2018/19 outturn is significantly different to the planned budgets.   
3.5 
Under the old housing subsidy system, the government gave a Major Repairs 
Allowance (MRA) which was used to fund capital expenditure.  Within the 
government's self-financing settlement figures released in March 2012, this government guidance was followed for the required 5 years which finished in 
2016/17. Depreciation represents a cash charge to the HRA which is required to be 
transferred to the Major Repairs Reserve (MRR) to provide for future capital expenditure and/or the repayment of debt. The level of depreciation chargeable to fund the capital programme is not sufficient to fund the capital programme and the repayment of debt, therefore a voluntary contribution of £1.5m is required during 2019/20. 3.6 
The HRA outturn for 2018/19 is expected to deliver a £0.154m surplus in year, which 
is slightly higher than the original budget of £0.095m. 
 
3.7 
The estimated balances on the HRA and MRR are as follows: 
 

|                               | HRA    | MRR                                          |
|-------------------------------|--------|----------------------------------------------|
|                               | £'000  | £'000                                        |
| Balance at 1 April 2018       | 1,669  | 817                                          |
| Surplus/(deficit)             | 154    |                                              |
|                               | 6,376  | MRA (made up of Depreciation & additional    |
| payment)                      |        |                                              |
|                               | 2,500  | Voluntary revenue contribution for repayment |
| of debt/capital expenditure   |        |                                              |
| Housing Capital Expenditure   |        | (8,396)                                      |
| Repayment of Debt             |        | 0                                            |
| Balance at 31 March 2019      | 1,823  | 1,298                                        |
|                               |        |                                              |
| Surplus/(deficit)             | (135)  |                                              |
| MRA (made up of Depreciation) |        | 6,375                                        |
|                               | 1,500  | Voluntary revenue contribution for repayment |
| of debt/capital expenditure   |        |                                              |
| Housing Capital Expenditure   |        | (5,205)                                      |
| Repayment of Debt             |        | (3,273)                                      |
|                               |        |                                              |
| Balance at 31 March 2020      | 1,688  | 695                                          |
|                               |        |                                              |
| Balance Analysed Over:        |        |                                              |
| Housing Revenue Expenditure   | 1,688  |                                              |
| Housing Capital Expenditure   |        | 695                                          |
| Repayment of Debt             |        |                                              |
| Balance at 31 March 2019      | 1,688  | 695                                          |
|                               |        |                                              |

## Rents

 3.8 
As part of the Budget speech on 8th July 2015, the Chancellor announced that social 
housing rents will have to be cut by 1% each year for the next four years from April 2016. The last year will be 2019/20 and the indication is that the increase will then revert to CPI plus 1%. The rent reduction was aimed at ending 'the ratchet of ever higher housing benefit chasing up ever higher rents in the social housing sector'. 
3.9 
The proposal is, therefore, to recommend a rent **reduction** for 2019/20 of 1.0% or an 
average of £0.63 per week. This is broken down by property types as follows: 
 

|         |                                |         |         |         |                 |         | CHANGES BY PROPERTY TYPE    |
|---------|--------------------------------|---------|---------|---------|-----------------|---------|-----------------------------|
|         | Bedsit                         | 1 Bed   | 2 Bed   | 3 Bed   | 4+ Bed          | 5+Bed   | Overall                     |
|         | £                              | £       | £       | £       | £               | £       | £                           |
| 2018/19 |                                |         |         |         |                 |         |                             |
| 53.94   | 64.85                          | 73.75   | 78.23   | 85.61   | 102.29          | 72.86   |                             |
| 2019/20 |                                |         |         |         |                 |         |                             |
| 53.40   | 64.20                          | 73.01   | 77.45   | 84.75   | 101.27          | 72.13   |                             |
| £       | (0.54)                         | (0.65)  | (0.74)  | (0.78)  | (0.86)          | (1.02)  | (0.73)                      |
| %       | (1.00%)                        | (1.00%) | (1.01%) | (0.99%) | (1.00%) (1.00%) | (0.96%) |                             |
|         | (Based on a 52 week rent year) |         |         |         |                 |         |                             |

 
 
Note: The above table is based on average rental income from each type of property; 
the following items will affect the calculation of the percentage decrease in the above table: 

 
During the year the housing stock may be revalued which could affect the 
weekly rental charge. 
 
Changes in the housing stock through redevelopment or purchase of 
additional properties.   
 
All right to buys have the potential to affect the % decrease in the dwelling 
rental weekly charge. 3.10 
Members should note that 2019/20 is a 53 week rent year (the first two days of the 
first week of the 2020/21 financial year sit in the 2019/20 rental year).  In accordance with the Welfare Reform and Work Act 2016, rents for 2019/20 (the final year of the 4 year rent reduction covered in this legislation) must be set at no more than 99% of the previous year's rent (2018/19).  The 53rd week in 2019/20 will mean that tenants will pay 100.9% of the 2018/19 rent if no action is taken. Therefore, to address this in 2019/20 the Housing Revenue Account has been adjusted to account for rental income on a daily basis (366 days).  This adjustment is needed only for one year, as rents will increase from 2010/21 onwards. This means that the rental income that relates to the 2020/21 financial year (3 days 1st, 
2nd and 3rd April 2020) will sit in the 2020/21 accounts and tenants will therefore pay 99% of the rents from 2018/19.  This is purely an accounting practice and will not affect how much tenants pay or when the pay. 
  
3.11 
This approach is one that is suggested by the LGA. MHCLG are aware of the 
position and that it affects all social landlords.  They have indicated to the LGA that 
it is for landlords to satisfy themselves of the application of the Welfare Reform and Work Act 2016, but have also established a Working Party to consider this. 3.12 
The Chancellor has announced that from 2020/21 rent may be increased by up to 
CPI + 1%. At current rates this equates to around a 3.2% increase shown in the table below: 

 
Average increase 
Average increase 
2020/21 
2021/22 
Per Week     
% 
Per Week   
% 
 £ 
   £ 
2.31 
3.2% 
2.37 
3.2% 
 
(Based on a 52 week rent year) 

 

3.13 
Whilst there may be some concerns nationally about the level of rents, approximately 
57% of tenants get assistance through the Housing Benefit scheme, and 67% of 
those on HB (38% of all tenants) receive a full rebate and pay nothing. Housing Benefit is met by a charge to the General Fund, and in turn, this is met by a grant from the MHCLG currently covering 99.4% of the actual costs. 

## Repairs & Maintenance

 3.14 
The amount of money spent on responsive repairs is estimated at £6.9m for 2019/20, 
compared to £10m for planned maintenance in the HRA's capital budget. This balance is deemed to be sound compared to the standard split of 40% responsive and 60% for planned repair expenditure.   

## Depreciation

 3.15 
Under the previous HRA regime depreciation (the annual charges made to reflect 
historic assets and improvements) was an in/out adjustment which made no difference to the overall level of HRA resources.  Under the Self Financing regime these calculations are more important as all depreciation adjustments are in effect 'real' cash set aside for investment, and then used up once the asset or improvement they originally financed needs to be replaced.  The 2018/19 budget for depreciation is 
£6.3m, and this is transferred into the Major Repairs Reserve to fund future capital expenditure. 

## Value For Money And The Housing Revenue Account

3.16 
All elements of the HRA budget and business plan are subject to review in relation to value for money.  In addition, the impact of any General fund Budget Review savings and service reviews will achieve reductions in costs for the Housing Revenue Account, thus releasing additional resources for the housing stock. 3.17 
There are no specific savings targets for Housing moving forward in the Business 
Plan. Budgets previously controlled by A1 Housing through the Management Fee have been brought back in house and are summarised in Appendix A 3.18 
The following budget assumptions have been used to produce the draft Housing 
Revenue Account 
 
 Pay Award - Actual agreed increases have been included averaging 2.05% for 
2018/19. From 2020/21 2% has been included for each year.  
 Contracts - Where contracts have specific provision for inflationary increases 
these have been included at CPI (2.2%) or RPI (3.3%) 
 BDC SLA's - This is primarily based on recharges of staff time, therefore 
increases have been linked to the assumed pay increase each year. 
 Rental Income has been increased by CPI + 1% from 2020/21 after the 4 year 
1% reduction has finished. 

## Provision For Bad Debts

 3.19 
Changes to welfare reform, including the 'bedroom tax' for under occupancy, the 
introduction of the Local Council Tax Reduction Scheme and the roll-out of Universal Credit all have the potential to increase the level of debts outstanding for council 
house rents.  It is therefore prudent that the Council takes measures to mitigate the financial impacts of these changes.  These include an annual bad debt provision of £150,000, and the welfare reform initiatives as identified above. 

## Treasury Management

 3.20 
As part of the self-financing arrangements, Bassetlaw inherited £26.9m of the national housing debt in March 2012, which increased its overall HRA debt level to 
£96.5m. This debt has been reduced over the last 5 years by £6m as at the 31st 
March 2018 the debt stood at £89.05m Overall this has an average debt interest rate of 3.88% and these figures are reflected in the budget profiles.  This level of debt and average interest rate will fluctuate over time as existing loans mature and decisions are made as to whether to replace or pay off debt in the longer term. 
 
3.21 
As part of this transfer of debt, the government set Bassetlaw an overall HRA borrowing limit of £105.4m. Although this limit has been removed the Council is taking a very prudent approach to this as for every additional £1m in borrowing, the cost to the HRA budget will be approximately £40,000 per annum. If Members wish 
to utilise this borrowing 'gap' for further investment in our housing stock, or to selfbuild, the **affordability of the revenue budget** will always be the deciding factor. 3.22 
The updated HRA Business Plan provides the assumptions for the Council's loan 
financing profile over the next thirty years. For information, the scheduled long term debt repayments and associated reductions in interest costs that are built into the Business Plan over the next 10 years are: 
 
 
2019/20 - £3.3m 
 
2022/23 - £4.1m 
 
2023/24 - £3.3m 
 
2026/27 - £5.5m 
 
2027/28 - £3.3m 
 
2028/29 - £5.5m 3.23 
Due to the introduction of 1% rent reductions each year for four years, re-borrowing 
will be necessary to retain the Council's current levels of capital investment, and for 
this reason further borrowing has been built into the HRA Business Plan as follows: 
 
 
2019/20 - £4.5m 
 
2022/23 - £5.0m 
 
2023/24 - £4.0m 3.24 
The *Treasury Management Strategy 2019/20 to 2021/22* will be reported to Cabinet 
in February 2019 and will detail the borrowing requirements of the Housing Revenue 
Account.  To ensure the stability of the HRA, its debt portfolio is long-term fixed rate borrowings.  Therefore, for the purposes of Treasury Management, any additional borrowing requirement will be facilitated through similar fixed term loans. 

## Reserves

3.25 
Due to the uncertainty around the new self-financing arrangements, the level of recommended minimum balances for the Housing Revenue Account was increased to £1.3m in April 2013. There are a number of benchmarks that are used for Housing authorities to determine the correct level as follows: 
 

 
£,000 
1,348 
£200 per property (Housing Finance Act 1989 recommended 
£150 based on 6,739 properties) 5% of dwelling rental income 
1,282 
5% of gross expenditure (excl. transfers to MRR) 
1,289 
Average of the 3 options 
1,306 

 3.26 
As the results of the three options are wide-ranging, it would be prudent to keep the 
minimum working balance under review each year.  However, for 2019/20, it is 
recommended that the Council retains the minimum working balance at £1.3m. 3.27 
This prudent approach reflects the level of uncertainties arising from welfare reform 
and the potential for tenants to accrue significant debts under these changes.  In addition, the major work programmes planned under the Housing capital programme will require some properties to be held void, which reduces rent income levels. Reserves should not be used to mitigate rent levels as this would only be effective in the short term. 

## 4. Implications

 
a) 
For service users. Bassetlaw provides 6,739 homes for its residents, and this is makes up 14% 
of the number of homes in the district. Significant resources have been spent on improving the condition of the housing stock. b) 
Strategic & Policy. Decisions about the long term financial health of Bassetlaw's council housing are now local ones, and Members now have a lot more influence over more significant matters of choice than previously. Long term decisions about quality and rent income are more pronounced, as is the long term financial stability of Bassetlaw's HRA. With the end of the Decent Homes programme, Members need to consider what improvements they wish to make to the Council's housing service, but this needs to be affordable both in the short and long term. 

 
If Members wish to be positive about the improvements that can be made then they need to generate the income to pay for them, and this will influence the Council's rent policies. As with anything else, improvements need to be funded accordingly.  

 
c) 
Finance - 19/429 


These are set out in the report. The recommended rent decrease is based on 
the government's set parameters of a 1% rent reduction, and this has removed a significant amount from the HRA Business Plan. This has necessitated the modelling of £25m of further long term borrowing going forward to keep the Business Plan sustainable. This means that any further investment over and above that planned needs to be considered very 
carefully for its impact on the viability of the Housing Revenue Account. d) 
Legal - 298/01/2019 


These are set out in the report. e) 
Human Resources. 
There are none arising from the report. f) 
Community Safety, Equalities, Environmental.  
 
The Council must ensure that decisions are made in such a way as to minimise unfairness and ensure that there is not a disproportionate effect on any protected group as defined in Equalities legislation. Recommendations to increase/decrease rent levels do not directly discriminate any particularly group as they apply across all tenants. Bassetlaw District Council provides financial and welfare advice and work with voluntary sector partners to ensure tenants can receive advice and support. 

 g) 
G.D.P.R. - None arising directly from this report h) 
This is Key Decision number 725. 

## 5. Options, Risks And Reasons For Recommendations

 5.1 
The Council needs to set a balanced budget for its HRA services with income 
equalling expenditure, and ensure that the Housing Revenue Account remains solvent, with the adequate reserves of a "going concern". 
5.2 
This budget sets out the approach to maintain levels of quality and investment, and 
comply with the borrowing limit. The rent reduction of 1.0% could be lowered even further, but this will impact on the levels of investment in this and successive financial years. 
 
5.3 
The Budget assumptions are based on the HRA Business Plan.  The associated 
risks include any variances in estimates for inflation, interest rates, volume of voids, and the number of Right to Buy sales. 
5.4 
The viability of the Business Plan is based on the management of debt levels 
coupled with investment in the Council's existing and new stock.  In reality the Business Plan needs to be flexible enough to cope with changes to this strategy over 
time. 

## 6. Conclusions

 6.1 
The Council has a self-sufficient HRA, in which income from tenants is used to pay 
for the delivery of services to tenants and investment in the housing stock.  The 
transition to self-financing represents a key shift in risks, with the Council taking full responsibility for managing and maintaining its own housing stock in return for access to all of its revenue income. 6.2  
For these reasons the budget has been framed to minimise any risks identified. Members have a clear set of recommendations to support a soundly financed 
housing service as the 2019/20 budget will set the foundation for the next 30 years of council house funding in Bassetlaw. 

## 7. Recommendations

 
7.1 
That Members approve the Housing Revenue Account budget set out in Appendix 1 
of the report for 2019/20. 7.2 
That Members approve the indicative Housing Revenue Account budgets set out in 
Appendix 1 of the report for 2020/21 and 2021/22. 7.3 
That Members approve an average rent reduction of 1.0% for 2019/20 in accordance 
with government policy. 
 
7.4 
That Members, in accordance with best practice note the flexibility to increase rents 
from 2020/21 onwards. 7.5 
That Members approve the minimum level of HRA reserves to remain at £1.3m in recognition of the overall funding value of the HRA. 7.6 
That Cabinet recommends this report to the Extraordinary Council meeting for 
approval on 31st January 2019. 

| Background Papers:    | Location:                           |
|-----------------------|-------------------------------------|
|                       |                                     |
| Self-Financing Data   | Head of Finance & Property's office |
| HRA Budget Papers     |                                     |
|                       |                                     |

 

## Housing Revenue Account - Budget Forecast 2019-2022

BUDGET 
2018/19
Employees 
£
Premises     
£
Transport    
£
Third Party 
Payments    
£
Capital 
Charges      
£
GROSS 
EXPEND      
£
INCOME      
£
ESTIMATE 
2020/21       
£
ESTIMATE 
2021/22      
£
ESTIMATE 
2022/23      
£
ESTIMATE 
2023/24     
£
Supplies 
and 
Services      
£
Internal 
Services 
Recharged
 £
NET 
EXPEND 
2019/20       
£
Management Fee
0 Rents Rates & Taxes
0
0
5,670,100 Supervision and Management
0
0
6,490,700 Repairs & Maintenance
0
0
33,000 Welfare Reform
0
0
12,193,800 Total Management Fee
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Council Managed HRA Budgets Expenditure
Repairs & Maintenance
2,084,000
1,090,600
143,500
1,034,800
2,557,500
6,910,400
6,910,400
6,953,500
6,996,600
7,038,200
7,080,600
Supervision and Management
1,962,400
30,000
72,000
575,900
94,400
3,547,100
6,281,800
6,281,800
6,392,700
6,504,400
6,613,500
6,724,700
Special Services
685,700
436,600
59,400
278,400
129,000
1,589,100
1,589,100
1,604,000
1,618,600
1,632,200
1,646,100
Rents Rates & Taxes
255,500
255,500
255,500
255,500
255,500
255,500
255,500
Refcus Expenditure
50,000
50,000
50,000
50,000
50,000
50,000
50,000
150,000 Movement in the Allowance for Bad Debts
150,000
150,000
150,000
150,000
150,000
150,000
150,000
87,300 Debt Management Costs
134,000
134,000
134,000
136,700
139,400
142,200
145,000
6,046,700 Depreciation and Impairment of Non-Current Assets
6,376,100
6,376,100
6,376,100
6,375,000
6,375,000
6,375,000
6,375,000
818,700 Management Costs
0
0
7,102,700 Total Council Expenditure
4,732,100
1,812,700
274,900
2,089,100
2,780,900
3,681,100
6,376,100
21,746,900
0
21,746,900
21,917,400
22,089,500
22,256,600
22,426,900
Income
-38,600 District Heating - Charges
0
-37,000
-37,000
-38,000
-39,000
-40,000
-41,000
-25,370,000 Rent Income - Dwellings
0
-25,223,530
-25,223,530
-26,156,470
-26,320,000 -26,904,000 -27,500,000
-584,000
-596,000
-229,300 Rent Income - Garages
0
-237,300
-237,300
-244,300
-251,300
-258,300
-265,300
292,500 Rent Income - Voids
0
295,000
295,000
298,000
305,000
312,000
319,000
-101,500 Community Centre - Charges
0
-101,500
-101,500
-101,500
-101,500
-101,500
-101,500
-105,200 Rent Income - Shops
0
-100,500
-100,500
-100,500
-100,500
-100,500
-100,500
-6,900 Rent Income - Land & Wayleaves
0
-7,100
-7,100
-7,100
-7,100
-7,100
-7,100
-448,900 Supporting People Warden Service Charges
0
-670,600
-670,600
-690,400
-710,200
-730,000
-749,800
-154,600 Contributions Towards Expenditure
0
-1,175,900
-1,175,900
-1,194,000
-1,195,500
-1,193,400
-1,191,500
-26,162,500 Total Income
0
0
0
0
0
0
0
0
-27,258,430
-27,258,430
-28,234,270
-28,420,100 -29,022,800 -29,637,700


412,300 HRA Services share of Corporate and Democratic Core
444,400
444,400
444,400
453,300
462,400
471,600
481,000
185,700 HRA Share of Other Amounts 
191,000
191,000
191,000
191,000
191,000
191,000
191,000
-6,268,000 Net Income/Costs for Service
4,732,100
1,812,700
274,900
2,724,500
2,780,900
3,681,100
6,376,100
22,382,300
-27,258,430
-4,876,130
-5,672,570
-5,677,200
-6,103,600
-6,538,800
116,600 Gain (-) or Loss on Sale of HRA Non-Current Assets
65,000
2,688,000
2,753,000
-2,693,500
59,500
59,500
59,500
59,500
59,500
3,731,700 Interest Payable and Similar Charges
3,574,800
3,574,800
3,574,800
3,527,300
3,575,300
3,534,300
3,554,300
-7,800 Interest and Investment Income
0
-7,800
-7,800
-7,800
-7,800
-7,800
-7,800
0 Capital Grants and Contributions Receivable
0
0
-2,427,500 Surplus (-) or Deficit for the Year on Service
4,732,100
1,812,700
274,900
2,724,500
2,845,900
3,681,100
12,638,900
28,710,100
-29,959,730
-1,249,630
-2,093,570
-2,050,200
-2,517,600
-2,932,800
Movement on HRA Balance
-5,946,700
Charges for Depreciation and impairment on non-current assets
-6,376,100
-6,376,100
-6,375,000
-6,375,000
-6,375,000
-6,375,000
-50,000 Revenue Expenditure Funded from Capital Under Statute
-50,000
-50,000
-50,000
-50,000
-50,000
-50,000
0 Gains/Loss (-) on Sale of HRA Non Current Assets
0
-117,800 Capital Expenditure Charged against the HRA
2,678,000
-2,743,000
-65,000
-65,000
-65,000
-65,000
-65,000
0
Employers Contribution Payable to NCC Pension Fund and Retirement Benefits Payable Direct to Pensioners
0
8,446,700 Transfer to Major Repairs Reserve
7,876,100
7,876,100
7,875,000
8,475,000
8,775,000
9,175,000
2,332,200 Net Additional Amount Required by Statute
1,385,000
1,385,000
1,985,000
2,285,000
2,685,000
-95,300 Net (Increase) or Decrease in HRA Balance in Year
135,370
-708,570
-65,200
-232,600
-247,800


£
Balance Brought Forward
-1,823,708
-1,688,338
-2,396,908
-2,462,108
-2,694,708
Balance b/fwd @ 1 April 2018
-1,669,408
HRA Surplus (-)/Deficit
135,370
-708,570
-65,200
-232,600
-247,800
Budgeted HRA Deficit 2018/19
-95,300  
Projected Year End Variance
-59,000
Balance Carried Forward
-1,688,338
-2,396,908
-2,462,108
-2,694,708
-2,942,508
Balance c/fwd @ 1 April 2019
-1,823,708

# Cabinet 8Th **January 2019**

## Report Of The Director Of Corporate Resources

## Medium Term Financial Plan 2019/20 To 2023/24

 
 
Cabinet Member: Finance  
 
Contact:  Dave Hill 
 
Ext:  3174 

## 1. Public Interest Test

 
1.1 
The author of this report, Dave Hill, has determined that the report is not confidential. 

## 2. Purpose Of The Report

 2.1 
To make projections about the longer term financial position of the Council. 

## 3. Background And Discussion

 3.1 
The Medium Term Financial Plan (MTFP) sets the financial strategic direction for the Council, and is regularly updated as it evolves and develops throughout the year, to form the framework for the Council's financial planning. To ensure Members have a sound basis for planning and decision making, the MTFP will be updated at three key points in the year: These are: 
 
 
June  - with the initial viewpoint of the upcoming financial year; 
 
December - an update to include additional information received at national level and corporate issues identified through service planning; 
 
February - with the final budget for the new financial year; 3.2 
The purpose of the MTFP is to set out the key financial management principles, budget assumptions and service issues.  It is then used as the framework for the detailed budget setting process to ensure that resources are effectively managed and are able to deliver the aspirations of the Council as set out in the Council Plan, over the medium term. 

## Principles Underpinning The Budget Strategy

 3.3 
The Council has a number of agreed principles as a basis for financial management and budget planning as follows: 
 
 
Emerging pressures are managed within existing overall budgets; 
 
Spending is aligned to key priorities as set out in the Council Plan; 
 
Income is only included in the budget where supported by robust proposals and is deliverable; 
 
Commercial income will be maximised where possible to ensure that fee charging 
services break-even over time and are provided with a nil cost subsidy from the taxpayer, or return a surplus where appropriate; 
 
Where possible, future liabilities are anticipated; 
 
Budgets are sustainable; 
 
Savings proposals are supported by project plans and the impact on service delivery is clear; 
 
Capital and revenue planning must be integrated to ensure implications are fully anticipated; 
 
The Council's reserves and balances are not to be used as a primary method to balance the ongoing pressures in the budget. Earmarked reserves are used for 
specific one-off purposes to support the delivery of corporate objectives and to mitigate risks. 
3.4 
The national Government deficit reduction strategy has resulted in significantly less funding being available to local government since June 2010. This means the continued need to reduce costs and increase income will remain a key part of the 2019/20 budget and this MTFP. 3.5 
In light of the anticipated medium term gap, the Council has developed a forward strategy to inform future financial planning, by providing a framework for reducing planned expenditure over the medium term to ensure the Council is financially sustainable, while still delivering the Council's key priorities as set out in the Council Plan. 3.6 
To provide some certainty for the 4 years to 2019/20 the Council accepted the government's offer of a multi-year settlement. A condition of the offer was the submission of an Efficiency Plan showing how we will deliver savings and efficiencies. This document was submitted in October 2016.  

## Budget Assumptions

3.7 
Over the last year inflation has fallen. The Consumer Prices Index (CPI) annual inflation stood at 2.2% in October 2018 (compared to 2.8% in October 2017). The Retail Prices Index (RPI) annual inflation was 3.3% in October 2018 (compared to 4.0% in October 2017). These have been factored into the projections on Appendix 1 of the report, with future inflationary pressures set out for future years. 3.8 
The following budget assumptions have been built into the forecast: 
 
 
Pay award - A pay award averaging 2.05% for 2019/20 and 2% thereafter; 
 
Contracts have been linked to the CPI/RPI as per individual agreements; 
 
Fees and charges have, in the main, been linked to the CPI annual average of 2.2% rounded up to 3%; 
 
Other expenditure has not had any inflationary factor applied; 

## 4. Resources Available

 4.1  
On 29th October 2018, the Chancellor announced the Autumn Statement. This identifies 
the government intentions for public spending for 2019/20 ahead of the Spending Review in 2019. The MTFP report to Cabinet in September outlined the uncertainty 
facing local government from 2020/21 onwards. This uncertainty remains and very little additional information has been released since September.  

## Local Government Financial Settlement 2019/20

 4.2 
Based on the information provided in the provisional Local Government Finance 
Settlement 2019/20 announced on December 13th 2018 and national spending 
announcements, the following estimated funding will be available over the medium term:  
 

|                          | 2019/20    | 2020/21    | 2021/22    | 2022/23    | 2023/24    |
|--------------------------|------------|------------|------------|------------|------------|
| £m                       | £m         | £m         | £m         | £m         |            |
| Revenue Support Grant    | 0.23       | 0          | 0          | 0          |            |
| 0                        |            |            |            |            |            |
| Retained                 | Business   | Rates      |            |            |            |
| (including S31 Grant)    |            |            |            |            |            |
| 16.59                    | 15.55      | 15.89      | 16.24      | 16.60      |            |
| Government Tariff        | (12.60)    | (11.34)    | (11.68)    | (12.03)    | (12.39)    |
| Total Government Funding | 4.22       | 4.21       | 4.21       | 4.21       | 4.21       |
| Reduction in Government  |            |            |            |            |            |
| Funding                  |            |            |            |            |            |
| 0.42                     | 0          | 0          | 0          | 0          |            |
| Percentage Reduction (%) | 9.1%       | 0%         | 0%         | 0%         | 0%         |

 4.3 
2019/20 is the last year of the 4 year Local Government Finance Settlement where we have some certainty on the funding. The 2020/21 funding figures will not be available until the completion of the Fair Funding Review and the picture regarding the 75% Business Rates Retention becomes clearer. Therefore, the figures from 2020/21 onwards are the best estimates given the information available and assume 75% Business Rates retention with a 50/50 tier split.   

## Revenue Support Grant 4.4 The Council Is Estimated To Receive £0.23M In Rsg In 2019/20, Which Is A Reduction Of £0.51M From 2018/19 (70%). This Grant Has Been Retained To Allow The Government To Continue To Reduce Funding To Local Government In Line With The National Funding Totals.

 4.5 
The formula underpinning the Revenue Support Grant is expected to remain constant until the Business Rates Baseline is reset i.e. it is adjusted for growth/loss of business income. This means changes in factors such as population growth will not be taken into account in the local resources received. The RSG will reduce to zero in 2020/21. Retained Business Rates 4.6 
The changes under the 'Localisation of Business Rates' now means that local 
authorities are incentivised to promote economic growth in their area.  From 1st April 
2013, local authorities can retain a share of the net income that they receive in Business Rates as funding to meet the costs of service provision. 4.7 
In total, Bassetlaw retains 40% of Business Rates collected during the year, after deductions for mandatory and discretionary reliefs, the cost of income collections, including losses, and for the cost of changes to rateable values as a result of appeals.  
The remaining amounts are paid on the basis of: 50% to central government, 9% to Nottinghamshire County Council, and 1% to Nottinghamshire Fire & Rescue Authority.  

 
4.8 
Bassetlaw's Retained Business Rates income (i.e. the 40%) is then subject to a tariff, annually increased by the Retail Price Index (RPI), which is paid to central Government. This equates to the amount of Business Rates collected which is in excess of what we need. This tariff payment funds other local authorities where their Business Rates are considered to be disproportionately low. The level of tariff is unique to each local authority. 4.9 
From 1st April 2013, all of the seven Nottinghamshire District Councils joined forces with 
Nottinghamshire County Council to form a Business Rates Pool.  This works in exactly the same manner as for an individual authority, but has the added financial advantage of a greater level of resources being retained within the County for reinvestment or 
distribution to partner authorities.  This is because 50% of the growth experienced by each of the District Councils would, singularly, have been transferred to Central Government via the levy mechanism if the Pool was not in place. Instead it is retained within the Pool membership and distributed accordingly. 4.10 
The City of Nottingham and Nottinghamshire Economic Prosperity Committee on 24th 
July 2015 agreed that 50% of the Pool surplus generated in 2014/15 and future years, net of retention for the volatility fund, would be re-distributed back to Pool members. For Bassetlaw this has generated an additional £306,000 in 2017/18 that can be used towards setting a balance budget in future years. The MTFP will not include any such sums for future years until they have been formally agreed. 4.11 
An additional complexity for local authorities when forecasting their retained Business Rate income is the Government's announcement in March 2017 on a range of Business Rate measures to support businesses affected by the national revaluation exercise. These included: 
 
 
£1,000 relief for pubs; 
 
Supporting Small Business relief; 
 
Discretionary Rate Relief. 4.12 
These measures were extended into 2018/19 and are expected to be applied in 2019/20. The Government confirmed that local authorities will be reimbursed through a grant (known as a Section 31 grant) for the lost Business Rate income, which forms part of their Retained Business Rate funding. 4.13 
Including the Section 31 grant funded business rate measures, Bassetlaw will collect £43.0m in 2018/19 (after deductions for reliefs, bad debt provision, and set aside for potential loss on appeals), inclusive of annual business rate income growth. 4.14  There are a number of risks that could affect the level of Business Rate income 
collected, and as such, reduce the anticipated amount of Retained Business Rates. The most significant risks are as follows: 
 
Unpredictable increases in exemptions and reliefs due to different property usage; 
 
Successful business rate appeals dating back to earlier years;  
 
Slower than anticipated local economic growth; 
 
RPI increases on the tariff being higher than local economic growth; 
 
Uncollectable debts as a result of worsening economic conditions.  
4.15  Bassetlaw is currently performing well by increasing the rateable value within the 
district. This is because of the growth that is being encouraged by the Council within 
the business sector, and the proactive work being undertaken by the additional property inspector in inspecting our business properties. Some additional growth above the government baseline is expected over the next 4 years although it is very difficult to forecast without knowing the potential effect of appeals. 4.16 
The collection of Business Rates is being closely monitored throughout the year to inform future funding projections and on the basis of the current position it is expected that income will increase.  

## New Homes Bonus

 
4.17 
The Government has established the New Homes Bonus, which is allocated to Councils on the basis of new homes built within the district, and on bringing empty homes back into use. It promoted the New Homes Bonus as a way to ensure that the economic benefits of growth are returned to the local authorities and communities where growth takes place - and so help engender a more positive attitude towards growth.  In reality, this was just funded by a top-slice of the Revenue Support Grant and is not new money. 4.18 
In December 2016 the government announced fundamental changes to New Homes Bonus funding, reducing the 6 year's payment period to 4 years and introducing a threshold below which there is no payment. There have been no further changes in 2019/20. The estimated payments over the next 5 years are show below: 

 
2018/19 
2019/20 
2020/21 
2021/22 
2022/23 
2023/24 
£'000 
£'000 
£'000 
£'000 
£'000 
£'000 


2015/16 
344 


2016/17 
400 
400 


2017/18 
189 
189 
189 


2018/19 
115 
115 
115 
115 
 
 
2019/20 
 
318 
318 
318 
318  
2020/21 
 
 
250* 
250* 
250* 
250* 
2021/22 


200* 
200* 
200* 
2022/23 


200* 
200* 


TOTAL 
1,048 
1,022** 
872 
883 
968 
650 

 
*Note:  Estimates only **Note: There is a one off adjustment in 2019/20 of £160k due to an error in a previous return. Actual grant received will be £862k. 

 4.19 
Bassetlaw has utilised the New Homes Bonus between 2011/12 and 2018/19 as replacement core funding whilst delivering a measured savings programme each year. The future of the New Homes Bonus remains under review but nothing has yet been announced as to whether it will continue in its current form, phased out or scrapped in its entirety. 4.20 
The budget from 2016/17 onwards was based on the utilisation of £0.75m of New Homes Bonus for mainstream funding, with the remaining grant income being earmarked for specific one-off purposes. 
4.21 
This was reduced to £0.25m in 2018/19 which will be the last year where New Homes Bonus us used for Revenue purposes. The money released by not including New 
Homes Bonus in the revenue budget will be earmarked for either specific one-off revenue projects, or utilised to fund the capital programme. 

## Council Tax

 4.22 
Under the current arrangements, if a Council increases its Council Tax above a certain level, there is a legislative requirement to hold a referendum. The referendum limit for 2018/19 was set at 3% or £5. 4.23 
As part of its financial strategy, Bassetlaw set an increase of £5 in respect of 2018/19. For the purposes of this MTFP, as a basis for exemplifying the financial position only, it 
has been assumed that annual increases of £5 will apply each year from 2019/20 onwards.  Failure to increase council tax for the duration of this MTFP will contribute to the overall decline of the Council's financial capacity and Members' ability to fulfil their service responsibilities. 4.24 
Council Tax Benefit was a benefit for people on low income to help them to pay Council Tax, and it was paid to individuals by local authorities. The Government gave local authorities a grant to match the payments made to individuals. In April 2013 the Government reduced the funding available to Local Authorities and changed the mechanism for operating Council Tax Benefit, to a local decision known as a "Local Council Tax Reduction Scheme". 4.25 
The change from Council Tax Benefit to the Local Council Tax Reduction Scheme means rather than receiving a benefit to offset the cost of Council Tax, eligible residents now receive a discount at source direct from the bill, which reduces the Tax Base for all precepting authorities. The current value of council tax reduction discounts is estimated at £7.65m (Bassetlaw's share is £0.81m). When converted to Band D equivalent properties this is a reduction of 3,927 properties to the 2018/19 Council Tax Base. The number of discounts will vary as claimant numbers change, but demand is continuing to be lower than was estimated when the 2018/19 tax base was set. This will continue 
to be closely monitored each year. 4.26 
The calculation of the Council Tax Base for a given year, includes an assumption of the percentage of sums due which are actually collected. The changes to the Local Council Tax Reduction Scheme (LCTRS) and the impact of welfare reform means that it is prudent to keep the anticipated overall collection rate at 98.0% for 2019/20.  The collection rate will continue to be closely monitored throughout the year. 4.27 
The forecast growth in the Tax Base is based on housing growth assumptions and adjusted for a risk to potential service delivery. The current Tax Base growth is estimated at 563 Band D equivalent properties for 2019/20 and 1.25% growth for the following 4 years until 2023/24. This is offset by an assumed constant level of LCTR claimants at 3,927 Band D equivalent properties. The estimated Tax Base and the changes for LCTRS are currently estimated as follows:  
 

 
2019/20 
2020/21 
2021/22 
2022/23 
2023/24 
Council Tax Base - Original  
39,268 
39,690 
40,130 
40,574 
41,028 
Council Tax Base - Growth 
164 
250 
250 
250 
250 
39,432 
39,940 
40,380 
40,824 
41,278 
Council Tax Base - Before LCTR Scheme Net Impact of LCTR  
3,927 
4,000 
4,000 
4,000 
4,000 
35,505 
35,940 
36,380 
36,824 
37,278 
Forecast Tax Base - With LCTR Scheme 
710 
710 
710 
710 
710 
Less Forecast Uncollectable Amount 
34,795 
35,230 
35,670 
36,116 
36,568 
Forecast Tax Base - With LCTR Scheme Percentage Increase (%) 
1.65% 
1.25% 
1.25% 
1.25% 
1.25% 

 4.28 
The estimated future growth is regularly reviewed to ensure it remains reasonable, and a prudent estimate is always used to ensure the Collection Fund remains balanced or in a surplus. 4.29 
Bassetlaw's anticipated income arising from a £5 council tax increase coupled with the increase in the Council Tax Base, is shown below: 
 

|                               | 2019/20    | 2020/21    | 2021/22    | 2022/23    | 2023/24                       |
|-------------------------------|------------|------------|------------|------------|-------------------------------|
| Forecast Taxbase              | 34,795     | 35,230     | 35,670     | 36,116     | 35,568                        |
| £173.48                       | £178.48    | £183.48    | £188.48    | £193.48    | Forecast Band D based on a £5 |
| Council Tax Increase          |            |            |            |            |                               |
| Council Tax Income - BDC only | £6.036m    | £6.289m    | £6.545m    | £6.807m    | £7.075m                       |
| Percentage Increase (%)       | 4.7%       | 4.2%       | 4.1%       | 4.0%       | 3.9%                          |

## Collection Fund Surplus/Deficit

 4.30 
The Council is statutory obliged to prepare an estimate of its Collection Fund 
transactions for council tax on 15th January each year. This estimate enables Bassetlaw 
and the three major precepting authorities to take account of any surpluses or deficits on the Fund when they set their own authority budgets. It is therefore requested that 
this calculation on the 15th January 2019 and the declaration of the surplus or deficit be 
delegated to the Head of Finance and Property. 

## Specific Grants

 4.31 
The Council continues to receive a number of specific grants, although these have and will continue to reduce. These grants are in some cases "ring fenced" to individual activities, so spending is dictated along with the funding. Some specific grants are not ring-fenced which means that the Council can choose how funding is spent in accordance with local priorities (even where a grant was previously linked to a specific service or priority). 4.32 
In 2018/19 the Council will receive £24.8m as earmarked revenue specific grant funding, although the bulk of this funding relates to the subsidy for housing benefit payments. The latest estimates going forward are as follows: 
 

|                                | 2018/19    | 2019/20    | 2020/21    | 2021/22    | 2022/23                         |
|--------------------------------|------------|------------|------------|------------|---------------------------------|
| £m                             | £m         | £m         | £m         | £m         |                                 |
| Rent                           | Rebates    | (Council   | 12.464     | 10.095     | 8.176                           |
| dwellings)                     |            |            |            |            |                                 |
| 11.792                         | 9.308      | 7.347      | 5.800      | 4.578      | Rent Allowances (Private Sector |
| Dwellings)                     |            |            |            |            |                                 |
| Housing Benefit Administration | 0.330      | 0.280      | 0.238      | 0.280      | 0.280                           |
| Business                       | Rates      | Cost       | of         | 0.168      | 0.168                           |
| Collection                     |            |            |            |            |                                 |
| TOTAL:                         | 24.754     | 19.851     |            | 15.929     | 12.791                          |

 4.33 
Universal Credit was extended for working-age claimants in Bassetlaw from December 
2017. This change means an element of the housing benefit subsidy that Bassetlaw currently receives has been transferred to the DWP, leaving the Council with a smaller gross expenditure amount. This "reduction" in both new Housing Benefit claims and therefore subsidy has been included in the above figures from 2018/19 onwards when couples and family claims will transfer to Universal Credit. Although the government has announced there will be a full roll-out there is no timetable. Subsidy has, therefore, been reduced in-line with current actual migration levels. The DWP have not issued any plans to transfer pensioner claims away from local authorities for the foreseeable 
future, so Housing Benefit subsidy will still have to be paid to Bassetlaw for this. Other 
changes associated with this will be the inevitable reduction in Housing Benefit 
Administration Grant. Reserves and Balances 4.34 
When setting its Budget, the Council must have regard to the level of reserves needed to mitigate against both known and unknown risks and issues. A risk assessment of the General Fund Balances informs the Council's Section 151 Officer's view of the adequacy of reserves to provide assurance to the budget. 4.35 
The minimum prudent level of reserves remains at £1.0m for 2018/19.  Best practice 
guidance from CIPFA states that the General Fund balance may be between 5% and 100% of net expenditure.  The Council's £1.0m minimum working balance represents 6.1% of net expenditure. 4.36 
In addition to the General Fund Balance, the Council retains a number of earmarked reserves on the balance sheet. Some are required to be held for statutory reasons, some are needed to comply with proper accounting practice, and others have been set up voluntarily to earmark resources for future spending plans or potential liabilities. 4.37 
The Council has continued to develop its prudent financial management arrangements, through the development of earmarked reserves to mitigate against potential future risks. As issues arise, the potential requirement for an earmarked reserve is considered. New earmarked reserves are formally considered as part of the detailed budget process, to ensure that any new risks identified are adequately mitigated, and throughout the annual budget monitoring process as risks arise or become clearer. 4.38 
The detailed budget process includes an assessment of risk, the adequacy of General Fund Reserves and a review of earmarked reserves, to both create and change earmarked reserve levels, and to also release reserves which are no longer required.  

1st April General Fund: 
2018 Description and Intended Drawdown: 
£'000 
 
Balances: 
 
 
General Fund Balance 
2,504 General balances to be utilised for unexpected 
events and other contingencies. No end date. 
Usable Reserves: 
  
Job Evaluation 
652 Set aside to cover the one-off costs of Job 
Evaluation, 
and 
to 
meet 
downsizing 
and 
redundancy costs. To be utilised in 2019/20. 
Internal Insurance 
283 Set aside from revenue as a self-insurance fund to 
reduce the annual costs of insurance premiums. No end date. 
72 To be used for specific revenue purposes as part of 
Developers' Contributions Unapplied 
Section 106 agreements. To be written down as part of the individual agreements. 
Revenue 
Grants 
& 
432 Grants unspent at the year end. 
Contributions Unapplied General 
Fund 
Earmarked 
1,119 Various earmarked reserves to support service 
Reserve 
requirements. A number are expected to be drawn down in 2018/19, whilst remainder expected to be drawdown over life of the MTFP. 
Business Rates Volatility  
599 Set aside from revenue each year as an assurance 
against in year reductions in business rates.  
Retained Business Rates 
380 The Business Rates Retention scheme was 
introduced in April 2013. The scheme allows Councils to retain their share of Business Rates income. However, the accounting arrangements for 
the scheme are complex and different income streams have to be accounted for under different legislative arrangements. This can lead to deficits or surpluses within General Fund. This reserve has been set up to help smooth these variances. 
Business rates Pooling 
872 Bassetlaw is a member of the Nottinghamshire Pool 
for Retained Business Rates. This reserve represents the Councils share of redistributed growth generated from not paying over the individual Council levies to Central Government as a result of the pooling arrangements. 
New Homes Bonus 
590 Reserve created to hold New Homes Bonus Grant 
received in year and allocated to revenue. 
Invest to Save Reserve 
1,000 Money set aside to assist with the creating 
efficiencies and increase income generation potential.  
Local Plan 
167 To be used to fund the costs of producing the next 
Local Plan.  
| Management Team Reserves                        | 145 Various                                     |
|-------------------------------------------------|-------------------------------------------------|
| requirements, as agreed by Management Team.     |                                                 |
| Other                                           | 302 Donations for Museum and Shopmobility £33k; |
| Environmental Improvements £9k; LAMS £58k; ICT  |                                                 |
| Developments  £84k; Building asset Improvements |                                                 |
| £48k; Fair Value Movement £70k                  |                                                 |
| TOTAL                                           | £6,613                                          |
|                                                 |                                                 |

 4.39 
One of the key underpinning financial principles of the MTFP is to not use the Council's reserves (and other one-off resources) as a method to balance the ongoing pressures of the budget.  However, over the years, Bassetlaw has made use of its reserves to deal with one-off unbudgeted matters: to improve services, or to offset declining income levels and support service delivery. 4.40 
If the stage is ever reached where the Council has to generate more in-year cuts to deal with the costs of downsizing it will add further pressure to an already challenging situation, which is why this document, and more importantly the proactive work to be at least one year in advance of the problem, that goes into every budget, is so important. 4.41 
Any situation which erodes this will be a serious matter for the Council's External Auditors who expect Members to continue to run the Council as a viable going concern. This is particularly so now that Members have to, in effect, balance and manage two budgets - the mainstream revenue budget, and also since April 2013, the local council tax benefit scheme and the impact this has in the Collection Fund. As council tax benefits are no longer fully funded it adds to the complexity of Bassetlaw's operations as a council tax collection authority. 

## 5. Proposed Strategy To Bridge The Funding Gap

 5.1 
Appendix 1 shows that the Council has a forecast budget shortfall for the next five years of £1.3m, which is summarised below. 

| Financial Year    | Gross budget    | Savings    | Net Budget    |
|-------------------|-----------------|------------|---------------|
| shortfall         | Identified      | Shortfall  |               |
| £m                | £m              | £m         |               |
| 2019/20           | 1,170           | (1,080)    | 90            |
| 2020/21           | 1,900           | (649)      | 1,251         |
| 2021/22           | 730             | (648)      | 82            |
| 2022/23           | 530             | (615)      | (85)          |
| 2023/24           | 310             | (330)      | (20)          |
|                   |                 |            |               |
| TOTAL             | 4,640           | (3,332)    | 1,318         |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |
|                   |                 |            |               |

5.2 
Over the last 10 years Bassetlaw has delivered savings of just over £8m and any new savings are becoming increasingly difficult to identify and deliver. It is essential that the Council continues to identify areas where costs can be reduced or income increased to 
close the budget gap. 5.3 
A number of areas have been identified that will help to address the budgeted shortfall over the next 4 years and these are focussed around additional income and reducing expenditure as follows: 
 
 
Additional Income: 
o Potential Council Tax increases and growth in the taxbase o New Income streams 
 
 
Reducing Expenditure: 
o Treasury management savings o Improved procurement o Vacancy management o Zero base budget review o Service Reviews 
 
These will be examined in more detail in the following paragraphs. 

## Sources Of Income

 5.4 
During 2017/18 the Council has set up two new trading companies - the S80 partnership - a general trading company and Bersahill Developments Ltd, a company formed in partnership with a local building firm. It is expected that from 2019/20 these companies will provide the Council with an important income stream. 5.5 
Further trading opportunities will be evaluated as they come forward. Bassetlaw DC is working with another Council with an established trading unit. This will help with assessing suitable trading opportunities, developing comprehensive business plans and monitoring trading activity. 

## Other Reductions In Expenditure

 5.6 
Treasury Management –Working with the Council's Treasury advisors we will ensure that our Treasury Management Strategy allows for more innovative investment to improve our returns from investments. Re-scheduling long-term debt and adjusting MRP caculations remain under constant review 5.7 
Improved Procurement - During 2018/19 Nottinghamshire City Council agreed to provide the procurement service for Bassetlaw. The Cabinet report identified significant potential savings through more effective procurement. This will be closely monitored over the next year. 5.8 
Zero Base Budgeting - This was introduced as a new concept to Bassetlaw in setting the 2015/16 budget. Service Managers were fully engaged with the process, and the exercise has been a useful tool in challenging, and consequently reducing levels of expenditure. It is proposed to continue this for the foreseeable future. 5.9 
A1 Housing - From 1st October 2018, A1 Housing Ltd ceased trading and the company 
will be wound up in due course. The A1 staff were transferred to BDC and significant 
savings have been identified through, for example, removing the duplication of expenditure. Work is underway to identify further opportunities for savings and improved service delivery.  

 5.10 
CCTV and Security - The CCTV control room relocated to Queen's Buildings in 2013 and new state of the art digital equipment was purchased to kit-out the room. This gives a number of opportunities for selling the Council's services to Parish/Town Councils and other organisations through the newly created S80 partnership company 

## Service Improvements

 5.11 
Growth - There are no assumptions about any revenue growth bids in the figures on Appendix 1.  If there are any improvements that emerge and are linked to the Council Plan, the assumption is that they will be cost neutral or met from compensating savings 
from existing services, as Bassetlaw's resource envelope will not be increasing. Therefore, Members will have to carefully consider the financial implications of any new service proposals. 5.12 
Business Rate Debt - Property Inspector -  The implementation of the National Non- Domestic Rate system in 1990, effectively removed any financial incentive for improving the business rate tax base from local authorities. Council's are legally responsible for bringing matters to the attention of the Valuation Office. IRRV research, which showed that there are instances where:   
 
 
Some hereditaments are not included in the rating list; 
 
properties are under-assessed due to floor value or size of hereditament; 
 
newly-built and other properties are ready for completion, but with no completion notice being served. 5.13 
The Property Inspector is in the process of physically inspecting over 3,500 businesses which is generating income for the Council. Through this work the rateable value of properties has been increased by over £4m. This provides a cash benefit to the authority.  

## 6. Capital Investment Strategy

 6.1  
The Council has minimal resources available to fund future capital programmes and is very much reliant on the sale of surplus assets.  However, the majority of surplus and undeveloped plots of land are under the ownership of the HRA, so resources for General Fund are restricted. 6.2 
The Capital Investment Strategy has 2 aims: firstly, to ensure that schemes started in previous years are swiftly completed; and secondly, new schemes added to the capital programme will be appropriately managed to ensure that these are also successfully delivered within the designated financial year. Any new capital investment funded from borrowing will be carefully considered as part of a business case to ensure that borrowing costs are fully covered by new oncome stream or savings 

## 7. Implications

a) 
For service users - the Council will face significant and ongoing financial pressure for the foreseeable future, and most certainly during the three years of this plan until the next General Election scheduled for 2020. 
b) 
Strategic & Policy  
 
 
The scale of the withdrawal of Government funding is forcing all councils to do things differently and more innovatively to ensure they succeed in delivering services with less funding. The Financial Strategy Group will be considering different strategies to steer the authority towards achieving self-sufficiency over the coming years.   

 
c) 
Finance: 
19/611  
 
These are set out in the report, and in more detail at Appendix 1.   

 
d) 
Legal:  
212/01/2019 
 
The Council needs to ensure delivery of the Council's strategic aims and objectives and adherence to the Council's annual spending plans.   

 e) 
Human Resources - These are set out in the report. 
 
f) 
Community Safety, Equalities, Environmental This report sets out the overall context against which future decisions will have to be made.  The equality and diversity issues will be subject to more detailed assessment by service managers as part of the development and implementation of their budget proposals. 
g) 
G.D.P.R. - None arising directly from this report 
 
h) 
This is Key Decision No. 726 

## 8. Options, Risks And Reasons For Recommendations

 8.1 
Bassetlaw needs to review its Financial Strategy and Medium Term Financial Plan 
annually to ensure its projected expenditure is balanced with the income it receives, and where it doesn't, or is projected not to, corrective action is identified. 

| Risk                                                            | Impact    |
|-----------------------------------------------------------------|-----------|
|                                                                 |           |
| Time                                                            |           |
|                                                                 |           |
| Medium                                                          |           |
|                                                                 |           |
| Bassetlaw has always aimed to be one year ahead of the          |           |
| budget reductions it needs to make, so that any changes         |           |
| required are as trouble free as possible.                       |           |
|                                                                 |           |
|                                                                 |           |
|                                                                 |           |
|                                                                 |           |
|                                                                 |           |
| Savings have been identified to balance the 2019/20 budget      |           |
| through the work of the Financial Strategy Group and the        |           |
| other measures outlined in this report in the run up to the     |           |
| budget setting at Full Council on the 7                         |           |
| th                                                              |           |
| March 2019.                                                     |           |
|                                                                 |           |
| Work is underway to find the shortfall projected for future     |           |
| years. This needs to be worked on in the next 12 months to      |           |
| ensure we are in a satisfactory position at the beginning of    |           |
| 2020/21 when there will be significant changes in local         |           |
| government funding.                                             |           |
|                                                                 |           |
|                                                                 |           |
| Viability                                                       |           |
|                                                                 |           |
| Medium                                                          |           |
|                                                                 |           |
| Bassetlaw is relatively well placed to deal with the next       |           |
| financial years and plans are in place to address the next 5    |           |
| years although the uncertainty after 2020/21 is a significant   |           |
| worry.                                                          |           |
|                                                                 |           |
| The continuation of the New Homes Bonus and the benefits        |           |
| of the Nottinghamshire NNDR Pool have provided                  |           |
| significantly more income than expected and underline the       |           |
| importance of income generation as well as further              |           |
| expenditure cuts.                                               |           |
|                                                                 |           |
|                                                                 |           |
| Finance                                                         |           |
|                                                                 |           |
| Medium                                                          |           |
|                                                                 |           |
| It is important to consider all measures possible to help       |           |
| reduce the budget gap. Council tax increases play an            |           |
| important part offsetting the continual reductions in available |           |
| budgets.  The budget recommended for 2019/20 will include       |           |
| a range of measures to balance the budget:                      |           |
|                                                                 |           |
| - potential council tax increases;                              |           |
| - income maximisation measures;                                 |           |
| - service savings;                                              |           |
|                                                                 |           |
| The foundations for balancing future budgets are also being     |           |
| identified.                                                     |           |
|                                                                 |           |
|                                                                 |           |
| Profile                                                         |           |
|                                                                 |           |
| High                                                            |           |
|                                                                 |           |
| Bassetlaw has cut £10m from its budget since 2007/08 and,       |           |
| faces further reductions of £1.3m over the life of this MTFP    | .         |
|                                                                 |           |

 Adaptability High Working with partners will be essential to successfully respond to the challenges that face the Council. Local 
government is changing rapidly and a successful Council will be able to adapt and work with partners in both the private and public sectors. 9.        Conclusions 
9.1 
The review of the MTFP has once again been undertaken against the backdrop of 
significant reductions and changes to funding, and the additional cost of service pressures, and a lot of uncertainty regarding future funding bringing with them the need to plan ahead for the future with far fewer resources. 9.2 
The overall financial management strategy is concerned with all the things the Council needs to do to make Bassetlaw financially stable so that the Council can continue to deliver its overall strategy and thrive as a 'Viable Co-operative Council'. 9.3 
The 2019/20 budget will be balanced when presented to members in the new year allowing the Council to put in place plans to achieve a balanced budget over the following years.  By planning for the medium to longer term, consideration can be given to further projects and commercial initiatives to encourage new income generation and development opportunities. 9.4 
Membership of the Nottinghamshire business rates Pool has proved financially beneficial since its inception, and it remains important that the Council continues to retain a high proportion of the business rate income it generates. 9.5 
Although the financial context is ever more challenging, the Council has a track record of identifying and delivering significant savings and for annual expenditure to be at, or 
slightly under, the agreed budget, all within a framework of effective financial planning. This approach will need to continue to ensure that a sustainable position can be maintained. 

## 10. Recommendations

 10.1 
Cabinet is recommended to note the projections for the next five financial years as set out in Appendix 1. 10.2 
Cabinet approve the Medium Term Financial Plan for 2019/20 - 2023/24 as set out in Appendix 1 of the report, as the framework for the next five years' budgets. 10.3 
Cabinet increase council tax as part of their 2019/20 budget preparations. 10.4 
Cabinet delegate the calculation and declaration of the Council Tax deficit or surplus for 
the 2019/20 budget on the 15th January 2019 to the Head of Finance & Property. 

## Background Papers Location

 Head of Finance & Property Head of Finance & Property 

 Previous Year's Budget Reports Local Authority Financial Settlement Data 
 

## General Fund Budget 2019/20 To 2023/24

| Approved                                       | Budget                                            | Budget       | Budget       | Budget       | Budget       |
|------------------------------------------------|---------------------------------------------------|--------------|--------------|--------------|--------------|
| Budget                                         |                                                   |              |              |              |              |
| 2018/19                                        | 2019/20                                           | 2020/21      | 2021/22      | 2022/23      | 2023/24      |
| £                                              | £                                                 | £            | £            | £            | £            |
| SERVICE BUDGETS                                |                                                   |              |              |              |              |
| 501,300                                        |                                                   |              |              |              |              |
| Chief Executive Department                     |                                                   |              |              |              |              |
| 426,600                                        | 407,400                                           | 413,700      | 420,000      | 426,700      |              |
| 2,490,700                                      |                                                   |              |              |              |              |
| Corporate Services                             |                                                   |              |              |              |              |
| 2,520,700                                      | 2,427,100                                         | 2,455,200    | 2,482,800    | 2,579,400    |              |
| 2,888,200                                      |                                                   |              |              |              |              |
| Finance & Property & Revenue Services          |                                                   |              |              |              |              |
| 3,017,400                                      | 2,932,100                                         | 2,820,700    | 2,813,700    | 2,858,200    |              |
| 155,100                                        |                                                   |              |              |              |              |
| Human Resources                                |                                                   |              |              |              |              |
| 168,600                                        | 178,800                                           | 180,700      | 182,400      | 184,200      |              |
| 6,492,500                                      |                                                   |              |              |              |              |
| Neighbourhoods                                 |                                                   |              |              |              |              |
| 6,393,300                                      | 6,489,400                                         | 6,586,900    | 6,683,400    | 6,782,000    |              |
| 2,611,900                                      |                                                   |              |              |              |              |
| Regeneration                                   |                                                   |              |              |              |              |
| 2,760,600                                      | 1,915,100                                         | 1,944,800    | 1,980,900    | 2,033,000    |              |
| 310,200                                        |                                                   |              |              |              |              |
| Housing                                        |                                                   |              |              |              |              |
| 412,100                                        | 323,600                                           | 321,800      | 330,800      | 340,000      |              |
| 15,449,900                                     | Total Net Cost of Services                        | 15,699,300   | 14,673,500   | 14,723,800   | 14,894,000   |
| OTHER BUDGETS                                  |                                                   |              |              |              |              |
| 100,000                                        | Provisions - Corporate Contingency                | 100,000      | 100,000      | 100,000      | 100,000      |
| 50,000                                         | Provisions - Bad Debts                            | 50,000       | 50,000       | 50,000       | 50,000       |
| 100,000                                        | Provisions - Legal Contingency                    | 100,000      | 100,000      | 100,000      | 100,000      |
| 0                                              | Rural Services Delivery Grant                     | 0            | 0            | 0            | 0            |
| (175,000)                                      | A1 shared Services savings                        | (350,000)    | (175,000)    | 0            | 0            |
| 75,000                                         | Total Other Budgets                               | (100,000)    | 75,000       | 250,000      | 250,000      |
| 653,200                                        | Borrowing Interest                                | 670,000      | 691,300      | 721,300      | 703,500      |
| (79,000)                                       | Investment Interest Income                        | (85,000)     | (80,000)     | (80,000)     | (80,000)     |
| 7,700                                          | Other Interest                                    |              |              |              |              |
| 7,700                                          | 7,700                                             | 7,700        | 7,700        | 7,700        |              |
| (3,000)                                        | Renovation Grant Interest                         | (1,000)      | (1,000)      | (1,000)      | (1,000)      |
| 1,500                                          | Temporary Loans                                   | 1,500        | 1,500        | 1,500        | 1,500        |
| 580,400                                        | Net interest and borrowing costs                  | 593,200      | 619,500      | 649,500      | 631,700      |
| 486,600                                        | Drainage Board Levies                             | 496,300      | 506,200      | 516,300      | 526,700      |
| 1,950,000                                      | Housing Capital Receipts Pooling                  | 1,866,000    | 1,902,000    | 1,941,500    | 1,941,500    |
| 1,076,000                                      | Parish Precept                                    | 1,130,000    | 1,185,000    | 1,185,000    | 1,185,000    |
| 3,512,600                                      | Other Operating Expenditure                       | 3,492,300    | 3,593,200    | 3,642,800    | 3,653,200    |
| (25,200)                                       |                                                   |              |              |              |              |
| Amortisation of Intangible Assets Reversal     |                                                   |              |              |              |              |
| (25,200)                                       | (25,200)                                          | (25,200)     | (25,200)     | (25,200)     |              |
| 2,637,000                                      |                                                   |              |              |              |              |
| Capital Grants & Contributions used to Finance |                                                   |              |              |              |              |
| Capital Expenditure                            |                                                   |              |              |              |              |
| 3,406,000                                      | 810,000                                           | 700,000      | 700,000      | 700,000      |              |
| (1,938,800)                                    |                                                   |              |              |              |              |
| Reversal of Depreciation to Reserves           |                                                   |              |              |              |              |
| (2,150,500)                                    | (2,150,500)                                       | (2,150,500)  | (2,150,500)  | (2,150,500)  |              |
| (1,950,000)                                    |                                                   |              |              |              |              |
| Housing Capital Receipts Pooling Reversed to   |                                                   |              |              |              |              |
| Reserves                                       |                                                   |              |              |              |              |
| (1,866,000)                                    | (1,902,000)                                       | (1,941,500)  | (1,941,500)  | (1,941,500)  |              |
| (3,330,000)                                    |                                                   |              |              |              |              |
| Reversal of Revenue Expenditure Funded from    |                                                   |              |              |              |              |
| Capital under Statue                           |                                                   |              |              |              |              |
| (4,070,000)                                    | (970,000)                                         | (770,000)    | (720,000)    | (720,000)    |              |
| 643,700                                        |                                                   |              |              |              |              |
| Minimum Revenue Provision                      |                                                   |              |              |              |              |
| 652,600                                        | 677,200                                           | 698,300      | 712,100      | 730,900      |              |
| (3,963,300)                                    | Accounting Adjustments                            | (4,053,100)  | (3,560,500)  | (3,488,900)  | (3,425,100)  |
| 0                                              | Transfer to/(from) General Reserves               | 0            | 0            | 0            | 0            |
| 612,600                                        | Transfer to/(from) Earmarked Reserves             | 489,700      | 816,400      | 840,500      | 925,500      |
| 0                                              | Savings Target                                    | (89,500)     | (1,341,400)  | (1,424,000)  | (1,338,200)  |
| 16,267,200                                     | Total Council Net Budget                          | 16,031,900   | 14,875,700   | 15,193,700   | 15,591,100   |
| FUNDED BY                                      |                                                   |              |              |              |              |
| (734,000)                                      | Revenue Support Grant                             | (223,900)    | 0            | 0            | 0            |
| 12,420,400                                     | Tariff                                            | 12,596,500   | 11,335,900   | 11,335,900   | 11,335,900   |
| (16,322,200)                                   | Retained Business Rates (baseline)                | (16,587,700) | (15,550,900) | (15,550,900) | (15,550,900) |
| (4,635,800)                                    | Sub-total: Start-up Funding Assessment            | (4,215,100)  | (4,215,000)  | (4,215,000)  | (4,215,000)  |
| (490,730)                                      | Retained Business Rates (over and above baseline) | (572,400)    | 0            | (150,000)    | (200,000)    |
| (1,549,370)                                    | Section 31 Business Rates Grants                  | (1,493,800)  | (1,393,800)  | (1,293,800)  | (1,293,800)  |
| (582,000)                                      | Renewable Energy Retained Business Rates          | (621,000)    | (621,000)    | (621,000)    | (621,000)    |
| (50,000)                                       | Business Rates Growth                             | 0            | (100,000)    | (100,000)    | (100,000)    |
| (1,208,600)                                    | New Homes Bonus Grant                             | (862,600)    | (872,000)    | (883,000)    | (968,000)    |
| (134,800)                                      | Council Tax Support Admin Grant                   | (130,000)    | (130,000)    | (130,000)    | (130,000)    |
| (95,500)                                       | Miscellaneous Government Grants                   | (124,800)    | (71,100)     | (71,100)     | (71,100)     |
| (677,000)                                      | Capital Grants Received                           | (846,000)    | 0            | 0            | 0            |
| (5,767,400)                                    | Council Tax - BDC                                 | (6,036,200)  | (6,287,800)  | (6,544,800)  | (6,807,200)  |
| (1,076,000)                                    | Council Tax - Parishes                            | (1,130,000)  | (1,185,000)  | (1,185,000)  | (1,185,000)  |
| (11,631,400)                                   | Total Funding                                     | (11,816,800) | (10,660,700) | (10,978,700) | (11,376,100) |
| (16,031,900)                                   | (14,875,700)                                      | (15,193,700) | (15,591,100) | (15,641,000) |              |
| 34,231.95                                      | Tax Base                                          | 34,794.99    | 35,229.93    | 35,670.30    | 36,116.18    |
| 168.48                                         | Council Tax                                       | 173.48       | 178.48       | 183.48       | 188.48       |
| GENERAL FUND BALANCES:                         |                                                   |              |              |              |              |
| Balance @ 1 April                              | 1,939,000                                         | 1,939,000    | 1,939,000    | 1,939,000    | 1,939,000    |
| Movement in year                               | 0                                                 | 0            | 0            | 0            | 0            |
| Balance @ 31 March                             | 1,939,000                                         | 1,939,000    | 1,939,000    | 1,939,000    | 1,939,000    |

# Bassetlaw  District  Council Cabinet 8Th **January 2019**


## Report Of The Director Of Coroporate Resources

## Calculation Of Council Tax Base 2019/20

 
Cabinet Member: Finance Contact:  D Hill Ext.  3174 

## 1. Public Interest Test

 1.1 
The author of the report, David Hill, has determined that the report is not confidential. 
 

## 2. Purpose Of The Report

 2.1 
To set out and approve the calculation of the Council's 2019/20 tax base as required 
by The Local Government Finance Act 1992 in accordance with The Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012. 

## 3. Background And Discussion

3.1 
The Local Authorities (Calculation of Council Tax Base) Regulations 2012 (the 
council tax base regulations), specify the formulae for calculating the council tax 
base, which must be set each year between 1st December and 31st January.  


3.2 
The 'billing authority' must calculate the tax base based on information contained in 
its Council Tax valuation list on the 30th November in the year immediately preceding. 3.3 
The tax base calculations for Bassetlaw are also used by Nottinghamshire County 
Council as well as the Nottinghamshire Police and Crime Commissioner and Combined Fire Authority to determine their respective levies for 2019/20. Additionally, the figures are used by the 56 local parish and town councils throughout Bassetlaw. 3.4 
The council tax base is a measure of the number of dwellings on which council tax is 
chargeable in an area or part of an area. It is used for the purposes of calculating an authority's band D council tax. The tax base calculation has changed to take into account the introduction of the local council tax support scheme which commenced in 2013/14. 3.5 
Under the new local council tax reduction scheme, the council tax base is affected by 
whether persons living in a dwelling within an authority area are in receipt of a council tax reduction awarded under the scheme, as the billing authority foregoes council tax income from those dwellings. These local council tax reductions are reflected in the 
calculation of the council tax base, in order to calculate the correct amount of band D council tax for the billing and precepting authorities in the area. 

 3.6 
For Council Tax purposes, properties are placed in different property 'bands' based 
broadly on the value of the property, using April 1991 as the baseline valuation date. The band is used to determine the Council Tax levied for that property. 3.7 
The Council's basic tax figure is calculated in respect of band D.  Other bands are 
then calculated as a fraction of the tax at band D. 
The fractions applicable to the various Council Tax bands are as follows: 

|          |        |
|----------|--------|
| Band     |        |
| A        | B      |
| Fraction |        |
| 6/9ths   | 7/9ths |

 
3.8 
The tax base calculation is determined by identifying the number of properties liable 
to be levied and the banding in which the properties are placed and then applying relevant exemptions, discounts, including the local council tax reduction scheme, surcharges and banding reductions. The information is compiled for each parish and the authority's tax base is built up from these bands.  The resultant figures are then 
adjusted to the number of band D equivalents by applying the proportions shown above. 
3.9 
As can be seen in Appendix 1, the total number of dwellings in Bassetlaw is 52,518 (line 1). Once adjusted for discounts, exemptions, premiums and band reductions this figure reduces to 47,727.50 (line 14).  The total is then converted into the number of band D equivalents, 39,268.67 (line 16).  The figure is finally adjusted for the local Council Tax reduction scheme (line 18) to produce the tax base figure of 35,341.23 properties (line 19). 
3.10 
The final band D equivalent figure is then further adjusted to allow for a provision of 
growth of housing stock, additional requirements relating to Council Tax reduction scheme changes, anticipated losses on collection, and any other relevant foreseen adjustments.  A final tax base figure is then obtained, shown on Appendix 1 as 34,794.99 band D properties. 3.11 
Regulations under the Localism Act enacted as an amendment to LGFA 1992 state 
that a Council should calculate a tax base. The tax base recommended on the attached appendices is 34,794.99 properties, net of reduction, discounts and growth. This tax base shows an increase in band D equivalents of 563 properties compared to the tax base set for 2018/19.  This in turn will result in additional income for all 
preceptors. 3.12 
In a report of the Director of Resources to Cabinet on 4th December 2012, it was 
agreed that 'the amount of Council Tax payable in respect of long term empty dwellings after the 2 year period, be increased by 50% where regulations permit'. Under the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018, Councils have been given the power, by amending the Local Government Finance Act 1992, to increase the long term empty premium to 100% for 2019/20 where the property has been empty for more than 2 years. 3.13  The calculation of this tax base has assumed implementation of the powers 
contained in section 12 of the Local Government Finance Act 1992 (which is amended at section 11b by the 2018 Act) 

## 4. Implications

a) 
For Service Users 
 
The tax base forms the basis of the Council Tax levels for 2019/20 for Bassetlaw's Council Tax payers. The amount required to be met from Council Tax for 2019/20 (to be approved by Council on 7th March 2019) will be divided by the tax base set to determine the Bassetlaw District Council charge.  

 
 
b) 
Strategic & Policy 
 
The income received from Council Tax is key to financing the provision of Council services. 

 
c) 
Financial - Financial Ref. 19/16 
 
The tax base forms the basis of the Council's Council Tax setting resolution for 2019/20, which is due to be considered by full Council on 7th March 2019. The adjusted Bassetlaw tax base must be notified to Nottinghamshire County Council and to respective Police and Fire Authorities before 31st January 
2019. The Parish tax base figures are notified individually to the Parish Councils in order that they may determine their level of precept on Bassetlaw District Council. 

The tax base calculation performed as at 30th November 2018 is subject to a collection rate factor which has been set at 98%. 

 d)        Legal - Legal Ref. 204/01/2019 
 
The relevant regulations place a legal requirement on a billing authority to set a tax base. 

 
e)       Human Resources 
None from this report. f)       Community Safety, Equalities,  Environmental 
None from this report. g) Whether this is a key decision, and if so the reference number. 
 
This is key decision number 727. 

## 5. Options, Risks And Reasons For Recommendations

 5.1 
The Council has a statutory obligation to set a tax base and to notify precepting 
authorities.  To not set a tax base would mean a breach of the statutory requirement and there would be no basis on which to set a Council Tax for 2019/20.  
 
5.2 
Setting the Council tax base is the first step in determining the Council Tax for 
2019/20.  The tax base must be determined and notified to other relevant bodies by 
31st January each year. 

## 6. Recommendations

 
 
6.1  
Cabinet agrees that the Council tax base for the year 2019/20 shall be 34,794.99 
band D properties, subject to the Council Tax Reduction Scheme being agreed as proposed. 6.2 
That Cabinet recommends to Council the calculations set out in Appendix 1 to agree 
the Council tax base calculation for the district for 2019/20 and instructs officers to notify this figure to the major precepting authorities. 6.3 
That Cabinet recommends to Council the calculations set out in Appendix 2 figures 
which are tax bases for parts of the area and instructs officers to notify the 2019/20 
tax base to Town and Parish Councils, Parish Meetings and Charter Trustees as 
soon as is practicable. 6.4 
That Cabinet recommends to Council that the additional premium charge levied to 
properties that have been empty for a period in excess of 2 years, be increased from 50% and set at 100% for the year 2019/20. 
 

1
2
3
4
5
6
7
8
9
10
Dwellings shown on the Valuation List for the authority on 30th November 2018
Band A
Band B
Band C
Band D
Band E
Band F
Band G
Band H
TOTAL
Band A entitled 
to disabled relief 
reduction
1
Total number of dwellings on the Valuation List
26,920
7,793
6,349
6,112
3,106
1,492
689
57
52,518
2
Number of dwelling on valaution list exempt on 30th November 2018 (class B & D to W exemptions)
411
75
75
40
19
11
7
2
640
3
Number of demolished dwellings on 30th November 2018
0
0
0
0
0
0
0
0
0
4
Number of chargeable dwellings on 30th November 2018 (lines 1-2-3)
26,509
7,718
6,274
6,072
3,087
1,481
682
55
51,878
5
Number of chargeable dwellings in line 4 subject to disabled reduction on 30th November 2018
149
56
64
53
30
19
15
12
398
6
Number of dwellings effectively subject to council tax for this band by virtue of 
disabled relief
149
56
64
53
30
19
15
12
398
7
Number of chargeable dwellings adjusted in accordance with lines 5 and 6 (lines 4-5+6)
149
26,416
7,726
6,263
6,049
3,076
1,477
679
43
51,878
8
Number of dwellings in line 7 entitled to a 25% discount by virtue of occupancy on 30th November 2018
52
10,977
2,487
1,770
1,279
524
226
78
6
17,399
9
Number of dwellings in line 7 entitled to a 50% discount by virtue of occupancy on 30th November 2018
1
27
14
6
14
9
13
24
2
110
10
Number of dwellings in line 7 entitled to a 25% discount by virtue of being empty less than 6 months on 30th November 2018
433
81
46
37
17
9
7
1
631
11
Number of dwellings in line 7 entitled to a 25% discount by virtue of being empty and uninhabitable on 30th November 2018
20
1
7
11
0
1
0
0
40
12
Number of dwellings in line 7 assumed to be entitled to no discounts (line 7-8-9- 10-11)
96
14,959
5,143
4,434
4,708
2,526
1,228
570
34
33,698
13
Number of dwellings in line 7 subject to a 50% surcharge by virtue of being empty more than 2 years on 30th November 2018
120
36
16
20
9
4
5
1
211
14
Total equivalent number of dwellings after discounts, exemptions and disabled 
relief *(to 2 decimal places)*   ((line 8 x 0.75) + (line9 x 0.5) + (line 10 x 0.75) + 
(line 11 x 0.75) + (line 12) + (line 13 x 1.5))
135.50
23,785.00
7,148.75
5,836.25
5,750.25
2,954.25
1,419.50
655.75
42.25
47,727.50
5/9
2/3
7/9
8/9
1
1 2/9
1 4/9
1 2/3
2
15
Ratio to Band D
5/9
6/9
7/9
8/9
1
11/9
13/9
15/9
18/9
16
Number of Band D equivalents *(to 2 decimal places)* (line 14 x line 15)
75.28
15,856.67
5,560.14
5,187.78
5,750.25
3,610.75
2,050.39
1,092.92
84.50
39,268.67
17
Tax base for Revenue Support Grant purposes
39,268.67
18
Reduction in tax base due to Council Tax Reduction Scheme
3,927.44
19
Tax base before adjustment for growth
35,341.23
Estimate of dwellings due for completion by 31.03.19 not yet on Valuation List
144.22
Estimate of new building coming on stream in 2019/20
119.67
Grwoth in Council Tax Reduction Scheme due to additional take up
100.00
Total  
35505.12
Collection Adjustment (98%)
710.13
Taxbase for Bassetlaw for 2019/20 (2018/19 in brackets)
34,794.99
(34231.95)

## Bassetlaw District Council - Parish Council Tax Base 2019/20

| Parish/Town                       | Area Council Tax    |
|-----------------------------------|---------------------|
| Base                              |                     |
| Parish/Town                       | Area Council Tax    |
| Base                              |                     |
| Askham                            |                     |
| 82.80                             |                     |
| Markham Clinton                   |                     |
| 93.87                             |                     |
| Babworth                          |                     |
| 223.47                            |                     |
| Mattersey                         |                     |
| 246.06                            |                     |
| Barnby Moor                       |                     |
| 118.44                            |                     |
| Misson                            |                     |
| 270.72                            |                     |
| Beckingham-cum-Saundby            |                     |
| 478.44                            |                     |
| Misterton                         |                     |
| 723.06                            |                     |
| Blyth                             |                     |
| 490.50                            |                     |
| Nether Langwith                   |                     |
| 139.50                            |                     |
| Bole                              |                     |
| 54.54                             |                     |
| Normanton-on-Trent with Marnham   |                     |
| 202.95                            |                     |
| Bothamsall                        |                     |
| 91.53                             |                     |
| North & South Wheatley            |                     |
| 272.43                            |                     |
| Carburton                         |                     |
| 25.47                             |                     |
| North Leverton with Habblesthorpe |                     |
| 340.74                            |                     |
| Carlton-in-Lindrick               |                     |
| 1625.22                           |                     |
| Norton Cuckney                    |                     |
| 141.21                            |                     |
| Clarborough & Welham              |                     |
| 393.21                            |                     |
| Rampton                           |                     |
| 285.12                            |                     |
| Clayworth                         |                     |
| 143.55                            |                     |
| Ranskill                          |                     |
| 512.19                            |                     |
| Clumber & Harwick                 |                     |
| 31.68                             |                     |
| Rhodesia                          |                     |
| 236.61                            |                     |
| Dunham-on-Trent with Ragnall,     |                     |
| Fledborough & Darlton             |                     |
| 222.48                            |                     |
| Scaftworth                        |                     |
| 18.99                             |                     |
| East Drayton                      |                     |
| 117.09                            |                     |
| Scrooby                           |                     |
| 131.49                            |                     |
| East Markham                      |                     |
| 495.90                            |                     |
| Shireoaks                         |                     |
| 458.64                            |                     |
| East Retford Charter Trustees     |                     |
| 6997.05                           |                     |
| South Leverton                    |                     |
| 197.91                            |                     |
| Elkesley                          |                     |
| 242.46                            |                     |
| Sturton-le-Steeple                |                     |
| 196.38                            |                     |
| Everton                           |                     |
| 372.15                            |                     |
| Styrrup with Oldcotes             |                     |
| 252.99                            |                     |
| Gamston with West Drayton & Eaton |                     |
| 247.05                            |                     |
| Sutton                            |                     |
| 259.83                            |                     |
| Gringley-on-the-Hill              |                     |
| 347.31                            |                     |
| Torworth                          |                     |
| 84.60                             |                     |
| Harworth & Bircotes               |                     |
| 2084.04                           |                     |
| Treswell with Cottam              |                     |
| 123.75                            |                     |
| Haughton                          |                     |
| 20.79                             |                     |
| Tuxford                           |                     |
| 802.71                            |                     |
| Hayton                            |                     |
| 158.94                            |                     |
| Walkeringham                      |                     |
| 355.50                            |                     |
| Headon-cum-Upton with Grove &     |                     |
| Stokeham                          |                     |
| 161.37                            |                     |
| Wallingwells                      |                     |
| 15.12                             |                     |
| Hodsock                           |                     |
| 597.42                            |                     |
| West Burton                       |                     |
| 8.10                              |                     |
| Holbeck & Welbeck                 |                     |
| 138.87                            |                     |
| West Stockwith                    |                     |
| 116.55                            |                     |
| Laneham                           |                     |
| 151.20                            |                     |
| Wiseton                           |                     |
| 44.10                             |                     |
| Lound                             |                     |
| 200.61                            |                     |
| Worksop Charter Trustees          |                     |
| 11950.29                          |                     |
| TOTAL                             | 34794.99            |

## Cabinet

 

## 8Th January 2019

 

## Report Of The Director Of Corporate Resources Property Asset Management Plan 2019/20 Update

 
 
Cabinet Member:  Finance 
 
Contact:  Dave Hill  

 
Ext:  3174 

## 1. Public Interest Test

 1.1 
The author of this report, David Hill, has determined that the report is not confidential. 

## 2. Purpose Of The Report

 2.1 
For Members to approve the 2019/20 update to the Property Asset Management 
Plan 2015/16 to 2019/20 approved by Cabinet in February 2015. 

## 3. Background And Discussion

 
 
3.1 
In order to ensure that the Council is managing its assets more effectively, an up to 
date Asset Management Plan is essential. 3.2 
This Asset Management Plan sets out how the Council's Property Portfolio will 
contribute to the Council's main aims/key priorities identified in the Council Plan. 
 
3.3 
The appendix provides an update to the Property Asset Management Plan 2015/16 
to 2019/20 with regard to : 
 
 
Co-location of services; 
 
Maintaining assets (including condition surveys); 
 
Investment portfolio review; 
 
Property disposals. 3.4 
This is the last year of the current Property Asset Management Plan. A complete and 
comprehensive review of the Plan will need to take place in 2019/20 in order to produce a meaningful Plan for the next 5 years. 
 

## 4. Implications

a) 
For Service Users 
 
By adopting the Property Asset Management Plan the service delivery to customers of the authority will be enhanced. 

b) 
Strategic and Policy 
 
The Asset Management Plan is a five-year plan which is reviewed annually. 

 
c) 
Financial - Ref: 19/4 
 
There are no immediate financial implications arising from this report.  
However, over the next financial year, assets may be acquired and disposed of, whereby further reports will be presented to Cabinet for approval with the full financial implications outlined. 

d) 
Legal - Ref: 209/01/2019 
 
 
The legal implications are as contained within the report. e) 
Human Resources 
None contained in this report. f) 
Community Safety, Equalities, Environmental 
 
Any implications are outlined in the Asset Management Plan. The Council's 
non-operational assets are occupied by a variety of organisations on a contractual basis.  The Council seeks to eliminate access discrimination in accordance with the Equality Act 2010. g) 
This is key decision number 728. 

## 5. Options, Risks And Reasons For Recommendations

 5.1 
The Property Asset Management Plan is a key document that sets out how assets 
are effectively managed to support the efficient delivery of its priorities. 

## 6. Recommendations

 6.1 
That the Cabinet recommends approval of the Property Asset Management Plan 
2019/20 update to the Extraordinary Council on 31st January 2019. 

## Background Papers Location

QB Estates Unit - Floor 2 

Property Asset Management Plan 2015/16 to 2019/20 
 

# Bassetlaw District Council Property Asset Management Plan 2019/20 Update


## Property Asset Management Plan - 2019/20 Update 1 Forward

The purpose of the plan is to ensure that the Council's property holdings are aligned to meet strategic priorities and service needs to ensure that the right property is available in the right place, and at the right time. The goal is to get the most from our assets as they support the provision of Council services and the delivery of our priorities.  The Council will be judged on the quality of the services it delivers not the quality of its buildings, but those land and property assets do support the ongoing provision of the services provided to businesses and residents in the District. Property remains the second highest cost incurred by most public authorities after expenditure on staff, and its effective and efficient management is key to being able to deliver value for money and quality services. The Property Asset Management Plan for 2015/16 to 2019/20 details an effective strategy and robust operational plan for the management of Bassetlaw District Council's significant land and building assets over a 5 year period. Bassetlaw District Council operates a substantial property portfolio comprising of approximately 1,100 Operational Properties with a total combined asset value of just over £47.0 million.  

## 2 Bassetlaw District Council Plan 2017-20

The Council identified the following priorities in the Council Plan 2014 - 2017: 

 
Driving Efficiency and Resilience 
 
 
Supporting Business and Growth 
 
 
Enhancing Home and Place 
 The Council's land and property assets provide a key to the delivery of its services to residents of the District and delivery of these Corporate Priorities. The Asset Management Plan provides a summary of how the Council uses its land and property assets to contribute towards ambitions, whilst at the same time:- 

 Supports improvements to service delivery; 
 
 Continues to provide a significant income through property rents and capital receipts; 
 
 Identifies and drives out efficiencies, such as co-location of services. 
The Asset Management Plan is also prepared alongside the Capital Investment Strategy in order to ensure that our plans are financially sustainable. 

The focus of the Strategy is towards optimising the use of the Council's land and buildings in terms of service benefit, affordability and best value for money. The intention is to create an improved and well planned property portfolio, that is fit for purpose and able to meet changing requirements whilst at the same time is also one that costs less to run, and able to release funds to invest in improved delivery of front line services for the benefit of the community. Specifically, the objectives are: 

 
To have sufficient, fit for purpose, well maintained and managed property in the 
right locations to meet the need of services, including community facilities in district and local centres. 
 
To identify opportunities for "Total Place Initiatives" in order to reduce the number of 
administrative office buildings in the outlying district and to identify co-location opportunities to share with public sector partners where this benefits the parties in supporting improved service delivery or efficiency. 
 
To make investment in property that is prioritised corporately according to strategic 
need and to enhance the Council's commitment to the environment. 
 
To continue to support and promote regeneration and economic development and 
employment opportunities within the district. 
 
 
To support transformation of service delivery and community infrastructure using 
strategic property solutions.  
 
 
To have an estate that is fit for purpose for the delivery of all Council Services. 
 
 
To only retain investment property that generates strong income streams to help 
fund asset maintenance and support service delivery. 
 
To identify development opportunities that will encourage business into the district 
and with this create employment opportunities. 
 
To use Council land holdings to support affordable housing. 

## 2.1 Asset Management Linkages With The Council Plan 3  Co-Location Of Services

Continuing on from the earlier lettings of surplus office space within the former County Council Wing to the Two Shires Credit Union and the Worksop CAB, the DWP occupied a substantial part of the ground floor of Queens Buildings from May 2015. This letting not only improved services to users but also reinforced Queens Buildings' as a "hub" for the provision of jointly located local services. During the summer of 2018, Notts Police moved into the second and third floors of the former County Council wing. The above lettings have provided the Council with a new source of income in terms of rent and savings on building running costs recovered amounting to around £146k per annum. Nottinghamshire Police occupied of two floors at 17b The Square at Retford from January 
2016. Their relocation into the Council's building not only ensured presence of a local police station in the town centre but utilised unused office space in the building and by doing so this has reduced the Council's running costs of the building. The letting to the police at 17b The Square produced a further income of £22k per annum from office space that would have been otherwise vacant. Substantial rebuilding works have been completed at Queens Buildings which has created open plan offices on all the floors of the building. Not only has this made better use of the available space and improved the overall working environment, this enabled the vacant office space within the Old Town Hall to be available for refurbishment. Currently all the space in Queens Buildings and the former County Wing is either occupied or earmarked for occupation in the near future. 

## 4  Maintaining Assets

An essential part of Asset Management is for an effective Planned Maintenance Policy and a thorough understanding of the condition of the property portfolio in order that strategic decisions can be made with full information. Physical condition surveys were undertaken on 66 properties and sites around 5 years ago. 

That survey divided the buildings or sites up into a number of elements which is then allocated a condition category from A to D. Each element also has a "repair budget required" 
allocated to it as well as an identified life expectancy until that element requires repair or replacement. Where only a repair is identified for an element the budgeted sum reflects an upgrade to condition B (which is defined as "satisfactory - performing as intended but exhibiting minor deterioration"). There may be circumstances where a different standard is appropriate for example a short life building used for a temporary purpose. In all cases however the asset must comply with statutory requirements such as health and safety, disabled access, food hygiene. A new condition survey of all properties (excluding housing assets managed by A1 Housing) has been completed and the extent of the backlog maintenance costs identified from this work are currently being considered. From this work a new five-year planned maintenance programme is identified for each property taking into account repairs and maintenance, fire risk recommendations, access improvements and essential health and safety work. The surveys will be carried out for properties where the Council has a direct repairing obligation. The aim of the programme is to ensure that the Council's assets remain fit for purpose and to shift the focus of maintenance closer to the RICS best practice ratio of 60% (planned) - 40% (responsive) where sufficient funds exist.  Overall, this approach should reduce the cost of maintenance over the life of the programme. The five-year planned maintenance programme is monitored annually to assess the true maintenance backlog for Council properties. The identified backlog for each property will be the difference in work carried out in year against the identified programme. When possible, the opportunity to dispose of vacant and underused properties will continue to be considered with a view to further reduce backlog maintenance and generate capital receipts. One property identified was the Regal at Carlton Road, Worksop. Terms for the sale of the Regal Cinema have also been agreed thereby reducing the backlog maintenance figure by a further £900k. 

## 5. Investment Portfolio Review

The existing work plan was amended following consideration of the recently completed Employment Land Review. One of the outcomes this review identified is that several of the existing industrial estates are to be earmarked for disposal or redevelopment. The first industrial estate to be disposed of was Old Brewery Yard which generated a capital receipt of £372,000 but also had a back-log maintenance liability of £375,000. One of the older industrial buildings at the Leverton Road Industrial Estate Retford is currently under review with the intention of preparing a business case for its demolition and replacement with new units. Following a cabinet report recommending that unused land within the Harrison Drive Industrial Estate at Langold be developed to create a further four industrial units available for letting. Funding was identified to build 4 new units and building works have just started on site and the new units will be available to let from June 2019. 

 
5.1  
Key Strengths 

 
Varied Portfolio with historically relatively very low void rates, remaining at around 
2%. 
 

## 5.2 Areas For Improvement

 
Due to staff changes there are a wide variety of lease and tenancy agreements that 
have been adopted and a standard approach is required. 
 
The stock has remained static over the last five years and there is significant 
potential through ring fencing to adopt a disposal/re-investment strategy to increase income and provide new assets. 
 
As referred to above, there is an ongoing piece of work to establish the viability of 
developing up to 4 new additional industrial units on vacant BDC owned land within the Harrison Drive Industrial Estate at Langold 
 
 
Ongoing Programmed Property Maintenance (PPM) is required in order to ensure 
that investment assets are fit for purpose. 
 
 
The new Property Management software needs to be fully populated with data, 
potentially using the i Dox system used elsewhere in the Council 
 
More effective management of tenant rent arrears through early contact and use of 
bailiff action where necessary. 
 

## 5.3 Threats

 
Market volatility/demand for properties held in portfolio. 
 
 
Property condition and changes in legislation that will impact on the ability to let 
poorer quality properties. The RICS website reports the following: 
  
"As from the 1st April 2018 there will be a requirement for any properties rented out in the private rented sector to normally have a minimum energy performance rating of E on an Energy EPC. The regulations will come into force for new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020. It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an applicable exemption. A civil penalty of up to £4,000 will be imposed for breaches. There are separate regulations effective from 1st April 2016 under which a tenant can apply for consent to carry out energy efficiency improvements in privately rented properties." 

 
Tenant default (failure to pay rent and comply with repair covenants). 
 
 
Property voids. 
 

## 5.4 Key Objectives

 
Property management to maximise investment return in line with market conditions. 
 
 
Debt management through liaison with tenants and if necessary, bailiff action to 
recover arrears 
 
Minimise letting voids through pro-active property management 
 
 
Performance is challenged continuously and poorly performing properties are 
identified through benchmarking/performance measures. Assessments are to be made in respect of further investment or disposal 
 
Undertake maintenance on a planned basis to maintain asset life, repairs to take into 
account whole life costing 
 
To seek to acquire new properties where possible which can generate a financial 
return for the Council greater than that obtained for alternative non-property 
investments held by the Council in order to enhance the income streams outlined above. 

 

 
The disposal of underperforming assets as identified in the employment land review 
in order to reduce the Council's costs in terms of management and day to day maintenance and to provide a source of income to reinvest in replacement income producing assets. 
 

## 6 Property Disposals 6.1 Key Objectives

 
To generate capital receipts that can be reinvested in services or other assets that 
meet the needs of the organisation. 
 
 
To focus on the sale of non-income generating assets to minimise income loss as far 
as possible in the early stages of the programme and then through a robust property review exercise. 
 
 
As the supply of surplus property and development land comes to an end, future 
disposals will be prioritised based on investment performance as identified in the performance management framework. 
 
 
Investment and disposal decisions are based on thorough option appraisal and whole 
life costs. 
 
 
Achieve efficiency savings through disposal of surplus operational property. 
 
 
Strategic Service Priorities. 
 
 
Regeneration. 
 
 
Identification of joint service delivery and partnership working. 
 
 
Co-location. 
 
 
Property rationalisation. 
 
 
Community transfer of assets. 
 
 
Sustainability. 

## 6.2 Disposal Work Plan

A work plan has been developed which details priority actions under this Strategy.  The disposal of surplus property assets provides funding that will help deliver priorities. Increasingly the identification, marketing and subsequent disposal of surplus, under-utilised or under-performing property has become a priority for the Council.  However the timing of these disposals must have regard to the prevailing market conditions in order to ensure that the maximum benefit to the Council is achieved. The workplan for 2019/20 includes the following: 

- 
Sale of electricity sub-station sites across the district; 
- 
Land at Broad Gores, Clarborough;  Terms now agreed for a sale and with legal  
- 
Land at Turner Road, Worksop; - Terms now agreed and with legal 
- 
Land off Kingston Road, Worksop (in conjunction with the County Council); 
- 
Land at Newgate Street/Bridge Street, Worksop. this sale will complete Spring 
2019 
- 
Land and Buildings at Rectory Road, Retford  - Terms now agreed for a sale 
- 
The potential disposal of The Regal, Carlton Road, Worksop - Terms now agreed 
for a sale and with legal 
- 
Proposed sale of 88/90 Albert Road, Retford. 
 
During financial year 18/19 the Estate Division undertook number of garage site sales generating a capital receipts of £295k from the sale of 5 sites, all of these sites were underused and producing minimal levels of income The disposals work plan outlines the processes to be followed in terms of initial consultations to confirm that surplus premises are not required elsewhere within the authority, through to marketing and final disposal of the property interest. The Capital Programme remains dependent upon the generation of capital receipts from the sale of assets. There will be opportunities to dispose of land and buildings to Bersahill Ltd; the Council joint venture with Robert Woodhead Ltd. Agreed sales to the JVC will be a full market value and with the intention of creating quality housing developments. It is important to understand that this is a finite resource and the capital receipts generated from future disposals which are not linked to future initiatives and can be used as an unfettered receipt is relatively low in both number and value. The impact of the current economic climate and the remaining significant uncertainty regarding the timescale for economic recovery renders the development of a disposals work plan for a 5-year period that can be relied upon as somewhat problematic. It is not possible to predict when the market will recover, or what values will be achieved post recovery. Nevertheless, opportunities to dispose of surplus assets should still be pursued, in particular where these represent an ongoing liability to the Council regardless of the current market conditions. Whilst there are signs of property markets improving locally the position overall remains sluggish and significant improvement in the near future is unlikely.