Agenda, decisions and minutes

To receive any declarations of interest from any Member or Officer in respect of any item of business.

No declaration of interest was received.

No urgent matters at the time of dispatch of this agenda.

None to report.

To submit for confirmation, the draft minutes of the meeting of the Executive held on 24 October 2023.

The minutes of the previous meeting of the Executive held on 24 October, 2023 were presented for confirmation.

It was resolved that the minutes of the previous meeting of the Executive held on 24 October, 2023 be confirmed as correct.

To submit a report by the Head of Democracy.

The report of the Head of Democracy incorporating the Executive’s Forward Work Programme for the period from December 2023 to July 2024 was presented for confirmation.

The Head of Democracy updated the Executive regarding changes to the Forward Work Programme and the following were noted –

• Items 3 (Banning Animals as Prizes) and 4 (Outline and Strategic Business Case – Aethwy Extra Care Housing) as new items for the 12 December 2023 meeting of the Executive.
• Item 5 (HRA Housing Rents and Housing Service Charges 2024/5) rescheduled to the 12 December 2023 meeting of the Executive.
• Item 20 (2022/23 Annual Equality Report and 2024-2028 Strategic Equality Plan) as a new item for the 20 February 2024 meeting of the Executive.
• Item 29 (Local Housing Market Assessment) rescheduled to the 19 March 2024 meeting of the Executive.
• Item 32 (Welsh Language Standards Annual Report 2023/24) as a new item for a delegated decision by the Portfolio Member in June 2024.
• Item 34 (Corporate Scorecard Quarter 4 2023/24) as a new item for the June 2024 meeting of the Executive.
• Items 35 to 37 (Budget monitoring reports) as new items for the June 2024 meeting of the Executive.

It was resolved to confirm the Executive’s updated Forward Work Programme for the period October 2023 to May 2024 with the changes outlined at the meeting.

To submit a report by the Head of Profession – HR and Transformation.

The report of the Head of Profession (HR) and Transformation incorporating the Corporate Scorecard for Quarter 2 2023/24 was presented for the Executive’s consideration.

Councillor Carwyn Jones, Portfolio Member for Corporate Business and Customer Experience presented the report and highlighted that 91% of the performance indicators are performing above or within 5% tolerance of their targets which is reassuring at the end of Quarter 2. Some of the positive stories include the National Exercise Referral Scheme (NERS) indicators, the number of empty homes brought back into use, the Adults’ Services indicators, Children and Families’ Services indicators, homelessness indicators, waste management and highways indicators. Although a full analysis of the corporate health performance indicators for the quarter had not been possible, the majority (67%) of the indicators with available data against targets monitored in this section are performing well and are ragged Green or Yellow. At the end of Quarter 2 the performance against target is ragged Red in respect of days lost to absence per FTE but it should be noted that long term sickness is an influencing factor and equates to 62% of the absence rates for the period.  Areas being monitored by the Leadership Team to secure improvements into the future include the average days taken to deliver a Disabled Facilities grant and the turnaround of lettable units of accommodation in Housing Services, the percentage of planning appeals dismissed and the number of FOI requests responded to within timescale due to the lack of available data for the second quarter for this activity. Whilst the forecast for the Council’s financial position has improved from that reported at the end of Quarter 1, an overspend is still being projected for the year end with some service budgets coming under pressure. Expenditure is being scrutinised in order to limit the overspend.

Councillor Douglas Fowlie, Chair of the Corporate Scrutiny Committee reported from the Committee’s 21 November 2023 meeting where the Q2 Scorecard report had been scrutinised. He confirmed that the Committee had been pleased to note that 91% of indicators were performing well and had sought assurance that the three underperforming indicators would improve. The forecast overspend was noted and enquiries made about how budget pressures are being managed and mitigated. Members also asked questions about the actions being pursued in response to the increase in the average days lost to absence per FTE. The number of planning appeals dismissed was noted with questions being asked about the impact of the mitigation measures introduced. The two underperforming indicators in Housing services relating to average days taken to deliver a Disabled Facilities grant and the turnaround of lettable units of accommodation (Indicators 28 and 29 respectively) were discussed and further work regarding these areas was requested. Questions were also asked about local indicators to measure performance in connection with the Council’s net zero target. Following its discussions the Committee had been agreed in recommending the Quarter 2 2023/24 scorecard report and the mitigating measures therein to the Executive and had also  ...  view the full minutes text for item 5.

To submit a report by the Director of Function (Resources)/Section 151 Officer.

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the Council’s services at the end of Quarter 2, 2023/24 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance presented the report saying that based on the data to the end of Quarter 2, the overall projected financial position for 2023/24 including Corporate Finance and the Council Tax fund is a projected overspend of £0.364m which represents 0.21% of the Council’s net budget for 2023/24. Whilst this is an improved position from that reported at the end of Quarter 1 and is a robust performance given the challenges, some services specifically Adults and Children’s social care remain under considerable pressure as reflected by Table 1 in the report and are overspent which is offset only by under expenditure in other services within the Council. The Portfolio Member for Finance referred to the UK Government’s Autumn Statement last week which made no mention of additional funding for local government either in England or Wales which was worrying especially given the perilous state of some councils’ finances. The award of an extra £305m to Wales (a consequential of increases in spending in England) is unlikely even to cover increased pay costs in Wales before the pressures arising from increased Teachers’ pension costs are also taken into account. The local authority financial landscape in Wales is therefore concerning. 

The Director of Function (Resources)/Section 151 Officer advised that whilst the figures in being based on six months of actual expenditure are therefore firmer, the coming winter period can be challenging especially for Adults’ Social Care and Highways. The cost-of-living crisis has not abated and is likely to result in increased demand for a range of Council services. Whilst the non-teaching staff pay award for 2023/24 has been settled and the costs met from the existing provision the settlement being the same as the sum offered by the Employers back in March 2023 there is no indication that Welsh Government will provide additional grant funding to cover the cost of the Teachers’ pay increase as from September 2023 as it did in 2022. The main budget variations in the report relate to Adults and Children’s services with the position of the former having improved while the latter has deteriorated due principally to extra costs as a result of changes to current placements. Council Tax income is close to the budget and Council Tax collection rates have returned to pre-Covid levels. A rebate of £1.2m on the rates payable on Oriel Ynys Môn has been secured following appeal and will be added to the Council’s balances.

The Executive’s members considered the report and issues were raised including the possibility of Welsh Government imposing a penalty for non-achievement of recycling targets for 2021/22 and 2022/23 which could impact the outturn position of the Waste Management Service although it was also noted that recycling rates are back on an upwards trajectory helped by  ...  view the full minutes text for item 6.

To submit a report by the Director of Function (Resources)/Section 151 Officer.

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the Council’s capital budget at the end of Quarter 2, 2023/24 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance presented the report confirming that the total capital budget for 2023/24 stands at £60.018m which includes the HRA, slippage from 2022/23, grant funded additional schemes added onto the programme along with amendments since the original budget was set as illustrated by the table at paragraph 1.2 of the report. Whilst the profiled spend to the 30 September 2023 was £19m the actual expenditure is £18.704m or £19.616m when committed expenditure to the value of £912k is taken into account. The majority of projects are on target to be completed within budget and while some schemes are expected to underspend at this stage, the budgets are committed and required and slippage to 2024/25 will be requested for these schemes to complete in the next financial year.

The Director of Function (Resources)/Section 151 Officer highlighted the number of capital schemes which are now supported by grant funding with core capital funding having reduced in real terms over recent years. He also referred to the matter of dealing with the discovery of RAAC concrete in two of the Island’s schools which had diverted Property Service capacity from other activities in recent months.

The Executive’s members acknowledged the fragility of the capital budget with no real investment having been made in capital funding over many years. Members were also appreciative of the efforts of the Property Service in responding with colleagues in the Learning Service and the two schools to address the RAAC concrete issue.

It was resolved –

·         To note the progress of expenditure and receipts against the capital budget 2023/24 at Quarter 2.

·        To approve the additional schemes amounting to £7.319m to the capital programme and amendments to funding, as per Appendix C to the report which will result in a revised capital budget of £60.018m for 2023/24.

To submit a report by the Director of Function (Resources)/Section 151 Officer.

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the Housing Revenue account for Quarter 2 2023/24 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance presented the report which outlines both the revenue and capital budget performance of the Housing Revenue Account for the period and the forecast outturn for the year ending 31 March 2024. The report shows the revenue budget with a budgeted surplus of £8,044k. The gross capital budget for 2023/24 is £19,988k. Grant and other funding of £6,898k reduced the net budget to £13,090k. The combination of both the revenue budget and the adjusted capital budget gave a planned budget deficit of £5,046k to be funded from the HRA reserve. The HRA revenue budget shows an underspend at the end of the second quarter of £600k compared to the profiled budget as detailed in Appendix A to the report. Capital expenditure is £940k above the profiled budget at the end of the quarter. The forecast expenditure is £1,890k above budget at year end as detailed in Appendix B to the report.  The forecast deficit combining both revenue and capital is now £4,702k, £343k less than the budget.

The opening balance of the HR reserve stood at £12,107k. The revised budget allowed for the use of £5,046k of this balance. However the revised forecasts as reported will only use £4,702k. This will give a reserve balance of £7,405k by the end of the financial year. This balance is ringfenced and is only available to fund future HRA expenditure.

The Director of Function (Resources)/Section 151 Officer emphasised the status of the Housing Revenue Account as separate from the Council’s General Fund with its income derived from the rents on the housing stock and not from Welsh Government grant. Any surplus income is reinvested in upgrading and maintaining the existing stock to Welsh Housing Quality Standards and balances from the HRA reserve fund which have been built up over a number of years are used to fund capital expenditure. The HRA can also borrow to invest in developing new council housing. The HRA is in a robust position and is generating surplus income thereby enabling it to re-invest funds and to use borrowing powers to support further housing development in line with the strategy contained within the HRA Business Plan.  Appendix C to the report details the housing units planned and/or in development and the development budget for 2023/24.  

It was resolved to note the following –

·      The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 2 2023/24.

·       The forecast outturn for 2023/24.

To submit a report by the Director of Function (Resources)/Section 151 Officer.

The report of the Director of Function (Resources)/Section 151 Officer for the purpose of setting the Council tax base for 2024/25 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance presented the report saying that the Council as the billing authority is required to calculate the Council Tax Base for its area, and different parts of its area, and these amounts must be notified to the precepting and levying bodies by 31 December 2023. This year the Welsh Government has requested the information for the purpose of setting the Revenue Support Grant (RSG) by 14 November 2023 and for tax setting purposes (ratified by Executive decision) by 5 January 2024. The figure calculated for the Council Tax base to be used by Welsh Government to set the Revenue Support Grant for the Council for 2024/25 is 31, 241.64, a decrease of 0.10% on the previous year. This figure excludes adjustments for premiums and discounts granted by some authorities in respect of Classes A, B, and C (this does not affect the Council in Anglesey as no such discounts are granted). The figure for the Tax Base for tax setting purposes which does include adjustments for premiums is 33,170.03, an increase of 1.07% on the previous year.

The Director of Function (Resource)/Section 151 Officer explained the process by which the Council Tax Base is calculated both for the purpose of Welsh Government in determining the level of the Revenue Support Grant and also for local tax setting purposes and the factors involved including in the case of the latter the increase in the second homes premium from  75% to 100% which is expected to be ratified by Full Council in setting the budget in March, 2024 and which accounts for the increase in the tax base.  He referred to changes in the tax base from the previous year for the standard Council Tax, empty properties, and second homes noting that although the number of properties subject to the second homes premium has decreased, the proposed increase in the premium rate from 75% to 100% has had a significant impact on this element of the tax base. The changes in the tax base will affect the Council’s starting point for the revenue budget for 2024/25.

It was resolved –

·      To note the calculation of the Council Tax Base by the Director of Function (Resources) and Section 151 Officer – this will be used by the Welsh Government in the calculation of the Revenue Support Grant for the Isle of Anglesey County Council for the 2024/25 financial year, being 31,241.64 (Part E6 of Appendix A to the report).

·      To approve the calculation by the Director of Function (Resources) and Section 151 Officer for the purpose of setting the Council Tax Base for the whole and parts of the area for the year 2024/25 (Part E5 of Appendix A to the report)

·      That, in accordance with the Local Government Finance Act 1992 and the Local Authorities (Calculation  ...  view the full minutes text for item 9.

To submit a report by the Head of Housing.

The report of the Head of Housing Services incorporating the Empty Homes Strategic Plan for 2023 to 2028 was presented for the Executive’s consideration and approval.

Councillor Gary Pritchard presented the report saying that the Plan is an important element of the Administration’s vision that everyone should have the right to call somewhere home. The Plan seeks to ensure that the number of empty properties is kept to a minimum and to encourage owners to bring them back into use. The number of empty homes on Anglesey currently stands at 612 with 908 applications on the Council’s social housing register requiring suitable accommodation as of March 2023; the return of those properties to use would make a significant difference in the lives of those waiting for a home. Councillor Pritchard spoke of having seen the return to use of several empty properties within his own ward and their becoming homes for people from the locality who would otherwise still be struggling to find accommodation or in some cases having to bed down in the homes of friends or relatives. The work that has gone into making that happen is deserving of praise and is a source of pride.

The Housing Service Manager (Strategy, Commissioning and Policy) said that the Plan explains why adopting a strategic approach to addressing the issue of empty homes is important given the demand for suitable housing and current housing pressures. The Plan set outs out four main objectives and details how those will be met; it recognises that bringing empty homes back into use is a partnership endeavour and involves working together with other Council services and external agencies to deal with the different aspects of empty homes and the various legislation.

The Head of Housing Services confirmed that the Strategic Plan encapsulates the Council’s vision for bringing empty homes back into use in line with the approach it has taken over a number of years which since 2017 has seen the return of 525 empty homes into use. The Council has established a strong foundation for the work of tackling empty homes and is seen as being in the vanguard for this activity.

Councillor Douglas Fowlie, Chair of the Corporate Scrutiny Committee reported from the Committee’s 21 September 2023 meeting which considered the Empty Homes Strategic Plan and he confirmed that in recommending the Plan to the Executive, Members had discussed the approach to addressing long-term and problematic empty homes, the contribution which the Plan makes towards achieving the Council’s corporate objectives, the extent to which the Plan relies on input by partners and other services and the challenges in engaging with private sector empty home owners.

The Executive’s members welcomed the Strategic Plan as the continuation of the good work undertaken by Housing Services in dealing with empty homes over several years and they highlighted some of the success stories in transforming difficult sites such as Beaumaris Social Club, the Old Snooker Club in Holyhead as well as Plas Alltran in Holyhead and  ...  view the full minutes text for item 10.

To submit a report by the Head of Regulation and Economic Development.

The report of the Head of Regulation and Economic Development setting out progress on preparing the Outline Business Case for the Anglesey Freeport was presented for the Executive’s consideration.

The Chair provided some background information about the successful bid for Freeport status and the approval in July 2023 of the Initial Collaboration Agreement (ICA) with the port operator Stena Line. Through the ICA an interim Governing Body was set up and the Council is about to finalise a grant agreement with Welsh Government which has been used to support the development of an Outline Business Case (OBC). The OBC is being developed in line with the draft guidance for Welsh Freeports as the final guidance was not published until October 2023 but is unchanged from the draft version. The report outlines the requirements in completing the OBC and the issues involved.

The Head of Regulation and Economic Development confirmed that the timescale for the preparation and submission of the OBC has been challenging as has fulfilling the more technical aspects of the guidance’s requirements. A significant amount of work has been achieved and the Council is in a good position in terms of the information it has put together and in meeting the target submission date. Several work streams are ongoing in the background including in relation to net zero, the Welsh language, innovation, local supply chains and Fair Work to ensure that the proposal is one that works for both Anglesey and the wider northwest region. The Full Business Case will be prepared next year with a final decision expected by the UK and Welsh Governments in September 2024. In addition, a community event has been arranged in Market Hall, Holyhead for 1 December 2023 to publicise and help people better understand the Anglesey Freeport programme and the opportunities attached to the offer.

The Executive’s members thanked the Economic Development team for its efforts to date recognising that a great deal of work had been completed within a tight timescale as well as the importance of the local knowledge and understanding which the team has brought to that work. Whilst acknowledging the benefits that Freeport status is designed to create in terms of regeneration, job creation, investment and innovation, the Executive emphasised the importance of managing expectations highlighting that the Anglesey Freeport will not be operational until after the Final Business Case has been approved towards the end of next year. In response to a query about meeting the target date for the OBC, the Economic Development Manager confirmed that although the schedule is challenging and there is work still to be done, the Council is well placed to present the OBC to the expected standards in line with the November submission date.

It was resolved –

·      To authorise Officers to finalise the draft Outline Business Case (OBC)

·      To delegate authority to the Chief Executive in consultation with the Leader and Portfolio Holder for Economic Development, the Director of Function (Council Business)/Monitoring Officer and Director of Function (Resources)/Section 151  ...  view the full minutes text for item 11.

To consider adopting the following:-

“Under Section 100 (A) (4) of the Local Government Act 1972, to exclude the press and public from the meeting during the discussion on the following item on the grounds that it may involve the disclosure of exempt information as defined in Schedule 12A of the said Act and in the attached Public Interest Test.”

It was resolved under Section 100 (A)(4) of the Local Government Act 1972, to exclude the press and public from the meeting during the discussion on the following item on the grounds that it involved the disclosure of exempt information as defined in Paragraph 14, Schedule 12A of the said Act and in the attached Public Interest Test.

To submit a report by the Head of Regulation and Economic Development.

The report of the Head of Regulation and Economic Development with regard to the governance and operational arrangements of the Anglesey Freeport was presented for the Executive’s consideration.

The Chief Executive guided the Executive’s members through the report which set out the issues to be considered and resolved in coming to a determination and agreement on the governance and operational aspects of the Anglesey Freeport. A paper summarising the Council’s position in relation to governance (Anglesey Freeport Governance Options) was attached as Appendix 1 to the report. The Isle of Anglesey County Council will be the Accountable Body for the Anglesey Freeport it being a requirement to designate a local authority as the accountable body as a condition of the Governments. Appendix 2 to the report sets out the role of the Accountable Body as agreed by the Freeport Governing Body which was established under the Interim Collaboration Agreement between the Council and Stena Line following the successful bid for Freeport status. The report also provided an update on the position regarding capital and operational funding and tax sites in the context of preparing the OBC, the issues involved and the next steps. A map of Tax Sites was included as Appendix 3 to the report. It was noted that further reports on these matters would be brought to the Executive in due course as the work progresses and evolves.

It was resolved –

·      To agree that the Isle of Anglesey Council acts as the Accountable Body with the responsibilities as outlined within the report.

·      To delegate authority to the Chief Executive in consultation with the Leader and Portfolio Holder for Economic Development, the Director of Function (Council Business)/Monitoring Officer and Director of Function (Resources) /Section 151 Officer to progress with other partner arrangements for the Anglesey Freeport’s governance structure and to ensure full compliance with appropriate Council governance requirements.

·      That the Executive receive a future report on proposed governance arrangements setting out the Council’s role in the Anglesey Freeport’s governance structure once further progress has been made on the issues outlined in the report.