Agenda and minutes

RESOLVED –

THAT Councillor Oliver Cooper be elected as Chair of the Resources and Corporate Performance Scrutiny Committee for this meeting only.

RESOLVED –

THAT the procedures be agreed.

Apologies for absence had been received from Councillor Andrew Parkinson, Councillor Cooper was attending as a substitute. Apologies for absence had also been received from Councillors Gardiner, Kelly and Singh.

Broadcast of the meeting

The Chair to announce the following: ‘In addition to the rights by law that the public and press have to record this meeting, I would like to remind everyone that this meeting is being broadcast live by the Council to the Internet and can be viewed on our website for twelve months after the meeting. After that time, webcasts are archived and can be made available upon request.

If you are seated in the Chamber, you are deemed to be consenting to having your contributions recorded and broadcast, including video when switched on, and to the use of those sound recordings and images for webcasting and/or training purposes.’

Any other announcements

Broadcast of the meeting

The Chair announced that the meeting was being broadcast live by the Council to the Internet and could be viewed on the website for twelve months after the meeting. After that time, webcasts were archived and could be made available upon request. Those who had asked to address the meeting were deemed to be consenting to having their contributions recorded and broadcast and to the use of those sound recordings and images for webcasting and/or training purposes.

No declarations were made.

There was no such business.

There were no deputations.

To approve and sign the minutes of the meeting held on 8 November 2021 and agree the minutes of the informal, remote meeting held on 13 December 2021.

RESOLVED –

THAT the minutes of the meeting held on 8 November 2021 and the informal, remote meeting held on 13 December 2021 be agreed as a correct records.

Report of the Leader of the Council.

Camden 2025 covers all Cabinet portfolios and areas of work within the Council, setting the overarching strategy for the Borough and therefore for the Council.

This report asks Cabinet to consider and agree a new borough framework in appendix 1, entitled ‘We Make Camden’. This is a refreshed version of what was previously Camden 2025. It recognises and builds on achievements over the last four years and updates our plans to ensure our vision for our communities reflects future challenges. It proposes the introduction of an annual state of the borough report which will be a key way of understanding impact and progress against We Make Camden.

This report also asks Cabinet to consider and agree the statement in appendix 2, entitled ‘The Way We Work’ which outlines how as an organisation, the Council will develop to deliver that vision.

Consideration was given to the report of the Leader of the Council. The report was introduced by the Director of Corporate Strategy and Policy Design.

Members asked about the reasons for changing the name of the project from Camden 2025 and what impact this would have. The Director of Corporate Strategy and Policy Design commented that 2025 was still an important milestone and metric for the Council. The name change was to take on board recommendations from the Peer Review about putting the Council in the centre of activity and creating a stronger focus on how targets were delivered.

A framework of goals and outcomes would be developed to give a greater specificity around measures of success and metrics.

Members asked questions about the viability of targets that were not directly within the Council’s control. There was acknowledgment of the Council’s role as a convenor, but Members wanted reassurance that the community ambitions were achievable. The Committee asked that realistic quantitative targets, both short term and long term, be included in the vision through the prospective state of the borough report which would track progress over time.

RESOLVED –

THAT the report be noted

Report of the Cabinet Member for Finance & Transformation.

The report sets out that the capital investment needs recommended for inclusion in the Council’s Capital Programme (set out in Appendix B1) plus the ‘pipeline’ of schemes (summarised in Appendix B2) total £208.5m. To fund these priorities, the Council estimates it will have £103.7m in capital resources over the next five years, so not all of these ambitions will be able to be funded immediately.

As prescribed within the CIPFA Prudential Code, the Council is required each year to make estimates of the total capital expenditure that it plans to incur during the forthcoming financial year and at least the following two financial years. This report therefore delivers on that minimum requirement, but also adopts a holding position by recommending for approval only a small number of capital investments that will allow us to undertake urgent work on our assets to meet our legal and contractual obligations, including some priority condition work. The proposals also support our climate emergency work and provide the projects for our climate bond, reflect current and historic policy decisions (such as supported living), and update the programme for minor, small spend projects that relate to emerging digital technology needs.

Whilst this report sets out our minimum capital investment requirements, there will be further work required throughout 2022 across a number of different strands. This includes further understanding our asset base and developing an Asset Strategy, reviewing capital governance processes, exploring new and innovative ways of bringing forward financing for the development of affordable housing and climate change initiatives and considering the way we utilise various capital funding sources such as Strategic CIL. We will also be working collaboratively with residents and members to ensure we can link in our investment decisions to the missions set out in We Make Camden.

This report also begins to map out the Council’s updated approach to agreeing and prioritising future capital investment, which will better allow it to meet these challenges by ensuring that investment remains in line with our aspirations and is reflective of the changing priorities and circumstances within Camden. This includes a new framework within which the Council’s long-term capital investment plans will be prioritised and brought forward for consideration as part of the ongoing financial planning cycle and budget setting process.

Consideration was given to the report of the Cabinet Member for Finance and Transformation, who along with the Director of Finance, introduced the report.

Members appreciated the cautious but ambitious approach that Camden were taking and asked how projects were prioritised. The Director of Finance commented that the priorities were decided through collaborative work with members, residents and partners. The approach being taken by the Council allowed for flexibility with changing priorities.

Members asked for more information and clarity on interest rate risks mentioned in the report. The Director of Finance said that interest rates risks were actively monitored in conjunction with Treasury advisers who provided regular economic data and forecasts (including interest rates and gilts). This approach meant the Council was able to take appropriate action to mitigate any risk. This longer-term outlook along with the prudential indicators was published during the year as part of the Treasury interim reports.

The Committee wanted to know how projects were decided on to be in the pipeline. They asked that as the policy became clear that it be brought to the Committee for transparency.

Action by: the Director of Finance.

RESOLVED –

THAT the report be noted.

Report of the Cabinet Member for Finance and Transformation.

In summary this report:

·       Presents budget and funding proposals that will enable the Council to balance its budget in 2022/23 and utilise available resources towards the achievement of We Make Camden outcomes.

·       Provides an update on the overall medium-term financial position for the Council, including detail from the Local Government Finance Settlement for 2022/23, and provides updates on other government announcements and the main areas of financial risk.

·       Recommends a council tax increase of 2.99%, made up of:

o   A rise of 1.99% in the 2021/22 core council tax level to support council funding at large, and;

o   A rise of 1% from the levying of an Adult Social Care Precept to support the Council in its response to the unprecedented demographic and demand pressures facing adult social care.

·       Sets out the required level of council tax income to balance the budget as:

o   £126,002,421 which equates to a proposed Camden element of council tax of £1,396.34 at the Band D level for residents not in garden squares.

·       Sets out the Garden Squares Levies for 2022/23.

·       Sets out the proposed Greater London Authority precept at £395.59, an increase of 8.8% on last year (subject to Greater London Authority approval of the budget), making the total council tax charge at Band D £1,791.93.

·       Includes the Executive Director Corporate Services’ assessment of the adequacy of general balances available to manage financial risk and the robustness of the budget.

·       Recommends fees and charges for approval by Cabinet and by Council where required.

Consideration was given to the report of the Cabinet Member for Finance and Transformation.

RESOLVED –

THAT the report be noted.

Report of the Cabinet Member for Finance and Transformation.

The Climate emergency is one of the key challenges facing the Council.  One of the ways we are planning to tackle this crisis is using Local Climate or ‘Green’ Bonds.  Local Climate Bonds are a type of ‘community municipal investment’ (or CMI) that will allow the council to raise capital to fund specific initiatives in our neighbourhoods, from electric vehicle infrastructure to solar panel installations where residents and investors can invest as little as £5.

This report sets out the proposed terms of the CMI, including the projects it will fund to help to broaden the reach of the Council’s work to tackle the climate crisis, and the proposed offer to investors. It also seeks Cabinet approval to launch a CMI, subject to the approval of the Capital Estimates and Capital Pipeline Priorities report by Cabinet on 2 March (earlier on the agenda) and Full Council on 7 March.

For residents, the CMI provides an opportunity to engage and participate in supporting the Council to achieve the renewal mission of sustainable neighbourhoods in the borough and the Council’s vision of a net-zero carbon Camden by 2030. It also provides a low-risk and fixed return investment comparable to other Government-backed investments, and a way to mobilise their savings to help tackle the climate emergency in their area.

For the Council, the CMI offers an alternative source of funding (and sits alongside the council’s other sources of borrowing for infrastructure — such as Strategic CIL, Capital Receipts and the HM Treasury’s Public Works Loan Board (PWLB) — to fund the delivery of the council’s overall investment plans). It is also a way to diversify the funding base available for capital projects. Most importantly it offers a valuable way to engage our residents in plans for decarbonisation and projects identified in our climate strategy, encouraging wider collective action.

Consideration was given to the report of the Cabinet Member for Finance and Transformation, who introduced the report.

In response to Member questions, the Cabinet Member made the following comments:

·       The investment scheme would be launched within the next few weeks.

·       Any administration costs incurred would not outweigh interest.

·       It was an opportunity for residents to invest and engage in climate change action.

·       The £1million was a cautious approach as this scheme of raising of funds was new to Camden and this was being used a proof on concept.

Members were interested in what the statistics around local investment were for similar schemes that had been implemented in other boroughs. The Director of Finance said he would enquire about these figures and circulate to the Committee.

Action by: the Director of Finance

RESOLVED –

THAT the report be noted.

Report of the Cabinet Member for Finance and Transformation.

This report outlines the Cabinet Member for Finance and Transformation’s update on headline activity, achievements, and priorities as part of their annual report for the Resources and Corporate Performance Scrutiny Committee discussion.

Consideration was given to the report of the Cabinet Member for Finance and Transformation.

In response to a Member question about pay gap figures, the Executive Director Corporate Services outlined what steps Camden had taken to have greater diversity representation across all pay grades.

Members asked whether there could be more transparency with bids for external funding to allow greater scrutiny.

RESOLVED –

THAT the report be noted.

Report of the Executive Director Corporate Services.

This paper provides a proposed outline of the 2021/22 work programme.

RESOLVED –

THAT the report be noted.

There was no such business.