Agendas, reports and minutes

Minutes of Special Meeting of the Highland Council held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Thursday, 14 February 2019 at 10.30am.

1.  Calling of the Roll and Apologies for Absence
A’ Gairm a’ Chlàir agus Leisgeulan

Present:    
Mr G Adam, Mr R Balfour, Mrs J Barclay, Mr A Baxter, Mr B Boyd, Mr R Bremner, Mr I Brown, Mr J Bruce, Mrs C Caddick, Miss J Campbell, Mrs I Campbell, Mrs H Carmichael, Mr A Christie, Mr G Cruickshank, Dr I Cockburn, Mrs M Cockburn, Ms K Currie, Mrs M Davidson, Mr J Finlayson (v/c), Mr M Finlayson, Mr C Fraser, Mr L Fraser, Mr J Gordon, Mr K Gowans, Mr J Gray, Ms P Hadley, Mr T Heggie , Mr A Henderson, Mr A Jarvie, Ms E Knox, Mr R Laird, Mr B Lobban, Mr D Louden, Mrs L MacDonald, Mr R MacDonald, Mr A MacInnes, Mrs D Mackay, Mr D Mackay, Mr W MacKay (v/c), Mr G MacKenzie, Mrs I MacKenzie, Mr S Mackie, Mr A Mackinnon, Mrs A MacLean, Mr C MacLeod, Mr D MacLeod, Mr D Macpherson, Mr R MacWilliam, Mrs B McAllister, Mr J McGillivray (v/c), Mr N McLean (v/c), Mr H Morrison, Ms L Munro, Mrs P Munro, Mrs M Paterson, Mr I Ramon, Mr M Reiss, Mr A Rhind, Mr D Rixson, Mrs F Robertson, Mrs T Robertson, Mr K Rosie, Mr G Ross, Mr P Saggers, Mr A Sinclair, Ms N Sinclair, Mr C Smith, Ms M Smith, and Mr B Thompson. 
     
In Attendance:    
Chief Executive
Depute Chief Executive/Director of Corporate Resources
Director of Development & Infrastructure
Interim Director of Care & Learning
Director of Community Services

Mr B Lobban in the Chair

Apologies for absence were intimated on behalf of Mr B Allan, Mrs G Campbell-Sinclair, Mr R Gale, Mr A Graham and Mrs C Wilson.

Prior to commencement of the formal business, the Convener drew attention to an error which had been carried forward in relation to Item 4(v) on the agenda and in this regard confirmed that the estimated HRA surplus in 2019/20 to be applied as capital from current revenue to fund HRA capital investment was £2.5m (and not £2.148m as had been stated).

At this point, and in response to a point of order, it was confirmed that adjournments throughout the meeting could be arranged if and when necessary for any Member who wished to seek advice on alternative budget proposals which they might wish to put forward.    

2.  Declarations of Interest
Foillseachaidhean Com-pàirt

The Council NOTED the declarations of interest as set out in Appendix 1 to these Minutes.  

3.  Revenue Budget 2019/20 to 2021/22    
Buidseat Teachd-a-steach agus Cìs Comhairle 2019/20
   
There had been circulated Joint Report No. HC/2/19 dated 9 February 2019 by the Chief Executive and Depute Chief Executive/Corporate Resources.

During a summary of the report, it was advised that the Scottish Government had announced its draft budget for 2019/20 in December but could not be viewed as final until it had been formally approved on 21 February. However, the detail of the budget contained a number of key changes to the Local Government settlement in that, whilst the overall cash level of funding would increase from 2018/19, the Council would be expected to incur additional expenditure to deliver Scottish Government priority policies, including increased early years provision and health and social care. 

Within the overall resource available, the money to provide existing services had reduced by just under £5m from 2018/19 and this reduction in funding for existing services, together with pay and other cost pressures, contributed to the overall budget gap being faced by the Council.

Total grant funding for the Council had however increased by £4.228m since the announcement in December and as such the Administration had indicated its intention to use this improved settlement to set aside funding for investment in roads infrastructure and to create a Change Fund as detailed in the report.

The Scottish Government had only announced a one year budget whilst the Council was intending to set a three year budget. For planning purposes, it had therefore been necessary to assume an annual reduction in funding of 1% on the basis that there would be a consequential impact on the budget gap should this not be the case.

However, as part of the agreed budget, the Scottish Government had made a commitment to bring forward a three year funding settlement for Local Government from 2020/21 onwards and this was welcomed. In addition, a number of commitments to potential changes to Local Government taxation raising powers had been made, including consultation in the current year on the principles of a local determined tourist tax prior to introducing legislation to permit Local Authorities to introduce a transient visitor levy, support for an amendment to the Transport (Scotland) Bill to enable Local Authorities to introduce a workplace parking levy and the devolving of Non-Domestic Rates Empty Property relief to Local Authorities in time for the next revaluation.

The revised budget proposals also contained two significant items of note, namely Local Authorities having the flexibility to increase Council Tax in 2019/20 by up to 4.79% (whereby in the past two years any increase had been capped at 3%) and the option to reduce the spending allocation to adult social care by 2.2% compared with 2018/19 (excluding the additional funding being provided as part of the settlement).

In relation to the budget gap, it was noted that this had been identified as £60.297m (10.65% of the 2018/19 budget) for the period from 2019/20 to 2021/22 and reflected the difference between the estimated costs of continuing current service levels together with the additional costs of any new expenditure commitments and the income which the Council would have available to it over the period.

With specific reference to the funding requirement for 2019/20 to 2021/22, and in terms of the incremental budget approach which had been used for the three year period, the starting point for that approach, the budget figure of £566.289m, was the net revenue budget in the current financial year, adjusted to take account of any already agreed savings. Added to the figure was the anticipated cost of pay awards for Council employees and an allowance had also been made for budget pressures of £10.798m over the period. The need to increase reserves for both specific and general purposes had also been recognised, with proposals focusing on the establishment of a Change Fund of £2.5m in 2019/20 and an annual increase in general reserves of £2m from 2020/21 onwards.

Finally, and in respect of risk implications, it was highlighted that agreement of the budget required Services to manage budgets, together with the delivery of a significant number of savings, which represented a significant challenge. There was a particular risk around those savings where the actions required to deliver them were still to be fully determined and as such close monitoring throughout the year in this regard would be essential.                        

Thereafter, the Budget Leader, in moving the recommendations within the report, confirmed that this was a budget for jobs, performance and change. The good news was that the Council would have nearly £600m to spend in the next year and this would enable the delivery of outstanding projects across the Highland area. In thanking the talented and dedicated staff across the Council for their input to the budget process, he also thanked the members of the public who had also taken part in the process.   

Specifically, it was confirmed that the launch of the new approach to involving and engaging the public and staff in the budget setting process, including identifying and shaping Council priorities, had been undertaken in November 2018 and had included over fifty engagement sessions, an online survey, budget challenge tool and Facebook chat sessions. Feedback had helped to inform a two day Seminar in January which had focused on internal and external governance arrangements, community engagement and participation, new approaches to delivering service change and transformation and developing a flexible and capable workforce. It had also been integral to shaping the budget themes of efficiency, income generation, redesign, workforce and the approach to meeting the budget gap. 

In this respect, the Council’s Change Strategy for 2019/2022 had been set out in the accompanying paper to the report – ‘A Sustainable Highland’ – which set out the vision for change and how it would be achieved. Whilst it was anticipated that the delivery of the required changes would be difficult, it was intended to establish a Programme Management Office to ensure that there was better collaboration and co-ordination across the Council, better visibility of initiatives, more efficient and faster delivery of projects with greater returns, better risk mitigation and structured risk resolution and a clear and consistent mechanism for assessing potential projects arising from Member, staff and public feedback.              

The Leader of the Opposition highlighted the engagement of the SNP Group in the cross-party discussions on the budget and the clear expectation that the savings now proposed by the Administration would be delivered in the coming year. In addition to this, the SNP Group had also identified some alternative savings which would be formally put forward later in the meeting and included reference to Ward Discretionary Budgets and High Life Highland in particular.

In relation to the Scottish Government settlement, it was suggested that there was a need for the Administration to review what was currently included in the core budget and in this regard the additional £4m which had been received was welcomed, not least in terms of enabling a Change Fund to be set up and allowing an additional £1.5m to be invested in roads across the area. The Scottish Government commitment to considering a Transient Visitor Levy was also welcomed. Reference was also made to the fact that the Administration had previously advocated for the ability to raise Council Tax in previous years but had now taken a decision not to raise it for the forthcoming year which was welcomed.

Finally, and in noting that the opportunity would be taken to replenish reserves whenever and wherever possible, thanks were conveyed to the Chief Executive and Officers across the Council for their help and input to the SNP Group in terms of the budget process.

In response, the Budget Leader confirmed that cross-party monthly meetings in relation to the budget situation would be arranged from the following month. In addition, a Resources and Improvement Board was to be set up, involving himself and the Chief Executive and Depute Chief Executive/Director of Corporate Resources, to take forward the budget proposals and that this would include a focus on issues around the potential for future income generation.

At this point in the meeting, the alternative budget proposals from the SNP Group were tabled.

Following a request from the Convener for amendments in relation to the first section of the budget papers – 

Mr A Jarvie, seconded by Mr A Sinclair, moved that in relation to Paragraph 1.25 (Travel and Hire Desk), the saving should be increased by £23k in the forthcoming year and that this should be used in relation to Paragraph 2.9 (Graduated % increase in fees and charges in Community Services) instead and specifically to decrease the cost of Fish Export Certificates by 20%.

Following a vote between the Motion from the Budget Leader, seconded by the Depute Leader of the Council, and the Amendment from Mr A Jarvie, seconded by Mr A Sinclair, the MOTION received 52 votes and the AMENDMENT received 13 votes, with 2 abstentions, and the MOTION was therefore CARRIED, the votes having been cast as follows:-

For the Motion:
Mr G Adam, Mr R Balfour, Mrs J Barclay, Mr B Boyd, Mr R Bremner, Mr I Brown, Mrs C Caddick, Miss J Campbell Mrs B Campbell, Mrs H Carmichael, Mr A Christie, Dr I Cockburn, Mrs M Cockburn, Ms K Currie, Mrs M Davidson, Mr M Finlayson, Mr J Finlayson, Mr L Fraser Mr C Fraser, Mr J Gordon, Mr K Gowans, Mr J Gray, Ms P Hadley, Mr T Heggie, Mr A Henderson, Ms E Knox, Mr R Laird, Mr B Lobban, Mr D Louden, Mrs L MacDonald, Mr R MacDonald, Mrs D Mackay, Mr G MacKenzie, Mrs A MacLean, Mr C MacLeod, Mr D Macpherson, Mr R MacWilliam, Mrs B McAllister, Mr J McGillivray, Mr N McLean, Mr H Morrison, Ms L Munro, Mrs M Paterson Mr M Reiss, Mr A Rhind, Mr D Rixson, Mrs T Robertson, Mrs F Robertson, Mr G Ross, Ms N Sinclair, Ms M Smith and Mr B Thompson.

For the Amendment:  
Mr A Baxter, Mr J Bruce, Mr G Cruickshank, Mr A Jarvie, Mr D Mackay, Mr W MacKay, Mrs I MacKenzie, Mr S Mackie, Mr D MacLeod, Mr I Ramon, Mr P Saggers, Mr A Sinclair and Mr C Smith.

Abstentions:  
Ms P Munro and Mr K Rosie.

In relation to the tabled Budget Proposals from the SNP Group and specifically Paragraph 2.16 (Increased income maximisation target for High Life Highland), it was AGREED to accept the proposal to restrict High Life Highland card membership price increases at inflation on the basis that a £30 card would increase to only £31 and a £20 card to £20.60 (subject to agreement by the High Life Highland Board).                     

Thereafter, and during general discussion, the following issues were raised:-

• care had to be taken in relation to the implementation and potential impact of the proposals in the report and specific reference in this regard was made to school lets which had reduced over the past year due to previous increases in charges;  
• in relation to Paragraph 1.2 (Revision of all staffing allocations to schools and a targeted approach to management of absence), there was disappointment in relation to the lack of detailed information on these proposals and concern that this had the potential to cause consternation for parents and parent bodies when the full implications were realised. In this regard, it was highlighted that schools were very limited in terms of what could be achieved through partnership working with external bodies as there were very few external funding opportunities available. Also, the proposal in relation to returning pupils with additional support needs to mainstream would have to be very closely monitored and great care needed to be taken when making reference to the Council being ‘over resourced’, specifically in terms of comparing ‘like for like’ with other Local Authorities. It also had to be highlighted that the four largest schools accounted for the delivery of education to approximately one third of the pupils in the Highland area and the ratio of staffing in these schools was significantly poorer in comparison with other areas. In view of all of these issues, it was imperative that the Change Fund was available to deal with any future and unforeseen impacts which might arise from these proposals;          
• in relation to Paragraph 1.19 (Grass Cutting), and specifically in regard to the proposals as to how this saving would be delivered, it was highlighted that consultation was currently being undertaken with local communities across the Highlands to identify local solutions and this had to be closely monitored and taken into account as part of any future proposals;
• both Street Cleaning and Grass Cutting were highly visible issues in terms of the delivery of Council services and as such the SNP Group, through consultation on the budget process, had identified measures to reduce the original planned level of savings in both cases and this was welcomed; and
• in regard to the proposals around additional support needs, it was important to assess the performance of the Council in comparison with other Local Authorities but care had to be taken in assuming that any comparison was being undertaken on a ‘like for like’ basis. In this regard, it was clear that the situation could be improved and it was imperative that the clear links between additional support needs and deprivation were recognised and that a system where need was dictated by want did not prevail. As such, a new system of governance required to be implemented in order to focus on these issues and this should also include addressing current concerns about the worrying stress levels being experienced by teachers as a result of workloads; and
• there was a need to thank the Budget Leader and Mr M Reiss for the work which they had undertaken throughout the budget process. 

At this point, Mr A Baxter, seconded by Mr N McLean, moved that, in relation to Paragraph 2.9 (Graduated % increase in fees and charges in Community Services) and specifically the Corran Ferry, a flat charge of £1 per foot passenger should be introduced in order to offset the proposed 3% increase in fees.

Following a vote between the Motion from the Budget Leader, seconded by the Depute Leader, and the Amendment from Mr A Baxter, seconded by Mr N McLean, the MOTION received 42 votes and the AMENDMENT received 24 votes, with 2 abstentions, and the MOTION was therefore CARRIED, the votes having been cast as follows:-

For the Motion:
Mr G Adam, Mr R Balfour, Mrs J Barclay, Mr J Bruce, Mrs C Caddick, Miss J Campbell, Mrs B Campbell, Mrs H Carmichael, Mr A Christie, Mr G Cruickshank, Mrs M Davidson, Mr M Finlayson, Mr J Finlayson, Mr J Gordon, Mr J Gray, Mr T Heggie, Mr A Henderson, Mr A Jarvie, Mr B Lobban, Mr R MacDonald, Mrs D Mackay, Mr W MacKay, Mr A Mackinnon, Mrs A MacLean, Mr D MacLeod, Mr D Macpherson, Mrs B McAllister, Mr J McGillivray, Mr H Morrison, Ms L Munro, Mrs M Paterson, Mr I Ramon, Mr M Reiss, Mr A Rhind, Mr D Rixson, Mrs T Robertson, Mrs F Robertson, Mr G Ross, Mr P Saggers, Ms N Sinclair, Mr C Smith and Mr B Thompson.

For the Amendment:  
Mr A Baxter, Mr B Boyd, Mr R Bremner, Mr I Brown, Mrs M Cockburn, Dr I Cockburn, Ms K Currie, Mr C Fraser, Mr K Gowans, Ms P Hadley, Ms E Knox, Mr R Laird, Mr D Louden, Mrs L MacDonald, Mr A MacInnes, Mr D Mackay, Mr G MacKenzie, Mr C MacLeod, Mr R MacWilliam, Mr N McLean, Ms P Munro, Mr K Rosie, Mr A Sinclair and Ms M Smith.
 
Abstentions:
Mrs I MacKenzie and Mr S Mackie.

Thereafter, and also in relation to Paragraph 2.9 but with specific reference to Burial Fees, Mr S MacKie, seconded by Mr C Smith, moved that the Council should introduce ancillary services for families and implement an initial memorial wall offering to generate £0.035m. Also, to use the revenue from the ancillary services to reduce the 2019/20 savings by £0.032m and to extend the child burial scheme to 18 year olds (£0.003m). This would reduce the increase to 1.6% in the current financial year.

Following a vote between the Motion from the Budget Leader, seconded by the Depute Leader, and the Amendment from Mr S Mackie, seconded by Mr C Smith, the MOTION received 36 votes and the AMENDMENT received 29 votes, with 1 abstention, and the MOTION was therefore CARRIED, the votes having been cast as follows:-

For the Motion:
Mr G Adam, Mr R Balfour, Mrs J Barclay, Mr B Boyd, Mr I Brown, Mrs C Caddick, Mrs B Campbell, Miss J Campbell, Mrs H Carmichael, Mr A Christie, Mrs M Davidson, Mr J Finlayson, Mr M Finlayson, Mr J Gordon, Mr J Gray, Mr T Heggie, Mr A Henderson, Mr B Lobban, Mr R MacDonald, Mrs D Mackay, Mr W MacKay, Mr A Mackinnon, Mrs A MacLean, Mr D Macpherson, Mr R MacWilliam, Mrs B McAllister, Mr H Morrison, Ms L Munro, Mrs M Paterson, Mr M Reiss, Mr A Rhind, Mr D Rixson, Mrs F Robertson, Mrs T Robertson, Mr G Ross and Mr B Thompson. 

For the Amendment:  
Mr A Baxter, Mr R Bremner, Mr J Bruce, Mrs M Cockburn, Dr I Cockburn, Mr G Cruickshank, Ms K Currie, Mr K Gowans, Ms P Hadley, Mr A Jarvie, Mr R Laird, Mr D Louden, Mrs L MacDonald, Mr A MacInnes, Mr D Mackay, Mrs I MacKenzie, Mr G MacKenzie, Mr S Mackie, Mr C MacLeod, Mr D MacLeod, Mr N McLean, Ms P Munro, Mr I Ramon, Mr K Rosie, Mr P Saggers, Mr A Sinclair, Ms N Sinclair, Mr C Smith and Ms M Smith. 

Abstention:
Mr J McGillivray.

At this point, and in relation to Paragraph 2.2 (Catering Service Income – Increase school meal prices by 5p per meal), it was AGREED to accept an alternative proposal from the SNP Group as follows – redesign school meals vis a vis the Deloitte Report to the Redesign Board and (a) choose a school that performed well and study why in relation to choice of meals, little competition out with school and food suppliers and duplicate the model across some or all schools where possible and (b) avoid waste so order less food to throw away. Also, take three months to study and implement in August 2019 across Highland schools.

During continuing general discussion, Members raised the following issues:-

• in relation to Paragraph 2.9 (Graduated % increase in fees and charges in Community Services) and specifically the Uplift of Green Waste, there was concern that the increase of £5 per brown bin could lead to this service being less well used in future and it was suggested that this should be closely monitored as the new charges were implemented;
• with regard to Paragraph 2.17 (Planning and Building Warrant Fee Income), and whilst supporting this saving, it was suggested that this proposal should be monitored and if necessary consideration should be given to additional staffing within this Service as a ‘spend to save’ measure;
• in terms of any additional funding being made available for Ward Discretionary Budgets, consideration should be given to reallocating a percentage of this funding to local Community Councils and Community Partnerships as many were struggling to meet current costs and this would represent a ‘statement of faith’ in the services which they provided;
• it was imperative that the savings associated with the Care & Learning Service were handled sensitively and with the involvement of all stakeholders to ensure the best possible outcomes for all concerned and most especially to ensure that all children across the Highlands reached their full potential;
• in relation to Paragraph 2.3 (Electric Vehicle – Recharging), it had to be recognised that this was something which was still at a relatively early stage of its development and as such there was a need to be cautious in terms of identifying savings at this stage;
• in regard to Paragraph 2.21 (Waste Management), there was concern that changes/restrictions in relation to Waste Recycling Centres could lead to an increase in fly-tipping and this would therefore have to be closely monitored from the outset and revisited if necessary;
• in relation to Paragraph 4.4 (Children’s Services Redesign), and with specific reference as to how the proposed savings would be delivered, it was highlighted that the Pupil Equity Fund and the Scottish Attainment Challenge Fund were meant to be used as an addition to (and not instead of) core Council funding and there should therefore be no instruction from the Council to schools on how such funding streams were to be used and they should not be used to meet savings targets. There was also a need to closely monitor staffing issues in line with the proposed savings measures in order to avoid any potential problems for local communities in this regard;
• in relation to Paragraph 4.6 (Implementation of Redesign Board recommendations), it was disappointing to see the inclusion of income from car parking charges despite previous assurances that local consultation would be undertaken in the first instance. In this regard, a detailed breakdown of the proposed saving of £0.8m was required and specifically clarification as to how much of this equated to car parking income generation and the areas in which it was expected to be implemented;
• it was felt that consideration of the Capital Programme should have been undertaken at the same time as the Revenue Budget;
• it was imperative that a redesign exercise was undertaken in relation to the proposals for Additional Support Needs, specifically to enable a full understanding of all issues involved in conjunction with Head Teachers and parents. In this respect, it was suggested that there was no support for any reduction in Additional Support Need or Pupil Support Assistant frontline staff;
• it had to be highlighted that Highland Council was one of only very few Local Authorities who were able to present a budget which avoided reference to large scale compulsory redundancies and this was welcomed, together with the proposals for making the Council more commercially minded and identifying income generation opportunities in future;
• in regard to Paragraph 3.17 (Sustainable Education Programme), there was some concern that this had already been the subject of review and a way forward agreed with those concerned and this now represented revisiting that agreement with further additional consultation;
• in relation to Paragraph 4.2 (Support Services), it was considered that an excellent service was currently being provided and there was therefore disappointment at the scale of the savings being proposed at this time which would have a subsequent impact on pupils. As such, the SNP Group had looked closely at this proposal and would be presenting an amendment in this regard;
• in relation to Paragraph 4.1 (Benchmarking of support in schools), there was a need for detailed consideration as to how and why the highest reported levels of Additional Support Need in Scotland had been recorded in Highland with 37.2% of primary pupils in this category (against a Scottish average of 23.5%) and 40.6% of secondary pupils (against a Scottish average of 29.9%); and
• there was general concern that the specific detail and/or outcomes arising from many of the budget proposals would not be known until a later date, particularly in relation to educational issues, and also in relation to the current low level of reserves should it be necessary to have to deal with any unanticipated consequences during the following year.                                       

At this point, the SNP Group, having engaged with the budget process on the basis of stability, trust and scrutiny, requested that the following issues be either reviewed or set up and completed within a 12 month period or in parallel with the Redesign Board – 

(a)    a complete review of Education from Early Years through to 18 – this must include cared for children and where the Council was failing at present. A team to be set up, including representation from the SNP Group, to look at this on a monthly basis to review and evaluate changes;
(b)    the Care, Learning & Housing Committee to be split into 2 sections – Health Care & Housing and Education;
(c)    a complete review of property and rented property that the Council had on its portfolio;
(d)    a complete review of borrowing due to money being cheap at present to enable the Council’s capital spend for schools and roads to be increased – this to be done before Brexit on 29 March;
(e)    a complete review of electricity usage and this usage to be put out to auction with bids to come in for supply. Also, include houses owned by the Council and do this as a separate issue to see if the Council could reduce fuel poverty and make a slight profit on domestic use; and
(f)    NHS cross party arrangements to be set up with the prime objective being better outcomes with the NHS Joint Partnership.

In response, the Leader of the Council confirmed that a written response on all of the issues raised would be provided for the SNP Group in due course.

Thereafter, it was AGREED to accept a new funding proposal from the SNP Group for additional funding for Ward Discretionary Budgets in the sum of £210k in 2019/20 in order to inject funds back into communities to help local projects or fund cash strapped Community Councils who were struggling to make ends meet. Localism and community empowerment were key agenda items for the Council and had to be upheld as important. Specifically, this proposal was to give back £10k to each Ward Discretionary Budget for communities to bid into – this was a one-off saving to assist groups to find match funding and/or also get involved in participatory budgeting.

It was also AGREED - in relation to Paragraph 4.2 (Support Services) – to accept the alternative proposal from the SNP Group to remove £235k from the proposed saving of £354k in 2019/20 thereby leaving a saving of £119k. 

For clarification at this point, it was noted that the alternative proposals/amendments which had been put forward by the SNP Group in the total sum of £650k would be fully funded from additional savings which they had identified in respect of the following – Estate savings/Office Rationalisation, Miscellaneous – Infrastructure, ICT, Deloitte, Housing savings and Invoice savings through amendment to credit terms.

In relation to Paragraph 3.11 (Placement Service Change Programme), and following an alternative proposal being put forward by Mr A Jarvie that, in view of the fact that this was a vast and complex issue, there should be a full and detailed report presented to the next possible meeting of the Care, Learning & Housing Committee on this subject, including how Highland foster carer capacity could be grown within the Council, it was AGREED that a detailed report would come forward to the next possible meeting of that Committee to demonstrate clearly how a robust evaluation would be undertaken in terms of delivering the future savings which had been identified.

In relation to Paragraph 3.8 (Specialist Teachers), Mr A Jarvie, seconded by Mr P Saggers, moved that £500k should be taken from the Self Insurance Fund, reducing the balance to slightly over funded, in order to set up a Fund to deliver Additional Support Need training to teachers.

On a vote being taken between the Motion from the Budget Leader, seconded by the Depute Leader, and the Amendment from Mr A Jarvie, seconded by Mr P Saggers, the MOTION received 55 votes and the AMENDMENT received 10 votes, with no abstentions, and the MOTION was therefore CARRIED, the votes having been cast as follows:-

For the Motion:
Mr G Adam, Mr R Balfour, Mrs J Barclay, Mr A Baxter, Mr B Boyd, Mr R Bremner, Mr I Brown, Mrs C Caddick, Mrs B Campbell, Miss J Campbell, Mrs H Carmichael, Mr A Christie, Dr I Cockburn, Mrs M Cockburn, Ms K Currie, Mrs M Davidson, Mr M Finlayson, Mr J Finlayson, Mr C Fraser, Mr J Gordon, Mr K Gowans, Mr J Gray, Ms P Hadley, Mr T Heggie, Mr A Henderson, Mr R Laird, Mr B Lobban, Mr D Louden, Mrs L MacDonald, Mr R MacDonald, Mr A MacInnes, Mrs D Mackay, Mr W MacKay, Mr G MacKenzie, Mr A Mackinnon, Mrs A MacLean, Mr C MacLeod, Mr D Macpherson, Mr R MacWilliam, Mrs B McAllister, Mr J McGillivray, Mr H Morrison, Ms L Munro, Ms P Munro, Mrs M Paterson, Mr M Reiss, Mr A Rhind, Mr D Rixson, Mrs F Robertson, Mrs T Robertson, Mr K Rosie, Mr G Ross, Ms N Sinclair, Ms M Smith and Mr B Thompson. 

For the Amendment:  
Mr G Cruickshank, Mr A Jarvie, Mrs I MacKenzie, Mr S Mackie, Mr D Mackay, Mr D MacLeod, Mr I Ramon, Mr P Saggers, Mr A Sinclair and Mr C Smith.                                     

Finally, a new proposal was presented by Mr A Jarvie in relation to Sustainable and Equitable Highland Social Housing which it was suggested could deliver more housing stock, a reduction in the impact of homelessness on individuals and increased investment in existing stock improvements. In terms of outcomes, it was highlighted that there was the potential for an additional 115 new Council houses to be built, an 88% increase of £2.221m for improvements to current stock, £0.150m saving against homelessness and approximately £0.142m extra Council Tax revenue. 

In this regard, the Leader of the Council AGREED to provide a commitment that a rapid review of the feasibility of this proposal would be undertaken and a response provided by the end of March 2019.     

Thereafter, Members:- 

i.    AGREED the Council’s change programme, ‘A Sustainable Highland’, to deliver £37.456m of savings over the next three years – subject to the amendments/additions agreed at the  meeting in relation to High Life Highland card membership prices, School Meals, Ward Discretionary Budgets, Support Services, the Placement Service Change Programme and Sustainable and Equitable Highland Social Housing (all as detailed below); 

Paragraph 2.2 – School Meals – redesign school meals vis a vis the Deloitte Report to the Redesign Board as follows – (a) choose a school that performed well and study why in relation to choice of meals, little competition out with school and food suppliers and duplicate the model across some or all schools where possible and (b) avoid waste so order less food to throw away. Also, take three months to study and implement in August 2019 across Highland schools;

New Funding Title – Injection into Ward Discretionary Budgets - £210k in 2019/20 – inject funds back into the communities to help local projects or fund cash strapped Community Councils who were struggling to make ends meet. Localism and community empowerment were key agenda items for the Council and had to be upheld as important. Proposal was to give back £10k to each Ward Discretionary Budget for communities to bid into - this was a one-off saving to assist groups to find match funding and/or also get involved in participatory budgeting;

Paragraph 4.2 – Support Services – remove £235k from the proposed saving of £354k in 2019/20 thereby leaving a saving of £119k.

(Clarified that Paragraph 2.2, the New Funding Title and Paragraph 4.2 above were all part of the budget proposals from the SNP Group which had specified savings of £650k in the first year through estate, miscellaneous and invoice savings in order to finance the above and also, with reference to saving proposal Paragraph 2.16, to reduce the proposed income maximisation target by £205k to allow High Life Highland to restrict card membership price increases at inflation);

Paragraph 3.11 – Placement Service Change Programme – agreed that a detailed report would be submitted to the next possible Care, Learning & Housing Committee to demonstrate clearly how a robust evaluation would be undertaken in terms of delivering the future savings which had been identified; and

New Proposal – Sustainable and Equitable Highland Social Housing – new and detailed proposals related to the provision of more housing stock, reduction in the impact of homelessness on individuals and increased investment in existing stock improvements. In terms of outcomes, potentially an additional 115 new Council houses to be built, an 88% increase of £2.221m for improvements to current stock, £0.150m saving against homelessness and approximately £0.142m extra Council Tax revenue. In this regard, the Leader of the Council gave a commitment that a rapid review of the feasibility of this proposal would be undertaken and a response provided by the end of March 2019.

ii.   AGREED the additional and recurring £1.500m investment in roads maintenance as outlined in Section 5.5 of the report;
iii.  AGREED the changes to Council Tax as outlined in Section 7 of the report;
iv.  AGREED to set aside £2.500m into a change fund with a view to ensuring that ‘A Sustainable Highland’ was fully resourced and delivered as outlined in Section 14.5 of the report;and
v.   AGREED the medium term target for the non-earmarked general fund reserve of 3% of annual revenue budget as outlined in Section 14.3 of the report. 

4.  Housing Revenue Account Estimates 2019/20                                          
Tuairmsean Chunntasan Teachd-a-steach Taigheadais 2019/20
   
At its meeting on 24 January 2019, the Care, Learning and Housing Committee had agreed to make recommendations to the Council on the Housing Revenue Estimates 2019/20 and on rents for houses, garages and other charges.

In this connection, there had been circulated separately Extract from the Minutes of that Meeting.

The Council:- 

i.    AGREED a 3% increase for council house rents for 2019/2020;
ii.   AGREED that the above percentage increase (3%) be applied to all residential HRA rents and service charges and to Gypsy/Traveller site pitches;
iii.  NOTED that, following consideration by Area Committees/Ward Members, rents for garages and garage sites except in Lochaber would be increased by 3%, with rents for garages and garage sites in Lochaber to be as agreed by Lochaber Members;
iv.   AGREED that non-HRA rents for leased property should increase as stipulated in existing contracts;
v.    AGREED the estimated HRA surplus of £2.5m in 2019/2020 be applied as capital from current revenue to fund HRA capital investment; and
vi.   AGREED that a full review of HRA loan charges and capital planning be carried out during 2019/20 to inform future HRA rents policy and the 2021-2026 HRA Capital Plan.

The Council AGREED the recommendations from the Care, Learning and Housing Committee as detailed.

It was also AGREED that in future consideration of rents for garages and garage sites had to be undertaken by – and formally approved by – Local Committees. 

5.  Clerk of Highland Licensing Board
Clàrc Bòrd Ceadachd na Gàidhealtachd

It was noted that the Licensing (Scotland) Act 2005 required the Council to appoint and employ an Officer to be Clerk of every Licensing Board with jurisdiction within its area. 

In this regard, the Council AGREED that Ms Claire McArthur, Principal Solicitor (Regulatory Services) should be appointed Clerk of Highland Licensing Board with immediate effect.

6.  Timetable of Meetings 
Clàr-ama Choinneamhan

The Council AGREED the following change to the timetable of meetings for 2019–

Sutherland County Committee – to now be held on 25 February 2019 (instead of 26 February 2019) at 2.00pm.

The meeting ended at 2.40pm.