Agendas, reports and minutes

Minutes of Meeting of the Corporate Resources Committee held remotely on Wednesday 3 June 2020 at 10.30 am.

Present:

Mr R Bremner, Mr J Bruce, Mrs C Caddick, Mrs G Campbell-Sinclair, Mrs H Carmichael, Dr I Cockburn, Mrs M Davidson, Mr R Gale, Mr T Heggie, Mr B Lobban, Mr D Louden, Mr G MacKenzie, Mr S Mackie, Mr A Mackinnon, Mr D Macpherson, Mr M Reiss, Mr D Rixson, Mr P Saggers

Non Members also Present:

Mr G Adam, Mr A Baxter, Mrs I Campbell, Mr A Christie, Mr J Finlayson, Mr K Gowans, Mr A MacInnes, Mr J McGillivray, Ms A Maclean, Mr C Munro, Mrs F Robertson, Mrs T Robertson, Mr K Rosie, Ms M Smith, Mr B Thomson

Officials in attendance:

Mrs D Manson, Chief Executive
Ms L Denovan, Executive Chief Officer – Resources and Finance
Mrs K Lackie, Executive Chief Officer – Performance and Governance
Mr E Foster, Head of Finance and Commercialism, Corporate Resources Service
Ms L Johnstone, ICT and Performance Manager, Corporate Resources Service
Mr G Mackay, ICT Project Manager, Corporate Resources Service
Mr I Street, ICT Officer (Communications), Corporate Resources Service
Ms R Clelland, Corporate Communications Manager, Chief Executive’s Office
Ms J Maclennan, Democratic Service Manager, Chief Executive’s Office
Mrs L Dunn, Principal Administrator, Chief Executive’s Office
Ms A Macrae, Committee Administrator, Chief Executive’s Office
Ms C Maragh, Committee Administrator, Chief Executive’s Office
Ms M Zarvella, Clerical Assistant, Chief Executive’s Office

An asterisk in the margin denotes a recommendation to the Council.  All decisions with no marking in the margin are delegated to the Committee.

Mr A Mackinnon in the Chair

Preliminaries

The Chair confirmed that the meeting would be filmed and subsequently archived for public access on the Highland Council website. Thereafter, he read out the terms of the online meeting protocol for Council/Strategic Committee business to be followed at the meeting.

COVID-19

The Chair advised he was aware of the challenging position faced by the Council due to the COVID-19 crisis and how unsettling the current circumstances were for people in the Highlands. He paid tribute to the Chief Executive and her team, staff and Members for their hard work as the Council made every effort to continue to serve the communities in the Highlands. He thanked the Council’s ICT Service for their sterling work as the demand for IT services had increased exponentially over recent weeks. This had highlighted issues with broadband coverage in some locations and therefore it was an appropriate time to lobby Highland MPs and MSPs for improved coverage in the area. He indicated that going forward it was important the Committee and Council worked together to meet the needs of the people in the Highlands.

The Chair continued that he was conscious many people in the Highlands had been affected by the COVID-19 pandemic and he recorded heartfelt sympathy to all those who had suffered bereavements, compounded by the restrictions on attendance at funerals, which had been sorely felt in Highland communities.  

The Chair then, on behalf of all Members, expressed his deepest condolences to the family of Mr George Cruickshank, a fellow councillor and friend, who had recently passed away.

Business

1. Apologies for Absence
Leisgeulan

There were no apologies for absence.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

Item 5: Mr T Heggie, Mrs A Maclean and Mr D Macpherson  (non-financial) and Mr K Gowans (financial).

3. Near Final Corporate Revenue Monitoring Report for 2019/20
Aithisg Sgrùdaidh Iar-Dheireannach Teachd-a-steach Corporra airson 2019/10

There had been circulated Report No RES/09/20 dated 20 May 2020 by the Executive Chief Officer - Finance and Resources.

The Chair advised the near final outturn position reflected the improved financial governance and tight budget controls which had been put in place. He thanked the Chief Executive, Executive Chief Officer – Finance and Resources and the Head of Finance and Commercialism for their sterling work on the budget and the staff for embracing the challenges throughout the year to deliver an improved financial position.  

In discussion, Members raised the following main issues:-

• regular updates be provided on the Council’s financial position and shared as widely as possible with Members given the dynamic nature of the current situation and unpredictable timeline;
• more detailed information be provided on how the underspend on the Care and Learning budget had been achieved, concern being expressed this might have impacted on some services/interventions;
• more detailed information be provided on the HRA and specifically the variance between grant income received and Council house building, and on loan charges;
• representatives from Eden Court and High Life Highland be invited to attend the Budget Recovery Group so both organisations were connected into the ongoing financial resilience work;
• an explanation be provided for the carrying forward of unfilled vacancies at Nairn Academy. The Chair indicated that the Executive Chief Officer - Education and Learning would respond directly to Mr P Saggers on this matter;
• an explanation be provided on the reductions in unitary charges and Non-Domestic Rates appeals for the PPP schools. The Chair confirmed he would respond directly to Ms M Smith on this matter;
• concern at the continued reliance on vacancy management to achieve savings and the need for more detailed discussions at the Budget Recovery Group on staffing levels;
• confirmation was sought and provided that provision had been made for the anticipated Equal Pay Award, the risk to the reserves being if costs proved to be higher than the budgeted figure;
• further information be provided on the Council’s cashflow position and potential impact on reserves during the COVID-19 period. The Head of Finance and Commercialism reported he would have further discussions outwith the meeting with Mr D Louden and Mr R Bremner on this matter; and
• the impact of COVID-19 on the Council’s balances and reserves going forward was currently unknown and if external Government funding was not received and the budget gap could not be bridged then reserves might have to be utilised.

During further discussion, the Executive Chief Officer – Finance and Resources advised that the outcomes set for budgets were being achieved with reduced spend due to the improved governance arrangements which had been put in place.

Thereafter, Members requested more detailed information on the outcomes set and achieved in relation to the Care and Learning budget to provide reassurance to Members, staff, and the public this had been achieved due to good financial management.

The Committee:-

1. NOTED the near final 2019/20 financial position of the General Fund and HRA revenue budgets for 2019/20 and ensuing impact on reserves;
2. NOTED that more detailed information would be provided to the Budget Recovery Group including those issues raised by Members on the underspend on the Care and Learning budget, HRA and loans charges, and staffing levels;
3. AGREED that representatives from High Life Highland and Eden Court be invited to attend a future meeting of the Budget Recovery Group; and
4. AGREED that more detailed information be provided on the outcomes set and achieved in relation to the Care and Learning budget.

4. Near Final Corporate Capital Monitoring Report 2019/20
Aithisg Sgrùdaidh Calpa Corporra 2019/20

Declarations of Interest: Mr T Heggie and Mr D Macpherson as Directors of Highlife Highland, Mrs A Maclean as Chair of Ross-shire Women’s Aid, Board Member of Ross and Cromarty CAB and a member of Sight Action Board declared non-financial interests in this item and Mr K Gowans declared a financial interest in this item on the grounds that a family member was an employee of High Life Highland, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interests did not preclude them from taking part in the discussion.

There had been circulated Report No RES/10/20 dated 17 May 2020 by the Executive Chief Officer - Finance and Resources.

The Chair reported that the Capital Programme was under review due to the current COVID-19 situation and that an update would be provided to the Committee in August 2020.

In discussion, Members raised the following main issues:-

• confirmation was provided that it was intended to bring forward the Capital Programme to Members in August/September 2020;
• an update be provided on progress with the capital spend in respect of Early Years;
• further information be provided on investment in new house builds given the variance between the grant income received and the number of houses being built; and
• it was acknowledged the revenue budget had to be reviewed as a priority, however capital and revenue budgets were inextricably linked and therefore it was important the capital budget was taken forward timeously.

The Committee NOTED the near final 2019/20 financial position of the General Fund and HRA Capital Programmes and that a further report would be submitted to the next meeting which would include updates on Early Years and investment in new house builds as requested.

5. COVID-19 Financial Resilience
Buaidh Ionmhasail COVID-19

There had been circulated Report No RES/011/20 dated 20 May 2020 by the Executive Chief Officer - Finance and Resources.

During discussion, the following main points were raised:-

• early consideration be given to the impact on Council resources and services of the mid and worst-case budget gap scenarios set out in the report;
• in relation to Appendix 1 of the report, it would be helpful if more underpinning detail could be provided as a baseline going forward;
• staff be commended on the number of business grants which had been awarded in Highland during the COVID-19 period;
• the potential for financial information in graph form to be presented on a monthly basis showing expected income/expenditure in a typical year against the actuals during the COVID-19 period to allow early and sound decisions to be made on the budget;
• the suspension and review of all budgets provided the Council with an opportunity to consider a zero-based budgeting approach going forward;
• it was not yet known whether additional funding would be made available from the Scottish Government and the Council would continue to lobby on this matter;
• Members be provided with details of the additional spend incurred and savings generated during the COVID-19 period;
• the need to review all the services the Council provided, statutory and non-statutory, as well as the levels of spend;
• it should be recognised that some non-statutory services were considered to be of the highest priority in some communities;
• the opportunity to consider the role of Eden Court and High Life Highland going forward in relation to health and wellbeing and support for communities, including the most vulnerable;
• Members be cautioned against requesting officers to present financial updates on a frequent basis as these figures would largely be based on assumptions, and currently there were too many unknowns for such figures to be of any benefit;
• whether increasing fees and charges had been ruled out or was under active consideration by the Administration, and it’s view on reimplementing charges such as car parking charges that had ceased due to the COVID-19 emergency given the substantial impact of the crisis on the Highland economy;
• an early meeting of the Budget Recovery Group be arranged and consideration be given to it being accessible to all Members and the public in the interests of transparency;
• the need for the Council to engage effectively with third sector partners and communities during the crisis and build on the current goodwill prior to decisions being made on services and the budget; and
• a report was to be submitted to the Recovery Board around volunteering, community capacity building, empowerment and resilience, on the basis that all these areas were key to recovery

The Chief Executive reported that Scottish Local Authority Chief Executives and Directors of Finance had met on a weekly basis from the start of the COVID-19 emergency. Information had been provided on the additional spend, loss of income and discussions held on the flexibility of funding for the year ahead. A smaller group of Chief Executives, Directors of Finance and COSLA officers had subsequently been formed in which she was involved, working together to benchmark income loss, flexible approaches to funding and additional costs. This information would be pulled together so there was a collective national statement on the impact of COVID-19 on Council budgets.  This information was being shared with Scottish Ministers on a weekly basis and it was hoped could be shared with Members as soon as possible.

At a Council level, and with the support of the Members Gold COVID-19 Group, an early decision had been made to suspend all budgets to allow time for assessment and thereafter Member decision making.  A range of financial, monitoring and governance controls had been introduced and additional staff had been moved onto these tasks given the financial challenges faced.  More detailed financial information would be provided to the full Council meeting on 25 June 2020, and she provided an assurance that Members comments would be taken into consideration going forward and any further areas they might wish to be explored. In conclusion, the Chief Executive thanked Members for their support during the COVID-19 emergency period.

The Chair confirmed he would ensure the Budget Recovery Group was convened at the earliest opportunity and consideration given to the potential for the Group to be accessible by all Members and the public. However, it was important Members recognised the main challenge in relation to the budget was that the situation going forward continued to be unknown and uncertain. He confirmed that all matters in relation to fees and charges were under active consideration and he was fully aware of the important role of the Council in the economic recovery of the Highlands.

Further comments from Members included that:-

• the importance of Councils, COSLA and the UK and Scottish Governments working in partnership going forward particularly in relation  to the need for flexibility in funding through the COVID-19 period;
• the need to revisit with the UK Government the potential to reschedule the Council’s loan payments or provide a loan holiday and to make a strong case for Highland in this regard;
• concern at the impact of COVID-19 on the tourism sector and jobs in Highland. The average wage in Highland was lower than the national average and there were issues of underlying poverty in the area which were of concern going forward; and
• this was an awareness raising report, and a further report would be brought to the full Council on 25 June 2020 on income and expenditure and the position with external Government funding.

The Committee:-

1. NOTED the significant adverse impact COVID-19 was expected to have on the Council’s budget in every likely scenario;
2. acknowledged and NOTED that a further report would be brought to the full Highland Council meeting on the 25 June 2020 outlining the Council’s potential response to dealing with this financial impact; and
3. AGREED to make representations to Government that the Council might require significant further financial support or other intervention from Government in order to manage its budget in financial year 2020/21.

6. Early Learnign and Childcare ELC) Key worker Childcare Provision - Costs and Risks
Solar Cùram-chloinne Prìomh Obraiche Tràth-ionnsachaidh agus Cùraim-chloinne – Cosgaisean agus Cunnartan

There had been circulated Report No RES/12/20 dated 27 May 2020 by the Executive Chief Officer – Performance and Governance.

During discussion, the following main points were raised:-

• concern there was no stop date for this non-statutory function given the significant impact on the Council’s budget if the Scottish Government did not allocate additional funding for this provision;
• the Council was being directed by the Scottish Government to provide this service and would continue to lobby for funding and/or adjustments to the current arrangements;
• there was a moral, political and reputational imperative on the Council to provide this support until at least the end of the summer holidays, and those volunteering to provide child care to free up key workers to deal with the pandemic be commended on their courage;
• concern at any prospect of ring fencing being removed from the Education budget to fund this provision;
• consideration be given to increasing provision and alternative ways of funding childcare as there would be a need for more child care once schools reopened;
• it was essential the Council supported private child care providers to allow them to continue in business particularly as they would be required to deliver 1140hours going forward;
• if the provision of this essential service resulted in a deferral of 1140hours then the Scottish Government would have to take this on board at a future date;
• the potential for the Council to review the onerous requirements on child care providers to evidence loss of income as a result of the pandemic; and
• it was not business as usual at the current time and there had to be a cognisance particularly within Education of the difficulties and challenges being faced. The focus should be on meeting immediate priorities before supporting what might be required in the future.     

The Committee:-

1. NOTED the significant estimated costs, in the region of £38,000 per week, associated with the use of private, voluntary and independent (PVI) partners in the provision of key worker childcare for children aged 0-5yrs;
2. NOTED the risks associated with not providing providers with payment;
3. NOTED that, following agreement at the Gold Member COVID-19 meeting on 21 April 2020, payments had been made to providers for the places provided to date, at a value of c£185,000;
4. AGREED that, in the absence of any funding coming forward from the Government, to fund providers for places commissioned and potentially up to break-even rate until the end of the summer holidays; the total minimum predicted cost being £799,235;
5. NOTED the Scottish Government requirement to continue to provide childcare for key workers over the school holiday period and beyond; and
6. AGREED the Council continue to lobby for funding and/or adjustments to the current arrangements to reduce the financial liability to the Council.

7. COVID Staff Health, Wellbeing and Safety Impact
Buaidh COVID air Slàinte, Sunnd agus Sàbhailteachd Luchd-obrach

The Chair reported that in consultation with the Convener this item had been withdrawn and would be presented to the full Council on 25 June 2020.

The Committee NOTED this item had been withdrawn.

8. Budget Recovery Group
Buidheann Ath-shlànachadh Buidseit

The Committee:-

1. AGREED the establishment of a Budget Recovery Group which would consider the budget related impact of COVID-19 and associated recovery requirements.  The composition of the Group would comprise 11 members and would be established on the basis of political balance; and
2. NOTED that an early meeting of the Group was to be arranged and consideration given to the potential for the Group to be accessible by all Members and the public.

The meeting ended at 12.25pm.