Agendas, reports and minutes

Minutes of Special Meeting of the Highland Council held REMOTELY on Thursday, 25 June 2020 at 10.30am.

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

Present:    
Mr G Adam, Mr B Allan, Mr R Balfour, Mrs J Barclay, Mr A Baxter, Mr B Boyd, Mr R Bremner, Mr J Bruce, Mrs C Caddick, Mrs I Campbell, Miss J Campbell, Mrs G Campbell-Sinclair, Mrs H Carmichael, Mr A Christie, Mr I Cockburn, Mrs M Cockburn, Ms K Currie, Mrs M Davidson, Mr J Finlayson, Mr M Finlayson, Mr C Fraser, Mr L Fraser, Mr R Gale, Mr J Gordon, Mr K Gowans, Mr A Graham, Mr J Gray, Mrs P Hadley, Mr T Heggie, Mr A Henderson, Mr A Jarvie, Ms E Knox, Mr B Lobban, Mr D Louden, Mrs L MacDonald, Mr A MacInnes, Mrs D Mackay, Mr D Mackay, Mr W MacKay, Mr G MacKenzie, Mrs I MacKenzie, Mr S Mackie, Mr A Mackinnon, Ms A MacLean, Mr C MacLeod, Mr D MacLeod, Mr D Macpherson, Mr R MacWilliam, Mrs B McAllister, Mr J McGillivray, Mr N McLean, Mr H Morrison, Mr C Munro, Ms L Munro, Ms P Munro, Mrs M Paterson, Mr M Reiss, Mr D Rixson, Mrs F Robertson, Mrs T Robertson, Ms E Roddick, 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
Executive Chief Officer, Communities & Place
Executive Chief Officer, Education & Learning
Executive Chief Officer, Health & Social Care
Executive Chief Officer, Infrastructure & Environment
Executive Chief Officer, Performance & Governance
Executive Chief Officer, Property & Housing
Executive Chief Officer, Resources & Finance
Executive Chief Officer, Transformation 

Mr B Lobban in the Chair

Apologies for absence were intimated on behalf of Mr I Brown, Mr I Ramon, Mr A Rhind and Mrs C Wilson. 

2. Declarations of Interest
Foillseachaidhean Com-pàirt

The Council NOTED the following declarations of interest:-

Item 4 – Mr D Macpherson (Non-Financial)
Item 5 – Mr T Heggie, Ms L Munro, Mr A Jarvie and Mr D Macpherson (all Non-Financial)
Item 5 – Mr K Gowans (Financial)
Item 6 – Mr T Heggie, Mr A Christie, Ms E Knox, Ms L Munro, Mr A Jarvie, Mr D Louden, Mr D Macpherson and Mrs M Paterson (all Non-Financial)
Item 6 – Mr K Gowans (Financial)   

Prior to the commencement of the formal business, the Convener, along with Members of the Council, paid warm tribute to the late Councillor George Cruickshank, specifically in relation to his extremely knowledgeable approach to Council business and his welcoming and inclusive collaboration with his Ward colleagues and other Council Members.    

3. Membership of the Council/Committees, etc     
Ballrachd na Comhairle

It was NOTED that, following the By-Election held on 12 March 2020, Mr Calum Munro had been elected as a Member of Ward 10 (Eilean a' Cheò).

The membership of the Council was therefore now as follows:-

Ind – 27/SNP- 21/Cons – 10/Lib Dem – 9/Labour – 3/Green –1/Sutherland Independent – 1/Non-Aligned – 1/Vacant - 1

The formula in respect of the number of places on Strategic Committees remained as 7/5/3/3. 

Economy & Infrastructure Committee 

It was AGREED that Mr C Munro should replace Mr J Gordon.

Redesign Board 

It was AGREED that Mrs M Cockburn should replace Dr I Cockburn.

The Council AGREED the Minutes of Meeting of the Redesign Board held on Wednesday, 10 June 2020 as circulated.

Recovery Board (Membership) 

The Council AGREED membership as follows - Mr A Christie (Chair), Mr B Lobban, Mrs M Davidson, Mr A MacKinnon, Mr J Gray, Dr I Cockburn, Mr K Gowans, Mrs G Campbell-Sinclair, Mrs C Caddick, Mr A Jarvie and Mr P Saggers.

Non-Voting Staff Members – Mrs D Manson, Mr M MacLeod and Mr A Gunn. Non-Voting Union Representative – Mr J Gibson (UNISON).  

4. Decisions Made Using Delegated Powers                                           

Declaration of Interest – Mr D Macpherson declared a non-financial interest in this item as a Director 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 his interest did not preclude him from taking part in the discussion.

There had been circulated Report No. HC/11/20 Dated 15 June 2020 by the Executive Chief Officer, Performance and Governance. 

During discussion, Members raised the following issues: - 

• clarification was sought and provided on how/when powers under the Civil Contingency Act had been invoked;   
• it was felt that there had been a change of message to communities in terms of action which could be taken during the early part of the lockdown and this had caused some confusion in specific areas; 
• there was a need for further detail to be provided for Members in relation to the appointment of the post of Executive Chief Officer (Education); 
• there was a perception amongst some Members that from the start of the lockdown period they had not been kept fully informed of action being taken;
• there was a need for a Member led review of both the Scheme of Delegation and the Emergency Plan (2013);
• it was hoped that, if a similar lockdown situation was repeated in future, all Members of the Council would be included in decisions taken at that time;
• clarification was sought and provided on the current position in relation to Non Domestic Rates billing procedures;
• there was a need for an update to be provided on the use of glyphosate during recent months;
• it was noted that a further report on the Longman Site would be provided for the July meeting of the Council;
• any future discussion on emergency measures to be taken during a lockdown period had to be cross-party in order to involve as many Members of the Council as possible;
• it had to be acknowledged that this had been an unprecedented set of circumstances and as such all emergency actions had had to be implemented quickly and efficiently. It had never been the intention to exclude any Member of the Council from this process but it was always the case that communication could be improved and lessons had been learned which would be carried forward;•there was a need to focus on the positive aspects of the report and in this regard the thanks of the Council were conveyed to all staff for the exceptional work which had been and continued to be undertaken, including the use of new technology for the holding of meetings;
• there was a need for lessons learned to be discussed and reviewed by all Members of the Council in order to improve procedures for the future if this was necessary;
• it was noted that an external review of actions taken during the lockdown period was currently being undertaken and would be reported to the Audit & Scrutiny Committee in due course; and
• the thanks of the Council should be conveyed to communities across the Highlands for the outstanding actions which had been undertaken during the lockdown period.        

Decision

Members:-

(i)    HOMOLOGATED the decisions as set out in Appendix 1;
(ii)    NOTED the progress that had been made in resuming the Council’s governance structures; and
(iii)    APPROVED the resumption of Council approved policies and services to pre-Covid arrangements in line with Government guidelines and Public Health advice.

It was also AGREED that a Member led review of the Scheme of Delegation and the Emergency Plan (2013) should be undertaken. 

5.    Recovery Action Plan

Declarations of Interest 

Mr T Heggie, Ms L Munro, Mr A Jarvie and Mr D Macpherson declared non-financial interests in this item as Directors 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.

Mr K Gowans declared a financial interest on the basis of a family member being employed by High Life Highland but confirmed that, having applied the test, he would remain in the meeting.

There had been circulated Report No. HC/12/20 dated 15 June 2020 by the Executive Chief Officer, Transformation. 

In this regard, there had been circulated Minutes of Meeting of the Recovery Board held on Thursday, 4 June 2020 which were APPROVED.

During discussion, Members raised the following issues: -

• thanks should be conveyed to all concerned for this complicated and unique work which was having to be undertaken with pace and urgency and in partnership with other organisations as and when necessary;
• on the basis that this represented a completely new way of working which could be determined by a number of factors, the development of a Risk Register would be essential;
• it would be important to take account of any implications arising from the Brexit process at the end of the year;
• further and more detailed information would be required in terms of the specific budget headings to be managed by each individual Executive Chief Officer in the Council;
• the references to procurement within the report were welcomed and it was stressed that it would be imperative for best practice to be identified, along with benchmarking, and for shovel ready projects to be available when needed;
• this was a dynamic piece of work and as such it was hoped that all Members of the Council would be involved;
• in relation to governance measures, it would be important to ensure that any future actions did not impact on the charitable status of organisations, such as High Life Highland, in future;
• highlighting the importance of the third sector was vital and this included an acknowledgement of the services which they currently provided with very limited resources;
• also, in relation to the third sector, there was concern that there had been a marked increase in demand for services but no related increase in funding to accommodate such requests and this came at a time when significant levels of income had already been lost as a result of the pandemic;
• in light of the above, there was a need for a further report on the role of the third sector, including proposals for how organisations could be supported in future;
• it was suggested that staff across the Council should also be asked for their views on how efficiencies could be achieved in future;    it was vital that the Council listened to communities and supported them as they moved forward from this point and that this should include updating the Council Programme as and where necessary, including in respect of climate change;
• it had to be accepted that there would be future job losses in the Highlands and as such there would need to be a focus within the Recovery Board work on retaining employment and supporting both families and businesses wherever possible, including the identification of re-training opportunities;
• as part of any future work, there had to be strong focus on health and wellbeing;
• as part of the Financial Recovery Strategy, it was suggested that there was an urgent need to bring forward work on benchmarking if possible;
• there was also a need to review the use of UK and Scottish Government Schemes, such as the Furlough Scheme, and assess what was being offered to Local Authorities;
• there was a need for a stronger emphasis on and support for Teachers and Teaching Staff (including PSAs) and a recognition of the remarkable contribution which had been made by them in recent weeks and months;
• it would be helpful if the Minutes of the Scottish Cities Alliance meeting (which had been referenced in the report) could be circulated to all Members;
• in respect of the current financial position, there was a need for further information on why Highland Council had not furloughed staff as it was understood that this had been done in other Local Authorities;
• there was a need to take account of the stress on employees, including Teachers, at the time of returning to normal duties/work practices and provide support as and when necessary;
• it would be imperative that the Council provided a focus on income maximisation in future, along with accessing any available funding streams;
• the issues facing the tourism sector had to be highlighted and it was felt that the key words in future would be ‘economic retention’;
• it would be helpful if the Audit & Scrutiny Committee could take forward work on benchmarking as a priority;
• it was noted that a report on the Capital Programme would be discussed initially by the Budget Recovery Group and then submitted to the full Council for consideration; and
• information should be circulated to all Members of the Council on previous discussions undertaken at Members GOLD Covid meetings in relation to the Furlough Scheme.

Decision

The Council:-

(i)     APPROVED the Terms of Reference for the Highland Council’s Recovery Board;
(ii)    APPROVED the Highland Council Recovery Action Plan;
(iii)   NOTED the programme approach to recovery;
(iv)   NOTED the work undertaken to align the Recovery Action Plan, the existing Change Programme, Transitions Programme, Service-specific Reviews and Savings Programmes and Projects;
(v)    NOTED roles and responsibilities; and
(vi)   NOTED the composition of the Transformation team.

It was also AGREED that information should be circulated to all Members on previous discussions undertaken at Members GOLD Covid meetings in relation to the Furlough Scheme.

6. Annual Accounts 2019/20 and Revenue Budget 2020/21                  

Declarations of Interest  

Mr T Heggie, Ms L Munro, Mr A Jarvie and Mr D Macpherson declared non-financial interests in this item (v) as Directors 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.

Mr A Christie (Non-Executive Director of NHS Highland), Ms E Knox (Trustee of Children in the Highlands Information Point), Mr D Louden (Director of Home Start, East Highland) and Mrs M Paterson (Board Member of the Highland Football Trust and Board Member of the Puffin Pool) all declared non-financial interests but, having applied the test, confirmed that they would remain in the meeting.

Mr K Gowans declared a financial interest on the basis that a family member was employed by High Life Highland but, having applied the test, confirmed that he would remain in the meeting.   

There had been circulated Report No. HC/13/20 dated 15 June 2020 by the Executive Chief Officer.

Prior to discussion of this item, the Convener, seconded by Mr A MacKinnon, MOVED the suspension of Standing Order 35 in order to be able to consider Recommendations (v) and (vi) within the report on the basis that they had been the subject of a decision by the Council within the previous six month period.

As an AMENDMENT, Ms M Smith, seconded by Dr I Cockburn, moved that there should be no suspension of Standing Order 35 and therefore no discussion of these recommendations at the meeting.

On a vote being taken, the MOTION received 33 votes and the AMENDMENT received 28 votes.  

However, the Motion failed to receive the necessary 2/3 of the votes cast and Suspension of Standing Order 35 was therefore not carried - the votes having been cast as follows:-

For the Motion

Mr G Adam, Mrs J Barclay, Mr J Bruce, Mrs C Caddick, Mrs I Campbell, Miss J Campbell, Mrs H Carmichael, Mr A Christie, Mrs M Davidson, Mr J Finlayson, Mr M Finlayson, Mr L Fraser, Mr R Gale, Mr J Gordon, Mr A Graham, Mr J Gray, Mr T Heggie, Mr A Henderson, Mr B Lobban, Mr A MacKinnon, Mrs A MacLean, Mr D Macpherson, Mr H Morrison, Mr C Munro, Ms L Munro, Mrs M Paterson, Mr M Reiss, Mr D Rixson, Mrs F Robertson, Mrs T Robertson, Mr G Ross, Ms N Sinclair and Mr B Thompson.  

For the Amendment

Mr B Allan, Mr A Baxter, Mr B Boyd, Mr R Bremner, Mrs G Campbell-Sinclair, Dr I Cockburn, Mrs M Cockburn, Ms K Currie, Mr C Fraser, Mr K Gowans, Ms P Hadley, Mr A Jarvie, Ms E Knox, Mr D Louden, Mrs L MacDonald, Mr G MacKenzie, Mr S Mackie, Mr C MacLeod, Mr D MacLeod, Mr R MacWilliam, Mr N McLean, Mrs P Munro, Ms E Roddick, Mr K Rosie, Mr P Saggers, Mr A Sinclair, Mr C Smith and Ms M Smith.   

During a summary of the report, the Chair of the Corporate Resources Committee/Budget Leader emphasised that there could have been no prediction of the unprecedented events which had occurred since March as a result of Covid-19 and as such the Council, local communities, business sectors and individuals across the Highlands had had to face extreme circumstances. In this regard, thanks were conveyed to Members, Officers and communities in all areas for the outstanding effort which continued to be made in dealing with the pandemic.

In relation to the financial performance for 2019/20, thanks were highlighted to the Chief Executive and her staff, along with all Members, for the work which had been undertaken and which had resulted in the reporting of a very positive financial position for the period, including the delivery of £20m of savings and an overall underspend of £7.6m which had enabled reserves to be replenished. However, this had now been overshadowed by the financial impact of Covid-19, along with the impact on the whole economy which would be severe and cause major uncertainty in the months ahead. In addition, income streams would be slow to recover and this would be further overshadowed by the potential for future outbreaks of Covid-19 during the Winter period and possible implications arising from the Brexit process.

Alongside the expected increased demand for services, it was also considered that key partners would be seeking financial support and as such only assumptions could be made at present in terms of the future budget position, along with an assessment of the likely scenarios in the medium and long term. It would be imperative to ensure that expenditure was matched to income if a balanced budget was to be delivered in the current year and whilst the additional funding from the Scottish Government was warmly welcomed, there would still be a need to continue to lobby for more funding in the weeks and months ahead. It was therefore extremely important that the message was conveyed that the Council could only commit to essential expenditure at present and on that basis the recommendations within the report - with the exception of recommendations (v) and (vi) – would be moved at the appropriate time.                    

During discussion, Members raised the following issues:-

• Members were being asked to agree – in recommendation (ii) – ‘the assumptions used and budget gap figures’ but the recent announcement by the Scottish Government in relation to the re-opening of schools had now altered the position. It was therefore suggested that this particular wording should be removed and replaced with ‘ note the potential mitigating actions for 20/21 and bring forward further details on budget gap figures to the next full Council meeting;  
• there was concern that some Members had only learned of the potential budget deficit figure for the Council through media reports and this was very disappointing; 
• there was also a need for more detail and clarity in terms of the budget deficit figure;
• whilst accepting that there was now a need to review the financial strategy, it was not accepted that this should be undertaken alongside a re-opening of the budget which had been previously agreed in March;  
• there was disagreement with the recommendation to cease all Covid-19 response services at the end of July and also the recommendation that all DSM balances held at the end of 2019/20 should be used to mitigate the financial gap and amendments to those recommendations would be put forward at the appropriate time;
• whilst the recommendation for a budget update to be presented to every full Council meeting in the current financial year was welcomed, there was a need for clarity on whether this would be a budget against reports together with a variance analysis and also whether there would be a comparison made between May 2019 and May 2020;
• there was also a need for a more detailed report to be presented in relation to the projected deficit figure as the current information which had been provided did not indicate a sustainable position for the Council;
• with specific reference to the loss of income streams, further information was required as to why the Council had not utilised the Furlough Scheme in mitigation;
• there was a perception among some Members that it had been very difficult to obtain detailed information during the past three month period and it was hoped that this would be improved if the Council faced a similar situation again in the coming months;
• in terms of the recommendation to cease all Covid-19 response services at the end of July, it was suggested that more detail was required in relation to what was currently being provided and also that this particular recommendation should perhaps be reviewed in the first instance as the survival and wellbeing of communities across the Highlands had to be paramount in the weeks and months ahead;
• there had been statements in the media in relation to the potential need to reduce staff numbers across the Council and this was regretted as there had not been any detailed discussion with all Members on this issue and it could have a detrimental effect on staff morale at a time of major concern generally;
• the press coverage of the budget deficit figure had been alarming as there had been no update for Members beforehand and it was suggested that the first course of action had to be discussion with the UK and Scottish Governments as a priority followed by consideration through the Recovery Board and it was hoped that this would be the approach followed in the future;
• in relation to the unaudited Annual Accounts, it was suggested that there should be a full review of the Inverness Common Good Fund with a full report to be considered by the Trustees and an amendment to the recommendation in the report in this regard would be put forward if necessary;
• in regard to the Inverness City Region Deal, there was a need to work with the UK and Scottish Governments to undertake a review to identify which projects were fully committed and whether there were opportunities to realign due to new economic priorities;
• consideration should be given to establishing the Crown Estate Fund as a ‘pivot fund’ for tourism businesses in coastal communities to help them to meet future demands;
• there was a need to have more detail on the budget deficit figure which had been quoted, specifically in relation to monies received from the Scottish Government for Covid-19 response services and expenditure;
• every effort was being made to save jobs in light of the importance to the Highland economy;
• regular briefings had been arranged for all Members of the Council during the past three months and Officers were always available to respond to queries on any service at any time;
• detailed clarification was needed in respect of the future of the Covid-19 Helpline in particular as there had been varying reports in this respect;
• it would be helpful if further information could be provided on discussions undertaken by the Members GOLD Covid Group in relation to the budget deficit figure which had been quoted in the media;
• it had to be highlighted that the £96m budget deficit figure had been based on a worst case scenario whereby there was a need for a very long lockdown; and
• it had to be accepted that the Council required to be both agile and flexible when dealing with the current budgetary situation as the situation had completely changed since the start of the year. Most importantly, there were some very difficult decisions which would have to be made at future meetings in order to save as many jobs as possible.

Thereafter, and in respect of Recommendation (i), Mr A MacKinnon, seconded by Mr M Reiss, MOVED the recommendation as detailed in the report.

As an AMENDMENT, Mr A Baxter, seconded by Mr A Jarvie, moved that the following wording should be added to this recommendation – ‘and undertake a full review of the Inverness Common Good Fund with a full report to be considered by the Trustees’.

On a vote being taken, the MOTION received 34 votes and the AMENDMENT received 32 votes and the MOTION was therefore CARRIED, the votes having been cast as follows:-

For the Motion:

Mr R Balfour, Mrs J Barclay, Mrs C Caddick, Mrs I Campbell, Miss J Campbell, Mrs H Carmichael, Mr A Christie, Mrs M Davidson, Mr J Finlayson, Mr M Finlayson, Mr L Fraser, Mr R Gale, Mr J Gordon, Mr A Graham, Mr J Gray, Mr T Heggie, Mr A Henderson, Mr B Lobban, Mrs D MacKay, Mr W MacKay, Mr A Mackinnon, Mr D Macpherson, Mrs B McAllister, Mr H Morrison, Mr C Munro, Ms L Munro, Mrs M Paterson, Mr M Reiss, Mr D Rixson, Mrs F Robertson, Mrs T Robertson, Mr G Ross, Ms N Sinclair and Mr B Thompson. 

For the Amendment:

Mr G Adam, Mr B Allan, Mr A Baxter, Mr B Boyd, Mr R Bremner, Mr J Bruce, Dr I Cockburn, Mrs M Cockburn, Ms K Currie, Mr C Fraser, Mr K Gowans, Ms P Hadley, Mr A Jarvie, Ms E Knox, Mr D Louden, Mrs L MacDonald, Mr A MacInnes, Mr D MacKay, Mrs I MacKenzie, Mr S Mackie, Mr C MacLeod, Mr D MacLeod, Mr R MacWilliam, Mr J McGillivray, Mr N McLean, Mrs P Munro, Ms E Roddick, Mr K Rosie, Mr P Saggers, Mr A Sinclair, Mr C Smith and Ms M Smith.    

In respect of Recommendation (ii), Mr A MacKinnon, seconded by Mr M Reiss, MOVED the recommendation as detailed in the report.

As an AMENDMENT, Mr A Jarvie, seconded by Mr G MacKenzie, moved that the following wording – ‘assumptions used and budget gap figures’ – should be removed and replaced with the following – ‘note the potential mitigating actions for 20/21 and bring forward further details on budget gap figures to the next full Council meeting’.

On a vote being taken, the MOTION received 33 votes and the AMENDMENT received 30 votes and the MOTION was therefore CARRIED, the votes having been cast as follows:-

For the Motion:

Mr G Adam, Mrs J Barclay, Mrs C Caddick, Mrs I Campbell, Miss J Campbell, Mrs H Carmichael, Mr A Christie, Mrs M Davidson, Mr J Finlayson, Mr M Finlayson, Mr L Fraser, Mr R Gale, Mr J Gordon, Mr A Graham, Mr J Gray, Mr T Heggie, Mr A Henderson, Mr B Lobban, Mrs D MacKay, Mr W MacKay, Mr A MacKinnon, Mr D Macpherson, Mr H Morrison, Mr C Munro, Ms L Munro, Mrs M Paterson, Mr M Reiss, Mr D Rixson, Mrs F Robertson, Mrs T Robertson, Mr G Ross, Ms N Sinclair and Mr B Thompson.    

For the Amendment:

Mr B Allan, Mr A Baxter, Mr B Boyd, Mr R Bremner, Mr J Bruce, Dr I Cockburn, Mrs M Cockburn, Ms K Currie, Mr C Fraser, Mr K Gowans, Ms P Hadley, Mr A Jarvie, Ms E Knox, Mr D Louden, Mrs L MacDonald, Mr A MacInnes, Mr D MacKay, Mr S Mackie, Mr C MacLeod, Mr D MacLeod, Mr R MacWilliam, Mr J McGillivray, Mr N McLean, Mrs P Munro, Ms E Roddick, Mr K Rosie, Mr P Saggers, Mr A Sinclair, Mr C Smith and Ms M Smith.     

In respect of Recommendation (vii), it was AGREED to change the wording within this recommendation as follows – replace ‘agree to cease’ all additional Covid response services with ‘agree to review’ all additional Covid response services.

In respect of Recommendation (viii), it was AGREED to include additional wording within this recommendation as follows – ‘agree to work with the UK and Scottish Governments to review the Inverness City Region Deal to identify which projects were fully committed and whether there were opportunities to realign due to new economic priorities.

In respect of Recommendation (ix), Mr A MacKinnon, seconded by Mr M Reiss, MOVED the recommendation as detailed in the report.

As an AMENDMENT, Mr A Jarvie, seconded by Mr G MacKenzie, moved that this recommendation should be removed.

On a vote being taken, the MOTION received 35 votes and the AMENDMENT received 31 votes 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, Mrs C Caddick, Mrs I Campbell, Miss J Campbell, Mrs H Carmichael, Mr A Christie, Mrs M Davidson, Mr J Finlayson, Mr M Finlayson, Mr L Fraser, Mr R Gale, Mr J Gordon, Mr A Graham, Mr J Gray, Mr T Heggie, Mr A Henderson, Mr B Lobban, Mrs D MacKay, Mr W MacKay, Mr A MacKinnon, Mr D Macpherson, Mr J McGillivray, Mr H Morrison, Mr C Munro, Ms L Munro, Mrs M Paterson, Mr M Reiss, Mr D Rixson, Mrs F Robertson, Mrs T Robertson, Mr G Ross, Ms N Sinclair and Mr B Thompson.   

For the Amendment:

Mr B Allan, Mr A Baxter, Mr B Boyd, Mr R Bremner, Mr J Bruce, Dr I Cockburn, Mrs M Cockburn, Ms K Currie, Mr C Fraser, Mr K Gowans, Ms P Hadley, Mr A Jarvie, Ms E Knox, Mr D Louden, Mrs L MacDonald, Mr A MacInnes, Mr D MacKay, Mr G MacKenzie, Mrs I MacKenzie, Mr S Mackie, Mr C MacLeod, Mr D MacLeod, Mr R MacWilliam, Mr N McLean, Mrs P Munro, Ms E Roddick, Mr K Rosie, Mr P Saggers, Mr A Sinclair, Mr C Smith and Ms M Smith. 
  
Decision

The Council:-

(i)     RECEIVED the unaudited Annual Accounts for the Highland Council, Highland Charities Trust, Highland Charitable Trust and the Highland Council Pension Fund for the year ended 31st March 2020 and NOTED that these would be presented to the Appointed Auditor by the prescribed date of 30th June 2020; 
(ii)    NOTED the assumptions used, the budget gap figures, and the potential mitigating actions for 2020/21; 
(iii)   AGREED, in light of (ii) above, that the budget set in March 2020 needed to be reviewed, with recommendations coming forward in June, July and September 2020; 
(iv)   NOTED the use of stringent budget controls, adopting a prudent approach to spend whilst recognising the need to deliver essential services and agreed the continuation of these controls until a clear plan for addressing the budget gap was identified;
(v)    DEFERRED CONSIDERATION of this recommendation - that the full value of planned investment fund for rural transport be repurposed in the financial year 2020/21 to help reduce the sizeable budget deficit facing the Council;
(vi)   DEFERRED CONSIDERATION of this recommendation – that, in light of the current crisis, the approved rebuilding of balances by £4.909m should not take place with that money instead used to mitigate the 2020/21 budget gap;
(vii)  AGREED to REVIEW all additional Covid response services, unless directly funded by Government, at the end of July;
(viii) AGREED to lobby UK and Scottish Governments as appropriate for: 

• additional funding; 
• flexibility in the use of funding to help address the budget gap; 
• a relaxation of the restrictions around the income from second homes Council Tax with flexibility in 2020/21 to use this income to help reduce the pressure on the general revenue budget; 
• to apply a holiday to interest payments for all PWLB loans; and
• agreed to work with the UK and Scottish Governments to review the Inverness City Region Deal to identify which projects were fully committed and whether there were opportunities to realign due to the new economic priorities. 

(ix)   AGREED that the DSM balances held at the end of 2019/20 be used to mitigate the financial gap.
(x)    AGREED to request that the Scottish Government give early notification on funding levels for 2021/22 and beyond to allow future years’ financial planning;
(xi)   APPROVED the award of contracts for the capital projects as outlined in Appendices 5 and 6; and
(xii)  AGREED that a budget update be presented to every Council meeting in the financial year 2020/2021

7. Timetable of Meetings (Revised)

There had been circulated Revised Timetable of Meetings for the remainder of 2020.

In this regard, there had also been circulated further Updated Timetable which took account of additional meetings which had been added since the agenda/reports for this meeting had been issued.

Decision

The Council APPROVED the Updated Timetable as circulated.   

The meeting ended at 4.45pm.