Agendas, reports and minutes

Minutes of Meeting of the Corporate Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Thursday 20 August 2020 at 1.00pm.

Present:
Mr R Bremner, Mr J Bruce, Mrs H Carmichael, Mrs G Campbell-Sinclair, Mr A Christie (substitute), 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, and Mr P Saggers.

Non-Members also Present:
Mrs J Barclay, Mr C Munro, Mr A Baxter, Mrs P Munro, Mr J Finlayson, Mrs L Munro, Mr K Gowans, Mrs M Paterson, Mr A Henderson, Mrs T Robertson, Mr A Jarvie, Mr K Rosie, Ms E Knox, Mr B Thomson, and Mr J McGillivray.

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 A Gunn, Executive Chief Officer, Transformation
Mr E Foster, Head of Finance and Commercialism, Resources and Finance
Mrs S McKandie, Head of Revenues and Customer Services, Resources and Finance
Mr B Porter, Head of Support Services, Education and Learning
Mrs L Dunn, Principal Administrator, Performance and Governance
Ms A Macrae, Committee Administrator, Performance and Governance
Ms M Zavarella, Clerical Assistant, Performance and Governance

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

Business

Preliminaries

Prior to the commencement of the formal business, the Chair thanked Members for their understanding in relation to the cancellation of the scheduled meeting of the Committee, due to the IT issues experienced as a result of storms. He expressed relief that there had been no damage in the area.
The Chair then advised that the thoughts of the Committee were with the families of those who had lost their lives as a result of the train derailment in Stonehaven.

1. Apologies for Absence
Leisgeulan

An apology for absence was intimated on behalf of Mrs C Caddick.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

Item 4 – Mr B Thompson, Mr A Jarvie and Mr T Heggie (non-financial)
Item 8 – Mr P Saggers and Mr A Christie (non-financial)

3. Corporate Resources Budget Sub-Committee
Buidheann Ath-shlànachaidh Buidseit

There had been circulated Report No RES/14/20 dated 30 July 2020 by the Executive Chief Officer Resources and Finance.

In discussion, concern was expressed at the proposal that meetings of the Sub-Committee would be held in private. It was appreciated that certain items required to be held in private but in the interests of the wider community it was felt that meetings should be held in public unless there were good reasons to agree otherwise. Therefore, an amendment was proposed to recommendation 4 set out in the report, removing the words ‘to be held in private’. The Chair advised that meetings of the Sub-Committee were open to all Members of the Council. He was not in favour of any amendments to the recommendations as proposed and that if that was the case, he would ask that this item be recalled and reported back to the next Council meeting.

During further discussion, the following main points were raised:-

• concern that it was the duty of the Corporate Resources Committee to oversee budget, monitoring and outturn activities across the Council’s revenue and capital budgets and in essence the report recommended this be removed from this Committee;
• it was unclear how the Sub-Committee would report to the Corporate Resources Committee and whether Members would have the opportunity to scrutinise the minutes of the Sub-Committee;
• why consideration of future Area Committee budgets could not be done in the open forum of the Corporate Resources Committee;
• concern at the list of those items set out in the report which it was stated should be considered in private; 188
• there was already a mechanism in place through the Local Government (Scotland) 1973 by which Members were asked on agendas of meetings to decide whether it was appropriate for the reports printed on pink papers to be considered in private. This provided Members the opportunity to challenge and vote accordingly.

The Chair advised that in his opinion and in his dealings as Chair and Budget leader he had been open, honest and transparent. However, in view of the debate he was recalling this item and advised that it would be referred to the Council for consideration.

FINANCIAL MONITORING
SGRÙDADH IONMHASAIL

4. Corporate Revenue Monitoring Report to 30 June 2020
Aithisg Sgrùdaidh Teachd-a-steach Corporra gu 30 Ògmhios 2020

Declarations of Interest: Mr B Thompson, Mr A Jarvie and Mr T Heggie declared a non-financial interest in this item as Directors of High Life Highland but, in terms of the dispensation granted by the Standards Commission, remained to participate in the discussion.

There had been circulated Report No RES/15/20 dated 4 August 2020 by the Executive Chief Officer Resources and Finance.

The Chair thanked the Executive Chief Officer Resources and Finance and the Head of Finance and Commercialism and their teams for their work over the past few months in relation to the Council’s finances. There was a significant degree of uncertainty in relation to the figures set out in the report and because of that officers had provided some different scenarios. The central case was for a budget gap of £28.259m, and it was acknowledged this position could improve as it was hoped additional funding would be received from Scottish Government. These additional funds could significantly reduce the gap, depending on the detail and if they were as substantial as hoped. However, the risk that the position could get worse had to be acknowledged, and a second lockdown had been modelled on that basis. In summary, the gap in the central scenario were reducing from the figures previously reported to the Council and the Committee, however it was important to be mindful as to how significant the risks were going forward. The overall improvement in the position reported to the Council on 30 July 2020, reflected the holistic look across all individual budgets across the Council and impact of management control on these budgets. The figures would continue to be revised based on the Council’s spend and income trend data together with any external factors that impact such as funding announcements.
The Head of Finance and Commercialism indicated that the level of reserves should relate to the level of risk faced by the organisation. The Council was currently facing an unprecedented level of risk and therefore he urged caution given that while the reserves had increased, there was a need to consider this in the context of the level of risk which was articulated in the report.

During discussion, the following main points were raised:-

• it was testament to the sound financial governance which had been put in place that the reserves had increased to the budgeted level, however the continuing risks and uncertainty of the situation going forward had to be emphasised; 189
• there was a need for more detailed figures to be provided to the Corporate Resources Sub-Committee to allow Members to drill down and consider the opportunities for further savings;
• the realignment of budgets to be progressed to reflect each Executive Chief Officer’s area of responsibility;
• the Council would continue to lobby the Scottish and UK Governments in relation to additional funding and the Budget Leader had emailed Ms K Forbes, Cabinet Secretary for Finance, seeking clarification on the income recompense scheme;
• concern at the scale of uncertainty in relation to the income recompense scheme at this stage of the financial year in terms of the Council’s financial planning, and the need for all Members to lobby on this issue;
• it was anticipated that the Council would receive some level of recompense in relation to the shortfall to Council Tax and further information was sought on the timescale for this;
• an improving position was being reported in relation to the projected budget shortfalls for both High Life Highland and Eden Court, however these projections were subject to constant change;
• the report was based on the available information at the current time and the financial position would require to be continually updated as new information emerged;
• the increase in the numbers claiming universal credit and also the significant reduction in income levels in Highland compared to the rest of Scotland was sobering;
• the Highlands was particularly exposed in terms of the long-term economic consequences as it was mainly service based with a great dependence on tourism, and therefore the increase in reserves and the cautionary approach being taken was welcomed;
• clarification was sought on the number of staff which had been employed through the Transformation Change Fund, the total cost to the Council and in relation to the allocation of employment costs. It was confirmed that Members would be circulated with more detailed information on the Transformation Change Fund;
• it was surprising the recruitment of a Depute Chief Executive was being progressed at this time and concern that Members had not been aware the post was being advertised. The Chair advised that it was inappropriate to comment on the matter at the present time. However, it was indicated that matters relating to the workforce fell within the Committee’s remit in the Scheme of Delegation and therefore questions in relation to the appointment of a Depute Chief Executive were appropriate, and particularly whether this appointment was critical to ensure the safer provision of key Council services;
• the main premise of the senior management restructure agreed in April 2019 was that it was going to generate savings and confirmation was sought on whether there had been an increase in the number of Heads of Service in addition to the appointment of the Executive Chief Officers. In addition, concern was expressed at the level of the severance payments to senior management detailed in the Annual Accounts;
• Responding to concerns raised, the Chair provided an assurance that the restructure had generated savings and that he would arrange for Members to receive more detailed information on the severance payments to senior management detailed in the Annual Accounts;
• the Chair advised that the Administration and Committee were fully supportive of the Chief Executive. The Council was in a far stronger financial position than it had been for a number of years and this was thanks to the tireless work of the Chief Executive and her team;
• the restructuring had taken a period of time to implement and had been delayed due to Covid-19. The agreed senior management restructure had clearly involved the appointment of a Chief Operating Officer and not a Depute Chief Executive as had been advertised and concern was expressed at the lack of consultation with Members on this change;
• this was a unique and unprecedented situation for Members, officers and people in the Highlands. There was a need to show solidarity and work together to promote the Council and the Highlands, and produce and drive forward plans on the way forward for the recovery for the area;
• the need for openness and transparency in relation to funding received from the Scottish Government and for this to be reported with clarity to the Committee;
• along with the financial position there was a need to consider governance and communication when issuing financial information in the public domain, specific reference being made to issues with the Eat Out to Help Out Scheme.

At this point, the meeting was adjourned at 2.35pm and reconvened at 2.50pm.

Thereafter, Mr P Saggers seconded by Mr R Bremner MOVED that Members agree to suspend the appointment of a Depute Chief Executive until an immediate review of the current restructure had been reported to full Council.
Mr A Christie seconded by the Chair moved as an AMENDMENT that the matter of the appointment of a Depute Chief Executive be discussed at the next Council and a review/evaluation on the Senior Management Structure commences to ensure that the original aims of the Governance restructure were evidenced.

On a vote being taken, the MOTION received 8 votes and the AMENDMENT received 10 votes and the AMENDMENT was therefore CARRIED, the votes having been cast as follows:-

For the Motion:
Mr R Bremner, Mr J Bruce, Mrs G Campbell-Sinclair, Dr I Cockburn, Mr D Louden, Mr G Mackenzie, Mr S Mackie and Mr S Saggers.

For the Amendment:
Mr A Christie, Mrs H Carmichael, Mrs M Davidson, Mr R Gale, Mr T Heggie, Mr B Lobban, Mr A Mackinnon, Mr D Macpherson, Mr M Reiss and Mr D Rixson.

Decision

The Committee:-

i.     NOTED the financial position of the General Fund and HRA revenue budgets as at 30 June 2020 and NOTED the central case of the estimated year end forecast, along with the range of potential positions subject to external variables; 191
ii.    NOTED that a further report would be provided to the Highland Council on 10 September 2020 with further options to mitigate the budget gap;
iii.   AGREED that Members be provided with more detailed information on the Transformation Change Fund;
iv.    AGREED that Members be provided with a briefing on the severance payments to senior management detailed in the Annual Accounts; and
v.     AGREED that the matter of the appointment of a Depute Chief Executive be discussed at the next Council and a review/evaluation on the Senior Management Structure commences to ensure that the original aims of the Governance restructure were evidenced.

5. Resources and Finance Service, Performance and Governance Service and Transformation Service – Revenue Monitoring to 30 June 2020

There had been circulated Joint Report No RES/16/20 dated 30 July 2020 by the Executive Chief Officer Resources and Finance, Executive Chief Officer Performance and Governance and Executive Chief Officer Transformation.

The Committee AGREED the revenue monitoring position to 30 June 2020.

RESOURCES AND FINANCE SERVICE
SEIRBHEIS NAN GOIREASAN CORPORRA

6. Treasury Management
Rianachd Ionmhais

(a) Summary of Transactions
Geàrr-chunntas Ghnothaichean

There had been circulated Report No RES/17/20 dated 16 July 2020 by the Executive Chief Officer Resources and Finance.

The Committee NOTED the Treasury Management Summary of Transactions report.

(b) Annual Treasury Management Report 2019/20
Aithisg Stiùiridh Bhliadhnail an Ionmhais 2019/20

There had been circulated Report No RES/18/20 dated 16 July 2020 by the Executive Chief Officer Resources and Finance.

During discussion, the following main points were raised:-

• clarification was sought in relation to the increased borrowing to fund capital expenditure on the Housing Revenue Account. The Head of Finance and Commercialism confirmed he would have a separate discussion with Mr D Louden on this matter outwith the meeting;
• the potential to increase the authorised limit for borrowing to take account of ongoing capital projects. It was confirmed this limit was set annually by the Service on the basis of the planned capital investment and took into account any uncertainties with projects. The Head of Finance and Commercialism advised that he would respond directly to Mr D Louden on the authorised limit set for 2020/21;
• the potential for Public Works Loan Board interest rates which had been increased by 1% in the previous year, to be reduced; and
• concern the economic update by the Council’s Treasury advisors, appended to the report made no mention of the impacts associated with Brexit, and the need for the Council to consider this issue in more detail. The Executive Chief Officer Resources and Finance suggested that a session for Members with the Council’s Treasury Advisors be arranged to provide for a more detailed understanding of the wider context.

The Committee:-

i.     NOTED the Annual Treasury Management report for 2019/20; and
ii.    AGREED that a session for Members with the Council’s Treasury Advisors be arranged.

7. Corporate Resources Service Quarterly Performance Report
Aithisg Choileanaidh Ràitheil Seirbheis nan Goireasan Corporra

There had been circulated Report No RES/19/20 dated 17 July 2020 by the Executive Chief Officer Resources and Finance.

The Committee NOTED the statutory and key performance indicators as outlined in the report.

8. Annual Performance Monitoring: Welfare, Advice and Information Services 2019/20
Sgrùdadh Coileanadh Bliadhnail: Seirbheisean Sochair, Comhairle agus Fiosrachaidh 2019/20

Declarations of Interest: Mr A Christie as General Manager Inverness, Badenoch and Strathspey Citizens Advice Bureau and Mr P Saggers as a Director of Nairn Citizens Advice Bureau declared non-financial interests in this item 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/20/20 dated 17 July 2020 by the Executive Chief Officer Resources and Finance.

During discussion, the following main points were raised:-

• The Council’s Welfare, Advice and Information Services and CABx be commended on their outstanding performance, and excellent services and value for money they delivered. These Services would become more critical for households as the furlough scheme was withdrawn in the Autumn and would make a valuable contribution to the Council’s recovery plans;
• Whether plans which were in place ensure the Service was sufficiently staffed given that the demand for benefit and advice services was likely to significantly increase in the current year; and
• the Leader of the Council commented on the outstanding performance of staff and the CAB in 2019/20 and that she would have discussions with the Head of Revenues and Customer Services and CAB in regard to resourcing going forward in the first instance and that consideration would be given to the potential for an update report on the resourcing of the Welfare, Advice and Information Services to be submitted to the new Joint Wellbeing Sub-Committee.

The Committee NOTED the undernoted performance:

i.     in excess of 26,500 customers were assisted by the Council’s Welfare Support Team and Citizens Advice during 2019/20 for support with welfare, debt and housing issues;
ii.    financial gains for customers exceeded £23.7 million. This represented a £14.64 return for every £1 allocated to welfare, advice and information services by the Council;
iii.   a total of £11.6 million of debt (including £2.1m relating to mortgage/other secured loans) was presented to Citizens Advice, which represented a 28.7% decrease compared to 2017/18; and
iv.    Citizens Advice supported 3,029 customers (including social rented, private rented and homeowners) seeking housing-related advice, which highlighted the demand for consistent accessible support on these issues.

The Committee AGREED that the potential for an update report on the resourcing of the Welfare, Advice and Information Services to be submitted to the new Joint Wellbeing Sub-Committee be investigated.

9. Covid 19 and School Trip Refunds
Pàigheadh Air Ais Thursan Sgoile

There had been circulated Report No RES/21/20 dated 20 July 2020 by the Executive Chief Officer Education and Learning.

The Chair thanked Members for their email responses in agreeing to this item being progressed ahead of the Committee and sought formal ratification of the actions taken as contained in the recommendations outlined in the report.

The Committee:-

i.     NOTED the steps taken by the Council and its schools to manage the impact of school trip cancellations, and in turn minimise the costs arising by seeking to reschedule trips, or receive refunds or insurance payouts, where appropriate;
ii.    AGREED the action taken to refund parents in the situations as described within the report, where no other source of refund was available, and to avoid any financial loss or hardship on parents as a result;
iii.   AGREED the action taken to utilise the financial hardship fund, as the funding source for the refunds to parents; and
iv.    NOTED the further actions as set out within the report, regarding recovery and other actions to try and recover any further sums possible from providers via refund, or from insurers.

10. ICT Transformation Update
Cruth-atharrachadh ICT agus Ùrachadh Lìonraidh

There had been circulated Report No RES/22/20 dated 16 July 2020 by the Executive Chief Officer Resources and Finance.

The Chair commended the ICT Service on their exceptional work over the past few months during the emergency period and on behalf of the Committee conveyed his thanks to the Head of ICT and Digital Transformation and his team. Confirmation was also provided that Councillor D Rixson would be provided with an explanation on the additional colours being used within the RAG status column.

The Committee NOTED the update on the ICT Transformation and Network Programmes.

MINUTES OF MEETINGS
GEÀRR-CHUNNTAS CHOINNEAMHAN

11. Minutes of Meetings
Geàrr-chunntasan Choinneamhan

The Committee NOTED the Minutes of Meetings of the Central Safety Committee held on 7 February 2020 and the Staff Partnership Forum held on 7 February 2020.

The meeting ended at 3.30pm.