Agenda and minutes

There were no apologies for absence and no declarations of interest.

Cllr Overton paid tribute to Cllr Clarence Barrett who passed away on Friday 2 March. Cllr Barrett was the Leader of the Upminster and Cranham Residents Association at London Borough of Havering, Treasurer of the LGA Independent Group, and a Deputy Chair of a number of LGA structures including the City Regions Board, the Commercial Advisory Board, and the LGA’s Property Companies. He had also held positions on the LGA’s Brexit Task Force and the Further Business Rates Retention and Fair Funding Task and Finish Group. He had been closely involved with LGA work for the last 10 years, and had previously held the positions of Chair of the European and International Board, and Deputy Chair of the Resources Board.

Cllr Kevin Bentley, Chairman of the LGA Brexit Task Force, to give an update on the work that the LGA has been undertaking to support councils on work related to Britain’s exit from the EU.

Cllr Kevin Bentley, Chairman of the LGA’s Brexit Task Force, updated Members on the LGA’s work on Brexit since the previous meeting. He highlighted that post-Brexit funding for regulatory services had been distributed to councils. He outlined plans in key areas to pool the resources between councils in two-tier areas to be spent on resourcing, procurement and training.

European nationals who had been in the country for more than five years and had a salary of £30,000 would be eligible to register and apply for settled status. However the LGA was continuing to lobby hard for workers who have skills in other key areas, such as health, tourism or agriculture, but may be paid less than £30,000, to be considered for settled status.

In the discussion which followed Members raised the following points:

·         Regarding the Shared Prosperity Fund, the Government had previously said that a consultation would be ready in the autumn, but this had not yet been published. This was a separate issue to the Spending Review and should be progressed.

·         In response to a question on workers’ rights, it was confirmed that local authorities would have to present evidence of those in lower paid roles where recruitment could be a challenge. This would be discussed with Home Office officials at the earliest opportunity.

·         Regarding potential European Parliament elections should there be a delay to Brexit. Contingency plans for these elections , if needed, had been discussed by the Task Force.

·         It was confirmed that local resilience forums were updated regularly by MHCLG on national planning assumptions.

Decision

The LGA Leadership Board noted the update. 

Jonathan Gratte, Strategic Finance Manager, introduced the LG Group Budget for 2019/20 which was available in the public domain. Members noted that the full LG Group Budget contained information which was confidential at this stage, and would be considered fully in Part 2 of the agenda.  

Decisions

The LGA Leadership Board:

1.    Agreed the LG group’s Budget for 2019/20 for recommendation to the LGA Executive; and

2.    Delegated approval to make necessary budgetary adjustments to reflect the final grant notification from MHCLG to the LGA Chairman and Group leaders, in consultation with the Deputy Chief Executive.

Nicola Morton, Head of Local Government Finance, introduced the report which provided a summary of LGA work on the Fair Funding Review and Business Rates Retention since the previous meeting. Members noted the consultation responses which had been considered at the previous meeting in January had been submitted. A number of successful regional events had also been held. Next steps included reconvening the officer level group with MHCLG, and the Further Business Rates Retention and Fair Funding Review Task and Finish Group would meet the following day to discuss relevant issues. Two further consultations on: the Fair Funding Review; and Further Business Rates Retention would hopefully be published before the 2019 summer recess, with final policy decisions expected as part of the 2020/21 Provisional Local Government Finance Settlement expected in December 2019.

It was confirmed that all policy related to further Business Rates Retention and the Fair Finding Review would be discussed in detail by the Task and Finish Group in the first instance and then be brought to Leadership Board and Executive for consideration. Regarding the alternative model of Business Rates Retention, it is the Government’s intention that it will compensate for appeals and allow growth to come through to local authorities. The LGA was pressing MHCLG to ensure that the whole system was as simple and transparent as possible. The LGA has commissioned LGFutures Ltd to produce a model on this to assist member authorities and the LGA.

Decision

The LGA Leadership Board noted the report and agreed that delegated authority be given to the Chairman and Group Leaders to sign off the LGA commissioned model of the alternative administration of Business Rates Retention as outlined in the report.

Mark Lloyd, Chief Executive, introduced the report which set out the LGA’s main achievements against the Business Plan since the previous meeting in January 2019.

In particular he highlighted the LGA’s work in preparation for the Spring Statement the following week, the Government’s forthcoming Adult Social Care Green Paper, the investment to councils through the One Public Estate programme jointly run between the LGA and the Cabinet Office, and ongoing work in the sector to prepare for Brexit including around ports and airports, support for small and medium enterprises, workforce, and community cohesion. Members also noted that DEFRA had recently published consultations on waste management which would have consequences for councils, and the LGA would be inviting a number of councils to come together in early April to inform a response.

In the discussion which followed Members raised the following points:

·         Regarding a question over District Council elections in Northamptonshire, it was confirmed following the meeting that legislation had been laid to cancel the elections.

·         Members noted that applications for places on the NHS Assembly would close today. The LGA had not been approached for a nomination, but at least two senior local government figures were known to have applied.

·         Regarding the £1.6billion in town deals which had been announced by the Government on Sunday, the LGA was awaiting final confirmation of distribution arrangements.

·         Regarding schools expansion, it was noted that the LGA was undertaking work as part of the Spending Review work on capital funding, and more information on this would be available in due course.

·         It was agreed that the apprenticeship levy had not achieved its goals as the number of apprentices had fallen since the introduction of the levy. The LGA would continue work with councils and the Government on this issue.

·         It was agreed that detail around funding for fire authorities be included in the ‘Funding for Local Government’ section of the report in future.

Decision

The LGA Leadership Board noted the Chief Executive’s report for March 2019. 

The Chairman introduced the Forward Plan, which set out the agendas for the LGA Leadership Board, LGA Executive, and Councillors’ Forum for the next three months.

It was agreed that a report on the Chancellor’s Spring Statement be brought forward to the April meeting.

Decision

The LGA Leadership Board agreed the Forward Plan.

Action

Forward Plan to be updated as agreed (Paul Goodchild).

Decision

The LGA Leadership Board agreed the minutes of the previous meeting held on 23 January 2019.

Decision

The LGA Leadership Board noted the minutes of the Commercial Advisory Board held on 14 January 2019.

Jonathan Gratte, Strategic Finance Manager, introduced the report and highlighted that the Budget for 2019/20 had been prepared under the assumptions which had been noted at the previous meeting in January 2019. The final Budget was presented for agreement and recommendation to the LGA Executive the following day.

There followed a confidential discussion.

Decisions

The LGA Leadership Board:

1.    Agreed the LG Group’s Budget for 2019/20 for recommendation to the LGA Executive;

2.    Agreed the Budget for 2019/20 should only be published once the MHCLG funding was confirmed for the year, with the Three Year Financial Plan remaining an internal confidential document; and

3.    Delegated approval to make necessary budgetary adjustments to reflect the final grant notification from MHCLG to the LGA Chairman and Group Leaders, in consultation with the Deputy Chief Executive.  

Action

Budget to be presented to LGA Executive for approval on 7 March 2019 (Jonathan Gratte).

David Holdstock, Director of Communications, and Amanda Spicer, Deputy Head of Events, introduced the report which updated the Leadership Board on progress made to date with arrangements for the LGA Annual Conference and Exhibition which would take place in Bournemouth from 2 July to 4 July 2019.

There followed a confidential discussion.

Decision

The LGA Leadership Board approved the emerging programme and activities for the LGA Conference and Exhibition 2019. 

Sarah Pickup, Deputy Chief Executive, introduced the report which provided an update on the LGA’s planned activity ahead of the 2019 Spending Review. This included policy and research work, campaign work, and current and future planned engagement with both the sector and Government.

There followed a confidential discussion.

Decision

The LGA Leadership Board:

1.    Noted the report; and

2.    Agreed that research into variation of spend in Children’s Services between councils be published in line with the timetable of work set out in the report.

Action

Spending Review work to continue as set out in the report (Sarah Pickup).  

Mark Norris, Principal Policy Adviser, and Charles Loft, Senior Adviser, introduced the report which summarised the recommendations of the LGA Fire Commission’s automatic fire suppression systems working group. The recommendations were supported by the LGA Fire Commission and the Fire Services Management Committee, and included recommendations for new buildings, retrofitting of older buildings, and buildings where vulnerable people slept unsupervised.

There followed a confidential discussion.

Decision

The LGA Leadership Board supported the recommendations of the Fire Commission’s automatic fire suppression systems working group as set out in the report, subject to their comments and the comments of the LGA Executive which would consider the report the following day.

Sarah Pickup, Deputy Chief Executive, introduced the report which updated Members on the current operational and financial position of the United Kingdom Municipal Bonds Agency (UKMBA), and presented options for how to progress UKMBA work.

There followed a confidential discussion.

Decision

The LGA Leadership Board agreed to adopt Option C as set out in the report, with regular updates on progress to be reported to the Commercial Advisory Board and further reports to the Leadership Board at key decision points.

Action

Officers to engage with UKMBA to take forward Option C, and further reports to be considered by the Commercial Advisory Board and Leadership Board in due course (Sarah Pickup).  

Claire Holloway, Head of Corporate Services, introduced the report which set out proposed actions regarding the re-registration of LGA Properties as an unlimited company with share capital. This was the next step in the restructure of the LGA and its property companies agreed by the General Assembly on 4 July 2017.

In response to a question Claire confirmed that the former ACC’s interest in the building would be maintained.

Decision

The LGA Leadership Board:

1.    Approved the Form of Assent, the Written Resolutions, the Draft Articles, and the Notice of Resignation, and authorised the Chairman to sign the documents; and

2.    Authorised the Company Secretary to submit the documents to Companies House together with the required filing fee for registration. 

Action

Documents to be submitted to Companies House as agreed (Claire Holloway).