Agenda and minutes

The Chair welcomed members to the meeting and noted apologies.

There were no declarations of interest.

The Chair introduced the report setting out the revised proportionality and its implications for the distribution of seats amongst the political groups on the LGA’s governance structures following the local government elections on Thursday 3 May 2018 in England and Wales.

Decision

The LGA Executive endorsed the proportionality figures for 2018/19 meeting year.

Action

Political groups to populate places across all LGA structures.all LGA structures.

Nicola Morton, Head of Programmes (Local Government Finance), introduced the report which updated the Executive on the LGA’s work on the Fair Funding Review and Business Rates Retention reform. Nicola explained that the template for evaluation of future Fair Funding Review proposals had been finalised and adopted and would be used to assess new proposals which emerged as part of the Review.

Separately, the University of Essex had updated the data used in the 2013/14 funding baselines and published a working paper. As a result of the analysis the Task and Finish Group on Business Rates Retention and the Fair Funding Review and the Leadership Board had agreed to use population projections in needs baselines along with schools census data. This had led to greater divergence of relative needs than previously been presented to the Leadership Board and the Task and Finish Group, reinforcing the decision to use population projections in the formulae.

Work on the commissioning of a transition model would commence shortly.

On Business Rates Retention, work was underway to commission a business rates retention model to enable the effect of systems design options to be estimated.  Members would be updated on this in due course.

Members were informed of an MHCLG error in calculating the allocations of grant to compensate pilot local authorities for business rates multiplier caps. As a result an independent review of the business rates process would be undertaken.

A prospectus inviting authorities to become pilot areas in 2019/20 was expected and officers were looking at what could be learnt from the current pilots.

The Executive was updated on recent discussions in the joint MHCLG / LGA officer groups on Business Rates Retention and the Fair Funding Review and the future consultations on these.

In the discussion which followed, Members raised the following points:

·         The LGA should do all it can to ensure that the impact of appeals does not fall on individual local authorities.

·         The need for certainty post April 2020 and the need for Government to meet the funding gap.

·         That regardless of any proposed fair funding formula it would be unlikely that the quantum of resources raised through business rates would be enough to support local authority services.

·         It would be beneficial for the LGA Executive to have a greater understanding of local authority overspends in key areas.

·         Concern was raised over local authority reliance on a number of different social care funding streams including the adult social care precept and improved better care fund.

·         The importance of LGA messaging and the need to address the concerns of a number of government departments.

Decision

The LGA Executive provided comments on and noted the update.

Action

Officers to proceed with delivery of the LGA work programme on business rates retention and the Fair Funding Review in line with comments from the LGA Executive.

The Chair introduced the annual report which provided an overview of areas reviewed and work undertaken by the Audit Committee in 2017/18, in accordance with the Committee’s terms of reference. The Audit Committee had agreed the report at their meeting on 4 June 2018.

Decision

The LGA Executive endorsed and commended to the General Assembly the 2018 Annual Report of the Audit Committee.

Action

The annual report to be presented at General Assembly on 3 July 2018.

a)    Notes of LGA Leadership Board on 11 April 2018 (attached)

b)    Notes to LGA Leadership Board on 6 June 2018 (to be tabled)

The note of the last Leadership Board meeting was agreed a correct record.

The notes of the last LGA Executive meeting were agreed as a correct record.

Sarah Pickup, Deputy Chief Executive, introduced the report which provided a summary of the high level messaging the LGA could adopt in its work on the 2019 Spending Review, work on which had already commenced. The Executive were invited to comment and provide direction.

There followed a confidential discussion.

Decision

That LGA Executive’s comments on the suggested high level messaging for the LGA’s Spending Review (SR) activity be taken on board in forthcoming work.

Action

Following the meetings of the LGA Leadership Board and LGA Executive, officers will:

1. Finalise the set of high level messages; and

2. Build a detailed Spending Review campaign plan on this basis. (Sarah Pickup).