Agenda and minutes

95/21 – APOLOGIES FOR ABSENCE AND NOTIFICATION OF SUBSTITUTES: An apology for absence had been received from Councillor Graham Swift.

(5.31 pm)

Members to advise of any declarations of interest.

96/21 – DECLARATIONS OF INTEREST: There were no declarations of interest.

(5.31 pm)

of the meeting of 2 February 2022

97/21 – MINUTES: The Minutes of the meeting of the Cabinet held on 2 February 2022 were unanimously approved as a correct record.

(5.31 pm)

To determine whether to exclude the press and public during the consideration of any exempt information items – items 9 (part), 10 (part) and 13 (part).

98/21 – EXEMPT INFORMATION: Appendices 3, 4 and 5 to the reports considered at Minutes 102/21, 103/21 and Appendix 4 to the report considered at Minute 106/21 were considered to be exempt under paragraph 3 of Schedule 12a to the Local Government Act. Discussion on the items took place in open session.

(5.32 pm)

The Revenues, Welfare and Customer Services Manager to submit a written report.

99/21 – LOCAL COUNCIL TAX REDUCTION SCHEME 2022/23: The Revenues, Welfare and Customer Services Manager submitted a written report which detailed the annual review of the Local Council Tax Reduction (CTR) Scheme, which was attached at Appendix A to the report. The CTR scheme provided support for low-income households and was currently based on a means test. The scheme was split between those of pension age and those of working age; the rules for pension age claimants were set by the government, however the rules for working age households were set by the billing authority. The HBC local scheme was aligned with Housing Benefit processes.

A full review and consultation process of the CTR scheme was planned to allow roll out of a new scheme for the 2021/22 financial year with a view to making the scheme simpler to communicate and claim. This was initially delayed by a year when resources within Welfare Services had to be prioritised on the additional work involved in our response to COVID-19. This included increased CTR applications and the administration of the Test and Trace Support payment scheme. Due to the ongoing COVID-19 response work throughout 2021/22 and the announcement of Local Government Reorganisation (LGR) from 1 April 2023 the full review of the CTR scheme was postponed.  The new North Yorkshire Council would be required to agree a single CTR scheme for the new authority and the work had already commenced as part of the Finance work stream of the LGR programme.

The Council’s CTR scheme was generous and offered 100% support to the most financially vulnerable households in the district, we were one of the few authorities to offer 100% support. There were no significant changes to the Local CTR Scheme for 2022/23; proposed minor amendments included the uprating of personal allowances and premiums; uprating of non-dependant deductions and uprating of income disregards.

RESOLVED (UNANIMOUSLY):

That HBC maintains the Local Council Tax Reduction Scheme in its current format for 2022/23 with the reflection of legislative changes that have come into effect since the 2021/22 scheme review.

Reasons for making decision:

The current scheme provided financial assistance for low-income households in the district and supported the Council’s aims under its Welfare Strategy.

Legislation required the Council Tax Reduction policy to be approved on an annual basis by 11 March preceding the start of the financial year the policy applied to.

Alternative options considered and rejected:

To make no changes to the scheme. This was not a viable option as the Council must reflect national legislative changes in the local scheme.

To make revision or replacement proposals. This was not recommended as any change to the CTR scheme must follow the consultation process as set out in legislation. This work was not undertaken due to the continued high workload within the Welfare Service in response to the Coronavirus pandemic. The CTR scheme is generous, offering 100% support, and changing the scheme may mean reducing support for the most financially vulnerable placing increased pressure on  ...  view the full minutes text for item 99.

The Revenues, Welfare and Customer Services Manager to submit a written report.

100/21 – HOUSING BENEFIT WAR PENSION AND ARMED FORCES      

  COMPENSATION DISREGARD POLICY: The Revenues, Welfare and Customer Services Manager submitted a written report which reviewed the arrangements for Housing Benefit made in respect of Section 134 8(a) of the Social Security Administration Act 1992 (SSAA), entitling local authorities to modify any part of the Housing Benefit scheme to provide for the disregarding of prescribed war disablement pensions or war widow’s pensions. The Housing Benefit War Pension and Armed Forces Compensation Disregard Policy was attached at Appendix 1.

The SSAA 1992 entitled Local Authorities to locally design adjustments to the scheme to satisfy the needs of their community but with a percentage of the cost for such a scheme falling on the authority’s own finances. The Housing Benefit Regulations 2006 prescribed a standard Government disregard of £10.00 from the incomes prescribed in the Housing Benefit (War Pensions Disregards) Regulations 2007. The Council had operated a local scheme that disregarded 100% of this income since the introduction of the SSAA and had incorporated this scheme into its Local Council Tax Reduction Scheme in 2013.

Subsidy arrangements meant that where a local amendment to the scheme was in operation, the local authority would be compensated with 75% of any expenditure incurred up to a maximum of 0.2% of the total subsidy claimed in the relevant year.

In 2020-21 the full cost to the Council was £5,314 with £15,941 of the total expenditure of £21,255 met through subsidy. The total number of claimants in receipt of the prescribed incomes had fallen over the past 10 years with only eight claims in the 2020-21 subsidy year benefitting from the policy.

RESOLVED (UNANIMOUSLY):

That    (1) the Council continues to disregard the whole of any incomes prescribed in the Housing Benefit and Council Tax Benefit (War Pension Disregards) Regulations 2007 and as such Cabinet approve the Housing Benefit War Pension and Armed Forces Compensation Disregard Policy for the 2021-22 subsidy year; and

(2) adoption of the policy for the forthcoming subsidy year 2022-23 be agreed.

Reasons for making decision:

A local scheme had been in operation for a number of years. The current scheme provided financial assistance for low-income households in the district and supported the Council’s aims under its Welfare Strategy, promoting equality and welfare, targeting a group of individuals who were potentially vulnerable in accordance with the council’s aim of “Supporting our Communities”.

Retaining a local scheme would maintain consistency with the Local Council Tax Reduction Scheme, which has equivalent provisions and was approved by Cabinet for 2021-22 on 2 March 2021.

Adoption of the policy had already been factored into the operation of the Welfare Service and the administration of claims in 2021/22. As such, the financial implications had already been factored into budget projections for the service for the current year.

Adoption of the policy would ensure we were compliant for the Housing Benefit Subsidy Audit.

Alternative options considered and rejected:

Amending the policy to disregard only part of the prescribed incomes would  ...  view the full minutes text for item 100.

The Revenues, Welfare and Customer Service Manager to submit a written report. (Copy to follow.)

101/21 – COVID-19 ADDITIONAL RELIEF FUNDING (CARF): The Revenues, Welfare and Customer Services Manager (RWCSM) submitted a written report which sought approval of the scheme for awarding Discretionary Rate Reliefs for 2021/22 to businesses in respect of the COVID-19 Additional Relief Funding (CARF). The fund was available to support those businesses affected by the pandemic but that were ineligible for existing support linked to business rates. The report also sought delegated authority to the Section 151 Officer in consultation with the Cabinet Member for Resources, Enterprise and Economic Development to amend the scheme and implement further awards of relief if necessary and authority for the Revenues, Welfare and Customer Services Manager to make technical amendments to the scheme to ensure it met the agreed criteria and was in line with Government guidance.

Recognising that businesses affected by the pandemic, and not in receipt of other reliefs or support, would not be able to pursue Material Change of Circumstances appeals as a way of reducing their rates bills, the Government announced on 25 March 2021 that local authorities would be allocated a share of new £1.5 billion funding that could be used to support those local businesses most affected by the pandemic. The grant would be an extra support package for those businesses who did not benefit from the expanded retail discount provided to retail, hospitality and leisure businesses since 1 April 2020. CARF was essentially a retrospective support measure and was unrelated to the Omicron variant situation although announced at a similar time. The Government was providing Harrogate Borough Council with an allocation of £3,243,478 for CARF as a Section 31 Grant. Relief would automatically be granted to businesses within the sectors that the highest amount of funding has been allocated for and therefore those most affected by the pandemic. A contingency amount would be set aside from the allocation for any businesses who present themselves to the authority and could demonstrate that they have been adversely affected by the pandemic and meet the eligibility criteria of the scheme. Harrogate Borough Council had also worked with neighbouring North Yorkshire authorities to take a similar approach with their scheme. Funding would not be available to those businesses as detailed in section 5.12 of the report.

In response to a question from a Member the RWCSM explained that the CARF funding was not available to personal care business because the scheme related to Discretionary Business Rates Relief. To be eligible a business was required to have had a business rate liability in 2021/22 and not been in receipt of any other business rates relief. Personal Care business were eligible for the retail rates relief and therefore were not covered by this scheme.

RESOLVED (UNANIMOUSLY):

That    (1) using discretionary relief powers under section 47 of the

Local Government Finance Act 1988 as amended, and with regard to

Government Guidance, the award of Covid-19 Additional Relief

Fund (CARF) rate reliefs as detailed in the scheme in Appendix A be approved;

(2) the Section 151  ...  view the full minutes text for item 101.

The Operations Manager (Client) to submit a written report.

102/21 – NET ZERO CARBON SOCIAL HOUSING HBC - FORWARD PLAN

               REF: 53PSEG21: The Operations Manager (Client) (OMC) submitted a written report detailing the plan to reduce carbon emissions from the social housing of Harrogate Borough Council (HBC) and sought to gain approval for the allocation of budget for the development phases of the plan. An estimated cost breakdown was attached at appendix A and a stage plan was contained within appendix B.

The Council had a target to achieve net zero carbon emissions for the Borough by 2038 and to ensure its housing stock supported that ambition a comprehensive, costed programme would be required in order to determine the detailed steps necessary for delivery of the HRA’s contribution to this target. Given the scale of the challenge it would be necessary to devise a long term programme to deliver retrofit measures to reduce carbon production to zero. Paragraph 5.3 of the report detailed the three phase approach to delivering the project including the running of a pilot scheme involving 85 archetype homes and evaluation of the pilot scheme results and then retrofitting of the remaining stock. The pilot scheme and evaluation stage were to be funded from the HRA as detailed in paragraph 2.1 of the report. The estimated total cost of the works was over £98m, this would be refined at completion of phases one and two.

In response to questions from a Member the OMC and Head of Housing and Property explained that the Council would look to take advantage of any Government funds whenever they became available. It was also explained that the scheme was a multi-year programme and would be incorporated into the HRA’s 30 year business plan. Once the new authority had formed, after LGR, the scheme would become part of the new authority’s housing programme.

RESOLVED (UNANIMOUSLY):

That    (1) provision of funds from the HRA be approved as follows:

·         £2,332,500 for the pilot phase across 2022/23 and 2023/24;

·         £8,500 for the evaluation phase in 2023/24; and

(2) for the financial year 2022 /2023 Cabinet delegated authority to the Head of Housing and Property in consultation with the Cabinet Member for Housing and Safer Communities to award and enter in to all contracts for the supply of goods, works or services which relate to this scheme 

Reasons for making decision:

The funding allocation being requested was necessary if the Housing Revenue Account (HRA) was to make its contribution to the Council’s desire to become a net-zero carbon district by 2038.

The funding was also necessary if the HRA is to continue to meet the needs of its customers and the requirements of central government, in the provision of social housing.

The funding allocation made it possible that HBC would reduce its footprint and stay compliant to the government legislation.

Alternative options considered and rejected:

To continue a traditional approach to the improvement of the Council’s social housing without special focus on carbon reduction. This option is not recommended because it is not aligned with  ...  view the full minutes text for item 102.

The Executive Officer Strategic Property and Major Projects to submit a written report.

103/21 – LEISURE INVESTMENT PROJECT - KNARESBOROUGH - FORWARD

    PLAN REF: 50CTS21: The Executive Officer Strategic Property and Major Projects submitted a written report which sought agreement to authorise the award of the contract and proceed with construction work for a new leisure facility in Knaresborough. Attached at appendix 1 was a comparison of the current and proposed facility. The report also detailed the design and costings for the project following completion of RIBA stage 4 design work, appendix 2 detailed the proposed contract submission. The financial model for the investment proposal taking into account current costs was set out in appendix 3, and income projections after project completion could be found at appendix 4.

At Cabinet on 17 June 2020 approval was given to develop schemes and parallel business plans for development of the Hydro and Knaresborough leisure sites including indicative timelines and agreement on review and signoff for each RIBA design stage. Approval was now sought for RIBA stage 4 design work and construction. In November 2020 Alliance Leisure Services (Alliance) were appointed to provide a development management service for the development to RIBA Stage 4 for each of the two leisure schemes. Alliance were appointed as specialists in the area and with their experience and expertise they would provide the best value for the project.

The existing leisure site in Knaresborough was ageing and had a number of maintenance issues which were not resolvable without significant interventions, the current venue also only provided for swimming and contained no other fitness space resulting in high costs compared to combined leisure venues. Details of what would be provided at the new site were provided in paragraph 5.4 of the report, included were a new 25m six lane pool and a large multi-use studio space, spin studio and a fitness suite. The building was being designed to meet a BREEAM Excellent rating and it was expected that the proposed development would have an energy performance certificate of A against the current rating of D. The project was designed with social values in mind, 50% contractors working on the project would be local employees (FTE), the project would offer apprenticeships and would provide significant benefit to the local area’s supply chain. The project was expected to take 65 weeks and begin in April 2022 concluding in July 2023. The existing facility would remain open throughout the construction period until the new facility was available.

The Head of Finance explained that the revised financial model for the project showed that capital costs had risen, in part due to inflation, but that the model showed that the new site would provide a significantly improved operating surplus as a result of more fitness stations. When viewed as a combined scheme with the Hydro redevelopment there was a significant improvement in the operating costs of the sites.

RESOLVED (UNANIMOUSLY):

That    (1) the outcome of the updated financial model for this project be noted; and

(2) the award of the contract for this refurbishment project at  ...  view the full minutes text for item 103.

The Executive Officer – Strategic Property and Major Projects to submit a written report.

104/21 – LEISURE INVESTMENT PROJECT - THE HYDRO REFURBISHMENT - FORWARD PLAN REF: 49CTS21: The Executive Officer Strategic Property and Major Projects submitted a written report which sought agreement to authorise the award of the contract and proceed with construction work for the Hydro. Attached at appendix 1 was a comparison of the current and proposed facility. The report also detailed the design and costings for the project following completion of RIBA stage 4 design work, appendix 2 detailed the proposed contract submission. The financial model for the investment proposal taking into account current costs was set out in appendix 3, and income projections after project completion could be found at appendix 4.

At Cabinet on 17 June 2020 approval was given to the Council’s Project Team to develop schemes and parallel business plans for development of the Hydro and Knaresborough leisure sites including indicated timelines and agreement that a review and signoff for each RIBA design stage. Approval was now sought for RIBA stage 4 design work and construction. In November 2020 Alliance Leisure Services (Alliance) were appointed to provide a development management service for the development to RIBA Stage 4 for each of the two leisure schemes. Alliance were appointed as specialists in the area and with their experience and expertise they would provide the best value for the project.

Internal condition surveys of the Hydro had indicated that it had lasted well but noted that all the significant infrastructure was 20 years old. The Hydro had a number of significant maintenance items that would require up to a six month closure to address. It was also noted that the site had a significant deficit in fitness and multi-use space which would require remodelling to achieve. A remodelling and refurbishment scheme would provide a venue reflecting current and future activity needs with operational and maintenance stability for the next 10-20 years, the cost estimate in 2020 was £13.5million and details of the scheme could be found at appendix 1 to the report. There were to be a number of internal changes that included extending to provide a larger café and reception area, a significantly larger fitness studio and replacement of the diving structure. Externally there was to be a realignment of the road layout to allow for the extension and provision of electric charging points. Further detail was contained in paragraph 5.4 of the report.

The redesign of the site was being done in accordance with the Public Sector De-Carbonisation Scheme (PSDS), in addition to the refurbishment a grant of £1.8m had been secured to replace the old gas fired boilers, with Air Source Heat Pumps and install Photo Voltaic Panels on the roof. The grant work reduced our replacement costs and our fuel costs. The carbon footprint for the site would be reduced by between 50-60%. It was expected that as a result of this project the EPC rating of the building would improve from a C to an A rating and it was expected to reduce  ...  view the full minutes text for item 104.

The Head of Destination Marketing to submit a written report.

105/21 – 2022-2025 HARROGATE DISTRICT DESTINATION

               MANAGEMENT PLAN - FORWARD PLAN REF: 56DMO21: TheHead of the Destination Marketing Organisation (HDMO) submitted a written report with sought approval of the 2022-2025 Harrogate District Destination Management Plan (DMP), attached at appendix A.

In presenting the report the HDMO advised that the visitor economy played a major role in our District contributing over £600 million to our economy each year and providing jobs for around 8000 people. A thriving visitor economy enhanced and maintained quality of life for local residents and made the District a more attractive place to visit and invest. For a visitor economy to grow it required a collaborative approach, strong leadership and a shared sense of direction. To attract business and investment, a destination must be distinctive, attractive and well managed.The DMP has been designed collaboratively with all this in mind and would be supported by several parties including HBC and Destination Harrogate.  The views of stakeholders were sought through surveys and in depth interviews, a DMP Advisory Panel had been appointed and was made up of key stakeholders within the visitor economy. Any significant change to the visitor economy would take time and targets were set for 2030, the DMP also set out incremental actions for 2022-2025.

RESOLVED (UNANIMOUSLY):

That the 2022-2025 Harrogate District Destination Management Plan be approved.

Reason for making decision:

The visitor economy played a major role in our District. It contributed over £600 million to our economy each year and provides jobs for around 8000 people.

A Destination Management Plan was essential in effectively driving the continued growth of the visitor economy.

Alternative options considered and rejected:

To continue to manage Harrogate District’s visitor economy without a Destination Management Plan in place to guide planning and activity. This was not recommended as it would not support the visitor economy in reaching its potential.

(6.08 pm – 6.13 pm)

(D)

The Head of Destination Marketing to submit a written report.

106/21 – EVENTS HARROGATE STRATEGY – FORWARD PLAN REF:

    55DMO21: The Head of the Destination Marketing Organisation (HDMO) submitted a written report which sought approval for the Events Harrogate Strategy and accompanying 2022 Events Programme. The Events Programme for 2022-23 was attached at appendix A.

The HDMO reported that events were key to driving visitor numbers and attracting people from far and wide to spend money in the District. These events were delivered by a number of organisations across the District and a strategy was essential in determining the Council’s role in this. Visitor expenditure made up 14.3% of the District local economy with a value of £606.1m (as of 2019). Beyond the direct impact of visitor expenditure, there were supplemental and indirect benefits manifested through local supply chains, for example local food and drink manufacturers who supplied businesses directly within the visitor economy. The Events Harrogate Strategy had been written in support of the wider 2022-2025 Harrogate District Destination Management Plan (DMP), The DMP outlined three priority areas outlined at paragraph 5.6 of the report. The purpose of the Strategy was to outline how the Events Harrogate team would deliver against the second priority and position Harrogate District as a first choice events destination by attracting, hosting and delivering exceptional events.

RESOLVED (UNANIMOUSLY):

That the Events Harrogate Strategy and accompanying 2022 Events Programme be approved.

Reasons for making decision:

A vibrant events calendar was an essential component of a thriving visitor economy, which contributes over £600 million to our economy each year and provides jobs for around 8000 people.

This Strategy would guide the work of the Events Harrogate division of the Destination Harrogate team, to attract, facilitate and coordinate exceptional events for Harrogate District.

Alternative options considered and rejected:

To attempt to coordinate the Harrogate District Event Calendar without a defined strategy in place to guide planning and activity. This was not recommended as it would not support the visitor economy in reaching its potential.

(6.13 pm – 6.15 pm)

(D)

The Head of Destination Management to submit a written report.

107/21 – HARROGATE DISTRICT SUBVENTION FUNDING – FORWARD PLAN

    REF: 54DMO21: The Head of the Destination Marketing Organisation (HDMO) submitted a written report which sought approval of a contribution of £450,000 for the establishment of a £500,000 three-year Subvention Fund to support in the attraction of business and leisure events to the Harrogate District. The remaining £50,000 would be contributed by Harrogate BID.

The HDMO explained that Subvention Funding (SF) was a powerful tool for attracting certain types of event and was possibly a critical way of affecting whether an organiser chose your destination or another. Commonly SF was used to attract not-for-profit business events and some leisure events. SF was a standard method used to attract events to destinations and in particular it was a common way to stimulate business event bookings for convention centres that are re-opening post refurbishment or redevelopment, or for launching brand new properties. Subvention was also commonly used after recessions or business interruptions, to drive additional income away from competitor destinations and generate valuable economic impact to a specific region that cannot be equalled from other forms of promotion.

The HDMO advised that subvention fund would be made available from April 2022 to March 2025 and would be managed by the DMO. Funding would be made up of £450K from Harrogate Borough Council and a £50K contribution from the Harrogate BID. Event organisers would be able to bid for funding for events held anywhere in the District and bids would be assessed against a strict set of criteria, found within appendices 1 and 2, the final decision would be made by the Subvention Fund Panel. The Panel would be managed by the DMO and a draft list of Panel members could be found in Appendix 3. Examples of competitors that used subvention funding could be viewed in appendix 4.

RESOLVED (UNANIMOUSLY):

That    (1) the continued economic importance of attracting events as an economic driver for the District be noted;

(2) a Subvention Policy through a funding contribution to the DMO by way of grant from the Council’s 2022/23 revenue budget be approved;

(3) a Subvention Fund Panel be established and authority delegated to the Director of Harrogate Convention Centre (HCC) and Head of DMO to make awards up to £100,000 in accordance with the recommendations of the Subvention Panel be approved; and

(4) that any subvention award in excess of £100,000 be subject to approval by the Cabinet Member for Culture, Tourism and Sport.

Reasons for making decision:

Harrogate District faced significant competition from destinations that already had a Subvention Fund in place to attract events, including Liverpool, Belfast, Wales and soon Newcastle Gateshead in support of its new Conference and Exhibition Centre and Arena – Newcastle/Gateshead Quays.

Subvention was a useful tool for both attracting new events and re-engaging with past events that have since relocated their events elsewhere.

Attracting new events would generate revenue for HCC and venues across the District, ultimately generating economic impact for the destination.

The attraction of new  ...  view the full minutes text for item 107.

The Democratic Services Manager to submit a written report.

108/21 – KEY DECISIONS: FINANCIAL THRESHOLDS: The Democratic Services

Manager submitted a written report in relation to the annual review of the financial thresholds for key decisions. The current thresholds were listed in paragraph 5.2 of the report and Cabinet was asked to decide on financial thresholds for key decisions for the year to 31 March 2023.

RESOLVED (UNANIMOUSLY):

That the current financial thresholds for key decisions as detailed in paragraph 5.2 of the report, remain unchanged for the year to 31 March 2023.

Reason for making decision:

To comply with the Local Authorities (Executive Arrangements) (Access to information) (England) Regulation 2000 as amended.

Alternative options considered and rejected:

None

(6.18 pm – 6.19 pm)