Agenda and draft minutes

To receive any announcements from the chair. 

The chair welcomed everyone to the meeting, outlined the procedure to be followed and advised on emergency evacuation arrangements.

To record apologies for absence. 

Apologies for absence were received from Councillors Pieter-Paul Barker and Robin Bennett.

Councillor Anne-Marie Simpson attended the meeting remotely.

To adopt and sign as a correct record the minutes of the Cabinet meeting held on 28 November 2024.

To adopt and sign as a correct record the minutes of the Cabinet meeting held on 19 December 2024. (To Follow)

RESOLVED: to approve the public and confidential minutes of the meeting held on 28 November 2024 as a correct record and agree that the Chairman sign them as such.

RESOLVED: to approve the minutes of the meeting held on 19 December 2024 as a correct record and agree that the Chairman sign them as such.

To receive declarations of disclosable pecuniary interests, other registrable interests and non-registrable interests or any conflicts of interest in respect of items on the agenda for this meeting. 

Councillor Sam Casey-Rerhaye declared an interest in the Council Tax Long-Term Empty Property Premium Duration Change item. They informed Cabinet that their family had likely inherited an empty property, which would fall within the exemptions set out in The Council Tax (Prescribed Classes of Dwellings and Consequential Amendments) (England) Regulations 2024.

To receive notification of any matters which the chair determines should be considered as urgent business and the special circumstances which have made the matters urgent. 

There was no urgent business.

To receive any questions or statements from members of the public that have registered to speak. 

Cabinet noted that one member of the public had registered to speak at the meeting.

Mr John Salmons asked a question to the Leader of the Council regarding the agenda item 14 on the Revenue Budget 2025/26 and Capital Programme 2025/26 to 2029/30. It was questioned whether, given the uncertainty of the Council’s future due to the government’s White Paper on devolution, it was sensible to continue with the Council’s proposed new office at Didcot Gateway. Mr. Salmons suggested that the Council should remove the funds allocated for the office building and halt any further spending on it.

In response, the Leader of the Council explained that the White Paper was still a proposal and not yet finalised. Therefore, the Council would keep the office accommodation in the capital programme for now, as a future unitary authority may require office space in Didcot and removing the funds could leave the Council without a budget for such a need if it arises. The Leader emphasized the importance of keeping options open until the government’s devolution plans become clearer.

To consider the attached paper, being the recommendations and updates from other committees to Cabinet. 

Cabinet received the following recommendations from the Joint Audit and Governance Committee meeting, held on 27 January 2025.

The Joint Audit and Governance Committee considered the Treasury management 2024/25 mid-year monitoring report.

South Oxfordshire District Council RESOLVED:

1.    to note the treasury management mid-year monitoring report 2024/25.

2.    that they were satisfied that the treasury activities are carried out in accordance with the treasury management strategy and policy.

They recommend that Cabinet:

1.    considers the comments from the Joint Audit and Governance Committee and recommend that the Council approve the report.

The Joint Audit and Governance Committee also considered the Treasury management and investment strategy 2025/26.

South Oxfordshire District Council RESOLVED:

To approve each of the following key elements of this report and recommend these to Cabinet:

1.    to approve the treasury management strategy 2025/26, set out in Appendix A to this report.

2.    to approve the prudential indicators and limits for 2025/26 to 2027/28 as set out in Appendix A.

3.    to approve the annual investment strategy 2025/26 set out in Appendix A, and the lending criteria detailed in table 6.

4.    to approve the Environmental, Social and Governance policy in Appendix E.

To consider the report from the head of policy and programmes.

The Cabinet member for corporate services introduced the Council Plan – The Way Ahead. The plan established a council vision and outlined a list of strategic priorities, which include:

·       Action on climate change and nature recovery

·       Participation, accessibility, and accountability

·       Thriving, healthy, and inclusive communities

·       Homes and infrastructure that meet local needs

·       Financial stability and innovative transformation

·        

During discussion, Cabinet emphasised the importance of public engagement in developing the council’s priorities. It was noted that this iteration of the plan included strategic objectives, which outline what success would look like in each priority area.

Members thanked the policy and programmes team for their work on developing the plan.

Councillor Maggie Filipova-Rivers expressed her appreciation to the students from Goring Primary School for their valuable input on the Council’s priorities.

RESOLVED: to approve the Council Plan 2025-29 (Appendix 1)

RECOMMENDED to Council on 13 February 2025 to adopt the Council Plan – The Way Ahead.

To consider the report from the head of housing & environment.

The Cabinet member for housing and community hub presented the report, recommending the adoption of the rent setting policy for all council-provided housing. The council had undertaken a number of initiatives to increase its managed housing stock. It was noted that as the council develops of its housing offer, it needs to have a consistent approach to how rents are set in line with regulation and best practice.

The following amendments were highlighted. It was noted that these would be corrected by the head of housing and environment in the final version of the policy.

Paragraph 8.3 of the policy should read CPI +1%, not CPI+1.5% as printed. Paragraph 14.3 of the policy will have the following line add at the end: “unless such an increase would take the rent above the applicable LHA rate, at which point the rent increase (and future increases) will be capped at the LHA rate.” Any other minor amendments will be handled by the Head of Service.

There was a major addition to the report and recommendations. Whilst the policy was written to be applicable to any year, it was important to formally record the percentage increase that will apply to rents from 01 April 2025. Therefore, the following addendum to the report was required as an additional paragraph to be added after paragraph 9 of the report.

The CPI figure for September 2024 was 1.7%. Therefore, in line with the requirements of legislation and policy, the maximum increase for applicable rents for 2025/26 was 2.7%, and this being the proposed figure. No rents will be set above the relevant local housing allowance (LHA) rate, and therefore if a 2.7% increase would take the rent above the LHA rate, this will be capped at the LHA rate. All tenants will be written to inform them of this increase at least 30 days before the rise applies.

The proposed additional recommendation was:

e) That Cabinet approves the increase of rents by up to 2.7% from 01 April 2025, and that delegated authority is given to the Head of Housing and Environment to calculate specific rents and ensure that all existing council tenants are made aware of this change.

Cabinet emphasised the importance of affordable rent to ensure housing security for residents, given that South Oxfordshire was one of the most expensive areas to live outside of London. Members stressed the importance of informing tenants of rent changes as early as possible.

RESOLVED:

a)    That Cabinet approves the adoption of the Joint Rent Setting Policy for Council provided Social Housing as outlined in Appendix 1.

b)    That Cabinet delegates authority to the Head of Housing and Environment to implement the policy and oversee rent and service charge setting within the prescribed framework.

c)  That Cabinet delegates authority to the Head of Housing and Environment, in conjunction with the Head of Legal and Cabinet member for Housing, to make operational and minor changes to the Policy as required.

d)    To allow constitutional changes to authorise the  ...  view the full minutes text for item 106.

To consider the report from the head of development & corporate landlord.

The Cabinet member for environment introduced the report, providing information to help the Cabinet decide whether to amend the car park fees and charges in South Oxfordshire District Council car parks. Reviewing the car park fees and charges each year is in line with the council’s car park policy.

Table 1 of the report summarised the council’s income and expenditure position at the end of the financial year and future projections for coming years. The costs associated with running the car parks, including employee expenses, contract costs, land rates, and central administrative costs, were expected to increase. Despite these rising costs, the income generated from car parks resulted in a surplus, which could be used to fund various projects. One such project was the installation of new car park machines.

In October 2024, the council commissioned ‘Commercial Gov’ to conduct a review of the car park fees. The options A-G were detailed in the report. The Cabinet member for the environment recommended options B, C, D, and G for approval and thanked officers for their work.

Cabinet supported Option B to increase all fees by 10 percent to cover the higher costs of maintaining the car parks and to invest in new car park machines. A member suggested considering a longer-term strategic approach to ensure fairness and equity, particularly in relation to public transportation costs.

RESOLVED: that Cabinet

a)    Agree the car parking fees for the financial year 2025-26. In addition, Cabinet agreed to implement:

• Option B, to increase all fees by 10 percent;
• Option C, to amend longer stay fees to charge £1 per hour;
• Option D, to amend permit prices based on current daily fee and calculated on an agreed formula, and
• Option G, that authority is delegated to the Head of Development and Corporate Landlord in consultation with the Cabinet member for environment to decide whether to recharge for loss of income from reserving bays in car parks and if so, the recharge would be the loss of income from the daily car park fee plus 20 percent inclusive of VAT.

b)    Authorise the Head of Legal and Democratic to prepare a Notice of Variation under the Road Traffic Regulation Act 1984 for publishing in the local newspaper and all affected car parks. (Or authorise the Head of Legal and Democratic to prepare and publish a draft order under the Road Traffic Regulation Act 1984)

c)  Authorise the Head of Development and Corporate Landlord to oversee necessary communications and consultations and report back to Cabinet.

To consider the report from the head of finance.

The Leader of the council introduced the report covering the treasury management activity for the first six months of the 2024/25 financial year. An update was provided on the mid-year position and prudential indicators with a view to the remainder of the year.

The latest estimate was that the investment interest for 2024/25 would exceed the budget by 2.4 million. This was due to interest rates being above those forecast when the budget was set and average balances deposited being higher than expected. It was confirmed that there was no need for the council to borrow during the first six months of the financial year, and no borrowing is forecast for the remainder of the year. The council remained within all its prudential indicators and counterparty limits.

RESOLVED:

1. To consider any comments from the Joint Audit and Governance Committee

2. to note the treasury management mid-year monitoring report 2024/25.

3. That they were satisfied that the treasury activities are carried out in accordance with the treasury management strategy and policy.

RECOMMENDED to Council on 13 February 2025 to approve the treasury management mid-year monitoring report 2025/26.

To consider the report from the head of finance.

The Leader of the council presented the report setting out how the council’s treasury management service will support financing of capital investment decisions and how treasury management operates on a day-to-day basis.

It was noted that there were no changes to the counterparty selection criteria in the strategy for 2025/26. Members were informed that officers would work with the council's treasury advisers, MUFG Corporate Markets Treasury Limited, to consider potential alternative options for the council's unit trust investments.

An amendment to the recommendation in the report was noted, to include a proposal to approve the Environmental, Social and Governance Policy, as set out in Appendix E.

RESOLVED: to

(a)  Consider any comments from the Joint Audit and Governance Committee

(b)  note the treasury management strategy 2025/26, prudential indicator limits and annual investment strategy as set out in Appendix A.

RECOMMENDED to Council on 13 February 2024:

(c)  To approve the treasury management strategy 2025/26 to 2027/28 as set out in Appendix A

(d)  To approve the prudential indicators and limits for 2025/6 to 2027/28 as set out in Appendix A.

(e)  To approve the annual investment strategy 2025/6 set out in Appendix A, and the lending criteria detailed in table 6.

(f)    To approve the Environmental, Social and Governance Policy, as set out in Appendix E.

To consider the report from the head of finance.

The Leader of the council introduced the report outlining the council’s approach to capital spending, based on the council’s corporate strategy. It was noted that the strategy is reviewed on an annual basis and was a requirement of The Chartered Institute of Public Finance and Accountancy (CIPFA) Prudential Code.

The following key changes to the strategy were highlighted:

• Amendments to the council objectives.
• A change to the accounting treatment of Leasing by the adoption of International Financial Reporting Standard 16.
• Adjustments for the flexible use of capital receipts, as detailed in Annex A of the report. This removes the need to utilise the receipts for previously intended expenditures, which were covered in the underspend for 2023/24.

RECOMMENDED to Council on 13 February 2025 to:

(a)  approve the capital strategy 2025/26 to 2034/35 which is contained in Appendix 1 of the report of the Head of Finance to Cabinet.

(b)  agree the strategy for flexible use of capital receipts which is contained as annex A of the capital strategy.

To consider the report from the head of finance.

The Leader of the council introduced the revenue budget for 2025/26 and the capital programme for 2025/26 to 2029/30. The report would be considered by the scrutiny committee on the 4 February and then the council would consider the budget at the meeting on 13 February 2025.

Cabinet were informed that during the period in which the budget had been worked on, the government had published its Devolution White Paper. However, with no definite timeline for reorganisation, the revenue budget, medium-term financial plan (MTFP), and capital programme had been prepared on the basis that the council continues to exist over the next five years.

During discussion, concerns were raised about the partial refund of National Insurance costs and the impact on outsourced contractors delivering public services.

Positive aspects of the budget were highlighted, including the funding for the housing delivery strategy, the community hub to support vulnerable residents, and the capital programme's grant scheme for community infrastructure projects. The importance of prudent financial planning and the need for proper local government funding from the national government were reiterated.

Cabinet expressed the importance on the council grant allowance. The budget will provide each ward member with an additional £2,500, which will be valuable in the next round of applications.

RECOMMENDED to Council on 13 February 2025 to:

(a)  set the revenue budget for 2025/26, as set out in Appendix A.1 to the head of finance’s report to Cabinet on 30 January 2025;

(b)  approve the capital programme for 2025/26 to 2029/30 as set out in Appendices D.1 and D.2 to the report, together with the capital programme changes as set out in Appendices D.3 and D.4 to the report;

(c)  set the council’s prudential limits as listed in Appendix E to the report;

(d)  set the medium-term financial plan to 2029/30 as set out in Appendix F to the report;

(e)  allocate £590,000 to fund the Communities Capital and Revenue grant scheme

RESOLVED: to agree that the head of finance, in consultation with the cabinet member for finance, may make minor adjustments to this report and the prudential indicators should they prove necessary prior to its submission to Council on 13 February 2025.

To consider the report from the head of finance.

The Cabinet member for Housing and Community Hub presented the report to enable the council to adopt an amended (reduced) empty duration before a LTEPP becomes applicable. The long-term empty property premium currently applies to properties that have remained unoccupied and unfurnished for a period of two years. Recent changes in legislation now allow the council to reduce this period to one year, providing an incentive for private landlords to bring properties back into use.

The change to the LTEPP would apply from April 2026, giving private landlords time to make necessary adjustments. A consultation was conducted, with 74% of respondents agreeing with the policy, 23% disagreeing, and 50% of those who disagreed falling into exempt categories.

Exemptions include:

• Class E: Dwellings that would be someone's sole or main residence if they were not residing in job-related Armed Forces accommodation.
• Class F: Annexes forming part of or being treated as part of a main dwelling.
• Class G: Dwellings being actively marketed for sale.
• Class H: Dwellings being actively marketed to be let.
• Class I: Unoccupied dwellings which fell within exempt Class F (deceased) where probate has recently been granted.
• Empty properties requiring or undergoing major repairs and structural alterations.

Cabinet noted that this change was part of a broader strategy to address homelessness, including building affordable homes and providing council-owned housing. Members acknowledged that this change was positive however, may not be robust enough to address properties that have been empty for many years.

RECOMMENDED to Council on 13 February 2025 that, with effect from 1 April 2026, the following amendments are made to the council’s long-term empty property premiums (LTEPP):

a)    to reduce the current empty property duration allowed, prior to a council tax LTEPP commencing, down from two years to one year. This change is provided for within the Levelling-up and Regeneration Act 2023

b)    to adopt all LTEPP exceptions laid out within the Council Tax (Prescribed Classes of Dwellings and Consequential Amendments) (England) Regulations 2024, published on 1 November 2024 (listed within the body of the report below).