Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 3 December 2012

The Minutes (copies of which had been circulated) of the meeting held on 3 December 2012 were approved as a correct record and signed by the Chair.

Councillors and officers were invited to declare any interests they had in any of the items for the meeting.

The following interest was declared:-

Personal Interest

There were no items to consider.

To consider a Joint report of the Chief Executive and Monitoring Officer.

A number of legislative changes around health and council tax support requiring the Council to amend its constitution in anticipation of the new requirements coming into effect from 1 April 2013. These are connected to

•           The establishment of a Health and Wellbeing Board

•           The transfer of Public Health functions to local authorities

•           The new Council Tax Discount and Support Scheme

This report details the recommendations of the Constitution Working Party on 23 January 2013. The reports detailing the proposed changes required for each of these themes are included elsewhere on the agenda for this meeting.

At the last Council Meeting on 20 December 2012, the proposed changes to the Council Meeting Procedure Rules and the Access to Information Rules (the later in response to new Executive Regulations) were deferred for further consideration by the Constitution Working Party. The Working Party considered these changes at its meeting on 23 January 2013 and has proposed some further minor amendments which are set out in this report

The Scrutiny Committee is asked torecommend that the changes detailed in the reports be adopted by the Council Meeting.

Officer contact Craig Ainsworth on telephone number 0161 474 3204 or alternatively email craig.ainsworth@stockport.gov.uk.

(NOTE: The Chair was of the opinion that this item, although not included on the agenda, should be considered as a matter of urgency in accordance with Section 100B(4)(b) of the Local Government Act 1972 to enable the comments of the Constitution Working Party to be considered prior to the report being considered by the Council Meeting on 14 February 2013.)

A joint report of the Chief Executive and Monitoring Officer was submitted (copies of which had been circulated) detailing the recommendations of the Constitution Working Party held on 23 January 2013 in relation to the following reports which were included elsewhere on the agenda for this meeting.

•           The establishment of a Health and Wellbeing Board

•           The transfer of Public Health functions to local authorities

•           The new Council Tax Discount and Support Scheme

At the last Council Meeting on 20 December 2012, the proposed changes to the Council Meeting Procedure Rules and the Access to Information Rules (the latter in response to new Executive Regulations) which had previously been considered by this Scrutiny Committee were deferred for further consideration by the Constitution Working Party. The Working Party had considered these changes at its meeting on 23 January 2013 and had proposed some further minor amendments which were set out in this report

RESOLVED – That the Council Meeting be recommend to adopt the changes detailed in the report as recommended by the Constitution Working Party.

To consider a report of the Service Director (Legal & Democratic Services)

This report considers the governance arrangements for the Health & Wellbeing Board after 1 April 2013, including resultant changes to the Council’s Constitution.

The comments of the Constitution Working Party to be held on 23 January 2013 will be circulated prior to the meeting.

The Scrutiny Committee is invited to consider the draft Article, the recommendations of the Shadow Health & Wellbeing Board and to recommend to the Council Meeting that the Article be adopted for inclusion in the Council’s Constitution and to delegate to the Council’s Monitoring Officer, in consultation with Group Leaders and the Chair of the Clinical Commissioning Group, the authority to make any necessary alterations to the Article that may arise as a result of forthcoming regulations.

Officer Contact: Jonathan Vali on 0161 474 3201 or e mail: jonathan.vali@stockport.gov.uk

The Service Director (Legal & Democratic Services) submitted a report (copies of which had been circulated) considering the governance arrangements for the Health & Wellbeing Board after 1 April 2013, including resultant changes to the Council’s Constitution.

It was reported that the Constitution Working Party on 23 January 2013 had considered the draft Article and recommend that the Article be adopted for inclusion in the Council’s Constitution and to delegate to the Council’s Monitoring Officer, in consultation with the Leader of the Council and the Chair of the Clinical Commissioning Group, the authority to make any necessary alterations to the Article that may arise as a result of forthcoming regulations.

The Working Party had also favoured the appointment of four Councillors to the Health and Wellbeing Board (one from each of political group) but supported this number not being enshrined within the Constitution. They suggested that the governance arrangements for the Board be reviewed in 12 months.

RESOLVED – That the recommendation of the Constitution Working Party be endorsed.

To consider a report of the Service Director (Strategy & Performance)

The Health and Social Care Act 2012 transfers responsibility for public health from the NHS to local authorities and specifies a number of statutory responsibilities and governance arrangements which need to be reflected in the Council’s Constitution.

The comments of the Constitution Working Party to be held on 23 January 2013 will be circulated prior to the meeting.

The Scrutiny Committee is asked to consider the changes to the Council’s Constitution which will be required to reflect the changes introduced by the Health and Social Care Act 2012, in particular:-

·         the Council’s new statutory responsibilities in relation to public health;

·         the role and responsibilities of the Director of Public Health as part of the Council’s management/governance structure

·         the implications of the above changes for the remit of the Health Scrutiny Committee and Stockport Partnership.

Officer contact: Donna Sager on 0161 474 3928 or e mail: donna.sager@stockport.gov.uk

A report of the Service Director (Strategy & Performance) was submitted (copies of which had been circulated) reminding the Scrutiny Committee that the Health and Social Care Act 2012 transferred responsibility for public health from the NHS to local authorities and specified a number of statutory responsibilities and governance arrangements which needed to be reflected in the Council’s Constitution.

It was reported that the Constitution Working Party on 23 January 2013 had considered the changes to the Council’s Constitution which would be required to reflect the changes introduced by the Health and Social Care Act 2012, in particular:-

·         the Council’s new statutory responsibilities in relation to public health;

·         the role and responsibilities of the Director of Public Health as part of the Council’s management/governance structure

·         the implications of the above changes for the remit of the Health Scrutiny Committee and Stockport Partnership.

and had recommended the proposed changes to the Scheme of Delegation be approved.

It was suggested that the Annual Report of the Director of Public Health should not be produced as a paper document but instead should be available on the Council website linking to the health information on ‘MyStockport’.

RESOLVED – That the recommendation of the Constitution Working Party be endorsed.

To consider a report of the Corporate Director for Corporate and Support Services.

The report details proposals to amend the Constitution to delegate powers to determine applications for local Council Tax discounts in the light of changes being introduced in April 2013 to replace Council Tax Benefit with Council Tax Support.

The Scrutiny Committee is recommended to comment upon the proposals to amend ‘PR3 Scheme of Delegation’ - General Delegation to all Directors, to the Corporate Director for Corporate and Support Services of the Constitution be revised as detailed in this report.

Officer contact: Alison Blount on 474 5107 or email alison.blount@stockport.gov.uk

(NOTE: The Chair was of the opinion that this item, although not included on the agenda, should be considered as a matter of urgency in accordance with Section 100B(4)(b) of the Local Government Act 1972 in order that the amendment to the Constitution could be approved by the Council Meeting prior to the introduction of Council Tax Support in April 2013.)

The Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) detailing proposals to amend the Constitution to delegate powers to determine applications for local Council Tax discounts in the light of changes being introduced in April 2013 to replace Council Tax Benefit with Council Tax Support.

It was reported that the Constitution Working Party on 23 January 2013 had recommended that ‘PR3 Scheme of Delegation’ - General Delegation to all Directors be amended as follows:

“7. To be responsible for the collection and recovery of all Council Tax, National Non-Domestic Rates, residual Community Charge monies, and Housing Rents, and to determine applications for discretionary non-domestic rate relief and Council Tax discounts in accordance with the policy adopted by the Executive.”

RESOLVED – That the recommendation of the Constitution Working Party be endorsed.

To consider a Joint Report of the Corporate Director for Corporate and Support Services and the Service Director (Place Development).

The report provides the Scrutiny Committee with the opportunity to comment on an illustrative Housing Revenue Account (HRA) Budget.  The Executive will be meeting on 4 February to recommend to Council an HRA budget for 2013/14, including the level of rent and service charges.  The illustrative budget is based on a number of key assumptions set out in the report regarding income from rent and service charges; expenditure commitments contained within the HRA 30 year Business Plan and Asset Management Strategy and indicative spending requirements to support inflationary pressures and identified investment priorities.

The comments of the Adults and Communities Scrutiny Committee to be held on 21 January 2013 will be circulated prior to the meeting.

The Scrutiny Committee is recommended to comment on the report and the illustrative HRA Budget for 2013/14. 

Officer contact: Michael Cullen on 474 4631 or email: michael.cullen@stockport.gov.uk

A joint report of the Corporate Director for Corporate and Support Services and  the Service Director (Place Development) was submitted (copies of which had been circulated) providing the Scrutiny Committee with the opportunity to comment on an illustrative Housing Revenue Account (HRA) Budget. 

It was reported that the Executive would be meeting on 4 February 2012 to recommend to the Council Meeting an HRA budget for 2013/14, including the level of rent and service charges.  The illustrative budget was based on a number of key assumptions set out in the report regarding income from rent and service charges; expenditure commitments contained within the HRA 30 year Business Plan and Asset Management Strategy and indicative spending requirements to support inflationary pressures and identified investment priorities.

It was reported that the Adults and Communities Scrutiny Committee on 21 January 2013 had noted the report and the comments made/ issues raised by that committee (copies of which had been circulated) were also considered.

The following comments were made/ issues raised:-

·         The potential for loss of income if the collection rates reduced from 99% to the rate of those authorities piloting the Universal Credit (92%)

·         Concern was expressed at the potential demand on the Discretionary Housing Payments. It was explained that Stockport Homes acknowledged that the fund may be insufficient and were looking at other initiatives to assist tenants.

·         It was noted that approximately 8% of tenants had been consulted on the HRA Rent Strategy for 2012-2017 and the consultation was targeted at tenants who had previously expressed a wish to be involved in decision making regarding rent increases and the setting of Stockport Homes budget.

·         Reference was made to the increase in bad debt provision from £250,000 in 2012/13 to £500,000 in 2013/14 in response to the impact of the Welfare Reform Agenda.

RESOLVED – (1) That the report be noted.

(2) That a briefing note on the Local Digital Inclusion Strategy be provided to members of the Scrutiny Committee explaining how Stockport Homes is promoting the benefits of digital media and supporting inclusion.

To consider a report of the Corporate Director of Corporate and Support Services.

The report invites the Scrutiny Committee to consider the current entitled to relief on the Non-Domestic Rates (NDR) payable by certain occupiers of Non-Domestic properties following the introduction of retained Business Rates from 1 April 2013 will have a major impact on the funding of both Mandatory and Discretionary Rate Relief.

The Scrutiny Committee is asked to comment on the potential make- up of the Council’s DRR scheme prior to recommendations being made to the Executive at its meeting on 18 February. In particular the suggestions that:

·         For CASC’s - the criteria at Appendix 1to be retained and the existing scheme of 20% ‘Top-Up’ continue.

·         For Not for Profit Organisations - that any organisation which fulfils the relevant criteria at Appendix 2 should receive a 50% Discretionary Rate Relief.

·         For Village Shops - that they become part of Stockport’s Local Discount Scheme

·         That consideration be given to, where possible,  converting appropriate future  awards made through the Main Grant Scheme into a local Business Rates Discount either as a stand-alone discount or as a top-up to an existing discount , such as the mandatory discount for charities.   

·         Consideration is given to a local discount scheme being developed in consultation with the local business community to propose an affordable scheme which could offer rate relief where it can be demonstrated that such an award would support the councils strategic priorities and brings long term economic benefit to the Borough, and that consultation be undertaken with the business community.

Officer contact, Alison Blount, Head of Revenues & Benefits, telephone number 0161 474 5107, email Alison.blount@stockport.gov.uk

The Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) inviting the Scrutiny Committee to consider the current entitlement to relief on the Non-Domestic Rates (NDR) payable by certain occupiers of Non-Domestic properties following the introduction of retained Business Rates from 1 April 2013 which would have a major impact on the funding of both Mandatory and Discretionary Rate Relief.

The following comments were made/ issues raised:-

·         Members of the Scrutiny Committee requested further information regarding how the Main Grants Scheme operated to enable them to comment on whether replacing future awards under the Main Grants Scheme with local Business Rates discount of the same value should be supported.

·         The Criteria for ‘Discretionary Rate Relief for Community Amateur Sports Clubs’ (Appendix 1) was mandatory and therefore  a requirement that at least 51% of the membership must be made up of Stockport residents could not be included as it had for ‘Discretionary Rate Relief for Community Amateur Sports Clubs’.

·         It was noted that there was no intention to replace the Main Grants Scheme which also provided grants to organisations without premises.

·         Where community premises were occupied by multiple users, it was noted that it was the circumstances of the ‘beneficial occupier’ that determined the eligibility for discretionary rate relief.

·         That initiatives to encourage the growth of local business be welcomed.

·         The Scrutiny Committee noted the definition of a “Village Shop”.

RESOLVED – (1) That for ‘Discretionary Rate Relief for Community Amateur Sports Clubs’ the Executive be recommended to retain the existing criteria set out in Appendix 1 of the report and that the existing scheme of 20% ‘Top-Up’ should continue.

(2) That for ‘Not for Profit Organisations’ the Executive be recommended to agree that any organisation which fulfils the relevant criteria as set out in Appendix 2 of the report should receive a 50% Discretionary Rate Relief.

(3) That in relation to ‘Village Shops’ the Executive be recommended that these should be included within Stockport’s Local Discount Scheme.

(4) That this Scrutiny Committee would support further consideration being given to, where possible, converting appropriate future  awards made through the Main Grant Scheme into a local Business Rates Discount either as a stand-alone discount or as a top-up to an existing discount, such as the mandatory discount for charities.

(5) That this Scrutiny Committee would support further consideration being given to a local discount scheme being developed in consultation with the local business community to propose an affordable scheme which could offer rate relief where it can be demonstrated that such an award would support the council’s strategic priorities and briought long term economic benefit to the Borough, and that consultation be undertaken with the business community.

(6) That Members of this Scrutiny Committee be provided with further information regarding how the Main Grants Scheme operated.

To consider a report of the Scrutiny Review Panel.

The report provides the Scrutiny Committee with the opportunity to comment on the Scrutiny Review into “Making best use of the Council's new Local Information System" conducted during the 2012-2013 municipal year prior to its submission to the Executive.

Councillor Philip Harding, Lead Councillor for the Review will present the report.

The Scrutiny Committee is requested to comment on the report.

Officer contact: Holly Rae, Telephone number 0161 474 3014, email  holly.rae@stockport.gov.uk

The Lead Member of the Scrutiny Review Panel (Councillor Philip Harding) submitted the final report (copies of which had been circulated) setting out the findings of the Scrutiny Review on "Making best use of the Council's new Local Information System".

RESOLVED – That the final report and recommendations of the Scrutiny Review Panel - "Making best use of the Council's new Local Information System" be referred to the Executive for consideration.

To consider a report of the Partnership & Policy Manager

The Scrutiny Committee is recommended to note the résumé of the meeting of the Stockport Partnership Board held on 12 December 2012.

Officer contact: Steve Skelton, Policy & Partnership Manager Tel 474 3174; email steve.skelton@stockport.gov.uk

The Scrutiny Committee considered a résumé (copies of which had been circulated) of the meeting of the Stockport Partnership Board held on 10 December 2012.

RESOLVED – That the résumé of the meeting of the Stockport Partnership Board held on 10 December 2012 be noted.

To consider a report of the Corporate Director for Corporate and Support Services.

The report outlines the requirement for all employers to comply with new pension duties which have been introduced in stages from October 2012.  If no deferment decision is taken, the Council’s significant staging date will be 1 April 2013.  Whilst the new regulations are mandatory, employers have some flexibility regarding their implementation.  This report outlines the principles of the regulations and the key decisions to be made. It recommends the options to use Transitional Delay and Postponement of Auto Enrolment to defer its implementation for the majority of the Council’s workforce.

The Scrutiny Committee is recommended to comment on the proposed use of Transitional Delay and Postponement in combination to provide the most cost effective means for the Council to secure compliance with auto enrolment and recommend approval of this approach to the Council.

Officer contact: Laureen Donnan on 474 3180 or email: laureen.donnan@stockport.gov.uk

(NOTE: The Chair was of the opinion that this item, although not included on the agenda, should be considered as a matter of urgency in accordance with Section 100B(4)(b) of the Local Government Act 1972 in order that this Scrutiny Committee could consider the proposals prior to the Council Meeting on 14 February 2013.)

The Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) setting out the requirement for all employers to comply with new pension duties which had been introduced in stages from October 2012.  If no deferment decision was taken, the Council’s significant staging date would be 1 April 2013.  Whilst the new regulations were mandatory, employers had some flexibility regarding their implementation.  The report outlined the principles of the regulations and the key decisions to be made. It recommended the options to use Transitional Delay and Postponement of Auto Enrolment to defer its implementation for the majority of the Council’s workforce.

The following comments were made/ issues raised:-

·         The Scrutiny Committee noted that, once risk assessed, provision would need to be made within the 2013/14 budget proposals in relation to the costs associated with Pension Auto-Enrolment.

·         The potential financial implications in relation to schools as shown within the table in the report would be met from the Dedicated Schools Grant.

·         Clarification was sought as to why Stockport Academy was not shown within Appendix 1 of the report.

RESOLVED - (1) That the proposed use of Transitional Delay and Postponement in combination to provide the most cost effective means for the Council to secure compliance with auto enrolment be noted.

(2) That the Corporate Director for Corporate and Support Services be requested to provide members of this Scrutiny Committee with clarification as to why Stockport Academy was not shown within Appendix 1 of the report.

To consider a report of the Democratic Services Manager.               

The report sets out planned agenda items for the next meeting of the Committee and Forward Plan items that fall within its remit.

The Scrutiny Committee is invited to consider the information in the report and put forward any agenda items for future meetings.

Officer contact: Craig Ainsworth, Democratic Services Manager, telephone number 474 3204, email: craig.ainsworth@stockport.gov.uk

The Democratic Services Manager submitted a report (copies of which had been circulated) setting out the planned items for the Scrutiny Committee’s future meetings and Forward Plan items which fell within the remit of the Scrutiny Committee.

RESOLVED – That the report be noted.