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The Assistant Chief Executive submitted a report a copy of which had been circulated to each Member.
Councillor Laws attended and, with the consent of the Chairman, addressed the Cabinet to express his disappointment that the Roman Walls would not be lit. It was important that Colchester promoted its heritage, which was its greatest asset. Given that the Council had given money to community groups, there was funding available. If the Museum Resource Centre was to be sold, he hoped that the funds would be reinvested into heritage and that some artefacts would be retained in Colchester.
Cabinet received a presentation from Karen Loweman, Director of Housing, Colchester Borough Homes, on the demand for housing in Colchester. This addressed the levels of housing demand and homelessness in Colchester. She explained the approaches taken to prevent homelessness and the impact of living in temporary accommodation. The challenges faced by homeless families in setting up a new home were highlighted together with the help the Council provided to families. In particular the help that the rent deposit guarantee scheme and new start home scheme would provide to vulnerable families was emphasised.
Councillor Smith, Leader of the Council and Portfolio Holder for Strategy, thanked Karen for the presentation. He highlighted that there were 267 children in temporary accommodation in Colchester and that at current rates it would take 6 years to clear the housing waiting list. Only limited new social housing units would become available and the Council could no longer build housing itself. There was increased homelessness from the private rented sector, resulting from landlords no longer being able to afford their mortgages. The proposals in the report would allocate funding to help address homelessness, together with other priorities such as the town centre, businesses and the voluntary sector.
Councillor Cory, Portfolio Holder for Resources, presented the report to the Cabinet. The proposals in the report allocated funds to key priorities. In terms of the Roman Walls, the administration had invested heavily in the walls to maintain them to a high standard. The estimated cost of lighting the walls was £250,000. Funds were being allocated to projects such as the rent deposit scheme and the home start up scheme which would ameliorate the impact of government policies. It was proposed to “apply to accept” the proposed 4 year funding settlement. Whilst this meant that by 2019/20, the Council would be providing funding back to the Government, it was likely that if it was not accepted, then a more draconian settlement would be imposed. Overall the proposals contained in the report were prudent and would help the administration support vulnerable residents and community groups.
Councillor Bourne, Portfolio Holder of Housing and Public Protection, explained that the Council was under a duty to help those who were homeless or were threatened with becoming homeless. This was particularly difficult at present was difficult as there was little movement in the housing market band and therefore there were comparatively few properties available. Placing families in temporary accommodation removed them from their support networks, such as schools, families, GPs and transport links and therefore the Council pursued alternative options where possible. The proposal to fund a rent deposit scheme would allow a number of vulnerable families to move into the private rented sector and the home start up scheme would help rehoused families on low incomes acquire essential furnishing and appliances without resorting to high street loans at high interest. These schemes would make a huge difference to families in need.
Councillor T. Young, Portfolio Holder for Culture and Regeneration explained that whilst the administration would like to light up the Roman Walls, it had invested in improving and maintaining the walls, there were more important priorities that required funding. As well as the important funding towards addressing homelessness, £40,000 had been allocated to fund events in and around the town centre which would deliver economic benefit, increase tourism and boost the town centre. Councillor Annie Feltham, Portfolio Holder for Business, Leisure and Opportunities, highlighted the £100,000 provided for grant funding which would enable residents to support their local communities.
RESOLVED that:-
(a)
Funding be reallocated as set out in paragraphs 5.3 and 5.4 of the Assistant Chief Executive’s report.
(b)
The updated 2017/18 budget forecast as set out at paragraph 6.2 showing a current gap of £625k and the progress made to identify savings to assist with the delivery of the budget strategy be noted.
(c)
To “apply to accept” the Government’s 4 year funding settlement with the publication of a required efficiency statement delegated to the Assistant Chief Executive in consultation with the Portfolio Holder for Resources.
(d)
It be noted that it is assumed that the Essex business rates pool will continue in 2017/18 and that an updated position will be reported to the next Cabinet meeting.
(e)
The Assistant Chief Executive in consultation with the Portfolio Holder for Resources will reply to the Government consultation on 100% localisation of business rates.
(f)
The changes to the Treasury Management Strategy set out in section 8 of the Assistant Chief Executive’s report including the change to the MRP policy be agreed.
REASONS
The Council is required to approve a budget strategy and timetable in respect of the year 2017/18.
The Assistant Chief Executive’s report relates to the budget update, review of the current year’s budget allocations, the Government’s 4 year settlement offer and revisions to the treasury management strategy.
ALTERNATIVE OPTIONS
There are different options that could be considered and as the budget progresses changes and further proposals will be made and considered by Cabinet and in turn Full Council.
The Council could choose not to accept the Government’s 4 year settlement offer, however, this would not provide the certainty in respect of future funding and may result in lower grant funding in the coming three years.