Agenda, decisions and minutes

This meeting is to be webcast and the Chairman will read the following announcement:

“I would like to remind everyone that this meeting will be filmed live or recorded, and uploaded to the internet and will be capable of repeated viewing.

Therefore, by participating in this meeting, you are consenting to being filmed and to the possible use of those images and sound recordings.

If any public speakers on MS Teams do not wish to have their image captured, they should ensure that their video setting throughout the meeting is turned off and set to audio only.

Members and public speakersare reminded to turn on their microphones before speaking and turn them off when they have finished.”

The Leader of Council made a short address to remind everyone present that the meeting would be broadcast live to the internet, and would be capable of repeated viewing, which could infringe their human and data protection rights.

To declare interests in any item on this agenda.

Pursuant to the Council’s Members’ Code of Conduct, Councillor R Bassett declared an interest in the Acquisition of the Multi Storey Car Park and Qualis Business Plan and Financial Update items of the agenda by virtue of being Chairman of the Qualis Board and would remain in the meeting.

To confirm the minutes of the meeting of the Cabinet held on 9 December 2024.

That the minutes of the Cabinet meeting held on 9 December 2024 be taken as read and signed by the Leader as a correct record.

Decision:

That the minutes of the Cabinet meeting held on 9 December 2024 be taken as read and signed by the Leader as a correct record.

To receive oral reports from Portfolio Holders on current issues concerning their Portfolios, which are not covered elsewhere on this agenda.

There were no verbal reports made by Members of the Cabinet on current issues affecting their areas of responsibility.

To receive any questions submitted by members of the public and any requests to address the Cabinet.

(a)        Public Questions

To answer questions asked by members of the public after notice in accordance with the provisions contained within Part 4 of the Constitution (Council Rules, Rule Q3) on any matter in relation to which the Cabinet has powers or duties or which affects the District.

(b)        Requests to Address the Cabinet

Any member of the public or a representative of another organisation may address the Cabinet on any agenda item (except those dealt with in private session as exempt or confidential business) due to be considered at the meeting, in accordance with the provisions contained within Article 7 of the Constitution (The Executive, Paragraphs 27 and 28).

The Cabinet noted that no public questions or requests to address the Cabinet had been received for consideration at the meeting.

To consider any matters of concern to the Cabinet arising from the Council’s Overview and Scrutiny function and to identify any matters that the Cabinet would like the Overview and Scrutiny Committee to examine as part of its work programme.

(a)            Overview and Scrutiny Committee

The Chairman (Councillor R Baldwin) provided the following report.

·         An overview of the budget options for 2025/26 was presented to members on 10 December 2024. Members acknowledged the financial constraints, difficult decisions to be made and provided input on the options available. There would be a further opportunity to scrutinise the draft budget proposals at the next meeting on 28 January 2025/26. This scrutiny strengthened the budget process.

·         The written reply from Transport for London was included in the minutes of 29 October meeting and also published in the Council Bulletin of 20 December for members.

·         Additional committee meetings would be organised later in the year for the Youth Council to attend and for the scrutiny of any other business.

(b)            Draft budget proposals 2025/26

The Leader asked the Finance & Economic Development Portfolio Holder to provide an update on the progress of the 2025/26 draft budget. Councillor H Whitbread apologised as the draft budget proposals were due to be considered at this meeting, but various changes meant this had been difficult to do in time. Therefore, a joint meeting of the Cabinet and the Overview and Scrutiny Committee would be held on 28 January 2025 subject to Councillor Baldwin’s agreement. The potential reorganisation of local government could change how the Council viewed the budget in future. This was an extremely challenging budget. The government settlement in December was less than anticipated. Other issues included the creation of the Council’s new waste services and other services previously discussed at meetings, as well as the projected budget gap of £1 million in October. By working with the Overview and Scrutiny Committee in December £1.5 million of savings had been proposed. However, additional constraints on next year’s finances included the 2.99% tax rise, employers national insurance increase and charities having a taxable status, so they no longer pay business rates to the Council. The Portfolio Holder welcomed further scrutiny input before the draft budget would be considered by the Cabinet on 3 February.

In reply to Councillor S Murray’s query on the impact of the probable reorganisation of local government certainly on future budgets but also this year’s budget, the Portfolio Holder clarified there would likely be some impact on this year’s budget, for example on the Transformation budget, and definitely future budgets.

In reply to Councillor Jon Whitehouse’s query on how the Cabinet could take a decision on agreeing an extra budget for a report later in the agenda, the Leader (Councillor C Whitbread) advised this would be discussed at that point in the meeting.

The Leader advised that a further discussion on the budget was be held at the joint Cabinet and Overview and Scrutiny Committee meeting on 28 January, subject to Councillor Baldwin’s agreement.

(Transformation Portfolio Holder – Cllr S Patel) To recommend the Pay Policy Statement to Council, subject to any amendments or suggestions.

That the Cabinet recommended the Pay Policy Statement to Council.

The Corporate Services Director (P Maginnis) introduced the report stating it was a statutory requirement that every year the factual Pay Policy Statement was agreed by members and published on the Council website by March.

Councillor Jon Whitehouse asked why the Pay Policy Statement omitted data on TVS and Qualis staff? The director replied it was because the statement covered paid employees of the Council, but she would check with colleagues at Colchester City Council, which had several wholly own companies. The Leader commented this was probably standard practice. The Strategic Director & 151 Officer (A Small) remarked that the statement only covered Council employees salary information and not the pay of those employed by Qualis and TVC.

The report set out the options considered, if any, and the reasons for the recommendation and the decision.

            Decision:

            That the Cabinet recommended the Pay Policy Statement to Council.

Post meeting update:

The Corporate Services Director clarified that for the Council’s wholly owned companies, TVS and Qualis, salary information was not included in the Council's Pay Policy Statement, as they were not employees of the Council, and that Colchester City Council also did this for the same reason.

Section 100B(4)(b) of the Local Government Act 1972, together with paragraphs 6 and 24 of the Council Procedure Rules contained in the Constitution requires that the permission of the Chairman be obtained, after prior notice to the Chief Executive, before urgent business not specified in the agenda (including a supplementary agenda of which the statutory period of notice has been given) may be transacted.

In accordance with Operational Standing Order 6 (non-executive bodies), any item raised by a non-member shall require the support of a member of the Committee concerned and the Chairman of that Committee.  Two weeks' notice of non-urgent items is required.

This item was moved down at the meeting when it was noted that the following late reports below had been published for consideration by the Cabinet.

(a)            Acquisition of Cottis Lane Multi Storey Car Park (agenda item (11); and

(b)            Qualis Business Plan and Financial Update (confidential) (agenda item 12).

This item was moved down at the meeting when it was noted that the following late reports below had been published for consideration by the Cabinet.

(a)            Acquisition of Cottis Lane Multi Storey Car Park (agenda item (11); and

(b)            Qualis Business Plan and Financial Update (confidential, agenda item (12)).

(Commercial & Estates Portfolio Holder – Cllr T Matthews) To agree to the acquisition of Cottis Lane Car Park from Qualis at the cost to construct.

(1)           That the Cabinet agreed to the acquisition of Cottis Lane Car Park from Qualis at the cost to construct; and

(2)        That the Cabinet included this within its budget proposals and spending plans for 2025/26 ensuring revenue budgetary provision to enable this.

The Commercial & Estates Portfolio Holder (Cllr T Matthews) introduced the report. The recommendations were for the Cabinet to agree the business acquisition of the multi storey car park and to include this within the budget for 2025/26 ensuring the budgetary provision to enable this. The car park was built by Qualis at the Council’s request to provide parking for the High Street and the new leisure centre being constructed. It was always intended that ownership would be taken back by the Council afterwards, as it was a major provider of public parking provision in the District. This was a straightforward acquisition in contrast to the remarks being circulated on social media and that there was no excuse for such rhetoric. Decisions should be made in the correct forum at a Cabinet meeting. It was also important to understand the synergy between Qualis and the Council as they were intrinsically linked.

The Finance & Economic Development Portfolio Holder remarked that the Council had to do this financially for Qualis. Although not an easy decision, it had benefits for the Council in taking over the control of operating the car park but recognised that Qualis had been proactive on other issues that had occurred, such as anti-social behaviour (ASB). However, the Portfolio Holder was appalled by the online toxicity of the debate on this and threats of violence to herself and those being made directly to family members not involved with the Council, which was disgraceful. Councillor H Whitbread voiced concern that in her opinion the remarks made by Councillor R Sharif, who was also a ward colleague, had only added to that toxicity, so she had since reported that councillor to the Monitoring Officer.

In reply to questions the Portfolio Holder, other Cabinet members and officers gave the following responses .

·         If the acquisition was not determined at this meeting the potential increases could lead to a budget gap of £2 million before mitigations.

·         This acquisition was to do with timing and cashflow, so the Council was run in the most efficient way and achieved value for money. Moving the purchase forward and into the budget would ensure it was affordable, which was the most sensible option. The Council could proactively control any ASB issues. In building the leisure centre, having the multi storey car park by merging two car parks into one, and including the land adjacent to the car park – this was a valuable asset for the Council and provided a better return for residents. The cost of construction had left a deficit which Qualis was paying interest on and accumulating a loss. EFDC should not be benefitting from interest payments from Qualis but rather recognise the benefit of the asset under Council ownership, so this was the issue to be resolved. What was happening to Qualis was affecting every major developer and was not a specific problem to EFDC. There was an interdependency between the finances of Qualis and EFDC.

·         This acquisition was the movement of an asset  ...  view the full minutes text for item 87.

Exclusion

To consider whether, under Section 100(A)(4) of the Local Government Act 1972, the public and press should be excluded from the meeting for the items of business set out below on grounds that they will involve the likely disclosure of exempt information as defined in the following paragraph(s) of Part 1 of Schedule 12A of the Act (as amended) or are confidential under Section 100(A)(2):

The Local Government (Access to Information) (Variation) Order 2006, which came into effect on 1 March 2006, requires the Council to consider whether maintaining the exemption listed above outweighs the potential public interest in disclosing the information. Any member who considers that this test should be applied to any currently exempted matter on this agenda should contact the proper officer at least 24 hours prior to the meeting.

Background Papers

Article 17 of the Constitution (Access to Information) define background papers as being documents relating to the subject matter of the report which in the Proper Officer's opinion:

(a)        disclose any facts or matters on which the report or an important part of the report is based;  and

(b)        have been relied on to a material extent in preparing the report and does not include published works or those which disclose exempt or confidential information and in respect of executive reports, the advice of any political advisor.

The Council will make available for public inspection one copy of each of the documents on the list of background papers for four years after the date of the meeting. Inspection of background papers can be arranged by contacting either the Responsible Officer or the Democratic Services Officer for the particular item.

This item was moved down at the meeting when the Cabinet agreed that under Section 100(A)(4) of the Local Government Act 1972, the public and press be excluded from the meeting for the item of business set out below on grounds that they would involve the likely disclosure of exempt information as defined in the following paragraph(s) of Part 1 of Schedule 12A of the Act (as amended) or are confidential under Section 100(A)(2):

This item was moved down at the meeting when the Cabinet agreed that under Section 100(A)(4) of the Local Government Act 1972, the public and press be excluded from the meeting for the item of business set out below on grounds that they would involve the likely disclosure of exempt information as defined in the following paragraph(s) of Part 1 of Schedule 12A of the Act (as amended) or are confidential under Section 100(A)(2):

(Commercial & Estates Portfolio – Cllr T Matthews) To agree, in its capacity as Shareholder, to the Updated Qualis Business Plan (attached as Appendix A) as the basis for its operations until the next Business Plan Review, subject to any comments received by Overview and Scrutiny Committee.

That the Cabinet agreed, in its capacity as Shareholder, to the Updated Qualis Business Plan (Appendix A of the report) as the basis for its operations until the next Business Plan Review, subject to any comments received by the Overview and Scrutiny Committee.

The Commercial & Estates Portfolio Holder (Cllr T Matthews) introduced the report, which was confidential, and considered by the Cabinet in private session.

The report set out the options considered, if any, and the reasons for the recommendation and the decision.

            Decision:

            That the Cabinet agreed, in its capacity as Shareholder, to the Updated Qualis Business Plan (Appendix A of the report) as the basis for its operations until the next Business Plan Review, subject to any comments received by the Overview and Scrutiny Committee.