Agenda and minutes

Apologies were received from Councillor Whitehead.

To receive any declarations of interest. Members are advised to consider the advice contained within the Declaration of Interest advice attached to this Agenda. If a Member declares an interest, they should complete the Declaration of Interest Form

To approve the summary of recommendations and decisions of the Cabinet meeting held on 19 December 2024, copy attached.

Councillor Everitt proposed, Councillor Keen seconded and Members agreed the minutes as a correct record of the meeting held on 19 December 2024.

Cabinet discussed the budget monitoring update report. This was the second budget monitoring report for the current year 2024-25. An overspend of just over £2.845m was being forecast against the General Fund revenue budget. £1.8m of this was in relation to Housing and homelessness and Housing Benefit There remained pressure on homelessness and it was very difficult to predict the overspend on this with any certainty due to the variation of the numbers in Temporary Accommodation, the cost of providers that were available to provide the required accommodation and the timing of HB recoveries. At the end of November 2024 there were approximately 300 households placed in Temporary Accommodation.

The Council continued to take steps in order to reduce its overall temporary accommodation spend including the successful development of Foy House in Margate, the acquisition of Truro Road and the Porchlight proposal to retain 41 units within the district. The Council was looking at all possible future opportunities to provide temporary accommodation to support vulnerable homeless and rough sleepers whilst reducing its overall budgetary impact. Other financial pressures were detailed in the report, but included additional agency staffing requirements in the waste and recycling service, as well as income shortfalls in a number of different areas.

The General Fund capital programme showed a substantial underspend. This is in part due to the phasing and timing of a number of grant funded projects, some of which will be reprofiled and slipped into later years of the programme. Cabinet was also pleased to report that the HRA was forecast to come in under budget by £48k. This would reduce the contribution required from HRA balances. There were also a number of budget adjustments that were detailed within the report that were recommended for Cabinet approval or referred to Council for approval. It was also worth noting that a significant number of the issues identified within the Cabinet report had been factored into the budget assumptions for the forthcoming year.

Councillor Rogers and Councillor Davis spoke under Council Procedure Rule 20.1.

Councillor Yates proposed, Councillor Albon seconded and Cabinet agreed the following:

1.  To note the following:

(i)  The General Fund revenue budget 2024/25 forecast position;

(ii)  The General Fund Capital Programme 2024/25 forecast position;

(iii)  The Housing Revenue Account position;

2.  To recommend to Council for approval the supplementary general fund budget as set out in section 5.2 of the Cabinet report;

3.  To recommend to Council for approval the supplementary capital budget, numbered (i), as set out in section 8.4 and Annex 1 to the Cabinet report;

4.  To approve the capital programme budget adjustments, numbered (i) to (v), as set out in section 8.5 and Annex 1 to the Cabinet report.

Cabinet discussed the Council Tax base proposal for the coming year. This was set by Thanet District Council and was used by Kent County Council, the Police and Crime Commissioner for Kent, Kent and Medway Fire and Rescue Authority and the various town and parish councils when setting their respective Council Tax and precepts. The Council was required to set its tax base by 31 January every year, for the following financial year. The tax base was defined in terms of the number of Band D equivalent properties, adjusted to reflect various discounts.

The main item of note in the report and something that had not been an issue in the past, was that of the impact on the Council Tax Reduction Scheme (CTRS) at para 11 to the Cabinet report. KCC funding had remained in place to date, and KCC had been consulted each time the Council sought to amend its CTRS. Funding currently amounted to approximately £203k per annum. Financial modelling showed that KCC received at least a 3:1 return on its investment, in terms of increased tax base and Council Tax yield. Indications were that KCC, due to budget pressures, was actively considering the cessation of this funding to all districts in Kent. This presented a challenge to the districts on different levels.

Most, if not all, of the districts in Kent used the KCC funding to pay for staff administering the CTRS and undertaking Council Tax activities aimed at maximising the tax base. Without the funding, the natural conclusion to this was that cost would need to be reduced. However, without changes to the CTRS or tax base maximisation activities, the work done by those staff was still required. In other words, this meant that the Council would still be doing the same work, but with less funding and less staff. This was not a realistic nor sustainable position. This remained under review until such time as the final decision was taken by KCC, with their Council meeting happening 13 February 2025.

Finally it was worth highlighting that approximately £70,000 of Hardship funding remained allocated to the Council’s Council Tax Discretionary Relief Fund. This fund was available to support some of the most vulnerable households to pay their council tax bills when they most needed the support, to help them pay their council tax bills, stay in their homes and avoid becoming homeless. For the year 2023/24, the Council had used this to directly help 40 residents who had faced extreme hardship and Cabinet was proud of the support this Council was providing in this regard in the middle of a cost of living crisis.

Overview and Scrutiny considered this report on the 21 January and made no further recommendations.

Councillor Rattigan spoke under Council Procedure Rule 20.1.

Councillor Yates proposed, Councillor Duckworth seconded and Cabinet agreed the following:

1.  That for the financial year 2025/26, the empty homes discount for properties unoccupied and unfurnished (‘Class C’ properties) remains at 0%, so that Council Tax will  ...  view the full minutes text for item 88.

Members discussed proposals for 2025/26 fees and charges. The report considered by Cabinet set out the proposed fees and charges that would subsequently be presented to Council on 27 February for approval. A review of fees and charges had been completed as part of the 2025/26 budget setting process. The review of fees and charges commenced in the early summer and proposed fees and charges were based on a broad 2% increase, which was expected to generate additional income of around £250k.

There was a proposal to enable £100k to be distributed to allow areas that were in a deficit to pause their budgets to avoid setting targets that were not achievable. Therefore overall, a net contribution of £150k had been factored into the budget as a result. This excluded items such as On Street Parking, Selective Licensing, and Housing HRA. The report summarised the main proposed changes to fees and charges, with the details set out in annex 1 to the Cabinet report.

Given the need to balance the budget, locally generated sources of income such as fees and charges remained as important as ever. It was important the Council organised itself and invested in ways that maximise that income, whilst balancing this with managing the impact on residents and service users. Cabinet were asked to consider the fees and charges and recommend the agreed charges to Council for approval.

The Cabinet Member for Corporate Services advised the meeting that of an error in the recommendations within the report and that Recommendation 1 should read:

1.  That Cabinet agree those fees and charges that relate to the Council’s statutory harbour authority function.

This was due to the fact that Full Council on 10 October 2024 agreed that Cabinet become not only the Harbour authority but be nominated the ‘Duty Holder’ also. This meant that the responsibility to approve statutory Port and Harbour dues would rest with Cabinet.

Following a recent Cabinet discussion, the Fees and Charges report needed to be updated with regards to Bulky Waste collection. Unfortunately, the system that was introduced last year resulted in average bulky waste collection costs being £11 on average for bulky waste collection, with some costs being lower than £11. Following a Cabinet discussion, proposals were now being forwarded for Bulky Waste collection of £28 for 1-3 items, and £36 items for 3-5 items. This would be updated and reflected in the next Fees and Charges report.

Councillor Yates proposed, Councillor Bright seconded and Cabinet agreed the following:

1.  That Cabinet agree those fees and charges that relate to the Council’s statutory harbour authority function;

2.  That Cabinet considers all of the fees and charges as set out in this report and agrees to make the recommendation to Council for approval as part of the main Budget Report.

Cabinet considered budget proposals for 2025/26 and the Cabinet Member for Corporate Services said that a full overview of the Budget with more item details would be provided at the meeting in February. The theme of the Council’s budget was again delivering a compassionate, progressive budget, focused on the services that residents were calling out for. As mentioned previously, Cabinet was extremely proud of the housing programme and the new Temporary Accommodation acquisition programme was detailed in Annex on the General Fund Capital programme 2025/26.

As part of the Council budget, Cabinet was proposing to invest an additional £1.1m of investment in key public services, such as graffiti clearance, street cleaning and refurbishment of local shelters. This year, Cabinet created a dedicated graffiti cleansing team and next year, Cabinet would like to invest a further £94,000 in this area to add a second team, in addition  further resources to co-ordinate the two teams’ activities.

Cabinet also proposed to expand the Street Scene team, with resources for extra staff to deliver improved services around littering, dog fouling, graffiti reporting, investigations, trade waste regulations and compliance and support to PSPO enforcement regimes. Cabinet would like to provide more resources into the cleansing service to drive improvements in the recycling rates, alongside more funding for tree planting and coastal cleansing.

Improvements to the public realm were a key focus for the administration. It was therefore pleasing that Cabinet had again been able to bring forward proposals that will benefit the whole district. Cabinet was eager to receive feedback from the Overview and Scrutiny Panel’s consideration and the public before finalising the budget at the end of February. Cabinet believed this Budget was delivering on the needs of residents in a progressive and compassionate manner.

Councillor Yates proposed, Councillor Albon seconded and Cabinet agreed the following:

1.  That the draft 2025/26 General Fund revenue budget be recommended to Council for approval, subject to consideration any recommendations arising from the Overview and Scrutiny Panel;

2.  That the 2025-29 General Fund capital programme be recommended to Council for approval, subject to consideration any recommendations arising from the Overview and Scrutiny Panel;

3.  That the Flexible use of Capital Receipts policy, as attached, be recommended to Council for approval;

4.  That Cabinet agree the council owned general fund temporary accommodation and HRA property to be charged at a social rent plus a Housing Benefit eligible service charge, except where an affordable rent is being charged, as laid out in section 2.9 to the Cabinet report.

Cabinet discussed proposals for the 2025/26 Housing Revenue Account (HRA) budget and associated capital programme. A review of the council’s HRA reserves for both revenue and capital was included in the proposals presented to the meeting. The proposals further set out the assumed housing rent increases to assist in funding the budget.

Next year’s HRA budget was underpinned by a 2.7% increase in rents next year, representing CPI (as at September) + 1%. The main part of these increases would be covered by increased benefit or Universal Credit payments to tenants. Based on the proposed increase across the whole stock the average rent would be £107.39 and this was an average increase of £5.28p per property per week. This rent increase was needed to continue to drive the HRA to a balanced and sustainable financial position, and also to finance the council’s ambitious house building programme and housing investment plan. Cabinet was pleased the proposed increases would ensure that there were no rents that would be above the Local Housing Allowance (LHA) rent.

Last year in consultation with the Portfolio Holder Cabinet created a Hardship fund and this would remain in place, seeing £30k being allocated to assist those tenants on a low income who may be struggling to meet the rent or associated service charges levied.

Councillor Yates proposed, Councillor Keen seconded and Cabinet agreed the following:

1.  That the HRA budget for 2025/26 be recommended to Council for approval, subject to the consideration of any recommendations arising from the Overview and Scrutiny Panel;

2.  That the revised Housing Revenue Account capital programme (Annex 1) for 2025-29 be recommended to Council for approval.

Cabinet considered proposals for the adoption of equality objectives for the Council. The setting of equality objectives was a legal requirement under the Equality Act and as part of the Public Sector Equality Duty the Council was required to prepare and publish Equality Objectives at least every 4 years. The Council was also required to publish equality information at least once a year to show the progress it had made towards meeting its equality objectives. The objectives support the delivery of the Council’s Equality, Diversity and Inclusion Policy and the delivery of the Corporate Plan, ensuring the Council’s priorities were delivered in a fair and inclusive way. The report recommended that Cabinet approve the following objectives:

  i.  Ensuring that equalities policies and procedures are applied consistently and sensitively across the Council;

  ii.  Ensure that the Council’s workforce, including senior leadership, are representative of the wider population and to report on how well the Council is achieving this;

  iii.  Ensuring services better meet the needs of our residents, with a focus on residents with protected characteristics, through feedback and using this as part of service improvement;

 iv.  Ensure that managers receive training to enable staff with protected characteristics, including those with “non-visible” disabilities, to be supported in their roles and develop their careers. Managers should also promote this understanding through their teams to allow those with disabilities to feel supported by all staff.

Members were asked to note the criteria by which it will assess the performance of Heads of Service and Directors in respect of meeting the Council’s equality objectives.

Councillor Keen proposed, Councillor Albon seconded and Cabinet agreed the following:

1.  The equality objectives set out in paragraph 4 of the Cabinet report and summarised below:

i.  Ensuring that equalities policies and procedures are applied consistently and sensitively across the Council;

ii.  Ensure that the Council’s workforce, including senior leadership, are representative of the wider population and to report on how well the Council is achieving this;

iii.  Ensuring services better meet the needs of our residents, with a focus on residents with protected characteristics, through feedback and using this as part of service improvement;

iv.  Ensure that managers receive training to enable staff with protected characteristics, including those with “non-visible” disabilities, to be supported in their roles and develop their careers. Managers should also promote this understanding through their teams to allow those with disabilities to feel supported by all staff;

2.  Note the criteria by which the performance in relation to meeting the objectives will be assessed across the Council.

Cabinet discussed proposals for the purchase of 12 section 106 homes from Guildcrest. Council approved an accelerated affordable housing development programme of at least 400 new homes, constructed or acquired, by 2027. Officers were working with Guildcrest to secure a deal regarding the S106 units on the site at Haine Road, as they had been unable to secure a Registered Provider. These homes were originally agreed to be part of the First Homes pilot as launched by the Government. However this scheme had been abolished and the homes identified needed to be delivered as Affordable Housing.

The capital cost for these 12 x section 106 affordable rent units (made up of 8 x 2-bed and 4 x 1-bed) was £2.28 million. An independent valuation had taken place and these units had been valued at £2.41m. Paragraph 7.1.4 to the Cabinet report showed that the proposed purchase would generate a cash flow deficit in year 1 of £18.35k with surpluses accumulating from year 12. It was proposed that the new homes be let in accordance with the council’s adopted allocations policy.

Councillor Bayford and Councillor Pugh spoke under Council Procedure Rule 20.1.

Councillor Everitt proposed, Councillor Albon seconded and Cabinet agreed the following:

1.  That the Council progresses with the acquisition of the 12 homes at an acquisition price of £2.28m subject to Cabinet approval;

2.  Note the wider context of the report.

Members considered the report whose main purpose was to inform Cabinet of the potential programme of works for Phase 3 of the Public Toilets Refurbishment and Renewal Project based on an anticipated budget of £400k being made available as part of the 2025/26 budget. Previously it had been confirmed to the Overview and Scrutiny Panel and Cabinet that all revenue works at the seven sites proposed in Phase 1 of this project had been completed at a lower cost than anticipated. The budget for these revenue works was £279,000 and the total spend was £186,000. A further two sites, Botany Bay public toilets in Broadstairs and Buenos Ayres public toilets in Margate received repairs in addition to the seven sites and were included in the £186,000 spend.

This left £93,000 of unspent revenue funds that were reallocated for Minnis Bay public toilets in Birchington and Victoria Gardens public toilets in Broadstairs as phase 2 of this project. Currently these works were being procured so that a suitable contractor could be contracted to complete these works. In addition the Council had made available £971k of capital funding towards new build accessible toilets. Officers were currently seeking planning permission for the toilets prior to undertaking the procurement and award of a contract for the capital works. These toilets were at Margate Subterranean toilets and Stone Bay, Broadstairs.

The final element of the project, Phase 3, was therefore to undertake revenue repairs at the remaining public toilet locations that had yet to have works undertaken. Annex 1 to the Cabinet report presents the detail of the locations and works suggested at each location. The total cost of these works was estimated to be £275k. In addition professional fees at £20k, compliance testing at £10k and a deep clean at £50k had been included in the cost estimate. A contingency of 10% or £35k, had been identified as appropriate for this project. This brings the total spend of Phase 3 to £390k.

Councillor Kup spoke under Council Procedure Rule 20.1.

Councillor Albon proposed, Councillor Keen seconded and Cabinet agreed the following:

1.  Notes that Full Council has to approve the budget required for the decision sought in this report;

2.  Subject to Full Council’s approval of the budget, agrees the schedule of works suggested in Appendix 1 of this report.

Cabinet discussed the treasury management report that the council was required to produce in accordance with the CIPFA Code of Practice on Treasury Management. The report covers the capital spending, financing plans and treasury strategy, backed by prudential indicators and limits. The report also presents for noting and comments the Council’s Minimum Revenue Provision Policy, capital strategy, investment strategy and non-treasury investments report for the next financial year.

Cabinet recommended the proposed Treasury Management Strategy, Minimum Revenue Provision Policy and Annual Investment Strategy (TMSS) for 2025/26 (and its annexes) to Council for approval.

Councillor Rogers and Councillor Davis spoke under Council Procedure Rule 20.1.

Councillor Yates proposed, Councillor Keen seconded and Cabinet agreed the following:

1.  That Cabinet notes, and makes comments on as appropriate, the proposed TMSS for 2025/26 (and its annexes), including each of the key elements listed below.

a.  The Capital Plans, Prudential Indicators and Limits for 2025/26 to 2027/28, including the Authorised Limit Prudential Indicator;

b.  The Minimum Revenue Provision (MRP) Policy;

c.  The Treasury Management Strategy for 2025/26 to 2027/28 and the Treasury Indicators;

d.  The Investment Strategy for 2025/26 contained in the Treasury Management Strategy, including the detailed criteria;

e.  The Capital Strategy for 2025/26;

f.  The Non-Treasury Investments Report for 2025/26.

2.  That Cabinet recommends the proposed TMSS for 2025/26 (and its annexes) to Council for approval.