Agenda and minutes

To provide an opportunity for Members and Officers to declare any disclosable pecuniary and non-pecuniary interests in any item on the agenda.

Councillor S Gardiner declared a non-pecuniary and non-prejudicial interest in relation to a number of properties referred to in the confidential appendix to a report on Acquisition and Disposal of Assets. He also made a declaration as Vice-Chair of the Strategic Planning Board on the basis that some of the properties referred to in the report may be the subject of future planning applications which would come before the Board.

Councillor S Holland declared a non-pecuniary and non-prejudicial interest in relation to a property referred to in the appendix to the Acquisition and Disposal of Assets report.

In accordance with paragraph 2.24 of the Committee Procedure Rules and Appendix on Public Speaking, set out in the Constitution, a total period of 15 minutes is allocated for members of the public to put questions to the Sub-Committee on any matter relating to this agenda. Each member of the public will be allowed up to two minutes to speak; the Chair will have discretion to vary this where they consider it appropriate.

Members of the public wishing to speak are required to provide notice of this at least three clear working days in advance of the meeting.

There were no public speakers.

To approve as a correct record the minutes of the meeting held on 2^nd March 2022.

RESOLVED

That the minutes of the meeting held on 2nd March 2022 be approved as a correct record.

To consider a report which reviews the consultation process for the Medium-Term Financial Strategy.

The Sub-Committee considered a report which reviewed the consultation process for the Medium-Term Financial Strategy, to identify what, with whom and when consultation should take place for the 2023/24 process. The report also sought approval for the outline stakeholder analysis and engagement proposals for the consultation, and a programme of activity that widened engagement with the process.

Officers advised that there would be an opportunity in the consultation period for committees to be engaged with the process. Members asked that this be made explicit in the quarterly progress reports to committees.

Members asked that the public consultation documents be concise and user-friendly, and have relevance at the local level.

RESOLVED (unanimously)

That the Sub-Committee

1.            approves the following principles of the Medium-Term Financial Strategy consultation process for 2023/24:

(a)  Target an increased number of meaningful responses to the consultation process compared to 2022/23.

(b)  Use the current version of the 2023/24 Budget (as contained within the Medium-Term Financial Strategy 2022 to 2025) to support early engagement with stakeholders (Appendix A to the report).

(c)  Increase the range of opportunities for stakeholders to engage with the process via surveys, face-to-face, plus virtual meetings and use of social media

(d)  Ensure communications, associated with budget setting, inform stakeholders of the range of Council services and how the Council prioritises activity

(e)  Use regular and accessible communications to share knowledge of potential opportunities and risks associated with the Council’s financial plans to support informed responses to the consultation process.

2.            approves the Medium-Term Financial Strategy process for the 2023/24 budget including:

(a)  The Business Planning Timetable (Annex B), and;

(b)  The Stakeholder Analysis (Annex C)

To consider a report on the appointment of Directors for Orbitas Bereavement Services Limited.

The Sub-Committee considered a report on the appointment of Directors for Orbitas Bereavement Services Limited following the receipt of notification of the resignation from office of two Directors of Orbitas Bereavement Services Limited to take effect from 1 June 2022. The Sub-Committee was invited to consider whether to appoint directors following these resignations.

RESOLVED

That

1.    it is resolved unanimously that two elected councillors be appointed to the Board of Directors of Orbitas Bereavement Services Limited as non-executive Directors;

2.    the following councillors be appointed to the Board:

Councillor Mark Goldsmith

Councillor Lata Anderson

To consider the Work Programme and determine any required amendments.

The Sub-Committee considered its work programme for 2022/23.

It was noted that Item FSC/3/22-23 – Procurement Working Group Feedback should be scheduled for the meeting on 7^th September 2022 and not 6^th July; the work programme would be amended accordingly.

Members asked if the Procurement Working Group, when established, could, as part of its remit, consider whether there were any implications arising from the Procurement Bill. Officers undertook to consider the matter further.

RESOLVED (unanimously)

That the work programme for 2022/23 be noted and approved.

To consider a report on land and property acquisitions and disposals.

The Sub-Committee considered a report on property acquisitions and disposals undertaken by the Council in the period 1^st April 2020 to 31^st March 2022. The report also provided information on pending transactions and a potential pipeline of further activity. Appendix C to the report contained commercially sensitive information on property transactions that were ongoing; the Appendix would be considered in part 2 of the meeting.

RESOLVED

That the Sub-Committee

1.    notes the acquisition and disposal activity of the Council for the period 1^st April 2020 to 31^st March 2022 as identified within the Appendices:

·         Appendix A - Summary of Acquisitions

·         Appendix B - Disposals completed in 2020 to 2021 Financial Year.

·         Appendix C - Disposals completed in 2021 to 2022 Financial Year (subject to further detailed consideration in part 2)

2.    notes the pipeline of property transaction activity and the potential impact on the MTFS. 

To consider a report relating to two separate matters in respect of the Council’s wholly-owned companies.

The Sub-Committee considered a report on two separate matters in respect of the Council’s wholly-owned companies, one relating to payments for employees and the other in respect of company tax status. The report also described related matters for year-end accounting and financial reporting.

In connection with the report, an extract from the Shareholder Agreement relating to matters requiring the consent of the Shareholders was circulated at the meeting.

The balance of the report, its appendices and recommendations would be considered in Part 2 of the meeting as they contained exempt information relating to the business affairs of the wholly-owned companies.

The reports relating to the remaining items on the agenda have been withheld from public circulation and deposit pursuant to Section 100(B)(2) of the Local Government Act 1972 on the grounds that the matters may be determined with the press and public excluded.

The Committee may decide that the press and public be excluded from the meeting during consideration of the following items pursuant to Section 100(A)4 of the Local Government Act 1972 on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 and public interest would not be served in publishing the information.

PART 2 – MATTERS TO BE CONSIDERED WITHOUT THE PUBLIC AND PRESS PRESENT

RESOLVED

That the press and public be excluded from the meeting during consideration of the following items pursuant to Section 100(A)4 of the Local Government Act 1972 on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 and the public interest would not be served in publishing the information.

To consider Appendix C to the report.

The Sub-Committee considered Appendix C to the Acquisition and Disposal of Assets report.

Members suggested that consideration should be given to other options for the use of land when considering disposals. Officers advised that a Disposals Policy would be submitted to a future meeting of the Economy and Growth Committee.

RESOLVED

That the contents of Appendix C to the report be noted.

To consider the balance of the report and appendices.

The Sub-Committee gave further consideration to the report introduced in part 1 of the meeting.

RESOLVED

That

1.    with regard to the matter relating to payments for employees of wholly-owned companies:

(a)  the content of the letter referred to in Appendix 1 to the report be noted; and

(b)  in accordance with recommendation 3.1.2 (b), an alternative amendment be proposed as agreed at the meeting and as set out in the confidential minute;

2.    it be noted that, following an HMRC review, ALMO status will not apply to Cheshire East Council wholly-owned companies for transactions arising on or after 1 April 2021 (therefore relating to the accounts and tax computations for year ended 31 March 2022) (Appendix 2);

3.    it be noted that closing transactions between the Council and its companies, for the year ending 31 March 2022, for services provided to or for the Council will be managed on an ‘at cost’ basis, and that any financial benefit from expenditure being lower than the management fee will be returned to the single entity of the Council; and

4.    it be noted that the new ‘model contract’ currently being developed with Ansa Environmental Services Ltd will reflect the change in ALMO status and include appropriate arrangements as described in resolutions 3 and 4, and will be a basis for future change to contracts with other wholly-owned companies of the Council.