Agenda and minutes

RESOLVED that the minutes of the meeting held on 14 October 2024 be confirmed and signed by the Chair as a true record.

Please note that, in accordance with the Members' Code of Conduct, when declaring interests members must disclose the existence and nature of the interest, and whether it is a disclosable pecuniary interest (DPI) or personal and/or pecuniary.

RESOLVED that the order of business be amended to allow Item No 4 entitled ‘Annual Complaints Performance and Service Improvement Report’ be considered as the next agenda item.

Purpose of Report

1.    To present an annual complaints report including details from the Annual Review of Local Authority Complaints issued by the Local Government and Social Care Ombudsman (LGSCO) and the decisions of the Housing Ombudsman Service (HOS).

2.    To report on the overall number of complaints received by the Council on a Directorate basis for the full year 2023-2024, including performance against target response times and the percentage of complaints which were upheld

Decision

That the content of the annual complaints report for 2023-2024 be received and noted.

Alternative Options Considered

None.

Reason for Decision

The Council’s complaints procedure included two levels in response to formal complaints, once the complaint had been considered and responded to by two separate officers the complainant was advised if they were not satisfied with the final response, to seek redress from the relevant Ombudsman service

Complaints relating to the landlord function of the Council, as a provider of social housing were escalated to the Housing Ombudsman Service, all other complaints, about any other service or aspect of Council business fell under the jurisdiction of the Local Government and Social Care Ombudsman.

In April 2024 the Housing Ombudsman Complaint Handling Code (The Code), became statutory for all social housing providers, we updated our policy to ensure that we complied with The Code and, as it represented best practice in dealing with customer complaints, we adopted the principles of The Code as a corporate policy

The main changes to our complaint handling were in terms of reporting of our performance, learning lessons from complaints, and ensuring that customers found it easy to make a complaint.

The Code required that we complete an annual self-assessment against all of the provisions set out in The Code. The self-assessment required that we consider each element of The Code and certify ourselves as either “Complied” or “Not Complied” with each of 78 provisions. Our self-assessment was also considered by the Lincoln Tenant’s Panel prior to submission.

Our 2024 Corporate Complaints Policy and Guidance was compliant with many of the provisions but there were a small number of areas where we had to undertake work; at date of submission of the initial self-assessment (30 June 2024) only 5 of the provisions were self-assessed as non-compliant at the date of submission (30 June 2024) as detailed in paragraph 2.8 of the officer’s report. These were now almost complete in demonstrating full compliance with The Code. The self-assessment was available for inspection on the Council’s website and attached to this report as Appendix A.

Further detailed information was provided within the report on performance received by the Council on a Directorate basis for the full year 2023-2024 before the Complaint Handling Code came into force covering the following main areas:

·       Complaints – Annual Performance (April 2023 – March 2024)

·       Breakdown of Complaints

·       Local Government and Social Care Ombudsman Annual Review Report

·       Housing Ombudsman Service Complaints

·       Complaint Trends

·       Learning from Complaints

·       Compliments

Purpose of Report

To seek approval of the new Department of Housing and Investment(DHI) Remedies Policy as detailed at Appendix 1 of the officer’s report.

Decision

1.    That the new DHI Remedies Policy be approved.

2.    That authority be delegated to the City Solicitor in conjunction with the Portfolio Holder for Quality Housing to consider and approve any suggested amendments recommended by the Policy Scrutiny Committee on 19 November 2024. Any major recommendations would be referred back to Executive for approval.

Alternative Options Considered

None.

Reason for Decision

The Council now had a statutory duty to handle customer complaints in line with the Housing Ombudsman Service (HOS) Complaint Handling Code, (The Code), as detailed within paragraph 2.1-2.6 of the officer’s report.

Whilst there were existing procedures for offering small sums to compensate loss there was not a formal policy document which was in line with the HOS Guidance on Remedies and therefore, a new one was developed and agreed to ensure compliance with The Code.

Lincoln Tenants Panel (LTP) had been consulted about this report and had made the following comments:

1.    Recommend the remedies policy be reviewed annually.

Response: This had been noted and reflected in the review date information.

2.    LTP requested that they were provided with an annual report on the volume of compensation administered and areas of service related to.

Response: This had been noted and could be provided.

3.    Agreed with the proposed compensation amounts and increments system relating to qualifying improvements, gesture of goodwill and payment of compensation to customers,

Response: This had been noted.

4.    Recommended rent refund for disturbance allowance amount was reduced.

Response: This had been noted however, the amounts had been suggested were based on the Housing Ombudsman award thresholds.

This policy was reviewed at Housing Scrutiny Sub Committee on 31 October 2024 and it was supported to be referred to Executive for approval. It was also discussed that the report and policy should be presented to Policy Scrutiny Committee on 19 November for further review and consideration.

Purpose of Report

To seek approval of the new Unacceptable Customer Actions Policy as detailed within Appendix 1 to the officer’s report.

Decision

1.    That the new Unacceptable Customer Actions Policy be approved.

2.    That the assistance given by the Lincoln Tenant’s Panel in developing this policy be noted.

3.    That authority be delegated to the City Solicitor in conjunction with the Portfolio Holder for Customer Experience, Review and Resources, to consider and approve any suggested amends recommended by the Policy Scrutiny Committee on 19 November 2024. If any of the recommendations were major changes they would be referred back to the Executive for approval.

Alternative Options Considered

None.

Reason for Decision

The Council now had a statutory duty to handle customer complaints in line with the Housing Ombudsman Service (HOS) Complaint Handling Code. (The Code)

Section 5.14 of the Code self- assessment stated that:

·       Landlords must have policies and procedures in place for managing unacceptable behaviour from residents and/or their representatives. Landlords must be able to evidence reasons for putting any restrictions in place and must keep restrictions under regular review.

Whilst we had existing procedures for reporting incidents and handling reports of unacceptable behaviour it was not a formal policy document and therefore, we needed to develop and agree one to ensure that we were compliant with The Code.

The new policy had been developed with the assistance of Lincoln Tenant’s Panel who were keen to help ensure that while protecting staff the policy was also proportionate in terms of the action taken.

The policy was reviewed at Housing Scrutiny Sub Committee on 31 October 2024 and it was supported that the policy be referred to Executive for approval. It was also discussed that the report and policy should be presented to Policy Scrutiny Committee on 19 November for further review and consideration.

Purpose of the Report

To present an outturn summary of the Council’s operational performance in quarter two of 2024/25.

Decision

1.    That the achievements and challenges identified in the Quarter 2 2024/25 operational performance report found at Appendices A and B be noted.

2.    It be confirmed that the format of the performance report continued to meet requirements.

Alternative Options Considered and Rejected

None were considered.

Reasons for the Decision

Regular monitoring of the Council’s performance was a key component of the Local Performance Management Framework. This report covered the key strategic performance measures identified by members and Corporate Management Team (CMT) as of strategic importance.

The outturn summary report at the end of Quarter 2 2024/25 detailed performance against a total of 87 quarterly measures and 2 annual measures across the directorates Chief Executive’s, Communities and Environment, Housing and Investment and Major Developments. Of the 89 performance measures monitored against targets, 15 were below target; 17 were within target boundaries; 33 had met or exceeded a higher target; 24 measures were recorded as volumetric and there were no measures recorded as data not available for this quarter.

Out of the 89 performance measures monitored during the quarter with 65 targets allocated to them, 50 (76.9%) were within or exceeding the targets set.

A review of the quarterly performance process was undertaken at the end of 2023/24, which led to the following changes:

·       Appendix A now contained a wider range of performance information, including qualitative data in the form of case studies and service highlights. These were grouped into seven themes, namely the five Vision Priorities and the two inward looking portfolios ‘Our People and Resources’ and ‘Customer Experience and Review.’

·       The more detailed performance data tables were now grouped together in Appendix B, including the suite of corporate measures that were previously in Appendix A. Performance data remained grouped by directorate, and a colour coding system had been introduced to make it simpler to identify which portfolio each measure related to. Appendix B also included a quarterly Communications update.

When read together, Appendices A and B aimed to enhance the range of performance information presented via the quarterly reporting process and make it easier to assess and scrutinise the performance of each priority/portfolio.

Members praised officers for the easily read format of the report and its content.

Purpose of Report

To present the second quarter’s performance (up to 30 September 2024) on the Council’s General Fund, Housing Revenue Account, Housing Repairs Service and Capital Programmes, and to seek approval for changes to the capital programmes.

Decision

1. That the financial performance for the period 1 April 2024 to 30 September be noted.

2. That the underlying impact of the pressures and underspends identified in paragraphs 3.3 (and Appendix B), 4.3 (and Appendix D), and 5.2 (and Appendix F) of the officer’s report be noted.

3. That the changes to the General Investment Programme and Housing Investment Programme as approved by the Chief Finance Officer detailed in paragraphs 7.5 and 7.12 of the officer’s report be noted.

4. That the changes to the General Investment Programme and Housing Investment Programme, as detailed in paragraph 7.11 of the officer’s report, be approved.

Alternative Options Considered and Rejected

None.

Reason for Decision

Financial Procedure Rules required members to receive a report prepared jointly by the Chief Finance Officer and Corporate Management Team on a quarterly basis commenting on financial performance to date. This report was designed to meet this requirement.

Whilst there were still a number of variables which were subject to a level of uncertainty, based on the latest set of assumptions as at the end of the second quarter (up to 30 September 2024), the forecast financial position of the Council for 2024/25 was detailed at paragraph 2.2 of the officer’s report, together with the detailed financial position shown in sections 3-7 and the accompanying appendices.

Updates were reported as follows:

General Fund Revenue Account

For 2024/25 the Council’s net General Fund revenue budget was set at £15,427,670 which included a planned contribution from balances of £146,820 resulting in an estimated level of general balances at the year-end of £2,391,979 (after allowing for the 2023/24 outturn position).

The General Fund Summary was currently projecting a forecast underspend of £37,277 (Appendix A provided a forecast General Fund Summary) resulting in general balances at the year-end of £2,429,206. This position maintained balances above the prudent minimum of c.£1.5-2m.

There were a number of forecast year-end variations in income and expenditure against the approved budget, as detailed at paragraphs 3.3-3.5 of the report, with the main variances provided in Appendix B to the report.

Alongside these variances, a significant variance against the Council’s crematorium budget was also forecasted, resulting from a continuation of the reduction in income from cremations seen last financial year, driven by increasing competition from neighbouring Crematoriums. This position was being carefully monitored and an action plan developed. In addition, the service was currently being supported by external industry professionals, increasing the management and administration costs, this was being carefully monitored and would only remain in place for as long as required.

In addition, a significant in-year variance was now forecasted for the Cornhill Market. The refurbished Market opened on 17 May 2024 but the original budget for 2024/25 was set on the basis of a full year of operation  ...  view the full minutes text for item 47.

Purpose of Report

To report the Council’s treasury management activity and the actual prudential indicators for the period 1 April 2024 to 30 September 2024, in accordance with the requirements of the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice. The strategy included indicators that helped ensure that the Council’s capital investment plans were affordable, prudent and sustainable.

Decision

That the Prudential and Local Indicators and the actual performance against the Treasury Management Strategy 2024/25 for the half-year ended 30 September 2024 be noted and referred to Full Council (in accordance with CIPFA’s Code of Practice for Treasury Management).

Alternative Options Considered and Rejected

None.

Reason for Decision

The prudential system for capital expenditure was well established. One of the requirements of the Prudential Code was to ensure adequate monitoring of the capital expenditure plans, prudential indicators (PIs) and the treasury management response to these plans. The report fulfilled that requirement and included a review of compliance with Treasury and Prudential Limits and the Prudential Indicators at 30 September 2024. The Treasury Management Strategy and Prudential Indicators were previously reported to and approved by Council on 27 February 2024.

It was noted that the Council held £29.355 million of investments at 30 September 2024, with the full investment profile set out at Appendix A of the report. Of this investment portfolio, 100% was held in low risk specified investments, the requirement for the year being a minimum of 25% of the portfolio to be specified investments. During the six months to 30 September on average 93% of the portfolio was held in low risk specified investments and an average of 7% of the portfolio was held in non-specified investments with other local authorities.

It was noted that as at 30September 2024, the Council held £107.406m of external borrowing, of which 100% were fixed rate loans (Appendix A referred).

As at 30 September 2024, the average rate of interest paid during the first half of the financial year on external borrowing was 3.26%. This was lower than the budgeted rate set in the Medium Term Financial Strategy (MTFS) 2024-29 of 3.65%, due to the repayment of a loan in the prior year, which was not anticipated in the MTFS, and the new borrowing forecast at budget setting had not yet been required.

This Council had adopted the CIPFA Code of Practice for Treasury Management in the Public Sector and operated its treasury management service in compliance with this Code and the above requirements. These required that the prime objective of treasury management activity was the effective management of risk, and that its borrowing activities were undertaken in a prudent, affordable and sustainable basis.

It was anticipated that no additional borrowing would be undertaken during this financial year. A loan of £2m was due to mature in February 2025, the need to replace this would be assessed closer to the time in-line with cashflow forecasts and interest rates at the time.

The capital programme was being kept  ...  view the full minutes text for item 48.

Purpose of Report

To update Executive on the latest Medium Term Financial Strategy (MTFS) position for the Council, including the challenges in preparing for the 2025/26 and future years budget, setting out the parameters within which the Council would prepare these budgets and confirmation of the Council’s approach to development of the budget and Medium Term Financial Strategy.

The report included an update on the current economic position and developments in national policy, specifically the Government’s first Budget and Spending Review, which gave rise to specific impacts for local government funding. This, along with cost and demand pressures, and other emerging issues, would inform the development of the MTFS. Further details in respect of key budget assumptions for 2025-30, together with budget and financial planning preparation timetables for 2025/26 were outlined at Appendices A and B of the report.

Decision

1.    That the financial challenges and risks that the Council faced, particularly the uncertainty surrounding future funding levels be noted.

2.    That the projected budget parameters for 2025/26 and future years and note the planning assumptions, as set out in Appendix A be noted.

3.    That the budget, strategic and service planning preparation programme, as set out in Appendix B be noted.

Alternative Options Considered and Rejected

There were significant, unprecedented risks to the Council’s budget strategy, particularly in the short-term as detailed within the officer’s report.

The budget process included the recognition of these risks in determining the 2025/26 budget and MTFS, but it would be imperative that the Council continued to build upon its record of delivering significant savings and maintained a strong financial management discipline in order to ensure a sustainable financial position.

Reason for Decision

The Council’s new emerging Vision 2030 and its five strategic priorities would drive the medium-term financial planning process, with changes in resource allocation determined in accordance with policies and priorities. The MTFS provided the framework for the development of annual budgets in line with the aims of the Council’s strategy and priorities.

The refreshed MTFS would include financial projections for the five-year financial planning period through to 2029/30. It would set out the financial parameters within which the Council was required to work and the recommended approach to addressing the financial challenges the Council faced to develop a balanced, sustainable budget and set Council Tax and Housing Rents for 2025/26.

The refresh of the MTFS needed to be seen in the context of significant financial uncertainty for the Council in relation to future Government funding levels. Significant changes to future public sector departmental spending through the Spending Review 2025, the allocation of this funding to local government through reforms to the distribution methodologies, and the potential implementation of a Business Rates Reset, were as yet all unknown but all of which had the potential to fundamentally affect the Council’s funding trajectory and MTFS

Furthermore, the Council continued to face budget pressures due to changes in the use of, and demand for, services, as well as increased costs and reduced income streams.  ...  view the full minutes text for item 49.

Purpose of Report

To provide a status report on the revised Strategic Risk Register as at the end of the second quarter 2024/25.

Decision

That the Council’s strategic risks as at the end of quarter 2 2024/25, be noted.

Alternative Options Considered and Rejected

None were considered. The Strategic Risk Register contained the key strategic risks to the delivery of the Council’s medium and longer term priorities. A failure to monitor the action that was being taken to manage those risks would undermine the Council’s governance arrangements.

Reasons for the Decision

An update of the Strategic Risk Register developed under the risk management approach of ‘risk appetite’, was last presented Members in August 2024 and contained fifteen strategic risks as detailed within paragraph 3.1 of the officer’s report.

Since reporting to Members in August, the Strategic Risk Register had been refreshed and updated by the Risk Owners and Corporate Management Team. This update had reviewed each risk in terms of the level of assessed risk, control measures in place and mitigating actions required, and had identified there had been some positive movement in the Risk Register. It had also considered whether there were new risks that need to be assessed.

The updated register was contained with Part B of this agenda, it contained fifteen strategic risks along with details of relevant mitigations.

Each risk included a number of control measures in order to avoid, seek, modify, transfer or retain the risks. These included actions already in place and further actions required with the relevant timescales for implementation. These control actions continued to be implemented and the risks managed accordingly.

Each risk was evaluated in terms of the level of assessed risk (likelihood and impact), taking into consideration any changes in control measures and the wider environment in which the Council operated. There had been some positive movements in terms of the implementation of control measures, which had resulted in a change to the assessed levels or likelihood and/or impact of one of the risks:

• Risk 13 has decreased from Red: Almost Certain/Critical to Amber: Probable/Major. 

The assessed level of each of the fifteen risks was outlined at paragraph 3.4 of the officer’s report.

You are asked to resolve that the press and public be excluded from the meeting during the consideration of the following items because it is likely that if members of the press or public were present, there would be disclosure to them of 'exempt information'.

In accordance with the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012, notice is hereby given of items which will be considered in private, for which either 28 days' notice has been given or approval has been granted by the appropriate person specified in the Regulations. For further details please visit our website at http://www.lincoln.gov.uk or contact Democratic Services at City Hall, Beaumont Fee, Lincoln.

X. This item is being considered in private as it is likely to disclose exempt information, as defined in Schedule 12A of the Local Government Act 1972. No representations have been received in relation to the proposal to consider this item in private.

Y. This item is being considered in private as it is likely to disclose exempt information, as defined in Schedule 12A of the Local Government Act 1972, and has not been deferred for the reasons established in the published notice.

RESOLVED that the press and public be excluded from the meeting during consideration of the following items of business because it was likely that if members of the public were present there would be a disclosure to them of ‘exempt information’ as defined by Section 100I and Schedule 12A to the Local Government Act 1972.

Purpose of Report

To receive the revised Strategic Risk Register as at the end of quarter 2 2024/25.

Decision

That the Council’s strategic risks, as at the end of quarter 2 2024/25, be noted.

Alternative Options Considered and Rejected

None were considered. The Strategic Risk Register contained the key strategic risks to the delivery of the Council’s medium and longer term priorities. A failure to monitor the action that was being taken to manage those risks would undermine the Council’s governance arrangements.

Reasons for the Decision

The reasons for the decision were set out at Minute 49 above.

Purpose of Report

As detailed in the exempt report to the Executive.

Decision

That the recommendation to the Executive, as set out in the exempt report, be approved.

Alternative Options Considered and Rejected

As detailed in the exempt report to the Executive.

Reasons for the Decision

As detailed in the exempt report to the Executive.