Agenda and minutes

It was moved by Councillor Jacobs and seconded by Councillor Thomas that Councillor Adams be appointed Chair of the Joint Meeting of Scrutiny Committees. After being put to the meeting and a vote taken, the motion was declared CARRIED.

RESOLVED – that Councillor Adams be appointed Chair of the Joint Meeting of Scrutiny Committees.

To receive apologies for absence.

There were apologies for absence from Councillor Carter and Councillor Woollcombe. It was noted that Councillor Watson was substituting for Councillor Carter.

The Chair welcomed all to the joint meeting of the Audit and Governance and Overview and Scrutiny Committees, which had been convened to scrutinise the Budget items. He reminded participants to use their microphones when speaking so that they could be heard.

To receive any Members’ declarations of interest.

There were no declarations of interest.

The Executive Member for Financial Sustainability introduced the report which set out the revised Medium Term Financial Plan (MTFP) and savings proposals to balance the 2025/26 budget. 

The Chair thanked the Executive Member for Financial Sustainability for his report and asked the Interim Head of Strategic Finance for his observations as he was new to the council.

The Interim Head of Strategic Finance said that he was impressed with the thorough level of detail which surrounded East Herts’ budget setting. He said that Leadership Team met regularly to monitor the budget, explore options and savings opportunities.

Councillor Nicholls queried the increase in service costs of £434,000 from last year for Communications, Strategy and Policy. She also sought clarification of why there was a drop in income retained from Business Rates.

The Interim Head of Strategic Finance said that he would need to obtain more detail to answer Councillor Nicholls’ query regarding the increase in the service cost. He said that the reset of the Business Rates system had resulted in the overall drop in this income.

Councillor Williamson referred to page 20 of the report and asked how disposing of Millstream assets would result in savings. He said that work was done by the previous administration to ensure that Millstream would provide the expected returns.

The Executive Member for Financial Sustainability said Millstream did provide an income for the council, but interest rates had changed, being higher for several years, and paying off debt saved more money (currently around 8%) than the profit generated. He said that if Millstream had no debt the case would be different.

Councillor Thomas also referred to page 20 of the report and asked for expansion on the Executive Approved Savings for 2024/25, namely the new approach to partnerships, the review of customer service receptions and the increase to the garden waste charges.

The Executive Member for Financial Sustainability said that he was unable to expand further on the new approach to partnerships and the customer services reception proposals as these were being reviewed by Leadership Team. He said that these money saving changes had consequences for jobs, and therefore currently needed to remain confidential. 

The Executive Member for Financial Sustainability said that the proposed increase to the garden waste service would bring costs back into line, accommodating 20% inflation since the service was set up in 2021. He said that the 2025/26 increase was not an exact CPR rise and was not out of line with other local authorities in the area. He confirmed that the charge would increase each year thereafter.

Councillor Nicholls said that it was good to see that savings had been made by a senior management restructure and asked if these savings had been made by posts not being filled.

The Executive Member for Financial Sustainability said that it was not planned that posts which had been vacated would be refilled.

Councillor Clements said that he appreciated that the decisions regarding staff parking, not to reduce the grant given to  ...  view the full minutes text for item 312.

The Executive Member for Financial Sustainability introduced the report which presented the Executive’s recommended Capital Strategy, the Minimum Revenue Provision Statement, and the Treasury Management Statement 2025/26, for approval by Full Council.

The Chair thanked the Executive Member for Financial Sustainability for his report.

Councillor Buckmaster asked if funds which were currently in property investments would be used to repay other council debts at the end of their terms.

The Executive Member for Financial Sustainability said that this was correct, with any receipts used to pay debts or fund capital requirements, such as waste vehicles. He said that the return dates for the funds were currently unknown, adding that the council had two property funds, both of which were being wound down.

The Interim Head of Strategic Finance said that exploratory work was being undertaken regarding the option for the council’s second fund to be absorbed by a larger fund. He said that if the fund was merged it was envisaged that most of the council’s initial investment could be returned by June/July, otherwise the winding down process could take two to three years. He confirmed that this would impact next year’s budget and in year cash flow/ cash flow requirement.

Mr Sharman asked if the asset disposal programme for 2026/27 was realistic and sought clarification of the effect of a fall in interest rates would have on the council’s budget.

The Executive Member for Financial Sustainability said that the asset disposal programme for 2026/27 was realistic, with the majority relating to Old River Lane. He said and that the council’s borrowing was more dependent on the gilt rate, which had remained steadily high and was not directly linked to the bank interest rate. He said that therefore a reduction in the gilt rate would help with the council’s (predominately short-term) borrowing costs. 

Councillor Nicholls asked for the implications of devolution on the council’s debt liability and long-term commitments.

The Interim Head of Strategic Finance said that when new bodies were merged or formed their assets and liabilities transferred with them, he cited Cornwall and Cumberland as such examples.

Councillor Deering referred to table 5 at paragraph 3.7.2 of the report. He noted the figures within the table and sought clarification that the figure of £800,000 in the third line did relate to asset disposals. He said that the report made vivid that there had been virtually no progress in relation to asset sales.

The Interim Head of Strategic Finance said that technically this figure may be an asset disposal, as it related to capital funding from a loan to Millstream. He said that the table itself concerned ‘capital receipts receivable’.

The Interim Head of Strategic Finance agreed that there had been virtually no asset sales completed within the year. He said that sales had been reforecast and that the council was confident that the programme for 2026/27 could be achieved. He said that the figure of 2.4 million shown table 5 would be in capital receipts, as loans and  ...  view the full minutes text for item 313.

To consider such other business as, in the opinion of the Chairman of the meeting, is of sufficient urgency to warrant consideration and is not likely to involve the disclosure of exempt information.

There was no urgent business.