Agenda item

The Chair of the Audit & Governance Committee, Councillor Walsh, will present recommendations from the meeting of the Audit & Governance Committee eld on 19 February 2024.

The minutes from the meeting are attached. The recommendations for the Council to consider are set out below:

·       Minute 645 [Review of the Members’ Allowances Scheme – Report of the Independent Remuneration Panel] – the Officer’s report and the report of the Independent Remuneration Panel are attached.

The Independent Remuneration Panel will be in attendance at the meeting to respond to questions.

·       Minute 651 [Treasury Management Strategy and Annual Investment Strategy 2024/25] – the Officer’s report and accompanying appendices are attached.

The Chair, Councillor Walsh, presented recommendations from the meeting of the Audit & Governance Committee held on 19 February 2024.

Councillor Walsh firstly alerted Members to recommendations at Minute 645 [Review of the Members’ Allowances Scheme – Report of the Independent Remuneration Panel]. Councillor Walsh confirmed that he had great pleasure in presenting the Independent Remuneration Panel’s [IRP’s] report and recommendations which had been approved by the Audit & Governance. Councillor Walsh reminded Councillors that the Council must have regard to the recommendations of the Panel when determining the scheme of Members’ Allowances. In formally proposing the Panel’s recommendations, Councillor Walsh paid tribute to the Panel for its time in gathering its evidence and for the work undertaken. The recommendations were then seconded by Councillor O’Neill.

Debate on the recommendations proposed then took place. There were varying statements made. Some Councillors who despite thanking the Panel for their work, held concern over the conclusions reached. It was felt that some of the recommendations did not reflect or compare to the findings of other councils and that the report needed to be more substantial, and so an opportunity had been missed, though no evidence was provided to support these opinions. Further concerns were expressed over the Special Responsibility Allowances being paid to the Chair of the Council, the Chair of the Licensing Committee, Councillors that chaired the Licensing Sub-Committee, the Leader of the Opposition and the increase proposed in the Basic Allowance which were too low. It was felt that there had been an opportunity to do something more substantial with this review to reflect the balance of responsibilities and that some opinions expressed by Councillors at interview had not been taken on board. It was felt that the SRA for the Leader of the Council, although increasing significantly, was still low compared to other authorities. The Panel was asked if it could include comparative data illustrating the variances in payments by other Councils in future reports. It was felt that the report downgraded the council when comparing it with other Council’s in West Sussex and was more like an interim report because there remained to be outstanding issues that required addressing.

            Further comments were made about the SRA paid to the Leader of the Opposition and the proposed reduction in this allowance which could not be justified. It was felt that the role could not be compared to the Chair of a Service Committee and had a much wider brief. It was felt that the SRA needed to be increased reflecting the number of Councillors within that political group. The reasons for reducing the SRA paid to the Vice-Chairs of Service Committees were accepted and an argument was put forward that perhaps they should not receive any SRA and this saving be used to increase the SRA paid to the Leader of the Council and the Leader of the Opposition. It was felt that the SRA paid to the Leader of the Opposition should be half of the Leader of the Council’s SRA.

As proposer of the recommendation, Councillor Walsh responded to some of the points raised and he thanked Members for their debate.  He confirmed his view that the Independent Remuneration Panel had done a great job in balancing all the competing demands in terms of time, finance and responsibilities and remembering that the Council had, since the last review, changed its governance structure from a Leader and Cabinet form of governance over to a Committee System and so a more thorough review had been undertaken. Councillor Walsh was of the view that the Panel had got the balance right; had taken account of the national and local financial situation and the responsibilities involved and the shifts and changes resulting from the change in structure. He commended the recommendation to the Council. 

            A recorded vote was requested on the recommendation to approve the new Members’ Allowances Scheme.

            Those voting for the recommendation were Councillors Ayling, Batley, Bicknell, Birch, Blanchard-Cooper, Mrs Bower, Bower, Brooks, Butcher, Edwards, Elkins, Goodheart, Greenway, Haywood, Huntley, Jones, Long, Lury, Madeley, May, McAuliffe, McDougall, Nash, Needs, Northeast, O’Neill, Oppler, Partridge, Patel, Penycate, Stainton, Tandy, Turner, Wallsgrove, Walsh, Wiltshire, Woodman, Mrs Worne, Miss Worne and Yeates [40]. Councillor Gunner voted against [1]. Councillors Mrs Cooper, Cooper, English, Hamilton, Kelly and Pendleton abstained from voting [6].

            The Council

                        RESOLVED

That the new scheme of Members’ Allowances be approved for final adoption.

Councillor Walsh then alerted Members to the next set of recommendations which were at Minute 651 [Treasury Management Strategy and Annual Investment Strategy 2024/25]. In formally proposing the recommendations, Councillor Walsh thanked the Council’s Group Head of Finance and Section 151 Officer and his team for the excellent and prudent treasury management strategy that they had stewarded over the last year.  The Investment Strategy was a sound investment strategy for the Council and due to the upturn in the market had produced excellent rates of return for the Council. The recommendations were then seconded by Councillor O’Neill.

The Council

            RESOLVED – That

(1)          The Treasury Management Straregy Statement for 2024/25 be approved and adopted;

(2)          The Annual Investment Straregy for 2024/25 be approved and adopted;

(3)          The Prudential Indicators within the Treasury Management Strategy Statement and Annual Investment Strategy for 2024/25, be approved;

(4)          An operational boundary borrowing limit of £78m for 2024/25, as shown in Appendix 2 be approved; and

(5)               An Authorised Borrowing Limit of £83m for 2024/25, as shown in Appendix 2 be approved.