Agenda, decisions and minutes

To receive apologies from Members of the Committee.

Apologies for absence were received from Councillor Jackie Smith.

The Chair to announce any items of urgent business circulated separately from the main agenda.

There were no items of urgent business.

Members to declare any personal and financial interests in items on the agenda. Attention is drawn to the Council’s Constitution; the Council’s Code of Conduct and associated advice.

Resolved -

That the list of Councillors’ memberships as Council appointed representatives on outside bodies, joint committees and school governing bodies is noted.

That the following declaration be noted:

·         Councillor Denise Hyland declared an interest in Item 7 as a co-owner of another property in the borough.

Members are requested to confirm as an accurate record the Minutes of the meetings held on 26 November 2024 and 4 December 2024

No motion or discussion may take place upon the Minutes except as to their accuracy, and any question on this point will be determined by a majority of the Members of the body attending who were present when the matter in question was decided. Once confirmed, with or without amendment, the person presiding will sign the Minutes

Resolved –

That the Minutes of the meetings of Cabinet held on 26 November and 4 December 2024 be agreed and signed as true and accurate records.

To note the Council’s revenue position as at the end of November 2024.

Noted the Council’s revenue position as at the end of November 2024.

The Cabinet Member for Finance, Resources and Social Value introduced the report. The Cabinet Member advised Cabinet that there was some improvement since Quarter 2. However, the dedicated Schools Grant position had worsened; measures had been taken but the increasing expenditure was due to factors outside the control of the local authority.

Resolved -

That the Council’s revenue position as at the end of November 2024 be noted.

To consider changes to the Local Council Tax Support scheme for working age households from 2025/26.

Recommended Council to –

note that proposals in this report relate to the Local Council Tax Support (LCTS) scheme for working age claimants and that pensioner households claiming LCTS are unaffected and continue to be able to receive up to 100% support, subject to eligibility

note that in setting the budget for 2024/25, savings amounting to approximately 10% of the councils overall net budget were agreed and that within this sum was £1.1m relating to potential changes to LCTS, subject to consultation and agreement, effective from 2025/26 onwards

note that:

·        the direct cost of support to pensioner and working age households is £26.2m of foregone council tax to the council and GLA, of which £13.3m is working age support attributable to the council

·        LCTS in Greenwich is within the top quarter of ratios between “working age support to council tax income” in London

·        around half of London’s councils have recently consulted on changes to their working age schemes, also to take effect from 2025/26

agree that, following many years of structural under funding and in order for the scheme for working age claimants to remain affordable, the maximum level of support for working age claimants of LCTS changes from 100% to 80%, so that all households make a minimum contribution of 20% towards the total council tax bill (before support)

agree to increase the earnings taper for working age residents from 15% to 25%.

agree to increase the non-dependant deduction charge from £5 to £10 per week

agree to also remove the exemption for non-dependants who are in receipt of passported benefits and / or not in work.

agree to abolish the second adult rebate for working age claimants

agree to allow the use of DWP notifications of a claim for Universal Credit as a claim for Local Council Tax Support.

agree to create a Greenwich Supports Discretionary Council Tax Hardship Fund to assist Council Tax payers whom are experiencing financial hardship caused by the 2025/26 scheme changes, combined with cost-of-living pressures, low-incomes and low financial resilience.

delegate to the Cabinet member for Inclusive Economy, Business, Skills and Greenwich Supports to agree details of the Hardship Fund and its implementation.

The Cabinet Member for Finance, Resources and Social Value introduced the report. The Cabinet Member commented that many other local authorities were seeking a greater than 20% contribution from working age claimants.

In response to questions from Cabinet, the Director of Resources gave examples of London Boroughs which were moving to a greater than 20% contribution and indicated that was the general trend. He added that Greenwich would have in addition a Hardship Fund.  The Director confirmed the savings that would be made. The Director advised that were Option 1 to be pursued and no change made it would lead to a deficit of £2.8 million in the draft budget. To address that the Council would by 11 March 2025 either have to increase Council Tax beyond the 4.99% level, which would require a local referendum and which would, he emphasised, be a substantial cost in itself to the Council, or alternatively savings would have to be made in the provision of other services.

Resolved –

That Council be recommended to –

1.       Note that proposals in the report relate to the Local Council Tax Support (LCTS) scheme for working age claimants and that pensioner households claiming LCTS are unaffected and continue to be able to receive up to 100% support, subject to eligibility

2.       Note that in setting the budget for 2024/25, savings amounting to approximately 10% of the councils overall net budget were agreed and that within this sum was £1.1m relating to potential changes to LCTS, subject to consultation and agreement, effective from 2025/26 onwards

3.       Note that:

·        the direct cost of support to pensioner and working age households is £26.2m of foregone council tax to the council and GLA, of which £13.3m is working age support attributable to the council

·        LCTS in Greenwich is within the top quarter of ratios between “working age support to council tax income” in London

·        around half of London’s councils have recently consulted on changes to their working age schemes, also to take effect from 2025/26

4.       Agree that, following many years of structural under funding and in order for the scheme for working age claimants to remain affordable, the maximum level of support for working age claimants of LCTS changes from 100% to 80%, so that all households make a minimum contribution of 20% towards the total council tax bill (before support)

5.       Agree to increase the earnings taper for working age residents from 15% to 25%.

6.       Agree to increase the non-dependant deduction charge from £5 to £10 per week

7.       Agree to also remove the exemption for non-dependants who are in receipt of passported benefits and / or not in work.

8.       Agree to abolish the second adult rebate for working age claimants

9.       Agree to allow the use of DWP notifications of a claim for Universal Credit as a claim for Local Council Tax Support.

10.     Agree to create a Greenwich Supports Discretionary Council Tax Hardship Fund to assist Council Tax payers whom are experiencing financial hardship  ...  view the full minutes text for item 6.

To agree the Council Tax Base

Agreed to reducing the time before charging a Council Tax Premium to long-term empty homes (dwellings which have been unoccupied and substantially unfurnished), from 2 years to 12 months.

Noted the agreement at Council on 31^st January 2024 of a 100% council tax premium on Class A & Class B dwellings second homes in the borough, which will take effect from 1 April 2025.

Noted that proposed changes to the Local Council Tax Support Scheme, being considered by Cabinet on 29 January 2025 for recommendation to Council, are included in the tax base calculations.

Recommended Council to

Agree a council tax base for the whole authority area for 2025/26 of 91,088.88 in accordance with the Local Authorities (Calculation of Tax Base) (England) Regulations 2012.

Agree an additional council tax base for the Gloucester Circus Garden Square area of the authority for 2025/26 of 100.16.

Agree a continuance in 2025/26 of a council tax premium of 100% in respect of long-term empty dwellings for dwellings empty for between 1 and 5 years.

Agree a continuance in 2025/26 of a council tax premium of 200% in respect of long-term empty dwellings, for dwellings empty between 5 and 10 years.

Agree a continuance in 2025/26 of a council tax premium of 300% in respect of long-term empty dwellings, for dwellings empty longer than 10 years.

Agree a continuance in 2025/26 of the council tax discount of 0% on Class C & D dwellings (empty homes).

Agree a continuance in 2025/26 of the council tax discount of 100% in respect of Royal Borough of Greenwich resident care leavers, aged under 25.

Agree a continuance in 2025/26 of a council tax discount of 100% in respect of Royal Borough of Greenwich foster carers & shared lives households in the borough.

Note that the council tax base relevant to the Southern Region of the Environment Agency for flood defence levy apportionment purposes in 2025/26 is 9,218.50

Note that the council tax base relevant to the Thames Region of the Environment Agency for flood defence levy apportionment purposes in 2025/26 is 81,870.38

Having declared an interest Councillor Denise Hyland withdrew from the meeting for the duration of the Item.

In response to questions from Cabinet the Director of Resources indicated that there had been an increase of 643 properties which meant an increase in Council Tax but he noted that the annual increase in properties had been reducing year on year over the last couple of years. The Director advised on the Council Tax premiums arising from the Levelling-up and Regeneration Act 2023, and combined that could be several hundred thousand pounds worth of additional tax income.

Resolved -

1.       That reducing the time before charging a Council Tax Premium to long-term empty homes (dwellings which have been unoccupied and substantially unfurnished), from 2 years to 12 months be agreed.

2.       That the agreement at Council on 31^st January 2024 of a 100% council tax premium on Class A & Class B dwellings second homes in the borough, which will take effect from 1 April 2025 be noted.

3.       That the proposed changes to the Local Council Tax Support Scheme, being considered by Cabinet on 29 January 2025 for recommendation to Council, are included in the tax base calculations be noted.

That Council be recommended to

4.       Agree a council tax base for the whole authority area for 2025/26 of 91,088.88 in accordance with the Local Authorities (Calculation of Tax Base) (England) Regulations 2012.

5.       Agree an additional council tax base for the Gloucester Circus Garden Square area of the authority for 2025/26 of 100.16.

6.       Agree a continuance in 2025/26 of a council tax premium of 100% in respect of long-term empty dwellings for dwellings empty for between 1 and 5 years.

7.       Agree a continuance in 2025/26 of a council tax premium of 200% in respect of long-term empty dwellings, for dwellings empty between 5 and 10 years.

8.       Agree a continuance in 2025/26 of a council tax premium of 300% in respect of long-term empty dwellings, for dwellings empty longer than 10 years.

9.       Agree a continuance in 2025/26 of the council tax discount of 0% on Class C & D dwellings (empty homes).

10.     Agree a continuance in 2025/26 of the council tax discount of 100% in respect of Royal Borough of Greenwich resident care leavers, aged under 25.

11.     Agree a continuance in 2025/26 of a council tax discount of 100% in respect of Royal Borough of Greenwich foster carers & shared lives households in the borough.

12.     Note that the council tax base relevant to the Southern Region of the Environment Agency for flood defence levy apportionment purposes in 2025/26 is 9,218.50

13.     Note that the council tax base relevant to the Thames Region of the Environment Agency for flood defence levy apportionment purposes in 2025/26 is 81,870.38

To  approve the model Heads of Terms to enable Officers to agree terms with residential landlords to lease properties for a period of ten years, to provide temporary accommodation for homeless households.

Agreed the model Heads of Terms and business plan parameters, as set out in exempt Appendix One of this report, for a ten-year lease to be offered to residential landlords for the acquisition of accommodation to house homeless households requiring temporary accommodation.   

Noted that the potential rent payable under each lease acquisition may generate an annual financial deficit, to be funded from the General Fund (GF).  The proposal aims to deliver a GF cost reduction, reducing the current TA budget pressures.    

Noted that some properties acquired on a ten-year lease may be located outside of the borough.

Noted the process mapping for the delivery of this initiative, as set out in Appendix Two of this report.

Delegated authority to the Director of Place and Growth to negotiate and agree the details of each lease agreement.

Agreed to treat the information contained in the Exempt Appendix One to this report as exempt information in accordance with the provisions of paragraph 3 of Schedule 12A to the Local Government Act 1972 (as amended) (information relating to the financial or business affairs of any particular person including the authority holding that information). To agree that this exempt information contained in the Exempt Appendix One shall not be released to the press or public.

The Cabinet Member for Planning, Estate Renewal and Development introduced the report.

In response to questions from Cabinet the Director of Place and Growth clarified that they would be seeking properties that were fit to let at the point of acquisition, it would only be an as an exception that properties requiring significant repairs would be taken.

The Cabinet Member for Housing Management, Neighbourhoods and Homelessness welcomed the increase in supply of temporary accommodation. The Cabinet Member added that they were projected to have no people in hotels by the end of the year. The Leader of the Council thanked the Cabinet Member for Housing Management, Neighbourhoods and Homelessness and Housing Officers stating that removing families from hotels was a key priority for the Council.

The Chair of Cabinet indicated that he had received two questions from the Deputy Leader of the Opposition, which he put to the Director of Place and Growth. The Director of Place and Growth answered that the number of properties that they would take was dependent on the market; depending on how much appetite there was from the market they would then monitor the market to see if there was any negative impact on the private rental sector.

Resolved -

1.       That the model Heads of Terms and business plan parameters, as set out in exempt Appendix One of the report, for a ten-year lease to be offered to residential landlords for the acquisition of accommodation to house homeless households requiring temporary accommodation, be agreed.   

2.       That the potential rent payable under each lease acquisition may generate an annual financial deficit, to be funded from the General Fund (GF), and that the proposal aims to deliver a GF cost reduction, reducing the current TA budget pressures be noted.    

3.       That some properties acquired on a ten-year lease may be located outside of the borough be noted.

4.       That the process mapping for the delivery of this initiative, as set out in Appendix Two of the report be noted.

5.       That authority be delegated to the Director of Place and Growth to negotiate and agree the details of each lease agreement.   

6.       That it be agreed to treat the information contained in the Exempt Appendix One to this report as exempt information in accordance with the provisions of paragraph 3 of Schedule 12A to the Local Government Act 1972 (as amended) (information relating to the financial or business affairs of any particular person including the authority holding that information). To agree that this exempt information contained in the Exempt Appendix One shall not be released to the press or public.

To approve the freehold acquisition of five NHS-owned properties and to delegate to Officers the the process for acquiring the properties and the process for procuring and appointing a service provider and the terms of that contract upon completion of the acquisition

Approved the freehold acquisition of five NHS-owned properties listed below that host care and support services for people with learning disabilities, on the terms set out in exempt Appendix C.

·        1 Samuel Close London SE18 5LR

·        2 Samuel Close London SE18 5LR

·        3 Samuel Close London SE18 5LR

·        1A Erindale Terrace, London SE18 2QQ

·        Arnold House, 154 Shooter Hill Road, London SE3 8RP

Delegated to the Director of Place and Growth the process for acquiring the properties.

Delegated to the Director of Health and Adult Services the process for procuring and appointing a service provider and the terms of that contract upon completion of the acquisition, to ensure stability for residents.

Noted that Health and Adult Services intend to explore opportunities in the future to deregister one or more of these properties, should this option be appropriate.

Agreed to treat the information contained in the Exempt Appendices A – H to this report as exempt information in accordance with the provisions of paragraph 3 of Schedule 12A to the Local Government Act 1972 (as amended) (information relating to the financial or business affairs of any particular person, including the authority holding that information). To agree that this exempt information contained in the Exempt Appendices A-H shall not be released to the press or public.

The Cabinet Member for Planning, Estate Renewal and Development introduced the report. The Cabinet Member highlighted that the properties were strategically important to Health and Adult Services.

The Cabinet Member for Health, Adult Social Care and Borough of Sanctuary emphasised that it was about providing a safe and a secure home for Greenwich residents with learning disabilities while considering how to provide the best quality and best value for money.

Resolved –

1.            That the freehold acquisition of five NHS-owned properties listed below that host care and support services for people with learning disabilities, on the terms set out in exempt Appendix C,be approved.

·        1 Samuel Close London SE18 5LR

·        2 Samuel Close London SE18 5LR

·        3 Samuel Close London SE18 5LR

·        1A Erindale Terrace, London SE18 2QQ

·        Arnold House, 154 Shooter Hill Road, London SE3 8RP

2.       That it be delegated to the Director of Place and Growth the process for acquiring the properties.

3.       That it be delegated to the Director of Health and Adult Services the process for procuring and appointing a service provider and the terms of that contract upon completion of the acquisition, to ensure stability for residents.

4.       That Health and Adult Services intend to explore opportunities in the future to deregister one or more of these properties, should this option be appropriate, benoted.

5.       That it be agreed to treat the information contained in the Exempt Appendices A – H to this report as exempt information in accordance with the provisions of paragraph 3 of Schedule 12A to the Local Government Act 1972 (as amended) (information relating to the financial or business affairs of any particular person, including the authority holding that information). To agree that this exempt information contained in the Exempt Appendices A-H shall not be released to the press or public.