Agenda, decisions and minutes

To receive apologies for absence.

Apologies were received by Councillors Jina Gwyrfai, Medwyn Hughes, Meryl Roberts and Rob Triggs

To receive any declaration of personal interest.

The following members declared an interest in relation to item 6 as they owned a second home / long-term empty house

Councillors Menna Baines, Angela Russell, Huw Rowlands. Clare Hitchcock and Rhys Parry

In accordance with advice received from the Monitoring Officer, the Members were of the opinion that it was a prejudicial interest and they withdrew from the meeting during the discussion on the item.

To note any items which are urgent business in the opinion of the Chairman so they may be considered.

None to note

The Chairman shall propose that the minutes of the meeting of this committee, held on 13^th October 2022, be signed as a true record.

The Chair signed the minutes of the previous meeting of this committee, held on 103 October 2022 as a true record.

To consider the report for information

DECISION:

1.    To accept the report

2.    To accept the suggestion to remove the item when the action has been completed.

a)    In accordance with a request made by the Committee at its meeting on 08/09/22 a report was submitted which provided an outline of how Council departments had responded to the Governance and Audit Committee's decisions so that Members could be assured that their decisions were being addressed.  It was reiterated that the report provided an opportunity for Members to consider the decision made with a view to deleting the item / decision once the action was completed.

Thanks were expressed for the report.

b)    During the ensuing discussion, the following observations were made by members:

·         That the report was a positive response to the Members' request

·         It was a good way to keep an eye on the Committee's work and decisions

c)    It was proposed and seconded to accept the report

            RESOLVED:

1.    To accept the report

2.    To accept the suggestion to remove the item when the action has been completed.

To consider the information in the report and the appendices in order to conclude if the risks have been mitigated

DECISION:

·         To accept that the information in the report and appendices conform to the statutory guidance and legislative requirements

·         Propose the following observations for the Cabinet's consideration when deciding upon a recommendation to submit to the Full Council to make a final decision on the premium levels:

·          

1.    There is a need to complete a comprehensive linguistic assessment in accordance with the Council's Language Policy

2.    There is a need to consider the impact of the premium on the ability of 'native people' to make a living

3.    There is a need to see statistics that demonstrate the impact of premium on restoring empty homes

4.    There is a need for evidence about the success of the premium. What has been achieved to date?

5.    There is a need for further consultation on the use of the premium.

What is the justification for using the second homes premium to fund homelessness? While accepting that the principle is acceptable, what is the evidence behind the decision?

6.    The considerations surrounding the premium must be made in conjunction with the Welsh Government's legislation and measures to control second homes

a)    The report was submitted to seek opinion and observations from the Committee on the procedure for submitting a report to the Cabinet that would recommend that the Full Council sets the level of the Council Tax Premium for 2023/24. It was noted that the Committee was statutorily required to review and scrutinise the Council's financial matters including ensuring that the Council acted appropriately and that the information submitted to the Cabinet and the Full Council for decisions, was robust information.

The Committee was asked to consider;

• Did the information clearly clarify the statutory requirements?

• Was the Equality Impact Assessment suitable?

• Had the Council consulted with stakeholders in an appropriate manner?

• Was the report clear about the implications of the decision sought?

• Were the risks clear?

It was reported that the Council, on the 8 December 2016, had decided to raise a Premium of 50% on Council Tax for second homes and long-term empty homes, to be implemented from 1 April 2018.  On 4 March 2021, the Council had resolved that the Council would increase the Premium to 100%, namely the highest level possible under the legislation, for the 2021/22 financial year, and on 2 December 2021 it was resolved to retain the Premium at 100% for 2022/23.

By now, the Council Tax (Long-term Empty Dwellings and Dwellings Occupied
Periodically) (Wales) Regulations 2022 (SI 2022/370 W.90) had amended
Sections 12A and 12B of the 1992 Act giving the Authorities the power to raise a premium of up to 300% on the Council Tax of second homes and long-term empty homes for the 2023/24 financial year and the subsequent financial year.

A public consultation had been launched between 30 September 2022 and 28 October 2022 and 7,330 responses had been received to the questionnaire (7,277 responses to the on-line questionnaire and 53 paper responses - this was the largest number of responses the Council had received to any consultation in recent years).

It was highlighted, in the context of a statutory duty to undertake impact assessments on equality, that an Equality Impact Assessment had been updated to reflect requirements and developments, changing circumstances and the results of the recent consultation. It was reiterated that any recommendations from the Cabinet would have to ensure justification for the increase and that relevant research confirmed the need to act reasonably on the matter.

Reference was made to 3 options

·         Keep the Premium level at 100% in 2023/24

·         Increase the Premium to the maximum allowed under the law of 300% in
2023/24.

·         Set the Premium somewhere between 100% and 300% in 2023/24.

It was noted that should the premium be abolished, Gwynedd Housing Strategy Action Plan would suffer.

The Cabinet Member for Finance highlighted that a report to the Cabinet on 22-22-22 had already been published, recommending increasing the premium to a rate of 150%.  The increase  ...  view the full minutes text for item 6.

To consider the report for information

DECISION:

To accept the report, for information

a)    Submitted, for information, a report highlighting the Council's actual Treasury Management activity during the current financial year. At a meeting of the Full Council in March 2022, the Treasury Management Strategy had been approved for 2022/23. It was highlighted that, during the six months between 1 April and 30 September 2022, the Council’s borrowing activity had remained within the limits originally set  and there had been no defaults by banks in which the Council had deposited money. It was reiterated that it was estimated that the Council's investment income exceeded the expected income in the 2022/23 budget.

It was explained, in the external context that it had been a challenging time for the markets with political uncertainty and the continuing impact of the conflict in Ukraine. Consequently, inflation had increased at exceptional speed along with the basic interest rate.

Reference was made to a summary of treasury management noting that on 30 September 2022, that the situation was sound with £1-4.8 million in loans, and £110.5 million in investments.  It was highlighted, that despite the possibility of repaying some of the loans with the investments, it was noted that the cost of repaying these loans would be very high as they has historically high interest rates, and with increasing interest rate the situation would be continually assessed in case there would be an advantage to making early repayments.

In terms of borrowing matters, reference was made to the Borrowing Strategy where no additional borrowing has been required during the period. The Council's main objective was to strike an appropriate low risk balance between ensuring low interest costs and ensuring cost assurance over the period the money was required, with flexibility to renegotiate loans should the Council's long-term plans change the secondary objective.  The Council's Borrowing Strategy continued to address the key affordability matter without compromising the stability of long-term debt in the borrowing portfolio.

Should there be a need to borrow any time in the future, it was noted that the Public Works Loans Board borrowing guidelines had been amended and they no longer permitted the Council to borrow to make a profit. It was reiterated that this was not a practice for the Council in any case.

In terms of investment activity, there was reference to the type of investments made, which, as usual, included banks and building societies, local authorities, financial market funds, pooled funds and the Debt Management Office. It was reported that the interest rates on the investments had improved by about 1.5% during the time in question, and it was anticipated that rates would increase further in coming months. This meant that the expected interest level for the financial year would be significantly greater than the budget forecast (the budget was £0.4 million, but an income of £1.8 million was expected  ...  view the full minutes text for item 7.

To consider the report and offer any relevant observations or suggestions

DECISION:

·         To accept that the Council's arrangements and performance in relation to dealing with complaints and service improvements are extremely effective.

·         That the report, in future, will be submitted to the Governance and Audit Committee prior to the Cabinet.

Suggestions:

·         To include an observation on the positive impact that complaints can have on the Council's performance.

·         To include a summary of the main fields / developmental fields that receive complaints

·         Categorise or set out a wider context for the departments that receive the majority of the complaints, in order to understand the circumstances

·         The Chair to revisit the Committee's responsibilities - should there be an overview of 'all Council departments' (including Care Services and Education that have their own statutory arrangements)?

a)    Submitted, for information, a report highlighting the Council's actual Treasury Management activity during the current financial year. At a meeting of the Full Council in March 2022, the Treasury Management Strategy had been approved for 2022/23. It was highlighted that, during the six months between 1 April and 30 September 2022, the Council’s borrowing activity had remained within the limits originally set  and there had been no defaults by banks in which the Council had deposited money. It was reiterated that it was estimated that the Council's investment income exceeded the expected income in the 2022/23 budget.

It was explained, in the external context that it had been a challenging time for the markets with political uncertainty and the continuing impact of the conflict in Ukraine. Consequently, inflation had increased at exceptional speed along with the basic interest rate.

Reference was made to a summary of treasury management noting that on 30 September 2022, that the situation was sound with £1-4.8 million in loans, and £110.5 million in investments.  It was highlighted, that despite the possibility of repaying some of the loans with the investments, it was noted that the cost of repaying these loans would be very high as they has historically high interest rates, and with increasing interest rate the situation would be continually assessed in case there would be an advantage to making early repayments.

In terms of borrowing matters, reference was made to the Borrowing Strategy where no additional borrowing has been required during the period. The Council's main objective was to strike an appropriate low risk balance between ensuring low interest costs and ensuring cost assurance over the period the money was required, with flexibility to renegotiate loans should the Council's long-term plans change the secondary objective.  The Council's Borrowing Strategy continued to address the key affordability matter without compromising the stability of long-term debt in the borrowing portfolio.

Should there be a need to borrow any time in the future, it was noted that the Public Works Loans Board borrowing guidelines had been amended and they no longer permitted the Council to borrow to make a profit. It was reiterated that this was not a practice for the Council in any case.

In terms of investment activity, there was reference to the type of investments made, which, as usual, included banks and building societies, local authorities, financial market funds, pooled funds and the Debt Management Office. It was reported that the interest rates on the investments had improved by about 1.5% during the time in question, and it was anticipated that rates would increase further in coming months. This meant that the expected interest level for the financial year would be significantly greater than the budget forecast (the budget was £0.4 million, but an income of £1.8 million was expected  ...  view the full minutes text for item 8.

To consider the contents of the draft document for 2021/22 and propose any comments and recommendations. 

DECISION:

·         To accept the draft self-assessment

·         To welcome the intention of including the self-assessment in the Council's Annual Performance Report in future

·         To ensure that the report is submitted earlier in the year

Suggestion:

·         To consider including a reference to the support and training provided to Elected Members

a)    It was highlighted that this was the first time for the report to be submitted to the Committee in accordance with the new statutory requirement within the Local Government and Elections (Wales) Act 2021 which outlined that the Committee had to review the draft report and make recommendations for changes to the conclusions of the steps the Council intended to take.  If the Council did not make a change recommended by the Governance and Audit Committee, it had to note the recommendation and the reasons why the Council did not implement the change in the final self-assessment report.

It was reported that the Council had already gathered and published much information and evidence that was expected within the Self-assessment, and consequently  the self-assessment report was relatively concise with references to further information documents in order to avoid duplication. It was highlighted that an effort had been made to keep the document concise and easy to understand and accepted that the report had been submitted late in the process this year. It was reiterated that it was the Governance Group that had provided an overview of the process within the Council to ensure that the work was owned and led on a strategic level. It was noted that the intention for the future would be to include the Self-assessment in the Council's Annual Performance Report so that all the information was contained within one document.

b)    Thanks were expressed for the report.

c)    During the ensuing discussion, the following observations were made by members:

·         Welcomed the report, but needed to accept it before it was submitted to the Cabinet

·         Appreciate that the self-assessment is included as part of performance management

ch) It was proposed and seconded to accept the report

            RESOLVED

·         To accept the draft self-assessment

·         To welcome the intention of including the self-assessment in the Council's Annual Performance Report in future

·         To ensure that the report is submitted earlier in the year

            Suggestion:

1.    Consider including a reference to the support and the training given to Elected Members and Lay Members

To consider and accept the reports

DECISION:

·         To accept the Quarter 2 update on the Audit Wales work programme – Cyngor Gwynedd

·         To receive Cyngor Gwynedd's response to the Audit Wales report 'Springing Forward' that focuses on the Council's response to future working arrangements

10.1    QUARTER 2 UPDATE ON THE AUDIT WALES WORK PROGRAMME – CYNGOR   GWYNEDD

a)      Submitted - a quarterly update (up to 30 September 2021) on the work programme and timetable of Audit Wales. A discussion was held on the financial audit and local performance audit work, highlighting that the Annual Report would be submitted in the new year.  It was noted that a vast part of the audit of accounts has been completed, but that Cyngor Gwynedd's Final Accounts had not been completed due to a national matter relating to the valuation which affected every Local Authority. The hope was to have a solution soon and submit the final report at the end of January 2023. Reference was made to national reports and other outputs published by Audit Wales since April 2022 which included an Equality Impact Assessment and Addressing Poverty in Wales.

b)      Thanks were expressed for the report.

c)      In response to a question on reviewing the Effectiveness of Scrutiny, it was confirmed that this referred to reviewing Cyngor Gwynedd arrangements only.

10.2       LLAMU YMLAEN – CYNGOR GWYNEDD

a)    Submitted - a report which considered how the Council strengthened its ability to transform, amend and continue to provide services, including those provided in partnership with key stakeholders and communities. Also submitted was the Council's response to the Audit Wales recommendation.

It was explained that the arrangements for managing assets and the workforce were being reviewed and that the recommendations had been approved (although here was a need to ensure that amendments and plans were sustainable - an appropriate timetable formed). It was noted that developing the use of data had been identified as one of the main priorities with the Digital Transformation Board established to form the Council's Digital Strategy that would focus on data, administration and customer liaison.

b)    Thanks were expressed for the report.

c)    During the ensuing discussion, the following observations were made by members:

·         Welcome developing the use of data  to form planning processes, set a budget and measure longer-term success

·         That the response of the Managers was effective - the format was convenient and easy to read

·         That the response was positive

In response to a question regarding updating the Committee on the work programme, it was noted that some of the matters were considered as improvement priorities over the next five years and were sure to receive timely attention from the Committee.

RESOLVED

·         To accept the Quarter 2 update on the Audit Wales work programme – Cyngor Gwynedd

·         To receive Cyngor Gwynedd's response to the Audit Wales report 'Springing Forward' that focuses on the Council's response to future working arrangements