Agenda item

LEADER'S ANNOUNCEMENTS

Minutes:

The Leader congratulated the Mayor on his video speech and raising of the flag to celebrate Armed Forces Day.

 

The Leader stated

 

‘Tonight we have some important business on our agenda relating to finance, the establishment of a constitutional review group and reviewing the annual report from our scrutiny committee. We also have three important motions that I look forward to discussing with all members later.

 

First of all I would like to raise the crisis impacting on the agricultural industry throughout the Melton Borough. Agriculture is still one of our largest employers and very valuable to Melton Mowbray. Agriculture has been subjected to a combination of events which have created a perfect storm which started with the torrential rainfall on 29th September 2019 and continued throughout the whole of October, November, December, January and into February. This area was affected more than others and I have witnessed the terrible state of the crops first hand from my frequent journeys to Kings Lynn.  All this is on top of the impact of Covid which has also hit the hospitality and dairy farm industry. I applaud the Government’s financial aid to dairy farmers but farmers mainly work alone and there are concerns for their mental health too. To discuss how the Council can support farmers through this crisis, I will be initiating a meeting between the Council and the National Farmers’ Union.

 

We are now in our fourth month responding to the Coronavirus outbreak and I want to, once again, reiterate my sincere thanks and gratitude for the way this Council has responded. Working with our community and voluntary partners, our Community Hub has delivered over 2,200 food parcels and over 200 prescriptions. Through the government business grants we have paid out nearly £11m to over 950 businesses, as well as providing guidance and support. Throughout this entire time I am proud that we can say we have been ‘here for Melton’ and we will continue to be so now and in the future.

 

The pandemic has clearly had a significant impact both in terms of public health and the economy and we are now refocussing on recovery and how we support our communities and businesses to rebuild. It is not going to be easy and that is why we are calling upon government to do more to support us financially as we lead the local response. At a time when the demand for our services, and need for our support, have never been greater, we are finding ourselves under significant financial pressure. Yes, the government has supported local councils but we are concerned they have not taken account of our individual circumstances and we may still be left with a sizeable gap.  We are still working through the details of the third round of funding but please  be assured that if the funding remains insufficient I will be writing directly to the Secretary of State to make our case for additional help.  

 

As lockdown has started to ease, we have worked closely with local partners to ensure a successful retail, and then more recently, hospitality sector reopening. It has been pleasing to see that the measures introduced have allowed these businesses to reopen safely and the people of Melton have responded very positively. We have also been working hard to enable local businesses to recover as quickly as possible. As well as the grants schemes mentioned earlier we facilitated a business webinar a few weeks ago and relaxed regulations so those providing hospitality can maximise outdoor space. We have also facilitated the start of a new café culture which we hope will start to develop further and help the reinvigoration of our town.

 

Alongside the response and recovery, other areas of business continue. The recent meeting of the Housing Improvement Board continues to show we are making positive progress in this important area of business. As we have got to grips with our long standing housing challenge, health and safety has been of paramount importance the whole time and I am delighted that the steps we have taken to increase compliance over the last year are more and more becoming business as usual.

 

In mid-June we launched our new customer self-service platform, IEG4. This replaced a number of older systems and will enable the Council to significantly improve its online offer to residents. Over the next month we will be increasing our promotion of the new system and encouraging residents to sign up to more online services.

 

We await the government’s white paper into Devolution which we understand is due to be published in the Autumn. We will obviously digest the contents with our neighbouring councils and will consider how we can ensure we are best placed to secure the required increase in investment and focus the East Midlands requires. As you will be aware, improving rail connectivity between Melton and Nottingham has been a long standing aspiration of mine and building on work we undertook last year, alongside our MP, we recently submitted a bid to government for further funding to develop the business case and create a direct access through Syston. I look forward to receiving the outcome from this bid later in the year.

 

I will now turn to the latest developments in relation to the relief road. Firstly I would like to say a huge thank you to the officers of this council for their incredible work to deliver a robust and credible Masterplan within the timescales required. At a time when the vast majority of our resources were being refocussed on responding to the crisis we maintained a commitment to this priority and did not let ourselves or our community down.

 

I am though very frustrated and disappointed by the approach taken by Leicestershire County Council and their attempt to blame this council for their decision not to accept the Housing Infrastructure Fund. From the outset I must start by reminding everyone that they are the highways authority and they are the education authority. We have worked with them and will continue to do so, but  the bottom-line is that if they choose not to accept the Housing Infrastructure Fund then it is a matter for them, and something for which they must accept responsibility.

 

It is worth reminding ourselves of what has taken place to get us to this point:

 

1.    In October 2018 our Local Plan was adopted, which included the three parts of the relief road but no secondary school.

2.    Even before the  ink was dry on our Local Plan, the County Council massively increased their requirements for developer contributions for education which created the need for additional primary schools and another secondary school which weren’t in the original plan.

3.    Inevitably this put huge pressure on viability, but we have worked with them to overcome this and in November 2019 we agreed the basis of a risk share agreement to support infrastructure costs.

4.    We understood that everything was then in place for the Housing Infrastructure Funding to be secured but in February 2020 the goal posts changed again and they now needed the Masterplan to be completed before they would accept the HIF money.

5.    Even in the middle of the current crisis we diverted resources to accelerate delivery of the Masterplan, which we did on time and to an excellent standard.

6.    Now they tell us that is not enough and we have to provide a ‘guarantee’ on developer contributions.

 

So what exactly does a guarantee mean?  They haven’t told us, but in the last 5 years, Melton Borough Council has secured over £32m towards County Council services and infrastructure. This compares to just £3m secured for all other agencies including ourselves during that time. £25m of this is for the MMDR and education. Of the 55 s106 agreements processed during that time there are only 2 where the County Council’s full requests have not been met; and the value of these was very low. In financial terms over the last 5 years Melton Borough Council has secured 99.5% of what the County Council has asked for. If this level of past performance doesn’t provide the required assurance or the ‘guarantee’, what would? 99.7%, 99.9%?  What more do they want?

 

As recently as April we offered to form a joint delivery team with the County Council so that we could work together on securing the HIF.  This was rejected by them.

 

We remain ready to refresh the current viability appraisal and work with the County Council on a development strategy which could be completed in a matter of weeks. We are happy to review options which would assist with improving viability and which could still see the HIF money secured.  

 

Melton Borough Council has done everything it possibly can to deliver the road and to suggest otherwise is both illogical and totally unjustified. This is their responsibility and they cannot just pass the buck.

 

I feel I also have to share my disappointment in relation to the conduct of the Leicestershire County Council colleagues at their recent Cabinet meeting where this was discussed.

 

At a time of national crisis, we should all be working together for the benefit of our communities, not seeking to disrespect, criticise or undermine each other. There is a £30m investment in Melton at stake and seeing County Council Cabinet Members, smirking and making some highly unprofessional comments about Melton Borough Council during their meeting was totally inappropriate and unjustified. I am also extremely concerned by some of the reasons their Cabinet gave for not accepting the HIF money. 

 

The Portfolio Holder for Finance and Resources suggested the development of the Masterplan had not involved the Developers. This is just plain wrong and the main developers were fully engaged in the process and supportive of the preferred options. With the question of viability such a key consideration, it is deeply troubling that his decision was made on the basis of this inaccurate understanding.

 

Equally concerning was the suggestion by the former Portfolio Holder for Children’s Services that the level of developer contributions associated with a live, un-determined planning application was a justification for refusing the HIF money. As mentioned previously, our performance in securing infrastructure funding for the County Council is impeccable, with 99.5% of requests secured over the last 5 years.  There is simply no justification for refusing the HIF money on this basis.   

 

I raised this very point with the County Council’s Portfolio Holder for highways at the recent Members Advisory Group, and challenged him to explain his own reasoning for rejecting the money and what he was going to do about the risk it creates for infrastructure delivery more generally across Leicestershire. He did not respond.

 

It was ironic that the County’s Deputy Leader articulated precisely the challenge faced by planning authorities like ourselves; sharing his experience of developers wanting to renegotiate s106 agreements. We certainly recognise that challenge and I would also welcome his thoughts for how we might prevent that in future - if we are to provide the kind of  ‘guarantee’ seemingly required by the County Council?

 

We fully appreciate the significant risk faced by the County Council in relation to infrastructure funding, but as I have demonstrated, we have done all we can to support them – delivering our Local Plan, establishing the basis for a  risk share agreement, securing 99.5% of developer contributions they have asked for and completing the Masterplan on time. If the County Council chose not to accept the HIF money it is their decision, and their failure to follow through on the commitment they made. If that is what they want to do, they need to grow up, be brave and accept responsibility for that decision, rather than blaming us or anyone else. 

 

We continue to liaise with Homes England and even now, we stand ready to work with the County Council, in good faith, to secure the HIF money and deliver the road. It is not too late and we await their response.’

 

Councillor Holmes thanked the Leader for taking the time to look into the difficulties faced by the agricultural industry and offered her support in providing statistics during this time.

 

Councillor Cumbers agreed that it was a sensible approach to meet with the NFU and work out a way forward to help the local farming industry.

 

The Leader thanked the Councillors for their comments and for recognising the seriousness of the situation that farmers are facing at the current time.