Agenda item

Report of the Town Clerk (on behalf of the Financial Assistance Working Party).

The Committee considered a report of the Town Clerk relating to the introduction and implementation of a Members Financial Support Policy and seeking approval of proposals relating to administration and cost of the scheme for onward submission to Court of Common Council for final approval.

References within the report to a small number of outstanding matters with HM Revenue & Customs were highlighted, with it suggested that these may require decisions to resolve in the coming period. It was agreed that authority should be delegated to the Town Clerk, in consultation with the Chair and Deputy Chairman of the Committee and the Chairman of the Finance Committee, to take such decisions as may be required to resolve these items.

It was confirmed that budgetary provision would be made for now on a prudent basis which assumed all Members claimed the full amount; however, once the Scheme was embedded and greater clarity around take-up levels was available, this provision could be ameliorated.

RESOLVED: That Members: -

1.     Approve the final draft Members Financial Support Policy including the Extended Members Support Scheme section as set out in the appendix to this report.

2.     Reconfirm the current policy on claims for travel expenses where expense reimbursement only applies when travelling from Guildhall to undertake City Corporation business.

3.     Agree that the Scheme should be administered by an external third party who would receive and validate applications before passing to the City Corporation for payment, with the appointment being made in accordance with the City Corporation’s procurement policy.

4.     Agree that Members should have the ability to claim from the Scheme as soon as it is settled, and a scheme administrator is appointed i.e. in October 2021.

5.     Agree that, given current financial constraints, the tax and NIC incurred on expenses and other benefits in kind liable to tax and NIC (such as the provision of certain meals, with exception of business meals - or accommodation, with the exception of accommodation provided for the betterment of an office) should no longer be met by the City Corporation.

6.     Agree that, notwithstanding desires for anonymity, Internal Audit be given free and unfettered access to information when necessary and decide whether payments should be publicised in aggregate or by named recipients.

7.     Note the potential annual cost of the Extended Member Support element of the Members Financial Support Policy with full take up is £937,500 (not including employer’s NIC where payable or the cost of the scheme administrator).

8.     Agree that the cost of the Scheme be split across City Fund and City’s Cash on a suitable, allocation criteria, e.g. Committee/Board time, employer’s pensions contributions or on the basis on which we split corporate departmental time and consider the options on how this cost should be met;

9.     Subject to final approval of the scheme and the implementation date, note that part year costs incurred in the financial year 2021/22, will be funded from one-off contingencies included within the budget that are no longer needed relating to pay. Future costs are to be included in the 2022/23 budget setting and medium-term financial planning

10.  Agree to the submission of the Scheme to the Court of Common Council for final approval.