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Civic Affairs - Monday, 12th May, 2025 5.30 pm

May 12, 2025 View on council website  Watch video of meeting or read trancript
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Summary

The Civic Affairs Committee met to discuss several key governance and financial matters, including the Annual Governance Statement, the External Audit Plan, and the Cambridge City Council Constitution. The committee also considered the report of the Independent Remuneration Panel on councillor allowances. The committee made recommendations to the Full Council to approve the draft Constitution and to consider the IRP's report on member allowances.

Annual Governance Statement and Local Code of Governance

The committee reviewed and approved the Annual Governance Statement (AGS) for 2023/2024, along with amendments to the Local Code of Corporate Governance. The AGS is a statutory document1 that accompanies the Statement of Accounts, demonstrating the council's compliance with its Local Code of Governance. The report highlighted the progress made on issues reported in the previous year and the arrangements for compiling, reporting on, and signing the AGS.

The Local Code of Corporate Governance is based on seven core principles and is reviewed regularly. The committee had previously reviewed this at the December 2024 meeting and the recommendations from that meeting have been incorporated. The code includes the Seven principles of public life, as it applies to anyone who works for local government and supports good governance.

The report noted that new guidance from the Chartered Institute of Public Finance and Accountancy (CIPFA) is expected in May 2025 and will be incorporated into the 2024/2025 AGS.

External Audit Plan 2024/25

The Civic Affairs Committee reviewed and noted the contents of the EY 2 Audit Plan for 2024/25. The audit plan outlines the scope and timeline of the audit, identified audit risks, and information about auditor independence and fees.

The external auditors are required to review the council’s Statement of Accounts and assess whether the council has proper arrangements to secure economy, efficiency and effectiveness in its use of resources.

The report noted that there have been significant delays in publishing the draft Statement of Accounts for 2023/24 due to resource constraints within the council’s finance team, and a disclaimed opinion will again be issued.

Due to the disclaimed audit opinions for 2022/23 and 2023/24, a process of ‘rebuilding assurance’ is required, which is expected to take place over several years. EY anticipates issuing a disclaimed opinion again in 2024/25.

EY have identified two risks of weakness in respect of the council’s value for money arrangements:

  • The council’s ability to prepare and publish draft financial statements in line with the statutory deadline of 30 June 2025
  • Historic rent regulation breaches as reflected in the regulatory judgement against the council published by the Regulator of Social Housing.

Cambridge City Council Constitution

The committee discussed and recommended that the Full Council approve the draft Constitution, including the Local Government Association model Code of Conduct, to take effect at the Annual Council meeting in May 2025. The Monitoring Officer has the responsibility to ensure the Constitution is up to date and lawful, including making 'housekeeping changes' to ensure it is comprehensible and consistent as required. The Constitution will be reviewed within nine months and any further changes will be adopted through the correct channels.

The Governance Design Group has developed a constitution that reflects agreed governance design principles, including timely, accountable, transparent, and evidence-based decision-making.

Some of the areas that have been updated in the Constitution include:

  • Opposition Chairs for Scrutiny Committees: The Chairs of Overview and Scrutiny Committees will normally be appointed from outside the majority group.
  • Naming of Scrutiny Committees: The first committee will be named Services, Communities and Climate and the second will be Performance, Assets and Strategy.
  • Referral of Motions by the Mayor: The mayor should consult with political group leaders before exercising this power.
  • Requirement for Motions to be Seconded: Motions must be proposed and seconded before debate.
  • Substitutes on Committees: Each group can have up to two substitutes per committee.
  • Cabinet Assistants: The Leader can appoint Cabinet Assistants, with a cap of 40% of the number of Cabinet members.
  • Debate Rules and Amendments: The current practice of debating main motions and amendments concurrently will be maintained.
  • Non-Key Decisions and Forward Plan: Non-key decisions should ordinarily be included in the forward plan for transparency.

Report of the Independent Remuneration Panel

The Civic Affairs Committee considered the report and recommendations of the Independent Remuneration Panel (IRP) following its review of the Council’s current Members’ Allowances Scheme. The committee recommended that the Full Council consider the report and decide whether to adopt the recommendations of the panel in relation to the Member Allowance Scheme.

The IRP introduced a formula for determining the level of basic income, based on the time required to execute the role effectively, the public service discount, and the rate for remuneration. The panel recommended that the basic allowance payable to all Councillors be £7,629 per annum, with indexing for increase starting in April 2025, based on the staff award of 2.5% on Spinal Column Point 56, which was awarded in November 2024. This would equate to a basic allowance of £7,819.

The panel also made recommendations for Special Responsibility Allowances, travel and subsistence expenses, and indexing of the scheme of allowances. The panel recommended that the allowances be reviewed in 12 months to ensure they are fit for purpose and take into account any changes that may occur from the proposed governance arrangements being implemented.

The panel recommended that no Councillor should be entitled to receive at any time more than one Special Responsibility Allowance for any internal Council role and that a Councillor may receive ‘one additional SRA’ when representing the Council on any external organisation or body.

The panel also recommended that the ‘Stationery Allowance’ payment of £75 per annum for each Councillor be withdrawn.


  1. EY (formerly Ernst & Young) is a multinational professional services partnership headquartered in London, England. 

  2. The Regulator of Social Housing is the government body that sets standards for registered providers of social housing and monitors their performance. 

Attendees

Profile image for Councillor Russ McPherson
Councillor Russ McPherson  Labour •  Cherry Hinton
Profile image for Councillor Jenny Gawthrope Wood
Councillor Jenny Gawthrope Wood  Labour •  King's Hedges
Profile image for Councillor Naomi Bennett
Councillor Naomi Bennett  Leader of the Green Group; Green (Spokes) Finance and Resources •  Green •  Abbey
Profile image for CouncillorRichard Robertson
Councillor Richard Robertson  Labour and Co-operative •  Labour •  Petersfield
Profile image for Councillor Patrick Sheil
Councillor Patrick Sheil  Labour •  Arbury
Profile image for CouncillorKaren Young
Councillor Karen Young  Lib Dem (Spokes) Safety, Wellbeing and Tackling Homelessness •  Liberal Democrat •  Queen Edith's
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