The Scrutiny Streets & Environment Sub-Committee met on 30 January 2024 to review the council's financial performance, scrutinise budget proposals, and discuss local development plans. Key decisions included noting the Period 7 Financial Performance Report, which indicated a breakeven forecast for the General Fund revenue budget, and reviewing three budget proposals related to parking policy changes, SEND transport growth, and the deferral of highways maintenance budget growth.

Period 7 Financial Performance Report

The Sub-Committee reviewed the Period 7 Financial Performance Report, which covers the council's financial standing up to October 2023. Councillor Ria Patel, Chair of the Sub-Committee, questioned the realism of the forecasted breakeven for the 2023/24 financial year. The Corporate Director of Sustainable Communities, Regeneration & Economic Recovery (SCRER), Nick Hibberd, confirmed that at Period 7, the forecast remained a breakeven position.

Concerns were raised about budget variances and a vacancy within the Culture team. It was explained that this vacancy was outside the 'Borough of Culture' funding, which is grant-funded and would not be affected. Information on specific vacancies within the Culture team was promised for after the meeting.

Risks associated with income volatility in the Parking and Planning departments were discussed. Members asked what measures could be taken to generate income in these areas in a less demand-led manner. The Corporate Director of SCRER acknowledged that these income budgets were inherently vulnerable to economic changes and demand fluctuations but stressed the importance of setting realistic targets and forecasts.

Underspends due to reduced utility costs were attributed to successful bids for government funding to subsidise energy costs for swimming pools and leisure facilities.

Regarding the 'Planning Skills Delivery Fund' bid, the Director of Planning & Sustainable Regeneration, Heather Cheesbrough, confirmed that the council had submitted multiple bids for planning grants and that further details on these and their outcomes could be provided post-meeting.

The Sub-Committee discussed the predicted underachievement of income from major planning applications. The Corporate Director of SCRER explained that major applications are a significant source of planning income, and while several major schemes are in development, developers determine the submission timing. Reductions in major applications in 2023/24 were attributed to increased development costs and new regulatory requirements, though Croydon still had a good number of such applications compared to other boroughs. Predictions for future income are based on historical data, upcoming developments, and other relevant factors.

The impact of decreased demand for parking post-pandemic was discussed, with the Corporate Director of SCRER acknowledging behavioural changes but noting some recovery as people returned to office-based work.

Regarding Automated Number Plate Recognition (ANPR) cameras, the Head of Highways & Parking Services, Jayne Rusbatch, explained that 119 out of 125 cameras were operational, with six offline due to vandalism, some of which was linked to the Ultra Low Emission Zone (ULEZ). Anti-vandal collars and signage have been implemented.

A significant issue with the printing of approximately 3,100 Penalty Charge Notices (PCNs) between October and December 2023 was raised, which prevented motorists from accessing discounted payment rates. The Corporate Director of SCRER apologised, stating that affected individuals would be contacted, PCNs cancelled, and any erroneous fines refunded. The parking enquiry email auto-reply has been updated, and letter templates are being reviewed for statutory compliance.

The framing of staffing underspends as an opportunity was questioned, with concerns raised about potential risks to service delivery. The Corporate Director of SCRER explained that vacancies aided in achieving a balanced budget for 2023/24 but acknowledged recruitment challenges and the time taken to fill posts.

Requests for Information:

• Details on current vacancies in the Culture and Community Safety Division contributing to a £0.4m underspend.
• Factors contributing to a £0.1m underspend for the Coroner's Service.
• Information on planning bids submitted in 2023/24, including the 'Planning Skills Delivery Fund', detailing amounts, purposes, and outcomes.

Budget Scrutiny Challenge

The Sub-Committee scrutinised three budget proposals for 2024/25: changes to parking policy fees and charges, growth in SEND transport, and the deferral of highways maintenance budget growth. The committee assessed whether these proposals were deliverable, sustainable, understood the impact on service users, and if alternatives had been explored.

2024-28 SAV SCRER 002 - Fees and charges - Changes to parking policy

Members questioned the potential for increased parking income based on trials and insights from the South Croydon parking trial. Jayne Rusbatch, Head of Highways & Parking Services, explained that cashless parking trials indicated a drop in transactions, suggesting some meter feeding in district centres, though this was yet to be quantified. The Parking Policy Consultation sought views on potentially introducing a nominal fee for free parking in district centres, with analysis of results ongoing to inform future savings.

Engagement with local businesses regarding PayPoint locations was discussed, with the Council needing to liaise with PayPoint and RingGo. Investigations into alternative payment methods for those without app or phone access are underway. SMS charges from RingGo reminder texts were acknowledged, with users able to opt-out.

Income targets for ANPR cameras were based on average yields and 2023/24 contravention data, factoring in compliance with schemes like Healthy School Streets. Trial sites for parking were chosen to represent diverse areas of the borough. The council is benchmarking parking recovery rates with other London boroughs.

Recruitment for Civil Enforcement Officers is ongoing, with a target of 40 officers. The use of 'Sidem' software for intelligence-led enforcement is being developed, with potential savings anticipated in the 2025/26 budget. The 'Love Clean Streets' app is being promoted for reporting parking violations, and its use is monitored monthly. The PCN printing issue is expected to result in a small percentage of refunds, impacting the overall budget.

The council is reviewing its emissions-based charging scheme and comparing tariffs with neighbouring boroughs to support the local economy. The achievability of the 2023/24 parking income budget was deemed realistic based on current and past data. Modelling of the impact of changes to charges on local businesses is challenging but aims to balance shop accessibility with discouraging all-day parking. Resident engagement through the Parking Policy Consultation has been diverse, with learning from cashless trials on communication.

Conclusions:

• The Sub-Committee encouraged continued engagement with residents and businesses on parking policy changes.
• Support was expressed for promoting the 'Love Clean Streets' app for reporting parking contraventions.
• The introduction of nominal charges in district centres was supported in principle, but the need for balance to avoid negatively impacting local businesses was highlighted.
• The potential for savings through intelligence-led enforcement using 'Sidem' software was noted, with savings not expected in the 2024/25 budget.
• Parking income targets for 2024/25 are considered realistic, factoring in increased compliance with schemes like Healthy Neighbourhoods.

2024-28 GRO SCRER 003 - SEND Transport – Growth Proposal

Members inquired about the Dynamic Purchasing System (DPS) for contractors, noting that while contractors can join, market capacity is constrained due to factors like the availability of ULEZ-compliant vehicles and registered taxi drivers. The proposed 5% growth for SEND Transport was questioned given higher demand increases, with the Corporate Director of SCRER explaining the need for tight budget management and efficiencies through the Transformation Programme.

Engagement with the Voluntary and Community Sector (VCS) is ongoing, with a local provider being considered for service delivery due to lower costs. Reductions in single-person transport were linked to a decrease in high-cost out-of-borough placements. Croydon transports more students than other London boroughs due to its population size, but the percentage of students using transport for out-of-borough placements is a more representative figure for cost comparison.

Safeguarding measures include risk assessments, DBS checks for drivers, and Level 1 Safeguarding qualifications. Personal Travel Budgets (PTBs) are paid at a fixed rate, with increased costs likely due to different journeys or families. Phase 2 of the Transformation Programme is exploring Muster Points for potential cost savings, though this may not suit all students.

Discussions with the SEND department aim to ensure sufficient in-borough provision to reduce transport costs. The council does not receive specific government funding for SEND transport, but the 'Safety Valve' process is being discussed for broader SEND cost pressures. Contractor quality is monitored through a contract compliance programme. Complaints are typically related to crew changes or breakdowns in provider-family relationships, with council intervention to resolve issues.

Conclusions:

• Exploration of commercial uses for the SEND Transport fleet was supported, with optimism for potential income generation.
• Concerns were raised about whether a 5% growth would be sufficient for rising SEND Transport demands and cost inflation.
• The Transformation Programme is addressing SEND Transport efficiencies, but Phase 2 savings are not yet fully understood.
• Muster Points were acknowledged as a potential saving, but their budget impact was considered limited and not suitable for all students.

2024-28 SAV SCRER 006 - Deferral of growth in highways maintenance

Members questioned why Croydon's spending on reactive highways maintenance exceeded the London average. The Highway Asset Manager explained efforts to shift towards a proactive approach to reduce costs, noting that loss of TfL funding impacted the ability to address principal road networks. The deferral of £1 million in growth for highways maintenance was clarified as a one-year postponement, not a budget cut, with additional government funding from the 'Network North' announcement (£0.382m for 2023/24 and 2024/25) expected to mitigate the impact. This growth is planned for inclusion in the 2025/26 budget.

The deferment will involve prioritising safety-critical works over less essential tasks. Flood alleviation will not be affected. The Corporate Director of SCRER acknowledged that highways require investment but stated that challenging budget decisions are necessary across the council.

Conclusions:

• The Sub-Committee expressed concern that this saving could increase the highways investment backlog, potentially leading to higher future costs.
• Support was given for the £1 million growth proposed for the highways maintenance budget in 2025/26, but concern remained about a potential real-terms cut compared to 2022/23.
• Reassurance was provided that a risk-based approach would be used for highways maintenance to ensure safety within budget constraints.
• The additional government funding was welcomed but acknowledged as insufficient to fully offset the deferment of growth.

Local Development Scheme Projects and Infrastructure Funding Statement Update

The Sub-Committee received an update on projects within the Local Development Scheme (LDS) and a summary of the 2022/23 Infrastructure Funding Statement (IFS).

Members inquired about an increase in complaints regarding residential extensions following the revocation of the Croydon Suburban Design Guide Supplementary Planning Document 2 (SPD2). The Head of Spatial Planning, Growth Zone and Regeneration explained that a new SPD would replace the household extensions component, and the Local Plan is currently used for determinations based on character and appearance. An increase in enforcement activity was noted, not necessarily linked to the SPD2 revocation.

Comparisons of Croydon's Community Infrastructure Levy (CIL) charging schedule with neighbouring boroughs were discussed, with the Head of Spatial Planning, Growth Zone and Regeneration explaining that rates are influenced by local development viability, costs, and market values. Croydon's CIL charging schedule was set at £120/m2 in 2013 and indexed annually.

The collection rate of CIL was discussed, with it becoming payable upon commencement of development, making non-collection rare due to enforcement mechanisms. A reduction in CIL collected in recent years was attributed to market conditions and developer activity.

The timeline for the consultant's review of the CIL charging schedule has slipped due to a focus on the Local Plan Review, but the consultant's report is complete, and work will resume shortly.

The process for reviewing Conservation Area Appraisal and Management Plans (CAAMPs) involves resident consultations, walkabouts, drafting, further consultation, and a public meeting before adoption.

Transparency regarding CIL collection and spending was discussed, with the CIL charging schedule and IFS published on the council website. The Cabinet Member for Planning and Regeneration noted that CIL is discussed with residents' associations.

Delays in the Local Development Scheme (LDS) production were explained by the Local Plan's priority, staffing issues, and legislative changes. A detailed timeline is being developed to manage the production of additional documents alongside the Local Plan.

Regarding unallocated CIL, the Head of Spatial Planning, Growth Zone and Regeneration explained that funds are held for future years due to the development activity-dependent nature of CIL collection. A requirement for £6.4 million annually to support the Capital Programme necessitates caution in CIL allocation. The possibility of increasing councillor access to CIL, potentially through Ward Budgets, was raised. Borough CIL supports the Capital Programme for projects mitigating growth outlined in the Local Plan, while the 'Local Meaningful Proportion' supports communities. Section 106 funds are encouraged for projects with time constraints or specific locations.

The Chair requested clarification on unspent funds for CIL Local Meaningful Proportion projects and Vehicle Charging Points. Information on the 115 new affordable homes secured through Section 106 agreements in 2022/23, unspent Section 106 monies related to affordable housing, and their connection to the Housing Strategy was also requested. A summary of projects from Table 4 detailing infrastructure spending was requested.

Conclusions:

• The Sub-Committee acknowledged the publication of the CIL charging schedule and IFS online but encouraged officers to explore additional communication methods for members and residents regarding CIL spending.

Recommendations:

• The Council should consider ways to engage residents to determine their views on CIL spending priorities and enhance communication about CIL schemes like 'On Street Secure Cycle Hangers'.

Cabinet Response to Scrutiny Recommendations and Scrutiny Work Programme 2023-24

The Sub-Committee noted the report on Cabinet's responses to scrutiny recommendations and the draft work programme for 2023-24. Potential additions to the work programme were discussed, including Vision Zero, Road Safety, illegal parking, 20mph speed limits, and Street Lighting.

The meeting concluded at 9:45 pm.