Agenda item

(CSP: BEC P&S HQL MEC BEC1 BEC2 HQL1 MEC1)

Purpose: To consider Hungerford Town Council’s (HTC) proposal to lease the Hungerford library building so that HTC can develop a range of community activities and the council can maintain the Library Service there while meeting the savings target for the service.

Resolved to agree to grant the leasehold of the Hungerford Library building on a 99 year lease at a peppercorn rent for the purposes of library and other community uses subject to:

·         a short period of public consultation in the Hungerford area followed by a Stage 2 Equalities Impact Assessment to assess whether the proposal has any negative impacts for the public.

·         agreements on the Heads of Terms of the freehold transfer to ensure that the arrangement meets the saving in the libraries budget while facilitating greater community use of the building.

·         final approval by the Council’s Executive – or by a delegated decision (as required).

Resolved to agree this in principle so that Hungerford Town Council can progress their proposal and West Berkshire Council can make the budget saving required for the Library Service.

This decision is not subject to call in as:

·      a delay in implementing the decision could compromise the Council's position.

therefore it will be implemented immediately.

The Executive considered a report (Agenda Item 6) concerning a proposal from Hungerford Town Council to take on the lease of the Hungerford Library building so that the Town Council could develop a range of community activities and the Council could maintain the Library Service in the area whilst meeting the savings target for the service.

Councillor Dominic Boeck explained that this proposal would form part of the Council’s plans to save £690k from the overall Library Service in 2017/18. The identification of this sum followed a detailed review. The implementation of the new Library Service commenced on 3 July 2017.

In terms of Hungerford Library specifically, the net cost of operating the library for 2017/18 was £33k (a saving of £28.5k on the 2016/17 cost following a reduction in staffing), on the proviso that Hungerford Town Council made an annual contribution of £5.5k which was based on the local population (equivalent to approximately £1 per resident). This was the contribution being sought from all parishes as part of the Council’s plans for the new Library Service.

Hungerford Town Council, after considering this request, came forward with the proposal, in conjunction with the Friends of Hungerford Library, to transfer the lease of the library to themselves. They would form a Charitable Incorporated Organisation (CIO) that would take on the responsibility for the operation and maintenance of the library within the framework of the Library Service. Approval of the Town Council’s proposal would enable the staffing level prior to 2017/18 to be re-established and maintained. It would also bring the net cost incurred by West Berkshire Council to £31k for 2017/18 (a saving of £30.8k).

Councillor Boeck gave his support to the Town Council’s proposal as it would achieve benefits for all parties concerned and would achieve additional savings. He proposed acceptance of the recommendations to agree to this proposal in principle, the detail of the agreement could then be pursued and costs finalised prior to final approval. Councillor Boeck added that he felt this was an excellent example of communities working with West Berkshire Council for the benefit of local residents. Specifically, it reflected the friendly relationship that had been established between West Berkshire Council and Hungerford Town Council.

Councillor Graham Jones seconded the proposal, he endorsed the approach that had been developed and the community benefits it would bring.

Councillor Hilary Cole explained that she commenced the process of reviewing the Library Service when she was the previous Portfolio Holder and she expressed her delight at the progress that had been made for Hungerford Library. She gave thanks to Councillor Boeck, Officers, Hungerford Town Council and the Friends of Hungerford Library for all their work. Councillor Cole also gave special thanks to Mr Keith Knight of Hungerford Town Council. Mr Knight played a big part in championing this initiative from the outset and it would achieve an outstanding benefit for the residents of Hungerford in an area of importance to the local community.

Councillor Marcus Franks commented that this was a great example of the devolution agenda working well, enabling this service to be enhanced to help meet the needs of the local community. He highlighted that a bid had been made to the Community Solutions Fund to help take this forward. Finally, Councillor Franks stated that Devolution was on the agenda for discussion at the District Parish Conference being held on 7 November 2017.

Councillor Alan Macro noted that the library would be operated by a CIO, but he queried what would happen in the event that the CIO was unable to continue and how West Berkshire Council would respond in ensuring that the service continued to operate.

Councillor Macro also noted that the CIO would be eligible for the mandatory 80% rate reduction and were likely to also be eligible for the extra 20% discretionary rate relief under the current policy criteria. Therefore, while savings would be achieved, reduced rates would impact on the Council’s finances. Councillor Macro sought clarity as to whether the CIO’s business plan was reliant upon receiving the extra 20% discretionary rate relief.

Councillor Boeck clarified that the CIO was working on the assumption that they would receive the additional 20% of discretionary rate relief. In response to the question in relation to the CIO’s sustainability, he stated that West Berkshire Council would support the Town Council/the Library in achieving an alternative and sustainable business model should this prove necessary.

Councillor Macro requested that the agreement documented the actions that would be taken should the CIO fold.

Councillor Boeck reiterated that the Executive was being asked to agree to the proposal in principle at this stage. The final agreement would be signed off under a delegated decision or by the Executive as necessary. However, Councillor Boeck agreed that he would take Councillor Macro’s comments on board when finalising the agreement.

RESOLVED that:

(1)       The Executive agree to grant the leasehold of the Hungerford Library building on a 99 year lease at a peppercorn rent for the purposes of library and other community uses subject to:

-   a short period of public consultation in the Hungerford area followed by a Stage 2 Equalities Impact Assessment to assess whether the proposal has any negative impacts for the public.

-   agreements on the Heads of Terms of the freehold transfer to ensure that the arrangement meets the saving in the libraries budget while facilitating greater community use of the building. With consideration given to safeguards that would be put in place should the CIO fold.

-   final approval by the Council’s Executive – or by a delegated decision (as required).

(2)       The Executive make this in principle decision so that HTC can progress their proposal and West Berkshire Council can make the budget saving required for the Library Service.

Other options considered:

·         Continuing with the current arrangements. This would not deliver the increase in usage for community activities and not engage with HTC is a long-term and sustainable solution for the Library Service and the building.

·         Selling the building on the open market would reduce community amenity for residents. The site is centrally located off the centre of the High Street and therefore accessible to all residents.