The Strategy and Resources Committee of North Devon Council met on 11 August 2025, and discussed local government reorganisation, performance reports for the first quarter of 2025/26, and a potential land acquisition. The committee approved recommendations regarding the work programme for 2025-26 and the minutes of the previous meeting. They also agreed to exclude the public and press from a portion of the meeting to discuss confidential information.

Local Government Reorganisation

The committee received an update on the ongoing local government reorganisation (LGR) process. The Chief Executive reported that the government's position had not changed, requiring proposals for reorganisation to be submitted by 28 November 2025. These proposals should aim for a population of 500,000, ideally based on district council boundaries, with some exemptions.

The Minister of State for Local Government and English Devolution, Jim McMahon MP, had sent a letter clarifying aspects of LGR, including a moratorium period during which local authorities' functions and decision-making would be restricted, with shadow authorities in place.

The Chief Executive said that locally, authorities in Devon were still working towards the 1:4:5 model, excluding Exeter City Council. Project teams were in place to support this model, with the Head of PMO, Environmental Health and Housing leading the project team to develop the 5 model under the stewardship of Andy Wood, Director of Place, East Devon District Council.

North Devon Council had previously supported the 1:4:5 model but requested that all options be examined to reflect Northern Devon. The council is working with Torridge District Council on a Northern Devon model, with consultants Inner Circle helping to develop a place story for the area. KPMG consultants were also requested to produce a financial model for Northern Devon. An extraordinary council meeting was arranged for 27 August 2025, to consider the appointment of a Joint Planning Committee with Torridge District Council and to consider the report produced by KPMG regarding LGR.

The Director of Resources and Deputy Chief Executive noted that the council's public consultation was live until 31 August 2025, and a joint engagement event with Torridge District Council aimed at businesses had been held on 7 August 2025.

Performance Report 2025/26 Q1 - Finance

The committee reviewed the Performance Report 2025/26 Q1 - Finance from the Director of Resources and Deputy Chief Executive. The Finance Manager highlighted that the revenue budget for 2025/26 was approved at £18,072,800, and as of 30 June 2025, the latest forecast net budget was £18,064,800, producing a budget surplus of £8,000.

Since the report was published, the national pay award for 2025/26 was agreed at 3.2%, which is circa £40,000 higher than budgeted. The shortfall would be funded from the Budget Management reserve.

Planning fees were forecast to be up on budget by £100,000, while pannier market income was down by £65,000, and recycling sales were down by £40,000. The Finance Manager said that officers would be meeting to discuss the shortfall in pannier market income, and that they hoped that events income would see a partial recovery when the quarter 2 data was reviewed. They also said that now the new baler had been commissioned, early indications were that some commodity prices should increase significantly, and by quarter 2 there should be a much better indication on whether the deficit in recycling sales can be fully reversed.

As of 30 June 2025, total external borrowing was £12,000,000. Overall variations of £284,742 were proposed to the 2025/26 Capital programme, including three new projects, variations to schemes, and slippages in funding. The overall revised Capital Programme for 2025/26 to 2027/28, taking into account the budget variations, was £21,412,544, funded by capital receipts/borrowing (£9,480,276), external grants and contributions (£10,200,414), and reserves (£1,731,854).

The committee resolved to approve contributions to/from earmarked reserves, note the movement on the Strategic Contingency Reserve, release funds for capital schemes, and note the sections dealing with Treasury Management, Debt Management, and General Debtors. The committee recommended that the council approve the variations to the Capital Programme 2025/26 to 2027/28.

The Director of Resources and Deputy Chief Executive advised that the outstanding debt for the collection of council tax had risen slightly due to the cost of living crisis. Officers were working closely with customers regarding seeking payment of outstanding debt, and some customers had changed repayment from a 10-month to a 12-month period.

Performance Report 2025/26 Q1 - Programme

The committee considered the Performance Report 2025/26 Q1 - Programme from the PMO Manager. The Head of PMO, Environmental Health and Housing outlined the key elements of Appendix A, which provided a high-level update in relation to the programmes delivering the Corporate Plan priorities and performance measures for Quarter 1 2025/26.

In response to questions from the committee, the Head of PMO, Environmental Health and Housing advised that the action of setting up the Waste and Recycling Working Group under the Environmental Enhancement programme would be included within the performance report for the next quarter. They also said that new properties that the council are purchasing come with solar panels, and the council are looking to retrofit existing properties to provide sustainable solutions.

The Chief Executive said that the report on increasing solar generation on council-owned properties would be presented to the committee on 1 September 2025.

The Director of Resources and Deputy Chief Executive said that gross income was more within the control of the council as a result of the core government grants being reduced and the council now raising more income such as through growth in council tax, fees, and business rates. They also said that the report on Ilfracombe Sea pool would be presented to the committee in October 2025 rather than 1 September 2025, and that the total number of properties registered as second homes had started to increase since the change in council tax whereby council tax had been doubled for second homes¹.

The committee noted the actions being taken to ensure that performance was at the desired level.

Work Programme 2025-26

The committee considered the work programme for 2025-26. Following questions from the committee, the Director of Resources and Deputy Chief Executive advised that the update on Barnstaple – Work Programme at the 6 October 2025 meeting would include an update on all major projects and key buildings in the town, and that the council would need to engage with private landlords in terms of regenerating buildings in the town centre.

Following questions from the committee, the Head of Place, Property and Regeneration advised that officers were working with the Environment Agency regarding producing guidance on the different levels of flood risk in Barnstaple which would be made available to landowners.

The Chief Executive advised that the council tried to lead by example and as an example was working in partnership with the Bridge Trust regarding renovation of Bridge Buildings which would be brought back into community use.

The committee resolved to amend the work programme to move the following items to the 1 September 2025 meeting: Increasing Solar Generation on Council-owned properties and LGA Light Touch Review . The committee also resolved to move the following item to the 6 October 2025 meeting: Ilfracombe Sea Pool .

Opportunity for Land Acquisition

The committee considered a report by the Head of Place, Property and Regeneration regarding the opportunity for land acquisition. Councillor Graham Bell declared an other registerable interest as a Member of Devon County Council and left the meeting during the consideration thereof.

The Head of Place, Property and Regeneration outlined the report to the committee. The committee resolved that North Devon Council, together with Torridge District Council, submit an offer to Devon County Council for the acquisition of the land outlined in the report. The committee delegated the actual offer, any conditions of purchase, and the negotiations with Torridge District Council and Devon County Council to the Head of Place, Property and Regeneration in discussion with the Leader of the Council, Councillor David Clayton, and the Lead Member for Regeneration, Economic Development and Planning. The committee noted that an Equality Impact Assessment would be completed for this proposal.

Urgent Decision

The committee noted the urgent decision taken by the Chief Executive in accordance with paragraph 3.45, Annexe 2, Part 3 of the Constitution regarding the Household Support Fund 7. A grant of £393,198.53 (plus 12% admin) has been allocated to North Devon Council from Devon County Council as part of their overall allocation from the Department for Work and Pensions. These funds must be spent by 31 March 2026. The scheme includes vouchers for working-age households receiving council tax reduction, an application scheme for third-party organisations to apply for funds on behalf of their clients, and an allocation to the Vulnerable Persons and Community Safety Team to award to their clients.

Exclusion of Public and Press and Restriction of Documents

The committee resolved to exclude the public and press from the meeting for the following item as it involved the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of the Schedule 12A of the Local Government Act 1972, namely information relating to the financial business affairs of any particular person (including the authority holding that information). The committee confirmed that all documents and reports relating to the item be confirmed as Not for Publication .