Agenda and minutes

A live audio stream of the meeting can be heard on the following link: https://www.youtube.com/@leicestercitycouncildemocr5339

There were no Lord Mayor’s announcements.

The Lord Mayor invited Members to declare any interests they might have in the business on the agenda not already declared on their register of interests.

The following members all declared an ordinary disclosable interest in the item ‘Notice of Motion: Leicester City Council Divestment Motion’, as either they or a family member were or would be beneficiaries of the Local Government pension scheme:

Councillors Whittle, Kennedy-Lount, Osman, Moore, Waddington, Dave, Clarke, Dempster, Westley, Surti, Russell, Sood and the City Mayor.

The minutes of the meetings held below are available to view at the links below:

22^nd February 2023 – Budget Council Meeting

Agenda for Council on Wednesday, 22 February 2023, 5:00 pm (leicester.gov.uk)

22^nd February 2023 – Special Council Meeting

Agenda for Council on Wednesday, 22 February 2023, 6:00 pm (leicester.gov.uk)

9^th March 2023 – Special Council Meeting

Agenda for Council on Thursday, 9 March 2023, 5:00 pm (leicester.gov.uk)

18^th May 2023 – Annual Council Meeting

Agenda for Council on Thursday, 18 May 2023, 5:00 pm (leicester.gov.uk)

Copies are also available from Democratic Support on (0116) 454 6350 or committees@leicester.gov.uk

Moved by the Lord Mayor, seconded by the Deputy Lord Mayor and carried:

That the minutes of the meetings held on 22 February 2023 (Budget Council meeting), 22 February 2023, 9 March 2023 (Special Council meeting) and Annual Council on 18 May 2023 having been circulated to each Member of the Council, be taken as read and are approved as a correct record.

City Mayor – Economic Activity of Public Bodies (Overseas Matters) Bill.

The City Mayor referred to this Bill which was currently going through parliament. He noted that he had previously taken a visit to the Palestine in 2014, following which the Council took a decision resolving to boycott goods from the occupied territories and condemned the government of Israel for ignoring international law. He further noted that the court of appeal said that the Council’s decision was temperate and legitimate, and in common with well known gestures of solidarity undertaken by many councils.

The City Mayor noted that the Bill going through parliament was a means of the government trying to silence Councils and not allow them to undertake their wider political role, and democratic responsibility to speak up on matters which affect people within the city. He noted that the City’s Members of Parliament had criticised the Bill and he encouraged them to speak against it on behalf of the city.

Deputy City Mayor – Councillor Clarke – Flooding in the city

The Deputy City Mayor referred to a recent flooding event which took place on 22^nd June. He thanked Council teams that worked through the night, and visiting residents to provide support where possible. He noted that infrastructure relating to flooding was maintained by different agencies including the Council, Severn Trent Water and the Environment Agency, and the interactions between the agencies was complex and depended on the issue at hand. Following the flood, officers had investigated and prepared a report under Section 19 of the Flood and Water Act 2010 looking at mitigations which would be presented to Councillors. He noted that the Council continued to invest in improvements, such as on the John Ellis site. He further noted that there had been an increase in extreme weather events due to climate change and it was necessary to continue to adapt to changing circumstances. All Councillors would receive a guide to flooding in the near future.

-         Presented by Members of the Public

-         Presented by Councillors

-         Petitions to be debated

There were no petitions.

The following questions were asked by Members of the Public.

1.         This question was not asked.

2.         This question was not asked.

3.         Brenda Worrall

“The city council voted unanimously to back the United Nations Treaty on the Prohibition of Nuclear Weapons on 22 February 2023.

joining towns and cities across the world, including many in the UK. This was a wonderful and courageous thing to do.

We, as members of Leicester CND, make two requests for that to be followed by action.

Could the city council now make sure that the citizens of Leicester are aware of that decision, by publicising it widely and by making it prominent on its website, thus explaining to the public that we now belong to a community of towns and cities that support the UN treaty to ban nuclear weapons?

Could the city council join with all the other local authorities in the UK, who have passed similar resolutions, to jointly urge our Government to accord with the treaty?”

The City Mayor in response stated that he was pleased to have this question asked. He noted that the Council had passed the resolution and details of this had been placed on the Council’s website, but agreed that more could always be done. He was happy to look at ways in which this could be publicised, focussing on the impact it could have.

Brenda asked a supplementary question. She offered to provide details of other authorities who had also approved a similar motion.

The City Mayor in response felt that the Council may have this information, but he was happy to receive it.

QUESTIONS FROM COUNCILLORS

1.         Councillor Pantling

“Would the City Mayor update Council on the ongoing concerns brought to him, regarding the activities of a Leicester based company, relating to its advertising, sale and fitting of heating products; concerns that have also come to the attention of Leicester City Council Trading Standards?”

The City Mayor in response said that this had been a very serious case, one that Trading Standards had prosecuted and pressed very hard to support affected consumers. He couldn’t name the company involved, but a settlement had been agreed in 2022 and a commitment was given by the company that breaches would be put right and they paid compensation and prosecution costs. He noted that further issues had been raised with the Council and these were being investigated to see if they were in breach of the original agreement. Trading Standards would act robustly and proportionately for consumers if breaches were continuing.

2.         Councillor Mohammed

“Proposed "Economic Activity of Public Bodies (Overseas Matters) Bill"

The above bill has been tabled in Parliament and is most likely to pass. This bill will "prevent public bodies from being influenced by political or moral disapproval of foreign states when taking certain economic decisions".

If passed it may prevent Councils from showing solidary for oppressed minorities like this Council did in 2014, an act that not only reflected the accurate  ...  view the full minutes text for item 21.

7.1      Independent Remuneration Panel - process

Moved by Councillor Halford, seconded by Councillor Cassidy:

That Council:-

a)     Approves the appointment and composition of an Independent Remuneration Panel to consider Members Allowances in Leicester as detailed in the report;

b)     Approves the commencement of a review of the Council’s Scheme of Members Allowances by the Independent Remuneration Panel as specified in legislation on the basis defined in the report and taking into account the current financial constraints facing the Council; and

c)      Notes that consideration of the report of the Panel is a matter reserved to Council and that Council in setting a Scheme of Allowances at that point will have the choice to accept in full or in part or reject the findings of the Panel.

AMENDMENT

Moved by Councillor Kitterick and seconded by Councillor Porter, an addition to the recommendations:

That the Council asks the Independent Remuneration Panel to explore the following specific issues: (i) a reduction in the budget for Special Responsibility Allowances for the Executive as there are now seven members compared to ten previously and (ii) a reduction in the budget allocation for Deputy Mayors to allow for one rather than three.

Following the debate, the Lord Mayor put the amendment to a vote.

The Lord Mayor declared that the amendment was lost.

As there were no further amendments, the Lord Mayor put the substantive motion to a vote.

The Lord Mayor declared that the motion was carried.

8.1      Establishment of Scrutiny Committees and Commissions, Regulatory and Council Committees

To vary the composition and fill any vacancies of any Committee of the Council

To agree Terms of Reference and any changes to existing Terms of Reference

Moved by Councillor Halford and seconded by Councillor Pantling:

“That:-

a)     The Governance and Audit Committee and Standards Committee be established in accordance with the existing Terms of Reference, (except for the Governance and Audit Committee), the size of each being as detailed at Appendix A of the report, and it being noted that:

       I.          the remaining places will be filled in accordance with relevant procedures and in consultation with the relevant Members.

      II.          The Standards Committee is to comprise five Elected Members.

    III.          The Monitoring Officer be granted delegated power to amend the Terms of Reference (Standards Committee) and Article 10 of the Constitution to reflect the increase in the size of the Standards Committee from four Elected Members to Five Elected Members.

b)     The amended Terms of Reference for the Governance and Audit Committee (formerly Audit and Risk Committee), as attached at Appendix B of the report, be approved.

c)      The Chairs and Vice-Chairs (as appropriate) of the bodies listed in part (i) above be in accordance with the lists at Appendix A of the report.

d)     The Employees Committee be established with the Terms of Reference and size as specified within the Council’s Constitution, with the process for the appointment of Chair and membership being in accordance with the provisions of the Constitution.

e)     The decision of Council taken on 18th May 2023 to fix the size of the Licensing and Public Safety Committee comprise 16 Councillors be superseded with a decision that it comprises 15 Councillors.

f)       The calendar of meetings, as attached at Appendix C of the report be approved.

g)     The Scrutiny Terms of Reference as detailed at part 3 of the Council’s Constitution be confirmed and the Scrutiny Configuration as circulated prior to the meeting and attached to these minutes, be approved.

Councillor Halford moved, seconded by Councillor Elaine Pantling, a friendly amendment, detailed above in italics at a) ii & iii. The Lord Mayor put the friendly amendment to a vote without debate and it was carried.

Following the debate, the Lord Mayor put the substantive motion to a vote and it was carried.

Council is asked to approve an additional Council meeting on 21^st March 2024 and to remove the ordinary meeting due to take place on 22^nd February 2024.

Moved by Councillor Halford, seconded by the City Mayor and carried:

That an additional Council meeting be held on 21^st March 2024 and remove the ordinary meeting due to take place on 22^nd February 2024.

Leicester City Council Divestment Motion

Proposed by the Deputy City Mayor Councillor Clarke, seconded by Councillor Singh Johal that:

Leicester City Council notes:

It does not have any direct investments in fossil fuels but Leicester City Council, through employer and employee contributions, contributes to around £154 million of investment in fossil fuels as part of the Leicestershire Local Government Pension Fund, according to UK Divest. The Leicester City element of this is estimated to be around 30% (£46.2m).

The United Nations Paris Agreement, reaffirmed at the 2021 Glasgow Climate Summit, commits our governments to keep the global temperature increase to under 2 degrees and aim for 1.5 degrees. Carbon budgets produced by the Intergovernmental Panel on Climate Change, United Nations and the International Energy Agency show that preventing two degrees of warming relies on not burning the vast majority of all proven fossil fuels.

The UN International Energy Agency (IEA) predicts that global oil demand will significantly fall by 2030, leading their Executive Director to refer to oil and gas companies as potential ‘junk investments.’[1] Action by governments to limit carbon emissions will ultimately leave fossil fuel reserves unburnable. It’s been estimated that this asset bubble, known as the ‘carbon bubble’, may be over €1 trillion in Europe alone.

Former Bank of England Governor Mark Carney warned that fossil fuel investments risk becoming “stranded assets” as investors exit the sector. “A question for every company, every financial institution, every asset manager, pension fund or insurer – what’s your plan?”[2]

Pension funds have a fiduciary duty to consider the material risks of continued investment in fossil fuels. Fiduciary duty is defined by the Law Commission as “ensuring that pensions can be paid, ensuring that this is undertaken at the best possible value”.

Pension funds have a legal duty to treat members “fairly as between them”. That means taking seriously the longer-term interests of younger members who may be affected more by the climate transition.

The city mayor and majority of Councillors committed, through the Labour manifesto, “to seek to end the Leicestershire pension fund’s investment in fossil fuel producing companies, redirecting this investment to support local solutions to climate change and fuel poverty.”

Therefore, this Council commits to:

1. Call on the Leicestershire Local Government Pension Fund to amend its recently adopted Net Zero Climate Strategy and develop a Responsible Investment Policy which explicitly rules out new investments in fossil fuel companies.

2. Call on the Fund to divest from fossil fuels through the development and adoption of responsible investment policies which:

a. Immediately freeze any new investment in the top 200 publicly traded fossil fuel companies.[3]

b. Divest from direct ownership and any commingled funds that include fossil fuel public equities and corporate bonds within [insert agreed number of years given market forecasts].

c. Set out an approach to quantify and address climate change risks affecting all other investments.

d. Actively seek to invest in companies that will reduce greenhouse gas emissions, minimise climate risk and where possible provide  ...  view the full agenda text for item 25.

a)    Leicester City Council Divestment Motion

Moved by Deputy City Mayor Councillor Clarke, seconded by Councillor Singh Johal and carried:

Leicester City Council notes:

It does not have any direct investments in fossil fuels but Leicester City

Council, through employer and employee contributions, contributes to around £154 million of investment in fossil fuels as part of the Leicestershire Local Government Pension Fund, according to UK Divest. The Leicester City element of this is estimated to be around 30% (£46.2m).

The United Nations Paris Agreement, reaffirmed at the 2021 Glasgow Climate Summit, commits our governments to keep the global temperature increase to under 2 degrees and aim for 1.5 degrees. Carbon budgets produced by the Intergovernmental Panel on Climate Change, United Nations and the International Energy Agency show that preventing two degrees of warming relies on not burning the vast majority of all proven fossil fuels.

The UN International Energy Agency (IEA) predicts that global oil demand will significantly fall by 2030, leading their Executive Director to refer to oil and gas companies as potential ‘junk investments.’ Action by governments to limit carbon emissions will ultimately leave fossil fuel reserves unburnable. It’s been estimated that this asset bubble, known as the ‘carbon bubble’, may be over €1 trillion in Europe alone.

Former Bank of England Governor Mark Carney warned that fossil fuel

investments risk becoming “stranded assets” as investors exit the sector. “A question for every company, every financial institution, every asset manager, pension fund or insurer – what’s your plan?”

Pension funds have a fiduciary duty to consider the material risks of continued investment in fossil fuels. Fiduciary duty is defined by the Law Commission as “ensuring that pensions can be paid, ensuring that this is undertaken at the best possible value”.

Pension funds have a legal duty to treat members “fairly as between them”.  That means taking seriously the longer-term interests of younger members who may be affected more by the climate transition.

The city mayor and majority of Councillors committed, through the Labour manifesto, “to seek to end the Leicestershire pension fund’s investment in fossil fuel producing companies, redirecting this investment to support local solutions to climate change and fuel poverty.”

Therefore, this Council commits to:

1.   Call on the Leicestershire Local Government Pension Fund to amend its recently adopted Net Zero Climate Strategy and develop a Responsible Investment Policy which explicitly rules out new investments in fossil fuel companies.

2.   Call on the Fund to divest from fossil fuels through the development and adoption of responsible investment policies which:

a.   Immediately freeze any new investment in the top 200 publicly traded fossil fuel companies.

b.   Divest from direct ownership and any commingled funds that include fossil fuel public equities and corporate bonds.

c.   Set out an approach to quantify and address climate change risks affecting all other investments.

d.   Actively seek to invest in companies that will reduce greenhouse gas emissions, minimise climate risk and where possible provide local environmental benefits.

3.   Recognising  ...  view the full minutes text for item 25.

There being no other business, the Lord Mayor declared the meeting closed at 10.56pm.