Manchester City Council

Agenda and minutes

Agenda and minutes

Economy Scrutiny Committee
Thursday, 5th September, 2019 10.00 am

Venue: Council Antechamber, Level 2, Town Hall Extension

Contact: Michael Williamson 

Webcast: View the webcast

Items
No. Item

37.

Minutes pdf icon PDF 178 KB

To approve as a correct record the minutes of the meeting held on 18 July 2019.

Additional documents:

38.

Delivering Manchester's Affordable Homes to 2025 pdf icon PDF 353 KB

Report of the Strategic Director (Growth and Development) attached

 

This report provides an update on progress against the policy ideas contained in the Affordable Housing Report considered by the Executive in December 2018 considering the demand for and supply of Affordable Homes in the City. It also provides further details of how the Council and its partners will deliver a minimum of 6,400 affordable homes from April 2015 to March 2025.

Additional documents:

Minutes:

The Committee considered a report of the Strategic Director (Development and Growth), which provided an update on progress against the policy proposals contained in the Affordable Housing Report considered by the Committee and the Executive in December 2018, taking into account the demand for and supply of affordable homes in the City. The report also provided further details of how the Council and its partners would deliver a minimum of 6,400 affordable homes from April 2015 to March 2025.

 

The Executive Member for Housing and Regeneration addressed the Committee, setting out the challenges the Council faced in meeting the policy proposals and in doing so referred to the main points and themes within the report, which included:-

 

·                Manchester’s economic context in relation to employment growth and associated housing demand;

·                The reasons for the reduction in the completion of new homes in the City since 2007/08;

·                The impact of austerity measures and associated welfare reforms on those on low incomes and a range of vulnerable households, particularly but not exclusively those living in the private rented sector;

·                The role of Homes England and Registered Partners in supporting the Council to deliver new affordable homes, including the number of new affordable homes that had been delivered/were planned to be delivered between April 2015 to March 2021;

·                Details of proposals for a further three additional Council funded affordable housing schemes in addition to the schemes that were already under construction;

·                Detail on the level of significant investment needed to deliver the scale of Affordable Homes needed in the city between now and March 2025 and the funding streams that this funding would be derived from, which included the Council’s HRA, grant support from Homes England, investment capacity of Registered Providers, Section 106 monies and the Council’s Housing Affordability Fund

·                Issues around availability of land for affordable housing;

·                Proposals to address the adverse impact of the Governments Right to Buy scheme;

·                Consideration Community Led Housing projects; and

·                The need to take into consideration the Council’s commitment to becoming Zero Carbon by 2030 and the consequences of this in terms of future housing design and quality.

 

The report would also be considered by the Executive at its meeting on 11 September 2019

 

Some of the key points that arose from the Committees discussions were:-

 

·                A real opportunity existed to make future affordable homes better than zero carbon and it was asked what work had taken place to date on this;

·                It would be important to ensure that all Council Housing partners and organisations within the housing construction supply chain were aware of the Council’s climate emergency declaration and the associated commitments it had made;

·                There was concern that the majority of the level of investment required rested with Registered Providers and what securities had they against this risk;

·                Would this strategy address the 13,000 plus people currently on the housing register and particularly those who were most vulnerable and those dependent on some of housing benefit;

·                How many social rented properties had been built over  ...  view the full minutes text for item 38.

39.

The Impact of Brexit on the Manchester Economy pdf icon PDF 380 KB

Report of the Strategic Director (Growth and Development) attached

 

This report provides an update on current evidence about the impact felt by Manchester’s economy since the European Union Referendum in 2016, as well as identifying a number of potential risks arising from the decision to leave the European Union. It covers different aspects of Manchester’s economy, including job growth; residential, commercial and infrastructure development; and the impact on the city’s population, including international student numbers.

 

Additional documents:

Minutes:

The Committee considered a report of the Strategic Director (Development and Growth) which provided an update on current evidence about the impact felt by Manchester’s economy since the European Union Referendum in 2016, as well as identifying a number of potential risks arising from the decision to leave the European Union.

 

The Leader informed the Committee of the developments that had taken place since the report had been published and also referred to the main points and themes within the report included:-

                                                                                                                             

·                Manchester’s current economic position was broadly positive and continued to exceed both regional and national averages;

·                Despite Brexit uncertainty, demand within the city centre office market was strong, with recent estimates suggesting that further new Grade A supply was urgently required;

·                The continued success of the office market in the city had been somewhat tempered by a decline in retail linked to the growth of online retailing.  Nevertheless, the Arndale continued to buck the trend with a series of new lets recently announced;

·                There was a great concern to the city that vital research links with the EU could be compromised by Brexit which would have detrimental impacts on the burgeoning knowledge economy sector within Manchester, mainly located in the Oxford Road Corridor;

·                Several of Manchester’s employment sectors currently relied heavily on the employment of skilled EU nationals. If there was a decrease in EU nationals working in the city, the following sectors could face challenges, impacting on Manchester’s growth ambitions;

·                The implementation of a UK Shared Prosperity Fund to replace current EU funding had been delayed by a year, consequently EU funding would continue to be spent for the next two years;

·                The most significant economic impact of the EU Referendum result had been the striking devaluation of the British Pound.  The consequences of which had had different levels of impact on different sectors and aspects of the economy.

·                Whilst there was a reduction in EU migration into the city, these reductions were being offset by a rise in the number of those entering the city from Pakistan, China and India;

·                The consequences to Manchester companies in terms of import and export trade tariffs should the UK leave the EU without a deal; and

·                Even at this advanced stage of the Brexit negotiations, there was no consensus on what the actual effects of Brexit would be on any aspect of the economy at any level.

 

Some of the key points that arose from the Committee’s discussions were:-

 

·                What work, if any, had the Council undertaken to help prepare residents to fill employment gaps that would be left by those posts currently filled by EU nationals, who were leaving Manchester as a consequence of Brexit;

·                How would Manchester’s professional services be impacted by Just In Time manufacturing being delayed and the possibility of the EU cutting out British companies from supply chains;

·                Concern was expressed that although the Foreign Direct Investment (FDI figure for the North West had increased slightly, overall it was still lower than before the  ...  view the full minutes text for item 39.

40.

Northern Powerhouse Rail Update pdf icon PDF 266 KB

Report of the Strategic Director (Growth and Development) attached

 

This report provides an update on High Speed 2 (HS2) and Northern Powerhouse Rail (NPR) and outlines the latest position on both initiatives. The report also provides information on a campaign by Northern leaders for rail investment in the north and a summary of the Manchester City Council’s response to HS2 Ltd.’s Design Refinement Consultation.

Additional documents:

Minutes:

The Committee considered a report of the Strategic Director (Development and Growth) which provided an update on High Speed 2 (HS2) and Northern Powerhouse Rail (NPR) and outlined the latest position on both initiatives. The report also provided information on a campaign by Northern leaders for rail investment in the north and a summary of the Council’s response to HS2 Ltd.’s Design Refinement Consultation.

 

The Leader informed the Committee of the developments that had taken place since the report had been published and also referred to the main points and themes within the report included:-

 

·                Government had recently announced an independent review into HS2 which was due to report back within a six week time period and would examine cost estimates and opportunities for savings and changes to the scheme, the environmental impact, and the economic and business cases for both Phases 1 and 2;

·                The Secretary of State for Transport had recently announced that the cost of HS2 was anticipated to increase by a further £30 billion to approximately £85 billion and that the timescale for delivering Phase 2 would be delayed by seven years;

·                Northern leaders had written to both the Prime Minister and new transport secretary, to express the importance of delivering HS2 and NPR together in the north, delivering the right stations and infrastructure and not stepping back from other committed schemes;

·                Leaders were now moving forward to deliver a joint campaign, supported by other areas and existing groups, including Transport for Greater Manchester (TfGM) and the GMCA to target business, media, MPs and senior Government Officials, with an aim to gain the support of prominent figures to influence the wider general public of the opportunities and benefits to the north of HS2, NPR and wider rail investment;

·                HS2 Ltd. was currently at the Control Point 3 (CP3) of the design stage, which was due to complete in October 2019. This stage of design would be included in the plans which would make up the hybrid Bill, which was currently due to be submitted to Parliament in June 2020;

·                HS2 Ltd. was consulting on design refinements (DRC) to the Phase 2b route consulted on in 2016.  The changes that impacted Manchester were the proposed relocation of vent shafts and their associated infrastructure, at Lytham Road and Palatine Road. The proposed new locations were at Fallowfield Retail Park on Birchfield’s Road, and on Withington Golf Club land at Palatine Road; and

·                The Council’s response to the DRC included previous concerns set out in its response to HS2 Ltd.’s Working Draft Environmental Statement (WDES) in December 2018.

 

Some if the key points that arose from the Committees discussions were:-

 

·                What could be done to improve the promotion of the benefits that HS2 would bring to the region other than just the reduction in journey times to London;

·                Reassurance was sought that the Council would be supporting objectors in relation to the proposed location of the ventilation shaft on the Birchfield site;

·                Was there any update on the proposed  ...  view the full minutes text for item 40.

41.

Overview Report pdf icon PDF 391 KB

Report of the Governance and Scrutiny Support Unit

 

This report provides the Committee with details of key decisions that fall within the Committee’s remit and an update on actions resulting from the Committee’s recommendations. The report also includes the Committee’s work programme, which the Committee is asked to amend as appropriate and agree.

Additional documents:

Minutes:

The Committee considered a report of the Governance and Scrutiny Support Unit which contained key decisions within the Committee’s remit and responses to previous recommendations was submitted for comment. Members were also invited to agree the Committee’s future work programme

 

In terms of future work programmes, the Chair of the District Centres Sub Group (Councillor Shilton Godwin) informed the Committee that it was anticipated that the final report of the District Centres Sub Group would not be ready for consideration until February 2020 at the earliest and requested that this be reflected on the Committees work programme.

 

Decision

 

The Committee:-

 

The Committee:-

 

(1)       Notes the report;

(2)       Agrees that the final report of the District Centres Sub Group will be considered by the Committee would not be ready for consideration until February 2020 at the earliest.