To approve as a correct record the minutes of the meeting held on 16 October 2023..

Decision

That the minutes of the meeting held on 16 October 2023 be approved as a correct record.

Report of the Strategic Director (Growth and Development).

This report provides information on how the Oxford Road Corridor facilitates and promotes innovation, commercialisation and employment growth in Manchester.

The Committee received a report of the Strategic Director (Growth and Development) which provided information on how the Oxford Road Corridor facilitated and promoted innovation, commercialisation and employment growth in Manchester.

Key points and themes within the report included:

• Policy context;
• Planning and delivery;
• Investment, impact and key schemes; and
• Future development and opportunities.

Key points and queries that arose from the Committee’s discussions included:

• To welcome the contribution of the Oxford Road Corridor to the city’s economy and plans for the future, while emphasising the importance of inclusive growth and making the city fairer;
• The impact of the cancellation of the HS2 line to Manchester on this work;
• Engaging with local residents, mitigating negative impacts for residents and ensuring that they could benefit;
• The pathways for local residents to the higher-paying jobs that were being created and ensuring that under-represented communities were not only able to access lower-paid jobs;
• Requesting that future reports included information on engagement with and inclusion of local communities;
• What were the constraints on economic growth and how would they be mitigated; and
• Making the partnership more inclusive including opportunities to collaborate with ethnic minority-led organisations and stakeholders, for example, Curry Mile traders.

The Leader explained that the Oxford Road Corridor was a partnership of organisations and that the individual organisations also had their own programmes of work, which the Committee might be interested in considering at a future meeting.  She reported that the decision about HS2 would affect the ability of the UK to have a more balanced economy but that the level of ambition for the Oxford Road Corridor was longstanding and would remain the same, despite the challenges presented in relation to connections and rail capacity, and she highlighted some of the opportunities of the Oxford Road Corridor, in relation to research, innovation and the growth of the science sector.  She commented that the points relating to local residents accessing better paid jobs were addressed within the Economic Strategy, which was the next item on the agenda.

Steven Cochrane, Partnership Director, Oxford Road Corridor reported that the Corridor was a great example of setting a strategic vision for an area and remaining committed to it over an extended period of time, during a turbulent period for the UK, which had included the economic crash, Brexit and the pandemic.  He highlighted that the types of jobs that had been created included ones which previously people would have had to leave Manchester to pursue.  He outlined how partners, including the universities, NHS and private sector had worked together to deliver strategic schemes and attract investment and highlighted the use of evidence-based policy development.  He advised Members that the research taking place on the Corridor was bringing economic benefit but also societal benefit, for example, research in life sciences.  He recognised comments about the impact of growth on local communities while stating that the universities had tried to use the public realm to make the area more welcoming with recent developments.  He stated that the  ...  view the full minutes text for item 46.

Report of the Strategic Director (Growth and Development)

This report presents the final economic strategy which will be taken to Executive on 15 November, and describes the development process followed in creating the strategy.

The Committee received a report of the Strategic Director (Growth and Development) which presented the final economic strategy which would be taken to Executive on 15 November and described the development process followed in creating the strategy.

Key points and themes within the report included:

• The development process;
• Resident and worker engagement;
• Business engagement;
• Phase 2 online survey;
• The Council’s response to the challenges; and
• Delivery and measuring success.

Key points and queries that arose from the Committee’s discussions included:

• The impact of the cancellation of the HS2 line to Manchester;
• Electricity North West’s capacity to increase supply at the speed and scale required;
• How the Council was engaging with residents, ensuring that the people responding to consultations were representative of the population of the city, including on ethnicity, level of qualifications and employment status;
• Data capture and monitoring measures, including the impact of the pandemic on ways of working, ensuring that equity and inclusive growth were included in the measures and that consideration should be given to including a measure on the proportion of people’s income spent on rent;
• The focus on the city centre and the importance of ensuring that deprived neighbourhoods benefited from economic growth; and
• Whether there was an over-reliance on high value growth sectors.

The Leader expressed her frustration and concern about the decision in relation to HS2.  She reported that improving connections between the east and west and north and south would enable the city to unleash its full potential and that the city was facing a challenge in addressing this without any meaningful discussion with national Government as yet on alternative transport projects; however, she advised that the Council would continue to pursue this and engage in discussions with the Government.  She stated that businesses needed certainty and a coherent plan and that the Council was working to reassure stakeholders.  She stated that the Council would be working with Greater Manchester colleagues on what infrastructure investment was needed over the next ten years, including transport, the electricity grid and the decarbonisation of energy.  In response to a Member’s question about capitalising politically on the launch of the Strategy to lobby the Government and the Opposition frontbench on behalf of the city, she stated that she had been putting forward the case that a future Government could place responsibility for economic development on local authorities, with a duty to collaborate across the combined authority area.  She stated that political lobbying would take place regarding the tools that the city needed to achieve the ambitions set out in the Strategy.  She reported that the measures set out in appendix 2 were still a work in progress and highlighted the Key Performance Indicators for Making Manchester Fairer which, she advised, when brought together with these measures, would provide a richer picture.

The Strategic Director (Growth and Development) reported that the Council had a strong relationship with Electricity North West and met regularly with them to review requirements, ensuring that forecasted growth in the city and Electricity  ...  view the full minutes text for item 47.

Report of the Deputy Chief Executive and City Treasurer

The Council is forecasting an estimated budget shortfall of £46m in 2024/25, £86m in 2025/26, and £105m by 2026/27. After the application of approved and planned savings, and the use of c£17m smoothing reserves in each of the three years, this gap reduces to £1.6m in 2024/25, £30m in 2025/26 and £49m by 2026/27. This position assumes that the savings approved as part

of the Medium-Term Financial Strategy in February 2023 of £36.2m over three years are delivered.

This report provides a high-level overview of the updated budget position. Each scrutiny committee is invited to consider the current proposed changes which are within its remit and to make recommendations to the Executive before it agrees to the final budget proposals in February 2024.

The Committee considered the report of Deputy Chief Executive and City Treasurer which informed Members that the Council was forecasting an estimated budget shortfall of £46m in 2024/25, £86m in 2025/26, and £105m by 2026/27. After the application of approved and planned savings, and the use of c£17m smoothing reserves in each of the three years, this gap reduced to £1.6m in 2024/25, £30m in 2025/26 and £49m by 2026/27. This position assumed that the savings approved as part of the Medium-Term Financial Strategy in February 2023 of £36.2m over three years were delivered. 

The report provided a high-level overview of the updated budget position.  The Committee was invited to consider the current proposed changes which were within its remit and to make recommendations to the Executive before it agreed to the final budget proposals in February 2024.

Key points and themes within the report included:

·         Updates on the refreshed position including progress in reaching a balanced budget, reflecting preliminary savings and investment options;

·         The government was expected to announce the Autumn Statement on 22 November 2023, but no major changes were expected;

·         Government funding for 2024/25 would be confirmed in the provisional finance settlement, expected late in December 2023;

·         The accompanying report set out the priorities and officer proposals for the services within the remit of this committee. This included a reminder of the savings proposals identified as part of last year’s budget setting process (£36.2m across three years) and additional savings for consideration (£2.5m from 2024/25). As far as possible these were aimed at protecting the delivery of council priorities and represented the least detrimental options; and

·         There remained a forecast shortfall of £1.6m next year. Any further reduction to the underspend this year would reduce the need to top back up General Fund reserve in 2024/25 and help bridge this shortfall. In addition, the Collection Fund position would be finalised in January and the final levy amounts from GMCA confirmed.

The Leader informed the Committee that she had written to the Chancellor of the Exchequer to highlight the precarious financial position that Manchester and other local authorities were in, with sustained funding cuts over a number of years, increasing budget pressures and rising demand for services.

Members expressed concern about the financial position that Manchester had been placed in over a number of years.  Members commended officers and the Executive for delivering a balanced budget over these years in the face of so many challenges, commenting that Manchester had been disproportionately affected by funding cuts.

In response to a Member’s question about confidence in financial forecasting, the Head of Finance (Corporate Core) reported that there were elements of risk, for example, relating to inflation and increased demand, and the budget would be refreshed every year. He advised Members that the Committee would receive a further budget report in February, following the financial settlement from Government in December.  In response to a further question, he drew Members’ attention to a more detailed report on the budget,  ...  view the full minutes text for item 48.

Report of the Strategic Director (Growth and Development).

This report sets out the priorities for the services in the remit of this committee and details the initial revenue budget changes proposed by officers.

The Committee received a report of the Strategic Director (Growth and Development) which set out the priorities for the services in the remit of the Committee and detailed the initial revenue budget changes proposed by officers.   The Committee was invited to consider the current proposed changes which were within its remit and to make recommendations to the Executive before it agreed to the final budget proposals in February 2024.

Key points and themes within the report included:

• Service overview and priorities;
• Service budget and proposed changes;
• Commissioning and procurement priorities;
• Workforce implications;
• Equality and anti-poverty impact; and
• Future opportunities, risks and policy considerations.

A Member reported that Manchester Adult Education Services (MAES) was an excellent service which had suffered considerable cuts since 2010 and she emphasised the importance of protecting the service and, if possible, developing it.  The Chair commented that at a time of high inflation, maintaining current funding levels represented a cut in real terms.

A Member noted the proposed efficiency savings within the Growth and Development Directorate, questioning whether it was possible to make any more efficiency savings and whether these savings would impact on the ability to deliver the 10-year Housing Strategy.

The Strategic Director (Growth and Development) acknowledged the comments relating to MAES and the importance of this provision and reported that she was working with colleagues from MAES and Finance to look at options in relation to this.  She also acknowledged the Member’s point about whether efficiency savings was the right term for the proposals in relation to the Growth and Development Directorate and clarified that the Directorate was not looking to make any cuts.  She reported that this was a relatively small Directorate which generated income for the Council and was undertaking new programmes of work.  She informed Members that the Directorate would receive an uplift but would need to be creative, including looking at the use of reserves, grant funding and the management of its commercial estate.

In response to a Member’s request for clarification on the proposals relating to parking, the Head of Finance (Corporate Core) reported that, following the pandemic, income from off-street parking had reduced and was now approximately £2.1 million lower than had been forecast and that this gap was currently being funded from car parking reserves while the strategy for parking was reviewed to ensure a balanced budget from 2025/26 onwards.

Decision:

To note the report.

Report of the Strategic Director of Growth and Development

The report provides an update of the Housing Needs Assessment commissioned to inform the development of housing policies in the emerging Local Plan.

The Committee received a report of the Strategic Director (Growth and Development) which provided an update of the Housing Needs Assessment commissioned to inform the development of housing policies in the emerging Local Plan.

Key points and themes within the report included:

• Background information, including national planning policy and guidance and the Housing Needs Assessment methodology;
• Affordable housing;
• Mix of size and type of housing need;
• Housing for older and disabled persons including the need for accessibility standards/housing for people with additional needs;
• Private Rented Sector;
• Self-build and custom housebuilding; and
• Next steps.

Key points and queries that arose from the Committee’s discussions included:

• To welcome the consideration of the needs of older people, recognising the importance of having the right accommodation for older people in the right areas, while also freeing up family homes;
• Noting the LGBT+ Extra Care Scheme in Whalley Range, were other innovative schemes being considered for how people might want to live as they got older;
• Whether the study on gypsy and traveller communities referenced in the report was being considered by the relevant scrutiny committee;
• People using spare bedrooms as offices, due to the increase in people working from home, and the importance of gathering data on this;
• The importance of affordable housing; and
• Concern about the standard of some private sector housing, including energy efficiency, and tenants’ rights in the private sector.

The Director of Planning, Building Control and Licensing informed Members that the work relating to gypsy and traveller communities had already been commissioned, as well as a separate report on travelling show people; however, it was not quite yet at a stage to bring to Scrutiny.  In response to a question from the Chair, she reported that the expectation from the Government was that not all of the 10,000 affordable homes target would be delivered through planning policy, with most of it delivered through other means, such as Homes England funding; however, there was a need for more affordable housing in the city so consideration would be given to whether additional affordable housing could be achieved through planning policy.

The Planning and Infrastructure Manager acknowledged that there was a need to better understand the extent to which changes in working from home during the pandemic had led to longer-term changes and how this might need to be taken into account in relation to housing.  In relation to a question about owner-occupiers, he advised that these were included in the report in relation to the mix of accommodation in different parts of the city.  He advised that this was something which could be discussed further in future reports which would be brought before the Committee.  He drew Members’ attention to a report which was due to be considered at the next meeting of the Environment, Climate Change and Neighbourhoods Scrutiny Committee on energy usage within new residential and commercial developments.  In response to a question from the Chair about the Levelling Up and Regeneration Act, he advised that there was still further  ...  view the full minutes text for item 50.

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, and the Economy Dashboard for information.

A report of the Governance and Scrutiny Support Unit was submitted. The overview report contained key decisions within the Committee’s remit, responses to previous recommendations and the Committee’s work programme, which the Committee was asked to approve, and the Economy Dashboard for information.

A Member asked that the item on Manchester Airport scheduled for the December meeting include consideration of the impact of the Airport on parking in surrounding residential areas, to which the Chair agreed.

The Chair reminded Committee Members that they had been invited to attend the next meeting of the Environment, Climate Change and Neighbourhoods Scrutiny Committee, which would be considering items on Vision Zero and Active Travel.

Decision:

That the Committee note the report and agree the work programme, subject to the above comments.