To allow Members an opportunity to [a] declare any personal, prejudicial or disclosable pecuniary interests they might have in any items which appear on this agenda; and [b] record any items from which they are precluded from voting as a result of Council Tax/Council rent arrears; [c] the existence and nature of party whipping arrangements in respect of any item to be considered at this meeting. Members with a personal interest should declare that at the start of the item under consideration. If Members also have a prejudicial or disclosable pecuniary interest they must withdraw from the meeting during the consideration of the item.

Councillor Connolly declared a personal interest in item 14 – Commercial Activity, Investments and Governance (Part B).

To approve as a correct record the minutes of the meeting held on 7 December 2023.

In approving the minutes, a member requested further information on the number of council-owned properties which were undergoing work or refurbishment and not officially classed as empty.

It was also clarified under minute RGSC/23/70 that a member had highlighted that there would be a discrepancy between the Real Living Wage and the National Living Wage once the latter was increased in April 2024 and that the Council needed to explore this in order to retain its accreditation as a Real Living Wage employer.

Decision:

That the minutes of the meeting held on 7 December 2023 be approved as a correct record and that the clarification above be noted.

Report of the Head of Corporate Revenues.

This report provides an overview of and update on new powers provided by legislation to increase the Council Tax on empty properties.

The committee considered a report of the Head of Corporate Revenues which provided an overview of and update on new powers provided by legislation to increase the Council Tax on empty properties.

Key points and themes within the report included:

• New powers under the Levelling Up and Regeneration Act 2023 stipulated that:

o   Empty, unfurnished properties would pay the 100% long term empty premium after one year instead of two years from 1 April 2024.

o   Empty, furnished properties would pay up to a 100% premium from the date that they became empty from 1 April 2025.

• Consultation on these proposals was undertaken as part of the 2023 budget consultation;
• The financial implications of applying the premium;
• Safeguards in place, such as the Discretionary Council Tax Payment scheme; and
• A further report would be brought to Resources and Governance Scrutiny Committee and Executive in advance of introducing the new policy for empty and furnished properties from 1 April 2025.

Some of the key points and queries that arose from the committee’s discussions included:

• If the Council collected council tax on properties that were empty whilst under probate and, if so, whether any discretion could be applied in such circumstances;
• Whether modelling had been undertaken of the anticipated savings as a result of increasing the premium; and
• How the new powers would drive behaviour change from owners of empty properties.

The Executive Member for Finance and Resources introduced the report and explained that the Levelling Up and Regeneration Act 2023 had been delayed and was passed in late October 2023. He stated that the increased premiums would bring in much-needed revenue for Manchester and that it enabled the Council to encourage homeowners to bring empty properties onto the market much sooner which would help to address the challenge of the housing crisis.

The Head of Corporate Revenues advised the committee that the changes would hopefully lead to behavioural change from owners of empty properties and explained that these premiums did not apply to empty properties of Registered Social Landlords.  He also explained that guidelines were expected from the government which could inform the approach to empty properties which were for sale and rental properties vacant between tenancies.  The committee was also informed that the New Homes Bonus applied to each empty, unfurnished property that was brought back onto the market.

In response to members’ queries regarding empty properties under probate, the Head of Corporate Revenues advised that there were specific rules in these circumstances and that these tended to be exempt from the premium until probate was awarded. Further information on this would be shared with members following the meeting.

The Deputy Chief Executive and City Treasurer reiterated the importance of behaviour change as a result of the increased premium and the number of empty properties brought back into use would be monitored.

The Head of Corporate Revenues clarified that a behaviour change would involve empty property owners reletting properties and reducing the small number of ‘phantom tenancies’.

Decision:

That the  ...  view the full minutes text for item 3.

Report of the Deputy Chief Executive and City Treasurer.

This report identifies the current budgets and support the Council operates in delivering its Anti-Poverty measures, offers options for future Anti-Poverty provision and provides a suggested framework for describing ongoing Anti-Poverty provision and expected outcomes.  

The committee considered a report of the Deputy Chief Executive and City Treasurer which identified the current budgets and support that the Council provided in delivering its Anti-Poverty measures, offered options for future Anti-Poverty provision and provided a suggested framework for describing ongoing Anti-Poverty provision and expected outcomes.

Key points and themes within the report included:

• Providing an introduction and background to anti-poverty support measures;
• The work of Making Manchester Fairer and the Anti-Poverty Strategy;
• Anti-poverty budgets for 2023/24;
• Measures such as Council Tax Support, the Household Support Fund (HSF) and the Residents at Risk Cost of Living Group;
• Framework and options for 2024/25;
• Recommendations for the anti-poverty budget allocation; and
• The range of households supported by HSF and the projected spend at 31 March 2024.

Some of the key points and queries that arose from the committee’s discussions included:

• Noting the likely end of HSF and the importance of communicating this to residents in a timely manner;
• When an announcement on Local Housing Allowance was expected;
• Querying the £968k underspend in the Cost-of-Living budget for 2023/24 and why residents were not presenting for support when needed;
• Whether more work was needed with sector organisations to promote the Discretionary Council Tax Support Payment scheme; and
• Whether targeted support could be provided to those in receipt of free school meals and the holiday activities programme in the event that HSF did not continue.

The Deputy Leader introduced the report and explained that it highlighted the Council’s current anti-poverty spending and options for the future. She stated that this was a complex area and thanked officers for their work. She recognised that the cost-of-living crisis was ongoing and that residents were still feeling the impacts of this, with the Council prioritising support for residents whilst facing its own budgetary pressures. She expressed her concern that the government had not provided any indication that HSF would continue after March 2024, noting that this fund was vital to residents and in funding the Council’s free school meals and holiday activities programme.

The Head of Revenues, Benefits and Customer Services echoed concerns over the end of HSF and explained that 50% of the HSF budget was maintained for free school meal provisions in school holidays. He informed the committee that the Council would face a reduction of around £4.9m in resources if HSF was discontinued.

In response to members’ points and queries on HSF, the Executive Member for Finance and Resources stated that the Leader of the Council was working with the Local Government Association (LGA) on this, and that Manchester MPs were going to table an item in Parliament to encourage the continuation of support. The Deputy Chief Executive and City Treasurer recognised the significant impact of the discontinuation of HSF and stated that officers had begun to look at budget options in the event that HSF was continued.

The Head of Revenues, Benefits and Customer Services emphasised that officers had started to model the impact of receiving a similar or reduced level of  ...  view the full minutes text for item 4.

Report of the Deputy Chief Executive and City Treasurer.

This report proposes changes to the Council’s Council Tax Support Scheme in order that the scheme remains fit for purpose in response to cost-of-living challenges and the transition of most working age residents in receipt of welfare benefits onto Universal Credit.

The committee considered a report of the Deputy Chief Executive and City Treasurer whichproposed changes to the Council’s Council Tax Support Scheme for Executive approval.

Key points and themes within the report included:

• The proposed change would mean that the Council Tax Support Scheme would pay up to 85% of the Council Tax bill leaving 15% to pay, compared to the current scheme of which paid up to 82.5% of the Council Tax bill leaving 17.5% to pay;
• It was also proposed toextend the CTS backdating period for working-age claims from 6 months to 12 months;
• A background to council tax in Manchester, including current and previous schemes;
• Costs of the proposed changes; and
• The approach, content and outcome of the consultation with precepting authorities.

Some of the key points and queries that arose from the committee’s discussion included:

• Welcoming the proposals and recognising the positive outcomes of the public consultation;
• Whether there was any aspirations to amend the CTSS to pay up to 100% of council tax;
• Whether costs of backdating council tax arrears were factored into the new proposals;
• That CTSS only applied to the Council’s portion of council tax and not precepting authorities and whether residents would still benefit; and
• The need for communication to make new Universal Credit claimants aware that they can apply for CTS.

The Executive Member for Finance and Resources introduced the report and highlighted that the Council had committed to supporting residents through the cost-of-living crisis. He recognised that, whilst inflation rates were easing, residents continued to feel the impact of this.  He explained that extending the backdating period would help to clear more council tax arrears for those facing financial difficulty.

The Head of Corporate Assessments reiterated that the proposals had been subject to a public consultation and an Equality Impact Assessment, which supported the recommendations of the report.

The Deputy Chief Executive and City Treasurer advised that the service had many aspirations but there was a need to balance affordability. There was a current focus on increasing investment into council tax support whilst protecting measures such as breathing space and debt collection.

With regards the backdating, the Head of Corporate Assessment explained that a review of backdating spend in the previous year had been undertaken but noted that it was difficult to model this with confidence because many cases did not require backdating for a full 12 months. He stated that the biggest benefit would be the ability to respond to cases where a resident had not claimed CTS when it was needed.

The Deputy Chief Executive and City Treasurer explained that the Council had not modelled the wider impact of CTS as it did not want to pre-empt any preceptor decisions of other authorities, such as Greater Manchester Combined Authority. It was confirmed that the Budget report for consideration in February would include a breakdown of council tax by precept and what this would mean for residents, including those on CTS.

In response to a point about  ...  view the full minutes text for item 5.

Report of the Deputy Chief Executive and City Treasurer.

This report presents a feasibility study into whether the use of Enforcement Agents (EAs), also known as bailiffs, is an effective or proportionate method of collecting debt.

The committee considered a report of the Deputy Chief Executive and City Treasurer which presented a feasibility study into whether the use of Enforcement Agents (EAs), also known as bailiffs, was an effective or proportionate method of collecting debt, following representations made by ACORN and Debt Justice at the committee’s meeting on 7 September 2024.

Key points and themes within the report included:

• The use of EAs remained widespread across the UK, with all of the five most deprived Council areas in England, of which Manchester was one, referring cases to EAs where residents do not engage and all Greater Manchester Councils using EAs to recover Council Tax debt, with two GM authorities having an in-house team for this;
• Improved regulation of the EA industry since 2014;
• Considerable investment and improvements into debt collection practice and engagement with residents;
• Recovery processes prior to an EA visit;
• The importance of Council Tax to the Council;
• Representations from ACORN, with a response from the Council, and Debt Justice;
• Representation from the Civil Enforcement Association (CIVEA) in response to ACORN and Debt Justice;
• Representation from Citizens Advice Manchester; and
• Examples of the revised reminder and recovery letters sent to residents.

Some of the key points and queries that arose from the committee’s discussions included:

• Welcoming the recommendations;
• Recognising the impact that losing 1% of council tax had on the Council’s overall budget, but also recognising the cost of stress and health concerns arising from an EA visit;
• Acknowledging the dialogue between the Council, ACORN and Debt Justice; and
• If residents were still able to apply for Discretionary Council Tax Payments if they had a case passed to EAs in the past.

The Executive Member for Finance and Resources introduced the report and explained that the use of EAs was a last resort. He stated that the report highlighted the Council’s work over the last 18 years to ensure a reduction in the number of cases passed onto EAs and that the feasibility study had provided an opportunity to learn the experiences of other authorities and to examine the code of conduct for EAs. He thanked the organisations that provided representations and stated that council tax amounted to 30% of the Council’s revenue budget and funded key services such as Children’s and Adults Social Care. He stated that a 1% reduction in the amount of council tax collected would equate to a loss of £2.73m in revenue, which the Council could not afford against a backdrop of government budget cuts. 

The Chair acknowledged the cooperation of ACORN, Debt Justice and Citizens' Advice in the preparation of the report and stated that their contributions had influenced the Council's approach to the collection of Council Tax, for example, in the rewording of the various letters that were sent to residents where Council Tax was overdue.

The Head of Revenues, Benefits and Customer Services echoed thanks to ACORN and Debt Justice and stated that reducing the number of cases passed to EAs was a key priority and  ...  view the full minutes text for item 6.

Report of the Deputy Chief Executive and City Treasurer.

This report updates on the main announcements from the provisional local government finance settlement 2023/24 announced 18 December 2023. There is a focus on the impact on the Council’s budget for 2024/25 to 2026/27 and the next steps in the 2024/25 budget setting process.  

The committee considered a report of the Deputy Chief Executive and City Treasurer whichprovided an update on the main announcements from the Provisional Local Government Finance Settlement 2023/24 which was announced on 18 December 2023.

Key points and themes within the report included:

• Providing an introduction and background to the Finance Settlement;
• Manchester’s Core Spending Power (CSP) would increase by £41million;
• Changes to business rates, including the introduction of a standard business rating multiplier;
• Retail, Hospitality and Leisure Relief and the New Homes Bonus would continue for a further year;
• Social Care grants were largely in line with expectations;
• The Services Grant had been cut by 84%;
• Implications of these announcements on the Council’s budget; and
• Next steps and conclusions.

The Executive Member for Finance and Resources introduced the item and explained that the Provisional Local Government Finance Settlement was received late and worse than the Council had anticipated. He stated that the potential budget gap for 2024/25 had increased to c. £5million, compared to a £1.6m gap which was previously expected. He noted that in-year pressures, particularly around Adult Social Care, meant that the Council was increasingly reliant on the use of reserves. He highlighted that the Provisional Finance Settlement allocated some extra monies for adult social care and public health but that this did not go far enough to compensate for the reduction of the Service Grant.

He recognised that several local authorities in England had served Section 114 notices and stated that the Local Government Association was monitoring other authorities at risk of this due to pressures felt by councils nationally and in the context of 14 years of government-imposed austerity. He stated that the Council would continue to lobby government and identify the most efficient way to maximise resources and he expressed his desire for a change in government.

The Deputy Chief Executive and City Treasurer reiterated the disappointing outcome of the Settlement but stated that officers were focused on next steps in the budget process. She advised that some funding rebates were expected from GMCA and work was ongoing to identify ways to close the budget gap. She expressed her confidence that a balanced budget for 2024/25 would be proposed for consideration by the committee in February. 

In discussing the item, a member highlighted the cumulative budget cuts to the Council since the beginning of austerity measures and the impact of this.

Decision:

That the committee endorses the recommendations to the Executive.

The committee considered a report of the Deputy Chief Executive and City Treasurer which provided an update on the current work being undertaken to review all sales, fees and charges as part of the 2024/25 budget process to ensure that charges were correct, that the costs of providing the services were recovered, and to identify opportunities for increasing existing budgets in order to support the overall Council 2024/25 budget.

Key points and themes within the report included:

• Providing an overview of sales, fees and charges in the current financial year;
• The review process and proposed price increases for 2024/25 by service;
• £1m of additional income budgets as a result of this exercise would contribute to achieving a balanced budget; and
• Future opportunities and risks.

Some of the key points and queries that arose from the committee’s discussions included:

• Noting that some charges, particularly in bereavement services, were to be confirmed but should not be increased significantly;
• Charges to residents who sell a property of which the Council was the freeholder;
• Suggesting that the £0.674m shortfall from off street car park charges should not be marked as green in the RAG rating in the budget papers; and
• The waste and pest control fees, which were still to be agreed, and whether these would be increased by 5%.

The Deputy City Treasurer explained that the report aimed to provide greater transparency and visibility of the Council’s sales, fees and charges. He stated that these fees were increased to support service delivery and this was important given the financial pressures facing the authority.

The Head of Finance (Corporate Core, Neighbourhoods, Growth and Development) explained that a review of sales, fees and charges formed part of the overall budget-setting process and highlighted that income generation could be variable and impacted by factors outside of the Council’s control. He stated that the review had assessed the Council’s income budget in addition to existing prices and activity levels and tried to identify future prices against a backdrop of the ongoing cost-of-living crisis. He advised that work was ongoing in some services to assess the impact of fee increases and that this would form part of the final budget proposals for consideration in February.

In response to members’ queries, the Head of Finance (Corporate Core, Neighbourhoods, Growth and Development) reiterated that work on fee increases for bereavement services was ongoing and that the service was assessing the implications of activity levels and demand in addition to prices. This would be confirmed in the budget paper in February.

The Head of Finance (Corporate Core, Neighbourhoods, Growth and Development) confirmed that charges for buying a freehold from the Council were included under the wider investment estate. He stated that the Growth and Development directorate had a wider Estates service with a wide-reaching remit over building leases, rentals, assets and freehold payments. The Strategic Lead (Development) explained that these payments related to consent or fees for profession work and no income was derived from the sale of a property.

In  ...  view the full minutes text for item 8.

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.

The committee received a report of the Governance and Scrutiny Support Unit which provided details of key decisions that fell within the Committee’s remit and items for information previously requested by the Committee. The report also included the Committee’s work programme, which the Committee was asked to amend as appropriate and agree.

Decision:

That the report be noted.

Report of the Deputy Chief Executive and City Treasurer.

The Council is involved in a wide range of commercial activities, including, but not limited to, provision of loans to third parties, Joint Ventures, investments into a range of initiatives and property transactions. This report provides an overview the governance and assurance activity which take place before, during and post completion of commercial transactions.

This report is accompanied by Part B report, which goes into more detail about the Council’s commercial ventures.

The committee considered a report of the Deputy Chief Executive and City Treasurer which provided an overview of the governance and assurance activity which took place before, during and post completion of the Council’s commercial transactions.

Key points and themes within the report included:

• Providing an introduction and background to the Council’s commercial activity;
• The work of the Commercial Board, including directorship training and the Due Diligence Framework;
• The regulation of commercial activity;
• Public Interest and Best Value Reports; and
• Risk management.

The Head of Commercial Governance, Assurance and Initiatives stated that commercial governance was more important than ever given the budgetary and regulatory context that local authorities were operating in. She stated that Manchester City Council had established a robust, transparent and accountable structure to ensure appropriate oversight, monitoring and reporting of its commercial portfolio.

In response to a member’s query regarding reported high energy costs facing the Council, the Head of Commercial Governance, Assurance and Initiatives explained that steps had recently been taken to provide security through green energy and budgetary benefits through the Power Purchase Agreement, which was approved by Executive in December 2023. She also confirmed that a full response had been provided to Manchester Evening News’ enquiry about high energy costs.

The Deputy Chief Executive and City Treasurer explained that figures on energy costs initially included VAT which had been claimed back. She highlighted that the Council had retendered its energy contracts at the start of the war in Ukraine and that the budget proposals showed significant savings as a result of the retendered electricity contract and the gas contracts would be in a similar position soon.

Decision:

That the report be noted.

The officers consider that the following item contains exempt information as provided for in the Local Government Access to Information Act and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information. The Committee is recommended to agree the necessary resolutions excluding the public from the meeting during consideration of this item.

Decision:

That the press and public be excluded during consideration of the following item which involved consideration of exempt information relating to the financial or business affairs of particular persons and public interest in maintaining the exemption outweighed the public interest in disclosing the information.

Report of the Deputy Chief Executive and City Treasurer.

The Council is involved in a wide range of commercial activities, including, but not limited to, provision of loans to third parties, Joint Ventures, investments into a range of initiatives and property transactions.

This Part B report provides further detail regarding the structure, financing and terms of these arrangements.

The committee considered a confidential report of the Deputy Chief Executive and City Treasurer which provided further detail to the Part A report on the Council’s commercial activities, including, but not limited to, provision of loans to third parties, Joint Ventures, investments into a range of initiatives and property transactions.

The committee discussed the structure, financing, and terms of these arrangements. As part of these discussions, a further report on Manchester Life was requested and officers endeavoured to bring this to the committee in the new municipal year.

Decision:

That the report be noted.