To consider any items which the Chair has agreed to have submitted as urgent.

In opening the meeting, the Chair informed the committee that there was one item of urgent business relating to the recent issuing of a Section 114 notice by Birmingham City Council.

The Deputy Chief Executive and City Treasurer stated that, whilst she could not comment on the individual circumstances, she hoped this announcement would not detract from the challenges and pressures faced by local authorities. The impact of funding reductions and inflation had significantly impacted many authorities and she explained that a Budget Monitoring report would be considered by the Executive later in the month which highlighted an in-year overspend which was largely driven by pressures in the social care sector, for which the Council was looking at mitigation measures.

The Deputy Chief Executive and City Treasurer assured the committee that Manchester City Council was relatively financially resilient due to previous decisions and was not anticipating having to issue a Section 114 notice.

The Executive Member for Finance and Resources commended the current City Treasurer and her predecessor. He stated that successive Conservative governments had underinvested in local government funding, which disproportionately impacted Manchester. He called on the government to review the local government funding formula and to end the use of 1-year funding settlements.

To approve as a correct record the minutes of the meetings held on Thursday, 20 July 2023 and Thursday, 24 August 2023.

Members received and considered the minutes of the previous meeting. A query was raised under minute number RGSC/23/43 regarding whether a report on further financing requests for Aviva Studios would be considered by the committee. The Deputy Chief Executive and City Treasurer advised that the Capital Monitoring report would be considered by Executive later in the month and further detail on this was included in the report. A further report would be submitted to Resources and Governance Scrutiny Committee once the final account was available.

In response to a query regarding whether some of the points raised during the discussion of Part B items could be included in the minutes, the Deputy City Solicitor stated that he would advise the member on this outside of the meeting.

Decision:

That

1. the minutes of the meeting held on 20 July 2023 be approved as a correct record, and
2. the minutes of the meeting held on 24 August 2023 be approved as a correct record.

Report of the Deputy Chief Executive and City Treasurer.

This report proposes changes to the Council’s Council Tax Support Scheme to ensure 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 Chair of the Committee has also invited ACORN to submit a written representation, which is appended to this item.

The committee considered a report of the Deputy Chief Executive and City Treasurer which proposed changes to the Council Tax Support Scheme (CTSS) to ensure 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.

Key points and themes within the report included:

·        The proposed CTSS would pay up to 85% of the Council Tax bill, leaving 15% to pay, compared to the current CTSS which paid up to 82.5% of the Council Tax bill leaving 17.5% to pay;

·        It was also proposed to extend the CTS backdating period for working-age and pension-age claims from six-months to 12-months;

·        The background to council tax and previous CTS schemes in Manchester;

• The options for consideration;
• Consultation would be undertaken with precepting authorities and residents; and
• Key policies and considerations.

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

• Expressing broad support for the proposals;
• How the Council helped those ineligible for CTS; and
• What evidence there was to suggest that most CTS cases did not need backdating for the full six months to award the additional eligible period of CTS.

The Head of Revenues, Benefits and Customer Services explained that the CTSS provided support to residents on low income by reducing the amount of council tax they were required to pay. The proposed changes would apply from April 2024 and a thorough consultation exercise would be undertaken with the outcomes and final proposals reported back to the committee in January 2024.

In response to queries, the Head of Corporate Assessments explained that there were a number of discretionary schemes in place for those residents who were not eligible for the CTSS, such as the Discretionary Council Tax Payments scheme which allowed a greater level of scope for individuals who may require assistance. He stated that the Discretionary Housing Payments scheme could also be used to address other financial pressures, although it was noted that recipients of this scheme must be in receipt of Housing Benefit or Universal Credit. There was also the Welfare Provision scheme and the Household Support Fund 4 and the Council remained open to finding the best response to individual circumstances where possible. 

The Head of Corporate Assessments stated that an underlying entitlement to the CTS benefit would be required for the Council to consider backdating. The proposed change would give additional flexibility to provide the maximum amount of support to households who struggled to make a claim for CTS at the point they needed it.

The Executive Member for Finance and Resources stated that the cost-of-living crisis remained a serious issue for many residents and the proposed changes to the CTSS would fulfil the Council’s commitment to support those residents most in need.

Decision:

That the committee

1. notes the report, and
2. notes that the outcome of the consultation will be reported back to the committee and for approval by the Executive and Full Council in January 2024.

Report of the Deputy Chief Executive and City Treasurer.

This report provides an update on the activity of the Revenues and Benefits Unit as set out in the March 2023 Scrutiny Report, including final details of recently completed Covid schemes and ongoing cost of living schemes delivered by the service.

The committee considered a report of the Deputy Chief Executive and City Treasurer which provided an update on the activity of the Revenues and Benefits Unit since March 2023, including final details of recently completed Covid schemes and ongoing cost of living schemes delivered by the service.

Key points and themes within the report included:

• Benefits administration, including Council Tax Support and the management of the Welfare Provision Scheme and other discretionary schemes;
• The financial support provided by the Household Support Fund scheme;
• The financial support provided by the Council Tax Support Fund;
• The financial support provided by the Energy Bills Support Scheme Alternative Funding programme;
• The financial support provided by the Alternative Fuel Payment Alternative Funding scheme;
• Performance in the collection of council tax and how we balance collection, whilst working in an ethical way and supporting those residents on a low income; and
• Performance in the collection of business rates in the 2022/23 financial year and between 1 April and 31 July of the 2023/24 financial year.

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

• Welcoming the report;
• Querying whether any extra and more innovative communications could be used to highlight the support available and to reiterate that contacting the Council would not have a detrimental impact on a resident’s case;
• Suggesting that Appendix 4 could be shared with members and advice agencies for distribution in their communities;
• The purpose of passing cases with a debt less than £150 to Enforcement Agents given that these cases are returned without an in-person visit;
• Whether there was a legal requirement to ask residents to pay their entire council tax bill in full if they missed one payment;
• How effective the Council was in receiving council tax debts in cases passed to Enforcement Agents;
• How a holistic approach was undertaken;
• Noting that Enforcement Agents were not used in 1 in 7 cases where a resident was vulnerable and/or qualified for CTSS and querying why this could not be rolled out fully;
• Noting the low take-up level of the Energy Bill Support Scheme Alternative Funding;
• The real cost to residents of using Enforcement Agents; and
• Whether the Council was currently involved in any government pilot schemes.

The Head of Revenues, Benefits and Customer Services explained that the report set out the significant work undertaken by the Revenues and Benefits Unit since the last update to the committee in March 2023 and detailed the continued delivery of core functions and services and the role played in providing critical financial support to residents and businesses through local and government grants and schemes. He stated that the Unit would continue to ensure that any available funding had the best impact for residents and communities.

In response to a question around effective communications, the Head of Revenues, Benefits and Customer Services stated that work was ongoing with colleagues in the Communications team to identify new ways to engage with residents. He advised that a working group had been established to undertake a review  ...  view the full minutes text for item 50.

Report of the Deputy Chief Executive and City Treasurer.

This report sets out what automation means for the Council as there are many different technologies associated with automation, one of which is Artificial Intelligence. Section 1 provides an introduction for this report written by ChatGPT.

The committee considered a report of the Deputy Chief Executive and City Treasurer which established the Council’s current position on and plans for automation and artificial intelligence (AI) and defined the different terminologies that often get grouped into this.

Key points and themes within the report included:

• An introduction written by artificial intelligence software, ChatGPT;
• The benefits of automation for the Council;
• Types of automation;
• Opportunities and risks from the ongoing development of AI; and
• Future ambitions for automation and AI and next steps.

Key points and queries that arose from the committee’s discussion included:

• Noting the evolving nature of AI and automation;
• The impact of AI and automation on the workforce, and whether staff are consulted on proposed changes;
• Whether there were any real examples of AI being used to drive efficiencies and to streamline processes;
• Requesting that future reports include case studies;
• The need to implement new technologies appropriately so as not to alienate residents;
• How the use of AI and automation would change job roles;
• Whether an ethical approach would be taken to implementation of AI;
• Issues around intellectual property rights;
• Recommending that this be a standing item for discussion at Joint Consultative Committee (JCC) meetings; and
• Noting that Google Meet allowed AI personas to attend virtual meetings, and querying whether this would be rolled out within the Council.

In introducing the item, the Director of ICT recognised the growing profile of AI and automation within the news and explained that the Council had been using some established automation software for a substantial period of time.

In response to members’ questions, the Director of ICT concurred that AI and automation was a fast-moving issue. Members were interested to note that some job applications received by the Council appeared to be written by AI and new technologies were being developed to identify what had been created through AI. Briefing sessions on new technologies would be arranged for members later in the year.

The Director of ICT acknowledged the importance of engaging with the workforce and unions. He noted that engagement had been undertaken previously where new systems or technologies were implemented and that a report had been requested by the JCC on the impacts of AI and automation.

With regards to real examples of AI in use, the committee was informed of two pilots regarding issuing blue badges and reconciliation of earnings which were being designed. A further report on these pilots could be provided to the committee at a later date.

The need to create guidance on how the Council will use AI and automation was highlighted to ensure the right processes and procedures were in place. The impact of AI and automation in changing job roles was acknowledged as more technologies were adopted and would provide greater flexibility for staff to work on other tasks.

In response to a query around intellectual property rights, the Director of ICT explained that legislation and regulations on this were awaited from the government, but the Council would put its  ...  view the full minutes text for item 51.

Report of the Deputy Chief Executive and City Treasurer.

This report provides an update on the Resident and Business Digital Experience Programme (RBDxP), the Programme’s approach to user engagement and progress made in the procurement of new technology to replace the Council’s existing Customer Relationship Management (CRM) System, eForms and integration technology. The report also provides an update on the ongoing improvements that the Revenues and Benefits service are introducing to improve how the Council interacts with residents and businesses which compliments the RBDxP.

The committee considered a report of the Deputy Chief Executive and City Treasurer which provided an update on the Resident and Business Digital Experience Programme (RBDxP), the Programme’s approach to user engagement and progress made in the procurement of new technology to replace the Council’s existing Customer Relationship Management (CRM) System, eForms and integration technology.

Key points and themes within the report included:

• Providing an introduction and background to RBDxP;
• Recent progress made;
• The approach to procurement of a new Digital Platform;
• The approach to implementation;
• Timescales;
• Priorities and next steps for the Programme; and
• Improvement activities in the Revenues and Benefits Unit.

Key points and queries that arose from the committee’s discussion included:

• Seeking assurances that the Council’s Public Services Network (PSN) was robust;
• How those residents who were digitally excluded or who did not contact the Council digitally would be consulted with;
• Noting that young people can also experience digital exclusion;
• The timescales for implementation of the new CRM system;
• Whether the new CRM system would allow photo uploads;
• How a non-resident could report an issue through the CRM system;
• The possible impact of decommissioning the previous CRM system without all current functionality being delivered; and
• Whether emails would remain a channel for communication.

The Head of Revenues, Benefits and Customer Services explained that RBDxP was a key workstream under the Council’s Future Shape programme, which sought to replace the current CRM system, integration technology and website with an integrated digital platform which worked collaboratively for the benefit of residents, members and businesses when interacting with the Council. He highlighted the extensive engagement which had taken place with residents, community groups, businesses and members to ensure these new systems meet their needs and expectations. He stated that a series of user personas had been developed and would be at the heart of the system design to overcome any barriers and challenges users currently faced when interacting with Council services.

In response to queries, the Head of Revenues, Benefits and Customer Services stated that retaining PSN-compliance was a priority for the programme and this was largely the driving factor behind the deadline to replace the current CRM system by February 2024. He explained that significant work around form build and design had been undertaken and that further progress could be made now that Verint had been appointed as the Council’s CRM provider.

Regarding the engagement methods, the committee was advised that the programme would not replace technology like-for-like but would improve the experience of and the way that the Council communicated with residents and businesses to allow for a more joined-up experience. The Head of Revenues, Benefits and Customer Services explained that there had been direct engagement with Age Friendly Manchester and a number of public drop-in sessions had been held with the Equality, Diversity and Inclusion team and work had been undertaken with the digital inclusion team. The RBDxP Programme Manager stated that feedback sessions had been held in the Town Hall Extension, Central Library, Longsight and Gorton.  ...  view the full minutes text for item 52.

Report of the Deputy Chief Executive and City Treasurer.

This report provides an update on the current position of the Medium-Term Financial Plan and the planned approach to the 2024/25 budget process.

The committee considered a report of the Deputy Chief Executive and City Treasurer

which on the current position of the Medium-Term Financial Plan and the planned approach to the 2024/25 budget process.

Key points and themes within the report included:

• The current Medium-Term Financial Plan, approved in February 2023;
• The context behind the budget;
• The proposed approach and refresh of the 2024/25 position; and
• Timescales and next steps.

The Deputy Chief Executive and City Treasurer stated that the government’s Autumn Statement would be provided on 22 November 2023 with the Finance Settlement expected in late December.

Members expressed their disappointment that the Council had to prepare in such a manner as a result of the unpredictability of the government to provide adequate funding and to provide this information in a timely manner.

The Deputy City Treasurer commented that the Council was entering a challenging phase with regards to the budget and stated that officers were working to find suitable solutions and hoped to be in a sustainable position. 

Decision:

That the proposed approach be noted.

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 and the work programme agreed.