The Chair has agreed to an urgent item of business to consider the call-in of the decision of the Strategic Director (Growth and Development) on 6 February 2025 to approve the acquisition of a site to facilitate the regeneration of Chorlton District Centre.

This has been called in by Councillors Leech, Northwood, Nunney, Abdullatif, Good and Wiest in accordance with paragraph 13.3 of the Scrutiny Procedure Rules.

The terms of the call-in are that the details of how the land would be used, by who, and for what purpose, is unclear. It is also unclear whether the Council needs to acquire the land at all, and no details about whether the acquisition is good value to the Council or the residents of Manchester.

A copy of the Decision Notice is attached.

Members of the Committee are asked to consider all relevant matters, debate the issues and decide which of the resolutions set out below it wishes to adopt.

       i.          Support the decision

      ii.          Refer back to Decision Taker (with or without recommendations)

    iii.          Refer to Council (only applicable if the decision is contrary to the policy framework or contrary to or not wholly in accordance with the budget)

The Chair agreed to bring an urgent item of business to consider the call-in of the decision of the Strategic Director (Growth and Development) on 6 February 2025 to approve the acquisition of a site to facilitate the regeneration of Chorlton District Centre. 

The committee considered the Key Decision that had been called in by five members of the Council to ascertain whether this complied with the Council’s decision-making process. If the Committee believed that this had not been complied with, it could then refer the matter back to the decision-maker for reconsideration. 

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On behalf of those who had signed the request, Councillor Leech was invited by the Chair to explain the reasons for calling in the decision. Councillor Leech explained that he proposed the call-in of this decision as he did not believe the decision notice contained sufficient detail of the location of the site; the services it would provide; what the off-market transaction was; and the impact of this on the cost of the acquisition. He also expressed concern over the NHS’ long-term commitment to the site and stated that he wanted members of the committee to have the opportunity to review whether what he determined were vague details within the decision notice justified the decision being approved without scrutiny.  ? 

The Deputy Leader responded to Councillor Leech’s statement by explaining that he had advised Councillor Leech that calling in the decision would risk creating a bidding war and therefore could jeopardise the acquisition of the site. He explained that ward members for Chorlton had been briefed on the decision and were supportive of the acquisition, stating further that the decision notice provided all members with an opportunity to discuss the decision with officers. He stated that the acquisition of the site constituted a positive development that residents needed and wanted, acknowledging capacity pressures for primary care in Chorlton, and emphasised the risks should the decision not be upheld.  

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The Director of Development was in attendance to answer questions of the committee on behalf of the Strategic Director (Growth and Development). He explained that there a delicate balance in the key decision wording for commercial deals was necessary. He emphasised that the wording regarding the off-market transaction was correct as the Council was not part of a competitive process to acquire the site and the vendor was asset-holding and of a high net worth and was not likely to put the site on the market unless it was sold for residential development at a much higher value. With regard to the strategic rationale for acquiring the site, the Director of Development stated that this was one of few remaining commercial properties within the Chorlton district centre and stated that the NHS had demonstrated a long-term commitment to the site by visiting the site and commissioning the District Valuer Services to value the long-term lease and Heads of Terms had been agreed.  

Members sought clarification on whether an agreement in principle had been reached with the NHS, to which the  ...  view the full minutes text for item 6.

To approve as a correct record the minutes of the meeting held on 16 January 2025.

Decision: That the minutes of the meeting held on 16 January 2025 be approved as a correct record.

Report of the City Treasurer and the Assistant Director of Integrated Commissioning and Procurement.

This report provides context to the proposed new Social Value Policy, outlines the process which has been undertaken to update the policy, highlights the main changes and the rationale for these decisions, and explains how the new policy will be implemented and monitored.

The committee considered a report of the Deputy Chief Executive and the Assistant Director – Integrated Commissioning and Procurement which provided context to the proposed new Social Value Policy and outlined the process undertaken to update the policy. 

Key points and themes within the report included: 

• The main changes to the Social Value Policy and the rationale for these decisions; 

• The updated Social Value Policy reflected the Council’s current approaches to social value, built on national good practice, and responded to new priorities in the city including the 2023 Making Manchester Fairer Strategy and the 2024 Investing in Success Economic Strategy; 

• How the new policy would be implemented and monitored; and  

• The Council’s ambitions for additional social value developmental work in the coming years, including improving accessibility of tenders and creating a directory of local social economy organisations.  

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

• The impact of organisations not being equipped to deliver social value initiatives; 

• What support would be given to smaller organisations and new suppliers to engage with the Social Value Policy; 

• How social value outcomes would be measured and what mechanisms were in place to ensure accountability; 

• How the amended policy factored into the standardisation of key performance indicators (KPIs) and progress with this; and 

• The budgetary and staffing commitments required to drive social value. 

The Deputy Executive Member for Finance and Resources introduced the report and stated that Manchester had a long and proud history in leading on social value and this policy ensured the continuation of this. She stated that Manchester’s commitment to social value began prior to the introduction of Social Value Act in 2012 and went further than the legislative requirements. She commented that social value delivered meaningful benefits to the community, economy and environment and that it was used as a mechanism to drive inclusive growth and support vulnerable residents. She advised that the new policy built on the ambitions of the previous policy launched in 2020 and set new precedents, such as responding to new priorities such as Making Manchester Fairer. She expressed the belief that the policy would also make Manchester the first local authority to consider inherent social value in its tender process and the new priorities had been shaped by businesses and the voluntary sector. The Deputy Executive Member for Finance and Resources reiterated the Council’s position as a leader within this area and commended the work of officers, particularly the Social Value Programme Lead.  

The committee were advised that the report contained two typographical errors at paragraph 1.4 and 4.5, which should read that Manchester City Council has also worked closely with the Centre for Local Economic Strategies (CLES). 

The Assistant Director – Integrated Commissioning and Procurement advised the committee that the National Procurement Policy Statement (NPPS) had been published and was due to be announced in Parliament later that day. He commented that this set the strategic priorities for social value from public procurement and how contracting authorities could support their  ...  view the full minutes text for item 8.

Report of the Strategic Director (Neighbourhoods).

This report provides an update to the Committee on the advertising contracts held by the council, including an overview of their economic impact and wider value.

The committee considered a report of the Strategic Director (Neighbourhoods) which provided an update to the committee on the advertising contracts held by the Council and an overview of their economic impact and wider value. 

Key points and themes within the report included: 

• Out-of-home (OOH) advertising is an umbrella term for a range of advertising that can be found outside of a consumer’s home (excluding mobile devices), with the term Digital Out-of-Home (DOOH) typically used to distinguish modern, technology-driven displays; 

• Noting that the majority of advertising in Manchester is privately-operated and sits outside the remit of the Council; 

• A 10-year small format DOOH Advertising contact is in place with JCDecaux consisting of 86 digital advertising screens within the city centre. The contract is due to expire in 2031 with an option to extend for a further 5-years until 2036; 

• A contract with Ocean Outdoor for large format OOH advertising on a fixed revenue rate which included 24 large format mixed structure units (digital/non-digital) and 18 smaller Loop units would expire at the end of September 2025. The Loop units within the large format contract with Ocean Outdoor were to be transferred to JCDecaux as of 1 October 2025; 

• These contracts provide the council with substantial free access to advertising screens without bearing significant marketing and communication expenses with an annual gross media value of over £3M; 

• Recognising that advertising sites provided a valuable platform to share positive messages and information on key social and sustainability issues with local communities, encouraging residents to engage and participate in local events, services, and initiatives; screens also play a critical role to bid and secure major sporting and cultural events in Manchester ensuring the city stands out and attracts high-profile opportunities that connect with and inspire residents, contributing to Manchester's Visitor Economy Strategy. 

• Contract performance frameworks were in place to measure finance, quality and social value; 

• All advertising assets were powered by 100% renewable energy sources and equated to zero emissions with luminance levels within the required level as well as the screens being switched off during the period of 24:00 – 06:00; 

• Significant social and economic benefits were generated by the advertising contracts; and 

• Close consultation with colleagues in Planning, Estates and Highways would take place to identify future locations and to ensure that designs and sitings are appropriate. 

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

• How data from air quality sensors on small format advertising screens was used to make decisions;  

• How residents could input into decisions regarding the expansion of advertising screens;  

• The powers of the Council to determine what is advertised;  

• Whether additional advertising restrictions could be incorporated, particularly around high carbon advertising, given the current contract timescales;  

• The income stream and costs associated with out-of-home advertising;  

• The criteria used to identify appropriate sites for future advertising infrastructure;  

• Whether a formal assessment had been undertaken to understand impact of advertising policy on behaviours; and  

• The use of capital fund to support the installation of advertising  ...  view the full minutes text for item 9.

Report of the City Treasurer

This report provides a high-level overview of the updated budget position. Each scrutiny committee is invited to consider the proposed changes which are within its remit and to make recommendations to the Executive before it agrees the final budget proposals on 19 February 2025. 

The committee considered a report of the City Treasurer that provided a high-level overview of the updated budget position.?? 

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Key points and themes within the report included:? 

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• Providing an introduction and background;? 

• Reporting that when the Council set its 2024/25 budget in February 2024, it was forecasting a budget shortfall of £29m in 2025/26 increasing to £41m in 2026/27 and £77m by 2027/28;? 

• It was now expected that, subject to the outcome of the budget consultation a balanced budget could be set for 2025/26 after the application of savings approved in previous budget rounds of £10.6m, new proposed savings of £18.2m, and the use of c£18m smoothing reserves, alongside grant increases announced in the provisional settlement on 18 December 2024; and??? 

• At the time of writing the report the final settlement had not yet been released, any changes between the provisional and final settlement would be reported to the Executive alongside any changes to the proposals outlined as a consequence.? 

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Some points and queries that arose from the committee’s discussions were:?? 

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• Noting savings through the reduction of vacant posts, and seeking reassurance that there remained capacity to deliver services;?? 

• Why the budget for addressing the 2024/25 position over the next three years had increased by £8m since the last report in December;? 

• Borrowing limits and interest rates, and what was being done to address these pressures;?? 

• Whether the money received from the government to subsidise the increased employer National Insurance contributions for direct employees matched the cost;? 

• Noting that sub-contracted employees where liability for National Insurance payments lay with the Council would not be included within the government rebate;? 

• Welcoming the new government Recovery Grant but noting that this was only confirmed for 12 months and querying if the Council was lobbying government to ensure that the continuation of this grant was guaranteed within a multi-year settlement; and? 

• Reaffirming the Council’s commitment to insourcing services.?? 

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The Executive Member for Finance and Resources stated that the Council was now expected to deliver a balanced budget for 2025/26 after the application of savings approved in the previous budget, new proposed savings of £18.2m that had been considered at the December meeting, the use of c£18m smoothing reserves, alongside grant increases announced in the provisional settlement on 18 December 2024 and an increase in Council Tax of 4.99%. He stated that since the report had been produced Manchester had received a £5.4m rebate from the Greater Manchester Combined Authority’s waste reserve. He said that £4.6m of this would be invested to clean streets, tackle flytipping, improve green spaces and leaf collection. He further commented that £400k would be used to reverse the previous decision taken to start charging for replacement recycling bins, which would have applied from April 2025. The remaining £338k would be spent on improved enforcement of mould and damp in the Private Rented Sector. He recognised that pressures still existed, particularly in relation to demand across Adult Social Care and Children’s Services and due to the impact of government funding  ...  view the full minutes text for item 10.

Report of the Deputy Chief Executive; City Treasurer; and Strategic Director (Neighbourhoods).

This report provides a further update to members on the priorities for the services in the remit of this committee and details the proposed changes to the budget. Each Scrutiny Committee is invited to consider the proposed budget changes that are within its remit and to make recommendations to the Executive before it agrees to the final budget proposals on 19 February 2025.

The committee considered a report of the Deputy Chief Executive; the City Treasurer; and the Strategic Director (Neighbourhoods) which provided an overview of the services and key priorities under the remit of this committee, which included the Corporate Core services and operations and commissioning services within the Neighbourhood Services directorate. It also included details of the already approved savings and investments and details of further savings proposals for consideration as part of the budget process to help ensure an overall balanced budget.? 

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Key points and themes within the report included:? 

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• The 2024/25 gross Corporate Core budget was £345.6m, with a net budget of £116.6m, and 2,114 full time equivalents (FTE) were currently employed within the directorate;? 

• The gross budget for traded services within Operations and Commissioning was £17.346m, with a net income of £7.376m, and 128 fte employees;? 

• Ongoing cost-of-living support, in which over £60m was planned to be invested;? 

• The 2024/25 in-year financial position, reporting that the Corporate Core currently forecasted an underspend of £3.042m as at the end of December, following actions taken to mitigate the wider organisation overspend;? 

• The Corporate Core delivered savings of £1.359m in 2024/25 and has a further £1.089m of savings for 2025/26 in addition to savings proposals totalling £8.953m over the next three years;? 

• An initial review of long-term vacancies had been undertaken and to date 33.89 long-term vacant posts had been identified for deletion, with total savings of £1.121m already identified. 20.17 of those proposed were from the Corporate Core;? 

• A further £3.333m savings were proposed through a combination of increased collection of Council Tax and Business Rates to be achieved through initiatives, including additional premium on furnished properties, clear credit balances and a review of single person discounts;? 

• Fees and charges of traded services were reviewed annually and were proposed to increase by 5% from 2025/26;? 

• Government grants and other income, which currently amounted to over £180m; and?? 

• Future opportunities and risks.?? 

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The Directorate Head of Finance stated that the report included detail on c.£60m of cost-of-living support offered by the Council. He stated that the Council was awaiting guidance on the seventh phase of the Household Support Fund (HSF7) but proposals had been developed based on previous schemes and activities. He explained that the core savings proposals for the Corporate Core amounted to £8.9m over three years, of which £8.5m was frontloaded, through increased income or efficiencies. Proposed savings within Operations and Commissioning amounted to £3.5m through increased income.?? 

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The Chair noted that the committee had scrutinised budget proposals in detail in December 2024 and that the report would be considered at the committee’s meeting in late February along with a suite of budget reports.?? 

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Decision:? 

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That the budget proposals be endorsed to the Executive.?? 

Report of the City Treasurer.

This report provides an overview of the governance and assurance activity which take place before, during and on completion of the Council’s commercial activities.

This Part A report is accompanied by Part B report, which goes into more detail about the Council’s these arrangements and is restricted due to the commercially confidential nature of the content of the report.

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

Key points and themes within the report included: 

• The Council was involved in a wide range of commercial activities, including, but not limited to, the provision of loans to third parties, joint ventures, investments into a range of commercially structured initiatives and property transactions; 

• The role of the Commercial Board, which covered matters such as procurement, income generating contracts, fees and charges, utilisation of agency staff and the Subsidy Control Act; 

• Directorship training, which 30 members and officers had completed; 

• The Council’s Shareholder Panel which met monthly to review the performance of various entities, provide assurance on compliance with Shareholder Agreements, have oversight of company reviews and look to resolve any emerging issues; 

• The Due Diligence Framework and Register of Significant Partnerships; 

• How commercial activity was regulated; and  

• Risk management and oversight and how this ensured the Council’s interests were protected. 

The Assistant Director – Commercial Governance and Corporate Energy stated that commercial governance was more important than ever in the current budgetary and regulatory context. She explained that the Council had developed a robust, transparent and accountable structure that ensured appropriate oversight, monitoring and reporting across all elements of its commercial portfolio.  

There were no questions from the committee on this report.  

Decision: 

That the report 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 responses to previous recommendations, details of key decisions that fell within the Committee’s remit and any items for information previously requested by the Committee.  

The Chair advised the committee that the meeting on Wednesday 26 February would be held in the Council Chamber.  

Decision:  

That the report be noted and the work programme approved. 

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 the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

Report of the City Treasurer.

This Part B report provides an overview of the structure, financing and terms of the most significant commercial activities and arrangements which the Council is a party to.

The committee considered a confidential report of the City Treasurer which provided supplemental information to the Part A report regarding the Council’s commercial arrangements. 

Some of the committee’s queries and lines of inquiry included exit arrangements; loan facilities; repayment terms; and scrutiny of high-value investments.  

Decision: 

That the report be noted.