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

In opening the meeting, the Chair advised that he had agreed to bring forward an item of urgent business relating to a recent Key Decision which Councillor Leech was considering calling in. The Key Decision related to the approval of capital expenditure of £1,302,000 for the acquisition of leasehold investment in Holt Town.

The Chair invited Councillor Leech to explain his concerns regarding this decision. Councillor Leech explained that when the decision was first published, he requested further information on when and how much the Council had previously sold the lease for to ensure that the decision reflected value-for-money. He stated that he received a response 4 working days later to clarify his request and that the information was provided on the morning of the day when the call-in period would end. Councillor Leech stated he felt this length of time was unacceptable and that he had been unable to garner the necessary support for a call-in due to the length of time taken to provide the requested information. He stated that he had been told that a report would not be ready to provide to the committee today had he called the decision in, which he did not agree with, and expressed his opinion that Scrutiny Committees should be chaired by Opposition members. He did, however, state that he had since received the information he requested and that this was satisfactory enough not to warrant calling the decision in.

The Chair acknowledged Councillor Leech’s concerns and commented that officers involved in making Key Decisions should be prepared to respond to questions from members in a timely manner.

The Deputy Chief Executive and City Treasurer, who was the decision-maker, apologised to Councillor Leech and recognised that it was unacceptable to receive such a late response to a call-in query. She explained that the contact officer for this decision had been on annual leave when Councillor Leech’s enquiry was sent and that she and the City Solicitor would discuss with colleagues in the Senior Management Team to ensure that arrangements were in place going forwards to provide timely responses to queries. She assured members of the strategic importance of the Holt Town regeneration project and that she believed the acquisition to constitute good value for money and that it was in line with the Council’s aspirations. She concluded by reaffirming the value of the scrutiny and democratic process.

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 9.

To approve as a correct record the minutes of the meeting held on 11 January 2024.

Decision:

That the minutes of the meeting held on 11 January 2024 be approved as a correct record.

Report of the Chief Executive.

This report outlines the planning and governance arrangements for the implementation of existing and new duties within the Elections Act 2022 for Manchester. This includes developing extensive engagement and producing an Elections Outreach Pack.

The committee considered a report of the Chief Executive which outlined the planning and governance arrangements for the implementation of existing and new duties within the Elections Act 2022.

Key points and themes within the report included:

·       Providing an introduction and background to the Elections Act 2022;

·       Progress with the duties implemented in May 2023, such as voter ID and accessibility;

·       Community engagement and communications for elections in 2023 and 2024;

·       Governance and capacity, including the GM-wide Strategic Elections function, the Council’s Elections Act Steering Group and additional staff resources within the core elections team;

·       New duties which have come into force since the May 2023 election, such as online absent voting applications, changes to postal vote handling rules, changes to overseas voting and parliamentary boundary changes;

·       Ongoing preparations for a UK Parliamentary election;

·       The establishment of an Elections Act Forum and the development of the Elections Outreach Pack; and

·       Changes expected to be implemented after May 2024 elections.

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

·       Querying whether reference in the report to a ‘tactical voting device’ was correct;

·       If the Electoral Commission’s national campaign to publicise the Voter ID scheme had begun;

·       Requesting that the Elections Outreach Pack be recirculated to all members;

·       Whether a British Sign Language video could be created as part of the communications campaign and shared with the Deaf Centre;

·       Issues with Royal Mail postage deliveries and the impact this could have on applications for postal and proxy votes and Voter Authority Certificates (VAC);

·       Whether there were any issues with disability access during the May 2023 elections and if there needed to be any changes to polling stations as a result of this;

·       How much money could be expected from government grants;

·       If any additional groups had been added to the Outreach Pack;

·       How public engagement would be impacted by the pre-election period;

·       How confident officers were that the government would provide sufficient funding to cover the full costs of the implementation of the Elections Act;

·       How social media would be used to engage young people and first-time voters;

·       How changes to overseas voting rights would work in practice;

·       What the requirements were for photo ID in polling stations and whether a National Insurance number was required;

·       Whether any work had been undertaken to understand how many people chose not to vote in the May 2023 elections because of a lack of ID;

·       Noting delays to postal vote applications through the government overseas voting portal, and querying how confident officers were that residents would be able to register for and receive a postal vote on time if a snap general election was called;

·       The current wait time for deciding on overseas voting applications;

·       Whether there had been any changes to the candidate nomination form as a result of the Elections Act 2022 and whether members could have sight of the nomination form; and

·       Noting new rules restricting the handling of postal votes and querying how polling station staff  ...  view the full minutes text for item 16.

Report of the Assistant Chief Executive.

This report describes the background to and process of creating a new Our Manchester Strategy for the city.

The committee considered a report of the Assistant Chief Executive which described the background to and process of creating a new Our Manchester Strategy.

Key points and themes within the report included:

·       Providing an introduction and background to the Our Manchester Strategy, which identified aims and objectives for the future of the city and how this would be achieved;

·       Progress made against the current Strategy;

·       Issues and areas for improvement, which would be included in the new Strategy;

·       The development process and timeline for the new Strategy;

·       How citywide engagement would be undertaken; and 

·       Next steps, including an update to all Scrutiny Committees in July 2024 on the outcome of the engagement process.

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

·       If the list of high-profile achievements in the report was definitive, and suggesting that being named a UNICEF Child-Friendly City be included;

·       If the Strategy could be shared with deaf organisations;

·       How the refreshed Strategy would address health inequalities;

·       What engagement would be undertaken with educational institutions and businesses;

·       How the Strategy would stay relevant for the full 10 years;

·       The importance of making residents aware of the Strategy;

·       If public engagement would be impacted by the pre-election period;

·       If any consideration had been given to colours and fonts in line with accessibility requirements;

·       Whether trade unions would be consulted on the refreshed Strategy;

·       Noting that the report stated there were 72,000 more workers in Manchester, and seeking clarification on the definition of a worker;

·       The sources for statistics included in the report, which differed from Census data;

·       Whether the achievements listed in the report were as a direct result of the strategies implemented by the Council or the effect of wider demographic change;

·       Requesting that members be provided with a list of the residents groups to be consulted, to ensure a comprehensive list;

·       The challenges facing the hospitality and nighttime economy sector and the need to involve these in the development of the refreshed Strategy;

·       Whether figures on homelessness included people temporarily living with family or friends; and

·       How the consultation would understand and address the importance of balancing the different needs of different communities and groups.

The Assistant Chief Executive stated that the Our Manchester Strategy was an overarching strategy for the city and was being refreshed for 2025-2035. He explained that the Strategy provided a framework for other strategies and policies and included 5 broad themes, which would be redeveloped for the new Strategy. The report highlighted how the city had changed since the implementation of the current Strategy, including successes and challenges which would be included in the refreshed version. He explained that there would be a significant focus on engagement by conversing directly with residents and making use of public activities already planned. A digital survey was ongoing, and engagement would be targeted and inclusive with a strong focus on cultural competency. There would be face-to-face engagement and paper copies of the survey for those without digital access  ...  view the full minutes text for item 17.

Report of the Deputy Chief Executive and City Treasurer.

This report sets out the latest forecast revenue budget position, and the next steps. It also provides a high-level overview of the updated budget position. Following the provisional finance settlement announced on 18 December 2023, the Council is forecasting an estimated budget shortfall of £38m in 2024/25, £79m in 2025/26, and £90m 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, the budget is balanced for 2024/25 and the remaining gap reduce to £29m in 2025/26 and £41m by 2026/27. This position assumes that savings of £21.4m are delivered next year.

The committee considered a report of the Deputy Chief Executive and City Treasurer which set out the latest forecast revenue budget position and the next steps and provided a high-level overview of the updated budget position. 

Key points and themes within the report included: 

·        After the application of approved and planned savings and the use of c.£17m smoothing reserves in each of the three years, the budget is balanced for 2024/25 and the remaining gap reduced to £29m in 2025/26 and £41m by 2026/27, assuming that savings of £21.4m are delivered next year; 

·        An overview of financial challenges facing the Council;  

·        Changes to the budget position following the Autumn Statement and Provisional Local Government Finance Settlement; 

·        The updated Medium-Term Financial Plan; 

·        An overview of the service area and priorities of the Corporate Core directorate, including the base budgets for each service area for 2023/24; 

·        The savings plan for 2024-27 and further options for saving;? 

·        Support for residents; 

·        ICT investment;  

·        Workforce implications, including a review of vacant posts, particularly those vacant for longer than 12 months, to determine which should be deleted with the least impact on service delivery; 

·        Government grants and the income they provide;? 

·        Future opportunities and risks; 

·        The indicative medium-term budgets by service area; and 

·        The indicative medium-term budgets by type of spend/income 

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

·        Commending staff for their work in developing a balanced budget for 2024/25;  

·        Emphasising the importance of the Household Support Fund (HSF) being continued, despite a lack of confirmation from government;  

·        Noting that the Council cannot add to its reserves;  

·        Noting the cumulative loss of budget cuts since 2010; 

·        How many children on free school meals would be impacted by the end of HSF; 

·        Recognising the lateness of government finance settlements and the uncertainty that this affords the Council;  

·        The importance of income generation;  

·        Requesting further information on the financial position of the airport; and 

·        How confident the Director of ICT was in being able to recruit to the service. 

The Executive Member for Finance and Resources introduced the item and stated that the Government’s approach to the Local Government Finance Settlement had been chaotic and only announced just before Christmas. He said the final announcement when announced had resulted in a cut of 84% in the Services Grant and this equated to a £6.1m loss for Manchester. He stated that this had resulted in an outcry from local authorities and MPs from all political parties. He stated that this situation needed to be understood in the context of fourteen years of austerity and Government funding cuts and unfunded pressures such as inflation and population growth. ? 

The Executive Member for Finance and Resources added that the Government then swiftly announced an additional £500m for Social Care, however Local Authorities were still facing a £4bn budget gap nationally, resulting in a number of Local Authorities serving a Section 114 notice and it was anticipated that more would follow. He commented that despite this,  ...  view the full minutes text for item 18.

Report of the Strategic Director (Growth & Development), Strategic Director (Neighbourhoods) and Deputy Chief Executive and City Treasurer.

This report presents members with details on the proposed Housing Revenue Account (HRA) budget for 2024/25 and an indication of the 2025/26 and 2026/27 budgets. It sets out the key assumptions being used in developing the next year’s budget and the outlook for the 30-year HRA business plan in light of the budget proposals.

The committee considered a report of the Strategic Director (Growth & Development), Strategic Director (Neighbourhoods) and Deputy Chief Executive and City Treasurer which presented details on the proposed Housing Revenue Account (HRA) budget for 2024/25, and an indication of the 2025/26 and 2026/27 budgets. 

Key points and themes within the report included: 

·        Providing an introduction and background to the HRA and the Council’s statutory duty; 

·        The current year’s budget position at period 9; 

·        The Budget Strategy for 2024/25-2026/27; 

·        Current budget assumptions; 

·        A proposed rent increase of 7.7% for 2024/25; 

·        Management of the housing stock and property numbers;  

·        Repairs and maintenance;  

·        The forecast overall reserves position at the start of 2024/25; 

·        The key assumptions used to develop next year’s budget; and  

·        The outlook for the 30-year HRA business plan in light of the budget proposals. 

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

·        Changes to legislation regarding fire assessments in buildings over 11 metres in height;  

·        The cap on the number of existing properties that the Council can purchase directly; 

·        Whether any consideration had been given to moving from communal to individual heating sources;  

·        If maintenance works were included as part of garage leases;  

·        Recognising that some money would have been wasted as a result of miscommunication between different trades providing repairs;  

·        Increases in the number of disrepair claims;  

·        Recognising how the HRA was constantly put under strain by central government introducing new regulations without providing additional funding; and  

·        Welcoming increased engagement with residents and suggesting that these groups be engaged with as part of the refreshed Our Manchester Strategy. 

The Executive Member for Housing and Development explained that the HRA was used to fund works such as retrofitting; developing new homes; implementing fire and building safety regulations; and estate management. He informed the committee that rents would increase from April 2024 in line with the government policy of Consumer Price Index (CPI) plus 1%, which was 7.7%. He stated that the Council set aside £1m in 2023/24 to support residents with rent increase and the cost-of-living crisis and that £300k would be set aside for 2024/25 to continue helping ease financial pressures for residents.  

In response to a question regarding recent changes to fire safety legislation, the Executive Member for Housing and Development acknowledged that the changes were required following the Grenfell tragedy. He stated that the Council managed a number of high-rise properties over 11 metres and that cladding and sprinklers had been assessed. He stated that further certainty and clarity was required and the Council would continue to monitor the regulations closely.  

The Executive Member for Housing and Development recognised the need to build the Council’s housing stock, which had reduced due to Right-to-Buy schemes and cited recent new-build developments in Collyhurst and Newton Heath. He explained that the HRA was used to purchase existing properties and buy-backs from Right-to-Buy properties where applicable.  

The Directorate Head of Finance explained that a cap on the number of existing properties that the Council could buy  ...  view the full minutes text for item 19.

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.

In response to a member’s query regarding an update on the Our Town Hall project, the Deputy Chief Executive and City Treasurer reaffirmed a commitment to providing an update to the committee in the new municipal year. The Chair also requested an update on Factory International in the new municipal year.

Decision:

That

1.     the report be noted, and

2.     update reports on Our Town Hall and Factory International be added to the committee’s 2024/25 work programme.