Manchester City Council

Agenda and minutes

Agenda and minutes

Executive
Wednesday, 12th December, 2018 10.00 am

Venue: Council Antechamber. View directions

Contact: Donald Connolly 

Webcast: View the webcast

Items
No. Item

109.

Manchester's Affordable Housing Strategy - Proposed new affordable housing policies for the Council pdf icon PDF 488 KB

The report of the Executive Member for Housing and Regeneration is enclosed.

 

Additional documents:

Minutes:

In November 2015 we had endorsed a draft Manchester Residential Growth Strategy and agreed that there should be public consultation on the draft (Minute Exe/15/123). In March 2016 we had endorsed a revised version of that Growth Strategy which set out the key priorities for delivering residential growth over the period 2016 – 2025 (Minute Exe/16/043).

 

A report from the Executive Member for Housing and Regeneration examined the recent progress and successes in securing the development of more affordable homes across the city. The report explained that “Affordable Housing” had emerged as an aggregate term for a range of housing tenures that would allow people on lower incomes to access homes at below market values. The main sorts of tenures being:

·         Shared Ownership - a part rent / part buy model where residents pay rent on 25-75% of the value of the property initially with the option to buy the remainder later;

·         Affordable Rent - although this can technically be set at or below 80% of market rent, affordable rent is typically set at or close to the full 80% level; and

·         Social Rent - this is typically set at or around 60% of market rent, although is not directly linked to market rent in the same way as affordable rent.

 

The report demonstrated how the cost of building a new home for affordable occupation could be funded, both for affordable and social rent. In both cases, with even with an assumption of the land being made available at nil cost, the borrowing against the assumed rental income would be insufficient to fund the construction of the house. Further funding would be needed and the report explained the range of possible sources of those funds.

 

The report then set out a number of possible policy ideas that could contribute to a step-change in the number and tenure of affordable homes being built across the City. Those were:

·         Policy Idea - The Council will strengthen the 500 home commitment to become 500 new social rented homes to be delivered by March 2022.

·         Policy Idea - The Council will develop and consult on a new Manchester affordability policy based around the individual income and circumstances of all Manchester residents.

·         Policy Idea - The Council will commit to delivering a programme of 3,000 new affordable Council homes over 10 years - 1,000 at social rent, 1,000 at affordable rent and 1,000 shared ownership.

·         Policy Idea - Deliver a first phase of 300 new affordable Council homes by March 2022, 100 for social rent, 100 for affordable rent and 100 shared ownership.

·         Policy Idea - The Council will take steps to maximise the social value from expanded new Council house building, including training and employment opportunities for Manchester residents.

·         Policy Idea - Where legal agreements permit, future phases of existing residential growth joint ventures and new joint ventures where Council sites represent a significant contribution will deliver 20% net new affordable housing.

·         Policy Idea - At least 1,000 of the affordable homes to be  ...  view the full minutes text for item 109.

110.

Adult Social Care Winter Funding 2018 pdf icon PDF 322 KB

The report of the City Treasurer is enclosed.

Additional documents:

Minutes:

In October 2018 the Department of Health and Social Care had announced £240m of additional funding for councils to spend on adult social care services to help councils alleviate winter pressures on the NHS. Councils were to use the extra money to help patients be more quickly discharged from hospital to their homes, so as to free up hospital beds across England. The funding was intended to enable further reductions in the number of patients that are medically ready to leave hospital but are delayed because they are waiting for adult social care services to be arranged for them at home. The allocation of that money to the City Council was to be £2.67m, but it was not to recur in future years.

 

A report submitted by the Director of Adult Services set out proposals for the use of that money. The report explained that the proposals had been aligned with other health and social care funding sources and had been developed jointly with partners across the health and social care system. This integrated approach therefore aligned the use of the additional grant with other health funding arising from an underspend on community health services. The inclusion of that underspend had been agreed with the Executive of the Manchester Local Care Organisation (MLCO) and the Manchester Foundation Trust (MFT). It is also intended that health funding for primary care resilience would be included in due course.

 

The proposals for the use of the grant were:

 

2018/19

£’m

2019/20

£’m

Total

£’m

Priority Discharge programme

0.675

 

0.675

Mental Health bed bureau

0.037

0.018

0.055

Mental Health housing support workers

0.024

0.012

0.036

Mental Health DTOC team

0.044

0.022

0.066

Homecare bridging capacity

0.144

 

0.144

Homecare transitional arrangements

0.169

0.085

0.254

Bed based transitional care

0.063

 

0.063

Care home support (North)

0.037

 

0.037

Care home support (South)

0.039

 

0.039

Reablement

0.205

0.052

0.257

Complex reablement

0.206

0.102

0.308

Crisis clean

0.023

0.012

0.035

Social/PAT Capacity

0.257

0.128

0.385

Advocacy

0.025

 

0.025

Neighbourhood apartments

0.051

0.059

0.110

Homelessness

0.107

0.070

0.177

Total Funding

2.106

0.560

2.666

 

The details of each of the main areas of proposed expenditure were described in the report. Appended to the report was a schedule of the proposed uses of the £0.685m of other health funding that was also being deployed to this area of work.

 

Set out within the details of a number of the expenditure proposals was the intention to increase the number of people deployed to the various areas of work. It was explained that whist there would be a requirement to use some agency staff where that proved necessary, it was preferred for these people to be taken on as permanent additions to the Council’s staffing; where that was financially feasible noting that this Adult Social Care Winter Funding was non-recurring. Council managers would have the appropriate delegated authorities to allow recruitment of permanent staff and agency workers to proceed as necessary.

 

Decisions

 

1.         To approve the proposals for the use of the funding as  ...  view the full minutes text for item 110.

111.

Proposed changes to Council charges levied on empty properties pdf icon PDF 278 KB

The report of the City Treasurer is enclosed.

Additional documents:

Minutes:

A report by the City Treasurer explained that in November 2018 the Government had introduced powers for councils to charge increased Council Tax Premiums for long term empty properties that have been unoccupied and unfurnished for over two years. These powers extended the 50% premium that had been introduced in April 2013 (Minute Exe/13/006).

 

Under the new powers the council had the discretion to apply increased a Council Tax premium on unoccupied and unfurnished properties as follows:

·         unoccupied for more than two years - 100% premium from 1 April 2019 (so the owner would pay 200% of the normal Council Tax);

·         unoccupied for more than five years - 200% from 1 April 2020 (so the owner would pay 300% of the normal Council Tax);

·         unoccupied for more than 10 years - 300% from 1 April 2021 (so the owner would pay 400% of the normal Council Tax).

 

Exemptions to these increased charges included homes unoccupied due to the occupant living in armed forces accommodation for job-related purposes and annexes being used as part of the main property.

 

The total potential increase in revenue from these changes was £575,500, subject to a number of factors and assumptions. However, it was to be hoped that these change would see some of the empty properties being brought back into use so that potential extra income was unlikely to be achieved.

 

The report also proposed other changes to long-standing Council Tax discounts that had been granted by the Council:

(a)        the removal of the existing 100% Council Tax discount that is awarded to unoccupied and unfurnished properties for up to a month, meaning that 100% of the Council Tax due would be charged for any unoccupied and unfurnished property not meeting the requirements of the statutory exemption class for unoccupied properties; and

(b)        the removal the existing 50% Council Tax discount awarded for up to one year when a property was undergoing major repairs or structural alterations.

 

It was noted that a recent meeting the Resources and Governance Scrutiny Committee had also considered this report and had endorsed its recommendations (Minute RGSC/18/71).

 

It was proposed and agreed that there be a period of public consultation on these changes, with the outcome of that consultation reported to a meeting in 2019.

 

Decisions

 

1.         To approve the proposals contained in the report and agree that there be a formal four week consultation, commencing in December 2018.

 

2.         To note that the outcome of the consultation will be reported in 2019.

 

 

112.

HS2 Working Draft Environmental Statement (WDES) pdf icon PDF 621 KB

The report of the Strategic Director (Development) is enclosed.

Additional documents:

Minutes:

The Strategic Director (Development) submitted a report on consultations being undertaken by HS2 Ltd on its Working Draft Environmental Statement (WDES) for the high speed rail links from London to the Midlands and the North of England. The report had a specific focus on the HS2 proposals within Manchester. The WDES covered Phase 2b of HS2 from Crewe to Manchester and West Midlands to Leeds. The report also provided an overview of the proposed responses to the key themes and issues raised in the consultation documents. The general nature of the proposed responses was endorsed and the production of the final response from the Council was delegated to the Director.

 

Decisions

 

1.         To note the content of the WDES.

 

2.         To delegate authority to the Strategic Director (Development) to finalise a consultation response to HS2 Ltd, in consultation with the Leader and the Executive Member for Environment and Skills.

 

 

113.

Great Northern Warehouse Strategic Regeneration Framework Update pdf icon PDF 351 KB

The report of the Strategic Director (Development) is now enclosed.

Additional documents:

Minutes:

The Great Northern site comprises a former railway goods warehouse and sidings, which were converted into a leisure development in the late 1990’s. The warehouse is Grade II* Listed. It is adjoined to a modern extension on the south of the site, which contains the cinema complex and car parking. To the west of the site is a long terrace of Grade II Listed shops with offices above. In July 2016 we had endorsed the principles set out in a draft Great Northern, Manchester Central and Castlefield Quay Strategic Regeneration Framework (SRF) and requested that the Chief Executive to undertake a public consultation exercise on the draft SRF (Minute Exe/16/093). In February 2017 we had considered the outcome of that consultation and endorsed the principles in the revised Great Northern, Manchester Central and Castlefield Quay Strategic Regeneration Framework (Minute Exe/17/044).

 

In March 2018 the landowner had secured Planning Permission and Listed Building Consent for the phased development of the Great Northern Complex. This consent included:

·         142 residential units

·         22,216 sq. ft. of food and beverage commercial floor space

·         3,444 sq. ft. of retail floor space

·         17,330 sq. ft. of gym floor space

·         A management suite

·         A 29 space resident car park

 

A report submitted by the Strategic Director (Development) explained that the landowner was now proposing a revision to the 2017 SRF which would result in the inclusion of additional office space in place of an element of the previously envisaged residential use. The change was being sought in response to demand for space in the city centre. The report proposed that there be a period of public consultation on this proposed revised SRF, with the outcome of that consultation reported to a future meeting. That was agreed.

 

Decisions

 

1.         To approve in principle the updated Strategic Regeneration Framework for the Great Northern Warehouse.

 

2.         To request that the Chief Executive undertake a public consultation exercise on the Regeneration Framework with local stakeholders with the outcome of the consultation reported to a meeting in 2019.

 

 

114.

Northern Quarter Building Condition Report pdf icon PDF 254 KB

The report of the Strategic Director (Development) is now enclosed.

Additional documents:

Minutes:

A report was submitted to inform the Executive of the findings of a survey into the condition of buildings within the Northern Quarter. The report set out details on the buildings that had been redeveloped or were to be redeveloped, and buildings considered to still be at some risk.

 

Decision

 

To note the report.

 

 

115.

Global Monitoring and Budget Update pdf icon PDF 350 KB

The report of the City Treasurer is now enclosed.

Additional documents:

Minutes:

A report was submitted to provide a summary of the position of the 2018/19 revenue budget at the end of October 2018. The report gave details of the projected variances to budgets, the position of the Housing Revenue Account, Council Tax and business rate collection, revised prudential borrowing indicators, and the state of the Council’s contingency funds. Projecting forward from the position at the end of October 2018 it was forecast that by the year-end in March 2019 the revenue budget would be overspent by £3.947m, which was better than the previous projection of an £6.145m overspend as reported in October (Minute Exe/18/94). The report described the continuing measures being used to reduce the size of the projected overspend.

 

The report also addressed use of the Council reserves and recommended that the Council approve the release of a total of £6.292m from reserves. The proposals were:

·         £40K from the City Centre Review – for the Compliance and Enforcement and Homelessness teams to improve data and performance indicators;

·         £2.6m from the Better Care Fund Reserve - as part of an overall funding strategy for 2019/20 to provide ongoing contributions for social care and to enable the CCG to access its historic surplus in 2019/20;

·         £1.4m from the Adult Social Care Reserve – also as part of an overall funding strategy for 2019/20 to provide ongoing contributions for social care and to enable the CCG to access its historic surplus in 2019/20;

·         £1.595m from the Adult Social Care Reserve - for reform staffing, mental health related strength based assessment and supporting the shared lives scheme;

·         £175k from the Parking Reserve - to fund hostile vehicle mitigation measures;

·         £482k from the Asylum Seekers Reserve – to fund the Local Authority Asylum Support Officer (LAASLO) project, subject to agreement from the contributing authorities.

 

The following budget virements were proposed and agreed for the revised budget for 2018/19:

·         £2.957m - Transfer funding for Our Manchester voluntary and community sector budgets from Adults and Neighbourhoods to Policy, Partnership, Research and Culture;

·         £0.619m - Facilities Management Centralisation - Security, Pest Control, Cleaning and Planned Preventative Maintenance budgets have been centralised;

·         £0.294m - Transfer of the funding for the resource team staff from the Shared Service area to HR/OD.

 

When setting the 2018/19 budget the Council has agreed to hold some funds that were to be allocated throughout the year. The report proposed the use of some of these budgets to be allocated. These were agreed:

·         Our Children’s Budgets (Looked After Children) – £1m for external placements made up of:

o    External Fostering – having to make 44 external fostering placements at above the North West Framework price;

o    External Fostering - the cost the new North West framework being higher than anticipated, with the agencies involved increasing their prices; and

o    External Residential –to cover the 6% inflationary increase together with the increase in the number of residential placements.

·         Waste management inflation allocation £137k - waste management contract to cover pay, fuel  ...  view the full minutes text for item 115.

116.

Capital Programme Update pdf icon PDF 285 KB

The report of the City Treasurer is enclosed.

Additional documents:

Minutes:

A report concerning requests to increase the capital programme was submitted. We agreed to recommend three changes to the Council which would increase the capital budget by £1.085m, financed by the use of reserves and by borrowing.

 

The report also addressed previous decisions on Settled Accommodation for Homeless Families. In March 2018 it was agreed to provide £5m of equity funding to a group of Registered Providers (RPs) to support the purchase of around 60 homes for homeless families (Minute Exe/18/045). Initially based on the Council securing a first charge on the homes, in July 2018 it was agreed that the Council would hold a second charge on the properties in the circumstance where the RP applied a charge on the property to secure funding (Minute Exe/18/079(Decision 3)).

 

It was reported that since July further negotiations had taken place to finalise the terms of the agreement to be entered into between the Council and the RPs. In those negotiations it had become evident that the requirement for a second charge would restricting the available equity in a property and so restrict the RPs’ ability to raise finance. That would in turn result in fewer properties being acquired for the project. It was therefore proposed that he Council agree to forego the requirement of a second legal charge.

 

Instead it was now proposed that the parties enter into an agreement obliging them to attend regular meetings. If it became clear that an RP may be in financial difficulty the relevant RP would be required to offer its property or properties to the other RP’s in the consortium. If that offer was declined, the RP would next offer the properties to the Council.  In either case the value for the transfer would be 65% of the market value. If the Council also declined the offer, the RP would then sell the properties on the open market and the Council would recover its 35% share from the proceeds of that sale.

 

Where a property had been charged to an RP Lender, any transfer could only take place where the Lender agreed to release its charge on the property and the Lender may require the full 100% of the sale proceeds in order to release its charge. It was considered to be unlikely that Lenders would accept less than 100%, or agree to release the charge where the RP was in financial difficulty. Where that was the case it would put the Council’s 35% investment in respect of the relevant RP at risk. That risk was, however, considered to be low.

 

These proposals were agreed and the decisions made at previous meetings revised accordingly.

 

Decisions

 

1.         To recommend that the Council approve the following changes to Manchester City Council’s capital programme:

 

(a) Highways – Residents Parking Schemes. A capital budget increase of £0.553m is requested, funded by £0.396m of applicable Section 106 funding and £0.157m from the Parking Reserve.

 

(b) Highways – Automatic Bollards. A capital budget increase of £0.468m is requested, funded  ...  view the full minutes text for item 116.

117.

The Manchester College - City Centre Campus pdf icon PDF 387 KB

The report of the Strategic Director (Development) and the City Treasurer is enclosed.

Additional documents:

Minutes:

(Councillor S Murphy declared a disclosable pecuniary interest in this item, and withdrew from the meeting before it was considered.)

 

In November 2017 we had considered the Estates Strategy of Manchester College, noting the college’s plans for the development of a new city centre Manchester College Campus Centre of Excellence to focus on creative and digital, business, financial and professional services (Minute Exe/17/140). In July 2018 we noted the more detailed plans and supported in principle the College’s plans to acquire a city centre site in order to deliver a new Manchester College Centre of Excellence (Minutes Exe/18/082 and 18/085).

 

A report now submitted by the Strategic Director (Development) explained that the LTE Group, the parent organisation of Manchester College, had made progress to acquire a city centre site located within the Northern Gateway Great Ducie Street Regeneration area (part of the former Boddingtons Brewery site). The report detailed the College’s intentions for the phasing of the development of the site.

 

The report also outlined the LTE Group’s funding for the development. In July 2018 it was noted that the College hoped to be able to utilise a loan from the Council (Exe/18/085). Following ongoing discussions the amount of support requested has been confirmed as a loan funding package of £27.6m. Further details on the likely terms of the support were set out in another report considered at the meeting (Minute Exe/18/119) below.

 

It was also noted that a recent meeting the Economy Scrutiny Committee had also considered this report and had endorsed its recommendations (Minute ESC/18/59).

 

Decisions

 

1.         To support LTE Group’s plans to deliver a new Manchester College Campus on Great Ducie Street (on part of the former Boddington’s Brewery site) which would be a centre for excellence for skills in Creative and Digital (Phase 1) and Business, Financial and Professional Services (Phase 2).

 

2.         To note that the LTE Group had committed to work with the Council to ensure that new development proposals complied with and support approved planning policies for the City Centre, and to work with the Council to bring forward a new development framework for the site.

 

3.         To note that the arrangements include a proposed loan of £27.6m to LTE Group the details of which were set out in a separate report and subject to the agreement of the Council.

 

 

118.

Exclusion of the Public

The officers consider that the following item or items 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 Executive is recommended to agree the necessary resolutions excluding the public from the meeting during consideration of these items. At the time this agenda is published no representations have been that this part of the meeting should be open to the public.

Additional documents:

Minutes:

A recommendation was made that the public be excluded during consideration of the next items of business.

 

Decision

 

To exclude the public during consideration of the following items which involved consideration of exempt information relating to the financial or business affairs of particular persons and public interest in maintaining the exemption outweighs the public interest in disclosing the information.

 

 

119.

The Manchester College - City Centre Campus (Part B)

The report of the Strategic Director (Development) and the City Treasurer is enclosed.

 

Minutes:

(Councillor S Murphy had declared a disclosable pecuniary interest in this item and had withdrawn from the meeting before this item was considered.)

 

A report by the Strategic Director (Development) and the City Treasurer set out the details of the financial and commercial considerations for the Council’s support for the LTE Group’s proposals to develop a City Centre Campus. The College was seeking a loan of £27.6m from the Council and the report described in detail the security that the Council would hold for that loan, should it be agreed. It was also noted that as well as a loan from the Council the College required further funding in order to deliver the development. It was likely that would come from an institutional lender or lenders. If further investors were identified the Council would need to enter into negotiations with those Lenders in respect of terms of their lending and security required.

 

The report explained that the College had committed to working with the City Council to bring forward a revised Development Framework for the remainder of the Boddingtons Brewery site. That revision would take into account not only the proposals that were currently the subject of a planning application, but also the draft Strategic Regeneration Framework (SRF) that was currently under consultation for the Great Ducie Street area which was immediately adjacent to this site. That would ensure that the campus development proposals were both consistent and complementary to those set out in both Frameworks.

 

It was noted that a recent meeting the Economy Scrutiny Committee had also considered this report. The Committee had endorsed its recommendations and requested that the Executive take into consideration the Committee’s concerns about the security arrangements for the Council’s loan and clarification on the other sources of funding that had been sought by the LTE Group (Minute ESC/18/61). The concerns of the Committee were accepted and it was explained that the securities for the Council’s loans had been improved.

 

Decisions

 

1.         To note the proposed contractual and commercial arrangements between the City Council and the College details of which were set out in the report.

 

2.         To note that the Manchester College would promote a new Development Framework for the site which they intend to acquiring, taking into account the consented scheme on part of the site and the final version of the Great Ducie Street Strategic Regeneration Framework which was currently under consultation.

 

3.         To note that LTE Group had put in the submission for Greater Manchester Combined Authority (GMCA) skills capital funding of up to £25m, which had been approved in principle dependant on a final due diligence exercise.

 

4.         To approve the proposed loan of £27.6m to LTE Group, the details of which were set out in this report, subject to the release of the funds by the Council.

 

5.         To authorise the City Solicitor, City Treasurer and Strategic Director (Development), in consultation with the Executive Member for Finance amd Human Resources, to conclude the detailed contractual and commercial negotiations  ...  view the full minutes text for item 119.

120.

Our Town Hall Project - Management Contractor Appointment

The report of the City Treasurer is for the Executive to note.

Minutes:

A report was submitted by the City Treasurer to provide an update on the procurement of a Management Contractor for the refurbishment of the Town Hall. The report explained the decision that the City Treasurer was minded to make in respect of which of the companies that had tendered for the work was to be awarded the Management Contract. The report set out the reasons for the City Treasurer being so minded.

 

Decision

 

To note the report.