Agenda and minutes

Agenda and minutes

Executive - Wednesday, 16th February, 2022 2.00 pm

Venue: Council Chamber, Level 2, Town Hall Extension. View directions

Contact: Michael Williamson 

Media

Items
No. Item

12.

Minutes pdf icon PDF 180 KB

To approve as a correct record the minutes of the meeting held on 19 January 2022.

Minutes:

Decision

 

The Executive approved as a correct record the minutes of the meeting on 19 January 2022.

 

13.

COVID19 updates - Population Health and Economic Recovery pdf icon PDF 723 KB

The report of the Director of Public Health and Director of City Centre Growth and Infrastructure is enclosed.

Minutes:

The Executive considered a report of the Director of Public Health and the Director of City Centre Growth and Infrastructure, which provided an update on the COVID-19 situation within the city and the progress that was being made with the city’s economic recovery.

 

The Deputy Leader (Adult Care and Health) advised that infection rates within the city were now 357 per 100,000 of the population and in terms of infection rates.  The infection rate amongst the over 60’s was 241 per 100,000 , placing Manchester 6th across Greater Manchester.  These reductions were welcome although there was still a high number of people in hospital with Covid and there were still pressures on the health and care system which would continue to be a challenge over the year.

 

The vaccination programme continued to be rolled out, with the Evergreen offer and pop up clinics continuing to be provided at various venues across the city and schools/colleges.

 

In light of recent government discussions, the Council would be producing a local plan on “living safely with Covid”, which would set out the local approach for the next year.

 

In relation to the city’s economic recovery, the Director of City Centre Growth and Infrastructure reported that recent ONS data had identified that poorer households suffered greater impacts of inflation primarily from increased housing costs.  These impacts would  increase further on the back of energy price rises in April 2022.  It was also reported that increases in pay were not keeping pace with the increase in inflation and post tax income was forecasted to fall by 2% after taking account cost of living rises which represented the biggest fall in take home pay since 1990.

 

On a positive note, the recovery of the city’s economy continued to be strong with a forecasted growth of 3% up to 2025, driven by key growth sectors and there was strong demand for office space within the city, with over 1m square foot of office space let in 2021.

 

Decisions

 

The Executive:-

 

(1)      Note the update

(2)      Agree to stop receiving this monthly update and instead receive updates when required as determined by the Leader and Deputy Leader (Adult Care and Health)

14.

Our Manchester progress update report pdf icon PDF 328 KB

Report of the Chief Executive attached

Minutes:

The Executive considered a report of the Chief Executive which provided an update on key areas of progress against the Our Manchester Strategy – Forward to 2025 which reset Manchester’s priorities for the next five years to ensure the Council could still achieve the city’s ambition set out in the Our Manchester Strategy 2016 – 2025.

 

The Leader reported on the recent announcement by the Department for Digital, Culture, Media and Sport (DCMS) for the creation of a new hub on Marble Street, Manchester.  Manchester was also already home to a number of national sports governing bodies and DCMS’ new Manchester presence would further cement the city’s role as a sporting capital.

 

On behalf of the Executive Member for Environment, the Leader also reported that the Council’s climate change plan had been rated one of the strongest of any local authority by campaigning organisation Climate Emergency UK.  Their analysis put the Council’s Climate Change Action Plan third best out of 409 UK local authorities – the highest placed metropolitan council – with a score of 87% against an average score across all local authorities was 46%.  This reflected the scale and ambition that Manchester had in leading the way in taking action to address climate change within the city.

 

The Executive Member for Children’s Services reported that the Council had been accepted onto UNICEF’s Child Friendly Cities and Communities programme.  This was the first step on a journey which was set to culminate in two or three years time with the official award of Child Friendly status.

 

The goal was that Child Friendly status would  reflect the permanent legacy of the Council’s Our Year campaign which aimed to create an array of activities, opportunities and experiences for the city’s children and young people and help make Manchester one of the best places for young people to grow up in.

 

The Executive Member for Housing and Employment reported on the official launch of This City, a wholly Council-owned housing development company crated to accelerate the number of new homes available to Manchester people.  Schemes developed by This City would focus on high quality, low carbon homes and deliver a mix of accessible rent and market properties.  The first development site had been unveiled as Rodney Street in Ancoats. It would consist of 128 apartments and town houses – 30% of which would be for accessible rent. Wates Construction had been appointed as lead contractor.  It was also reported that all future This City developments would include a minimum of 20% of homes available at an accessible rent. 

 

He also reported that Dahlia House, a new ‘with care’ social housing development for older people had been completed in Burnage and was preparing to accept new tenants.  The £8m development, which had transformed a brownfield former industrial laundry site into 56 age-friendly apartments for social rent for people over 55, had been delivered as part of Southway Housing Trust’s partnership with the Council to provide much-needed social housing ‘with care’ in the  ...  view the full minutes text for item 14.

15.

Revenue Budget Monitoring Update pdf icon PDF 324 KB

Report of the Deputy Chief Executive and City Treasurer attached

Additional documents:

Minutes:

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which outlined  the projected outturn position for 2021/22, based on expenditure and income activity as at the end of December 2021 and future projections.

 

The Leader advised that the current budget monitoring forecast was estimating an underspend of £1.170m for 2021/22, based on activity to date and projected trends in income and expenditure, and includes the financial implications of COVID 19, government funding confirmed to date and other changes.

 

In relation to the delivery of the £40.717m of savings identified as part of the budget process the majority were on track for delivery. However, £2.482m (6%) of these were considered high risk and were unlikely to be delivered in this financial year and a further £5.287m (13%) were medium risk, in terms of the likelihood of delivery. Officers were working to ensure all savings are achieved or mitigated.

 

The report set out the following virements that had been applied in relation to COVID 19 and other virements between directorates as well as COVID 19 related grants received:-

 

COVID 19 related virements:-

 

·                £131k virement from Coroners;

·                £200k from Homelessness; and

·                £350k virement from HR/OD.

 

These adjustments brought the 2021/22 transfer to smoothing reserve to £10.590m.

 

Other virements between directorates included:-

 

·                £2.124m ICT budget centralisation to enable better analysis over the whole spend on IT Hardware, Phones and Printing

 

COVID 19 related Grants (where the Council was acting as principal and were added to Directorate budgets):-

 

·                £1.805m – Workforce recruitment and retention fund;

·                £666k – COVID Adult Social Care Omicron Support Fund;

·                £185k – Community Vaccine champions programme;

·                £0.729m – Protect and vaccinate;

·                £0.689m – Homeless prevention grant top up; and

·                £0.999m – Additional Restriction Grant Omicron (ARGO).

 

COVID 19 related Grants (where the Council was principal for the discretionary element of the funding and as agent for the remainder):-

 

·                Test and Trace Support Payments (October - December), for adults who were self-isolating. £254k added to Directorate budgets, and £169k treated as agency as the council was acting on behalf of government and has no discretion over the use of funds.

·                New Burdens 4 restart and ARG grant schemes, £85k added to the directorate budgets and £97k treated as agency to help meet the costs of delivering the Restart Grant Scheme and the ARG Top Ups from 14 October 2020 to the end of March 22.

 

COVID 19 related Grants (where the Council was agent for the fund):-

 

·                £6.090m – Business Support - Omicron Hospitality and Leisure grant;

·                £23.993m – COVID Additional Relief Fund (CARF); and

·                £91.515m – Section 31 extended retail relief.

 

Since the Period 6 Revenue Monitoring report there had been additional non

COVID-19 grant notifications which are now reflected in the revised budget as

Follows:-

 

·                £1.456m – Afghanistan Resettlement Education Grant;

·                £3.870m. – Holiday activities and food programme 2022; and

·                £200k – delivery of the  Serious Violence Action Plan

 

Approval was also sought on the following allocations from corporate budgets:-

 

·                Home to school transport - £120k  ...  view the full minutes text for item 15.

16.

Capital Programme Budget Monitoring 2021/22 pdf icon PDF 679 KB

Report of the Deputy Chief Executive and City Treasurer attached

Additional documents:

Minutes:

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which informed of the progress against the delivery of the 2021/22 capital programme to the end of December 2021, the latest forecast of capital expenditure and the major variances since the Capital Programme Monitoring report submitted in September 2021 and the proposed financing of capital expenditure for 2021/22 and affordability of the Capital Programme.

 

The Leader commented that the revised capital budget sat at £502.2m, with a further £652.8m budgeted to be spent across 2022-2025, taking total Council led capital investment in the city to £1,155.0m.

 

The latest forecasted expenditure for 2021/22 for Manchester City Council was £328.2m compared to the current approved budget of £502.2m. Spend as of 31 December 2021 was £173.3m.  It was reported that the programme was subject to continual review to establish whether the forecast remained achievable.

 

Whilst the intention was for the Council to progress the programme as stated, some projects and their sources of funding might require re-profiling into future years. The total approved programme was forecasted to be £1,139.1m over the next four years.

Decision

 

The Executive note the report.

17.

2022/23 Budget Overview and Section 25 Report pdf icon PDF 739 KB

Report of the Deputy Chief Executive and City Treasurer attached

Additional documents:

Minutes:

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which sets the strategic and financial context which supported the 2022/23 Budget.

 

A Medium-Term Financial Strategy report to Executive in February 2021 included a three-year budget forecast, indicating an annual shortfall in the region of £40m a year from 2022/23. This was based on assumptions of a flat government settlement and cost pressures including inflationary increases and demography.

 

As reported to Executive on 17 January 2022, the settlement was at the positive end of expectations. It provided additional unringfenced funding, increased Social Care Grant and additional one-off resources through the continuation of New Homes Bonus.  The additional funding announced, alongside the proposed savings and mitigations of £7.7m previously proposed would enable a balanced budget to be delivered in 2022/23.

 

The Medium-Term Financial Plan and Capital Strategy had been updated to reflect the 2022/23 budget position including the current and anticipated financial impacts of the COVID-19 pandemic.

 

The report went on to set out the strategic and statutory context for setting the budget, which includedg:-

 

·                The Our Manchester Strategy;

·                Progress to date on delivering the Our Manchester Strategy, building on the recent State of the City analysis;

·                The Corporate Plan;

·                A summary of the financial position and context;

·                The required statutory assessment of the robustness of the proposed budget and adequacy of proposed reserves;

·                Other fiduciary and statutory duties; and

·                Financial Governance.

 

Decision

 

The Executive note the Medium Term Financial Strategy 2022/23 and 024/25

18.

Medium Term Financial Plan and 2022/23 Revenue Budget pdf icon PDF 957 KB

Report of the Deputy Chief Executive and City Treasurer attached

Additional documents:

Minutes:

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which set out the budget proposals for 2022/23 based on the outcome of the Final Local Government Finance Settlement, which had been released on 7 February 2022.

 

The budget report considered at the 17 November 2021 meeting of Executive set out the funding proposals for unavoidable cost pressures to cover the rising costs of inflation and specific service pressures that had been identified, resulting in  £7.7m of efficiency measures required to deliver a balanced budget.  Of these measures £4,017m relates to new savings proposed, these were listed at Appendix 1 of the report.  A further £3.716m related to the following mitigations:

 

·                The Adult Social care budget had been adjusted by £2m for the overestimated impact of the pandemic on care home places. There remained £9.3m to meet the estimated costs of ongoing COVID-19 related demand.

·                Homelessness - It was not expected that the planned £1.7m per annum demand increase that was originally budgeted for 2022/23 would be required and this had now been removed from the budget assumptions, although the position would be kept under review.  To manage risk in this area a £1.5m homelessness contingency reserve remained as well as the £7m which was added to the initial 2021/22 budget to reflect the additional impact of COVID-19 on demand for homelessness services, in anticipation of the impact of the removal of the universal credit uplift and the tenant eviction ban ending.

 

Whilst the Provisional Finance Settlement was at the positive end of expectations and enabled a balanced budget to be proposed, the funding for local government was ‘front loaded’ with all the funding announced as part of the spending review being received in 2022/23 with no further increases in line with inflation or demographic pressures for the following two years.  This put further pressure on 2023/24 and 2024/25 financial years and significant budget cuts would need to be delivered over the Spending Review period to set a balanced budget:-

 

Impact of settlement announcements on budget gap

 

2022/23

2023/24

2024/25

 

£,000

£,000

£,000

Forecast Shortfall / (surplus) reported to Executive 17 November 21

(60)

57,139

78,204

Net Changes following settlement

(479)

(16,209)

(16,607)

Application of additional smoothing

 

(4,076)

(4,000)

Revised forecast Shortfall / (surplus) to Executive 17 January 22

(539)

36,854

57,597

 

The report to 17 January 2022 Executive set out that the funding announced for 2022/23 made available £12m to fund additional pressures, emerging risks and new priorities, and that, in line with the previously agreed approach, this was used across a three-year period  In addition, the draft budget position reflected a tighter estimated financial position and included £7.8m efficiencies and funding for unavoidable and specific budget pressures only. The following reflected these pressures, resident priorities and those in the updated Corporate Plan:-

 

Summary of proposed Investments

 

Total 22/23

Total 23/24

Total 24/25

 

£’000

£’000

£’000

Improving basic services and street cleaning

700

1,700

1,700

Investment in Youth Provision

500

500

500

Zero Carbon investment

800  ...  view the full minutes text for item 18.

19.

Children and Education Services Budget 2022/23 pdf icon PDF 664 KB

Report of the Strategic Director for Children and Education Services attached

Additional documents:

Minutes:

The report of the Strategic Director for Children’s and Education Services  explained how the budget proposals for the Directorate had been developed.

 

The 2021/22 budget process saw the Council develop savings and efficiency plans of over £48m over the three years to 2023/24.  Overall, savings of £12.359m for the Children and Education Services directorate were agreed, and had mostly been achieved.

 

Appended to the report were details of the initial revenue budget changes proposed by officers and the planned capital budget and pipeline priorities

as well as information on the 2022/23 Dedicated Schools Grant. 

 

The net impact of the changes had resulted in proposed budget increases of £10.319m in 2022/23, a further £3.666m in 2023/24 and additional £2.319m 2024/25.  It was also proposed to invest a further £500k into youth provision.  The planned use of this  funding would be developed with the purpose of strengthening youth provision in every ward and to ensure the ongoing operation of the Woodhouse Park active lifestyle Centre

 

It was noted that the report had also been considered at a recent meeting of the Children and Young People Scrutiny Committee where the committee had endorsed the budget proposals (Minute CYP/22/07)

 

Decision

 

The Executive approve the Directorate budget proposals as set out in the report.

20.

Health and Social Care - Adult Social Care and Population Health Budget 2022/23 pdf icon PDF 286 KB

Report of the Executive Director Adult Social Services and Director of Public Health attached

Additional documents:

Minutes:

The report of the Executive Director for Adult Social Services and Director of Public Health explained how the budget proposals for the Directorate had been developed.

 

The report examined the elements of the Council’s own budgets that were within and outside of the pooled budget arrangements for the MLCO. The key changes and pressures that had been addressed in 2022/23 were set out, as were the savings proposals where such had been possible:-

 

It was reported that the finance settlement included the following changes and increased the funding available for adults social care by £11.306m.

 

·                The Council’s spending power included the assumption that the 1% social care precept would be raised. A 1% increase would generate c£1.9m. This combined with, improvements to Council Tax collection rates and an increase in the tax base due to new house building growth,  meant that this increased the amount attributable to the ASC precept to a total increase of £3.259m; and

·                The additional £1.6bn of national funding included £8.047m for social care and the costs for the 1.25% national insurance increase

 

In addition, direct funding of £2.7m had been received and would be passed on directly to the Adults Social Care budget as follows:-

 

·                £0.9m for inflation on the Better Care fund; and

·                £1.8m via the ‘social care levy’ to fund the fair cost of care and associated preparatory work

 

Once the one off capacity funding of £2.690m from 2021/22 was removed, there would be a net increase in external funding of £11.438m. 

 

In addition there was a small increase in the overall core funding allocated to the Adults and Social Care budget to mainly cover the cost of the National Insurance increase.

 

It was reported that £10.656m of investment had also been identified to cover the inflation and pay award costs of £5.516m and £5.5m of system support towards the Better Outcomes Better Lives (BOBL) programme, which was partially offset by the removal of the one off capacity funding of £2.690m, which had been removed from the 2022/23 budget.  This brought the total additional investment into the aligned budget to £21.095m, before the BOBL and vacancy factor savings of £9.386m were removed, giving a net increase to the Adults and Social Care budgets of £11.709m.

 

It was noted that the budget report had also been considered at a recent meeting of the Health Scrutiny Committee and the committee had endorsed the proposals in the report (Minute HSC/22/09).

 

Decisions

 

The Executive:-

 

(1)      Approve the Directorate budget proposals as set out in the report.

(2)      Note the aspiration for the Council to ensure that all care contracts pay their staff the Real Living Wage and to use the opportunity of the market sustainability review to help deliver on this

21.

Neighbourhoods Directorate Budget 2022/23 pdf icon PDF 355 KB

Report of the Strategic Director (Neighbourhoods) attached

Additional documents:

Minutes:

The report of the Strategic Director (Neighbourhoods) explained how the budget proposals for the Directorate had been developed.

 

The 2021/22 budget process saw the Council develop savings and efficiency plans of over £48m over the three years to 2023/24.  Overall, savings of £6.683m had been identified for 2021/22 within the Neighbourhoods Directorate and most of these were on track to be achieved. A further £493k savings had been profiled for 2022/23.

 

Appended to the report were details of the initial revenue budget changes proposed by officers and the planned capital budget and pipeline priorities.

 

In addition, and as part of the 2021/22 budget setting process, ongoing demographic funding for Homelessness had been included for 2022/23 at £1.7m, increasing to £6.7m by 2024/25. In addition, a further £7m was added to the initial 2021/22 budget to reflect the additional impact of covid-19 on demand for homelessness services.  Whilst the £7m had been utilised, this had been in response to the pandemic and action taken in 2021/22. It was expected that the changes to the service and additional government grant funding around the rough sleeper initiative (yet to be allocated to Councils) would mean that the budget would be sufficient for 2022/23, and that demand reductions and therefore budget reductions would be possible in future years.

 

It was therefore not expected that the further planned £1.7m per annum increase that was originally budgeted for 2022/23 would be required and this had now been removed from the budget assumptions, although the position will be kept under review.  To manage risk in this area a £1.5m homelessness contingency reserve was proposed.

 

The Directorate Budget had also been considered at a recent meeting of the Communities and Equalities Scrutiny Committee (Minute CESC/22/09), and also at a meeting of the Environment and Climate Change Scrutiny Committee (Minute ECCSC/22/07).

 

The Executive noted that at the Environment and Climate Change Scrutiny Committee, the following amendment had been proposed:-

 

·                That a Capital Budget of £1m be established for the Executive Member for Environment, with this budget specifically used to support work and initiatives to tackle air pollution across the city.  This budget could be funded by levying a Section 106 charge of £1000 for all new build homes for sale in Manchester (excluding social housing and a reduced charge for affordable housing).

 

It was also noted that the Committee had recommended that funding be provided to permanently fund the Climate Change Officer posts.

 

Decisions

 

The Executive:-

 

(1)      Approve the Directorate budget proposals as set out in the report.

(2)      Recommend Council agree that funding be provided to permanently fund the Climate Change Officer posts.

(3)      Supports the intention of the proposed amendment and requests that Officers set out within the report for Resources and Governance Budget Scrutiny how part of the £192m directed towards tackling climate change is proposed to be spent on improving air quality.

 

22.

Growth and Development Directorate Budget 2022/23 pdf icon PDF 358 KB

Report of the Strategic Director (Growth and Development) attached

Additional documents:

Minutes:

The report of the Strategic Director (Growth and Development) explained how the budget proposals for the Directorate had been developed.

 

The 2021/22 budget process saw the Council develop savings and efficiency plans of over £48m over the three years to 2023/24.  Overall, savings of £1.408m related to the Growth and Development Directorate had been identified and of these £1.108m were on track to be achieved.  The only exception was the £393k savings from holding/deleting Planning and Building control vacancies.

 

It was explained that whilst the service redesign was expected to be completed in the first quarter of 2022, it would take time to implement the changes and recruit to all the posts. To allow for service delivery, and succession planning it was necessary to amend the structure and invest in some areas, therefore it was anticipated that ongoing savings of c£150k would be realised from reduced staffing costs across planning and building control.  This would require alternative savings of £243k to be identified and delivered in 2022/23.  To allow the Strategic Director time to review service options it was planned that the ongoing savings requirement of £243k would be managed through a combination of staff savings from vacant posts while posts were recruited to and income in 2022/23 whilst longer term ongoing options were developed.

 

Appended to the report were details of the initial revenue budget changes proposed by officers, the impact of which would result in a proposed net budget for 2022/23 of (£9.752m), and the planned capital budget and pipeline priorities.

 

It was noted that the report had also been considered at a recent meeting of the Economy Scrutiny Committee where the committee had endorsed the budget proposals (Minute ESC/22/06)

 

Decision

 

The Executive approve the budget proposals as detailed in the report.

23.

Corporate Core Budget 2022/23 pdf icon PDF 361 KB

Report of the Deputy Chief Executive and City Treasurer and City Solicitor attached

Additional documents:

Minutes:

The report of the Deputy Chief Executive and City Treasurer and City Solicitor explained how the budget proposals for the Directorate had been developed.

 

The 2021/22 budget process saw the Council develop savings and efficiency plans of over £48m over the three years to 2023/24.  This included budget cuts of £7.187m in the Corporate Core with £6.635m to be delivered in 2021/22 and the remaining £1.153m in 2022/23.

 

In addition to the £1.153m already approved savings, the report detailed further proposed changes to the 2022/23 budget, which resulted in a total saving for the Corporate Core of £1.636m.

 

In addition to the Corporate Core, the report provided details of budget proposals in regards to both Operational Property and Facilities Management Service that transferred in from the Growth and Development Directorate during 2021/22..  As part of the £48m savings over the three years 2021/22 - 2023/24, £5.935m related to Commercial and Operations activities, with £5.76m included as part of the 2021/22 budget.  Due to the majority of these being through traded services, there had been adverse implications from COVID, and the following savings have not been achieved in 2021/22: -

 

·                £4.1m income form car parks due to ongoing restrictions and reduced numbers of individuals working in the City Centre; and

·                £225k advertising income from the proposed screen in Piccadilly Garden.

 

As part of the 2021/22 budget, additional support was provided to allow for reduced income due to COVID. Operations and Commissioning received one off budget support of £3.136m to support the reduction in car parking income This was one off support in 2021/22 and has been removed in 2022/23.

 

It was also reported that to support the opening of The Factory the following agreements are being put in place between the operator, MIF, and the Council

 

·                a ten-year funding agreement which started in 2020/21 for £1.5m per annum incorporating the funding support that was previously provided to MIF;

·                a grant agreement, to be met from the Council’s existing MIF reserve (and reimbursed when fund raising was received) to assist the Factory Trust with its fundraising costs; and

·                the establishment of a sinking fund with each partner making an annual contribution of £252k per annum in relation to the lease, with the Council acting as corporate landlord

 

It was noted that the report had also been considered at a recent meeting of the Resources and Governance Scrutiny Committee where the committee had endorsed the budget proposals (Minute RGSC/22/08)

 

Decisions

 

The Executive:-

 

(1)      Approve the budget proposals as detailed in the report.

(2)      Note the development of the funding agreement between the Council and MIFas set out in Appendix 1.

(3)      Support the initial underwriting of the Factory Trust fundraising costs by way of a grant agreement, to be met from the Council’s existing MIF reserve and reimbursed when fund raising is received, and delegate to the Deputy Chief Executive and City Treasurer and City Solicitor to finalise the grant agreement, including any conditions for drawdown and repayment.

(4)      Approve lease arrangements to  ...  view the full minutes text for item 23.

24.

Housing Revenue Account 2022/23 to 2024/25 pdf icon PDF 534 KB

Report of the Strategic Director (Growth and Development) and Deputy Chief Executive and City Treasurer attached

Additional documents:

Minutes:

A joint report by the Strategic Director (Growth and Development), the Strategic Director (Neighbourhoods) and the Deputy Chief Executive and City Treasurer presented the proposed budget for the Housing Revenue Account (HRA) for 2022/23 and indicative budgets for 2023/24 and 2024/25.

 

The report set out the requirements placed on the Council with respect to the HRA budget:-

 

·                The Council had to formulate proposals or income and expenditure for the financial year which sought to ensure that the HRA would not show a deficit balance;

·                To keep a HRA in accordance with proper practice to ensure that the HRA is in balance taking one year with another; and

·                The HRA must, in general, balance on a year-to-year basis so that the costs of running the Housing Service must be met from HRA income.

 

The HRA Budget Position for 2021/22, which as of December 2021, was forecasting that net expenditure would be £11.621m lower than budget, inked to delays in capital projects.  Although the expenditure was lower than originally forecast, it was still more than the annual income and the forecast in-year deficit of £5.073m would be drawn down from the HRA reserve.  The main reasons for in year changes were detailed in the report.

 

Government guidance allowed Local Authorities to increase rents by a maximum of CPI plus 1% for the five-year period 2020/21 to 2024/25. The CPI rate used was based on the September figure in the preceding year, and as at September 2021 CPI was 3.1% and therefore this report sought approval to increase tenants’ rents for all properties by 4.1% from April 2021.

 

In light of the current economic climate and the potential impact the proposed 4.1% rent increase might have on the most vulnerable tenants it was proposed that £200k was earmarked to provide a hardship fund to provide targeted support to those most affected by the increase in living costs, the proposed rent increase and the ongoing impacts of COVID.  In addition to the hardship fund it was also noted that the proposed 4.1% rent increase would be covered in full for those residents in receipt of 100% housing benefit entitlement which is approximately 2,800 tenants and a further c.1,900 tenants receiving partial housing benefit support.

 

In order to ensure that the increase applied to garage rents remained in line with that applied to dwelling rents, it was proposed that 2022/23 garage rents be increased by 4.5%, which would see an increase in the rental of between 7p and 21p per week.

 

The report also explained the other key changes in the HRA budget for 2022/23, and the full budget was presented as set out below.-

 

 

 

 

2021/22 (Forecast)

2022/23

2023/24

2024/25

 

£000

£000

£000

£000

Income

 

 

 

 

 

 

 

 

 

Housing Rents

(61,646)

(63,713)

(65,807)

(67,120)

Heating Income

(533)

(681)

(771)

(861)

PFI Credit

(23,374)

(23,374)

(23,374)

(23,374)

Other Income

(932)

(975)

(958)

(952)

Funding from General HRA Reserve

(5,073)

(12,576)

(7,703)

(12,856)

Total Income

(91,558)

(101,319)

(98,612)

(105,163)

 

 

 

 

 

Expenditure

 

 

 

 

Operational Housing Management

14,327

12,845

11,817

11,938

Operational Housing -  ...  view the full minutes text for item 24.

25.

Capital Strategy and Budget 2022/23 to 2024/25 pdf icon PDF 741 KB

Report of the Chief Executive and Deputy Chief Executive and City Treasurer attached

Additional documents:

Minutes:

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which presented the capital budget proposals before their submission to the Council.

 

The Capital Strategy had been developed to ensure that the Council could take capital expenditure and investment decisions in line with Council priorities and properly take account of stewardship, value for money, prudence, risk, sustainability and affordability.

 

The capital programme 2021/22 to 2025/26 comprised the continuation of the existing programme. For continuing schemes, the position was based on that set out in the report on Capital Programme Monitoring 2020/21, also being considered at this meeting.

 

Details on the projects within the programme were set out in the report and the full list of the proposed projects was appended to the report.

 

If agreed, then the proposals contained in the report would create a capital programme of £329m in 2021/22, £533.1.8m in 2022/23, £135.1 in 2023/24 and £36.3m in 2024/25, summarised as follows:-

 

 

Forecast Budgets

 

2021/22

2022/23

2023/24

2024/25

Total

Total 22/23-24/25

 

£m

£m

£m

£m

£m

£m

Manchester City Council Programme

Highways

40.9

64.7

0.6

 

106.2

65.3

Neighbourhoods

35.7

62.7

15.5

0.9

114.8

79.1

The Factory and St John’s Public Realm

42.7

46.4

 

 

89.1

46.4

Growth

64.3

95.7

61.3

5.0

226.3

162.0

Town Hall Refurbishment

53.8

86.1

68.1

42.2

250.2

196.4

Housing – General Fund

17.1

27.4

37.0

2.7

84.2

67.1

Housing – HRA

24.7

39.4

31.9

14.6

110.6

85.9

Children’s Services (Schools)

31.1

37.1

1.0

 

69.2

38.1

ICT

6.4

6.8

1.0

 

14.2

7.8

Corporate Services

12.3

11.0

0.6

0.5

24.4

12.1

Total (exc. Contingent budgets)

329.0

477.3

217.0

65.9

1,089.2

760.2

 

 

 

 

 

 

 

Contingent Budgets

0.0

55.8

38.1

 

93.9

93.9

Total Programme

329.0

533.1

255.1

65.9

1,183.1

854.1

 

The proposed funding for the programme in 2022/23 was:-

 

Fund

Housing Programmes

Other Programmes

Total

HRA

Non-HRA

£m

£m

£m

£m

Borrowing

0.0

10.7

335.3

346.0

Capital Receipts

2.0

3.9

16.8

22.7

Contributions

0.0

0.4

30.8

31.2

Grant

0.0

10.6

72.9

83.5

Revenue Contribution to Capital Outlay

37.4

1.8

10.5

49.7

Grand Total

39.4

27.4

466.3

533.1

 

Based on the current forecasts for expenditure, prudential borrowing of up to £538.9m over the period would be needed to support the Council’s programme in line with the new schemes and previous planning and profile approval.  A number of these schemes would be on an invest to save basis and would generate revenue savings.

 

The proposed funding for the programme across the forecast period was as follows:-

 

 

2021/22 budget

2022/23 budget

2023/24 budget

2024/25 budget

Total

 

£m

£m

£m

£m

£m

Grant

86.0

83.5

63.5

0.0

233.0

External Contribution

25.3

31.2

0.2

0.0

56.7

Capital Receipts

16.0

22.7

13.1

2.7

54.5

Revenue Contribution to Capital Outlay

32.4

49.7

33.5

15.1

130.7

Borrowing

169.3

346.0

144.8

48.1

708.2

Total

329.0

533.1

255.1

65.9

1,183.1

 

The proposed capital programme described within the report was affordable within the existing revenue budget based on the estimated capital financing costs associated with delivering the programme.

 

There were risks associated with the delivery of the  ...  view the full minutes text for item 25.

26.

Treasury Management Strategy Statement 2022/23, including Borrowing Limits and Annual Investment Strategy pdf icon PDF 469 KB

Report of the Deputy Chief Executive and City Treasurer attached

Additional documents:

Minutes:

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which set out the proposed Treasury Management Strategy Statement and Borrowing Limits for 2022/23 and Prudential Indicators for 2022/23 to 2024/25.

 

The Treasury Management Strategy Statement set out the risk framework under which the Council’s treasury management function would operate by detailing the investment and debt instruments to be used during the year the Strategy detailed the risk appetite of the Authority and how those risks would be managed.

 

The suggested strategy for 2022/23 was based upon the treasury officers’ views on interest rates, supplemented with   The  forecasts provided by the Council’s treasury advisor, Link Asset Services. The strategy covered:-

 

·                Prudential and Treasury Indicators for 2022/23 to 2024/25;

·                Impact of 2012 HRA reform;

·                Current Portfolio Position;

·                Prospects for Interest Rates;

·                Borrowing Requirement;

·                Borrowing Strategy; and

·                Annual Investment Strategy.

 

The Executive noted the proposed Annual Investment and Borrowing Strategies set out in the report, and agreed to commend them to the Council.

 

Decisions

 

The Executive:-

 

(1)      Recommends the report to Council.

(2)      Delegates authority to the Deputy Chief Executive and City Treasurer, in consultation with the Member of the Executive with responsibility for Finance and HR, to approve changes to the borrowing figures as a result of changes to the Council’s Capital or Revenue budget and submit these changes to Council.

 

27.

Rogue Studios – lease of former Varna Street school pdf icon PDF 252 KB

Report of the Strategic Director(Growth and Development) attached

Additional documents:

Minutes:

The Executive considered a report of the Strategic Director (Growth and Development), which sought approval to the lease of the former Varna Street school in Higher Openshaw for a term of 125 years to Rogue Artists’ Studios CIC (“Rogue Studios”) at less than the best consideration that could reasonably be obtained.

 

The grant of a long lease of the former Varna Street Primary School to Rogue Studios would void ongoing maintenance and holding costs on the premises that the Council would initially have to fund if the building was vacated by Rogue Studios and in the event of no immediate disposal of the property otherwise.  In addition it offered an opportunity for major capital investment in the premises from outside sources.  Without a long term occupier, committed to the maintenance and restoration of the property, it was likely that the Council would become liable for major capital repairs on the listed property in the future in the event the property was not disposed of either to Rogue Studios or on the open market.

 

Decisions

 

The Executive:-

 

(1)      Approve the lease of the former Varna Street school in Higher Openshaw for a term of 125 years to Rogue Artists’ Studios CIC (“Rogue Studios”) at less than the best consideration that could reasonably be obtained.

 

(2)      Authorise the Head of Development and the Deputy Chief Executive and City Treasurer to finalise the terms of the transactions as set out in the report.

 

(3)      Authorise the City Solicitor to enter into and complete all documents and agreements necessary to give effect to the recommendations.

 

28.

Manchester's Corporate Peer Review pdf icon PDF 309 KB

Report of the Chief Executive attached

Minutes:

The Executive received the feedback report from the LGA Corporate Peer Challenge of the Council, which took place between 30 November and 3 December 2021.

 

During their time with the Council, the team of independent reviewers – consisting of experienced local Government figures from around the country – spoke to over 300 people, including councillors, staff and partners.

 

In their initial feedback, the independent reviewer recognised Manchester to be a ‘first-class council’, where the workforce were passionate about improving outcomes for Manchester people and rightly proud to work for Manchester City Council. 

 

In their final report, reviewers called Manchester a ‘city of firsts’ and highlighted the strength and depth of our partnerships, including health and social care. They also celebrated the improvements the Council had made in Children’s Services, the strength of our neighbourhood working and financial leadership.

 

The next steps would be the production of a clear action plan which would address the key recommendations made by the Peer Review.

 

Decision

 

The Executive note and welcome the findings from the Corporate Peer Challenge.