Manchester City Council

Agenda and minutes

Agenda and minutes

Executive - Wednesday, 12th February, 2020 10.00 am

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

Contact: Donald Connolly 

Media

Items
No. Item

9.

Minutes pdf icon PDF 240 KB

To approve as a correct record the minutes of the meeting held on 15 January 2020.

Additional documents:

Minutes:

Decision

 

To confirm the minutes of the meeting on as a correct record.

 

 

10.

Revenue Budget Monitoring 2020/21 pdf icon PDF 444 KB

The report of the Deputy Chief Executive and City Treasurer is now attached.

Additional documents:

Minutes:

A report was submitted to provide a summary of the position of the 2019/20 revenue budget as at the end of December 2019. The report gave details of the projected variances to budgets and the state of the Council’s contingency funds. Projecting forward from the position at the end of December 2019 it was forecast that by the year-end in March 2020 the revenue budget would be overspent by £2.790m, an improved position on the £4.169m overspend that had been predicted at the meeting in December 2019 (Minute Exe/19/106). The report explained that the overspend was still mainly arising from service pressures on the adult social care budgets and Children’s Services.

 

It was explained at the meeting that the budget position being reported in this report had been the basis for the formulation of the 2020/21 budget proposal set out in the other agenda items being considered at the meeting.

 

Budgets to be Allocated

 

When setting the 2019/20 budget the Council has agreed to hold some funds for contingencies, and other money that was to be allocated throughout the year. The report proposed the use of some of these budgets to be allocated. These were agreed:

·         £499k to Children's Services for supported accommodation for young people leaving care, allowing for price increases for up to 99 placements.

·         £805k for waste management to enable the Council to meet the contractual inflationary cost increase of the new Waste Collection and Street Cleaning Contract delivered by 'Biffa Municipal Limited'.

 

Use of Reserves in 2019/20

 

The report also addressed the use of the Council’s reserves. A new draw-down from reserves had been requested. This was approved.

·         All £443K of the New Smithfield Market reserve to help maintain a safe environment due to the deterioration of the buildings, with a phased approach to make the site safe.

 

Use of an Additional Grant

 

The report also explained that notification had been received in relation to a specific external grant, the use of which had not confirmed as part of the 2019/20 budget setting process. Approval was given to the use of these funds.

·         £48K from a successful Innovate UK bid to support the Urbix Demand Analysis tool, for a fixed-term senior research role to work with external partner (Urbix) on this project.

 

Decisions

 

1.         To note the report.

 

2.         To approve the use of budgets to be allocated as set out above.

 

3.         To approve the use of reserves as set out above.

 

4.         To approve the use of an additional grant as set out above.

 

 

11.

Capital Programme Monitoring 2019/20 pdf icon PDF 1 MB

The report of the Deputy Chief Executive and City Treasurer is now attached.

Additional documents:

Minutes:

The Deputy Chief Executive and City Treasurer's report informed us of the revised capital budget 2019/20 to 2024/25 taking account of agreed and proposed additions to the programme, profiling changes, and the latest estimates of forecast spend and resources for the 2019/20 capital programme. The report explained the major variations to forecast spend, and any impact that variations had on the five-year Capital Programme.

 

The forecast of expenditure for 2019/20 for the Manchester City Council capital programme was £248.9m, compared to a proposed revised budget of £248.0m. Spend up to the end of December 2019 was £130.1m. The forecast for the capital programme on behalf of Greater Manchester was £70.0m. The Greater Manchester spend to the end of December had been £49.5m.

 

Appended to the report was a schedule of projects within the overall capital programme where the allocations needed to be revised and funding allocations vired between projects. The appendix showed the virement needed for each scheme and each project. We agreed to recommend to the Council the proposed virements greater than £500,000, as set out in Appendix A to these minutes. The virements of less than £500,000 we approved.

 

Decisions

 

1.         To recommend that the Council approve the virements over £0.5m between capital schemes to maximise use of funding resources available to the City Council set out in Appendix A of these minutes.

 

2.         To approve virements under £0.5m within the capital programme as outlined in Appendix A of these minutes.

 

3.         To note that approvals of movements and transfers to the Manchester City Council capital programme, will reflect a revised total budget of £248.0m and a latest full year forecast of £248.9m. Expenditure to the end of December 2019 is £130.1m.

 

4.         To note that approvals of movements and transfers to Capital Programme on behalf of Greater Manchester, will reflect a revised total budget of £70.0m and a latest full year forecast of £70.0m. Expenditure to the end of December 2019 is £49.5m.

 

5          To note the budgets approved in February 2020 by Deputy Chief Executive and City Treasurer under delegated powers, as set out in Appendix B of these minutes.

 

 

12.

Budget Overview - The Council's Financial Strategy pdf icon PDF 538 KB

The report of the Deputy Chief Executive and City Treasurer is now attached.

Additional documents:

Minutes:

A 2020/21 budget overview had been considered in January (Minute Exe/20/7). A report was presented to this meeting by the Chief Executive and the Deputy Chief Executive and City Treasurer to show how the various components of the proposed 2020/21 budget (including the Medium Term Financial Plan, the Capital Strategy, the Housing Revenue Account) would jointly continue to reflect the priorities identified in the three-year budget strategy 2017-20, and in the Council’s Corporate Plan that had been updated to include action required to address the climate emergency declared by the Council. This report explained the progress with implementing the strategy. It also provided a summary of the financial position and the required assessment of the robustness of the proposed budget.

 

The summary of the proposed budget was:

 

 

 

2019/20

Original

£000

2019/20

Revised

£000

2020/21

Proposed £000

Resources Available

 

 

 

Business Rates Related Funding

314,653

314,653

339,547

Council Tax

166,507

166,507

174,465

Other non-ring fenced Grants

54,426

65,752

66,717

Dividends and Use of Airport Reserve

62,390

62,390

62,890

Use of other Reserves

12,859

12,859

21,481

Total Resources Available

610,835

622,161

665,100

Resources Required

 

 

 

Corporate Costs

 

 

 

Levies / Statutory Charge

69,990

69,990

71,327

Contingency

1,600

850

860

Capital Financing

44,507

44,507

44,507

Transfer to Reserves

7,067

18,393

18,338

Subtotal Corporate Costs

123,164

133,740

135,032

Directorate Costs

 

 

 

Additional Allowances and other pension costs

10,030

10,030

9,580

Insurance Costs

2,004

2,004

2,004

Inflationary Pressures and budgets to be allocated

9,945

1,764

10,271

Directorate Budgets

465,692

474,623

508,213

Subtotal Directorate Costs

487,671

488,421

530,068

Total Resources Required

610,835

622,161

665,100

Shortfall / (surplus)

0

0

0

 

The proposals continued to show the ways that the Council was seeking to mitigate the funding gaps that had arisen over the previous years. The Council was continuing to invest more money into adult social care and children’s services, both areas that continued to show the most significant budget pressures as demonstrated by the report on the 2019/20 budget (Minute Exe/20/10 above).

 

The report examined the future funding uncertainties facing the Council. The City Treasurer had examined the major assumptions used within the budget calculations and had carried out sensitivity analysis to ascertain the levels of potential risk in the assumptions being used. The key risks identified to the delivery of a balanced budget, and their mitigation, were identified in the report as being:

 

Risk

Mitigation

Non Delivery of Savings

A detailed review of social care related savings which were not delivered in 2019/20 and the impact for 2020/21 has been carried out with revised proposals contained within the budget. As outlined above robust monitoring arrangements are in place to enable early corrective action to be taken. Such action in 2019/20 has successfully reduced the overspend position.

Increasing demand for social care, impact welfare reforms and rising homelessness is higher than budget assumptions

Additional government funding of c£13m in 2020/21 for Social Care and Council resources have been used to provide more funding in these areas based on a reassessment of demand. Funding received in 2019/20 has been smoothed over  ...  view the full minutes text for item 12.

13.

Medium Term Financial Plan pdf icon PDF 731 KB

The report of the Chief Executive and the Deputy Chief Executive and City Treasurer is now attached.

Additional documents:

Minutes:

The report of the Chief Executive and City Treasurer set out the revenue budget proposals for 2020/210 based on the outcome of the Provisional Local Government Finance Settlement and the issues which needed to be taken into account prior to the Council finalising the budget and setting the Council Tax for 2020/21.

 

In March 2019, as part of setting the 2019/20 budget, it had been anticipated that there would be a government spending review in 2019/20 and that the local government finance would then return to a three-year budget cycle starting in 2020/21. That had not happened, and the announcements for 2020/21 funding levels had again been for one year only, therefore the proposed budget was for 2020/21 only. The report outlined the key changes in funding that had been part of the government’s funding announcements. New budget pressures had arisen, revised savings and cost recovery proposals had been developed, and further sources of money had been identified or grants provided. The total saving and efficiencies target being proposed for 2020/21 was £7.5m. The 2020/21 budget now being put forward had a total funding requirement of £665.1m, compared to the original 2019/20 budget requirement of £610.835m. The comparison of the two proposals being:

 

Table 1 - Comparison of Budgets

2019/20

Original

£0000

2019/20

Revised

£000

2020/21

Proposed

£000

Resources Available:

 

 

Business Rates Related Funding

314,653

314,653

339,547

Council Tax

166,507

166,507

174,465

Other non ring fenced Grants

54,426

65,752

66,717

Dividends and Use of Airport Reserve

62,390

62,390

62,890

Use of Other Reserves

12,859

12,859

21,481

Total Resources Available

610,835

622,161

665,100

Resources Required:

 

 

 

Corporate Costs:

 

 

 

Levies and Statutory Charge

69,990

69,990

71,327

Contingency

1,600

850

860

Capital Financing

44,507

44,507

44,507

Transfer to Reserves

7,067

18,393

18,338

Sub-Total Corporate Costs

123,164

133,740

135,032

Directorate Costs:

 

 

 

Additional Allowances and other pension costs

10,030

10,030

9,580

Insurance Costs

2,004

2,004

2,004

Inflationary Pressures and budgets to be allocated

9,945

1,764

10,271

Directorate Budgets

465,692

474,623

508,213

Sub - Total Directorate Costs

487,671

488,421

530,068

Total Resources Required

610,835

622,161

665,100

Shortfall / (surplus)

0

0

0

 

This budget was based on the assumption that the Council’s element of Council Tax would increase by 1.99% along with a further 2% specifically for adult social care. When the Greater Manchester Council Tax precept increases were added to the Council’s own the total increase for Manchester’s Council Tax Payers was anticipated as being 4.78%.

 

The assumption for the council tax collection rate was 96.5%. This was based on historic trends in collection as council tax due in the current year will continue to be collected over a number of years.

 

The report explained that the Government issued a written ministerial statement detailing new business rates reliefs for 2020/21. That had increased retail relief from 33% to 50% and included an extension of the relief to music venues and cinemas, as well as the continuation of pub and local newspaper relief. The additional relief was forecast to be £3.02m and would be reimbursed by Section  ...  view the full minutes text for item 13.

14.

Capital Strategy and Budget 2019/20 to 2023/24 pdf icon PDF 1 MB

The report of the Chief Executive and the Deputy Chief Executive and City Treasurer is attached.

Additional documents:

Minutes:

Consideration was given to the report submitted by the City Treasurer. The report presented the capital budget proposals before their submission to the Council.

 

The capital programme 2020/21 to 2023/24 comprised the continuation of the existing programme. For continuing schemes, the position was based on that set out in the Capital Programme Monitoring 2019/20 also being considered at this meeting (Minute Exe/20/11 above).

 

Also included were those future projects which were considered likely to be brought forward, subject to the submission of a successful business case. For any project seeking capital expenditure approval a business case must be drafted, covering:

·         how the project links to the City Council’s strategic priorities, social value, and any statutory requirements;

·         what economic value the project will provide to the City, including social value;

·         funding model, with evidence of cost and capital and revenue implications;

·         timescale for delivery and identification of risks to the project, including legal issues; and

·         what the project will achieve, and the benefits that will be realised.

 

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 £378.4m in 2020/21, £288.8m in 2021/22, and £208.3m in 2022/23. The proposed funding for the programme was:

 

 

2019/20 budget

£m

2020/21 budget

£m

2021/22 budget

£m

2022/23 budget

£m

2023/24 budget

£m

Total

£m

Grant

46.5

71.4

41.6

43.4

0.0

202.9

External Contribution

24.9

25.2

4.6

0.0

0.0

54.7

Capital Receipts

18.7

28.8

13.8

3.2

8.0

72.5

Revenue Contribution

26.0

52.6

31.0

28.4

0.0

138.0

Borrowing

131.9

200.4

197.8

133.3

47.3

710.7

Total

248.0

378.4

288.8

208.3

55.3

1,178.8

 

The revenue budget proposals set out in the report on the Medium Term Financial Plan 2020/21 included provision to finance this level of borrowing.

 

The report explained that a number of schemes which had been developed and were ready for inclusion in the capital programme. The funding and planned expenditure of each was set out in the report’s appendix. Such schemes that were within the powers of the Executive to approve being

 

Department

Project

Source of funding

Budget £000

Highway Services

Maintenance Challenge Fund

Government Grant

1,075

Highway Services

Deansgate Streets for All Development Costs

Borrowing

275

Highway Services

Highways Investment Programme

Borrowing

-275

Highway Services

Auto Bollard Replacement and Improvement

Parking Reserve

608

Children’s

Basic Need Unallocated

Government Grant

4,408

Corporate Services

VCSE Small Premises Works

Capital Fund

1,000

 

Decisions

 

1.         To commend the report to the Council

 

2.         To approve the projects for Executive approval as set out above.

 

3.         To note the capital strategy.

 

4.         To delegate authority to the Deputy Chief Executive and City Treasurer in consultation with the Executive Member for Finance and Human Resources to make alterations to the schedules for the capital programme 2019/20 to 2023/24 prior to their submission to Council for approval, subject to no changes being made to the overall estimated total cost of  ...  view the full minutes text for item 14.

15.

Council Business Plan 2020/21 pdf icon PDF 591 KB

The report of the Chief Executive is attached.

Additional documents:

Minutes:

A report from the Chief Executive presented the Council Business Plan for 2020/21. A copy of the plan was appended to the report. This plan was to replace the individual directorate business plans that had been produced in previous years. This plan was structured around the eight priority themes and had been produced following the development of 41 service plans which describe in more detail the achievements, priorities and activities of the 41 services which collectively made up the Council. The eight priority themes were:

·         Zero carbon Manchester

·         Young People

·         Healthy, cared-for people

·         Housing

·         Neighbourhoods

·         Connections

·         Growth that benefits everyone

·         Well-managed Council

 

And full details for each of these was set out in the report’s appendix.

 

Decision

 

To approve the Council Business Plan for 2020/21.

 

 

16.

Directorate Budgets 2020/21 pdf icon PDF 349 KB

Reports from the Strategic Directors are attached for:

·         Children and Education Services Budget 2020/21

·         Adult Social Care and Population Health Budget 2020/21

·         Manchester Health and Care Commissioning Budget 2020/21

·         Homelessness Budget 2020/21

·         Neighbourhoods Directorate Budget 2020/21

·         Growth and Development Budget 2020/21

·         Corporate Core Budget 2020/21

 

Additional documents:

Minutes:

A suite of reports prepared by the Strategic Directors of the Council presented the details budgets, investment and savings plans for 2020/21 for the seven areas of the Council’s services, being:

·         Children and Education Services Budget 2020/21

·         Adult Social Care and Population Health Budget 2020/21

·         Manchester Health and Care Commissioning Budget 2020/21

·         Homelessness Budget 2020/21

·         Neighbourhoods Directorate Budget 2020/21

·         Growth and Development Budget 2020/21

·         Corporate Core Budget 2020/21

 

Each of the reports set out the breakdown of the directorate’s cash limited budget into the specific service areas within the directorate. It also described the efficiencies planned for 2020/21 and how the directorate would manage its budget pressures.

 

Each of these directorate-level financial plans had been scrutinised by the Council’s scrutiny committees at their most recent meetings and the views of the committees were considered and noted (Minutes RGSC/20/07, HSC/20/07, CYP/20/11, NESC/20/11, ESC/20/09 and CESC/20/10).

 

Decision

 

To note the reports.

 

 

17.

Dedicated Schools Grant - School Budgets 2020/21 pdf icon PDF 344 KB

The report of the Strategic Director for Children and Education Services is attached.

Additional documents:

Minutes:

Dedicated School Grant (DSG) is a ring fenced grant of which the majority is used to fund individual schools’ budgets in maintained schools and academies in the city, early-years nursery entitlement and provision for pupils with high needs, including those with Education Health & Care Plans (EHCPs) in special schools, special provision and mainstream schools in Manchester and out of city.

 

A report submitted by the Strategic Director for Children and Education Services explained how the allocated DSG was distributed across the schools and supported establishments in Manchester.

 

The report explained that for 2020/21 the DSG would be made up of four blocks: schools block, early years block, high needs block and central services schools block. It was reported that Manchester was to receive a total DSG of £560.304m. The overall increase in grant compared to 2019/20 was £29.536m. The biggest change in the grant was due to 1.84% per pupil related increase in part of the grant that supports primary and secondary schools, and the £11.994m uplift in the high needs block.

 

The breakdown of the DSG in 2020/21, compared to 2019/20 would be:

 

Block

2019/20

£m

2020/21

£m

Change

£m

Schools

409.073

425.944

16.871

Central School Services

3.658

3.661

0.003

High Needs

76.924

88.918

11.994

Early Years

41.113

41.781

0.668

Total

530.768

560.304

29.536

 

Decision

 

To note the report.

 

 

18.

Housing Revenue Account 2020/21 to 2022/23 pdf icon PDF 328 KB

The report of the Strategic Director (Growth and Development) and Deputy Chief Executive and City Treasurer is attached.

Additional documents:

Minutes:

(Councillor Midgley declared a disclosable pecuniary interest in this item and withdrew from the meeting while it was considered).

 

A report by the Strategic Director (Development) and City Treasurer presented the proposed budget for the Housing Revenue Account (HRA) for 2020/21 and indicative budgets for 2021/22 and 2022/23.

 

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.

 

Under a variety of arrangements, the Council owns and manage just under 16,000 properties within the HRA. The arrangements included three PFI schemes and the stock managed by either Northwards Housing or other Registered Social Landlords. During 2019/20 the Council was anticipating selling around 193 properties under the Right to Buy scheme.

 

Included in the report was the forecast for the HRA in 2019/20 to have an in-year surplus of £3.029m, compared to a budgeted deficit of £10.147m, and the main reasons for that change were explained in the report.

 

Following the four years of then annual 1% per cent rent reduction, the Government had agreed that rent policy for five years commencing in 2020/21 was able to revert to the Consumer Prices Index rate of inflation +1%, and that increase had been included within the proposed budget for 2020/21. For the approximately 1,000 properties where formula rent had not yet been achieved, the rent would be increased to formula rent when that property was next re-let.

 

Gas for the communal heating systems was sourced as part of the City Council’s overall gas contract. The existing wholesale gas contract expired shortly, and latest prices indicated that the current wholesale gas price would reduce by 7% with effect from April 2020. Therefore, in order to ensure that the costs of gas used were recovered through the tariffs charged for tenants and residents on a scheme-by-scheme basis, it would be necessary to reduce the current heating charges by between 0% and 36%. Appended to the report was a complete schedule of proposed heating tariffs for pay by rent and pay by prepayment card, showing the percentage change for 2020/21. All bar one of the schemes would see a reduction in fuel costs in 2020/21.

 

The report proposed that the Northwards management fee for 2020/21 be increased to reflect the costs of pay awards in 2020/21. That would equate to a rise of 1.55% or £315,000 in 2020/21.

 

In order to ensure that the increase applied to garage rents remained in line with that applied to dwelling rents, it was proposed that 2020/21 garage rents be increased by 2.7%, which would see an increase  ...  view the full minutes text for item 18.

19.

Treasury Management Strategy Statement and Borrowing Limits and Annual Investment Strategy 2020/21 pdf icon PDF 700 KB

The report of the Deputy Chief Executive and City Treasurer is now attached.

Additional documents:

Minutes:

The Council’s Treasury Management policy complies with the revised CIPFA Code of Practice on Treasury Management. The Council adopted this in March 2010.

 

The Local Government Act 2003 and supporting regulations require the Council to have regard to the Prudential Code for Capital Finance in Local Authorities and to set Prudential Indicators for the next three years to ensure that the Council’s capital investment plans are affordable, prudent and sustainable.

 

The proposed strategy for 2020/21 was based upon the views of Treasury officers on interest rates, informed by leading market forecasts. The Strategy covered:

            Prudential and Treasury Indicators

            Minimum Revenue Provision Strategy

            Treasury Management Policy Statement

            Treasury Management Scheme of Delegation

            Borrowing Requirement

            Borrowing Strategy

            Annual Investment Strategy

 

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

 

Decisions

 

1.         To commend the report to Council.

 

2.         To delegate authority to the Deputy Chief Executive and City Treasurer, in consultation with the Executive Member for Finance and Human Resources, to approve changes to the borrowing figures as a result of changes to the Council’s Capital or Revenue budget, and submit those changes to Council.

 

 

20.

Budget 2020/21 Public Consultation Outcomes pdf icon PDF 882 KB

The report of the Deputy Chief Executive and City Treasurer is now attached.

Additional documents:

Minutes:

A report from the Deputy Chief Executive and City Treasurer and the Head of Strategic Communications provided a summary of the results of the budget consultation on the draft budget proposals for 2020/21, as well as a summary of the responses received. The report described how the consultation had bene undertaken between December 2019 and early February 2020. A questionnaire had been used to gather the views of residents and 200 responses had been received. The report set out in detail the responses to each of the questions asked on the questionnaire.

 

Decision

 

To note the report.

 

 

21.

Budget 2020/21 Equality Impact Assessment pdf icon PDF 274 KB

The report of the Deputy Chief Executive and City Treasurer is now attached.

Additional documents:

Minutes:

A report from the Deputy Chief Executive and City Treasurer reviewed a selection of the Equality Impact Assessments (EIAs) produced in support of the Council’s business planning process for 2019/2020. The report outlined the context of why the Council undertook EIAs and some of the key themes emerging from the business priority-related analyses produced in the last year.

 

The report also described changes to the Council’s approach to business planning for 2020-21, the implications for how equality impacts were to be considered within the plan, and how the process of producing EIAs was to be managed moving forwards.

 

As the Council’s financial settlement for 2020-21 was, in a the main, a roll-over of the 2019/20 settlement, the report did not relate to any new budget-related consultations with EIAs attached.

 

Decision

 

To note the report.

 

 

22.

Manchester Climate Change Update pdf icon PDF 546 KB

The report of the Deputy Chief Executive and City Treasurer is attached.

Additional documents:

Minutes:

An update on work to address climate change was considered. The Council’s key leadership role had resulted in the establishment of the city’s partnership-based approach to climate action. That had started with the creation of the “Manchester: A Certain Future Steering Group” in 2010. The approach recognised the need for everyone in the city to be mobilised to play their full part in tackling climate change. Since then the city has been using to the science to inform and develop the city’s climate change strategy.

 

In February 2008 we approved “17 Principles of Tackling Climate Change in Manchester” and committed the city to becoming low carbon by 2020 (Minute Exe/08/27). In January 2009 we had gone on to adopt the “Call to Action” that sought to inspire and enable stakeholders to become fully engaged in the need to undertake mainstream activities in different ways to reduce carbon dioxide emissions (Minute Exe/09/4). In February 2014 we had approved the Climate Change Action Plan (CCAP) for 2014/15 to 2016/17 (Minute Exe/14/22). In 2015 that plan was extended to run until 2017/18 (Minute Exe/15/034). In November 2018 we had adopted, on behalf of the city, the Tyndall Centre’s proposed targets and definition of zero carbon. We also committed to developing a draft action plan by March 2019, and a final detailed plan by March 2020, setting out how the city will ensure that it stays within the proposed carbon budget (Minute Exe/18/101). In July 2019 the Council then declared a climate emergency (Minute CC/19/52) which was considered and accepted by the Executive later that month (Minute Exe/19/59).

 

The target to reduce Manchester’s CO2 emissions by 41% by 2020, from 2005 levels, was based on recommendations by the Tyndall Centre for Climate Change Research at the University of Manchester (the Tyndall Centre). In June 2018 Manchester Climate Change Agency and the Manchester Climate Change Partnership had commissioned the Tyndall Centre to recommend targets to further define the city’s commitment to ‘play its full part in limiting the impacts of climate change’, as set out in the Our Manchester Strategy. The Tyndall Centre’s report was due on 28 February 2020 but work to date had identified the following draft recommendations:

·         Retain the existing 15 million tonne CO2 carbon budget for 2018-2100

·         Note that the updated carbon budget approach based on the latest scientific synthesis report by the IPCC would allow an increase in the carbon budget to 18 million tonnes CO2 but that by retaining the 15 million tonne budget showed ambition and leadership

·         Focus on immediate action to achieve a minimum reduction rate of 13% per annum and meeting interim (five-year) carbon budgets

·         Note that if the city did not reduce emissions by 13% per annum, an increased rate will be required from 2020 in order to stay within budget.

·         Carbon budgets should be revisited in five years or in response to a new scientific synthesis report.

 

The Tyndall Centre had also been commissioned to examine and report on carbon emissions  ...  view the full minutes text for item 22.

23.

School Place Planning and Admissions pdf icon PDF 348 KB

The report of the Director of Education is attached.

Additional documents:

Minutes:

A report from the Director of Education used the school admissions data for 2019/20 to forecast future demand for primary and secondary school places in the city and to make the case for supporting the creation of a new primary school in the city centre and a new secondary school in east Manchester.

 

The city’s population was increasing. It was predicted to be around 664,000 by the mid-2020, compared to 504,000 when measured in the 2011 Census. The October 2018 school census had identified 77,372 pupils attending Manchester Schools, that had increased to 79,429 pupils in the October 2019 census. Given that change, and the predictions of population change, ensuring a sufficient supply of high quality school places would remain a priority for the Council.

 

The report explained that the Council was working with its partners to develop additional places in targeted areas, utilising Basic Need funding from the government for the site and building works. The development of new schools by a local authority required the use of the free school presumption process, working with an approved sponsor to establish the school. All new schools established through the presumption process were therefore classified as Free Schools.

 

In response to this forecast demand the Council had been working with Renaker Build to establish a new primary school as part of the Crown Street phase 2 development in the city centre (Minute PH/18/58). The school was expected to provide 210 places for primary age children along with a 26 place nursery. The free school presumption process for this school would now be used and it was anticipated that the school would admit its first pupils in 2024. A second new primary school was also being investigated by the Star Academies Trust, if a permanent site for it could be acquired. That was forecast to open in 2023.

 

In relation to secondary school places, the report explained that plans to develop a new secondary school at Nutsford Vale, Matthews Lane (Minute PH/18/21) had not progressed as expected. To safeguard the future development of a new secondary school in east Manchester approval had been given to fund the acquisition of the Showcase Cinema site on Hyde Road (Minute Exe/20/08). Some of that site could be given over for a new secondary school. If that site proved to be suitable then the new school at Matthews Lane would not be progressed as it was becoming clear that constructing a school on Nutsford Vale would be overly expensive.

 

The development of a new secondary school at the Hyde Road site would still require a free school presumption process to be undertaken to identify a preferred sponsor. That process should conclude in late summer or early autumn 2020 and the first places made available in September 2021 school admissions. However, opening of the school for September 2021 would require the use of temporary accommodation for a period of up to three years while the new school was being built.

 

The meeting was addressed by Councillor Johns  ...  view the full minutes text for item 23.

24.

Refresh of the Ancoats and New Islington Neighbourhood Development Framework pdf icon PDF 505 KB

The report of the Strategic Director (Growth and Development) is now attached.

Additional documents:

Minutes:

Ancoats and New Islington are two distinctive neighbourhoods that are within the city centre and adjacent to the neighbourhood of Miles Platting. In April 2014 we endorsed a draft Ancoats and New Islington Neighbourhood Development Framework (NDF) as a basis for consultation with local stakeholders and landowners (Minute Exe/14/041). In October 2014 we considered and approved a final version of the Framework (Minute Exe/14/109). Then, in July 2016 we had endorsed a draft of a refreshed Ancoats and New Islington Neighbourhood Development Framework so that it could be subject to further consultation with local stakeholders and landowners (Minute Exe/16/099). In December 2016 a final version of that Framework had been approved (Minute Exe/16/153).

 

A report now submitted by the Strategic Director (Growth & Development) explained that it was now felt to be necessary to set the objectives for those elements of the NDF that related to the Back of Ancoats Poland Street area; and to set objectives for the redevelopment of the Council-owned former Central Retail Park site that on Great Ancoats Street.

 

To ensure that new affordable housing could be developed in the NDF area it was proposed that three sites in Council ownership should now be set aside for this purpose. Those sites were land adjacent to Butler Street; land adjacent to Downley Drive; and the former Ancoats Dispensary. These three sites were shown on a map included in the report. Together the three sites should provide for up to 145 new homes.

 

For the Back of Ancoats Poland Street area the report the report explained that the purpose of the refresh of the 2016 NDF was to ensure that it incorporated current thinking in terms of the redevelopment of the area and was properly aligned to the current market context relating to a number of key issues including zero carbon and affordable housing. The report described this areas as having an interrupted street grid pattern that was dominated by two industrial estates at Poland Street; vacant and underutilised sites that detract from the visual amenity; as being part of the Conservation Area but gaining little benefit from the that; as having some open space at Kemp Street that attracted a high level of anti-social behaviour; with a lack of pedestrian footfall and visible daytime activity; and with low value buildings that do not front onto the Rochdale Canal and therefore do not exploit the advantage of a waterside location.

 

The specific objectives that were now being proposed for this area in the refresh of the NDF were:

·         the reinstatement of the grid pattern street layout to improve connectivity and movement through the area as well as creating legible routes that draw pedestrians into the area and through to the surrounding areas;

·         the creation of a mixed living and working neighbourhood, delivering flexible commercial floorplates for office and modern light industrial uses that can co-exist with a residential development that offers a range of typologies and tenures including the provision of affordable housing; and

·         the creation of high quality  ...  view the full minutes text for item 24.

25.

City Centre Transport Strategy Engagement Outcomes pdf icon PDF 282 KB

The report of the Strategic Director (Growth and Development) is now attached.

Additional documents:

Minutes:

In October 2019 a report had been considered on proposals for a revised City Centre Transport Strategy (CCTS) that would be aligned to the Greater Manchester Transport Strategy 2040. It was felt that a new strategy was needed to take account of the ongoing and future predicted growth of the city centre and of changes in the policy context since the adoption of the 2010 strategy. The new strategy would incorporate the GM 2040 Strategy and the goal of being a zero-carbon city by 2038. The drafting of the strategy would take into account the outcomes of the City Centre Transport Strategy Conversation that had taken place in the autumn of 2018. It had been agreed than that the Council would undertake an engagement and co-design exercise with key stakeholders in the city centre and surrounding wards in order to further develop the strategy with support from Transport for Greater Manchester (TfGM) and Salford City Council (Minute Exe/19/82). A report now submitted by the Strategic Director (Growth and Development) set out the outcomes of that exercise.

 

The engagement exercise had taken the form of seven workshops in the city centre, four in December 2019 and three in January 2020. These workshops included an introductory presentation and a facilitated group discussion, with in-depth participation from attendees. Qualitative responses were recorded during the session. Some participants also provided further comments and feedback after the workshop. In all 52 people had taken part in the workshops and 22 of those had gone on to provide additional feedback after the event.

 

The report set out the outcomes from the workshops and the views of the stakeholders who had taken part. Participants had agreed the strategy should be ambitious in setting targets for each mode of transport. Participants also commented that transport is one of the main contributors of CO2 emissions, so the targets should be more ambitious to recognise the Climate Emergency declared by the Council. Improving air quality was also a priority. Stakeholders recognised behaviour change should be a key part of the strategy, as well as combination of quick-wins and longer-term interventions.

 

Detailed findings were set out under three headings: walking, cycling and the role of city centre streets; the role of public transport; and managing traffic and parking. Some geographic areas of the city centre had been identified as needing specific interventions including Deansgate, Stevenson Square and the wider Northern Quarter, Mosley Street, Cross Street and Chinatown.

 

The report explained that the next step in the process would be to use the information gathered to inform a draft strategy document, to be developed with Salford City Council. That draft would then be the subject of further public consultation. That was agreed.

 

Decisions

 

1.         To note the intention to produce a revised City Centre Transport strategy.

 

2.         To note the outcome of the engagement exercise on the Strategy.

 

3.         To agree to now hold a wider public consultation on the draft strategy.

 

4.         To delegate authority to the Head of  ...  view the full minutes text for item 25.

26.

First Street Strategic Regeneration Framework Addendum pdf icon PDF 538 KB

The report of the Strategic Director (Growth and Development) is attached.

Additional documents:

Minutes:

In July 2012 we had considered and endorsed the revised and updated First Street Development Framework (Minute Exe/12/082). In November 2015 we had adopted an updated and revised version of the Framework, having first considered the views put forward during consultation on a draft of that document (Minute Exe/15/125). In July 2018 a further update to the Framework had been brought forward and we had agreed that there should again be a period of public consultation on the proposed revisions (Minute Exe/18/075). In November 2018 a final version of that Framework had been considered and approved (Minute Exe/18/106).

 

A report now proposed that an addendum to the framework be considered to address the future development of three specific sites:

·         The Little Peter Street site which was bounded by Little Peter Street to the north, Albion Street to the east and the River Medlock to the south. This site is within the ownership of the City Council and operated by NCP as a surface car park. This was envisaged as becoming a high quality, landmark commercial development.

·         The One City Road site bounded by City Road to the north, Medlock Street to the west, River Street to the south, and Shortcroft Street to the east; occupied by a 4 storey office building with a private surface car park. This was envisaged as being a commercially-led development with two new buildings.

·         The Premier Inn site at the southern end of Medlock Street facing the junction with the Mancunian Way which accommodates the five-storey Premier Inn building, and its associated car parking area of 113 spaces with the future as a commercially led, mixed use development.

 

It was proposed and agreed that there now be public consultation on the addendum to the Framework.

 

Decisions

 

1.         To approve in principle the draft First Street Development Framework Addendum.

 

2.         To request that a public consultation exercise on the addendum be undertaken with local stakeholders.

 

3.         That a further report be made setting out comments received during the consultation.

 

 

27.

St Mary's Parsonage - Strategic Regeneration Framework pdf icon PDF 311 KB

The report of the Strategic Director (Growth and Development) is attached.

Additional documents:

Minutes:

The proposed St Mary’s Parsonage Strategic Regeneration Framework area is located in the heart of the city centre, bound by three main arterial routes in and out of the city centre; Deansgate, Bridge Street and Blackfriars Street. Immediately to the south of the site is Spinningfields, and to the north is the Ramada Complex, Deansgate. The area benefits from important green space, with Parsonage Gardens being a tranquil green square in the city centre. It is also adjacent to the River Irwell, but with little connection with the river at present.

 

A report from the Strategic Director (Growth & Development) explained that it was felt that there were significant opportunities for the area to contribute to the Council’s zero carbon target by improving the environment for walking and cycling and the reduction of motor vehicles from the area. There was the opportunity to create carbon neutral buildings of the highest standard of energy efficiency and to refurbish and redevelop the area’s existing heritage buildings to significantly reduce their carbon footprint.

 

A draft Strategic Regeneration Framework (SRF) for the area had been developed. The report explained that there are a number of buildings in the neighbourhood felt to be no longer fit for purpose. Replacing these buildings should positively contribute to the area, with high quality design and materials, whilst respecting listed buildings. The report addressed specific proposals for keys sites within the overall area including:

·         Kendal Milne building & Multi Storey Car Park

·         Reedham House & No.3 St Mary’s Parsonage

·         Albert Bridge

·         Alberton House & Cardinal House

·         No.1 North Parade

 

It was explained that the indicative phasing of the redevelopment of the sites within the SRF area was likely to be dependent on the aspirations of the landowners within the SRF area. The phasing being anticipated was

·         2021-2023: - Kendal Milne building refurbishment and the King Street West multi-storey car park redevelopment

·         2022-2023: - Cardinal House refurbishment

·         2022-2024: - Alberton House refurbishment

·         2022-2025: - Albert Bridge House and Bridge Street surface car park redevelopment, delivering three new buildings

 

It was thought to be crucial for the first phase of development to be supported by a public realm strategy and delivery plan.

 

It was agreed that the St Mary’s, Parsonage areas was an important but underutilised city centre neighbourhood with potential to significantly contribute towards the regeneration and growth ambitions of the city. The intention was for there to be public consultation on the draft SRF for the area, with the outcomes of that reported to a future meeting. That was agreed.

 

Decisions

 

1.         To approve in principle the draft St Mary’s Parsonage Strategic Regeneration Framework.

 

2.         To request the Strategic Director undertake a public consultation exercise on the addendum with local stakeholders.

 

3.         That a further report be made setting out comments received during the consultation.

 

 

28.

Empty Houses to First Time Buyer Homes - Update Report pdf icon PDF 304 KB

The revised report of the Strategic Director (Growth and Development) is now attached.

Additional documents:

Minutes:

In October 2017 approval had been given for the approve the establishment of the Housing Affordability Fund to allow the Council to invest directly into the provision of affordable homes in Manchester (Minute Exe/17/129). The fund would allow the Council to support new-build scheme in the city and also to help purchase existing properties to allow them to be made into affordable homes.

 

In March 2018 two schemes were approved developed to utilise the fund to improve the availability of affordable housing in the city. These were: a “Rent to Purchase” scheme, and an “Empty houses to First Time Buyer Homes” (Minute Exe/18/026).

 

A report was now considered that provided an update on the Empty Houses Scheme, proposing the use of some of the Fund to grant funds to a registered social landlord so that could bring empty properties back into use as affordable homes.

 

The report explained the social landlord Mosscare St Vincent’s could acquire the empty properties and undertake their refurbishment. The homes would then be marketed to first time buyers or residents, on or below the average household income, who wish to become owner-occupiers. Based on combined acquisition and refurbishment costs of around £120,000and a sales programme which would require a 10% non-recoverable subsidy, an initial investment by the Council of £2m could potentially deliver 90 homes from empty properties in the city.

 

The grant payment would be secured under the provisions of Section 22 of the Housing Act 1996 which grants the Council the power to provide financial assistance in the form of grants or loans to a registered social landlord for the provision of housing. This proposal was agreed.

 

 

Decisions

 

1.         To approve the giving of grant funding to Mosscare St Vincent’s (MSV) under the provisions of Section 22 of the Housing Act 1996 in order to bring empty properties back into use for affordable home ownership.

 

2.         To authorise the City Solicitor to enter into any agreements to give effect to this decision.

 

 

29.

Northern Gateway Strategic Business Plan (Part A) pdf icon PDF 444 KB

The report of the Strategic Director (Growth and Development) is attached.

Additional documents:

Minutes:

Having introduced this item of business Councillor Leese left the meeting at this point. Deputy Leader Councillor N Murphy took the Chair.

 

In March 2017 we had authorised the City Solicitor, City Treasurer and Strategic Director (Development) to enter into an agreement with the Council’s preferred investment partner for the regeneration of the Northern Gateway lands, Far East Consortium International Limited (FEC). We had also delegated authority to the Chief Executive to dispose of the Council’s interest in land at the Northern Gateway Site (Minute Exe/17/064).

 

The Council had entered into the Joint Venture (JV) with the Far East Consortium (FEC) in April 2017 for the comprehensive redevelopment of the Northern Gateway for housing and ancillary development. As part of the delivery arrangements, the Council and FEC established a JV company, Northern Gateway Operations Limited (OpCo), to have strategic input into and oversight of the development of the Northern Gateway.

 

In February 2019 we approved the Strategic Regeneration Framework for the Northern Gateway, the 155 hectare land area made up of the adjacent neighbourhoods of New Cross, the Lower Irk Valley and Collyhurst. This Framework was to support the opportunity to deliver up to 15,000 new homes over a 15-20 year period (Minute Exe/19/25).

 

In June 2019 consideration was given to the preferred approach to facilitating strategic land acquisitions within the Northern Gateway SRF area, and approval given to making a loan of up to £11 million to FEC (Minutes Exe/19/52 and Exe/19/57).

 

A report now submitted by the Strategic Director, Growth and Development described in outline the Strategic Business Plan for the Joint Venture. A copy of the plan was appended to the confidential Part B report on this item of business (Minute Exe/20/32). The purpose of the plan was to set the strategic context for the Northern Gateway and to set the parameters for the subsequent Development Area Business Plans. The Strategic Business Plan was to be updated annually to ensure that it could take account of any changes in national and local policy, market sentiment or wider economic implications. It was to be used to monitor the progress of the Northern Gateway project.

 

The report explained that the Financial Model contained in the Strategic Business Plan was currently showing a minimal return against the overall projected Gross Development Value. The overall plan would not be at a sufficiently viable for a developer to undertake the overall development without additional external public sector investment. This low level of return and high level of development risk was a consequence of the costs associated with the huge site-wide infrastructure requirements which needed to be addressed to tackle abnormal costs and support the delivery of housing at the scale set out in the plan. In total the investment into necessary “place-making” infrastructure to support development across the entire Northern Gateway was currently estimated at circa £165m. A bid of £51.6m to the Government’s Housing Infrastructure Fund (HIF) would, if successful, support the delivery of such infrastructure, but additional  ...  view the full minutes text for item 29.

30.

Decisions of the GMCA 7 January and 31 January 2020 pdf icon PDF 487 KB

A copy of the Decision Notices from the GMCA meetings on 7 January 2020 and 31 January 2020 are attached.

Additional documents:

Minutes:

(Councillor N Murphy in the Chair)

 

Decision

 

To note the decisions made by the GMCA on 1 and 31 January 2020.

 

 

31.

Exclusion of the Public

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 Executive is recommended to agree the necessary resolutions excluding the public from the meeting during consideration of this item. At the time this agenda is published no representations have been made that this part of the meeting should be open to the public.

Additional documents:

Minutes:

(Councillor N Murphy in the Chair)

 

Decision

 

To exclude the public during consideration of the following item 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.

 

 

32.

Northern Gateway Strategic Business Plan (Part B)

(Public Excluded)

The report of the Strategic Director (Growth and Development) is attached.

Minutes:

(Public excluded, Councillor N Murphy in the Chair)

 

The Executive considered a report of the Strategic Director (Growth and Development), which set out the Northern Gateway Strategic Business Plan as prepared by the Development Manager, FEC, on behalf of the Northern Gateway Operations Limited joint venture company. A copy of the plan was appended to the report. The report also provided detail on the scale of FEC investment to date and the level of further investment required.

 

It was noted that the Economy Scrutiny Committee had also considered the report at a recent meeting of the committee and had endorsed the recommendations (Minute ESC/20/15).

 

Decisions

 

1.         To approve the Strategic Business Plan on behalf of the City Council as one of the two Shareholders in the Northern Gateway Joint Venture.

 

2.         To note the financial commitments made to date by the Development Manager, FEC, since the signing of the Joint Venture legal agreements in April 2017.

 

 

33.

Appendices to the Minutes

Additional documents:

Minutes:

Appendix A - Proposed Capital Virements

 

 

Project Name

2019/20

In yr virement proposed

2020/21

In yr virement proposed

2021/22

In yr virement proposed

2022/23

In yr virement proposed

Collyhurst Acquisition & Demolition (Overbrook & Needwood Close)

 

 

 

-1,070

Total Private Sector Housing Programme

0

0

0

-1,070

Charlestown - Victoria Ave multistorey window replacement and ECW

 

 

345

 

External cyclical works phase 3a

-7

-15

 

 

Renewal of 4 automatic pedestrian gates at Victoria Square

-45

 

 

 

External cyclical works Harpurhey - Jolly Miller Estate

 

-82

 

 

External cyclical works Ancoats Smithfields estate

47

25

 

 

External cyclical works Cheetham Appleford estate

 

 

2

 

External cyclical works Higher Blackley South

-22

-29

 

 

External cyclical works New Moston (excl corrolites)

 

-29

 

 

Environmental improvements Moston corrolites

8

21

 

 

Charlestown - Victoria Ave multistorey replacement door entry systems

 

-18

 

 

ENW distribution network phase 4 (various)

-160

5

 

 

Newton Heath - Croyden Drive Security Improvements

-100

-88

 

 

Delivery Costs

 

-55

 

 

2/4 Blocks Heating replacement with Individual Boilers

 

-7

 

 

Ancoats - Victoria Square lift replacement

54

 

 

 

Boiler replacement programme

-13

-6

 

 

Kitchen and Bathrooms programme

-265

-924

 

 

Newton Heath - Multies Internal Works

200

3,153

250

 

Various - Bradford/Clifford Lamb/Kingsbridge/Sandyhill Court Internal Works

 

47

 

 

Fire precautions multi storey blocks

-341

-885

 

 

Installations of sprinkler systems - multi storey blocks

-458

-623

 

 

Multi Storey blocks door entry system renewal Sandyhill/Bradford Crts

-5

-31

 

 

Fire Risk Assessments

-760

 

 

 

Delivery Costs

156

367

404

 

Bringing Studio Apartments back in use

 

-8

 

 

Various Locations - bringing bedsits back into use

 

 

8

 

Delivery Costs

 

-1

 

 

Delivery Costs

 

-19

 

 

Northwards Acquisitions

 

-3

 

 

Stock Acquisitions

 

-28

 

 

Delivery Costs

 

-4

 

 

Northwards Housing Programme

1,711

-763

-1,009

 

Collyhurst Estate Regeneration

-100

 

-9,580

 

North Manchester New Builds 2

 

-7,850

 

 

Collyhurst

100

7,850

9,580

1,070

Total Public Sector Housing (HRA) Programme

0

0

0

1,070

Plymouth Grove Refurbishment

-5

 

 

 

Beaver Rd Primary Expansion

-19

 

 

 

Lily Lane Primary

-19

 

 

 

St. James Primary Academy

-26

 

 

 

Webster Primary Schools

-19

 

 

 

Basic need - unallocated funds

88

 

 

 

Universal Infant Free School Meals (UIFSM) - Allocated

266

 

 

 

Universal Infant Free School Meals (UIFSM) - Unallocated

-266

 

 

 

Crowcroft Park PS-Rewire

-2

 

 

 

Broad Oak Primary School Kitchen

 

146

 

 

All Saints Prim Rewire

-58

 

 

 

Armitage Prim Windows

-20

 

 

 

Bowker Vale Prim Heating

5

 

 

 

Buton Lane Prim Roof

-9

 

 

 

Cheetwood Prim Heating

16

 

 

 

Crosslee Comm Heating

1

 

 

 

Crowcroft Park Roof Repairs

-26

 

 

 

Higher Openshaw Rewire

-76

 

 

 

Moston Fields Joinery

-37

 

 

 

Ringway Prim Roof

-56

 

 

 

Sandilands Prim Windows

-17

 

 

 

St Mary's Junior Windows

-9

 

 

 

Ringway Primary School

10

 

 

 

Schools Capital Maintenance -unallocated

278

-146

 

 

Total Children's Services Programme

0

0

0

0

Core Infrastructure Refresh

-26

 

 

 

Care Leavers Service

-14

 

 

 

Replacement Coroners System

-60

 

 

 

ICT Investment Plan

100

 

 

 

Total ICT Programme

0

0

0

0

Total Manchester City Council Capital Programme

0

0

0

0

 


 

Appendix B – Capital Approvals under authority delegated to the Deputy Chief Executive and City Treasurer

 

Dept

 

Scheme

 

Funding

 

2019/20

£'000

2020/21

£'000

Total

£'000

Highways Services

Great Ancoats Improvement Works

External Contribution

 

231

231

Public Sector Housing

Chimebank S106

External Contribution

34

 

34

Totals

 

 

34

231

265