To approve as a correct record the minutes of the meeting held on 22 January 2025.

Decision

The Executive approve as a correct record the minutes of the meeting on 22 January 2025.

The report of the Chief Executive is attached.

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 that Manchester had been allocated £1.5 million in Government funding to support the next phase of regeneration in Collyhurst, North Manchester – part of the major Victoria North initiative.  The funding, announced last week as part of a Government package of New  Towns investments, would help unlock a key element of the vision for Collyhurst by supporting the development of a business case for a new Metrolink stop at Sandhills, better connecting residents to opportunities in the city and Greater Manchester as a whole.  The news was a further boost for North Manchester following the Government’s confirmation last month that North Manchester General Hospital would be included in the first phase of its New Hospital Rebuilding Programme.

The Leader also reported that the Deloitte Crane Survey, considered the definitive review of construction in a city and a barometer of developer settlement and future supply, found that Manchester “continued to lead the way” in 2024.  The regional crane survey series monitored major construction activity in the central areas of Belfast, Birmingham, Leeds and Manchester. It found that despite a slowdown of construction across all four cities, reflecting inflation costs and the influence of global economic factors which were challenging the sector, Manchester had the highest number of major schemes starting in 2024 – 20 out of 47 across the four cities – and that overall activity levels remained strong with 27 projects completed during the year.

The Deputy Leader (statutory) reported that thousands of Manchester pensioners had received financial help this winter through Council support payments.  Almost 5,000 households where pensioners live, which were in receipt of Council Tax Support or Housing Benefit but did not qualify for winter fuel payments, automatically received payments of up to £200 to help them pay for energy, water, fuel or other essentials. Under the Council scheme 3,960 households with an eligible pensioner aged 66-79 received £150 payments, with 851 households where a pensioner aged over 80 lives receiving £200.

In addition, almost 1,500 awards had been made to pensioners who were in need and did not receive the winter fuel payment but were not identified for an

automatic payment.  A total of 83 community groups and organisations had also benefitted from £1 million of Council funding to provide a comprehensive package of support for Manchester residents in need – from helping people into education and employment to helping provide food.

The Assistant Executive Member for Housing and Development reported that Registered Provider One Manchester, had put in a planning application for a site off Moston Lane in Moston, North Manchester, to build 29 homes for affordable rent at the Manchester Living Rent.  If planning permission  ...  view the full minutes text for item 13.

Report of the City Treasurer attached

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which outlined the projected outturn position for 2024/25, based on expenditure and income activity as at the end of December 2024 and future projections.

The Executive Member for Finance and Resources advised that the current budget monitoring forecast was estimating an overspend of £17.5m for 2024/25, based on activity to date and projected trends in income and expenditure, government funding confirmed to date and other changes.  This was a decrease of £2.5m from the last reported position and was in the context of significant financial difficulty being faced across the Local Government Sector and reflected the national pressures in the health and social care sector and trends being experienced across most Social Care providing local authorities.

The Children’s directorate was facing an overspend of £10.6m, an increase of £1.9m from the last reported position. The biggest pressure continued to relate to external residential placements for Looked After Children (LAC).  Additionally, there was a shortfall in the Unaccompanied Asylum-Seeking Children (UASC) grant for the numbers now being accommodated and increased demand for Home to School Transport as a result of the number of children assessed as eligible following EHCP assessments.

Similarly the Adult Services Directorate was facing an overspend of £10.7m, an increase of £0.7m  from the last reported position. This was driven by long term care placements and cost pressures which were outpacing the offsetting demand management and prevention interventions.  There were also pressures across learning disability services, Disability Supported Accommodation Service (DSAS) and older person care. These were partly offset by underspends on short term care, and back office.

The Neighbourhoods Directorate had projected an overspend £2.3m, an improvement of £0.7m from the last reported position. The overspend related to a shortall in fair funding for Homelessness at £1.7m and was being monitored closely with a request to Government for additional funding in relation to Homelessness Prevention.  Other pressures related to a shortfall of income from markets and pressure in the provision of leisure services due to the costs of providing support following step in arrangements at both Wythenshawe Active Lifestyle Centre and Broadway Leisure Centre. Officers were working with Partners to identify sustainable long-term solutions for both sites.

Across all Service Directorates, total overspend was at £19.5m which was partly offset by increased grant income of £0.5m relating to a business rates grant for green plant and machinery announced after budget setting, and £1.5m reflecting the Council’s share of the £100m surplus on the national business rates levy account which was to be returned to authorities and announced in the Provisional Finance Settlement.

It was noted that these pressures were partly offset by a forecasted £2m utilities underspend due to the new contract for electricity effective 1 October 2023, and an additional £1m driven by the release of fortuitous income which represented unallocated income balances not allocated to services.

The Medium Term Financial Strategy, approved in February 2024, outlined a forecast budget shortfall of £29m  ...  view the full minutes text for item 14.

Report of the City Treasurer attached

The Executive considered a report of the City Treasurer, which informed of the progress against the delivery of the 2024/25 capital programme to the end of December 2024, the latest forecast of capital expenditure and the major variances since the Capital Programme Monitoring report submitted in November 2024 and the proposed financing of capital expenditure for 2024/25 and affordability of the Capital Programme.

The latest forecast of expenditure for 2024/25 for Manchester City Council was £387m compared to the current approved budget of £554m. Spend as of 31 December 2024 was £203m.  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 current forecasts showed that the financing costs remained affordable within the revenue budget available including reserves. The capital financing reserves will start to be drawn down to meet the costs associated with the borrowing in 2025/26

Decision

The Executive recommend that Council approve the budget changes to the Council’s capital programme detailed in section 7 and set out in Appendix C of the report

Report of the City Treasurer attached

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which set out the strategic and financial context which supported the 2025/26 Budget based on the outcome of the Final Local Government Finance Settlement.

The report set out the Framework for the Our Manchester Strategy and Corporate Plan priorities which provide the strategic context for the 2025/26 Budget. It also provided the financial context for the budget and the required statutory assessment of the robustness of the proposed budget.

The Medium-Term Financial Strategy (MTFS), approved in February 2024, recognised that significant budget reductions would need to be delivered over the Spending Review period to set a balanced budget in future years. When the three-year MTFS was presented in February 2024 this showed a forecast 2025/26 budget shortfall of £29m, which increased to £41m by 2026/27. An additional financial year had been added to the financial strategy which showed the gap to 2027/28 widening to £77m, as cost pressures continued, and the availability of smoothing reserves diminished. 

It was reported that the provisional finance settlement had been positive for Manchester which would enable the Council to deliver a balanced budget for 2025/2026 after the application of savings approved in previous budget rounds of £10.6m, new proposed savings of £18.2m, and the use of c£18m smoothing reserves, alongside grant increases announced in the provisional settlement.

The final Local Government Finance Settlement had also been positive for Manchester, considering the unprecedented cost pressures being experienced. An additional £49m has been made available from within core spending power, when compared to assumptions made when the last MTFP was last reported in February 2024. The majority of this is targeted to addressing the structural deficit in funding for Social Care.

For Manchester the final settlement did not differ significantly from the provisional. There was an uplift to Children’s Social Care Prevention Grant of £390k, bringing the total grant to £6.1m which has been passported to Children’s to support investment in early help and family support services.

The allocation of the Employer’s National Insurance Contribution grant had been shared with the grant for Manchester being £5.5m for Manchester, which resulted in a shortfall of £0.5m against the £6m increase to the Council’s staff costs which were directly funded by Council budgets.

On 7 February 2025,GMCA approved their budget and announced they were returning £30m of waste reserves to districts, Manchester’s share was £5.5m. The waste reserves would be returned in two tranches with £10m returned as part of the 2024/25 waste underspend in the current financial year, with £20m to be returned in 2025/26. This unexpected return of levy funds had allowed additional investment, over and above what was reported to the scrutiny committees in February 2025.

However, even though he financial settlement ad bene positive, it was proposed that efficiency and saving options of £41m were still progressed.  The majority of savings were aimed at productivity and efficiency improvements, alongside income generation, with front line services protected as much as possible.

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

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

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

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

The 2024/25 gross Corporate Core budget was £362.4m, with a net budget of £116.6m. Total income was £245.7m and included around £165.4m in respect of Government grants for housing benefits:-

The Corporate Core had delivered savings of £1.359m in 2024/25 and had a further £1.089m of savings for 2025/26 approved as part of the 2024/25 budget process.  In addition to the already approved savings, Corporate Services had identified further saving proposals totalling £8.953m over the next three years, with c£8.5m frontloaded into 2025/26.

It was also proposed to deliver further cross cutting savings through:-

·            Moving the payroll date to the end of the month, with staff being paid in arrears in line with many Councils resulting in a £400k per annum cashflow benefit

·            The deletion of long term vacant posts resulting in £2m savings across the Directorate

·            Increased collection of Council Tax and Business Rates resulting in furthers savings of £3.333m

It was also noted that Bereavement services already had approved savings of £372k to be affected in 2025/26. These were approved as part of the 2024/25 budget and were to be achieved through a combination of realigning existing income budgets to reflect income levels and applying an uplift of 5% to existing fees across bereavement services.  Applying this uplift would generate an additional £0.5m in 2025/26 and over 2026/27 and 2027/28 a further £1.15m.  The Council also had two large contracts for advertising – large format and small format contracts. The contracts generated an income to the Council for use of land and buildings for siting of the screens. Both contracts were uplifted annually by inflation, and the large format also contained a clause that paid an additional amount based on performance of the sites, and income generated. Based on the forecasts the Council was  forecasting an additional £1.915m over the next three years, with an initial £0.785m in 2025/26

In terms  ...  view the full minutes text for item 17.

Report of the Acting Strategic Director for Children and Education Services attached

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

The Children and Education Services gross annual budget is £638,154m, of which £374.863m relates specifically to the Dedicated School Grant (DSG), with a net annual budget for 2024/25 of £162.027m. As part of the 2024/25 budget setting proposals, a total of £3.394m had been proposed for 2025/26

The Directorate 2024/25 budget was currently forecast to be overspent by £10.592m (6%), and given current demand and placement trajectories the projected pressures could be as high at £14mnext year, resulting from national increases in placement costs for children and young people who need residential support for complex needs and increases in transport requirements to learners with Special Educational Needs

The provisional local government finance settlement for 2025/2, included increases in funding for social services and SEND.  Part of the increase in budget was intended to support Local Authorities implement the Governments strategic objectives set out in its policy statement “Keeping Children Safe, Helping Families Thrive” (December 2024). This policy statement combined with the legislative reforms in the Childrens Wellbeing and Schools Bill would deliver Government intentions to provide resource to support more children live with their families and where that was not safe to do so live in family environments; kinship and foster care 

To reflect this direction of change the Government had introduced a new Children’s social care prevention grant with £250m allocated to this. This coupled with ongoing financial commitment from the Government to support family hubs/family centres and our work in schools to promote inclusion provided a good opportunity to rethink the Council’s prevention and early help offer in Manchester.

Evidence continued to show there had been significant cost avoidance through the actions taken to support children and young people effectively at an earlier stage and avoid Looked after children status.  However, these cost avoidance financial benefits  ...  view the full minutes text for item 18.

Report of the Director of Public Health attached

The report of the Director of Public Health explained how the budget proposals for the Directorate had been developed.

Public Health was funded nationally through a specific ringfenced grant. However, the Greater Manchester locality had been part of the governments business rates pilot for a number of years whereby the funding ringfence is removed and an equivalent allocation received as an adjustment to business rates.  The gross 2024/25 budget was £60.357m with a net budget of £45.129m.  Income of £15.228m included use of reserves £1.731m, Better Care Fund £0.960m, contributions from NHS partners £3.327m, from other local authorities £1.414m and grants £7.796m.

The latest 2024/25 monitoring report to the Executive forecasted an underspend of £335k, with savings of £15k, agreed at previous budget settings processes having been achieved in full.

In line with corporate requirements budget options were developed by officers in Autumn 2024 and proposals discussed at Health Scrutiny Committee on 4 December 2024.  At that time the proposed options represented savings of £71k in 2025/26 and £453k in 2026/27.  However, given a shift in financial position and a more positive Local Government settlement, public health savings proposals were no longer being made for 2025/26 and 2026/27 at this stage.

The plan for 2026/27 onwards will be reviewed when the detail of the Public Health Grant and Local Government Spending Review was known.   

It was noted that the report had also been considered at a recent meeting of the Health Scrutiny Committee where the committee had endorsed the budget proposals (Minute HSC/25/??)

Decision

The Executive endorse and recommend that Council approve the budget proposals as detailed in the report.

Report of the Executive Director of Adult Social Services attached

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

The gross 2024/25 budget was £317.066m with a net budget of £251.979m. Income of £65.087m included client fees £33.971m, Better Care Fund Grant £18.872m, contributions from NHS partners of £9.324m and other income of £2.920m which included grants and use of reserves.

The latest revenue monitoring to the end of December 2024 was a projected overspend of £10.654m, an increase of £0.670m from the position reported in the December budget report.  The overspend was driven by long term care placements, transitions from children’s services and growing cost pressures which are outpacing demand management interventions.

The current forecast (and associated substantive overspend) was part of a national picture. Manchester was not an outlier in experiencing these pressures with growth in spend in line with benchmarks, including spend to budget across Core Cities and Greater Manchester authorities.  Past investment in preventative services meant that Manchester still spent proportionally less of its budget on ASC than benchmarked authorities.

The outcome of the provisional local government finance settlement acknowledged these national pressures with a significant proportion of the improved settlement targeted at addressing the pressures in social care. The current pressured position in Manchester and nationally was also reflective of pressures in the NHS which was having a substantial impact on Adult Social Care.

The long-term care budget was forecast to overspend by £10.760m across learning disability services and older person care and was slightly offset by net underspends on short term care, workforce establishment and back office. The gross cost variance within the long term care budget was £14.474m and income, primarily from client contributions, was above budget by £3.714m bringing the net overspend to the £10.760m.

Additional income reflected both the increased activity level but also that care costs were significantly higher following a substantive increase in fees in 2024/25. Client contributions were set based on ability to pay through the financial assessment framework.

A total of £5.4m of the £7.8m savings programme for 2024/25 had been delivered. The remaining £2.4m shortfall was included within the overspend position, notably in relation to homecare services demand management (£1.8m) and £0.5m was within the area of discharge to assess. These were also  ...  view the full minutes text for item 20.

Report of the Strategic Director (Neighbourhoods) attached

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

The Neighbourhood Services Directorate had a gross budget of £264.7m and a net budget of £142.8m. The Directorate employed 1,799fte.

Savings of £1.7322m had already been approved for 2024/25 as part of prior year budget approvals. The savings were part of an ongoing programme to reduce the costs of temporary accommodation and emergency placement costs.

As part of identifying further savings options the initial priority has been to protect service delivery wherever possible, and this has included looking to increase income generation opportunities where possible.  The following further savings were proposed:-

·            Parks and Green Spaces - £125k

·            Compliance and Enforcement - £107k

·            Waste and Recycling - £47k

·            Neighbourhood Teams - £15k

·            Commercial and Events - £400k

 ·            Libraries - £50k

·            Leisure - £20k spread over two years

·            Community Safety - £15k

·            Housing Access and Homelessness - £2.2m spread over three years

·            Galleries - £198k phased over three years

As part of the 2024/25 budget process approval was provided for c£1.5m

additional investment in waste collection and street cleansing. The growth was phased £0.8m 2025/26 and £0.7m 2026/27 and was provided to recognise the growth in demand because of the increase in households across the city.

In addition to the demographic growth, over £4.4m had been provided for as part of the budget process to reflect the likely increased costs of the waste disposal levy.  The £4.4m was over three years and was broken down as follows:-

·            £0.786m - 2025/26

·            £2.379m - 2026/27

·            £1.294m - 2027/28

In addition, the domestic abuse safe accommodation grant, previously received by the Directorate had now been rolled into the Settlement Funding Assessment. Funding in 2025/26 was £2.147m and the Directorate budget would be increased to reflect the commitments against this funding.

As development continued across the city, it was recognise that this might lead to increased growth pressures for Neighbourhood Services as the number of households grows. There had been previous demography growth approved for both waste collection and street cleansing, but the increased demand for services was likely to extend across other services including compliance, parks, leisure and wider neighbourhood working.

It was noted that the budget reports had also been considered at a recent meeting of the Communities and Equalities Scrutiny Committee (Minute CESC/25/09), the Resources and Governance Scrutiny Committee (Minute  ...  view the full minutes text for item 21.

Report of the Strategic Director (Growth and Development) attached

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

The Growth and Development Directorate had a gross budget of £47.7m and a net income budget of £12.776m and employed 435 FTEs.  In addition, Highways services and parking services and CCTV had a gross budget of £35.7m and net budget of £13.05m and employed 263 FTE

The Directorate was forecasting a £0.617m underspend in the current financial year.  There were various under and overs across the service, but the main variations were:-

·            Development & Investment Estate, forecasted £312k overspend;

·            City Centre Regeneration, forecasted £234k underspend;

·            Planning, forecasted £0.564m underspend; and

·            Highway Services, forecasted £134k underspend

Savings of £0.815m were already approved as part of prior year budget processes, these were to be delivered from increased annual rent increase from Manchester Airport.  The increase was based on initial estimates provided by the airport and achievement was based on performance being in line with, or better than the forecast.

In addition to the £0.815m already approved, the Directorate had identified further proposals of £2.422m to be delivered over the next three years with £1.658m in 2025/26:-

·            City Centre Growth & Infrastructure - £121k

·            Strategic Housing - £228k

·            Planning, Building Control & Licensing- £231k

·            Investment Team - £0.73m

·            Major Regeneration - £84k

·            Work & Skills - £100k

·            Strategic Development - £28k

·            Cross Cutting - £0.9m

·            Highways - £2.304m

As part of 2024/25 budget an initial £1.250m of savings were approved through increased investment estate income, it was noted that c£0.5m of that was one off and the budget was to be increased by that amount in 2025/26.

As part of the 2024/25 budget process, it was highlighted that off-Street Parking had not recovered to pre covid levels, with the main shortfall being reduced annual season ticket sales.  To offset the reduced income, it had been approved as part of earlier years budgets that the gross income budget would be reduced by £2.1m to reflect the lower income generated following the pandemic.  Support that had been provided through use of the parking reserve was not sustainable ongoing and it had been approved as part of the 2023/24 budget that the off-street parking budgets were to be increased in 2025/26 by £2.1m to offset the reduced income.

Within the provisional finance settlement in December 2024 the Council had received notification of  ...  view the full minutes text for item 22.

Acting Strategic Director (Children and Education Services) attached

The Executive considered a report of the Acting Strategic Director for Children’s and Education Services, which provided a summary of the confirmed Dedicated Schools Grant (DSG) allocation from the 2025/26 settlement.

The DSG was a ring-fenced grant of which the majority was 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.

The Council received and managed the DSG within four blocks: schools, central school services, high needs and early years.  A large proportion of it was paid directly to schools and other settings to provide the majority of education services. A proportion of the DSG was provided to the Council to deliver education services.

The 2025/26 DSG totalled £802.922m with an overall increase in DSG since last year of £71.04m

Most of the funding increase was delegated directly to primary and secondary schools. Funding allocations are based on a National Funding Formula (NFF). The school's block hads increased by £43.877 million compared to 2024/25 due to:

·            £3.696 million increase in funding.

·            £0.848 million increase, which includes a £1.412 million rise due to around 750 pupils moving from primary to secondary school, which are funded at higher rates. However, the net pupil numbers for 2025/26 have decreased by 22 compared to 2024/25, resulting in a £0.564 million decrease in the growth fund.

·            £39.333 million increase from rolling three grants (Core Schools Budget Grant, Teachers’ Pay Additional Grant, and Teachers’ Pension Employer Contribution Grant) into the core funding formula for mainstream schools from 2025/26. These were previously paid as separate grants in 2024/25.

It was expected that there would be a new additional grant to compensate schools for the increase in Employer National Insurance Contribution levels.  The amount Manchester Schools would receive had not yet been announced.

The Central Schools Services Block allocation of £3.997 million supported the Council's role in education.  It included:-

·            On-going Responsibilities: Funding based on the number of pupils and deprivation, covering admissions, copyright licenses, servicing the Schools Forum, and duties for both maintained schools and academies.

·            Historic Commitments: Funding based on past actual costs.

From 2024/25, the funding per child aged 5-16 in mainstream settings increased by £1.75, the equivalent of £146k or a 3.65% increase on previous year.  However, there was an automatic reduction in historical commitments related to prudential borrowing.  The Council had successfully applied for funding protection, reinstating the previous funding level, as these costs would still  ...  view the full minutes text for item 23.

Report of the Strategic Director (Growth and Development), Strategic Director (Neighbourhoods) and the City Treasurer attached

A joint report by the Strategic Director (Growth and Development), the Strategic Director (Neighbourhoods) and the City Treasurer presented the proposed budget for the Housing Revenue Account (HRA) for 2025/26 and indicative budgets for 2026/27 and 2027/28.

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 was 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 current gross HRA budget was £112m and this included a £33.6m charge from depreciation (£24.4m) and a Revenue Contribution to Capital Outlay (RCCO) (£9.2m) towards the overall £62.8m capital programme.

As at the end of December 2024 the HRA was forecasting a gross underspend of £1.897m. This was made up of £4.458m less than forecast revenue spend, partially offset by £2.561m higher than originally forecast capital expenditure.

The forecast revenue contribution to the capital programme (funded from the general reserve) was £2.561m higher than budgeted at £11.8m. The main reasons for the increase were because of new additional schemes approved in July 2024 for adaptations and high-rise projects along with capitalisation of  repairs and maintenance costs that were previously reported within the revenue programme.  Reasons for reductions relate to a change to the depreciation calculation using a componentisation method along with large reductions in forecast spend on Social Housing Decarbonisation Fund and slippage in the Collyhurst new build programme.

Housing Services management and maintenance costs were forecasting a net £0.918m overspend, this was mainly due to overspending on disrepair claims £1m, and £3m higher than forecasted costs for in year fire risk assessment works, offset by reduced repairs and maintenance of c£3.5m due to capitalisation.

In previous years the Government’s formula rent guidance assumed that rents increased by up to CPI plus 1%. The CPI rate used was based on the September figure in the preceding year, and as at September 2024, CPI was 1.7%.  This HRA budget had been prepared in line with the formula rent of 2.7% to all tenants, with effect from April 2025. Based on these increases the average weekly rent (based on 52 weeks) would be:-

·            General Needs                    £92.70 (£2.54 increase)

·            Supported Housing              £85.15 (£2.50 increase)

·            PFI Managed                       £112.74 (£2.96 increase)

It was noted that the PFI managed rents were higher than General needs because they had not been subject to either the four years rent reductions, or the rent capping that had been imposed on general needs rents

In line with Manchester’s Anti-Poverty Strategy and support for residents during the ongoing cost of living crisis it was proposed that the community living fund was retained for 2024/25 and a budget of £150k was proposed.

In  ...  view the full minutes text for item 24.

Report of the City Treasurer attached

The Executive considered a report of the 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 2025/26 to 2027/28 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 2024/25, also being considered at this meeting (Minute Exe/25/?? above).

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 £395.7m in 2024/25, £392.8m in 2025/26, £131.1m in 2026/27, £95.5m in 2027/28 and £37.9m in 2028/29, which would require prudential borrowing of £434.9m (£341.6m General Fund and £93.3m HRA) to fund schemes over the five-year period for which provision has been made in the revenue budget for the associated financing costs, summarised as follows:-

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

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 capital strategy, specifically regarding delays to the programme or treasury management risks.  Measures were in place to mitigate these risks through both the Strategic Capital Board and the treasury management strategy. Reports would be provided throughout the year to Council, Executive and other relevant committees providing updates on the progress of the capital programme and the risks associated with its delivery and funding.

Decisions

The Executive:-

(1)      Approve and recommend  ...  view the full minutes text for item 25.

Report of the City Treasurer attached.

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 2025/26 and Prudential Indicators for 2025/26 to 2027/28.

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 2025/26 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 2025/26 to 2027/28;

•                Impact of 2012 HRA reform;

•                Current Portfolio Position;

•                Prospects for Interest Rates;

•                Borrowing Requirement;

•                Borrowing Strategy;

•                Annual Investment Strategy; and

•                Non-Treasury Investments and Liabilities

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)           Recommend the report to Council.

(2)      Delegate authority to the City Treasurer, in consultation with the Executive Member for Resources and Finance, 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.

Report of the Assistant Chief Executive and Strategic Director (Neighbourhoods) attached

The Executive considered a report of the Assistant Chief Executive and the Strategic Director (Neighbourhoods),  set out the Council’s annual performance for 2023/24 in the management of Local Government and Social Care Ombudsman (Ombudsman) enquiries, along with notification of the Ombudsman publishing a Public Interest Report regarding a homelessness case managed by the Council.

The Assistant Chief Executive advised that there had been a continuing trend of significantly increasing complaints the Ombudsman has asked the Council to consider from 2020/21 to 2023/24.  However, the proportion of Ombudsman cases being upheld had decreased from 23% to 16%, and timeliness of response to the Ombudsman has increased from 13 to 18 average days, highlighting both the value of conducting thorough investigations and of prioritising responses to the Ombudsman.

This was positive as it shows that, despite significantly increased case numbers and service failure, the Council’s policy of being honest where things had gone wrong and providing appropriate remedies, was in-line with the expectations of the Ombudsman.

In December of 2024, the Ombudsman published a ‘Public Interest Report’ on a case concerning a homelessness handled by the Council in 2023/24.  In the case determined against Manchester, the Ombudsman found fault causing injustice in the way the Council handled complainant’s homeless application and specifically in respect of the Council’s duty to secure suitable temporary accommodation under s193(2) 1996 Housing Act (as amended).

The Council had agreed to accept the Ombudsman’s recommendations, which were to apologise to the complainant, pay compensation and review its procurement procedure and produce an action plan with steps to increase the supply of different types of temporary accommodation suitable for those with disabilities and other complex needs.

Improving performance in managing Ombudsman caseload continues to be a top priority for Council officers, with a view to responding in a timely way and reducing the number of cases where the Ombudsman finds fault in Council service delivery or decisions.  Were fault is found; the Council is committed to learning from this and feeding this insight back into service planning to make improvements.  Whilst it was always disappointing to receive an Ombudsman of this nature, the Council appreciated that these could be invaluable in raising awareness and affording other Councils and other bodies within the Ombudsman’s jurisdiction, opportunities to learn from the findings.

Councillor Leech queried whether all Ombudsman enquiries translated into actual investigations and expressed concern that some Directorates were not completing learning action pints within agreed timescales.

Decision

The Executive:-

(1)       Note the Council’s performance for 2023/24 in the management of Local Government and Social Care Ombudsman (Ombudsman) enquiries.

(2)       Note the Ombudsman’s published ‘Public Interest Report’ on a case concerning a homelessness case handled by the Council in 2023/24, the Council’s initial response to this and agreed actions

Report of the Strategic Director (Neighbourhoods) attached

The Executive considered a report of the Strategic Director (Neighbourhoods), which sought approval of an updated Corporate Enforcement Policy following review undertaken with Legal Services.

The Executive Member for Vibrant Neighbourhoods advised that the Council’s Corporate Enforcement Policy was approved and adopted on 1 April 2015.  The policy was intended to protect the public, the environment, consumers and workers through:

·            enforcing the law in a fair, equitable and consistent manner

·            assisting broadly compliant businesses to meet their legal obligations

·            taking firm action against those who flout the law or act irresponsibly.

The policy applied to all services with enforcement duties although some services had specific legislative guidance and regulations which set out the enforcement requirements in these services.

The review of the policy involved a consultation with services across the council that used enforcement powers including Compliance, Enforcement and Community Safety, Licensing, Legal Services, Housing Services.

Councillor Leech welcomed the proposal to keep complainants informed about the progress of any investigation as far as their involvement in the process was concerned.

Decision

The Executive recommend that Council approve the updated Corporate Enforcement Policy

Report of the Strategic Director (Growth and Development) attached

The Executive considered a report of the Strategic Director (Growth and Development) which provided information about a public consultation by Network Rail on a planned scheme for remodelling Manchester Oxford Road Station to improve capacity, efficiency and accessibility. It outlined the scheme’s proposals and anticipated benefits, along with some of the Council’s current concerns. The report also set out the key issues proposed to be included in the consultation response from the Council.

The Leader advised that on 20 January 2025, Network Rail launched a public consultation on proposals to enhance Manchester Oxford Road Station's capacity and improve operational efficiency. The proposed remodelling of the station included reconfiguring the platform layout to accommodate longer trains, improving track and signalling systems, and constructing a new footbridge with lifts to provide step-free access within the station for passengers to all platforms.

To deliver these improvements, the scheme would require a Transport and Works Act Order (TWAO) to authorise the necessary land acquisitions, construction works, and modifications to existing infrastructure. Listed Building Consent and other planning consents would also be required.  Network Rail were currently holding a first round of full public engagement and consultation on the scheme and feedback from this consultation would shape the scheme’s final design. The TWAO application was scheduled for submission in Summer 2026.

The Council strongly supported the principle of investing in the station to improve its capacity, efficiency and accessibility for all passengers, which would benefit residents, businesses and visitors to the city.  Whilst this investment would be significant and welcome, the Council had concerns with the current design and potential construction impacts, which included:-

·            Passenger Disruption

·            Highway and Construction Traffic Impacts

·            Local businesses and Cultural Venues

·            Local Residents and Occupiers

·            Regeneration Implications

It was also noted that the current proposals would create three platforms that were fully accessible from within the station, which whilst positive would

not make the station fully accessible from the street, and the Council believed

there may be feasible options to deliver a fully accessible underpass solution

through existing arches into the station to deliver street to seat access.

As such the Council intended to work closely with Network Rail, and other key partners, to positively resolve these concerns with the current design, as set out above, through further scheme development and design refinement.

Councillor Leech queried why the proposal was to reduce the current number of platforms down from five to three.

Councillor Wiest sought clarification as to what options were being explored in regards to accessibility

Decisions

The Executive:-

(1)       Note the details of Network Rail’s consultation on the Oxford Road remodelling scheme

(2)       Note the key issues proposed to be covered in the Council’s response to the consultation; and

(3)       Delegate authority to the Strategic Director (Growth and Development) to finalise a consultation response to Network Rail in liaison with the Leader of the Council and the Executive Member for Clean Air, Environment and Transport.

Report of the Strategic Director (Growth and Development) attached

The Executive considered a report of the Strategic Director (Growth and Development) which sought endorsement of  the proposed Chorlton Local Infrastructure Framework and Public Realm Plan

The Leader advised that Chorlton was one of the city’s most popular and successful district centres, with a strong retail and food and beverage offer, and an active and engaged local community and business base.

The area in and around the district centre had consequently seen strong demand for housing in recent years, with a significant pipeline of residential and mixed-use development now in the process of being delivered.  The increase in population, and that anticipated as a result of future growth, had

generated concerns about additional pressure being placed on ‘local infrastructure’, including public realm as well as public services.

In response to this, the Council had commissioned a ‘Local Infrastructure Framework’ (LIF).  The LIF assessed the current position with regards to public realm, schools and health, and identified what interventions or investment might be required. This framework was produced by a multidisciplinary team including landscape architects and highways engineers, working in consultation with officers from across a number of Council services. The health elements of the framework were reviewed in dialogue with colleagues from the NHS, whilst Children and Education Services advised on the position around school places

It was noted that the Chorlton LIF supported and promoted improvements to the public realm and public services, helping to sustain Chorlton as an attractive and vibrant district centre, and generating additional visits and footfall to the benefit of local businesses. The new and improved public realm proposed for Chorlton district centre would be designed and built with the needs of all residents in mind, including those with challenges around mobility.

Councillor Benham (Chorlton Ward Councillor) addressed the Committee and welcomed the proposals contained within the LIF. He also thanked officers for their engagement with local residents, businesses and ward Councillors and the work that had been undertaken to date.

Councillor Leech queried why the LIF had not been implemented prior to the reductions in disabled and on-street parking provision that had already been made within the Chorlton area.

Decisions

The Executive:-

(1)       Endorse the Chorlton Local Infrastructure Framework and the Public Realm Plan allowing it to become a material consideration in the Council’s decision-making role as Local Planning Authority.

(2)       Note the public consultation undertaken, the positive response from residents to the public realm proposals, and the changes made to the proposals in response to the comments received.

(3)       Note that officers will continue to engage with relevant bodies to identify funding opportunities that will enable the delivery of new and improved public realm, and similarly engage with private developers, businesses and community groups who can also contribute to improving the streets and spaces of Chorlton.

(4)       Note the position set out in the LIF regarding education and health provision in Chorlton, and that officers will continue to engage with colleagues from across the NHS to secure improvements to primary care provision in  ...  view the full minutes text for item 30.