Report of the Deputy Chief Executive and City Treasurer attached

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which informed Members of requests to increase the capital programme, sought approval for those schemes that could be approved under authority delegated to the Executive.

The proposals which only required Executive approval were those which were funded by the use of external resources, use of capital receipts, use of reserves below £10.0m, where the proposal could be funded from existing revenue budgets or where the use of borrowing on a spend to save basis is required.  The following proposals required Executive approval for changes to the City Council’s capital programme:-

·                     Children’s Services - New Secondary SEND School.  A capital budget virement of £18.1m was requested, funded from Unallocated Special Educational Needs Grant to develop a new 150 place secondary SEND school for pupils aged 11-19 with an Education, Health, and Care Plan (EHCP) in north Manchester.

·                     Highways Services – Rochdale Canal.  A capital budget virement of £0.230m in 2022/23 was requested, funded from borrowing to deliver improvements to the towpath in Newton Heath and Miles Platting, which would include patching and resurfacing to the towpath, repairs to the cobbled areas, new marker posts to indicate distances and new signage at accesses and exits to advertise local amenities.

·                     Highways Services – Safer Streets Manchester Cycleway.  A capital budget increase of £0.030m in 2022/23 and £0.293m in 2023/24 was requested, funded by External Contribution – Safer Streets Fund, alongside a capital budget virement of £0.220m in 2022/23, funded by borrowing via the Highways Project Delivery Fund, to deliver a number of improvements including landscaping, removal, and addition of new barriers, new access points and signage on the Manchester Cycleway (Fallowfield loop and Yellow Brick Road) to help improve safety and perception of safety along the route.

·                     ICT – Contract Management.  A capital budget decrease of £0.109m was requested and approval of a corresponding transfer of £0.109m to the revenue budget, funded by Capital Fund.to introduce an ICT system for managing contracts across the whole Council, providing numerous benefits, including a central repository of all contract information, enabling recording of risks and issues, and contract management and performance information to be recorded.

The report highlighted that there had  been increases to the programme totalling £4.002m as a result of delegated approvals since the previous report to the Executive on 14 December 2022.

Approval had also been given for the following capital budget virements:-

·                     £0.490m for the installation of Carbon Monoxide Monitors in council properties to comply with the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022, through the utilisation of Unallocated Public Sector Housing budget.

·                     £0.026m allocation from the Parks Development Programme for the predevelopment stage to commission the Capital Programmes and Procurement Team to progress scheme design to RIBA Stage 2 for the Heaton Park Orangery

·                     £0.110m funding for Cringle Park – Grounded Coffee Offer to improve the existing offer in the park

·                     £0.700m allocation from Education Basic Need funding of to provide additional funding to Our Lady's RC High School and Manchester Enterprise Academy to deliver additional school places

If the recommendations in the report were approved the General Fund capital budget would increase by £0.214m across financial years which would also result in an increase in the prudential indicator for Capital Expenditure in corresponding years.

Councillor Leech sought an assurance that the proposed budget for the new Secondary SEND School had taken account of any potential inflationary costs so to avoid the need to seek further funding at a future point.

Councillor Johnson sought assurance that the consideration of carbon reduction was taken into account with any ICT projects.

The Deputy Chief Executive commented that there was a substantial allowance for inflation and contingency associated with the new Secondary SEND School budget, but noted that this was currently at Checkpoint 2 and costs would be fully scrutinised and updated for checkpoint 4 and that all ICT projects took account of how they could contribute to carbon reductions..

Decisions

The Executive:-

(1)          Approve the following changes to the Council’s capital programme:

·                Children’s Services - New Secondary Special Educational Needs and Disabilities (SEND) School – Varley Street. A capital budget virement of £18.1m, funded from Unallocated Special Educational Needs Grant.

·                Highways Services – Rochdale Canal. A capital budget virement of £0.230m funded from borrowing.

·                Highways Services – Safer Streets – Manchester Cycleway. A capital budget increase of £0.323m, funded by External Contribution and a capital budget virement of £0.220m, funded by borrowing via the Highways Project Delivery Fund.

·                ICT – Contract Management. A capital budget decrease of £0.109m  and a corresponding transfer of £0.109m to the revenue budget, funded by Capital Fund.

(2)          Note the increases to the programme of £4.002m as a result of delegated approvals and the virements in the programme of £1.326m as a result of virements from approved budgets