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 2022/23 budget process saw the Council develop savings and efficiency plans of over £42.3m over the three years to 2025/26 of which there were savings options of £2.398m for the Growth and Development directorate.  The provisional financial settlement announced on19 December 2022 reflected a change in government policy in relation to funding inflation and social care pressures. This had given the opportunity to review the quantum and phasing of savings and it was now proposed that options of £36.2m were progressed, of which £2.169m were attributable to this Directorate.

The Growth and Development Directorate had a gross budget of £36.114m, generates income of £44.886m resulting in a net income budget of £8.772m, and employs 409 FTEs.  In addition, Highways service had a gross budget of £27,959m and a net budget of £20.835m with 243 FTE.

The Directorate received a proportion of annual rental income from Manchester Airport Group.  Based on estimates provided by the Airport, additional income of £1.615m income had been built into the budget over the next three-year period. Achievement of this income was dependent on performance being in line with or better than the forecasts provided.

A review of the funding arrangements for staff had identified opportunities to capitalise staffing costs, the initial proposal was £250k per annum, but following the review of all options this had been reduced by £100k to £150k. This review had taken into consideration the most appropriate source of funding given the activities of staff.

The proposed sale of an asset in Wythenshawe would result in a capital receipt, there was currently a budget of £170k in respect of the internal loan used to fund the acquisition of the building.  Once the site was disposed of the outstanding borrowing would be settled and there will be a saving of £170k per annum.

In respect of Strategic Housing, the deletion of a vacant grade 4 post would result in a £9k saving to the General Fund, with the balance of the saving being reflected in the Housing Revenue Account.

Highway Services initial saving proposals were £354k over three years but following review the total savings proposals had reduced by £129k to a revised total of £225k.  The revised proposals were made up of a combination of increased   income (£160k) and deleting two vacant positions (£60k)

It was also proposed to invest £300k to provide additional resources to enable capacity to support the establishment of a new team within City Centre Growth and Infrastructure, and to provide additional capacity to the Highways Development Specialist team.

It was noted that the budget report had also been considered at a recent meeting of the Economy Scrutiny Committee and the committee had endorsed the proposals in the report (Minute ESC/23/12).

Councillor Leech questioned whether the proposed deletion of a post within Highways Services that would realise £60k savings would make any difference given the increase in claims to the Council against trips and falls

Decision

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