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 required Council approval were those which were funded by the use of reserves above a cumulative total of £10 million, where the use of borrowing was required or a virement exceeded £1m. These included the following proposed changes:-

·                ICT – End User Experience Additional Funding. . A capital budget increase of £0.326m was requested, funded by £0.185m Borrowing and £0.141m virement from ICT Investment Plan to cover the increased demand for in areas such as front of house and business support teams where it was not appropriate to share a laptop

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 – Schools Maintenance 2023/24.  A capital budget increase of £2.323m in 2023/24 was requested, funded by Government Grantto address condition needs identified in the Council’s estate of maintained schools which included community, voluntary controlled and foundation schools.

·                Public Sector Housing – Homes as Energy Systems.  A capital budget increase of £1.102m in 2023/24 was requested, funded by Government Grantto install low carbon measures such as Solar PV panels,battery capacity and air source heat pumps in over 700 homes in total across Greater Manchester.

·                Highways Services – Levenshulme and Burnage Active Neighbourhood.  A capital budget virement of £0.530m was requested, funded by Borrowing to extend the provision of  a range of safety features such as signalised crossing, zebra crossings, traffic calming and improvements to street lighting to encourage walking and cycling to areas of Burnage as well as Levenshulme.

·                ICT – Housing Case Management System Feasibility.  A capital budget decrease of £0.119m was requested and approval of a corresponding transfer of £0.119m to the revenue budget, to allow the feasibility study to take place, funded by Capital Fund.

·                ICT – Market Feasibility.  A capital budget decrease of £0.077m was requested and approval of a corresponding transfer of £0.077m to the revenue budget, funded by Capital Fund, to rationalise other Markets systems into one enterprise class solution.

·                Public Sector Housing – Social Housing Decarbonisation.  A capital budget increase of £7.539m in 2023/24 and £5.026m in 2024/25 was requested, funded by £11.206m Social Housing Decarbonisation Grant and £0.963m RCCO from HRA revenue resources, to deliver a programme of decarbonisation works to Manchester’s council housing.

The report highlighted that there had been increases to the programme totalling £1.359m as a result of delegated approvals since the previous report to the Executive on 18 January 2023.

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

·                Acquisition of Unit 1 Naval Street for £0.525m from the Strategic Acquisitions budget.  The unit formed part of a wider plot known as Plot A which, when assembled, will become a developable site at the gateway of ‘Ancoats Phase 3’. 

·                An allocation from the Parks Development Programme of £0.079m for Heaton Park Overflow Car Park.  The request would progress the scheme design to RIBA Stage 2.

·                Social Housing Decarbonisation Fund SHDF Mobilisation utilising £0.400m of budgets already approved for Housing Operations projects,  This would l enable the service to undertake and procure Retrofit Co-ordination (RC) and Retrofit Assessment (RA) and related activity across all or a proportion of six of seven  projects already included in the capital programme

If the recommendations in the report were approved the General Fund capital budget would increase by £15.979m across financial years which would also result in an increase in the prudential indicator for Capital Expenditure in corresponding years.

Decisions

The Executive:-

(1)      Recommend that Council approve the following changes to Manchester City Council’s capital programme:-

·                ICT – End User Experience Additional Funding. A capital budget increase of £0.326m funded by £0.185m Borrowing and £0.141m virement from ICT Investment Plan.

(2)      Under powers delegated to the Executive, to approve the following changes to

the Council’s capital programme

·                Children’s Services – Schools Maintenance 2023/24. A capital budget increase of £2.323m, funded by Government Grant.

·                Public Sector Housing – Homes as Energy Systems. A capital budget increase of £1.102m, funded by Government Grant.

·                Highways Services – Levenshulme and Burnage Active Neighbourhood. A capital budget virement of £0.530m, funded by Borrowing.

·                ICT – Housing Case Management System Feasibility. A capital budget decrease of £0.119m  and approval of a corresponding transfer of £0.119m to the revenue budget, funded by Capital Fund.

·                ICT – Market Feasibility. A capital budget decrease of £0.077m and approval of a corresponding transfer of £0.077m to the revenue budget, funded by Capital Fund.

·                Public Sector Housing – Social Housing Decarbonisation. A capital budget increase of £12.565m, funded by £11.602m Social Housing Decarbonisation Grant and £0.963m RCCO from HRA revenue resources.

(3)      Notes the increases to the programme of £1.359m as a result of delegated approvals.

(4)      Notes the virements in the programme of £1.004m as a result of virements from approved budgets.