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:-

·                Public Sector Housing – Social Housing Decarbonisation Boiler Replacement.  A capital budget increase of £2.550m in 2023/24 and £11.545m in 2024/25 was requested, funded by HRA Reserve, to enable the Council to move from gas to renewable forms of heating for properties which would come up for replacement within the next two years as well as bring forward other properties.

·                Public Sector Housing – Operational Housing Programme 2023-24.  A capital budget increase of £8.646m in 2023/24, £7.155m in 2024/25 and £0.968m in 2025/26 was requested, funded by HRA Reserve, for the continuation of essential health and safety work, security improvements and environmental improvements across the Council’s Housing estate.

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:-

·                Private Sector housing – Home Upgrade Grant (HUG) 2.  A capital budget increase of £4m in 2023/24 and £6m in 2024/25 was requested, funded by Government Grant, to provide energy efficiency and clean heating upgrades to improve energy performance for owner occupied and private rented sector off gas grid (no have mains gas for heating) and low energy performance (EPC D-G) properties occupied by fuel poor households.

·                Growth and Development - Back of Ancoats Mobility Hub (AMH) & Public Realm.  A capital budget increase of up to £2.3m in 2023/24 was requested, funded by Capital Receipts, to provide the essential changes required to the Ancoats Mobility Hub to ensure the full scheme could be delivered, without impacting on the delivery of the wider public realm project.

The report highlighted that there had  been increases to the programme totalling £2.325m as a result of delegated approvals since the previous report to the Executive on 22 March 2023.

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

·                £0.057m to be allocated from Highways Patching budgets for additional repaving works outside Sinclair's Oyster Bar, adjacent to Exchange Square, following the re-paving of the main square of Exchange Square in  2022.

·                £0.121m allocation from the Parks Development Programme for city wide tennis improvements

·                £0.108m allocation from the Parks Development Programme for the Wythenshawe Cycling Hub to improve the visitor experience, visitor safety, encourage a longer dwell time, and improve access to park facilities

If the recommendations in the report were approved the General Fund capital budget would increase by £43.164 m 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 the Council approve the following changes to Manchester City Council’s capital programme:

·                Public Sector Housing – Social Housing Decarbonisation Boiler Replacement. A capital budget increase of £14.095m, funded by HRA Reserve.

·                Public Sector Housing – Operational Housing Programme 2023-24. A capital budget increase of £16.769m, funded by HRA Reserve.

(2)       Under powers delegated to the Executive, approve the following changes to the Council’s capital programme:

·                Private Sector Housing – Home Upgrade Grant (HUG) 2. A capital budget increase of £10.0m, funded by Government Grant.

·                Growth and Development - Back of Ancoats Mobility Hub & Public Realm. A capital budget increase of up to £2.3m, funded by Capital Receipts.

(3)       Note the increases to the programme of £2.325m as a result of delegated approvals.

(4)       Note the virements in the programme of £0.286m as a result of virements from approved budgets