The report of the Deputy Chief Executive and City Treasurer is enclosed.

A report was submitted to provide a summary of the position of the 2019/20 revenue budget as at the end of October 2019. The report gave details of the projected variances to budgets and the state of the Council’s contingency funds. Projecting forward from the position at the end of October 2019 it was forecast that by the year-end in March 2020 the revenue budget would be overspent by £4.169m, an improved position on the £6.027m overspend that had been predicted at the meeting in October (Minute Exe/19/85). The report explained that the overspend was still mainly arising from service pressures on the adult social care budgets and Children’s’ Services.

Budgets to be Allocated

When setting the 2019/20 budget the Council has agreed to hold some funds for contingencies, and other money that was to be allocated throughout the year. The report proposed the use of some of these budgets to be allocated. These were agreed:

·         £71k in 2019/20 and £150k from 2020/21 for increase in Pathology Testing costs as the Manchester City Pathologist fees had now increased to £200 per examination.

·         £0.5m from corporate budgets (waste contingency) to be allocated to Neighbourhoods Directorate to reflect an adjustment to the waste income target following a decrease in the amount of Trade Waste.

·         £250k from corporate budgets (waste contingency) to be allocated to Neighbourhoods Directorate to reflect savings made on the waste levy.

·         £368k from Budgets to be Allocated, initially earmarked for increases to the Climate Change Levy rate, as the anticipated additional levy costs had been absorbed within electricity budgets so allowing this to be redirected to the cross cutting commissioning savings target.

·         £183k from Contingency to fund dilapidation works for Early Years centres for a condition survey of all Manchester owned day-care buildings.

·         £100K for the costs of provisions for school meals as they had been subject to a higher than inflationary increase of c4%.

Use of Reserves

The report also addressed the use of the Council’s reserves. A new draw-down from reserves had been requested. This was approved.

·         Highway line marking - £100k in 2019/20 and £100k in 2020/21 from the on-street parking reserve to refresh approximately 6.5km of line markings on key routes across the city.

Proposed Virements

The report proposed two funding virements which were both agreed.

·         £343k from non-pay to pay within the Highways Service to maintain Highway structures to allow patching and drainage work to be more programmed than reactive.

·         £303k from non-pay to pay within the Highways Service to help manage and co-ordinate an increasing number of highways schemes and to recruit a small number of additional Network Co-ordination Officers.

Use of Additional Grants

The report also explained that notification had been received in relation to a specific external grant, the use of which had not confirmed as part of the 2019/20 budget setting process. Approval was given to the use of these funds.

·         £325k from NHS Digital England to develop social care systems to support the discharge from hospitals into care.

Decisions

1.         To note the report.

2.         To approve the use of budgets to be allocated as set out above.

3.         To approve the use of reserves as set out above.

4.         To approve the proposed virements as set out above.

5.         To approve the use of grants as set out above.