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 the of the capital outturn position for 2020/21 including total expenditure and funding.  The repot confirmed that funding sources had been managed to best utilise resources available to fund the capital programme.  A revised capital programme for the 2021/22 financial year after taking into account the final outturn position was also reported.

The main changes to the programme since the report to Executive in February 2021 were as follows:-

·                Highways – £1.4m to be moved into 2021/22 to be used against the future programme due to evening and weekend work not required due to the quiet road network;

·                Neighbourhoods – £5.1m to be reprofiled into next financial year for the delivery of six Electric Refuse Collection vehicles;

·                Strategic Development – £6.7m into future years reprofiled into future years  due to negotiations on the finer details of certain clauses within the Northern Gateway project taking longer than anticipated;

·                Our Town Hall Project – £4.6m to be reprofiled into next financial year due to unspent contingency in 2020/21 and a number of work packages starting on site later than originally anticipated;

·                Public Sector Housing - £1.5m across the Northwards Programme to be accelerated into 2020-21 due to better progress being achieved than originally anticipated; and

·                SEN programme – £1.5m to be reprofiled into next financial year due to the contractor for the Roundwood Road project overestimating their spend profile in the early stages of the works and setbacks due to COVID19.

The final spend position for the Capital Programme in 2020/21 was £335.7m compared to a revised budget of £373.3m. 

The Deputy Leader (Finance) commented that whilst the outturn position for the 2020/21 financial year was relatively high when compared to the average outturn of £266m over the past three years, this represented the continued significant investment in Manchester with over 220 live projects progressing during the year, a major achievement given the impact of the pandemic.

The Deputy Leader (Finance) also commented on the focus within every capital programme project on social value and delivering benefits for Manchester people, in terms of job creation, apprenticeship opportunities and provision of affordable homes.

The Deputy Chief Executive and City Treasurer supported the comments made by the Deputy Leader (Finance) and highlighted the ambitious capital programme for 2021/22 with a proposed budget of approximately £480m.

Decisions

The Executive:-

(1)          Recommend that the Council approve the virements over £0.5m between capital schemes to maximise use of funding resources available to the City Council set out in Appendix B.

(2)       Note the outturn of capital expenditure 2020/21 was £335.7m.

(3)       Note the changes to the outturn attributable to movement in the programme that occurred after the previous monitoring report to Executive in February 2021.

(4)       Approve virements under £0.5m within the capital programme as outlined in Appendix B.

(5)       Note the decisions of the Deputy Chief Executive and City Treasurer regarding the funding of capital expenditure in 2020/21 including the use of £98.8m Grants and Contributions, £21.4m Capital receipts, £34.7m Revenue funding and £180.8m borrowing.

(6)       Note the revised capital programme for 2021/22 shown in Section 9 and Appendix D.