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.  The report also sought approval for those schemes that could be approved under authority delegated to the Executive and asked the Executive to recommend to Council proposals that required specific Council approval.

The proposals which required Council approval were those which were funded by the use of reserves above a cumulative total of £2million, where the use of borrowing was required or a virement exceeds £0.500m. These included the  following proposed changes:-

·                Highways Services (Patching Defect Repairs Programme 2021/22) – a capital budget increase of £4.361m in 2021/22 and £0.883m in 2022/23, funded by £0.500m RCCO, £3.744m Grant and a capital budget virement of £1m from the Highways Project Delivery Fund budget;

·                Neighbourhoods (Library Refurbishment) – a capital budget increase of £0.500m in 2021/22 is requested, funded by borrowing;

·                Neighbourhoods (New Islington Marina Bridge Works) – a capital budget increase of £0.156m in 2021/22 is requested, funded by borrowing; and

·                Public Sector Housing (Newton Heath High Rise Blocks Improvements) – a capital budget increase of £0.492m in 2021/22, £9.128m in 2022/23 and £4.493m in 2023/24, funded by an RCCO from the HRA.

The report then went on to detail the proposals that did not require Council approval which were funded by the use of external resources, use of capital receipts, use of reserves below £2million, where the proposal could be funded from existing revenue budgets or where the use of borrowing on a spend to save basis was required.  These included:-

·                Highways Services (Harpurhey and Moston – Junction and Crossings) – .a capital budget increase of £1.170m in 2021/22 and £0.001m in 2022/23 funded by external contribution; and

·                ICT (Future Council Discovery - Infrastructure and Application Hosting) – a capital budget decrease of £0.390m in 2021/22 and a corresponding transfer of £0.390m to the revenue budget, funded by Capital Fund.

The report highlighted that there had  been increases to the programme totalling £0.075m as a result of delegated approvals since the previous report to the Executive on 2 June 2021 and If the recommendations in the report were approved, the General Fund capital budget would increase by £19.794m across financial years. This would also result in an increase in the prudential indicator for Capital Expenditure in corresponding years.

It was also reported that an offer of £2.75m was submitted on an unconditional basis to convert Buglawton Hall, a former residential special school located in Congleton, Cheshire (acquired on 6 December 1950 and held freehold by the Council) back into a single private residence had been received and in the opinion of officers, this represented best consideration under S.123 of the Local Government Act 1972.  It was noted that any proposed disposal of former school playing field land and non-playing field land held by a Local Authority required the consent of the Secretary of State under S.77 of the School Standards and Framework Act 1998 and Part 1 of Schedule 1 of the Academies Act 2010. Therefore, an application for such consent would need to be progressed and successfully obtained prior to exchanging contracts on any disposal.

Decisions

The Executive:-

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

·                Highways Services (Patching Defect Repairs Programme 2021/22) – a capital budget increase of £4.361m in 2021/22 and £0.883m in 2022/23, funded by £0.500m RCCO, £3.744m Grant and a capital budget virement of £1m from the Highways Project Delivery Fund budget;

·                Neighbourhoods (Library Refurbishment) – a capital budget increase of £0.500m in 2021/22 is requested, funded by borrowing;

·                Neighbourhoods (New Islington Marina Bridge Works) – a capital budget increase of £0.156m in 2021/22 is requested, funded by borrowing; and

·                Public Sector Housing (Newton Heath High Rise Blocks Improvements) – a capital budget increase of £0.492m in 2021/22, £9.128m in 2022/23 and £4.493m in 2023/24, funded by an RCCO from the HRA.

(2)       Approves the following changes to the City Council’s capital programme:-

·                Highways Services (Harpurhey and Moston – Junction and Crossings) – .a capital budget increase of £1.170m in 2021/22 and £0.001m in 2022/23 funded by external contribution; and

·                ICT (Future Council Discovery - Infrastructure and Application Hosting) – a capital budget decrease of £0.390m in 2021/22 and a corresponding transfer of £0.390m to the revenue budget, funded by Capital Fund.

(3)       Accept the offer for the disposal of Buglawton Hall, on a without prejudice and subject to contract basis, and subject to successfully obtaining the required consent from the Secretary of State to dispose of former school playing field land and non-playing field land. The disposal would not include the requirement to undertake any schedule of works to facilitate the proposed use.

(4)       Approve the disposal of the freehold interest as the property is located outside of the City and as agreed by the Chief Executive holds no strategic importance to the Council. The proposed use as a single residential dwelling also indicated the Leasehold Reform Act would eventually become applicable, resulting in a freehold disposal in any event.

(5)       Approve the delegation of the necessary authority to the City Solicitor to complete and finalise the contractual documentation regarding the disposal.

(6)       Note increases to the programme of £0.075m as a result of delegated approvals.

(7)       Note virements in the programme of £16.931m as a result of virements from approved budgets.