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 £0.5m. These included the following proposed changes:-

·                Children’s Services – Manchester Creative Media Arts Academy Completion Works.  A capital budget increase of £0.661m was requested, funded by borrowing for completion of the outstanding works; and

·                Growth and Development – Manchester Equipment and Adaptations Partnership (MEAP) Relocation.  A capital budget virement of £2.025m was requested, funded by the Asset Management Programme budget for the service to consolidate their operation from Poland Street, Tulketh Street and Fulmead, providing them with a fit for purpose operational property and the space for a Smart House which was pivotal to the Prevention and Early Intervention Agenda.

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:-

·                Private Sector Housing – Rough Sleepers Accommodation Programme (RSAP) Property Acquisitions.  A capital budget increase of £3m was requested, funded by £1.350m Government Grant and £1.650m Capital receipts to acquire 20 x 1bed flats to support 20 rough sleepers and people living in emergency accommodation to move-on to new homes;

The report highlighted that there had been increases to the programme totalling £0.320m as a result of delegated approvals since the previous report to the Executive on 28 July 2021 and if the recommendations in the report were approved, the General Fund capital budget would increase by £3.661m across financial years which would also result in an increase in the prudential indicator for Capital Expenditure in corresponding years.

Approval had also been given for a capital budget virement from the Parks Development Programme budget totalling £0.960m for the Parks In Partnership Scheme. This project would carry out improvement works to Manchester’s parks and green spaces, across 32 wards, that raised standards and sustainability within parks, whilst widening participation, access and inclusivity

It was also reported that detailed designs for the Public Sector Decarbonisation Scheme (PSDS) funded works were currently being developed. Early indications were that the programme would come in underbudget although the final position would not be confirmed until designs were completed and cost plans wee finalised in late September 2021.  In anticipation of an underspend on the PSDS budget, the programme had been working on a pipeline of additional projects that could delivered rather than returning funds unspent.  The programme was requesting approval to commission up to £2m of additional energy efficiency works, to be funded by prudential borrowing from the approved Carbon Reduction Programme budget in the event PSDS underspend was not available or approved. This approval would be an early draw down against the previously budgeted £15m for energy efficiency works between 2022 and 2025.

Decisions

The Executive:-

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

·                Children’s Services - Manchester Creative Media Arts Academy Completion Works. A capital budget increase of £0.661m is requested, funded by Borrowing.

·                Growth and Development - Manchester Equipment and Adaptations Partnership (MEAP) Relocation. A capital budget virement of £2.025m is requested, funded by the Asset Management Programme budget.

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

·                Private Sector Housing – Rough Sleepers Accommodation Programme (RSAP) Property Acquisitions. A capital budget increase of £3m is requested, funded by £1.350m Government Grant and £1.650m Capital receipts

(3)      Notes the update on Public Sector Decarbonisation Scheme additional works and approve the funding strategy.

(4)      Notes the increases to the programme of £0.320m as a result of delegated approvals.

(5)      Notes the virements in the programme of £0.960m as a result of virements from approved budgets.