Report of the Deputy Chief Executive and City Treasurer

This report updates on the main announcements from the Spending Review 27 October 2021 with a focus on the thematic areas relevant to Economy Scrutiny and the impact of the budget on Manchester.

The Committee considered the report of the Deputy Chief Executive and City Treasurer that provided an update on the main announcements from the Spending Review of the 27 October 2021 with a focus on the thematic areas relevant to Economy Scrutiny and the impact of the budget on Manchester. The report also provided an update on key funding programmes announced by government and the action Manchester is taking to access this funding.

Key points and themes in the report included:

·                An overview of the Local Government Finance Announcements;

·                Announcements impacting household incomes;

·                Funding announcements which benefited Manchester;

·                Implications for Employment and Skills;

·                Implications for welfare benefits and unemployment;

·                Implications for Housing, Transport, Culture, Climate and Net Zero and Innovation and Connectivity; and

·                Other relevant announcements.

Some of the key points that arose from the Committee’s discussions were: -

·                Whilst welcoming the increase in spend in tackling homelessness and rough sleeping, what was being done to reduce the numbers of people afflicted;

·                The increase in work and skills funding would not match the level of cuts that had occurred in the last ten years;

·                What would be the impact of the slow progress of the new Apprenticeship Programme on residents who need to upskill;

·                Was there any indication why the Levelling Up bid for Withington Village was unsuccessful;

·                More information was needed on the Growth Company’s Good Jobs project in North Manchester; and

·                What was the Council doing to lobby government for a fair finance settlement.

The Committee was advised that the Council was waiting for a meeting with the Department for Levelling Up, Housing and Communities to discuss why the bid for Withington Village was unsuccessful.

The Director of Inclusive Economy acknowledged that the increase in funding for work and skills did not match the level of funding that had previously been cut and as the budget for Adult Skills was a stationary budget this would be impacted by inflationary pressures on salaries and pensions.  In terms of apprenticeships, the take up in Manchester had never been high and had dipped particularly for younger people and with other routes into employment and the volatility in the labor market, the attraction of apprenticeships and apprenticeship wages was not particularly attractive.  The Council was still working on promoting apprenticeships as good routes into employment and job opportunities.  She also provided a brief update on the Growth Company’s Good Jobs project and suggested that the Committee may want to consider a more detailed report on this in the future.

The Strategy and Economic Policy Manager advised that in terms of homelessness, there had been a national increase in the spend to tackle this and it would need to be seen as to how this filtered down to local levels before more detail could be given.  The Leader commented that the increase in government funding would not address the situation in Manchester and the Council would still need to supplement this through its general revenue budget.  The Executive Member for Housing and Employment commented that the money allocated to the development of brownfield sites, which the Council could bid for, was welcomed and would contribute to affordable housing on brownfield site. He also welcomed the investment being made in North Manchester.

The Leader advised that the Council had had a consistent approach on what local government should be funded for and how it should be funded. The move to more competitive small pots of funding did not help any local authority and Manchester would continue to make the case for an appropriate base line budget.  Whilst Manchester budget position for 2022/23 looked to be positive when compared to elsewhere, this had been achievable due to decisive action taken in previous years and the financial situation for future years was precarious as one off additional funding stopped.

Decisions

The Committee:-

(1)       Notes the report.

(2)       Request that a briefing note be sent to the Committee and all North Manchester Ward Councillors on the Growth Company’s Good Jobs project.