Report of the Deputy Chief Executive and City Treasurer and City Solicitor attached

The report of the Deputy Chief Executive and City Treasurer and City Solicitor explained how the budget proposals for the Directorate had been developed.

The 2021/22 budget process saw the Council develop savings and efficiency plans of over £48m over the three years to 2023/24.  This included budget cuts of £7.187m in the Corporate Core with £6.635m to be delivered in 2021/22 and the remaining £1.153m in 2022/23.

In addition to the £1.153m already approved savings, the report detailed further proposed changes to the 2022/23 budget, which resulted in a total saving for the Corporate Core of £1.636m.

In addition to the Corporate Core, the report provided details of budget proposals in regards to both Operational Property and Facilities Management Service that transferred in from the Growth and Development Directorate during 2021/22..  As part of the £48m savings over the three years 2021/22 - 2023/24, £5.935m related to Commercial and Operations activities, with £5.76m included as part of the 2021/22 budget.  Due to the majority of these being through traded services, there had been adverse implications from COVID, and the following savings have not been achieved in 2021/22: -

·                £4.1m income form car parks due to ongoing restrictions and reduced numbers of individuals working in the City Centre; and

·                £225k advertising income from the proposed screen in Piccadilly Garden.

As part of the 2021/22 budget, additional support was provided to allow for reduced income due to COVID. Operations and Commissioning received one off budget support of £3.136m to support the reduction in car parking income This was one off support in 2021/22 and has been removed in 2022/23.

It was also reported that to support the opening of The Factory the following agreements are being put in place between the operator, MIF, and the Council

·                a ten-year funding agreement which started in 2020/21 for £1.5m per annum incorporating the funding support that was previously provided to MIF;

·                a grant agreement, to be met from the Council’s existing MIF reserve (and reimbursed when fund raising was received) to assist the Factory Trust with its fundraising costs; and

·                the establishment of a sinking fund with each partner making an annual contribution of £252k per annum in relation to the lease, with the Council acting as corporate landlord

It was noted that the report had also been considered at a recent meeting of the Resources and Governance Scrutiny Committee where the committee had endorsed the budget proposals (Minute RGSC/22/08)

Decisions

The Executive:-

(1)      Approve the budget proposals as detailed in the report.

(2)      Note the development of the funding agreement between the Council and MIFas set out in Appendix 1.

(3)      Support the initial underwriting of the Factory Trust fundraising costs by way of a grant agreement, to be met from the Council’s existing MIF reserve and reimbursed when fund raising is received, and delegate to the Deputy Chief Executive and City Treasurer and City Solicitor to finalise the grant agreement, including any conditions for drawdown and repayment.

(4)      Approve lease arrangements to the MIF with delegation to finalise the details to the Deputy Chief Executive and City Treasurer and City Solicitor.

(5)      Agree to continue the support to families to provide free school meals for the 2022 Easter Holiday at £15 per pupil per week. funded in line with the arrangements set out in Appendix 1 of the report.

(6)      Note the Chancellors announcement on the proposal for a £150 council tax rebate for all band A-D properties

(7)      Delegate to the Deputy Chief Executive and City Treasurer in consultation with the Leader of the Council the finalising the detail of the administration of the council tax ‘rebate’ £150 payment.

(8)      Delegate to the Deputy Chief Executive and City Treasurer in consultation with the Leader of the Council responsibility for designing and implementing the discretionary support scheme.