Issue - meetings

To consider a report of the Leader of the Council

The report provides an update on the Council’s Reserves Policy following the reporting of the Council’s 2017/18 outturn position and the recommended annual review of the Reserves Policy.

The updated Reserves Policy set out the identified priority areas where reserves are considered to be needed in order to align them to the Council’s corporate and strategic objectives over the period of the Medium Term Financial Plan. It also recommends the level at which the reserves need to be held including the replenishment of some reserves using the reported 2017/18 outturn surplus.

The Council’s proposed 2018/19 Reserves Policy is included at Appendix 1 to the report.

The Cabinet is recommended to:-

·         note the annual review of the Council’s Reserves Policy including the level and rationale for the reserves held;

·         approve the allocation of the Council’s 2017/18 outturn surplus;

·         approve the reclassification of the earmarked reserves held in line with the recommended amounts to be held; and

·         approve the proposed 2018/19 Reserves Policy.

Officer Contact: Jonathan Davies on 0161 218 1025 or email: jonathan.davies@stockport.gov.uk

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of which had been circulated) updating the Cabinet on the Council’s Reserves Policy following reporting of the Council’s 2017/18 outturn position and the completion of the Annual Review of the Policy.

The Leader of the Council reported that the reserves position was broadly in line with the previous year, although the continued high demand for services was putting pressure on reserves. The non-cash limit underspend from 2017/18 would be put into reserves to help the Council deliver on its strategic objectives and to respond to demographic and demand pressures.

The Leader stated that in response to suggestions from the Corporate, Resource Management & Governance Scrutiny Committee future reports would include benchmarking data against comparable local authorities and others in Greater Manchester.

RESOLVED – That in relation to the 2018/19 Reserves Policy:-

•     the annual review of Council’s Reserves Policy including the level and rationale for the reserves held be noted;

•     the allocation of the Council’s 2017/18 outturn surplus be approved;

•     the reclassification of the earmarked reserves held in line with the recommended amounts to be held be approved; and

•     the proposed 2018/19 Reserves Policy be approved.

To consider a report of the Leader of the Council

The purpose of the report is to provide report the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2017/18 outturn position.

The Scrutiny Committee is invited to comment on the report.

Officer contact: Jonathan Davies, 0161 218 1025, jonathan.davies@stockport.gov.uk

The Leader of the Council submitted a report (copies of which had been circulated) providing an update on the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2017/2018 outturn position.

The following comments were made/issues raised:-

·         The Committee discussed in detail the rationale and need for the Airport Reserve and the process for the awarding of dividend payments by the Manchester Airport Group to shareholders.

·         Councillors noted that during 2017/18, £13.380m of reserves had been approved to be used to support services and fund revenue and capital projects and that £10.939m of earmarked reserves had been approved to be used to support the Council’s 2018/19 budget. It was further noted that a return of 2:1 to 3:1 was expected from the use of these reserves.

·         The Committee discussed the levels of overspend associated with the Children’s and Adult Services budgets and the associated demand and inflationary pressures associated with those service areas. Councillors were assured by the Borough Treasurer that work was ongoing with Heads of Service to identify ways to manage costs down on a permanent basis.

RESOLVED – That the report be noted.