Decisions

The Cabinet considered an update on the forecasts for the Council’s finances for the period 2019/20 to 2022/23 following the provisional Local Government Finance Settlement announced in December 2018, and agreed that

·         the details of the 2019/20 Provisional Local Government Finance Settlement and its impact on the MTFP forecasts and assumptions set out in the report be noted;

·         the financial forecasts for 2019/20 to 2022/23, and the key issues to be addressed in formulating a response to the financial challenges facing the Council be noted;

·         the indicative budget adjustments set out in the report resulting in available resources of £2.102m in 2019/20 and the revised MTFP be noted and approved;

·         the allocation of corporate contingency budgets as part of the 2019/20 budget setting process be approved;

·         the use of one-off available resources to support the Council’s investment decisions, MTFP and Reserves Policy be supported; and

·         the use of £0.500m of one-off available resources to support the funding of continuing expenditure pressures of Stockport Together new models of care be approved.

The Cabinet considered the first six monthly update on performance against the Greater Manchester Strategy Implementation plan and agreed that

·         the updated Plan and Dashboard be noted and approved

·         overall progress towards the achievement of the Strategy 2020 ambitions and targets, including the specific actions and updates relating to Stockport be noted;

·         the updated process for future iterations of the Implementation Plan and Performance Update being reflected in future Corporate and Portfolio Reports be agreed; and

·         that further consideration be given appropriate mechanisms for sharing relevant data with scrutiny committees.

The Cabinet considered an update on key announcements made by the Department for Education on the education funding settlement for 2019/20 and proposals for the local funding formula models to be used to determine the individual 2019/20 budgets for early years providers and schools in Stockport and agreed that:-

(1) the details of the Education Funding Settlement for 2019/20 be noted.

(2) the construction of the early years budget as per section 4.5 of the report and the updated 2019/20 local funding formula for schools as detailed in the table(s) in section 7.2 be approved to form the basis of the calculation of school budgets and be notified to the Department for Education in accordance with statutory requirements.

The Cabinet considered an update on place-based approach to commissioning, particularly in relation to health and social care, and setting out the Council’s position on a preferred model for a single commissioning function and then agreed that:

·         the potential for a single commissioning function for health and care to enable prevention-focussed, whole population commissioning that would reduce health inequalities, and improve healthy life expectancy and health outcomes for people in Stockport be agreed, and engagement in Cabinet workshops to consider the options and implications of single commissioning on the Council be supported;

·         the position on single commissioning function governance arrangements be agreed, and the Deputy Chief Executive be requested to progress joint working to advance this position, as outlined in the report, in a phased approach, ensuring the Cabinet was updated and ensuring appropriate decision making at critical points;

·         note that these arrangements do not confer on councillors any new or additional responsibilities or duties in respect of the management or governance of health services in Stockport; nor do they infringe in any way on the unity of the National Health Service.

·         current joint commissioning arrangements be reviewed to ensure they were operating as effectively as possible within the agreements in place with partners.

The Cabinet considered the third quarter 2018/19 Corporate Performance and Resources and agreed that:-

·         progress against delivering Council priorities and capital schemes, budget and performance forecasts contained within the report be noted;

·         the virements to the Revenue Budget set out in 2.2.3 of the report be approved;

·         Note the cash limit and non-cash limit forecast positions for 2018/19 as set out in 2.3.1 of the report be noted;

·         the Dedicated Schools Grant and Housing Revenue Account forecast positions as set out in 2.4 and 2.5 of the report be noted;

·         the position on reserves and balances as set out in Appendix 4 of the report be noted;

·         the forecast position for the Collection Fund as set out in 2.6 of the report be noted;

·         the forecast position for the 2018/19 Capital Programme as set out in 3.1 of the report be noted;

·         the re-phasing of capital schemes during the quarter as set out in 3.3 of the report be noted;

·         the proposals for resourcing and additional resources required for the Capital Programme as set out in 3.5 of the report be approved;

·         the 2018/19 Capital prudential indicators and resourcing requirements as set out in 3.6 and 3.7 of the report be approved; and

·         the Treasury Management review and activity in Q3 as set out in section 4 of the report be noted.

The report will seek the approval of capital expenditure for the purpose of an investment into further development at the Airport.

The Cabinet considered proposals for investment in a car parking scheme at Manchester Airport, financed through additional equity investment into Manchester Airport Group, and then agreed that the recommendations contained in the ‘not for publication’ report (‘Part B’) be approved.

The Cabinet further requested the Borough Treasurer to seek further information from the Manchester Airport Group in relation to proposals for ‘future proofing’ this development against changes in vehicle specifications and regulations.

(Note: the report contained information ‘not for publication’ that was circulated to cabinet members only).

The report outlines the latest position with regards to the Cabinet’s response to the financial challenges facing the Council.

The Cabinet considered an update on its Medium Term Financial Strategy and a suite of proposals for 2019/20 and agreed that

(i)        the Cabinet’s position in relation to the MTFP and Budget as set out at Section 2 of the report be noted

(ii)       progress outlined within this report and the considerations outlined in relation to consultation, equality implications and workforce implications as set out in Sections 3 and 4 be noted;

(iii)      approval be given to the implementation of the updated proposals appended to the report as:

·         Proposal.1 - Children’s and Education (Appendix.2)

·         Proposal.4 – Community Safety Services (Appendix.4)

·         Proposal.6 - Support and Governance (Corporate Governance; ASC Support Functions; Library Management Efficiencies) (Appendix 6)

·         Proposal.10 - Asset rationalisation of current buildings and former operational buildings (Appendix.9)

·         Proposal.11 - Additional income from operational buildings (Appendix.9)

·         Proposal.12 - Exit rented accommodation and changes to other leased accommodation commitments (Appendix.9)

·         Proposal.13 - Review and disposal of operational and non-operational land and other assets (Appendix.9)

(iv)      in light of consultation responses, approval be given to the following updated proposals, and additional commitments made:

·         Proposal.3 - Support Funds Coordination (Appendix.3)

-       undertake a broad review and engagement exercise of support and crisis funding during 2019/20 and to resubmit to the Cabinet with a proposed model;

·         Proposal.5 - Stockport Local Transport (Appendix.5)

·         Proposal.7 – Public Realm (Appendix 7)

-       commit to ongoing engagement with key stakeholders

The Cabinet considered the draft 2019/20 Capital Strategy, developed in accordance with the CIPFA Prudential Code, which provided a framework for the Council’s capital investment plans and recommended to the Council Meeting that it approve:-

(i)    Capital Prudential Indicators

·         Capital expenditure forecasts;

·         Capital Financial Requirements projections; and

·         Ratio of financing costs to new revenue stream.

(ii)  The Capital Strategy 2019/20.

The Cabinet considered the proposed 2019/20 Treasury Management Strategy, Annual Investment Strategy, Minimum Revenue Provision Policy and prudent and sustainable Treasury and Prudential Indicators, constructed in compliance with the CIPFA Treasury Management Code of Practice, and recommended to the Council Meeting that it approve:-

·           the Minimum Revenue Provision Policy for 2019/20;

·           the Capital Expenditure Forecasts and Capital Financing Requirement projections;

·           the Treasury Management Strategy 2019/20;

·           the Treasury and Prudential Indicators and Limits 2019/20-2021/22; and

·           the Annual Investment Strategy (AIS) 2019/20.

The Cabinet considered it’s proposed 2019/20 Revenue Budget and Capital Programme investment plans, outlining the Council’s financial outlook and challenges across the medium term period 2019/20 – 2022/23 and recommended to the Council Meeting that it:-

•        approve the Budget for 2019/20 described in the report and set out in Appendix 2 and 3;

•        note the risk assessment of the Budget at Appendix 5 of the report and the report of the Borough Treasurer on the adequacy of proposed financial reserves and robustness of the estimates included at Appendix 5;

•        note and comment upon the financial forecasts for 2019/20 to 2022/23 (Appendix 6 of the report), and the key issues to be addressed in formulating a response to the future financial challenges facing the Council;

•        approve the 2019/20 to 2021/22 Capital Programme and the funding arrangements as described in the report and set out at Appendix 7 of the report;

•        approve the prudential indicators set out in Appendix 8 of the report; and

•        pass the appropriate Council Tax resolutions which produce a Council Tax increase of 2.75% (1.75% General increase and 1% Adult Social Care Precept increase) as illustrated in Appendix 9 of the report.

To agree the level of rent and service charges for the Housing Revenue Account (HRA) in 2019/20 and provision of a recommended HRA budget for 2019/20.

The Cabinet considered the rent levels and service charges for the Housing Revenue Account (HRA) and a recommended budget for 2019/20 and then recommended that the Council Meeting approve:-

·                a reduction in the average social rent of 1% for dwelling rents;

·                an increase of 3.8% for rents of shared ownership properties;

·                service charge increases as outlined in Section 3 of the report;

·                the Housing Revenue Account Budget for 2019/20 as set out in Appendix 1 of the report.

The Cabinet has recommended to the Council Meeting the draft Council Plan for 2019/20 be approved.

The Cabinet considered the 2019/20 fee setting recommendations for the most significant areas of externally commissioned services within Adult Social Care and approved the fee setting approach, including fee uplifts as set out in the report.