Issue - meetings

To consider a report of the Cabinet Member for Finance and Resources.

The report provides the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2021/22 outturn position.

The Cabinet is recommended to:

a)    Note the annual review of Council’s 2022/23 Reserves Policy including the level and rationale for the reserves held;

b)   Approve the adjustments and reclassification of earmarked reserves held in line with the recommended amounts; and

c)    Approve the proposed 2022/23 Reserves Policy.

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

The Cabinet Member for Finance & Resources (Councillor Malcolm Allan) submitted a report (copies of which had been circulated) providing an update on the Council’s Reserves Policy following the reporting of the Council’s 2021/22 outturn position.

RESOLVED - (1) That the annual review of Council’s 2022/23 Reserves Policy including the level and rationale for the reserves held be noted.

(2) That approval be given to the adjustments and reclassification of earmarked reserves held in line with the recommended amounts.

(3) That approval be given to the proposed 2022/23 Reserves Policy.

To consider a joint report of the Deputy Chief Executive (Section 151 Officer) and Cabinet Member for Finance and Resources.

The report provides the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2021/22 outturn position.

The Scrutiny Committee is asked to comment on and:

a)    Note the annual review of Council’s 2022/23 Reserves Policy including the level and rationale for the reserves held;

b)    Recommend for approval the adjustments and reclassification of earmarked reserves held in line with the recommended amounts; and

c)    Recommend for approval the proposed 2022/23 Reserves Policy.

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

The Deputy Chief Executive (Section 151 Officer) and Cabinet Member for Finance and Resources submitted a joint report (copies of which had been circulated) providing the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2021/22 outturn position.

The Cabinet Member for Finance and Resources attended the meeting to respond to questions from the Scrutiny Committee.

The following comments were made/issues raised:-

·       It was noted that further resources in addition to those already identified held in earmarked reserves could be made available to support the Council’s ongoing financial response and recovery over the medium-term period if needed.

·       Members commented that the reserve policy was also monitored by the Audit Committee and the external auditors and it has been good to date.

·       It was explained that the Council has always taken a strategic approach and never made an investment just for a financial return but mainly for a regenerative outcome for residents.

·       Schools across the borough need work and improvement, but the Council are unable to borrow against those assets as there would be no income stream return from repairing those schools.

·       It was noted that the policy dictates how the money was managed and what it could be used for.

RESOLVED – That the Scrutiny Committee:

a)    notes the annual review of Council’s 2022/23 Reserves Policy including the level and rationale for the reserves held;

b)    recommends for approval the adjustments and reclassification of earmarked reserves held in line with the recommended amounts; and

c)     recommends for approval the proposed 2022/23 Reserves Policy.