Issue - meetings

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

The purpose of the report is to provide the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2022/23 outturn position. The report needs to be read in conjunction with the Medium Term Financial Plan Update and Cabinet Response – Responding to Our Medium Term Financial Plan reports presented elsewhere on this agenda.??

The Cabinet is recommended to:-

(1) Note the annual review of Council’s 2023/24 Reserves Policy including the level and rationale for the reserves held;

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

(3) Approve the proposed 2023/24 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 Jilly Julian) 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 2022/23 outturn position.

RESOLVED - (1) That the annual review of Council’s 2023/24 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 2023/24 Reserves Policy.

To consider a report of the Deputy Chief Executive (Section 151 Officer).

The report provides the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2022/23 outturn position.

The Scrutiny Committee is recommended to note and comment on the report including the recommendations to Cabinet:

(1)  Note the annual review of Council’s 2023/24 Reserves Policy including the level and rationale for the reserves held.

(2)  Approve the adjustments and reclassification of earmarked reserves held in line with the recommended amounts.

(3)  Approve the proposed 2023/24 Reserves Policy.

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

The Deputy Chief Executive (Section 151 Officer) submitted a 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 2022/23 outturn position.

The Cabinet Member for Finance and Resources (Councillor Jilly Julian) attended the meeting to respond to councillors’ questions.

The following comments were made/ issues raised:-

·         In reference to the recent announcement that Birmingham City Council had issued a Section 114 notice, members queried whether Stockport Council might be more likely in the future to use its reserves to mitigate the pressures the council was facing at the moment.

·         In response it was stated that a full discussion and exploration of the possible use of reserves would take place as part of the standard work around producing a balanced budget, and this would be reported to a future meeting of the Scrutiny Committee.

·         It was suggested that a healthy balance of reserves placed the council in an advantageous position, however the sustained use of earmarked reserves may place have an impact on the council and borough in delivering its ambitions and may render projects and investments as no longer financially viable.  In response, it was stated that the use of reserves was managed with care and with oversight and scrutiny.

RESOLVED - (1) That the annual review of Council’s 2023/24 Reserves Policy including the level and rationale for the reserves held be noted.

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

(3) That the proposed 2023/24 Reserves Policy be noted.