Issue - meetings

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

The report provides the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2023/24 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 2024/25 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 2024/25 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 2023/24 outturn position.

RESOLVED - (1) That the annual review of Council’s 2024/25 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 2024/25 Reserves Policy.

To consider a report of the Assistant Director for Finance (Interim 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 2023/24 outturn position.

The Scrutiny Committee is recommended to note and comment upon the report including the recommendations to Cabinet.

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

The Assistant Director for Finance (Interim Section 151 Officer) and Cabinet Member for Finance and Resources 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 2023/24 outturn position.

The Cabinet Member for Finance & Resources (Councillor Jilly Julian) attended the meeting to respond to councillor’s questions.

The following comments were made/ issues raised: -

·         In terms of the potential spending of reserves, the council set boundaries as a collective to ensure that the lines were clear and worked for the borough as a whole. Those boundaries ensured that the council did not risk becoming short-termist or reckless with its use of reserves.

·         The council’s reserves were categorised, including budget resilience, corporate priorities, capital programme, demand-led services and legislative and corporate reserves. Reviews of categories were undertaken on a regular basis to ensure that reserve funds were held within the correct category.

·         Flexibility had been built into the reserves system to support the robustness of the budget and the medium term financial plan. There was £15 million of resources set aside covering the medium term period which provided resilience to deal with any unknown issues over that period.

·         The data demonstrated that the council’s reserves were at their lowest as a percentage of total expenditure. The council was not an outlier in terms of holding or using its reserves.

·         Stockport had, over a number of years, taken a consistently cautious approach to reserves and it had not been reckless in increasing exposure by plundering its reserves, which compared favourably to other local authorities cited in the report.

·         The workforce plan would be reported at the October meeting of this scrutiny committee which would provide the full scope and detail of the council’s workforce investment.

RESOLVED – That the report, including the recommendations to Cabinet, be noted.