Issue - meetings

The Area Committee and members of the public are asked to comment on the key considerations arising from the Council’s Medium Term Financial Plan and provide suggestions as to how the Executive can best utilise the Committee to engage with local residents in their area.

The Plan is a medium term plan (up to 2020/21) and forecast of the Council’s expected financial position and looks at both the income the Council is forecast to receive and the spending pressures it is facing.

A representative of the Democratic Services Manager submitted a report of the Deputy Chief Executive (copies of which had been circulated) outlining the medium term plan up to 2020/21 and a forecast of the Council’s expected financial position and which looked at both the income the Council was forecast to receive and the spending pressures it was facing.

The Area Committee and members of the public were requested to comment on the key considerations arising from the Council’s Medium Term Financial Plan and provide suggestions as to how the Executive could best utilise the Committee to engage with local residents in their area.

The following comments were made/ issues raised:-

·         The report contained only broad principles rather than specific budget proposals which made it difficult to engage members of the public in meaningful consultation.

·         It was stated in the report that a reduction in need for specialist services would be achieved through a reduction in demand and an increase in independence and resilience.  It was commented that this would be difficult to achieve in practice and there was no methodology included within the report on how this aim would be approached.

·         In order to meaningfully consult the public on the specific budget proposals, there needed to be a comprehensive publicity scheme and an increased period of notice provided.

·         A councillor had been contacted by a member of the public who had suggested that there were proposals to change the essential and casual car user allowances for staff and that they had concerns about the ability of officers to work in a safe and efficient manner should this element of employees’ terms and conditions be effected. 

RESOLVED – That the report be noted.

The Area Committee and members of the public are asked to comment on the key considerations arising from the Council’s Medium Term Financial Plan and provide suggestions as to how the Executive can best utilise the Committee to engage with local residents in their area.

The Plan is a medium term plan (up to 2020/21) and forecast of the Council’s expected financial position and looks at both the income the Council is forecast to receive and the spending pressures it is facing.

A representative of the Democratic Services Manager submitted a report of the Executive (copies of which had been circulated) outlining the key considerations arising from the Council’s Medium Term Financial Plan (MTFP) up to 2020/21, and seeking the views of the Area Committee and the public on the principles agreed by the Executive that would inform how it engaged on setting future budgets.

RESOLVED – That the report be noted.

The Area Committee and members of the public are asked to comment on the key considerations arising from the Council’s Medium Term Financial Plan and provide suggestions as to how the Executive can best utilise the Committee to engage with local residents in their area.

The Plan is a medium term plan (up to 2020/21) and forecast of the Council’s expected financial position and looks at both the income the Council is forecast to receive and the spending pressures it is facing.

The Democratic Services Manager submitted a report of the Executive (copies of which had been circulated) outlining the key considerations arising from the Council’s Medium Term Financial Plan (MTFP) up to 2020/21, and seeking the views of the Area Committee and the public on the principals agreed by the Executive that would inform how it engaged on setting future budgets.

Councillors expressed disappointment that no member of the Executive nor senior officer had attended to present the report, given that they were seeking views on engagement.

A member of the public expressed concern that the reference at paragraph 2.12 to working with public gave no indication of how this was to be achieved and what it would entail.

In relation to the Review of the Reserves Policy, it was commented that no details of the methodology used in determining how these were adequate was given.

RESOLVED – That the report be noted and the Executive be recommended to ensure that should further budget consultation takes place with Area Committee a member of Executive attend to answer questions.

The Area Committee and members of the public are asked to comment on the key considerations arising from the Council’s Medium Term Financial Plan and provide suggestions as to how the Executive can best utilise the Committee to engage with local residents in their area.

The Plan is a medium term plan (up to 2020/21) and forecast of the Council’s expected financial position and looks at both the income the Council is forecast to receive and the spending pressures it is facing.

A representative of the Democratic Services Manager submitted a report of the Deputy Chief Executive (copies of which had been circulated) outlining the medium term plan up to 2020/21 and a forecast of the Council’s expected financial position and which looked at both the income the Council was forecast to receive and the spending pressures it was facing.

The Area Committee and members of the public were requested to comment on the key considerations arising from the Council’s Medium Term Financial Plan and provide suggestions as to how the Executive could best utilise the Committee to engage with local residents in their area.

The following comments were made/ issues raised:-

·         The report did not at this stage contain any meaningful proposals to consult upon.

·         It was important to engage with the public as part of the budget setting process and the use of area committees as a means to achieve this was welcomed.

·         There needed to be appropriate publicity and sufficient notice provided so as to ensure wide participation.

RESOLVED – That the report be noted.

To consider a report of the Borough Treasurer.

The Medium Term Financial Plan Update provides two reports. The first report proposes a realignment and consolidation of the Council’s reserves and the development of a Reserves Policy which will align the reserves to the Council’s corporate and strategic priorities over the Medium Term Financial Plan (MTFP). The report also outlines the principles of a summer review of the Council’s MTFP considering the current key assumptions underpinning the financial forecasts and whether these are still appropriate.

The second report outlines the principles that will frame how the Executive engages with residents and businesses to inform how it proposes to address the severe financial challenges being imposed on Stockport by central Government.

The Scrutiny Committee is recommended to comment on and note the reports.

Officer contact: Michael Cullen on 0161 474 4631 or email: michael.cullen@stockport.gov.uk

A representative of the Borough Treasurer submitted the Medium Term Financial Plan Update) (copies of which had been circulated) which included two reports.  The first of these proposed a realignment and consolidation of the Council’s reserves and the development of a Reserves Policy which would align the reserves to the Council’s corporate and strategic policies over the Medium Term Financial Plan (MTFP). The report also outlined the principles of a review undertaken in the summer of the Council’s MTFP which considered the key assumptions underpinning the financial forecasts and whether these were still appropriate.

The second report outlined the principles that would frame how the Executive engaged with residents and businesses to inform how it proposed to address the severe financial challenges being imposed on Stockport by Central Government.

The following comments were made/issues raised:-

·         Why the Council had taken no action until recently in the light of the fact that the Audit Commission’s ‘Striking the Balance’ Report had been produced in 2012 outlining the increasing level of reserves held by local authorities.

·         With regard to the response to the ‘Striking the Balance’ Report Questionnaire and the section ‘How much does the Council have in its reserves – in cash terms and relative to spending?’, a Member commented that he could not make an assessment on the level of reserves without knowing how much they had increased as a percentage of spending.

·         A Member commented that there was no prescribed methodology in the report and there was a lack of detail as to why the level of reserves were necessary. This needed to go beyond a comparison with the other local authorities in Greater Manchester.

·         Why a proposed reserve of £10m was being held as an Insurance Reserve and what had been the insurance claims against the Council over the last three years.

·         With regard to the proposed Workforce Investment/Change Reserve of £5.5m, what had been the redundancy costs incurred by the Council over the last three years.

·         What the significantly increased pooled budget between the Council and the Clinical Commissioning Group for 2016/17 of approximately £200m had increased from.

·         Whether the budget savings made by the Council were greater than reported if the surplus against non-cash limit budgets was taken into account.

·         A Member felt that what was missing from the report was to how to replace reserves when the Council was forced to use them as a contingency in an emergency situation.

·         With regard to Section 3 of the report, a Member enquired how the priorities were established and what the priority order was.

·         In response to a Member’s question, it was clarified that revenue reserves could be used to finance both revenue and capital expenditure.

·         The reserves held by the Council were utilised by the Treasury Management team to adequately manage the cash position of the Council and also to avoid the need to borrow for capital purposes.

·         A Member requested that the flow chart showing the process be made clearer by the addition of ‘yes’ and ‘no’ arrows.

RESOLVED – (1) That the report be noted.

(2) That the Borough Treasurer be requested to respond to the comments made by the Scrutiny Committee.

To consider a report of the Deputy Chief Executive and the Borough Treasurer.

The Medium Term Financial Plan Update provides two reports. The first report proposes a realignment and consolidation of the Council’s reserves and the development of a Reserves Policy which will align the reserves to the Council’s corporate and strategic priorities over the Medium Term Financial Plan (MTFP). The report also outlines the principles of a summer review of the Council’s MTFP considering the current key assumptions underpinning the financial forecasts and whether these are still appropriate. The second report outlines the principles that will frame how the Executive engages with residents and businesses to inform how it proposes to address the severe financial challenges being imposed on Stockport by central Government. 

Both reports were considered by the Executive on 16 August 2016.

The Scrutiny Committee are invited to comment on the reports and the proposed Reserves Policy.

Officer Contact: Michael Cullen on Tel: 474 4631 or email: michael.cullen@stockport.gov.uk

A representative of the Deputy Chief Executive and the Borough Treasurer submitted a report (copies of which had been circulated) providing for comment the Medium Term Financial Plan update which also detailed a proposal for the development of a Reserves Policy.

The following comments were made/issues raised:-

·         The requirement for the Council to accept the Governments offer of a four year settlement through the submission of an efficiency plan by 14 October 2016.

·         The need for the completion of a balanced and sustainable budget for 2017/2018 and a longer term forecast up to 2020/2021.

·         The Council and the Clinical Commissioning Group have entered into a significantly increased pooled budget for 2016/2017 of approximately £200m. The Stockport Together programme had also recently been successful in receiving close to £19m from the Greater Manchester Transformation Fund.

·         Councillors discussed the development of a Reserves Policy which distinguished between unallocated reserves and earmarked reserves and was more transparent. It was hoped that the policy would ensure that the reserves identified are held at a recommended optimum level and replenished when resources became available to do so.

RESOLVED – That the report be noted.

To consider a report of the Borough Treasurer.

The Medium Term Financial Plan Update provides two reports. The first report proposes a realignment and consolidation of the Council’s reserves and the development of a Reserves Policy which will align the reserves to the Council’s corporate and strategic priorities over the Medium Term Financial Plan (MTFP). The report also outlines the principles of a summer review of the Council’s MTFP considering the current key assumptions underpinning the financial forecasts and whether these are still appropriate.

The second report outlines the principles that will frame how the Executive engages with residents and businesses to inform how it proposes to address the severe financial challenges being imposed on Stockport by central Government.

The Scrutiny Committee is recommended to comment on and note the reports.

Officer contact: Michael Cullen on 0161 474 4631 or email: michael.cullen@stockport.gov.uk

The Borough Treasurer submitted a two report (copies of which had been circulated) relating to the Medium Term Financial Plan. The first report proposed a realignment and consolidation of the Council’s reserves and the development of a Reserves Policy which would align the reserves to the Council’s corporate and strategic priorities over the Medium Term Financial Plan (MTFP). The report also outlined the principles of a summer review of the Council’s MTFP considering the current key assumptions underpinning the financial forecasts and whether these are still appropriate.

The second report outlined the principles that would frame how the Executive engaged with residents and businesses to inform how it proposed to address the severe financial challenges being imposed on Stockport by central Government.

The Leader of the Council (Councillor Alex Ganotis) attended the meeting to respond to councillors’ questions. The following comments were made/ issues raised:-

·         The Scrutiny Committee discussed the involvement of Area Committees as part of the proposed consultation in relation to the budget proposals.

·         The development of a ‘Reserves Policy’ was welcomed and it was noted the proposed level of reserves was felt appropriate for the next two years although would be subject to annual review.

RESOLVED – That the reports be noted and the proposed Reserve Policy be endorsed.

To consider a report of the Borough Treasurer.

The Medium Term Financial Plan Update provides two reports. The first report proposes a realignment and consolidation of the Council’s reserves and the development of a Reserves Policy which will align the reserves to the Council’s corporate and strategic priorities over the Medium Term Financial Plan (MTFP). The report also outlines the principles of a summer review of the Council’s MTFP considering the current key assumptions underpinning the financial forecasts and whether these are still appropriate.

The second report outlines the principles that will frame how the Executive engages with residents and businesses to inform how it proposes to address the severe financial challenges being imposed on Stockport by central Government.

The Scrutiny Committee is recommended to comment on and note the reports.

Officer contact: Michael Cullen on 0161 474 4631 or email: michael.cullen@stockport.gov.uk

A representative of the Borough Treasurer submitted the Medium Term Financial Plan Update (copies of which had been circulated) which included two reports.  The first of these proposed a realignment and consolidation of the Council’s reserves and the development of a Reserves Policy which would align the reserves to the Council’s corporate and strategic policies over the term of the Medium Term Financial Plan.  The second report outlined the principles that framed how the Executive engaged with residents and businesses to inform how it proposed to address the severe financial challenges being imposed on Stockport by central Government.

The Executive Councillor for Adult Social Care (Councillor Wendy Wild) attended the meeting to answer councillors’ questions.

The following comments were made/ issues raised:-

·         The development of a two year budget in conjunction with the four year settlement announced by government in 2015 allowed the Council greater financial certainty in the period to 2020.

·         Notwithstanding any budgetary reductions that would need to be made, there were additional pressures on the current budget that would need to be accommodated such increases to the national minimum wage.

·         It was proposed to consolidate the number of categories of earmarked reserves to four risk based earmarked reserves.

·         The review of the earmarked reserves had confirmed that the level of reserves was appropriate but had identified that the way in which they were held and the approval process could be strengthened.

RESOLVED – That the report be noted.

To consider a report of the Borough Treasurer.

The Medium Term Financial Plan Update provides two reports. The first report proposes a realignment and consolidation of the Council’s reserves and the development of a Reserves Policy which will align the reserves to the Council’s corporate and strategic priorities over the Medium Term Financial Plan (MTFP). The report also outlines the principles of a summer review of the Council’s MTFP considering the current key assumptions underpinning the financial forecasts and whether these are still appropriate.

The second report outlines the principles that will frame how the Executive engages with residents and businesses to inform how it proposes to address the severe financial challenges being imposed on Stockport by central Government. 

The Scrutiny Committee is recommended to comment on and note the reports.

Officer contact: Michael Cullen on 0161 474 4631 or email: michael.cullen@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) inviting the Scrutiny Committee to consider two reports: firstly the proposed Reserves Policy to consolidate the Council’s financial reserves and ensure they were aligned with corporate and strategic priorities; and secondly the principles set out by the Executive that would frame how the Council would engage with stakeholders on how it would address the severe financial challenges facing the Council.

The Borough Treasurer highlighted that the Review of Reserves concluded that the quantum of reserves was appropriate for the Council’s need, but found that the number of reserve ‘pots’ was too numerous, so it was recommended that these be consolidation to ensure they were better suited to priorities and could be deployed more effectively.

The Executive Councillor (Health) (Councillor Tom McGee) highlighted that within five years the Council would cease to receive a Revenue Support Grant and so the Council needed make sure that services could be maintained and targeted to those of greatest. The Executive would be taking a two year view of the budget that would allow it to make fewer reductions.

The following comments were made/ issues raised:-

·           Were there sufficient reserves to support the transition to new ways of working, particularly within health and social care services? It was acknowledged that this area in particular was a challenge, and needed to be seen with the context of the funding from the Council’s partners. The policy and levels of reserves would be subject to regular review to assess the risk to the Council and changes recommended if necessary.

·           Would entering into the proposed four year funding arrangement with DCLG be more financial advantageous than the annual settlement, and was Council in a position to meet the DCLG application timescale? In response it was stated the requirements of DCLG for the submission of an Efficiency Plan were relatively ‘light touch’ and so the Council had already made significant efforts to develop such plans through the Medium Term Financial Plan. The Council, like many other local authorities, had been advocating longer settlements for some time as they provided increased stability and security, particularly in view of the demands of the Council’s transformation agenda. Although it was unlikely the Council would be financially better off through the settlement, there was a risk that those local authorities who did not participate may find themselves worse off.

RESOLVED – That the report be noted.

Leader of the Council (Policy, Finance & Devolution) and Executive Councillor (Reform & Governance)

The Medium Term Financial Plan Update provides two reports.  The first report proposes a realignment and consolidation of the Council’s reserves and the development of a Reserves Policy which will align the reserves to the Council’s corporate and strategic priorities over the MTFP.  The report also outlines the principles of a summer review of the Council’s Medium Term Financial Plan (MTFP) considering the current key assumptions underpinning the financial forecasts and whether these are still appropriate. 

The second report outlines the principles that will frame how the Executive engages with residents and businesses to inform how it proposes to address the severe financial challenges being imposed on Stockport by central Government.

In relation to the first report, the Executive is recommended to:-

·         consider a MTFP summer review being completed with updates to the MTFP to be reported back to the Executive in October;

·         note that the Council will need to complete and submit an Efficiency Plan to DCLG by 14 October to accept the four year settlement;

·         note the outcomes of the Borough Treasurer’s review of reserves; and

·         consider the proposed 2016/17 Reserves Policy.

In relation to the second report, the Executive is recommended to:-

·         request a summer review of the assumptions underpinning the MTFP;

·         engage with all councillors on the approach outlined above through Scrutiny and Area Committees and other local structures;

·         request that Area Committees encourage and provide opportunities for the public to comment on the underpinning principles in the public engagement part of the agenda;

·         request officers to continue to develop a programme based on the framework outlined, in response to the MTFP; and,

·         request comments from the next Scrutiny cycle on the proposed reserves policy.

Officer contact: Michael Cullen, 0161 474 4631, michael.cullen@stockport.gov.uk

The Leader of the Council (Policy, Finance & Devolution) submitted two reports (copies of which had been circulated), the first proposing a realignment and consolidation of the Council’s reserves and development of a Reserves Policy, as well as the principals for a summer review of the current assumptions underpinning the Medium Term Financial Plan. The second report set out the principals that would frame how the Executive would engage with stakeholders about how it proposes to address future financial challenges.

The Leader of the Council highlighted the significant financial challenge the Council continued to face and the need to set a balanced budget next year, while being cognisant of the needs of future years. He emphasised the need to consult with councillors and stakeholders to develop those proposals and provide a fair and transparent process through which difficult decisions would be taken.

The Leader also highlighted the changed approach to budget proposals this year, with proposals only being published once the detail and implications had been considered; the development of a policy on financial reserves that allowed the Council to make best use of its resources while taking a long term view; the offer of a four-year budget settlement from the Government subject to the submission of an efficiency  which would allow the Council to better plan for the likely loss of Revenue Support Grant.

RESOLVED – (1) That in relation to the Medium Term Financial Plan Update:-

·         approval be given to a Medium Term Financial Plan (MTFP) summer review being completed with updates to the MTFP to be reported back to the Executive in October;

·         the need for the Council to complete and submit an Efficiency Plan to DCLG by 14 October to accept the four year settlement be noted;

·         the outcomes of the Borough Treasurer’s review of reserves be noted.

·         the proposed 2016/17 Reserves Policy be noted.

(2) That in relation to the Addressing the Medium-Term report:-

·         a summer review of the assumptions underpinning the Medium Term Financial Plan be requested;

·         all councillors be engaged on the approach outlined above through scrutiny and area committees and other local structures;

·         that area committees be requested to encourage and provide opportunities for the public to comment on the underpinning principles in the public engagement part of their agendas;

·         officers be requested to continue to develop a programme based on the framework outlined, in response to the Medium Term Financial Plan; and,

·         comments be sought from the next Scrutiny cycle on the proposed Reserves Policy.