Issue - meetings

To consider a report of the Deputy Chief Executive.

This item covers two reports as follows:

·         Mid-Year Corporate Performance and Resources Report (CPRR) 2017/18

·         Mid-Year Leader’s Report 2017/18

The Mid-Year Corporate Performance and Resource Report (CPRR) provides a summary of progress in delivering the Council’s priority outcomes, revenue budget and capital programme during the first half of 2017/18, with a particular focus on the second quarter (July to September).

Updates are included on delivery of policy priorities, alongside Reform Projects. The report also includes mid-year forecasts of budget and performance data, along with an update on the Corporate Risk Register. It is supported by seven Portfolio Performance and Resource Reports which were considered by the most recent Scrutiny cycle.

The Leader’s Mid-Year Report reflects on progress in delivering local priorities and how next year’s budget proposals aim to address the future challenges faced by the Council. It also includes an update on key issues at a Greater Manchester level.

These reports were considered and approved by Cabinet on 14 November.  

Scrutiny Committee is asked to:

•        Consider the Mid-Year Reports;  

•        Review the progress against delivering corporate objectives, key projects, priority outcomes, targets and budgets for 2017/18;

•        Highlight key areas of and responsibility for taking forward corrective action to address any performance or resource issues;

•        Identify how areas of strong performance and good practice can be shared in other services.

Officer contact: Steve Skelton/ Michael Cullen, 0161 474 3174 / 4631 steve.skelton@stockport.gov.uk, michael.cullen@stockport.gov.uk

The Deputy Chief Executive submitted the mid-year update Corporate Performance and Resources Report (CPRR) 2017/18 and the mid-year update Leader’s Report 2017/18 (copies of which had been circulated).

The Mid-Year Update Corporate Performance and Resource Report (CPRR) provided an update on progress in delivering the Council’s Priority Outcomes and budget during the first half of 2017/18 with particular focus on activity in the second quarter.

Updates were included on delivery of policy priorities, alongside Reform Projects. The report also included early forecasts of budget and performance data where this was available, along with an update on the refreshed Corporate Risk Register. It was supported by seven Portfolio Performance and Resource Reports which were being considered by scrutiny committees in the current Scrutiny cycle.

The Leader’s Annual Report reflected on recent national and local events, along with key areas of progress in delivering the vision for Inclusive Growth during the second quarter.

It was reported that the reports had been considered and approved by Cabinet on 14 November 2017.

The Leader of the Council (Councillor Alex Ganotis) and the Cabinet Member for Reform & Governance (Councillor David Sedgwick) attended the meeting to present the report and answer councillors’ questions.

The following comments were made/ issues raised:

·         Comment was made about the challenge of fly-tipping. In response the scale of the challenge was acknowledged and it was stated that the Cabinet would be bringing forward measures to address this in the future.

·         The proposals to support the redevelopment of mills were welcomed.

·         Further information was sought on the impact and operation of the pooling Business Rates with neighbouring local authorities. In response it was commented that that model was evolving, but that approximately half of business rates growth will be retained by individual councils, and the other half would be used to compensate councils that may have lost funding. A portion would also be retained by the Combined Authority to avoid the need to have a Levy. It was anticipated that Stockport would benefit from this scheme and the level of growth was projected to be greater than the loss to the Revenue Support Grant. Nevertheless the complexity of the scheme and the volatility of business rates was emphasised, particular when seeking to calculate the collection base.

·         Clarification was sought on what options the Cabinet had considered before proposing a Council Tax increase of 4.99% given the report acknowledges that this was not the fairest approach. In response it was stated that this was a reference to the fact that Council Tax was not based on the ability to pay, but that in reality the Council had no other option without cuts to services. The proposed increase would mean a reduction of £7m in the Council’s budget saving requirements. The Cabinet was exploring option to increase income and making increased use of business rates, but there were not without challenge and risk.

RESOLVED – (1) That the reports be noted.

(2) That the Borough Treasurer be requested to submit a report to the next meeting on the operation of the Business Rates Pooling scheme.

To consider a report of the Leader of the Council and Cabinet Member for Policy, Finance & Devolution.

The Mid-Year Corporate Performance and Resource Report (CPRR) provides an update on progress in delivering the Council’s priority outcomes and budget during the first half of 2017/18, with a particular focus on the second quarter (July to September).

Updates are included on delivery of policy priorities and the growth and reform programme. The report also includes forecast budget and performance data where this is available, along with an update on the Corporate Risk Register. It is supported by seven Portfolio Performance and Resource Reports which were considered by the most recent Scrutiny cycle.

The Leader’s Mid-Year Report reflects on achievements, key issues, events and changes since the First Update Report. 

Cabinet is asked to:

·         Review progress against delivering Council priorities and capital schemes alongside budget and performance forecasts contained within the report;

·         Approve the virements to the Revenue Budget set out in section 3.2.3;

·         Note the Portfolio cash limit forecast position for 2017/18 as set out in section 3.3;

·         Note the position on the 2017/18 budget savings programme set out in section 3.4;

·         Note the non-cash limit forecast position for 2017/18 as set out in section 3.6;

·         Note the Dedicated Schools Grant and Housing Revenue Account forecast positions as set out in sections 3.7 and 3.8;

·         Note the position on the Council’s earmarked reserves and balances as set out in section 3.9;

·         Note the re-phasing of capital schemes during the quarter as set out in 4.1.4;

·         Approve the changes to the Capital Programme as set out in 4.1.5;

·         Approve the proposals for resourcing the Capital Programme as set out in 4.3; and

·         Identify key areas for further investigation and responsibility for taking forward corrective action to address any existing or forecast issues or risks.

Officer contact: Peter Owston / Jonathan Davies, 0161 474 3274/ 218 1025, peter.owston@stockport.gov.uk / jonathan.davies@stockport.gov.uk

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of which had been circulated) providing the Cabinet with a report on the delivery of the Council’s Priority Outcomes and budget during the first half of 2017/18, with particular focus on activity in the second quarter.

The Leader of the Council highlighted a number of significant issues, including ongoing budgetary pressures, predicted deficits in cash limit budgets being offset by surpluses in non-cash limit budgets. It was also proposed to utilities reserves to support reform and budget resilience.

The report also summarised programmes to address some of these pressures and to reduce avoidable demand for services through inclusive growth, including: the recent launch of the Community Investment Fund pilot; proposals being developed on tackling poverty; ongoing work developing locality working and the Digital by Design programme; the establishment of Stockport Neighbourhood Care; and ongoing work to develop the Local Plan.

The Leader also paid tribute to Council staff and partners who had been worked hard to achieve a Good Ofsted rating for Children’s social care services, particularly in the context of reducing budgets and increasing demand. Adoption Services were singled out for their Outstanding rating.

In relation to the Leader’s Report for the second quarter, the Leader specifically highlighted the anticipation of the Autumn budget statement from the Government and the need for action to address funding pressures nationally on adult and children’s social care; the proposal for GMCA to begin a second phase of consultation on a revised GMSF in June 2018 and releases of key analysis in advance of this; progress with Stockport Exchange redevelopment and bringing forward capital investment in school buildings.

The Leader also paid tribute to the Council for delivering the essential A6/Wellington Bridge maintenance work on time and budget, and for the way in which mitigation was managed.

Cabinet Members also highlighted particular issues within their portfolios, including the need for long term behavioural change to address the growing health and financial challenge of Type 2 diabetes; increasing costs of and demand for children’s residential care; increased pressure on resources to respond to missing children reports; positive steps to make resources available to address school building conditions but the shortfall in what was available compared to the needs; proposals being prepared to address specific increasing demand for SEND provision.

RESOLVED – That in relation to the Corporate Performance and Resources 2017/18 Mid-Year Report:-

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

·         the virements to the Revenue Budget set out in section 3.2.3 of the report be approved;

·         the Portfolio cash limit forecast position for 2017/18 as set out in section 3.3 of the report be noted;

·         the position on the 2017/18 budget savings programme set out in section 3.4 of the report be noted;

·         the non-cash limit forecast position for 2017/18 as set out in section 3.6 of the report be noted;

·         the Dedicated Schools Grant and Housing Revenue Account forecast positions as set out in sections 3.7 and 3.8 of the report be noted;

·         the position on the Council’s earmarked reserves and balances as set out in section 3.9 of the report be noted;

·         the re-phasing of capital schemes during the quarter as set out in 4.1.4 be noted;

·         the changes to the Capital Programme as set out in 4.1.5 of the report be approved; and

·         the proposals for resourcing the Capital Programme as set out in 4.3 of the report be approved.