Issue - meetings

To consider a report of the Cabinet Member for Resources, Commissioning & Governance

The report provides an update on the Council’s Reserves Policy following the reporting of the Council’s 2018/19 outturn position and the annual review of the Council’s Reserves Policy. The Cabinet approved the recommendations in the report at the extraordinary meeting on 3 September 2019.

The Scrutiny Committee is invited to note the report.

Officer contact: Jonathan Davies, 0161 218 1025, jonathan.davies@stockport.gov.uk

The Borough Treasurer 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 2018/19 outturn position and the annual review of the Council’s Reserves Policy. The Cabinet had considered the report and approved the recommendations at its extraordinary meeting held on 3 September 2019.

The Cabinet Member for Resources, Commissioning & Governance (Councillor Tom McGee) attended the meeting to respond to questions.

The following comments were made/ issues raised:-

·         Councillors welcomed the comparison information in the report.

·         Comment was made that the Council’s reserves policy provided a robust and resilient platform for the Council’s finances and operations. Further comment was about the transparency of the Council’s reserves policy.

·         The prudence of the reduction of the Collection Fund reserve by 30% was queried given the potential for economic uncertain over the next year. In response it was stated that while the Council participated in the 100% Business Rate Retention pilot the budget only assumed 50% retention. Given that Stockport was not overly reliant on any particular business sector for its business rates, and significant improvements had been made in recent years in the collection rate, it was felt the measure was prudent.

·         Comment was sought on whether the Council’s reserves policy was efficient and appropriate, particularly in comparison with other Greater Manchester councils. In response it was stated that this was the belief, and there were examples from elsewhere in the country of imprudent approaches to reserves. It was also commented that other Greater Manchester councils were seeking to increase their reserves in light of future funding challenges. Stockport Council’s approach was demonstrably prudent and effective given how it was able to invest but also respond to unforeseen events such as flooding.

RESOLVED – That the report be noted.

To consider a report of the Cabinet Member for Resources, Commissioning & Governance

The report provides an update on the Council’s Reserves Policy following the reporting of the Council’s 2018/19 outturn position and the annual review of the Council’s Reserves Policy.

Cabinet are recommended to:

·           note the annual review of Council’s 2019/20 Reserves Policy including the level and rationale for the reserves held;

·           approve the creation and reclassification of earmarked reserves held in line with the recommended amounts; and

·           approve the proposed 2019/20 Reserves Policy.

Officer contact: Jonathan Davies, 0161 218 1025, jonathan.davies@stockport.gov.uk

The Cabinet Member for Resources, Commissioning & Governance submitted a report (copies of which had been circulated) inviting the Cabinet to consider an update on the Council’s Reserves Policy following the reporting of the Council’s 2018/19 outturn position and the annual review of the Council’s Reserves Policy.

The Cabinet Member highlighted the importance of reserves in providing flexibility and responsiveness for the Council to address unforeseen circumstances. It was also commented that the report and policy had been prepared before the recent announcements about the 1 year Government spending review.

The Cabinet Member also highlighted the CIPFA national and local comparator information, indicating the prudence of the Council in approaching reserves, although he suggested there was scope to increase reserve levels in line with CIPFA guidance. Other cabinet members echoed the prudence and transparency in the Cabinet’s approach.

RESOLVED – That in relation to the Council’s Reserves Policy 2019/20:-

•     the annual review be noted, including the level and rationale for the reserves held;

•     the creation and reclassification of earmarked reserves held in line with the recommended amounts be approved; and

•     the proposed 2019/20 Reserves Policy be approved.