Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 17 January 2018.

The Minutes (copies of which had been circulated) of the meeting held on 17 January 2018 were approved as a correct record and signed by the Chair.

Councillors and officers were invited to declare any interests they had in any of the items on the agenda for the meeting.

No declarations of interest were made.

To report any urgent action taken under the Constitution since the last meeting of the Cabinet.

No urgent decisions were reported.

Members of the public are invited to put questions to the Chair and Cabinet Members on any matters within the powers and duties of the Cabinet, subject to the exclusions set out in the Code of Practice.  (Questions must be submitted no later than 30 minutes prior to the commencement of the meeting on the card provided.  These are available at the meeting. You can also submit via the Council’s website at www.stockport.gov.uk/publicquestions)

Members of the public were invited to submit questions to the Cabinet on any matter its power and duties, subject to the exclusions set out in the Code of Practice.

Five questions were submitted.

(1)  The first question suggested that the consideration given to the Stockport Together business case consultation feedback by the Adult Social Care & Health Scrutiny Committee had been inadequate and in light of the importance of the issues involved asked why these would not be subject to a debate at the Council Meeting.

The Leader of the Council responded by stating that there had been engagement from councillors in the development of the Stockport Programme for at least 3 years, as well as an extensive public consultation on the latest iteration of the business cases that was also something the Scrutiny Committee had been involved with. He stated that it was not fair therefore to suggest there had been inadequate engagement. The Leader further stated that he did not believe a debate at the Council Meeting was necessary as there was broad support across all political groups for the Stockport Together Programme, and the Council Meeting was not the best way to engage councillors in a complex issue such as this. The Leader acknowledged that there were members of the public who did not support the proposed changes to models of care but stated that there were many who did. He made clear that the business cases being considered by the Cabinet that evening were only about models of care, not about fundamental changes to the NHS.

(2)  The second question suggested that the local hospital was understaffed and staff overworked, in line with national trends, and recruitment for nurses and care staff was below the needs of providers, exacerbated by unhappiness at the changes that would result from the Stockport Together new models of care. In light of this, and the delays from the government in issuing regulation on Accountable Care Organisations and the two judicial reviews on such organisation, would it not be a significant legal risk for the Council to adopt the Stockport Together business cases?

In response, the Leader of the Council stated that issues related to workload of staff at local hospitals were a matter for them to address, but made clear his belief that the staff did a wonderful job, despite the pressures facing them that needed national action to address. He further stated that the Stockport Together models of care would reduce workload for many staff in the system by creating extra community capacity, but these needed to be seen separately from purely hospital based services outside of the Stockport Together programme. The Leader further emphasised the broad support from staff in the NHS for the new models of care, while acknowledged that there were outstanding concerns, including from trade unions, about ensuring appropriate resourcing and staffing hours, but these were operational matters that did not undermine the soundness of the business case.

Specifically in relation to the suggestion of risk in an Accountable Care Organisations, the Leader stressed that this was not an option being actively pursued by the Council and its partners, as the new models of care were being provided through an Alliance agreement. He further stressed that what was being proposed would not alter the principles underpinning the NHS, but would help address the serious financial shortfall facing the health economy in Stockport. Although there were risks inherent in embarking on innovative reform of services, the real financial risk facing the Council and NHS locally was not addressing the significant financial and demographical pressures.

The Leader acknowledged the concerns the public may have about the programme, but stressed the flexibility of the approach being taken and the monitoring that would take place to ensure the models could be adapted as the evidence of their operation dictated.

A supplementary question was asked about whether the view was  ...  view the full minutes text for item 4.

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

The Final Update Corporate Performance and Resource Report (CPRR) provides an update on progress in delivering the Council’s priority outcomes and budget since the mid-year report, with a particular focus on the third quarter (October to December).

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 Final Update Report reflects on achievements, key issues, events and changes since the Mid-Year Report, and looks ahead to plans and priorities for 2018. 

Cabinet is asked to:

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

·         Note the key policy drivers identified and progress in managing corporate risks set out in section 2;

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

·         Note the cash limit and non-cash limit forecast outturn positions for 2017/18 as set out in section 3.3 and 3.6;

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

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

·         Approve the appropriations to/from reserves and balances as set out in section 3.9 and note the resulting reserves and balances position;

·         Note the forecast position for the 2017/18 Capital Programme as set out in section 4.1;

·         Note the re-phasing of capital schemes during the quarter as set out in 4.1.5;

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

·         Note the Treasury Management review and activity during the third quarter as set out in section 5: 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: Jonathan Davies / Peter Owston, 0161 218 1025 / 474 3274

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 since the mid-year update, with particular focus on the third quarter of 2017/18 (October to December).

The Leader of the Council emphasised the commitment of the Cabinet to strive continue to provide high quality services despite the challenging financial circumstances. In particular he highlighted the following issues:-

·         the success of the Redrock and Stockport Exchange developments;

·         unprecedented demand on children’s and adult social services;

·         ongoing efforts to provide affordable homes;

·         responding to challenges arising from the collapse of Carillion;

·         recent establishment of the Work and Skills Commission to support the Cabinet’s inclusive growth agenda;

·         record investment through the Capital Programme to support both regeneration and reform initiatives.

RESOLVED – That in relation to the Corporate Performance and Resources – Final Update Reports 2017/18:-

·         progress against delivering Council priorities and capital schemes and budget and performance forecasts be noted;

·         the key policy drivers identified and progress in managing corporate risks set out in section 2 be noted;

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

·         the cash limit and non-cash limit forecast outturn positions for 2017/18 as set out in section 3.3 and 3.6 be noted;

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

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

·         the appropriations to/from reserves and balances as set out in section 3.9 be approved and the resulting reserves and balances position be noted;

·         the forecast position for the 2017/18 Capital Programme as set out in section 4.1 be noted;

·         the re-phasing of capital schemes during the quarter as set out in 4.1.5 be noted;

·         the proposals for resourcing and additional resources required for the Capital Programme as set out in 4.3 be approved; and

·         the Treasury Management review and activity during the third quarter as set out in section 5 be noted.

To consider a report of the Cabinet Member for Reform & Governance.

The purpose of this report is to provide an overview of complaints, as at the 3^rd quarter (October – December) 2017/18.

Cabinet is asked to:

·         Review performance information contained in this report, and

·         Comment on the performance measures reported and suggest any additional information that might be collected in future.

Officer contact: Anwar Majothi, 0161 474 3182, anwar.majothi@stockport.gov.uk

The Cabinet Member for Reform & Governance submitted a report (copies of which had been circulated) providing the Cabinet with an overview of complaints received in the third quarter of 2017/18 and outlining any lessons learnt as a consequence.

The Cabinet Member highlighted the increase in complaints related to adult social care, but stressed that awareness of the complaints process was increasing amongst service users.

RESOLVED – That performance in relation to complaints received in the third quarter of 2017/18 be noted.

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

The Council Plan accompanies the budget and sets a high-level framework for decision making throughout the financial year. It is a public-facing summary document that sits above more detailed annual Portfolio Agreements.

The 2018/19 Council Plan continues to be aligned with the longer-term vision and shared outcomes set out in the 2015-20 Stockport Borough Plan. It incorporates the key principles identified by Cabinet, underpinned by an inclusive vision for growth and reform.

The priorities set out within the recently published Greater Manchester Strategy ‘Our People, Our Place’ are also integrated into the Plan. The GM Strategy and Delivery Plan were considered by the Cabinet in December, and it was agreed that regular updates will be provided on progress.  

A draft Equality Impact Assessment (EIA) is also included.

Cabinet is asked to approve the 2018/19 Council Plan for submission to the Budget Council Meeting.

Officer contact: Steve Skelton, 0161 474 3174, steve.skelton@stockport.gov.uk

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of which had been circulated) inviting the Cabinet to consider the draft Council Plan for 2018/19 for submission to the Budget Council Meeting on 22 February 2018.

The Leader of the Council commented that the Plan retained previous outcomes against which the Cabinet’s performance could be measured, but that it was also ambitious, particularly in light of the severe financial challenges facing the Council. The Plan had also been aligned with the Greater Manchester Strategy’s priorities and these had been included within the document.

RESOLVED - That the Council Meeting be recommended to approve the 2018/19 Council Plan.

To consider a joint report of the Cabinet Member for Communities & Housing and the Leader of the Council.

The report recommends the rent and service charge levels for the Housing Revenue Account (HRA) in 2018/19 and provides a recommended HRA Budget for 2018/19.

The Cabinet is invited to recommend that the Council Meeting approves:

·         A reduction in the average social rent of 1% for dwelling rents;

·         An increase of 4.4% for rents of shared ownership properties;

·         Service charge increases as outlined in Section 3;

·         Increases in Sheltered Warden, Laundry and Carecall charges as outlined in Section 4; and

·         The Housing Revenue Account Budget for 2018/19 as set out in Appendix 1.

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

A joint report of the Leader of the Council and Cabinet Member for Policy, Finance & Devolution and the Cabinet Member for Communities & Housing was submitted (copies of which had been circulated) inviting the Cabinet to consider the rent levels and service charges for the Housing Revenue Account (HRA) and a recommended budget for 2018/19.

The Cabinet Member for Communities & Housing highlighted that because of the reductions in rent and efforts by Stockport Homes to freeze heating costs the vast majority of tenants would either receive no increase or a reduction in their costs.

The Cabinet Member also highlighted the proposal to hold in reserve the current surplus within the HRA to provide flexibility to address pressures caused by the levels of Right to Buy.

Cabinet members commended officers and the Cabinet Member for their work in developing a fair proposal.

RESOLVED – That the Council Meeting be recommended to approve the following in relation to the Housing Revenue Account:-

·           a reduction in the average social rent of 1% for dwelling rents;

·           an increase of 4.4% for rents of shared ownership properties;

·           service charge increases as outlined in Section 3;

·           increases in Sheltered Warden, Laundry and Carecall charges as outlined in Section 4; and

·           the Housing Revenue Account Budget for 2018/19 as set out in Appendix 1.

To consider a report of the Cabinet Member for Education.

This report updates the Cabinet on the key announcements made by the Department for Education (DfE) on the education funding settlement for 2018/19 and invited them to approve the local funding formula models to be used to determine the individual 2018/19 budgets for early years providers and schools in Stockport.

The Cabinet is asked to:

(i)      Note the details of the Education Funding Settlement for 2018/19.

(ii)     Approve the Early Years and Schools local funding formula for 2018/19 as outlined in sections 4.6 (early year’s), 4.11 (schools) and summarised in the table(s) in section 7.2 which will form the basis of the calculation of early years/school budgets and be notified to the DfE in accordance with statutory requirements.

Officer contact: Peter Hughes, 0161 474 3947, peter.hughes@stockport.gov.uk

A joint report of the Leader of the Council and Cabinet Member for Policy, Finance & Devolution and the Cabinet Member for Education was submitted (copies of which had been circulated) updating the Cabinet on the key announcements made by the Department for Education on the education funding settlement for 2018/19 and inviting the Cabinet to approve the local funding formula models to be used to determine the individual 2018/19 budgets for early years providers and schools in Stockport.

The Cabinet Member for Education emphasised the challenges facing the schools and the desire of most the Council that education funding should more accurately reflect the cost of its provision.

The Leader of the Council emphasised the extensive dialogue with schools and providers in developing these proposals and thanked officers for the work in supporting the process.

RESOLVED – (1) The details of the Education Funding Settlement for 2018/19 be noted.

(2)  That the Early Years and Schools local funding formula for 2018/19 as outlined in sections 4.6 (early year’s), 4.11 (schools) and summarised in the table(s) in section 7.2  be approved to form the basis of the calculation of early years/school budgets and be notified to the DfE in accordance with statutory requirements.

To consider a report of the Cabinet Member for Adult Social Care.

This report is presented in the context of an Adult Social Care Joint Commissioning Strategy and outlines the commissioning proposals for two of the most significant areas of externally commissioned service provision for adults with care needs: care homes in Stockport and home support to enable people to live in their homes for longer.

The Report Is designed to be considered in the context of budget setting proposals and is intended to clarify the fee changes position for 2018/19 to allow for early implementation at the start of the financial year. This will provide financial certainty to the market and support care providers with their cash flow. It will also prevent internal inefficiency caused by the need to make back payments as well as conforming to good commissioning and procurement practices.

The Cabinet is recommended to:

·         endorse and agree the approach and recommended fee levels for 2018/19 detailed within this report with respect of both residential, nursing and home support services in the Borough;

·         endorse and agree the re-commissioning approach to home support services in 2018/19 in particular the implementation of an ethical framework for care.

Officer contact: Vince Fraga, 0161 474 4401 vincent.fraga@stockport.gov.uk

The Deputy Leader of the Council and Cabinet Member for Adult Social Care submitted a report (copies of which had been circulated) inviting the Cabinet to consider a proposed Adult Social Care commissioning strategy for care homes, nursing care and home care provision.

The Deputy Leader emphasised the importance of providing certainty to providers in relation to fee levels and in developing an ethical commissioning framework. The Leader of the Council stressed the challenges facing adult social care and the need to ensure sustainability and stability in the market, but the need to balance this with the financial pressures on the Council.

RESOLVED – That in relation to Adult Social Care Fee Setting for 2018/19:

·           the approach and recommended fee levels for 2018/19 detailed within the report with respect to both residential, nursing and home support services in the Borough be endorsed and approved;

·           the re-commissioning approach to home support services in 2018/19, and in particular the implementation of an ethical framework for care as detailed in the report be endorsed and approved.

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

Following the announcement of the 2018/19 Provisional Local Government Finance Settlement in December 2017, this report updates the Council’s 2018/19 to 2022/23 Medium Term Financial Plan forecasts and assumptions.

The report will inform the development of a balanced and sustainable budget for 2018/19 and a longer term forecast budget position up to 2022/23.

The report asks that the Cabinet consider a number of proposals in setting the Council’s 2018/19 budget.

The Cabinet is recommended to:

•        Note the details of the 2018/19 Provisional Local Government Finance Settlement and its impact on the MTFP forecasts and assumptions presented in this report;

•        Note, and comment upon as appropriate, the financial forecasts for 2018/19 to 2022/23, and the key issues to be addressed in formulating a response to the financial challenges facing the Council;

•        Consider the use of the additional 1% Council Tax increase flexibility to propose a 2018/19 Council Tax increase of up to 5.99% (i.e. 2.99% increase to the General element and 2% increase to the Adult Social Care Precept element);

•        Consider the use of the additional 1% Council Tax increase flexibility to switch the increases in the General Council Tax and Adult Social Care Precept elements (i.e. 2.99% increase to the General element and 2% increase to the Adult Social Care Precept element);

•        Approve the indicative budget adjustments as presented in this report including the use of the Summer Review adjustments to increase the Council’s Corporate Contingency budgets;

•        Consider the allocation of Corporate Contingency budgets as part of the 2018/19 budget to support the underlying budget pressures within the Children and Family Services and Adult Social Care Portfolios;

•        Consider the use of the one-off available resources to support the Council’s 2018/19 budget, MTFP and Reserves Policy; and

•        Note the 2018/19 balanced budget position (subject to the Final Local Government Finance Settlement to be announced in February 2018) to be presented for approval to the Budget Council meeting on 22 February 2018.

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

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of which had been circulated) updating the Cabinet on the forecasts for the Council’s finances for the period 2018/19 to 2022/23 following the provisional Local Government Finance Settlement announced in December 2017.

The Leader of the Council reported that the government had issued its finalised Local Government Financial Settlement that day, but that it did not appear to be significantly different from the provisional settlement. The government had also announced an additional £150m in funding for Adult Social Care although the details of how this would be distributed and any restrictions on its usage were not yet known.

The Leader also stated that despite the increased flexibility for local authorities to increase Council Tax by an additional 1% without triggering a referendum, the Cabinet would not be proposing to increase Council Tax (including the Adult Social Care precept) by more than 4.99% and that all the funding pressures facing the Council would be managed in the proposals to be considered by the Cabinet. He emphasised that the Cabinet did not wish to add undue additional burdens to the residents given rises proposed for other precepts. The flexibility of the new arrangements however would allow for the Council to collect additional resources that would be allocated to Adult Social Care but could be used to offset pressure in Children’s Services should this be necessary.

The Cabinet Member for Children & Family Services welcomed the additional funding for Adult Social Care, but expressed disappointment that no similar recognition had been given to significant pressures facing Children’s Services and in particular the increases in cost for residential care. The Cabinet Member outlined some of the pressures facing the Council and emphasised that work was being undertaken to try to address this.

The Leader of the Council stressed the importance of longer term financial planning and the need to reduce recurrent expenditure.

RESOLVED – That in relation to the Medium Term Financial Plan - Financial Landscapes and Forecast 2018/19 to 2022/23:-

·         the details of the 2018/19 Provisional Local Government Finance Settlement and its impact on the MTFP forecasts and assumptions presented in the report be noted;

·         the financial forecasts for 2018/19 to 2022/23, and the key issues to be addressed in formulating a response to the financial challenges facing the Council be noted;

·         use not be made of the additional 1% Council Tax increase flexibility to propose a 2018/19 Council Tax increase of up to 5.99% but instead use be made of the additional 1% Council Tax increase flexibility to switch the increases in the General Council Tax and Adult Social Care Precept elements (i.e. 2.99% increase to the General element and 3% increase to the Adult Social Care Precept element);

·         the indicative budget adjustments as presented in this report including the use of the Summer Review adjustments to increase the Council’s Corporate Contingency budgets be approved;

·         the allocation of Corporate Contingency budgets as part of the 2018/19 budget to support the underlying budget pressures within the Children and Family Services and Adult Social Care Portfolios be noted;

·         the use of the one-off available resources to support the Council’s 2018/19 budget, MTFP and Reserves Policy be approved; and

·         the 2018/19 balanced budget position (subject to the Final Local Government Finance Settlement to be announced in February 2018) to be presented for approval to the Budget Council meeting on 22 February 2018 be noted.

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

Over the course of the year the Cabinet has been progressing its growth and reform ambitions to address challenging demand pressures and ensure Stockport can become locally self-financing by 2019/20. 

Most recently it presented a series of proposals across Children and Young Peoples, Place and Corporate and Support services which were approved in December and are now built into the Budget presented elsewhere on this agenda.

This report is the latest update and specifically focusses upon the options presented in November relating to Adult Social Care and Public Health services. The Cabinet has been working on our proposals, understanding from local people and partners their views and further and developing these to reflect this feedback, as well as other considerations or opportunities that have emerged. These are now been presented to Cabinet for further consideration and approval.

The Cabinet are recommended to:

•        Discuss the progress outlined within this report and note the considerations outlined within section.3 in relation to consultation, workforce implications and equality implications;

•        Discuss the updated proposals appended (appendix 4-12) and consider the recommendations below:

Mental Health Review (appendix 10)

-       Note the update and commitment to review Mental Health services during 2018/19

Parking Tariffs (appendix 12):

-       Approve the updated proposal for implementation.

All other proposals

-       Approve the proposals for implementation.

Officer contact: Holly Rae, 0161 474 3014, holly.rae@stockport.gov.uk

A joint report of the Leader of the Council and Cabinet Member for Policy, Finance & Devolution and the Cabinet Member for Reform & Governance submitted a report (copies of which had been circulated) setting out a range of growth and reform proposals to address the challenging demand and financial pressures facing the Council.

The proposals contained in the report had been subject to consultation with the public, staff or stakeholders as necessary, and where appropriate had been revised in light of the feedback received.

A further addendum to the report had been submitted (copies of which were circulated) relating to Appendix 5 (Adult Social Care proposals) and Appendix 12 (Parking Tariffs).

The Cabinet Members for Adult Social Care; Children & Family Services; Communities & Housing, and for Health outlined changes proposed to the proposals within their portfolios arising from consultations.

The Leader of the Council highlighted that the proposals were the second year of a two year budget and that the Cabinet had sought to minimise the impact on front line services and on staff during the first year, but stressed that due to the level of savings the Council was required to make it would not be possible to achieve that without some redundancies. He stated that unfortunately it was projected that 65.5 posts would need to be made redundant, but that it was planned to achieve this through a voluntary and targeted approach to minimise disruption to services.

RESOLVED – That in relation to the Cabinet Response to the MTFP Growth and Reform Programme Update:-

·         the progress outlined within this report and addendum and the considerations outlined within section 3 in relation to consultation, workforce implications and equality implications be noted;

·         approval be given to the updated proposals appended to the report and contained in the addenda and revised appendices, in particular

-      Mental Health Review (appendix 10) - the update and commitment to review Mental Health services during 2018/19 be noted;

-      Parking Tariffs (appendix 12 and addendum) - the further updated proposal be updated for implementation.

-      All other proposals including updated proposals set out in addenda to the report, be approved for implementation.

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

The purpose of the report is to finalise the Cabinet’s 2018/19 Revenue Budget and Capital Programme Investment Plans. It also outlines the Council’s financial outlook and challenges across the medium term period 2018/19 to 2022/23. The report highlights the overarching priorities and desired outcomes upon which the Cabinet has based its budget proposals, and which form the basis of the updated Council Plan included on this agenda.

This report needs to be considered in conjunction with the Borough Treasurer’s report on the Council’s Medium Term Financial Plan (MTFP) for 2018/19 to 2022/23 following the Provisional Local Government Finance Settlement announced by Government.

The Cabinet is recommended to ask the Council Meeting to:

•        Agree the Budget for 2018/19 described in the report and set out in Appendix 2 and 3;

•        Note the risk assessment of the Budget at Appendix 5 and the report of the Borough Treasurer on the adequacy of proposed financial reserves and robustness of the estimates included at Appendix 5;

•        Note and comment upon the financial forecasts for 2018/19 to 2022/23 (Appendix 6), and the key issues to be addressed in formulating a response to the future financial challenges facing the Council;

•        Approve the 2018/19 to 2020/21 Capital Programme and the funding arrangements as described in the report and set out at Appendix 7;

•        Approve the prudential indicators set out in Appendix 8; and

•        Pass the appropriate Council Tax resolutions which produce a Council Tax increase of 4.99% (2.99% General increase and 2% Adult Social Care Precept increase) as illustrated in Appendix 9.

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

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of which had been circulated) inviting the Cabinet to consider it’s proposed 2018/19 Revenue Budget and Capital Programme Investment Plans, outlining the Council’s financial outlook and challenges across the medium term period 2018/19 to 2022/23.

The Leader of the Council emphasised the ambition of the Cabinet in proposing the 2018/19 Capital Programme, in particular to support schemes to build new affordable homes and to implement sustainable transport schemes.

RESOLVED – That in relation to the 2018/19 Cabinet Revenue and Capital Programme the Council Meeting be recommended to:-

•     approve the Budget for 2018/19 described in the report and set out in Appendix 2 and 3;

•     note the risk assessment of the Budget at Appendix 5 and the report of the Borough Treasurer on the adequacy of proposed financial reserves and robustness of the estimates included at Appendix 5;

•     note and comment upon the financial forecasts for 2018/19 to 2022/23 (Appendix 6), and the key issues to be addressed in formulating a response to the future financial challenges facing the Council;

•     approve the 2018/19 to 2020/21 Capital Programme and the funding arrangements as described in the report and set out at Appendix 7;

•     approve the prudential indicators set out in Appendix 8; and

•     pass the appropriate Council Tax resolutions which produce a Council Tax increase of 4.99% (2.99% General increase and 2% Adult Social Care Precept increase) as illustrated in Appendix 9.

Leader of the Council and Cabinet Member for Policy, Finance and Devolution

This comprehensive report proposes the 2018/19 Treasury Management Strategy, Annual Investment Strategy, Minimum Revenue Provision Policy and prudent and sustainable Treasury and Prudential Indicators, which are constructed in compliance with the CIPFA Treasury Management Code of Practice.

The Council has delegated the role of ensuring effective scrutiny of its Treasury Management Strategy to the Corporate, Resource Management and Governance Scrutiny Committee (CRMG).  As such, the views of CRMG were sought and any opinions or suggestions made have been taken into account when formulating the Council's Treasury Management Strategies for 2018/19.

The first part of the report details the Council’s Capital expenditure plans and Strategy which are a key driver to the long-term borrowing aspect of treasury management activity and strategy; these are reflected in a number of prudential and treasury indicators. 

The report develops to show how capital expenditure funded by prudential borrowing is subsequently charged against the Council’s revenue resources in the Minimum Revenue Provision (MRP) Policy Statement.

Fundamentals of the Council’s investment policy, approach to creditworthiness and investment strategies for 2018/19 are included in the Annual Investment Strategy statement.

The report provides an economic commentary and interest rate forecast, detailing likely scenarios for the economy and financial markets in 2018/19 based on current information. 

A key highlights report is provided which summarises the main points of the more comprehensive report.

An Equalities Impact Assessment has been carried out on the Treasury Management Strategy; this is included at Appendix Six.

Cabinet is asked to recommend that the Council Meeting approves

•        The Minimum Revenue Provision Policy for 2018/19;

•        The Capital Expenditure Forecasts and Capital Financing Requirement projections;

•        The Treasury Management Strategy 2018/19;

•        The Treasury and Prudential Indicators and Limits 2018/19-2020/21;

•        The Annual Investment Strategy (AIS) 2018/19.

Officer contact: Lorna Soufian, 0161 474 4026, lorna.soufian@stockport.gov.uk

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of the which had been circulated) inviting the Cabinet to consider the proposed 2018/19 Treasury Management Strategy, Annual Investment Strategy, Minimum Revenue Provision Policy and prudent and sustainable Treasury and Prudential Indicators, constructed in compliance with the CIPFA Treasury Management Code of Practice.

The Leader of the Council emphasised the technical nature of the report, and thanked officers and members for their input into the development of the Strategy.

RESOLVED – That in relation to the 2018/19 Treasury Management Strategy, Annual Investment Strategy and Minimum Revenue Provision Policy the Council Meeting be recommended to approve:-

·         the Minimum Revenue Provision Policy for 2018/19;

·         the Capital Expenditure Forecasts and Capital Financing Requirement projections;

·         the Treasury Management Strategy 2018/19;

·         the Treasury and Prudential Indicators and Limits 2018/19-2020/21;

·         the Annual Investment Strategy (AIS) 2018/19.

To consider a report of the Cabinet Member for Reform & Governance.

The Asset Management Plan (AMP) capital programme is used to carry out upgrade work and improvements to core operational buildings within the Council’s corporate estate. This report provides detail of the AMP capital programme for 2018/19 and sets out the indicative programmes to be delivered through to 2021/22.

The Cabinet is recommended to:

•        approve the implementation of the updated Asset Management Plan Capital programme for 2018/19 and the financing thereof, and the Indicative AMP programme for future years, as set out in the report;

•        approve the application of corporate resources to fund the AMP programme 2018/2019; with the application of funding types (capital receipts and borrowing) being delegated to the Deputy Chief Executive in conjunction with the Estates Strategy Group (ESG);

•        note that the Cabinet receives an annual update report on progress.

Officer contact: Charlotte Cordingley, 0161 474 4240, charlotte.cordingley@stockport.gov.uk

The Cabinet Member for Reform & Governance submitted a report (copies of which had been circulated) inviting the Cabinet to consider the Asset Management Plan capital programme for 2018/19 and the indicative programmes to be delivered through to 2021/22.

Cabinet Members in particular welcomed the inclusion in the Plan of the leisure estate given the scale of the work needed to address historic maintenance demands.

RESOLVED – That in relation to the Asset Management Plan (AMP) Capital Programme 2018/19 – 2022/23:-

·           the implementation of the updated Asset Management Plan Capital programme for 2018/19 and the financing thereof, and the Indicative AMP programme for future years, as set out in the report be approved;

·           the application of corporate resources to fund the AMP programme 2018/2019; with the application of funding types (capital receipts and borrowing) being delegated to the Deputy Chief Executive in conjunction with the Estates Strategy Group (ESG) be approved;

·           the Cabinet receiving an annual update report on progress be noted.

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

The Cabinet is recommended to:-

·           approve the nomination of Councillor Kate Butler to the Greater Manchester Forest Partnership;

·           approve the nomination of Councillor Dickie Davies as the councillor substitute member for the Fostering Panel

Officer contact: Jonathan Vali, 0161 474 3201, jonathan.vali@stockport.gov.uk

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of which had been circulated) inviting the Cabinet to consider nominations of councillors to serve on outside bodies.

RESOLVED – That

·           Councillor Kate Butler be nominated to the Greater Manchester Forest Partnership;

·           Councillor Dickie Davies be nominated as the councillor substitute member for the Fostering Panel.

On:-

(a)  Matters (if any) referred to the Cabinet Meeting

(b)  Any called-in Cabinet Executive Decisions

There were no recommendations to consider.

To consider a joint report of the Cabinet Members for Adult Social Care and for Health.

The Council Cabinet endorsed a number of outline business cases in July 2017 subject to public consultation. This report sets out in detail the response to the consultation and both recommends the adoption of the Business Cases and proposes a process to monitor and review their implementation prior to any decisions being taken to remove capacity from the cute hospital.

The Cabinet is asked to:

•     Consider and scrutinise carefully the feedback from the public consultation, the updated equality impact assessments (EIAs), the views of the Adult Social Care & Health Scrutiny Committee and the proposed response.

•     Approve the recommendation at 4.5.2: Approve the approach described in the previously endorsed outline business cases and proceed to implementation subject to recommendations as set out in Section 5 of this report.

•     Adopt a series of recommendations regarding our approach to implementation in light of the feedback and as set out in section 5.1.2: Adopt the 7 recommendations arising from the public’s feedback.

•     Approve the proposals to review progress as described at section 6.1.2: The Health & Care Integrated Commissioning Board (HCICB) will consider in public a report on progress in addressing the recommendations as set out in section 5 of this paper and the EIA action plans. This report will be presented in September 2018 and reviewed again in July 2019.

Officer contact: Andrew Webb, 0161 474 3808

A joint report of the Cabinet Members for Adult Social Care and for Health was submitted (copies of which had been circulated) inviting the Cabinet to consider the response to the consultation on the Stockport Together outline business cases on new models of care. The report recommended the adoption of the Business Cases and proposed a process to monitor and review their implementation prior to any decisions being taken to remove capacity from the acute sector.

The Cabinet Member for Health emphasised the significance of the decision before the Cabinet and its long term commitment for the Council in delivering vital services through new models of care, partly as a means of addressing future shortfalls in funding for health and social care but also because these would be improvements to how care is provided.

The Cabinet Member referred specifically to the consultation feedback, and questions raised about the validity of the process. He stated that the process had been undertaken following the Consultation Institute Guideless to ensure it was robust. He also highlighted that three quarters of responses had been supportive of the business cases by a ratio of 3:1. He acknowledged that there was a more finely balanced response to the issues around bed management but that various tests would need to be met before any decisions taken on bed capacity.

The Cabinet Member further reported on issues and caveats raised by the Stockport Clinical Commissioning Group in their consideration of the report, including the need for greater resident involvement; ensuring involvement with minority and hard-to-reach groups; third sector involvement in the new models, and mental health investment.

The Cabinet Member also highlighted the workforce challenge facing partners, in terms of numbers, skills and culture change; the challenges of data and information sharing, particularly where third sector organisations were involved.

The Deputy Leader of the Council and Cabinet Member for Adult Social Care thanked councillors, particularly from the Scrutiny Committee, for their input and engagement with the development of the programme over a number of years.

The Leader of the Council stressed the need to ensure the plans for implementation were able to respond to changing circumstances and evidence. He acknowledged that there were risks, particularly financial ones, in the new models of care but that these were being managed and were unavoidable if partners were to address the serious financial and demographic pressures ahead.

Cabinet Members paid tribute to the work of officers across a range of partner organisations for their hard work in developing the business cases thus far.

RESOLVED – That in relation to the Stockport Together Business cases:-

·           the feedback from the public consultation, the updated equality impact assessments (EIAs), the views of the Adult Social Care & Health Scrutiny Committee and the proposed response be noted;

·           approval be given to the recommendation at 4.5.2 to approve the approach described in the previously endorsed outline business cases and proceed to implementation subject to recommendations as set out in Section 5 of this report;

·           that the seven recommendations arising from the public’s feedback set out at Section 5.1.2 onward be approved

·           approval be given for progress to be reviewed as described at section 6.1.2 and for the Health & Care Integrated Commissioning Board to consider in public a report on progress in addressing the recommendations as set out in section 5 of this paper and the EIA action plans in September 2018 and reviewed again in July 2019 be approved.