Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 18 December 2018.

The Minutes (copies of which had been circulated) of the meeting held on 18 December 2018 were approved as a correct record and signed by the Chair.

Councillors and officers to declare any interests which they have in any of the items on the agenda for the meeting.

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 matters within its powers and duties, subject to the exclusions set out in the Code of Practice.

Four public questions were submitted.

(i)     The first question asked what the latest outturn forecast costs were for the A6 to Manchester Airport Relief Road scheme.

       The Cabinet Member for Economy & Regeneration reiterated that the scheme budget remained £290m, and that the costs of the scheme fluctuated over time as costs were incurred and issues settled, such as compensation claims. This information could be used to inform the A6-M60 Relief Road Business Case, as would information from other road schemes and industry analysis.

       In response to a supplementary question about why the Council was not making this information more readily available, the Cabinet Member stated that there was no attempt to hide this information but that because of the constant fluctuations in costs it was not practical to provide this information.

(ii)    The second question asked whether the Council would be submitting a further bid for funding for the proposed A6-M60 Relief Road to Department of Transport Local Major Road fund through Transport for the North.

       In response the Cabinet Member for Economy & Regeneration clarified that the funding window was open until July of this year. She stated that the Council was assessing whether the proposed scheme would meet the funding criteria.

(iii)  The third question referred to the proposals to cease funding for the 300 Bus and asked whether there had been consultation with vulnerable users of the service.

       The Cabinet Member for Economy & Regeneration responded by confirming that the Council had undertaken extensive consultation with the public, publicising this widely, including on the buses themselves, and providing both online and paper questionnaires. The responses to that consultation, detailed in the report on the agenda, unsurprisingly had indicated that those who used the service valued it and would prefer for it to remain. The responses indicated a wide range of reasons people used the service.

       The Cabinet Member reiterated that the Cabinet had aimed to minimise the impact of Government funding reductions on front line services. The current costs of this bus service (c£250k) were likely to increase were the contract to be renewed and to do so would mean finding savings elsewhere. Given the rising costs and demand for services for vulnerable residents in both children’s and adult services, this the bus service was less damaging than the alternatives. Whilst the Cabinet recognised the value of the bus service, and would have maintained it if it could, this was not of the same magnitude of importance as other Council services.

The Leader of the Council added that the report set out a number of mitigating measures being proposed in response to the comments received in the consultation, as was the Cabinet’s approach to service change. Publicity would be provided about the changes, alternative services and rerouting of other bus services, and the situation would be kept under review.

(iv)  The final question referred to a recent Nuffield Trust report that indicated limited success of health and social care integration initiatives at reducing unnecessary hospital admissions and asked whether there was a risk assessment for the proposals the Cabinet was considering in relation to developing a single commissioning function with the Clinical Commissioning Group (CCG).

       The Cabinet Member for Health clarified that the current risk share arrangements with the CCG was currently in the region of £4.6m with approximately £2.4m having been drawn down to support investment in health and social care services. Specifically in relation to the development of a single commissioning function, the Cabinet Member stated that while this was an aspiration this was not an approach that had been agreed, and as such there was no risk analysis, nor risk share agreement. In the event of there being such agreement to enter into such an  ...  view the full minutes text for item 4.

To consider whether it is in the public to exclude the public during consideration of the following agenda items which contain information “not for publication” and to consider any representations received to the notice of the intention to consider exempt information at this meeting.

At the time of publication no representations have been received.

RESOLVED – That in order to prevent the disclosure of information which was not for publication, the disclosure of which would not be in the public interest, the public be excluded from the meeting during consideration of the exempt report of the following item, in the event that the content of that report needing to be discussed:-

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

The Third Update Corporate Performance and Resource Report (CPRR) provides an update on progress in delivering the Council’s priority outcomes and budget during the third quarter of the year (October to December).

As previously agreed with Cabinet and Scrutiny Chairs, the CPRR is presented in a ‘lighter touch’ format, focusing on highlights and exceptions since the mid-year report. It includes hyperlinks to the seven Portfolio Reports recently considered by Scrutiny Committees. References are also included to related information such as updates on the Corporate Risk Register and Greater Manchester Strategy which have been published elsewhere.

The Leader’s Third Update Report reflects on achievements, key issues, events and changes since the Mid-Year Report, including key activity at GM level. 

Cabinet is asked to:

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

·         Note and comment on the new format of the report;

·         Approve the virements to the Revenue Budget set out in 2.2.3;

·         Note the cash limit and non-cash limit forecast positions for 2018/19 as set out in 2.3.1;

·         Note the Dedicated Schools Grant and Housing Revenue Account forecast positions as set out in 2.4 and 2.5;

·         Note the position on reserves and balances as set out in Appendix 4;

·         Note the forecast position for the Collection Fund as set out in 2.6;

·         Note the forecast position for the 2018/19 Capital Programme as set out in 3.1;

·         Note the re-phasing of capital schemes during the quarter as set out in 3.3;

·         Approve the proposals for resourcing and additional resources required for the Capital Programme as set out in 3.5;

·         Approve the 2018/19 Capital prudential indicators and resourcing requirements as set out in 3.6 and 3.7;

·         Note the Treasury Management review and activity in Q3 as set out in section 4; 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 an update on the delivery of the Council’s Priority Outcomes and budget since the mid-year update, with particular focus on the third quarter of 2018/19 (October to December).

The Leader’s third update report was also submitted, reflecting on achievements, key issues, events and activity at a Greater Manchester level.

The Leader highlighted the following issues:-

·           Progress was improving in achieving performance targets.

·           The finalised Local Government Financial Settlement was in line with the provisional settlement and while one-off funding was welcomed, it was not sufficient to provide sustainable relief for the pressure on children and adult services.

·           The Government announcement halting the roll-out of Universal Credit was welcomed.

·           AGMA and the GMCA had recently begun the next phase of consultation on the revised Greater Manchester Spatial Framework that included a reduced housing requirement, had less impact on the greenbelt and proposed increased building on brownfield sites. Public engagement had been significant during the first phase of consultation and it was hoped the public would continue to engage.

·           The Government had given the GM Mayor the ability to increase the police precept up to £24. Plans were being developed to identify how the resources could be utilised most effectively.

·           The Armistice Commemorations that had taken place in the run up and on 11 November 2018 had been very successful, and all those involved were commended for their efforts.

Cabinet Members were invited to highlight any specific issues within their portfolios.

The Cabinet Member for Economy & Regeneration reiterated earlier comments about the success of Armistice Commemorations and highlighted the lasting impact of this work in developing partnerships with a range of cultural organisations.

The Cabinet Member for Children & Families reported on a Greater Manchester project to assess the sufficiency of care and foster care placements in the conurbation to accommodate demand from the ten local authorities given the increased demands locally and from local authorities outside of GM placing children within the area.

RESOLVED – That in relation to the Corporate Performance and Resources Report for the third quarter of 2018/19:

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

·         the virements to the Revenue Budget set out in 2.2.3 of the report be approved;

·         Note the cash limit and non-cash limit forecast positions for 2018/19 as set out in 2.3.1 of the report be noted;

·         the Dedicated Schools Grant and Housing Revenue Account forecast positions as set out in 2.4 and 2.5 of the report be noted;

·         the position on reserves and balances as set out in Appendix 4 of the report be noted;

·         the forecast position for the Collection Fund as set out in 2.6 of the report be noted;

·         the forecast position for the 2018/19 Capital Programme as set out in 3.1 of the report be noted;

·         the re-phasing of capital schemes during the quarter as set out in 3.3 of the report be noted;

·         the proposals for resourcing and additional resources required for the Capital Programme as set out in 3.5 of the report be approved;

·         the 2018/19 Capital prudential indicators and resourcing requirements as set out in 3.6 and 3.7 of the report be approved; and

·         the Treasury Management review and activity in Q3 as set out in section 4 of the report be noted.

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

This report provides the first six monthly update on the Greater Manchester Strategy (GMS) Implementation Plan and performance dashboard.

Cabinet is asked to;

·         note and agree the updated GMS Implementation Plan and Performance Dashboard;

·         consider overall progress towards the achievement of the GMS 2020 ambitions and targets, including the specific actions and updates relating to Stockport; and

·         agree the updated process for future iterations of the Implementation Plan and Performance Update is reflected in future Corporate and Portfolio Reports.  

Officer contact: Holly Rae, 0161 474 3014, Holly.rae@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 the first six monthly update on performance against the Greater Manchester Strategy (GMS) Implementation plan.

The Leader of the Council emphasised the interconnectedness of the GMS and the Council’s own performance framework and how, wherever possible, the two had been synchronised.

Cabinet members suggested that data from this report could helpfully be reported to scrutiny committees other that Corporate, Resource Management & Governance.

Cabinet members also discussed performance in relation to dental health and the benefits of the Greater Manchester Health & Social Care Partnership having greater control over this; ongoing work to reduce smoking in pregnancy; greater research and action to reduce harm from drinking during pregnancy.

RESOLVED – That in relation to the Greater Manchester Strategy Implementation Plan and Performance Dashboard first update:-

·         the updated Plan and Dashboard be noted and approved

·         overall progress towards the achievement of the Strategy 2020 ambitions and targets, including the specific actions and updates relating to Stockport be noted;

·         the updated process for future iterations of the Implementation Plan and Performance Update being reflected in future Corporate and Portfolio Reports be agreed; and

·         that further consideration be given appropriate mechanisms for sharing relevant data with scrutiny committees.

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 annual detailed Portfolio Agreements.

The 2019/20 Council Plan reflects on performance to date and policy priorities for the future. It continues to be aligned with the longer-term vision and five shared outcomes set out in the Borough Plan. It also incorporates the key principles identified by Cabinet, underpinned by an inclusive vision for growth and reform. The Greater Manchester Strategy priorities continue to be integrated into the Plan. The strategic narrative for the Plan builds upon these but also incorporates the medium term strategy and its five key themes which were introduced by Cabinet during 2018. These are central to the plan and its organisational delivery.

The Plan is accompanied by an Equality Impact Assessment. This is largely a summary of the high-level position, with more detailed EIAs included with working papers previously considered by Cabinet and Scrutiny.

The Cabinet is asked to endorse the 2019/20 Council Plan for submission to the Budget Council Meeting.

Officer contact: Holly Rae, 0161 474 3014, holly.rae@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 2019/20 for submission to the Budget Council Meeting on 21 February 2019.

The Leader of the Council emphasised that the draft Plan was aligned to the Cabinet’s agreed long term vision, outcomes set out in previous Council Plans, and the Greater Manchester Strategy. The Leader also highlighted the opportunities for reform through Greater Manchester devolution, through the Cabinet’s commitment to its thematic approach to the budget, and the importance of the ambitious capital programme.

RESOLVED - That the Council Meeting be recommended to approve the 2019/20 Council Plan.

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

The report recommends the rent and service charge levels for the Housing Revenue Account (HRA) in 2019/20 and provides a recommended HRA Budget for 2019/20.

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

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

·         An increase of 3.8% for rents of shared ownership properties;

·         Services charge increases as outlined in Section 3;

·         The Housing Revenue Account Budget for 2019/20 as set out in Appendix 1.

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

The Cabinet Member for Communities & Housing submitted a report (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 2019/20.

The Cabinet Member highlighted that this would be the last year of rent reductions and that a rent strategy was being developed. She further highlighted the higher than anticipated demand for right to buy properties and the impact this may have on housing supply, although ever effort was being made to provide more affordable homes.

The Leader of the Council highlighted the Council’s ambitious approach to housing investment.

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 3.8% for rents of shared ownership properties;

·                service charge increases as outlined in Section 3 of the report;

·                the Housing Revenue Account Budget for 2019/20 as set out in Appendix 1 of the report.

To consider a report of the Deputy Leader of the Council and Cabinet Member for Adult Social Care.

This report outlines the commissioning proposals and 2019/20 fee setting for the most significant areas of externally commissioned service provision for adults with care needs: Care Homes in Stockport; Home Support to enable people to live in their homes for longer; Day Care Services and Learning Disability Services.

The report is designed to be considered in the context of budget setting proposals and is intended to clarify the fee changes position for 2019/20 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 asked to endorse and agree the approach set out in this paper; and recommend that the Council Meeting approves the proposed uplift at the meeting in February 2019.

Officer contact: Vincent 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 the 2019/20 fee setting recommendations for the most significant areas of externally commissioned services within Adult Social Care.

The Deputy Leader provided an overview of the process for reviewing fees, and some of the challenges facing the local provider market and the Council in commissioning these services, notably the increasing demand for care.

The Leader of the Council acknowledged the significance of the proposals for fee uplift in the report to allow for the provision of the real living wage, and welcomed the ongoing impact of the Ethical Commissioning Framework, particularly in the context of the financial pressures on the Council.

RESOLVED – That the Annual Residential / Nursing and Home Care Fee setting approach, including fee uplifts as set out in the report, be approved.

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

Following the announcement of the 2019/20 Provisional Local Government Finance Settlement in December 2018, this report updates the Council’s 2019/20 to 2022/23 Medium Term Financial Plan (MTFP) forecasts and assumptions.

The report will inform the Cabinet of local and national changes impacting on the Council’s MTFP and make recommendations for the setting of a balanced and sustainable budget for 2019/20 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 2019/20 Budget and MTFP.

The Cabinet is recommended to:

·           Note the details of the 2019/20 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 2019/20 to 2022/23, and the key issues to be addressed in formulating a response to the financial challenges facing the Council;

·           Note and approve the indicative budget adjustments presented in this report resulting in available resources of £2.102m in 2019/20 and the revised MTFP;

·           Consider and decide upon the options to be taken to allocate the £2.102m available resources to set a balanced budget for 2019/20;

·           Approve the allocation of corporate contingency budgets as part of the 2019/20 budget setting process;

·           Consider the use of the one-off available resources to support the Council’s investment decisions, MTFP and Reserves Policy; and

·           Approve the use of £0.500m of one-off available resources to support the funding of continuing expenditure pressures of Stockport Together new models of care.

Officer contact: Jonathan Davies, 0161 218 1025, 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) updating the Cabinet on the forecasts for the Council’s finances for the period 2019/20 to 2022/23 following the provisional Local Government Finance Settlement announced in December 2018.

The Leader of the Council provided an overview of the report, emphasising:

·         the prudence of the approach adopted through the summer review of the Medium Term Financial Plan (MTFP) assumptions and the identification of additional resources and pressures;

·         recent announcements on the final Local Government Finance Settlement, including additional one-off resources for adults and children’s services;

·         confirmation from Government on the permissible increases in Council Tax, adult social care and police precepts, and on the continuation of the New Homes funding;

·         projections for Business Rates income and the impact of a maximum Council Tax increase;

·         projections for outturn positions at year-end and possible uses for these resources, including support for SEND investment and Merseyway (emphasising that such investment would not be the detriment of funding for services);

·         proposed extra resources to address pressures in adults and children’s services; double running of services where reform activity was taking place; enhancing asset and estate management functions; pressure on public realm activity;

·         welcomed support from all political groups for the continuing work to establish a Mayoral Development Corporation for Town Centre West;

·         disappointment that there had been no further announcements in relation to long-term local government funding nor the much anticipated green paper on adult social care.

RESOLVED – That in relation to the Medium Term Financial Plan - Financial Landscapes and Forecast 2019/20 to 2022/23:-

·         the details of the 2019/20 Provisional Local Government Finance Settlement and its impact on the MTFP forecasts and assumptions set out in the report be noted;

·         the financial forecasts for 2019/20 to 2022/23, and the key issues to be addressed in formulating a response to the financial challenges facing the Council be noted;

·         the indicative budget adjustments set out in the report resulting in available resources of £2.102m in 2019/20 and the revised MTFP be noted and approved;

·         the allocation of corporate contingency budgets as part of the 2019/20 budget setting process be approved;

·         the use of one-off available resources to support the Council’s investment decisions, MTFP and Reserves Policy be supported; and

·         the use of £0.500m of one-off available resources to support the funding of continuing expenditure pressures of Stockport Together new models of care be approved.

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

This report is the latest update on the Cabinet’s medium term strategy and the first phase of its programme including a suite of proposals for 2019/20.

Over the course of the year the Cabinet have been progressing its medium term strategy. This strategy frames the choices the Council will need to make over the coming years. As the strategy has progressed the Cabinet have introduced the first phase of its programme through a suite of proposals – initially introduced in October 2018.

Since this point the Cabinet have worked closely with residents, partners, members and colleagues throughout the council to develop the proposals. In December, four proposals were presented for consideration and approval while consultation exercises and further development of remaining proposals was undertaken.

Within this report the Cabinet outline the current financial context, provide an update on the medium term strategy, the approach taken to seeking and understanding views from local people, and, presenting the remaining proposals for the first phase of our medium term programme for consideration and approval.

The Cabinet is asked to:

(i)     Discuss and note the Cabinet’s position in relation to the MTFP and Budget (section.2)

(ii)    Discuss the progress outlined within this report and note the considerations outlined in relation to consultation, equality implications and workforce implications (sections 3 and 4).

(iii)  Consider and approve for implementation the updated proposals appended (Appendices 2-9) to this report, namely:

·           Proposal.1 - Children’s and Education (Appendix.2)

·           Proposal.4 – Community Safety Services (Appendix.4)

·           Proposal.6 - Support and Governance (Corporate Governance; ASC Support Functions; Library Management Efficiencies) (Appendix 6)

·           Proposal.10 - Asset rationalisation of current buildings and former operational buildings (Appendix.9)

·           Proposal.11 - Additional income from operational buildings (Appendix.9)

·           Proposal.12 - Exit rented accommodation and changes to other leased accommodation commitments (Appendix.9)

·           Proposal.13 - Review and disposal of operational and non-operational land and other assets (Appendix.9)

(iv)  Note the following commitments and approve for implementation the updated proposals:

(a)   Proposal.3 - Support Funds Coordination (Appendix.3)

·      Consider the consultation responses and updated proposal and approve this for implementation;

·      Note the commitment to undertake a broad review and engagement exercise of support and crisis funding during 2019/20 and to return to Cabinet with a proposed model;

(b)   Proposal.5 - Stockport Local Transport (Appendix.5)

·      Consider the consultation responses and updated proposals and approve these for implementation;

(c)   Proposal.7 – Public Realm (Appendix 7)

·      Consider the consultation responses and updated proposal for implementation.

·      Note the commitment to progress ongoing engagement with key stakeholders.

Officer contact: Holly Rae, 0161 474 3014, holly.rae@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 an update on its medium term strategy and the first phase of its programme, including a suite of proposals for 2019/20.

The Leader of the Council emphasised the increasingly difficult budget setting challenges, but highlighted the extensive public consultation undertaken on the proposals set out in the report and the positive response of the Cabinet to the feedback. The Leader stressed that the prudence of taking a two-year approach to the budget that would allow for thorough engagement with the public and stakeholders to ensure that proposals could be refined and any negative effects properly mitigated.

The Leader of the Council stressed that the Council was now facing extremely difficult decisions due to the pressure on resources, but commended the Cabinet and officers in developing proposals that minimised the impact of reductions on front line services. He acknowledged that there would be an impact on staffing within the Council and stressed the key role unions played in minimising that impact.

The Cabinet Member for Reform & Governance stressed the importance of the Cabinet’s previous decisions on the approach to the budget that provided a clear framework to develop proposals and engage with stakeholders.

The Leader referred to the three elements of the Cabinet’s budget, namely the robust assessment of the Council’s finances, reforming services, and utilisation of Council Tax. Specifically in relation to the last element the Leader stressed that while it was important to protect services for residents, it was also important to protect residents from increases in regressive taxation. He stated that because the Council had been forced to increase Council Tax for a number of years, the Cabinet was proposing an increase in Council Tax of only 2.75% (below the level assumed by the government) in order to strike a better balance for residents, despite this meaning foregoing future income.

The Cabinet Member for Economy & Regeneration stressed the importance of the Cabinet’s investment in the Town Centre as a means to deliver jobs and prosperity that would ultimately benefit the whole of the borough.

RESOLVED – That in relation to the Cabinet’s Medium Term Financial Strategy – 2019/20 programme:-

·                the Cabinet’s position in relation to the MTFP and Budget as set out at Section 2 of the report be noted

·                progress outlined within this report and the considerations outlined in relation to consultation, equality implications and workforce implications as set out in Sections 3 and 4 be noted;

·                approval be given to the implementation of the updated proposals appended to the report as:

·         Proposal.1 - Children’s and Education (Appendix.2)

·         Proposal.4 – Community Safety Services (Appendix.4)

·         Proposal.6 - Support and Governance (Corporate Governance; ASC Support Functions; Library Management Efficiencies) (Appendix 6)

·         Proposal.10 - Asset rationalisation of current buildings and former operational buildings (Appendix.9)

·         Proposal.11 - Additional income from operational buildings (Appendix.9)

·         Proposal.12 - Exit rented accommodation and changes to other leased accommodation commitments (Appendix.9)

·         Proposal.13 - Review and disposal of operational and non-operational land and other assets (Appendix.9)

·                in light of consultation responses, approval be given to the following updated proposals, and additional commitments made:

·         Proposal.3 - Support Funds Coordination (Appendix.3)

o     undertake a broad review and engagement exercise of support and crisis funding during 2019/20 and to resubmit to the Cabinet with a proposed model;

·         Proposal.5 - Stockport Local Transport (Appendix.5)

·         Proposal.7 – Public Realm (Appendix 7)

o    commit to ongoing engagement with key stakeholders

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

The purpose of the report is to finalise the Cabinet’s Revenue Budget and Capital Programme for 2019/20. It also outlines the Council’s financial outlook and challenges across the medium term period 2019/20 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 elsewhere on this agenda.

This report needs to be considered in conjunction with the Borough Treasurer’s MTFP Update report on the Council’s Medium Term Financial Plan (MTFP) for 2019/20 to 2022/23 following the Provisional Local Government Finance Settlement (PLGFS) announced by Government (included elsewhere on this agenda). The Borough Treasurer’s MTFP Update report clearly sets out the budget challenges facing the Council highlighting the risks which could have a significant impact on the Council’s financial position in the medium term.

This report also takes account of other reports included on this agenda as follows:

·                The Corporate Performance and Resources Final Update report for 2018/19 including an update of the Council’s Capital Programme taking account of the Quarter 3 2018/19 Capital Programme monitoring and the Cabinet’s medium term capital investment plans;

·                The Council’s 2018/19 Treasury Management Strategy, Annual Investment Strategy and Minimum Revenue Provision Policy;

·                The Council’s Capital Strategy; and

·                The Cabinet’s Our Medium Term Strategy and Budget Choices 2019/20 report.

The updated MTFP forecasts take account of a number of factors including:

·                The 2018/19 Quarter 3 revenue and capital budget monitoring position;

·                The issues, challenges and financial prospects facing the Council in 2019/20 and the following three years;

·                The proposed 2019/20 Council Tax increase of 2.99% announced at the Cabinet by in October 2018;

·                The Borough Treasurers report which identifies available resources to support the Council’s investments and MTFP;

·                The 2018 Autumn Budget  announced by Government on 29 October 2018;

·                The 2019/20 Provisional Local Government Finance Settlement announced by Government on 13 December 2018;

·                The Council Tax Taxbase approved at the Council meeting on 17 January 2019; and

·                The Cabinet saving proposals for 2019/20.

The Cabinet is asked to recommended that the Council Meeting:

·         Agree the Budget for 2019/20 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 2019/20 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 2019/20 to 2021/22 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 2.75% (1.75% General increase and 1% Adult Social Care Precept increase) as illustrated in Appendix 9.

Officer contact: Jonathan Davies, 0161 218 1025, 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) inviting the Cabinet to consider its proposed 2019/20 Revenue Budget and Capital Programme investment plans, outlining the Council’s financial outlook and challenges across the medium term period 2019/20 – 2022/23.

The Leader of the Council emphasised that the proposals contained in the report represented the culmination of a number of strands of work that had been considered in reports earlier in the meeting. In particular he highlighted the importance of the Capital Programme in supporting the Council’s aspirations and ambitious reform programme. He further reported that the proposals also included resources to be set aside in preparation for any consequences that may arise from a no-deal ‘Brexit’.

RESOLVED – That in relation to the 2019/20 Cabinet Revenue Budget and Capital Programme, the Council Meeting be recommended to:-

•        approve the Budget for 2019/20 described in the report and set out in Appendix 2 and 3;

•        note the risk assessment of the Budget at Appendix 5 of the report 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 2019/20 to 2022/23 (Appendix 6 of the report), and the key issues to be addressed in formulating a response to the future financial challenges facing the Council;

•        approve the 2019/20 to 2021/22 Capital Programme and the funding arrangements as described in the report and set out at Appendix 7 of the report;

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

•        pass the appropriate Council Tax resolutions which produce a Council Tax increase of 2.75% (1.75% General increase and 1% Adult Social Care Precept increase) as illustrated in Appendix 9 of the report.

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

This report proposes the 2019/20 Capital Strategy, which is written in accordance with the CIPFA Prudential Code.

The Strategy provides a framework for the Council’s capital investment plans, ensuring effective planning, option appraisal, risk management and governance processes.  It is a high-level overview of capital investment offering Members sufficient details to understand how stewardship, value for money, prudence, sustainability and affordability will be secured.

The report includes details of the 2019/20 Capital Programme and sets out the prudential indicators, which demonstrate that the Council’s capital investment plans are affordable, prudent and sustainable.  In addition, future plans in key areas of major capital investment have been included.

The Cabinet is asked to recommend to the Council Meeting that it approve:

•        Capital Prudential Indicators:

-        Capital expenditure forecasts;

-        Capital Financing Requirement projections; and,

-        Ratio of financing costs to net revenue stream.

•        The Capital Strategy 2019/20

Officer contact: Jonathan Davies, 0161 218 1025, 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) inviting the Cabinet to consider the 2019/20 Capital Strategy, developed in accordance with the CIPFA Prudential Code, which provided a framework for the Council’s capital investment plans.

RESOLVED – That in relation to the 2019/20 Capital Strategy, the Council Meeting be recommended to approve:-

(i)    Capital Prudential Indicators

·         Capital expenditure forecasts;

·         Capital Financial Requirements projections; and

·         Ratio of financing costs to new revenue stream.

(ii)  The Capital Strategy 2019/20.

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

This comprehensive report proposes the 2019/20 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 2019/20.

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 2019/20 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 2019/20 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 2019/20;

•      The Capital Expenditure Forecasts and Capital Financing Requirement projections;

•      The Treasury Management Strategy 2019/20;

•      The Treasury and Prudential Indicators and Limits 2019/20-2021/22;

•      The Annual Investment Strategy (AIS) 2019/20.

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 which had been circulated) inviting the Cabinet to consider the proposed 2019/20 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.

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

·           the Minimum Revenue Provision Policy for 2019/20;

·           the Capital Expenditure Forecasts and Capital Financing Requirement projections;

·           the Treasury Management Strategy 2019/20;

·           the Treasury and Prudential Indicators and Limits 2019/20-2021/22; and

·           the Annual Investment Strategy (AIS) 2019/20.

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 2019/20 and invited them to approve the local funding formula models to be used to determine the individual 2019/20 budgets for early years providers and schools in Stockport.

The Cabinet is asked to:

(i)     Note the details of the Education Funding Settlement for 2019/20.

(ii)    Approves the construction of the early years budget as per section 4.5  and the updated 2019/20 local funding formula for schools as detailed in the table(s) in section 7.2 which will form the basis of the calculation of 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

The Cabinet Member for Education submitted a report (copies of which had been circulated) updating the Cabinet on key announcements made by the Department for Education on the education funding settlement for 2019/20 and inviting the Cabinet to consider the local funding formula models to be used to determine the individual 2019/20 budgets for early years providers and schools in Stockport.

The Cabinet Member summarised the key elements of the report, and highlighted that there had been no agreed National Funding Formula so there had been agreement to continue with existing local formulae. He further commented that schools were being forced to bear increasing costs meaning that they were faced with real-term cuts in funding.

The Cabinet Member specifically highlighted the previously agreed SEND investment and that a decision was awaited from the government on whether the Council was able to proceed in its planned expansion of SEND secondary school provision.

The Cabinet Member and Leader of the Council welcomed the continued support and engagement of schools through the Schools Forum in making best use of the increasingly stretched funding.

RESOLVED – (1) That the details of the Education Funding Settlement for 2019/20 be noted.

(2) That the construction of the early years budget as per section 4.5 of the report and the updated 2019/20 local funding formula for schools as detailed in the table(s) in section 7.2 be approved to form the basis of the calculation of school budgets and be notified to the Department for Education in accordance with statutory requirements.

To consider a joint report of the Leader of the Council and the Cabinet Member for Reform & Governance

This report reprises the purpose and objectives of a place-based approach to commissioning that have been outlined in previous Cabinet reports and updates on recent developments to deliver such an approach, working both internally within the Council and with wider partners.

Due to the pressure on health and social care this report further outlines the Cabinet’s position on the consideration and development of a new Single Commissioning Function (SCF) for health and care in Stockport.  Across Greater Manchester the ambition is for single commissioning functions for health and social care and it is the view of the Cabinet that a SCF in Stockport is key to delivering the shared ambition of the Council and wider health and care system partners. This aims to create a more sustainable health & care system driven by improved health outcomes, reduced health inequalities and less reliance on bed-based care.

The Cabinet is invited to:

·         agree to  the potential for an SCF on health and care to enable prevention-focussed, whole population commissioning that will reduce health inequalities, and improve healthy life expectancy and health outcomes for people in Stockport and engage in Cabinet workshops that considers the options and implications of single commissioning on the Council.

·         agree the position on SCF governance arrangements, directing the Deputy Chief Executive to progress joint working to advance this position, as outlined above in a phased approach, keeping the cabinet updated and ensuring appropriate decision making at critical points.

·         note that these arrangements do not infer on Councillors any new or additional responsibilities or duties in respect of the management or governance of health services in Stockport; nor do they infringe in any way the unity of the National Health Service.

Officer contact: Laureen Donnan, 0161 474 3180, Laureen.donnan@stockport.gov.uk

A joint report of the Leader of the Council and of the Cabinet Member for Reform & Governance was submitted (copies of which had been circulated) reprising the Cabinet of its agreed aspiration for a place-based approach to commissioning, particularly in relation to health and social care, and setting out the Council’s position on a preferred model for a single commissioning function. The report provided an update on recent development to deliver this preferred approach.

The Cabinet Member for Health outlined the background to the report, including the signing of the section 75 agreement between the Council and Clinical Commissioning Group (CCG) to allow for joint commissioning of services from a pooled budget. Both organisations had aspired toward a single commissioning arrangement, similar to the model adopted in Tameside, with a single Chief Executive / Chief Accountable Officer for both organisations. The CCG had now begun the process for appointing a Chief Accountable Officer with a health background.

The Cabinet Member stated that the Council would not be embarking on an expansion of the pooled budget through the Section 75 agreement unless it could be satisfied that it would retain democratic oversight over its resources raised through taxation. The Council was currently bearing the risk for its own resources within the existing pool and it was the expectation that the CCG would do the same.

The Cabinet Member also reported that the Council, CCG and the Greater Manchester Health & Social Care Partnership had agreed to undertake a review of Stockport Together Governance that may provide greater certainty on the way forward.

Cabinet members stressed that while the aim remained a single commissioning function this may be a long term aspiration until the Council’s governance concerns could be resolved and all groups on the Council were supportive.

Specific comment was made of the recent SEND Review and the highlighted weaknesses in joint commissioning, that both organisations had accepted and made progress in addressing. It was suggested that in the short term there needed to be a wider review of our existing joint commissioning arrangements.

Cabinet members stressed that under the proposals set out in the report that the Council’s statutory duties would remain the same, and that it would not be bearing any further responsibilities for the functioning of the wider health and social care system.

RESOLVED – That in relation to a single commissioning function:-

·         the potential for a single commissioning function for health and care to enable prevention-focussed, whole population commissioning that would reduce health inequalities, and improve healthy life expectancy and health outcomes for people in Stockport be agreed, and engagement in Cabinet workshops to consider the options and implications of single commissioning on the Council be supported;

·         the position on single commissioning function governance arrangements be agreed, and the Deputy Chief Executive be requested to progress joint working to advance this position, as outlined in the report, in a phased approach, ensuring the Cabinet was updated and ensuring appropriate decision making at critical points;

·         note that these arrangements do not confer on councillors any new or additional responsibilities or duties in respect of the management or governance of health services in Stockport; nor do they infringe in any way on the unity of the National Health Service.

·         current joint commissioning arrangements be reviewed to ensure they were operating as effectively as possible within the agreements in place with partners.

To consider a report of the Leader of the Council.

The Cabinet it invited to note:-

·         the decisions of the Greater Manchester Combined Authority (GMCA) held on 14 December 2018;

·         the decisions of the Joint GMCA and AGMA Executive Board held on 11 January 2019.

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) setting out decisions taken by the Greater Manchester Combined Authority (GMCA) in December 2018 and the Joint GMCA/ AGMA meeting in January 2019.

The Leader of the Council highlighted the following decisions:-

·         the publication of the revised Greater Manchester Spatial Framework as part of the next phase of consultation;

·         agreement to begin consultation on the Mayoral Development Corporation for Town Centre West;

·         an update on the Clean Air Plan and agreement to undertake a full analysis of the implications of proposals prior to submission to government and in advance of further public consultation;

·         the Greater Manchester Children’s Plan;

·         the use of Housing Development surpluses to support development of more affordable homes.

RESOLVED – That the decisions be noted.

On:-

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

(b)  Any called-in Cabinet Executive Decisions

There were none to consider.

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

Manchester Airport is seeking to bring forward a Car Parking investment scheme via funding through an additional equity investment into Manchester Airport Group (MAG). This report sets out the background and detail of the proposal.

(NOTE: The detail of the investment proposal and due diligence undertaken is provided in the ‘Not for publication’ that contains ‘information relating to the financial and business affairs of a particular persons, including the authority’ that has been circulated to cabinet members only.)

The Cabinet is recommended to consider the ‘exempt from publication’ report and approve the recommendations contained therein.

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 a proposals for investment in a car parking scheme at Manchester Airport, financed through additional equity investment into Manchester Airport Group.

(Note: the report contained information ‘not for publication’ that was circulated to cabinet members only).

Cabinet members discussed the green credentials of the proposals and efforts of the Airport Group to increase opportunities for visitors to access the airport via public transport.

RESOLVED – (1) That in relation to the Manchester Airport Car Park investment the recommendations contained in the ‘not for publication’ report (‘Part B’) be approved.

(2) That the Borough Treasurer be requested to seek further information from the Manchester Airport Group in relation to proposals for ‘future proofing’ this development against changes in vehicle specifications and regulations.