Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 31 July 2018.

The Minutes (copies of which had been circulated) of the meeting held on 31 July 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 officer were invited to declare any interests they had in any of the items on the agenda for the meeting.

The following interests were declared:-

Those councillors who were home owners and eligible to pay Council Tax also delcared personal interests in agenda item 5 ‘Council Tax Discounts Review’ for which a dispensation in respect of this matter had been granted by the Standards Committee.

To consider call-in items (if any)

There were none to consider.

To consider a report of the Deputy Chief Executive.

This item covers two reports as follows;

·           First Update Corporate Performance and Resources Report (CPRR) 2018/19

·           First Update Leader’s Report 2018/19

The First Update Corporate Performance and Resource Report (CPRR) provides an update on progress in delivering the Council’s Priority Outcomes and budget during the first quarter of 2018/19 (April to June). It is the first report to be based on the 2018/19 Council Plan and Budget, and also reflects Cabinet priorities set out in recently-published Portfolio Agreements.

Updates are included on delivery of policy priorities, alongside Reform Projects. The report also includes early forecasts of budget and performance data where this is available, along with an update on the refreshed 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 First Update Report reflects on recent national and local events, along with key areas of progress during the first quarter.

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

The Scrutiny Committee is asked to:

·         Consider the First Update Reports;  

·         Review the progress against delivering corporate objectives, key projects, priority outcomes, targets and budgets for 2018/19;

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

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

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

Representatives of the Deputy Chief Executive submitted two reports (copies of which had been circulated) covering:

·         Corporate Performance and Resources Report (CPRR) Quarter 1 of 2018/19

·         Leader’s Report Quarter 1 of 2018/19

The Corporate Performance and Resource Report (CPRR) provided an overview of progress in delivering the Council’s Priority Outcomes and budget during the first quarter of 2018/19. It was based on the agreed Council Plan for 2018/19 and the Medium Term Financial Plan 2017-20, and also reflected Cabinet Portfolios and priorities.  Updates were included on delivery of policy priorities, alongside Growth and Reform Project updates. The report also included out-turn budget and performance data along with an update on the Corporate Risk Register. It was supported by seven Portfolio Performance and Resource Reports which had been considered during the last Scrutiny cycle.

The Leader’s Annual Report reflected on recent national and local events, together with key areas of progress during the first quarter.

These reports had been considered and approved by the Cabinet on 14 August 2018. 

The Leader of the Council (Councillor Alex Ganotis) attended the meeting to respond to questions.

The following comments were made/ issues raised:-

·                Clarification was sought on the budgeting for the Business Rates Retention Pilot. In response it was stated that as a matter of prudence the Council budgeted for a 50% retention for a number of reasons including: the volatility of the tax base and the impact of successful valuation appeals; 50% was the basis of the ‘no-detriment’ level set by the Treasury as part of the pilot agreement. Any surplus in addition to the 50% was shared across Greater Manchester to minimise the impact of volatility and was used locally to support investment activity. It was further commented that the technical consultation on the Local Government Finance Settlement indicated that the 100% pilot would continue into 2019/20 although the introduction of the Fairer Funding proposals was likely to change the base assumptions underlying the calculations.

·                It was commented that as part of the planned investment in Merseyway there needed to be consideration of opportunities to introduce housing. In response it was stated that further proposals on this subject were likely to come forward in the coming months.

·                Comment was made that the ‘Aim to Maximise/ Minimise’ targets should be replaced by numerical targets wherever possible.

·                Reducing waste collection by encouraging home compositing, and efforts to increase recycling rates for high rise accommodation were also discussed. It was commented that the Greater Manchester waste contract procurement was testing whether more could be done to sort waste post collection to remove more recyclable matter.

·                Concerns were raised that despite ‘positive’ performance relating to the percentage of contact centre telephone calls answered, approximately 20% went unanswered. In response councillors were referred to the answer given by the Leader of the Council to a public question at the Cabinet Meeting on 14 August 2018.

RESOLVED – (1) That the report be noted.

(2) That the Corporate Director for Place Management & Regeneration be requested to provide committee members with details of initiatives to improve recycling rates in high-rise properties.

(3) That the Democratic Services Manager be requested to circulate details of the Cabinet public question relating to Contact Centre performance.

To consider a report of the Borough Treasurer

The Council Tax Support Scheme provides support for charges payers on a low income in addition to this there are a range of mandatory discounts which are awarded in line with national agreed criteria.  From April 2013, Councils were given the freedom to set local discounts for empty unoccupied properties, the cost of these empty property discounts sits with the Local Authority. The level of all Council Tax discounts including CTS directly impacts on the Councils finances and is reflected in the Medium Term Financial Plan (MTFP).

The scheme of discounts in Stockport is reviewed annually, the currently agreed scheme has been in place since April 2016.

The report sets out options for possible changes to the Discount Scheme.

The Scrutiny Committee’s view is sought on a recommendation to consult on the options available to the Council with option 1 (as set out in the report) being the preferred position which would be to remove all local discounts for empty properties with the exception of categories E and F as defined at 2.1 of this report. This would generate additional income of around £1.2m of which £0.1m could be directed to the Council Tax discretionary fund to specifically help the most vulnerable families with dependent children.     

The Scrutiny Committee is invited to comment on the report.

Alison Blount, 0161 474 5107, alison.blount@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) inviting the Scrutiny Committee to consider and comment on proposals for changes to the Council Tax discount scheme following the annual review of the existing arrangements.

Councillors welcomed proposals to change the existing scheme.

RESOLVED – (6 in favour) That the Cabinet Member for Reform & Governance be recommended to undertake a consultation on the Council Tax Discount Scheme with Option 1 being the Council’s preferred option.

To consider a report of the Borough Treasurer.

The report sets out the background to business rate collection and the efforts the Council makes to maximise rates generation.

The Scrutiny Committee is invited to comment on the report.

Officer contact: Alison Blount, 0161 474 5107, alison.blount@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) setting out the background and context to the collection of business rates and outlining some of the challenges for the Council in maximising collection rates.

The following comments were made / issues raised:-

·         Further information was requested in relation to number of officers involved in the collection of rates. In response it was stated that there was a small team who could work across both Business Rates and Council Tax collection. Some of the initiatives trialled with Business Rates collection were now being rolled-out in relation to Council Tax.

·         Councillors expressed surprise at the length of the time the Council had been involved in legal action in relation to a challenge over liability. The importance of the implications of this judgement were stressed and an undertaking given to report back to the Committee.

·         It was queried whether business rate levels were impacting on the viability of pubs. In response it was stated that pubs were closing, but that it could not be correlated with business rates. It was also stated that there were examples of publicans seeking to avoid business rates.

RESOLVED – (1) That the report be noted.

(2) That the Borough Treasurer be requested to provide members with details of the number of businesses receiving Small Business Rates Relief.

To consider a report of the Deputy Chief Executive.

The Council Meeting on 5th April 2018 gave approval to a motion in relation to voter identification trials. The motion requested that a report be submitted to a meeting of this Committee once the Electoral Commission had completed their evaluation of the pilots which took place at eight Local Authorities. This report provides a summary of these findings.

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

Officer contact: Caroline Cooke, 0161 474 3173, caroline.e.cooke@stockport.gov.uk

A report of the Deputy Chief Executive was submitted (copies of which had been circulated) updating the Scrutiny Committee on the Electoral Commission evaluation of trials of voter indication in eight areas in the UK. This report had been submitted following a decision of the Council Meeting.

A councillor expressed surprise that such a large proportion of young people had been unable to provide ID given how often young people were required to produce ID.

Other councillors queried the rationale for the pilots and whether the scale of potential fraud was sufficient to justify the expensive of introducing additional identification measures.

RESOLVED - (5 in favour, 2 against, 1 abstention) That the Returning Officer be recommended not to volunteer Stockport to take part in any future Voter Identification trial.

To consider a report of the Democratic Services Manager.               

The report sets out planned agenda items for future meetings of the Committee and Forward Plan items that fall within its remit.

The Scrutiny Committee is invited to consider the information in the report and put forward any agenda items for future meetings.

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

A representative of the Democratic Services Manager submitted a report (copies of which had been circulated) setting out planned agenda items for the Scrutiny Committee’s next meeting and any Forward Plan items that fell within its remit.

RESOLVED – That the report be noted.

(Note: the Chair was of the opinion that this item, although not included on the agenda, should be considered as a matter of urgency in accordance with Section 100B(4)(b) of the Local Government Act 1972 in order that the Scrutiny Committee had the opporunity to comment on the reports content prior to the submission of further budget proposals)

The report sets out the Medium Term Financial Plan update which is in two parts:-

·         Medium Term Financial Plan Summer Review

·         Medium Term Financial Plan Cabinet Response: Updating our Medium Term Strategy and Framing our Budget Choices for 2019/20

Officer Contacts: Holly Rae/Jonathan Davies on 0161 474 3014/0161 218 1025 or email: holly.rae@stockport.gov.uk/jonathan.davies@stockport.gov.uk

(Note: The Chair was of the opinion that this item, although not included on the agenda, should be considered as a matter of urgency in accordance with Section 100B(4)(b) of the Local Government Act 1972 in order for the matter to be consider prior to the consideration of additional budget proposals by the Cabinet on 2 October 2018).

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of which had been circulated) inviting the Scrutiny Committee to consider two reports previously considered by the Cabinet on 14 August 2018 relating to the forthcoming budget setting process for 2019/20. The first report was a review by the Borough Treasurer of the current Medium Term Financial Plan, with the second report setting out the Cabinet’s response to the findings of the Review.

The Leader of the Council highlighted the key challenges and the principles underlying the Cabinet’s response, including the Cabinet’s intentions with regard to Council Tax.

The Leader and the Borough Treasurer responded to questions from the Scrutiny Committee.

·         Further information was requested in relation to the Fairer Funding for Local Government consultation. In response it was stated that the aim was for any new arrangements to be fiscally neutral, so it was unlikely that the Council would receive any additional resources unless they were attached to additional responsibilities.

·         Clarity was sought on savings from Stockport Together. In response it was stated that there would be no financial benefits realised this year, nor were there envisaged to be, although service users would begin to feel the benefits. The MTFP did not recognise any benefits accrued from Stockport Together as this was a more prudent approach, although the modelling predicted benefits in the future.

·         Further information was requested in respect of the implementation of the Stockport Together new models of care. In response it was stated that both the CQC and Greater Manchester Health & Social Care Partnership had expressed concerns about the pace of change, and that this was reflective of over-ambitious initial plans. There had been a number of changes in leadership at both the CCG and the Council and there was now a renewed focus on implementation, with the Council taking a leading role.

·         Clarity was sought on proposals for the ‘outside bodies’ and wholly owned companies. In response it was stressed that the aim was to ensure value for the money the Council spent with these organisations through ensuring appropriate commissioning and contractual arrangements. This would form part of the proposed Strategic Commissioning Review. It was also commented that there were opportunities to explore sharing more back-off functions to reduce costs. The Chair stressed the importance of these proposals being considered by this Committee.

·         The importance of an inclusive approach to the forthcoming MTFP Business Cases and service redesign was stressed to ensure that those involved had a stake in the process even if they would not benefit directly from any savings. Being able to systematise these discussions, and provide the mechanisms to test the principals without fear of failure was also emphasised. In response it was stated that the approach to the budget differed this year in that there was a move away from service specific business cases to more thematic ones to avoid ‘cost shunting’ and unforeseen consequences, and so some of the proposals would not come forward in their entirety until 2020/21. It was also stated that there may need to be more ‘straight forward’ cuts to budgets to ensure there was no budget shortfall.

·         Clarification was sought on whether the work relating to libraries was a new initiative or the continuation of existing work. In response it was stated that this was a continuation of the work to improve the offer from libraries to include more collaborative working.

·         Involving ward councillors in work to maximise the effectiveness of the Council’s asset and estates was encouraged.

RESOLVED – That  ...  view the full minutes text for item 9.

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”

RESOLVED – That in order to prevent the disclosure of information which was not for publication relating to ‘the financial or business affairs of the any particular person (including the authority)’, the disclosure of which would not be in the public interest, would not be fair and would be in breach of Data Protection principles, the public be excluded from the meeting during consideration of the ‘not for publication’ section of the presentation relating to agenda item 11 ‘Property Alliance’.

(Note: the Chair was of the opinion that this item, although not included on the agenda, should be considered as a matter of urgency in accordance with Section 100B(4)(b) of the Local Government Act 1972 in order that the Scrutiny Committee had the opporunity to comment on the content of the report prior to further decisions being taken in respect of property services)

A representative of the Deputy Chief Executive will make a presentation at the meeting outlining the current situation with respect to property services following the liquidation of Carillion PLC.

An ‘exempt’ report is also being submitted for consideration by the Scrutiny Committee. This report is exempt from publication and will be circulated to Committee members only.

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

(Note: The Chair was of the opinion that this item, although not included on the agenda, should be considered as a matter of urgency in accordance with Section 100B(4)(b) of the Local Government Act 1972 in order for the matter to be consider prior to the consideration of additional budget proposals by the Cabinet on 2 October 2018).

A representative of the Deputy Chief Executive made a presentation to the Scrutiny Committee on developments with the Stockport Property Alliance in light of the liquidation of Carillion PLC in June 2018 and the measures taken by the Council to continue to provide property and estate management services.

The presentation included information relating to upcoming procurement processes, the disclosure of which may have prejudiced the Council in future negotiations and so the public were excluded from the meeting at this point.

RESOLVED – That the presentation be noted.