Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 11 October 2022.

The Minutes (copies of which had been circulated) of the meeting held on 11 October 2022 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 which they had in any of the items on the agenda for the meeting.

The following interest was declared:-

To consider call-in items (if any)

There were no call-in items to consider.

To consider a report of the Corporate Director (Corporate and Support Services) and Deputy Chief Executive.

The report provides a summary of progress in delivering the Council’s priority outcomes and budget in the first half of the financial year, with a particular focus on the second quarter of 2022/23 (July to September 2022) and reflects on the 2022/23 Council Plan, MTFP and Portfolio priorities which includes:

·       An executive summary (including highlights and exceptions relating to the delivery projects/initiatives set out in the 2022/23 Portfolio Agreements.

·       A summary analysis relating to the 75 “corporate” performance measures, with exception commentary relating to measures that are currently RAG rated as “Red” (as well as those rated as “Amber” where performance has deteriorated since the end of 2021/22).

·       A detailed financial update, including, the out-turn position on revenue and capital.

The Scrutiny Committee is asked to:

a)    Consider the Mid-Year 2022/23 CPRR.

b)    Review the progress against delivering corporate objectives, key projects, priority outcomes, targets and budgets for 2022/23 to date.

c)    Highlight key areas of and responsibility for taking forward corrective action to address any performance or resource issues.

Officer contacts:

Holly Rae, Head of Strategy and Design (CSS),

holly.rae@stockport.gov.uk  (0161 474 3014/07800617550)

Jonathan Davies, Strategic Head of Service – Finance (Deputy S151),

jonathan.davies@stockport.gov.uk  (0161 218 1025/07891949012)

The Corporate Director (Corporate and Support Services) and Deputy Chief Executive submitted a report (copies of which had been circulated) providing a summary of progress in delivering the Council’s priority outcomes and budget in the first half of the financial year, with a particular focus on the second quarter of 2022/23 (July to September 2022) and reflecting on the 2022/23 Council Plan, MTFP and Portfolio priorities.

The Cabinet Member for Finance and Resources (Councillor Malcolm Allan) attended the meeting to respond to questions from the Scrutiny Committee.

The following comments were made/issues raised:-

·       Members enquired about the water income referred to as part of the Housing Revenue Account Income. In response, it was noted that the water income and water charges following a consultation some years ago,  Stockport Homes would act on behalf of United Utilities to collect water charges from tenants.

·       Clarification was sought relating to the new build income as part of the Housing Revenue Account Income. In response, it was stated that the Government relaxed the borrowing a number of years ago relating to the cap on the Housing Revenue Account, which meant the Council could borrow to build more affordable housing in the Council’s name.

·       It was commented that the report refers to the National Diabetes Prevention Programme, however, it was important and the Council should find additional ways to expand the programme rather than relocating funding.

RESOLVED – That the report be noted.

To consider a report of the Corporate Director (Corporate and Support Services) and Deputy Chief Executive.

The report provides the 2022/23 Portfolio Performance and Resource Agreements (PPRA), which was considered by the Committee on 6 September 2022 and approved by Cabinet on 28 September 2022 and provides a summary of progress against portfolio priorities, performance indicators and budgets during the first half of 2022/23, with a specific focus on the second quarter (July to September 2022).

The Scrutiny Committee is asked to:

·       Consider the Mid-Year Portfolio Performance and Resource Report.

·       Review the progress to date (and forecasts) relating to delivering key targets and budgets for 2022/23.

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

·       Highlight any significant issues or changes to be fed back to the Cabinet alongside the Corporate Performance and Resource Report.

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

Officer contacts:

Alan Lawson, Strategy and Performance Manager

alan.lawson@stockport.gov.uk  (07890 563587)

Stephen Pate, CSS Manager (Specialist) Finance

stephen.pate@stockport.gov.uk  (0161 218 1086)

The Corporate Director (Corporate and Support Services) and Deputy Chief Executive submitted a report (copies of which had been circulated) providing details relating to the 2022/23 Portfolio Performance and Resource Agreements (PPRA), which was considered by the Committee on 6 September 2022 and approved by Cabinet on 28 September 2022 and provides a summary of progress against portfolio priorities, performance indicators and budgets during the first half of 2022/23, with a specific focus on the second quarter (July to September 2022).

The Cabinet Member for Finance and Resources (Councillor Malcolm Allan) attended the meeting to respond to questions from the Scrutiny Committee.

The following comments were made/issues raised:-

·       Members enquired about the increased levels of sickness in the measuring performance section of the report. In response, it was stated that this concern was already being looked at by Human Resources (HR), but if the covid elements were removed then the numbers would be lower.

·       It was noted that the Capital Finance update and outlook were a concern and given the pending Government announcement how would it impact Stockport Council. In response, it was noted that the Council were currently working through the Capital Programme and information would be submitted to the Committee at a future meeting.

·       Clarification was sought regarding ‘long covid’ and if it was a recognised reason for sickness levels. In response, it was suggested that ‘long covid’ was now recognised as a disability and should be treated as a disability. HR were looking into this and being as sympathetic as possible, but it was a complicated process.

·       It was suggested that more details relating to the absence data be shared with the Committee to understand the differences between short-term and long-term sickness absence levels and how it was managed.

·       Clarification was sought regarding the insight into mental health absences and being able to understand the employees point of view. In response, it was noted that it was currently being looked at by HR and would feed back to the Committee at a future meeting.

·       Members expressed that every household needed to utilise the pension credit take up that the 3,500 households would soon qualify for and it needed to be communicated.

·       Warm Space programme would be a good opportunity to share literature with attendees about pension credit take up and inform residents that it is an entitlement.

·       Clarification was sought regarding the performance target relating to the ‘percentage of invoices paid to local suppliers in 10 days’. In response, it was stated that the challenge has been to match information (purchase order numbers, delivery fees and invoice numbers),  at the various levels of the process, but the process was being looked into to resolve the issues.

·       It was commented that the Capital Finance Update and Outlook looked really well for this year 2022/23, however, for next year 2023/24 there were things on hold or delays due to cost inflation, re-finance or increased costs.

RESOLVED – (1) That the report be noted

(2) That the Corporate Director (Corporate and Support Services) and Deputy Chief Executive be asked to report back to the Committee on the following matters:-

·       How the Government’s announcement relating to Capital Finance would impact the Council’s Capital Programme.

·       Detailed insight into mental health absences at the Council and understanding the employees point of view and how it was being managed.

To consider a report of the Deputy Chief Executive (Section 151 Officer).

This report provides a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2022/23, approved by Council on 24 February 2022, and has been prepared in accordance with the CIPFA Code of Practice for Treasury Management in the Public Services (revised 2017). It also provides an economic update for the first six months of 2022/23 and details how this impacts upon the interest rate predictions and outlook provided in the initial strategy. 

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

Officer contact: Lorna Soufian on 0161 474 4026 or by email on lorna.soufian@stockport.gov.uk

The Deputy Chief Executive (Section 151 Officer) submitted a report (copies of which had been circulated) providing details relating to the mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2022/23, approved by Council on 24 February 2022, and has been prepared in accordance with the CIPFA Code of Practice for Treasury Management in the Public Services (revised 2017).

The Cabinet Member for Finance and Resources (Councillor Malcolm Allan) attended the meeting to respond to questions from the Scrutiny Committee.

The following comments were made/issues raised:-

·       Members expressed their gratitude to the officer team who presented the audit training recently.

·       The Chair requested that a draft report relating to the Environmental Impact Assessment be submitted to the meeting in January 2023 as it was now a legal requirement.

·       Clarification was sought regarding the green ambition and the security, liquidity & yield as it related to the recent training provided. In response, it was noted that the security of investments would become more and more safe as the Council moved towards more sustainable companies and the greener agenda. It was stated that the over-riding priority of the Council was to protect and secure the funds of the council tax payers.

·       Members enquired about how the Council restricted and avoided organisations with bad credentials. In response, it was stated that the information was verified by credit agencies and the external auditors.

·       Members expressed their gratitude to the finance team regarding the steps being taken to reduce the risks, but also how the finances were being managed and the method being adopted.

RESOLVED – That the report be noted.

To consider a report of the Deputy Chief Executive (Section 151 Officer).

The report provides details on the development of the Council’s Treasury Management Strategy Statement (TMSS), Annual Investment Strategy (AIS) and Minimum Revenue Provision (MRP) Policy for 2023/24, to be considered for approval at the Cabinet Meeting on 31 January 2023 and the Council Meeting on 23 February 2023.

The Scrutiny Committee is recommended to comment on and note the report in order that the views can be taken into account in the development of the Council’s 2023/24 Treasury Management Strategy Statement.

Officer contact: Lorna Soufian on 0161 474 4026 or on email lorna.soufian@stockport.gov.uk

The Deputy Chief Executive (Section 151 Officer) submitted a report (copies of which had been circulated) providing details on the development of the Council’s Treasury Management Strategy Statement (TMSS), Annual Investment Strategy (AIS) and Minimum Revenue Provision (MRP) Policy for 2023/24, to be considered for approval at the Cabinet Meeting on 31 January 2023 and the Council Meeting on 23 February 2023.

The Cabinet Member for Finance and Resources (Councillor Malcolm Allan) attended the meeting to respond to questions from the Scrutiny Committee.

The Chair enquired about the Lender Option Borrower Option (LOBO) and potentially any issues. In response, it was confirmed that there are no issues as the LOBO is relatively small.

Members agreed the questions for consideration in paragraph 14 relating to the Borrowing Strategy and also paragraph 16 relating to the Investment Strategy.

Members thanked the officers for the Treasury Training held recently and how it helped to understand the report better.

RESOLVED – (1) That the report be noted.

(2) That the questions for consideration relating to the Borrowing Strategy (paragraph 14 of the report) and the Investment Strategy (paragraph 16 of the report) be noted.

To consider a report of the Corporate Director (Corporate and Support Services) and Deputy Chief Executive.

This report outlines the current arrangements, and any proposed changes as follows:

·       Section 2 – Funding Arrangements

·       Section 3 – Business Rates Discounts

·       Section 4 – Council Tax Empty Property Discounts & Premiums

·       Section 5 – Council Tax and Care Leavers

·       Section 6 – Council Tax Support

·       Section 7 – Council Tax Discretionary Support

·       Section 8 – Council Tax Base

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

Officer contact: Jonathan Davies, 0162 218 1025 or by email jonathan.davies@stockport.gov.uk

The Corporate Director (Corporate and Support Services) and Deputy Chief Executive submitted a report (copies of which had been circulated), outlining the current arrangements relating to the annual review in respect of Business Rates and Council Tax.

The Cabinet Member for Finance and Resources (Councillor Malcolm Allan) attended the meeting to respond to questions from the Scrutiny Committee.

The following comments were made/issues raised:-

·       Stockport Council were part of the 100% pilot that meant that the full impact of Business Rates income increased or decreased would be borne by the Council.

·       Clarification was sought regarding the empty properties paying 100% and whether it was difficult to collect money. In response, it was stated that it could be difficult to collect depending on the reasons e.g. absent owners. However, work was being done with various teams to ensure collections take place.

·       It was noted, that measures were put in place to identify those who won’t pay and those who couldn’t pay.

RESOLVED – That the report be noted.

To consider a report of the Deputy Chief Executive.

The report sets out the business case for the delivery of additional internal residential placement sufficiency in Stockport. This expansion in capacity is required to meet increasing demand due to rising numbers and complexity of children in care and to reduce our spend on external placements.

The Scrutiny Committee is asked to comment on the work undertaken to date and recommend for Cabinet approval to:

a)    Approve the capital funding to a maximum of £1.8m through prudential borrowing for the immediate purchase and conversion of up to three properties within Stockport.

b)    Delegate authority to the Deputy Chief Executive, in consultation with the relevant cabinet member, to approve the selection of suitable properties and undertake their purchase.

c)    Delegate authority to the Deputy Chief Executive, in consultation with the relevant cabinet member, to enter into any such contracts and agreements as may be required to complete the purchase, conversion and operation of the children's homes.

d)    Delegate authority to the Deputy Chief Executive, in consultation with the relevant cabinet member, to apply for any necessary consents associated with the delivery of the children's homes.

e)    Delegate authority to the Deputy Chief Executive, in consultation with the relevant cabinet member, to approve necessary revenue budget changes to support the running of the new homes.

f)      Delegate authority to the Deputy Chief Executive, in consultation with the relevant cabinet member, to take all necessary further steps to deliver the strategy.

Officer contacts: Jeanette Warburton, jeanette.warburton@stockport.gov.uk  or James Kington, james.kington@stockport.gov.uk

The Deputy Chief Executive submitted a report (copies of which had been circulated) setting out the business case for the delivery of additional internal residential placement sufficiency in Stockport. This expansion in capacity is required to meet increasing demand due to rising numbers and complexity of children in care and to reduce our spend on external placements.

The Cabinet Member for Finance and Resources (Councillor Malcolm Allan) attended the meeting to respond to questions from the Scrutiny Committee.

The following comments were made/issues raised:-

·       Clarification was sought regarding how the houses would be bought and in what areas of Stockport and for how much. In response, it was stated that Ofsted had developed a scoring model matrix and had specific requirements which were robust and took into account a number of factors including school provisions, transport and finance.

·       Members welcomed the report and commented that it was good to have more homes for Stockport children in Stockport.

·       It was commented that what was key were the outcomes for the children, keeping the children as near as possible to Stockport and the children themselves.

RESOLVED  - (1) That the report be noted.

(2) That the Scrutiny Committee endorse and recommend to Cabinet the following:

(i)              Approve the capital funding to a maximum of £1.8m through prudential borrowing for the immediate purchase and conversion of up to three properties within Stockport.

(ii)             Delegate authority to the Deputy Chief Executive, in consultation with the relevant cabinet member, to approve the selection of suitable properties and undertake their purchase.

(iii)           Delegate authority to the Deputy Chief Executive, in consultation with the relevant cabinet member, to enter into any such contracts and agreements as may be required to complete the purchase, conversion and operation of the children's homes.

(iv)           Delegate authority to the Deputy Chief Executive, in consultation with the relevant cabinet member, to apply for any necessary consents associated with the delivery of the children's homes.

(v)             Delegate authority to the Deputy Chief Executive, in consultation with the relevant cabinet member, to approve necessary revenue budget changes to support the running of the new homes.

(vi)           Delegate authority to the Deputy Chief Executive, in consultation with the relevant cabinet member, to take all necessary further steps to deliver the strategy.

To consider a report of the Corporate Director (Corporate and Support Services) and Deputy Chief Executive.

The report provides an overview on the energy contracts held by the Council both for its estate’s portfolio including some schools and the street lighting and other highway-based energy contracts. The report sets  out a  proposed change in strategy for the procurement of our energy within a framework that requires Cabinet approval on the basis that the likely cumulative value of contracts entered into is greater than £10m which requires Cabinet approval.

The Scrutiny Committee is recommended to:-

a)    Support the approach of a flexible contract, working with STAR and e-energy and other local authority partners to try to obtain the best prices for energy from April 2023 and endorse to delegate approval of these new contracts to the  Deputy Chief Executive and the Director of Development and Regeneration in consultation with the Cabinet Member for Finance & Resources to approve and sign the new estate’s portfolio energy contracts and the Deputy Chief Executive and the Director of Place Management in consultation with the Cabinet Member for Highways, Parks and Leisure Services to approve and sign the street lighting and other highway energy-based contracts.

b)    Request that officers continue to identify and implement cost effective energy efficient measures to reduce energy usage.

Officer contacts: Emily Brough, emily.brough@stockport.gov.uk

James Kington, james.kington@stockport.gov.uk

Sue Stevenson, sue.stevenson@stockport.gov.uk

Kora Yohannan, kora.yohannan@stockport.gov.uk

The Corporate Director (Corporate and Support Services) and Deputy Chief Executive submitted report (copies of which had been circulated) providing details relating to an overview on the energy contracts held by the Council both for its estate’s portfolio including some schools and the street lighting and other highway-based energy contracts.

The Cabinet Member for Finance and Resources (Councillor Malcolm Allan) attended the meeting to respond to questions from the Scrutiny Committee.

The following comments were made/issues raised:-

·       Members enquired about how the Council were making sure that it didn’t get caught up in another situation with relaying on a company with third party links to another organisation. In response, it was stated that there were no sanctions in place at the time, but Stockport Council were locked into a fixed term contract. Currently, there are a few control checks including procurement processes, pricing checks, not necessarily going with the cheapest and also looking at greener options with another degree of flexibility.

·       Clarification was sought regarding STAR and its benefits including the reductions in price and not paying the market rate. In response, it was noted that there would be a detailed risk and discussion that would take place and it would depend on what is brought forward.

·       It was commented that active management would have an impact on the people to maintain the management of the contract and the longer term costs.

RESOLVED – That the report be noted.

To consider a report of the Deputy Chief Executive.

The report provides details relating to the Council providing a loan facility for Life Leisure (the trading name of Stockport Active CIC), to fund the replacement of equipment, general capital improvements to centres and initiatives to make leisure centres more energy efficient. 

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

Officer contact: Peter Ashworth on 07891 949473 or by email on peter.ashworth@stockport.gov.uk

The Deputy Chief Executive submitted a report (copies of which had been circulated) providing details relating to the Council providing a loan facility for Life Leisure (the trading name of Stockport Active CIC), to fund the replacement of equipment, general capital improvements to centres and initiatives to make leisure centres more energy efficient.

The Cabinet Member for Finance and Resources (Councillor Malcolm Allan) attended the meeting to respond to questions from the Scrutiny Committee.

The following comments were made/ issues raised:-

·       Clarification was sought regarding how the loan facility will be repaid. In response, it was stated that it was a loan facility and no loan will be made until the structures are in place. If a loan were to be made then it will be repaid by Life Leisure and due diligence and assurances would be taken by the Council to ensure it is affordable, sustainable and repayable by Life Leisure.

·       It was commented that there would be risks, but the Council would try and mitigate those risks as much as possible to ensure that residents continue to get a provision with health benefits across the borough.

·       Members enquired about the loan facility and why that choice. In response, it was noted that the loan facility was the most transparent way forward.

RESOLVED – That the report be noted.

To consider a report of the Strategic Head of Service (Legal and Democratic Services).

The report sets out planned agenda items for the Scrutiny Committee’s next meeting and Forward Plan items that fall within the remit of the Scrutiny Committee.

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

Officer contact: Charles Yankiah on 0161 474 3206 or email:

charles.yankiah@stockport.gov.uk

A representative of the Strategic Head of Service & Monitoring Officer (Legal & Democratic Governance) submitted a report (copies of which had been circulated) setting out the planned agenda items for the Scrutiny Committee’s next meeting and any relevant Forward Plan items.

RESOLVED – That the report be noted.