Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 13 June 2023.

The minutes (copies of which had been circulated) of the meeting held on 13 June 2023 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.

No declarations of interest were made.

To consider call-in items (if any)

There were no call-in items to consider.

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

The report provides an update on the revenue budget forecast outturn for the priod to the end of July 2023 (Quarter 1+). The report also provides an update on the Dedicated Schools Grant, Housing Revenue Account (HRA) and Capital Programme.

The Scrutiny Committee is recommended to note and comment on the report, including the recommendation to Cabinet.

Officer contacts: Jonathan Davies tel 0161 218 1025 or email jonathan.davies@stockport.gov.uk

The Deputy Chief Executive (Section 151 Officer) submitted a report (copies of which had been circulated) providing an update on the revenue budget forecast outturn for the period to the end of July 2023 (Quarter 1+). The report also provided an update on the Dedicated Schools Grant, Housing Revenue Account (HRA) and Capital Programme.

The Cabinet Member for Finance and Resources (Councillor Jilly Julian) attended the meeting to respond to councillors’ questions.

The following comments were made/ issues raised:-

·         Members queried whether additional funds were available for a new home for looked after children and in response it was stated that work was progressing on the development of a new children’s home which would increase the capacity to house looked after children within the borough.

·         In response to a question about the number of transfers from non-cash limit to cash-limit areas, it was stated that a number of assumptions were made at the start of the financial year around matters such as inflation and the cost of pay settlements and these were built into contingency budgets which were then released as these pressures had materialised.

·         Almost half of the national living wage contingency had been used in the first quarter of this year as a result of contracts having been signed and fees paid such as within adult social care services. This had been expected and measures taken to ensure that service budgets were achievable.

·         In the current economic climat,e the council examined every pound spent in Stockport on behalf of residents at a granular level of detail. The council had detailed financial recovery plans and had created a surplus in order to offset overspends.

·         The ten Leaders of the Greater Manchester Authorities, along with the ten Chief Executives and borough treasurers met regularly to find ways to drive efficiencies and savings. Furthermore the STaR procurement programme looked strategically at markets to drive savings.

·         It was commented that some services procured by the council such as highway line-marking had not been sourced locally.

·         Members commented upon the Quarter 1 forecast position deficit and noted it had been caused by an expected under-recovery of income in planning and building control areas. Members queried why if this had been expected, it had not been built into the original budget.

·         In response it was stated that work was currently underway in relation to fees for building control which would bring see an increase in fees and charges that would yield additional income. That outcome of that work was due to be reported to this Committee at a future date.

·         In relation to the Dedicated Schools Grant, it was reported that the grant was ring-fenced. The deficit had been brought forward and it was anticipated to reach 14.9 million at the end of the financial year.

·         In relation to the SEN transport deficit, it was reported that this had been a significant cost to the council for the past few years, exacerbated by the provision of SEN schools within the borough. There were challenges with routes to SEN schools due to the need to find places for children outside of the borough.  A programme of work, including the development of a new SEN school within the borough, was underway to mitigate this cost.

·         In relation to the Delivering Better Value support programme, it was reported that this work had enabled the recruitment of more educational psychologists who had been able to look at the challenges faced by young people and in turn to avoid expensive placements. The focus was enhancing and improving services for children.

RESOLVED – That the report and recommendation to the Cabinet be noted.

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

The report updates the Committee on treasury management activities and ensures that the council is implementing best practice in accordance with the CIPFA (Chartered Institute of Public Finance and Accountancy) Code of Practice for Treasury Management.

The Scrutiny Committee is recommended to note the report and recommend any changes to the prudential indicators.

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

The Deputy Chief Executive (Section 151 Officer) submitted a report (copies of which had been circulated) updating the Committee on treasury management activities and ensuring that the council was implementing best practice in accordance with the CIPFA (Chartered Institute of Public Finance and Accountancy) Code of Practice for Treasury Management.

The Cabinet Member for Finance and Resources (Councillor Jilly Julian) attended the meeting to respond to councillors’ questions.

It was confirmed that some investments which were held for cashflow and liquidity purposes had increased as a result of the Bank of England base-rate increase, and this position had been reflected in the report.

RESOLVED – That the report be noted.

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

The report reviews treasury management activities and the actual prudential and treasury indicators for 2022/23. It also meets the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).

The Scrutiny Committee is recommended to comment on the report and recommend Cabinet to:

(1) approve the actual 2022/23 prudential and treasury indicators in this report; and

(2) note the Annual Treasury Management Report for 2022/23.

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

The Deputy Chief Executive (Section 151 Officer) submitted a report (copies of which had been circulated) reviewing treasury management activities and the actual prudential and treasury indicators for 2022/23. It also met the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).

The Cabinet Member for Finance and Resources (Councillor Jilly Julian) attended the meeting to respond to councillors’ questions.

The following comments were made/ issues raised:-

·         In the light of the recent announcement that Birmingham City Council had issued a Section 114 notice, members queried whether the council would assess what had gone wrong in Birmingham.

·         In response it was stated that position would be looked at in some detailed at in order to learn from what had gone wrong elsewhere, including other local authorities which had issued Section 114 notices.

RESOLVED - That the report be noted.

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

The report provides the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2022/23 outturn position.

The Scrutiny Committee is recommended to note and comment on the report including the recommendations to Cabinet:

(1)  Note the annual review of Council’s 2023/24 Reserves Policy including the level and rationale for the reserves held.

(2)  Approve the adjustments and reclassification of earmarked reserves held in line with the recommended amounts.

(3)  Approve the proposed 2023/24 Reserves Policy.

Officer contact: Jonathan Davies tel 0161 218 1025 or email jonathan.davies@stockport.gov.uk

The Deputy Chief Executive (Section 151 Officer) submitted a report (copies of which had been circulated) providing the outcome of the annual review of the Council’s Reserves Policy following the reporting of the council’s 2022/23 outturn position.

The Cabinet Member for Finance and Resources (Councillor Jilly Julian) attended the meeting to respond to councillors’ questions.

The following comments were made/ issues raised:-

·         In reference to the recent announcement that Birmingham City Council had issued a Section 114 notice, members queried whether Stockport Council might be more likely in the future to use its reserves to mitigate the pressures the council was facing at the moment.

·         In response it was stated that a full discussion and exploration of the possible use of reserves would take place as part of the standard work around producing a balanced budget, and this would be reported to a future meeting of the Scrutiny Committee.

·         It was suggested that a healthy balance of reserves placed the council in an advantageous position, however the sustained use of earmarked reserves may place have an impact on the council and borough in delivering its ambitions and may render projects and investments as no longer financially viable.  In response, it was stated that the use of reserves was managed with care and with oversight and scrutiny.

RESOLVED - (1) That the annual review of Council’s 2023/24 Reserves Policy including the level and rationale for the reserves held be noted.

(2) That the adjustments and reclassification of earmarked reserves held in line with the recommended amounts be noted.

(3) That the proposed 2023/24 Reserves Policy be noted.

To consider a report of the Deputy Chief Executive.

The report provides insights about the Council’s workforce over the full year 2022/23, presenting progress in implementing our People Plan, developing the People Plan to reflect changing priorities including the clearer focus provided by our updated Council Plan, our Vision and Mission.

The reports also includes trends within our workforce.

The Scrutiny Committee is recommended to:

(1)  Note the excellent performance of our recruitment team in improving both the quality and quantity of applicants, and in working with such diligence and commitment to fill hard to fill roles, for example within our Social Care directorates.

(2)  Note the progress made in launching and embedding a range of developmental initiatives, including the Leading Stockport framework, our strong apprenticeship programme, our still developing early careers framework, especially for care leavers, vulnerable adults and, where possible our focus, our bold commitment to coaching and coaching skills training, as well as the development and impending launch of our new appraisal approach, My Conversation.

(3)  Endorse the early work to develop a talent strategy, upon which to base our talent management programme over the next 2 – 5 years, the first phase of this being an Early Careers framework.

(4)  Endorse the work to understand better the significant challenges and opportunities to improve the employment experience for those with diverse personal characteristics. This includes the work in house, such as a new values based culture programme (Ambitious Stockport) , and also the planned future work to collaborate at a Greater Manchester level to design and implement genuinely innovative frameworks and tools which will improve the lived experience for all employees based upon race and disability.

(5)  Note the improvement in our sickness absence figure to an average of 9.86 days per FTE and endorse the work to further improve our performance in this area, at a Directorate and a Council level.

(6)  Note the ongoing wellbeing support provided to our employees and the ambition to further build upon opportunities to improve wellbeing, as evidenced by the current work to create a supportive and transparently confident organisational framework of support, and a narrative for those going through the menopause and meeting the ongoing personal challenges from menstruation.

Officer contacts: Kathryn Rees tel 0161 474 3174 or email kathryn.rees@stockport.gov.uk and Graham Charsley at graham.charsley@stockport.gov.uk

The Deputy Chief Executive submitted a report (copies of which had been circulated) providing insights about the Council’s workforce over the full year 2022/23, presenting progress in implementing our People Plan, developing the People Plan to reflect changing priorities including the clearer focus provided by our updated Council Plan, our Vision and Mission. The report also included trends within the workforce.

The Cabinet Member for Finance and Resources (Councillor Jilly Julian) attended the meeting to respond to councillors’ questions.

The following comments were made/ issues raised:-

·         Members expressed concern in relation to the staff turnover rate of 11 per cent and, in particular, the higher rate of turnover for staff working in Adult Social Care. Members queried what plans the council had to reduce the rate of staff turnover.

·         In response it was stated that an examination of the point at which people looked to leave their careers was taking place. Furthermore, consideration was being given to recruitment and the early stages of employment. The council was also looking at ways to attract candidates to the organisation: using online recruitment portals, being more proactive in explaining the culture and values of the organisation, what support and benefits exist for staff and why Stockport Council was a great place to work.

·         In response to a query about next steps in terms of the workforce, it was reported that a pilot scheme was due to be implemented to encourage individual staff members to own their performance and wellbeing, to align themselves with the values of the organisation and align their performance with the Stockport Council plan. Plans were in place to measure how individual colleagues’ performance delivered against the council plan. It was further recognised that the quality of leadership at the council was crucial to employee wellbeing.

·         It was reported that the annual staff survey would be rolled out within the next month and that it would give a very clear indication of the extent to which employees understand the corporate plan and organisational values. It would also shed light on the diversity of the council’s services and its staff. It was recognised that not all sections of the organisation were in the same place in terms of employee wellbeing and the staff survey would allow the council to target those areas.

·         It was also reported that all colleagues have access to leading-edge wellbeing support. Staff usage of those services was tracked anonymously on a monthly basis, including information on the numbers of referrals to occupational health, counselling and physiotherapy. It was found that these services were well used.

·         The launch of the Supported Internship Scheme was scheduled to take place the following day. That scheme played an important role in the kinds of people the council was able to offer jobs to such as care leavers and those with learning disabilities. The council had also provided work experience for 60 students.

·         In terms of the Apprenticeship Levy, it was reported that the fund was fully utilised by the council each year and that the range of apprenticeships offered by the council was impressive with roles not normally associated with apprenticeships such as solicitor apprentices.

·         It was also reported that Stockport College now has an Ofsted rating of ‘good’ which meant that it was eligible to offer students for apprenticeship placements. Stockport College had recently given a presentation to council officers and the procurement of apprentices from the college was expected going forward.

·         Overall, the council had enrolled 236 apprentices on 77 courses and had a 73 per cent completion rate, well above the national average.

·         It was reported that the council had made some redundancies and, wherever possible, they had been voluntary. The council was always looking to make savings and restructure its services where possible. Furthermore, the figures for the numbers of redundancies in the past year was likely to be skewed as a result of temporary contracts coming  ...  view the full minutes text for item 8.

To consider a report of the Director of Place Management.

The report gives an overview of the complaints received by the Council this year and more importantly the lessons learnt in dealing with those complaints.

The Scrutiny Committee is recommended to note:-

(1)  the information contained in the Annual Complaints Report, and

(2)  the positive progress being taken to improve complaints handling across the council.

Officer contacts: Emma Handby tel 0161 474 3175 or email emma.handby@stockport.gov.uk

The Director of Place Management submitted a report (copies of which had been circulated) giving an overview of the complaints received by the Council this year and more importantly the lessons learnt in dealing with those complaints.

The Cabinet Member for Finance and Resources (Councillor Jilly Julian) attended the meeting to respond to councillors’ questions.

Members welcomed the report and its contents.

RESOLVED – (1) That the information contained within the Annual Complaints Report be noted.

(2) That positive progress being taken to improve complaints handling across the council be noted.

To consider a report of the Deputy Chief Executive.

The report sets out actions the council has already taken to ensure its supply chains are not linked to modern slavery, as well as further action it intends to take. It also briefly summarises the review process and presents the fourth iteration (2023/24) of the Stockport Council Modern Slavery Statement, to cover the period up to 30 September 2024, and seeks the Committee’s approval to adopt that refreshed statement.

The Scrutiny Committee is recommended to:

(1)  Consider the draft updated statement which will run to 30 September 2024.

(2)  Recommend that, subject to any necessary amendments, Cabinet agrees that the statement is approved for publication.

Officer contacts: Alan Lawson tel 0161 474 5397 or email alan.lawson@stockport.gov.uk

The Deputy Chief Executive submitted a report (copies of which had been circulated) setting out actions the council had already taken to ensure its supply chains were not linked to modern slavery, as well as further action it intended to take. It also briefly summarised the review process and presented the fourth iteration (2023/24) of the Stockport Council Modern Slavery Statement, to cover the period up to 30 September 2024, and sought the Committee’s approval to adopt that refreshed statement.

The Cabinet Member for Finance and Resources (Councillor Jilly Julian) attended the meeting to respond to councillors’ questions.

The following comments were made/ issues raised:-

·         Members requested that STaR procurement be asked to produce its own statement on modern slavery.  In response, it was stated that STaR was not an entity in its own right, but a joint committee. Nevertheless a commitment was made to explore and develop that suggestion.

·         In response to a question about training for staff and third parties on identifying red flag indictors for modern slavery, it was reported that training on modern slavery was in place for frontline staff.  Further consideration would be given to providing such training for Members as a valuable addition to safeguarding.

·         Members requested clarification in relation to the publication of the 2022/23 Stockport Modern Slavery Statement. In particular whether it would include links to previous versions of the statement which would demonstrate how it had improved over time.  It was suggested that, in so doing, the council would be seen to be acting in accordance with the principles contained within the Modern Slavery Act 2015 which recommended continuous improvement.

RESOLVED - (1) That the draft updated statement which was scheduled to run to 30 September 2024 be noted.

(2) That, subject to any necessary amendments, Cabinet be recommended to agree that the statement be approved for publication.

The Scrutiny Committee has the opportunity to consider the portfolio dashboards for the Finance and Resources portfolio and raise any issues with regard to performance.

Members can view the portfolio dashboards on the Portfolio Performance Dashboard website.

The Scrutiny Committee was given the opportunity to consider the portfolio dashboards for the Finance and Resources portfolio and raise any issues with regard to performance.

RESOLVED – That the portfolio dashboards be noted.

To consider a report of the Assistant Director – Legal & Democratic Governance.

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: Jacqueline Kramer on 0161 474 2978 or email:

jacqueline.kramer@stockport.gov.uk

The Assistant Director – Legal & Democratic Governance submitted a report (copies of which had been circulated) setting out planned agenda items for the Scrutiny Committee’s next meeting and Forward Plan items that fall within the remit of the Scrutiny Committee.

It was requested that the proposed meeting dates for the Scrutiny Review on Bus Franchising should be set for this calendar year in order that the review’s findings had the potential to feed into next year’s budget considerations.

RESOLVED – That the report be noted.