Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 11 June 2024.

The Minutes (copies of which had been circulated) of the meeting held on 11 June 2024 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 Assistant Director of Finance (Interim Section 151 Officer).

The report provides an update on the revenue budget forecast outturn for the period to the end of June 2024 (Quarter 1). The report also provides an update on the Dedicated Schools Grant (DSG), Housing Revenue Account (HRA) and Capital Programme as at Quarter 1. 

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

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

The Assistant Director of Finance (Interim Section 151 Officer) submitted a report (copies of which had been circulated) which provided an update on the revenue budget forecast outturn for the period to the end of June 2024 (Quarter 1). The report also provided an update on the Dedicated Schools Grant (DSG), Housing Revenue Account (HRA) and Capital Programme as at Quarter 1.

The Cabinet Member for Finance & Resources (Councillor Jilly Julian) attended the meeting to respond to councillor’s questions.

The following comments were made/ issues raised: -

·         Members noted that the overspend had been balanced by the lack of staffing and expressed concern about the effect a full staff might have upon the budget.

·         It was noted that the Housing Revenue Account showed an income from rents at £65 million, with an expenditure of £37 million to Stockport Homes. Members commented that the charge for managing the properties was more than half of the rental income, which appeared to be high compared to that charged by private housing management companies.

·         This Scrutiny Committee would have the opportunity to review the work of Stockport Homes later in the municipal year.

·         The recovery plan for the Childrens and Family portfolio included investments in preventative measures and early help. Work was underway to help to keep children with their families which was ultimately better for children and financially beneficial to the council. It was intended that the recovery plan should go further and faster in investing in preventative work. That included ensuring that the local authority had internal sufficiency of children’s homes, foster carers, that it could retain social workers and maintain foster care recruitment at adequate levels.

·         It was reported that one of the newly purchased children’s homes within the borough would come online in September/October 2024 and that the council had just confirmed the purchase of a second children’s home. Work was ongoing with the Estates team to secure a third property.

·         Delays in opening new children’s homes had been caused by a number of factors including market challenges, locations, health and safety and renovations to ensure that buildings were fit for purpose. There had been a learning curve in the purchase of the first three properties which had helped officers to understand the risks involved. These had been built into future forecasts.

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

To consider a report of the Assistant Director of Finance (Interim Section 151 Officer).

The report reviews treasury management activities and the actual prudential and treasury indicators for 2023/24. 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 2023/24 prudential and treasury indicators in this report; and

(2) note the Annual Treasury Management Report for 2023/24.

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

The Assistant Director of Finance (Interim Section 151 Officer) submitted a report (copies of which had been circulated) which reviewed treasury management activities and the actual prudential and treasury indicators for 2023/24. 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 & Resources (Councillor Jilly Julian) attended the meeting to respond to councillor’s questions.

The following comments were made/ issues raised: -

·       Members were encouraged to attend Treasury Management Training scheduled to take place later in the year.

·       Interest rates were expected to fall, but at a slower rate than previously predicted. The Bank of England base rat was expected to be at about 4 per cent by the end of the financial year and continue thereafter to reduce at a more normal rate.

·       There were no plans to alter the cautious approach taken to treasury management. The council would continue to remain compliant with the CIPFA code of practice and in terms of borrowing would look for the best time to take advantage of interest rates.

RESOLVED – That the report noted.

To consider a report of the Assistant Director of Finance (Interim 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 comment upon the report.

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

The Assistant Director of Finance (Interim 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 & Resources (Councillor Jilly Julian) attended the meeting to respond to councillor’s questions.

RESOLVED – That the report be noted.

To consider a report of the Assistant Director for Finance (Interim Section 151 Officer) and Cabinet Member for Finance and Resources.

The report provides the outcome of the annual review of the council’s Reserves Policy following the reporting of the council’s 2023/24 outturn position.

The Scrutiny Committee is recommended to note and comment upon the report including the recommendations to Cabinet.

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

The Assistant Director for Finance (Interim Section 151 Officer) and Cabinet Member for Finance and Resources 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 2023/24 outturn position.

The Cabinet Member for Finance & Resources (Councillor Jilly Julian) attended the meeting to respond to councillor’s questions.

The following comments were made/ issues raised: -

·         In terms of the potential spending of reserves, the council set boundaries as a collective to ensure that the lines were clear and worked for the borough as a whole. Those boundaries ensured that the council did not risk becoming short-termist or reckless with its use of reserves.

·         The council’s reserves were categorised, including budget resilience, corporate priorities, capital programme, demand-led services and legislative and corporate reserves. Reviews of categories were undertaken on a regular basis to ensure that reserve funds were held within the correct category.

·         Flexibility had been built into the reserves system to support the robustness of the budget and the medium term financial plan. There was £15 million of resources set aside covering the medium term period which provided resilience to deal with any unknown issues over that period.

·         The data demonstrated that the council’s reserves were at their lowest as a percentage of total expenditure. The council was not an outlier in terms of holding or using its reserves.

·         Stockport had, over a number of years, taken a consistently cautious approach to reserves and it had not been reckless in increasing exposure by plundering its reserves, which compared favourably to other local authorities cited in the report.

·         The workforce plan would be reported at the October meeting of this scrutiny committee which would provide the full scope and detail of the council’s workforce investment.

RESOLVED – That the report, including the recommendations to Cabinet, be noted.

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

The report updates the Scrutiny Committee on the impact of the Voter ID requirements in relation to the number of residents unable to vote in the three elections which took place in 2024; namely the Local Elections and GM Combined Authority Mayoral Election in May 2024 and the Parliamentary Election in 2024.

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

Officer contact: Vicki Bates on 0161 474 3219 or email vicki.bates@stockport.gov.uk 

The Assistant Director for Legal & Democratic Governance submitted a report (copies of which had been circulated) updating the Scrutiny Committee on the impact of the Voter ID requirements in relation to the number of residents unable to vote in the three elections which took place in 2024; namely the Local Elections and GM Combined Authority Mayoral Election in May 2024 and the Parliamentary Election in 2024.

The Cabinet Member for Finance & Resources (Councillor Jilly Julian) attended the meeting to respond to councillor’s questions.

The following comments were made/ issues raised: -

·         Members commented favourably upon the work of the council’s Elections team noting in particular the work undertaken to encourage Stockport’s residents to use their vote in the recent elections.

·         Members noted that, of those people who turned up to a polling station to vote without a correct ID, over 68 per cent returned with ID in order to cast their vote.

·         It was not possible to determine how many people did not vote because of the voter ID requirements.

·         In terms of voter authority certificates, applications were processed locally at Stockport Town Hall, but certificates were issued by a centrally appointed supplier. The council had information on the numbers of applications which were rejected. The data was held on the national portal and further information for the reasons for rejected applications would be requested.

·         It would not be possible to determine whether voters had turned up without ID on more than one occasion because, by law, that data had to be destroyed post election.

RESOLVED – That the report be noted.

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

The report sets out various suggested amendments to the Constitution, mainly relating to the amendments to the Officer Scheme of delegations within the Officer Functions section of the Scheme of Delegation to realign some functions due to recent changes in roles and post holders.

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

Officer contact: Vicki Bates on 0161 474 3219 or email vicki.bates@stockport.gov.uk 

The Assistant Director for Legal & Democratic Governance submitted a report (copies of which had been circulated) setting out various suggested amendments to the Constitution, mainly relating to the amendments to the Officer Scheme of delegations within the Officer Functions section of the Scheme of Delegation to realign some functions due to recent changes in roles and post holders.

The Cabinet Member for Finance & Resources (Councillor Jilly Julian) attended the meeting to respond to councillor’s questions.

It was noted that communications would be made to all council staff on the changes to the whistleblowing procedure.

RESOLVED – That the report be noted.

To consider a report of the Assistant Director for 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

A representative of the Assistant Director for 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.

RESOLVED – That the report be noted.