Agenda item

To consider a report of the Cabinet Member for Finance and Resources.

Within this report and appendix we outline our strategic approach in responding to the review of the medium-term financial plan. This follows on from the report presented at the Cabinet meeting on the 28 September 2022. Whilst Stockport Council continues to develop opportunities for further enhancing the lives of our residents, we are also in a period of unprecedented uncertainty. Factors include the high levels of price inflation, interest rate changes, and uncertainty around volatile energy prices certainly beyond 6 months. In addition we are still without any means to accurately forecast the Government Settlement, Government assistance even via a levy on adult social care and wage settlements. Furthermore there are global issues, such as the war in Ukraine and energy supply generally, which are totally unpredictable.

This report outlines the budget proposals being considered by the Cabinet to address financial and demand challenges, enable longer term transformation, and ensure the delivery of shared strategic partnership ambitions.

The Scrutiny Committee is invited to comment on the report and the proposals presented within the report relevant to the remit of this committee.

Officer contact: Holly Rae on 0161 474 3014 or email: holly.rae@stockport.gov.uk

The Corporate Director (Corporate & Support Services) & Deputy Chief Executive submitted a report of the Cabinet Member for Finance and Resources (copies of which had been circulated) outlining the budget proposals being considered by the Cabinet to address financial and demand challenges, enable longer term transformation, and ensure the delivery of shared strategic partnership ambitions.

The following comments were made/ issues raised:-

·         In relation to the cost of living crisis, it was queried what actions had been taken by the council and if any results had been evidenced.

·         In response, it was stated that a vast amount of work had been undertaken and would continue to be undertaken including the launch of a suite of support through co-ordination with partner organisations and the council were welcoming national government support. To date, the council had issued over £10,000 worth of vouchers to residents in receipt of free school meal and energy vouchers to those in receipt of housing or council tax support. As the work was ongoing, total figures of those supported were not yet available, however a detailed written response would be provided to Members around the distribution of vouchers to residents who were most vulnerable. 

·         In relation to the asset review and increase of rental income through the let out of one floor of Stopford House, it was queried if the impact of staff hybrid working on capacity was known and whether there was any scope for further lets of Stopford House.

·         In response, Members were advised that the investment in Stopford House was about making the building fit for 21st century working and decarbonising the building. The design of the building was done in such a way to ensure that it was a saleable and lettable asset on a floor by floor basis to enable the council to respond in an agile way. It was recognised that the working habits of staff had changed as a result of the pandemic and those who were able to had been given an opportunity to adopt a hybrid approach to working based on the business need and services to residents which remained the priority. Whilst some teams were unable to work at home, it was acknowledged that hybrid working had been incredibly successful for both the council as the employer and for the employees. However, it was difficult to predict working habits following the reopening of Stopford House and the council would continue to assess the utilisation and optimisation of the building in the coming months, letting out additional space if the opportunity was available to do so.

·         In relation to the increase of children in care numbers, it was queried whether there was a link between Covid and increased numbers.

·         In response, it was noted that the resilience of families had weakened as a result of Covid which had impacted on maintaining robust family relations. It was also recognised that there had been a rise in reported mental health related concerns and there was a wider economic impact of pandemic including the present cost of living challenges for families. It was reported that the increase in looked after children was a national and regional issue, and following a benchmark analysis, Stockport continued to have one of the lowest numbers of looked after children in the North West. 

·         Welcomed the reassurance that the likelihood of a Section 114 Notice remained unlikely.

·         In relation to the estimation of the reduction of between 100 and 115 posts, it was queried how many of these where vacant posts and the expected impact that this would have on services for residents.

·         In response, it was stated that the council had hundreds of vacant posts at any one time relating to issue around recruitment and retention of staff and whilst the report detailed an indicative figure, the council were still discussing the details. It was noted that the impact on the workforce was of paramount importance to the Corporate Leadership Team and Cabinet who were considering the service and individual impact which would then be brought to Committee for consideration.

·         In relation to the regeneration programme and Woodbank Hall, it was noted that caution should be exercised when assigning funding to graded listed buildings. 

·         It was queried whether the vacancies within the audit team had been filled. In response, it was confirmed that the vacancies had been filled and new starters were in post.

·         It was noted that the Government were likely to complete a review of spending and the impact of this on local authorities was unknown.

·         It was recognised that the council was in a difficult financial position and it was inevitable that there were going to be changes to the services that were provided.

·         In response to a query around the Government Settlement, it was stated that the settlement was usually published in December and that the report was the first iteration of the financial plan for the council.

·         In relation to the likelihood of Council Tax freezing, it was acknowledged that the current economic situation was unprecedented and the council were awaiting external and internal clarity prior to any decisions being considered.

RESOLVED – That the report be noted.