Agenda item

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

The report outlines our strategic approach in responding to the review of the medium-term financial plan. This report should be read in conjunction with the MTFP update report (both parts A and B) presented to Cabinet meeting on 19 September 2023.

The appendix to the 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 Committee is recommended to comment on the report and the proposals presented within that are relevant to the Committee’s remit.

Officer Contact: Gill Lawton on 0161 474 3686 or email gill.lawton@stockport.gov.uk

The Cabinet Member for Finance & Resources submitted a report (copies of which had been circulated) outlining a strategic approach in responding to the review of the medium-term financial plan. This report was read in conjunction with the Medium Term Financial Plan update report (both parts A and B) presented to Cabinet meeting on 19 September 2023.

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

The following comments were made/ issues raised:-

·         Members queried the background to the structure of potential savings, in particular how adjustments were made for statutory services.

·         In response it was reported that the primary focus of the MTFP was to look at demands and pressures in terms of key assumptions against the council’s resources which was how the savings requirement was calculated in order to set a balanced budget. The Cabinet’s strategy in responding to the MTFP was to consider it under four lenses: demand management, value for money and commissioning, robust corporate governance and digital enabled savings. The council’s statutory provisions included Social Services and Education and its focus was on demand management and protecting the preventative approach. The Children, Families and Education portfolio was not expected to contribute to next year’s required savings. In other areas of the Council’s work, efficiencies were being driven to save costs along with service reductions. Overall the Cabinet had tried to respond to the pressures and recognised those areas which required continued protection and investment whilst making savings and efficiencies where the impact could be better managed.

·         The MTFP report stated that some services would be redesigned, some reduced and others stopped; the detail related to this aspect of the plan was pending and it would be reported to a future of this Committee.

·         In terms of staffing, it was clarified that there would be no reduction rather than no change in the numbers.

·         In relation to the potential reduction of the Mayoral hospitality budget; whilst the context in terms of the overall budget was appreciated, some concern was expressed in terms of the way the council would be able to present to guests and the wider benefits which that might bring. Members asked whether the budget would be reduced to actual spend or whether there would be a reduction in that budget. In response it was stated that the plan for the Mayoral hospitality budget would include a reduction in scale for some events, whilst retaining the warm welcome and recognising the importance of the Mayoral role.

·         Members expressed concern about the potential need to use reserves to top up the council’s budget. Further, in reference to other local authorities which had issued Section 114 Notices, members suggested that the council should stand in solidarity with them as Stockport, along with all other local authorities, was in a difficult position. In response it was stated that the council was taking every scrap of learning from local authorities which had issued Section 114 Notices in order to bolster its own financial management and avoid potential pitfalls.

·         The council’s MTFP was an iterative document and the Chancellor’s Autumn Statement, along with Government statements and changes to policy might lead to alterations to the plan and changes to assumptions made relating to expenditure forecasts. The report was due to be updated in the new year following both the Autumn statement and the Local Government Finance Settlement.

·         In relation to business rates it was reported that they were normally forecast to increase by CPI (Consumer Price Index) and the plan contained the council’s forecast for CPI which was assumed to be circa six per cent. In previous years business owners had been charged a reduced rate whilst central government had compensated local authorities with the difference up to the CPI rate. A devolution deal had been announced for Greater Manchester involving a 100 per cent business rate pilot. Stockport had previously budgeted for that one year in arrears as the arrangement was subject to agreement. However, the devolution deal had been approved by Government for a period of ten years which provided certainty and allowed the council to budget for the 100 per cent business rate as it occurred.

·         The Quarterly Monitoring Updates would provide detail on financial recovery plans for the current financial year.

·         In terms of digitalisation and automation it was reported that there was scope to automate external access to some council services, along with opportunities for internal automation. It was further reported that digital inclusion was planned to ensure that no one was left behind either in terms of access to council services or other aspects of digital life in general. Opportunities for automation and digitalisation would not come at the expense of those who needed to access council services.

RESOLVED – That the report be noted.