Agenda item

A report from the Leader of the Council, Councillor E O’Brien is attached.

Councillor Bernstein introduced Councillor Holt as Chair of Health Scrutiny and Councillor Wright as Chair of Children and Young People Scrutiny to the Committee this evening.

Councillor Eamonn O’Brien, the Leader of the Council and Cabinet Member for Finance and Growth, presented the report which outlined the forecast financial position of the Council at the end of 2021/22 based on the information known at the end of the third quarter, 31^st December 2021. The report set out the position for both revenue and capital and provides an analysis of the variances, both under and overspending.

The following questions and comments were raised:

·         In response to a question raised regarding the projected underspend of money for potholes, the Leader advised this is related to the fact the team has been under pressure and impacted from the pandemic. However, in the last month there has been £250,000 invested in filling potholes.

·         When asked about the difference between Capital Themes ‘proposed revised budget’ and ‘forecast’, he advised there are many reasons such as resources, environmental, weather conditions and access to alternative external funded all impact what and when the money is spent.

·         Questions on the underspend on Children and Young People and Highways were asked of the Leader, in response Cllr O’Brien advised the Highways spend is a three-year programme so spends will be taken forward. The delay in spend has been due to pressure on the team.

·         In relation to a comment on the bad debt it was confirmed work is taking place on bad debt provision in the Sub-Group and provided a reassurance that work is now taking place to start proceedings on recoverable debt.

·         The Leader was questioned on the value for money from the Corporate Core. In response he advised we have one of the Leanest Corporate Core’s with our back-room functions. In addition, Geoff Little, Chief Executive that services were brought together into a Corporate Core from previously being departmental functions.

·         In response to a question on how realistic it is that mitigations identified will be delivered the Leader advised he is confident mitigations will be achieved and if not, there will be conversations to question what else can be done.

·         Questions were asked on the matter of the Manchester Airport investment. It was advised that there are two elements to airport investment: shares and subsequent dividends and a series of loans. The share investment was used to invest in the car park titled Project Apollo. £30m has been given in further investment to Manchester Airport. However, over the life of the investment it is believed it will generate income back into the council and 2025-26 is when we expect to receive the dividend.

·         A question on the Business Support Review and the completion of this was questioned. In response the Leader advised the review has finished and savings can be taken from the start of the financial year on the 01^{st of} April 2022.

·         Questions on the Children and Young People overspend this year and if the budgeted amount for the next financial year is sufficient.  In response the Leader advised that locally we need to add resources, capacity, and reforms around children’s services. Secondly it has been recognised that prior to Ofsted the caseloads are too high, and OFSTED reinforced this. Two additional teams are currently working to reduce caseloads.

·         Questions on the reserves were asked; in response the Leader advised a new reserves strategy is being brought in place. The Leader advised we should not over rely on reserves but do acknowledge things out of our control can impact us; from a huge increase in demand especially in Adult Social Care. The Leader assured the Committee that when we use reserves we do so in a way that is sustainable as pressures will only get worse. In addition, Sam Evans Executive Director of Finance advised that guidance from CIPFA which advises you should retain 10% of your revenue budget, in our case that would be £17m.  

·         In questions relating to Children’s Services the Leader explained the DSG recovery plan will be brought back on a regular basis to ensure it is well managed.  The impact on schools and management of current underspend is being managed and will regularly be reviewed.

·         Councillor Peel made a request that information on the reserves is put on the Council’s website to help Councillors to communicate with residents; this should include what reserves we have and why.

It was agreed:

1.   To circulate a list of how the funding allocation and the schemes carried forward of £10.523m (page 14, paragraph 14).

2.   To circulate the details of the grants contained within Table 15 (page 33)

3.   To add information to the Council’s website to help Councillors to communicate with residents on the reserves; this should include what reserves we have and why.

4.   To note the Contents of the report.