Agenda item

Report of the Deputy Leader and Cabinet Member for Finance and Corporate Services is attached.

Councillor Thorpe, Deputy Leader and Cabinet Member for Finance and Corporate Services, presented an overview of the 2025/26 outturn position. He advised Members received an update on the Council's financial position, noting an improved forecast during the year, although budget pressures remained and continued careful financial management was required. Progress had been made in delivering planned savings and managing service demand, while work to support long-term financial sustainability continued. Members also noted that some capital programme expenditure had been reprofiled into future years to reflect revised delivery timescales for major projects.

In response to a question submitted in advance by Councillor Birchmore regarding the £462,000 variance in business rates income, officers explained that £242,000 related to a lower-than-anticipated contribution from the Greater Manchester Combined Authority through the 100% Business Rates Retention Scheme, with the remaining difference arising from a number of smaller variances. Members were advised that collection performance remained positive, with the Collection Fund reporting an in-year surplus of £493,000.

Responding to a question from Councillor Birchmore regarding the £1.372 million underspend within the Place Directorate, officers advised that this was not solely due to project delays. The variance reflected a combination of increased income from traded services, higher service income levels and savings arising from vacant posts.

Councillor Birchmore asked for clarification on the £1.61 million unachieved saving linked to the reintegration of Six Town Housing into the Council. Officers explained that this represented the remaining element of a wider £3 million savings target. Some savings had already been achieved through reviewing costs chargeable to the HRA, while work continued to identify wider integration efficiencies. The remaining saving had been carried forward into 2026/27 and would continue to be monitored through regular financial reporting.

During discussion, members considered opportunities for increasing Council income. Councillor Pilkington asked about the Council's approach to revenue generation, including planning fee increases. Councillor Thorpe stated that opportunities to commercialise Council assets and services were being explored, including the use of green spaces and events, but noted that there were limits to the level of income that could realistically be generated.

In response to a query from Councillor Rydeheard, it was confirmed that Heaton Park remained under the ownership of Manchester City Council, having been gifted to Manchester in perpetuity.

Councillor Martin asked about contingency plans should the Council need to make further use of reserves. Councillor Thorpe highlighted the structural financial challenges facing local government, particularly the increasing costs of Adult Social Care and the limitations of existing funding arrangements. Officers added that the Council maintained a Budget Stabilisation Reserve and was working to reduce reliance on reserves over the medium term.

Members discussed the wider issue of Adult Social Care funding and whether further support could be secured through joint lobbying with other local authorities. Concerns were raised regarding the sustainability of the current funding system and the burden placed on councils by increasing care demands. Officers advised that discussions continued with Greater Manchester partners, the Integrated Care Board and NHS organisations to secure fair and consistent funding arrangements, particularly in relation to hospital discharges and mental health placements that create significant costs for local authorities.

Councillor Martin also raised a question regarding concessionary arrangements at leisure centres. Councillor Thorpe acknowledged the importance of maintaining accessible services and noted the health and wellbeing benefits they provide to residents.

It Was Agreed:

·       The Committee noted the report.