The Executive of Manchester Council met on Wednesday 8 July 2026 to discuss progress on the Our Manchester Strategy, the council's financial position, and future service delivery models. Key decisions included endorsing the approach to the Medium-Term Financial Plan, approving the use of grant funding and reserves, and agreeing to bring sport and leisure services back under direct council control.

Our Manchester Progress Update

The Executive received an update on progress against the Our Manchester Strategy 2025-35. Councillor Shazia Butt, Executive Member for Culture, Libraries and Leisure, highlighted several key developments. Libraries across the city are benefiting from expanded opening hours due to an additional £1.7 million investment, with six community libraries now open at least 30 hours per week and eight council libraries set to reintroduce Sunday openings from September. Manchester has also been selected as the host city for the prestigious TV Festival from 2027 onwards, an event previously held in Edinburgh, which is expected to significantly boost the city's creative industries and hospitality sector. Manchester Day will feature a Catalan theme this year, with performers from Barcelona, and the BRIT Awards will return to Co-op Live on 27 February 2027. Additionally, a new outdoor basketball court has opened in Levenshulme as part of a wider investment in community sports facilities.

Councillor Gavin White, Executive Member for Housing and Regeneration, reported that groundworks have commenced on the Manchester Digital Campus in Ancoats, a 5.5-acre site that will eventually house nearly 9,000 people from multiple government departments focused on digital delivery. Councillor Basat Sheikh, Executive Member for Neighbourhoods, noted a milestone in the restoration of Heaton Hall, with work on rewiring, fire detection systems, and heritage lighting nearing completion. The Grade I-listed building is preparing to welcome visitors later this year.

The Executive noted the report, acknowledging the progress made across various strategic areas.

Revenue Budget Process 2027/28 and Medium Term Financial Strategy Update

The Executive considered a report on the council's Medium-Term Financial Strategy (MTFS) and the upcoming budget process for 2027/28 to 2029/30. Councillor Andrew Simcock, Executive Member for Finance and Resources, explained that the MTFS, approved in February 2026, initially showed a balanced position for 2026/27 with projected available resources for investment in subsequent years. The final government settlement provided an additional £740 million nationally, leading to a projected increase in Manchester's Core Spending Power (CSP) of around 32% in cash terms and 24.2% in real terms by 2028/29 compared to 2025/26. This represents a significant reversal of the cuts experienced between 2010 and 2025.

However, the report highlighted the reliance on smoothing reserves of £18 million in 2026/27 and £5.5 million in 2027/28 to balance the budget, which, while a sound strategy for developing longer-term mitigations, represents a managed risk. A deficit of £9.5 million is forecast for 2029/30, partly due to the end of a £20 million recovery grant and increasing costs. The strategy proposes that any new investment should be time-limited or focus on spend to save proposals. Further efficiencies of approximately £10.5 million are anticipated through the use of technology and continuous improvement principles. The report also mentioned the government's intention to write off up to 90% of the cumulative historical deficit for the Dedicated Schools Grant.

Councillor John Leech, Leader of the Lib Dem Group, raised concerns about the sustainability of using smoothing reserves and the increased use of Housing Revenue Account (HRA) reserves to balance the HRA budget.

The Executive endorsed the proposed approach to updating the Medium-Term Financial Plan.

Revenue Monitoring Report to the End of May 2026

Councillor Andrew Simcock, Executive Member for Finance and Resources, presented the council's revenue outturn position to the end of May 2026/27, indicating a projected overspend of £6.0 million. This is attributed to significant financial pressures across local government, particularly in the social care sector for both children and adults. Of the £25.0 million in savings planned for 2026/27, 26% had been achieved, 50% were on track, 9% were at medium risk, and 15% were deemed high risk, primarily due to inconclusive benefit modelling for the 'care closer to home' initiative in Adult's services.

The report also detailed the potential write-off of a significant portion of the council's Dedicated Schools Grant deficit, with up to £53.3 million potentially being written off from the cumulative deficit to March 2026. The 2026/27 in-year deficit is forecast at £34.0 million, with a potential write-off of £30.6 million if the offer is extended. The HRA budget faces an increased drawdown from reserves, now forecasted at £19.2 million, an additional £5 million call on reserves, mainly due to property repairs, disrepair claims, compensation, and fire risk assessment expenditure, alongside reduced heating income and increased depreciation charges.

The Executive approved several budget virements, including the allocation of reduced pension contributions (£4.417m) to corporate budgets, resulting in reductions across various service areas, and the allocation of £1.756m in cost of living budgets to support residents. They also approved the proposed use of revenue grant funding, including £55k from the Greater Manchester Combined Authority (GMCA) for market operations in Withington, £1.725m from GMCA for economic development and regeneration projects, and various grants for electric vehicle charging, redevelopment studies, planning service capacity, and the Victoria North programme.

Furthermore, the Executive approved the use of the Prevention Fund Reserve (£6.665m) to support initiatives such as community hubs, therapy-led demand reduction, early help, social value brokerage, digital inclusion, youth employment, and adult skills. Additional reserve funding was also approved from the Transformation Reserve (£339k in 2026/27) to expand Microsoft 365 Copilot rollout and fund an AI and Automation Digital squad, and from the Investment Reserve (£59k) and Business Rates Reserve (£1.0m) for regeneration projects.

Councillor John Leech welcomed the underspend in Looked After Children services but sought clarification on the contribution of additional grants to year-on-year spend and expressed concern about the shift from a reported surplus to a potential overspend, requesting assurance on measures being taken to address the position.

UNICEF - Child Friendly City Recognition

Manchester has been formally recognised by UNICEF UK as a Child Friendly City, a significant milestone achieved through nearly four years of collaborative work with children, young people, and partners. Councillor Julie Reid, Executive Member for Early Years, Children and Young People, highlighted that this recognition, the first for a city in England, demonstrates a whole-system approach to governance with strengthened alignment between key boards and partnerships. UNICEF noted clear evidence of sustained shifts in children and young people's experiences across the city, including widespread participation and tangible changes to services and decision-making processes.

The Executive pledged to continue advancing children's rights, endorsed the commitment needed to sustain progress, and agreed to receive annual progress reports. Councillor John Leech welcomed the recognition and sought clarification on how future progress and success would be measured.

Future of Sport and Leisure Operating Model

The Executive considered the future operating model for sport and leisure services, currently contracted to Manchester Active Ltd (MCRactive) until March 2028. Councillor Shazia Butt, Executive Member for Culture, Libraries and Leisure, presented two viable delivery options: extending the contract with MCRactive or bringing the service back in-house. A cost-benefit analysis indicated that reintegrating the service within the Council would offer significant advantages, including stronger brand alignment, reduced confusion for residents, clearer accountability, and enhanced value for money.

The preferred option is to bring the service back in-house, which is anticipated to save approximately £890,000 over five years, with these savings to be reinvested into community sports projects. The transition will involve the transfer of staff and functions under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). MCRactive is expected to be wound down and formally dissolved.

Councillor John Leech questioned why the current model, initially established to deliver savings, was now deemed not worth continuing. The Executive agreed to proceed with bringing the service in-house, with a proposed go-live date of 1 February 2027, one year and one month earlier than the contract expiry. They also agreed to utilise the Council's Shareholder Panel to oversee due diligence for the winding down of MCRactive and the TUPE transfer, noted Sport England's support for insourcing, and agreed to establish a Sport and Physical Activity Board following the wind-down of the MCRactive Board.

Prevention Fund Investment in Employment & Skills

The Executive considered proposals to scale up evidence-based activities to support young people into apprenticeships and jobs, and adults into work and better quality careers, using Prevention Funding. Councillor Garry Bridges, Deputy Leader (Statutory), explained that this initiative aligns with the Corporate Plan priority of creating an inclusive and sustainable economy. The proposals include commissioning apprenticeship and youth unemployment focused programmes (£0.728m) and Skills and Career Progression programmes (£1.37m), funded from the Prevention Fund up to March 2029.

The report highlighted that while Manchester's economy is growing, many residents still face barriers to employment due to poor health, disability, or low skills. Youth unemployment is a growing concern nationally and locally, exacerbated by digitisation and inflationary pressures. The city and Greater Manchester region also face a lack of technical skills at higher levels. Apprenticeship starts for young people have declined nationally, and Manchester has traditionally had a low number of apprenticeship starts for 16-18 year olds.

The Executive agreed to allocate £2.736 million from the Prevention Fund to these programmes and delegated authority to the Strategic Director (Growth and Development) to manage the detailed application and award of contracts and grants. Councillor John Leech sought clarification on how residents would be selected for these programmes and noted the importance of positive engagement for their success.

Water Street Strategic Regeneration Framework Consultation Update

The Executive received an update on the public consultation for the draft update to the Water Street Strategic Regeneration Framework (SRF). Councillor Gavin White, Executive Member for Housing and Development, noted that since the original SRF was produced in 2017, significant transformations have occurred in the area, including the Trinity Islands project and the Potato Wharf residential scheme. The updated aspiration for Water Street is to provide a high-quality, residential-led proposition with significant public parkland, enhanced biodiversity, and integration with the River Medlock. The SRF area boundary has also been amended to allow for potential connections to surrounding areas.

The consultation, which ran for nine weeks, received 117 responses, which were generally positive and constructive. The responses covered themes such as support for regeneration, height and density, impact on residential amenity, environmental quality, transport safety, housing affordability, and the provision of amenities. The Executive noted the outcome of the public consultation and approved the Water Street SRF Update, requesting that the Planning Committee take the framework into account as a material consideration for future planning applications in the area. Councillor Johns, the Deansgate Ward Councillor, welcomed the proposals, particularly the creation of a second city centre park.

Manchester Local Plan - Draft for Consultation (Regulation 19)

The Executive considered the Regulation 19 version of the Draft Local Plan, which represents a final draft intended for submission to the Secretary of State for Examination. Councillor Gavin White, Executive Member for Housing and Development, explained that the Local Plan guides land use and provides a framework for decisions on future development proposals until 2039. This stage follows previous consultations on issues and a draft plan (Regulation 18).

The current consultation will run for six weeks from 17 August to 28 September 2026. Responses will be assessed against four tests of soundness and legal compliance, focusing on whether the plan promotes economic growth, makes provision for necessary homes, employment, and infrastructure, is based on robust evidence, can be achieved within the plan period, and does not conflict with the National Planning Policy Framework. The plan is expected to be submitted for examination by 21 December 2026.

Councillor John Leech commented on the proposed 30% target for affordable housing provision, suggesting it should be a starting point for calculation, and requested the inclusion of Ryebank Fields and Medlock sites within the Local Green Space allocations.

The Executive approved the draft Manchester Local Plan and supporting background documents for consultation and delegated authority to the Director of Planning, Licensing and Building Control, in consultation with the Executive Member for Housing and Development, to make minor or non-material amendments prior to the consultation's commencement.