The Resources and Governance Scrutiny Committee of Manchester Council met on Thursday 23 July 2026 to discuss development agreements, the council's revenue budget process and medium-term financial strategy, and an update on the new finance and HR system. The committee noted reports on all these items.

Development Agreements

The committee received an update on the Council's framework for development agreements and overages related to new developments on council land and assets. The report detailed how these agreements are negotiated, managed, and monitored, highlighting their importance in advancing the Council's growth agenda and supporting corporate priorities. Discussions covered the governance arrangements, the CPAD system used for recording and monitoring agreements, and what happens when milestones are missed. Examples of recent agreements were provided, including those at Hinchley Road in Charlestown and Levenshulme Cricket Club. The committee was also informed about the Council's approach to defining affordable housing, with national guidance defining affordable rent as up to 80% of market rent, though Manchester's approach prioritises social housing with rents capped at the Local Housing Allowance rate. The redevelopment of Church Street was also discussed, with the Council having the authority to impose robust conditions to secure affordable housing. The committee noted the report.

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

The committee reviewed the current position of the Medium-Term Financial Strategy and the planned approach to the 2027/28 to 2029/30 budget process. A forecast deficit of £9.5 million was projected for 2029/30, largely due to the expected end of the Recovery Grant. The report highlighted growing demand pressures, particularly in Adult Social Care, and a cumulative deficit of £59.2 million for the Dedicated Schools Grant. The council anticipated savings through increased use of technology and transformation. Discussions included the drivers of social care overspends, the potential return of airport dividends, and the measures proposed to achieve efficiency savings. The potential impact of a 4.99% Council Tax increase was also raised. The committee noted the report.

Our New Finance & HR System - People and Money Programme (Part A)

An update was provided on the replacement of the council's finance and HR system. The implementation includes the deployment of Concur for expenses, Success Factors for HR/Payroll, and S/4HANA for finance, with planned go-live dates in late 2026. The rationale for the new system is that the current system is outdated and costly to maintain. The report detailed progress on workstreams, resourcing, data cleansing, and testing. Delays had been encountered due to the complexity of the project and issues with the implementation partner, leading to a revised go-live date. The committee was informed about the adopt, not adapt approach, where the council will align its processes with the system's standard functionality. The report also covered the Concur expenses system, which has been live since April 2025, and the establishment of an ERP reporting workstream. The committee noted the report.

Overview Report

The committee received an overview report containing key decisions within its remit, responses to previous recommendations, and the committee's work programme. A query was raised regarding proposed land disposals, with the City Treasurer explaining that receipts must be reinvested into capital projects or fixed assets. The committee noted the report and agreed to its work programme.

The committee also resolved to exclude the press and public during the consideration of a confidential report on the financial position of the finance and HR system replacement (Part B).