The Corporate, Resource Management & Governance Scrutiny Committee of Stockport Council met on Tuesday 21 January 2025 to discuss the council's financial position, future plans, and operational management. Key topics included the Medium Term Financial Plan, budget monitoring, the Asset Management Plan, the Council Plan refresh, and proposed changes to the management of Stockport Active CIC.

Cabinet Response: Responding to Medium Term Financial Plan

The committee was scheduled to consider a report outlining budget proposals aimed at addressing the council's financial challenges and the rising cost of delivering services. The report detailed the financial pressures facing the council, including increased demand for services such as children's social care, education, health and adult social care, and homelessness, exacerbated by rising inflation and insufficient central government funding. It highlighted a projected £10.4m overspend against service budgets for 2024/25 and noted that the provisional local government settlement for 2025/26 offered a less favourable increase than other metropolitan boroughs. The report also discussed the council's reliance on Council Tax and the challenges of balancing increases with the need for a robust financial position. Change proposals contributing £8.937m in budget reductions were presented to support the balancing of the 2025/26 budget.

2024/25 Quarter 2+ Budget Monitoring Update

A report was presented to provide an update on the revenue budget forecast outturn as at the end of November 2024 (Quarter 2+). This update included information on the Dedicated Schools Grant (DSG), Housing Revenue Account (HRA), Collection Fund, Reserves, and the Capital Programme. The report indicated a projected £3.724m deficit for the revenue budget, largely due to a £10.476m deficit on cash-limited portfolio budgets, offset by a £6.752m surplus in non-cash-limited budgets. Significant pressures were noted in Children, Families & Education, and Health & Adult Social Care. The Dedicated Schools Grant faced a projected year-end deficit of £18.762m, with concerns raised about the sustainability of the high needs block. The Housing Revenue Account was forecasting a surplus of £0.547m, while the Collection Fund anticipated a surplus of £0.461m.

Asset Management Plan Capital Programme - Operational Estate 2025/26 - 2028/29

The committee was scheduled to review the progress of the 2024/25 Asset Management Plan (AMP) capital programme. The report set out the proposed programme of work for the 2025/26 financial year and an indicative programme up to 2028/29. The focus for the upcoming years was to remain health and safety-led, while undertaking further estate reviews to optimise and rationalise the operational portfolio. The programme aimed to ensure that retained assets were fit for purpose, well-maintained, and supported modern, efficient service delivery with minimal environmental impact, aligning with Stockport Climate Action Now (CAN) priorities. The proposed AMP for 2025/26 included allocations for libraries, children's homes, civic buildings, heritage properties, the leisure estate, and operational properties, with a total estimated cost of £2,619,874 for that year.

Council Plan Refresh

A report was presented regarding the refresh of the Stockport Council Plan 2024-2027. The plan, the council's main strategic document, outlines its role in supporting the borough and its four key ambitions: Investment, regeneration and creating jobs; Education, work and skills; Wellbeing in neighbourhoods; and Delivering for those who need it most. The refresh aimed to update the plan to reflect progress made since its adoption in 2024, including an updated introduction from the Leader of the Council and a new chapter detailing progress so far. The Big Ambitions and Cross-Cutting Themes of Climate Action Now and Fair and Inclusive Stockport remained unchanged, as did the four Enabling Programmes: Our Workforce, Working with Others, Radically Digital Stockport, and Delivering Change and Spending Wisely.

Stockport Active CIC (Life Leisure) - New Management Arrangements

The committee was scheduled to consider a report proposing changes to the management arrangements between Stockport Council and Stockport Active CIC (trading as Life Leisure). The proposed change would designate the CIC as an agent of the Council, allowing the Council to take advantage of new taxation arrangements for leisure provision and reduce annual service costs. This change was anticipated to save the Council approximately £0.700m per annum by enabling the recovery of VAT on expenditure related to leisure services. The report detailed how the CIC would act as a disclosed agent, with customers entering into agreements directly with the Council, administered by the CIC. This change was intended to contribute to achieving a nil management fee by 2027/28, as assumed in the Council's Medium Term Financial Plan.

Use of Surveillance Powers - Regulation of Investigatory Powers Act 2000 and The Investigatory Powers Act 2016

A report was presented concerning the Council's Regulation of Investigatory Powers Act (RIPA) Policy. The policy requires annual consideration by elected members to ensure that any use of RIPA powers is appropriate and compliant with the Council's Code of Practice for covert surveillance. The report noted that the Council had not exercised its RIPA powers since the last report. The committee was recommended to approve the RIPA Policy/Code of Practice for the forthcoming year. The policy outlines the framework for ensuring investigatory techniques are used lawfully and are necessary for the prevention or detection of crime, with safeguards against abuse.

Scrutiny Work Programme

The committee was presented with a report outlining planned agenda items for future meetings and Forward Plan items within the committee's remit. This included topics such as the Treasury Management Strategy, the Capital Programme, the Council Plan refresh, and the Stockport Active CIC business plan. The committee was invited to consider the information and propose any additional agenda items for future meetings.