The Council Meeting of Stockport Council, held on Thursday 27 February 2025, considered the Council Tax for the 2025/26 financial year, with a Band D property rate of £2,076.06. The meeting also considered the Housing Revenue Account (HRA) budget and rent levels for 2025/26, alongside the Medium Term Financial Plan and the 2025/26 Cabinet Revenue Budget, which included significant savings proposals.

Council Tax 2025/26

The council discussed its Council Tax requirement for the 2025/26 financial year, with a Band D equivalent Council Tax of £2,076.06. This figure includes the council's own requirement, the Mayoral Police and Crime Commissioner precept, and the Mayoral General precept (including Fire Services). The council considered whether its relevant basic amount of council tax for 2025/26 was excessive, in accordance with the principles set by the Secretary of State. The Council Tax requirement for Stockport Metropolitan Borough Council's own purposes for 2025/26 was noted as £206,234,970. The council calculated the Council Tax base for the whole council area as 99,339.6.

Medium Term Financial Plan – Financial Landscape and Forecasts 2025/26 to 2028/29

The council discussed its Medium Term Financial Plan (MTFP) for the period 2025/26 to 2028/29, highlighting the significant financial challenges faced due to insufficient funding for local government, which is not keeping pace with increasing service costs. The report noted a projected deficit of £3.724 million for the 2024/25 financial year, with a saving requirement of £10.210 million for 2025/26, rising to £53.867 million by 2028/29. The council noted the government's additional funding announcements but expressed concern that they do not fully address the rising costs and increasing demand for essential services, particularly in social care, SEND, and homelessness. The council discussed its ability to set a robust and balanced budget for 2025/26, and the need for challenging decisions to ensure long-term financial robustness. The MTFP update included adjustments based on the final Local Government Finance Settlement, which indicated a 6.5% headline increase in Core Spending Power, though this was offset by increased Employers' National Insurance Contributions. The council noted its disappointment at receiving no funding from the £600 million Recovery Grant, despite Stockport being one of the most polarised boroughs in the country. Cabinet proposed change proposals contributing £8.937 million to balance the 2025/26 budget, including savings in Adult Social Care, Waste Management, and Productivity and Efficiency. The council also discussed a recommended 4.99% Council Tax increase for 2025/26, comprising a 2.99% general increase and a 2% Adult Social Care Precept increase.

2025/26 Cabinet Revenue Budget

The council presented its proposed 2025/26 Revenue Budget, outlining a strategic approach to address significant financial challenges and deliver its priorities. The budget aims to balance the council's spend with its income, acknowledging the increasing cost of delivering services, evidenced by a £10.4 million overspend in the current financial year. The budget is shaped by the Borough Plan and Council Plan, with a focus on efficient and effective services and transformation. The proposed budget includes a 4.99% Council Tax increase (2.99% general, 2% Adult Social Care Precept), which the council stated was necessary to ensure financial sustainability and protect vital services, particularly for vulnerable residents. The budget also incorporates £8.937 million in change proposals, including savings in Adult Social Care, Waste Management, and Productivity and Efficiency. The council highlighted the importance of its Local Council Tax Support scheme and other support services in mitigating the impact of the Council Tax increase on residents.

Housing Revenue Account (HRA) Budget and Rent Levels for 2025/26

The council considered the Housing Revenue Account (HRA) Budget and rent levels for 2025/26. The report detailed a recommended HRA budget incorporating a rent increase of 2.7% for social and affordable rented properties and 3.2% for shared ownership properties. This increase was deemed necessary to support the HRA's investment requirements, particularly in light of rising repair costs and building safety investments. The report noted positive outcomes from the government's Autumn Budget, including greater certainty on future rents and reduced National Insurance costs, which offset some benefits but resulted in an overall positive impact on the HRA. However, conflicting demands on resources remained, with shortfalls in funding for Decent Homes and carbon reduction aspirations. The report also detailed proposed service charge increases, with significant changes expected in energy costs due to market volatility, although overall increases for many customers were projected to be less than the energy price cap. Customer affordability was addressed, with 80% of residents receiving Housing Benefit or Universal Credit to support housing costs. Investment in money and benefit advice services had resulted in £6.7 million of additional income for customers in 2023/24. A customer consultation on the proposals received 564 responses, with feedback highlighting concerns about property conditions, maintenance, and affordability.

2025/26 Capital Strategy and Capital Programme

The council reviewed its Capital Strategy and the three-year capital programme for 2025/26 to 2027/28. The Capital Strategy provides a framework for optimising and managing capital resources to support the council's strategic priorities, including regeneration, housing, and infrastructure improvements. The proposed capital programme totals £223.171 million, with £163.300 million allocated for 2025/26. Significant investments are planned in Economy, Regeneration and Housing (£82.410 million), including regeneration schemes like Weir Mill and Cheadle Eco Business Park, as well as HRA and affordable housing projects. The Finance and Resources portfolio has a programme of £32.775 million, largely for schools' estate improvements and non-education capital schemes. Parks, Highways and Transport Services have a programme of £33.569 million, focusing on major highway schemes like the A6 to Manchester Airport Relief Road and Cheadle Town improvements. The report detailed the funding sources for the capital programme, including grants, borrowing, capital receipts, and revenue contributions. Prudential indicators were presented to demonstrate the affordability, prudence, and sustainability of the capital plans.

2025/26 Treasury Management Strategy, Annual Investment Strategy and Minimum Revenue Provision Policy

The council reviewed its Treasury Management Strategy (TMS), Annual Investment Strategy (AIS), and Minimum Revenue Provision (MRP) Policy for 2025/26. The TMS outlines the council's approach to managing its borrowing, investments, and cash flows, with a focus on security, liquidity, and yield. The report detailed the council's current treasury position, borrowing limits, and forecasts for interest rates, noting a projected fall in Bank Rate over the forecast period. The borrowing strategy aims to maintain an under-borrowed position where prudent, while also preparing to externalise some borrowing to fund major capital projects. The AIS sets out the parameters for managing the council's investments, with a strong emphasis on security and liquidity. The council's creditworthiness policy was reviewed, and investments will continue to be placed with highly creditworthy counterparties. The report also addressed Environmental, Social, and Governance (ESG) considerations, noting that while these are increasingly important, their practical incorporation into short-term treasury investments is challenging due to a lack of consistent market approaches. The MRP Policy for 2025/26 was also reviewed, outlining the council's approach to setting aside revenue to cover debt repayments.

Annual Pay Policy Statement 2025/26

The council reviewed its Annual Pay Policy Statement for 2025/26. The statement outlines the council's approach to pay policy, in accordance with the Localism Act 2011, and considers the challenging economic environment and the need to recruit and retain staff. It confirmed the use of the Greater London Provincial Council job evaluation scheme and the HAY job evaluation scheme for determining pay and grading. The council highlighted its commitment to the Real Living Wage, with rates increasing to £12.60 per hour from April 2025. The statement also detailed the pay structure for senior leadership roles, including the Chief Executive, Deputy Chief Executive, Executive Directors, and Directors, with their respective pay ranges and principles for determining individual remuneration. The report noted that the council's gender pay gap remains low, with female employees earning slightly more on average than male employees in both mean and median hourly rates for 2024. The council also confirmed its membership in the Greater Manchester Good Employment Charter.