The Corporate, Resource Management & Governance Scrutiny Committee met on Tuesday 14 October 2025 to discuss the council's financial health, insurance performance, and modern slavery statement. Key discussions included the significant financial challenges facing the council, the annual insurance report, and proposed amendments to the council's constitution.

Medium Term Financial Plan (MTFP) Summer Review Update and Cabinet Response

The committee received an update on the council's Medium Term Financial Plan (MTFP) for 2025/26 to 2029/30, highlighting significant financial challenges due to inflationary costs and increasing service demand. Councillor Julie Julian, Cabinet Member for Finance and Resources, explained that these pressures are not unique to Stockport, with local authorities nationwide facing similar funding gaps. The council is awaiting further clarity from the government on its financial settlement, expected in December. Despite the uncertainties, the council plans to progress with its financial planning based on current knowledge, making educated assumptions where necessary.

Councillor Jeremy Meal raised a query regarding the Manchester Airport dividend, noting a gain of nearly half a million pounds which would be used to mitigate the 2026/27 budget. Jonathan Davies, Director of Finance and Section 151 Officer, clarified that this dividend relates to an investment in airport car parking facilities and that interest payments on loans to the airport have begun to be repaid. He also noted that the shareholder dividend, based on business plan performance, is expected in the next couple of financial years.

Councillor David Sedgwick expressed concern about the projected deficit of over £8.3 million at the end of Quarter 1, describing it as the highest in recent years. Jonathan Davies assured the committee that significant work had been undertaken to address the causes of the overspend, including deep-dive panels and workshops, and corporate measures to strengthen recruitment and spend panels. He acknowledged that challenges lie in statutory services such as social care and special educational needs support, where demand is high and flexibility to mitigate costs is limited.

Councillor Alex Wynn asked about the crematorium's potential adverse impact on the MTFP, and Jonathan Davies explained that this relates to the revenue borrowing costs for the replacement of plant and machinery, which is being funded through borrowing. He estimated the cost to be around £300,000. Councillor Wynn also inquired about a reduction in pension contributions from 18.7% to 17.7%, and Jonathan Davies stated that a 1% reduction would equate to approximately a £1 million impact on the budget, and negotiations with the actuary are ongoing.

The committee also discussed the potential for council tax reform, with members expressing a desire for such changes. Councillor Julian noted that the fairer funding formula still bakes in an assumption of a maximum council tax increase, which feels unlikely at this point.

Annual Insurance Report 2024-25

John Pearsall, Head of Insurance Services, and Sarah Cook, Insurance Manager, presented the Annual Insurance Report. They highlighted a 11% increase in the total number of claims received, bringing the total to 382, which is within the historical norm. The highest areas for claims were identified as total locally company and highways. Repudiation rates, meaning the number of claims successfully defended, remained consistently over 90%, which was noted as a positive testament to the hard work of the insurance team and colleagues in highways and TLC.

Councillor Alex Wynn, who has a background in insurance law, asked about the council's participation in the Greater Manchester legal framework and its impact on accessing a panel of solicitors. John Pearsall confirmed that the framework provides preferential rates and that the council can still choose its own external solicitors, with insurers also having their own panels for complex or high-value claims.

Councillor Mark Jones asked about the process for determining that the decision to go to court was correct, even in cases where the council lost. John Pearsall explained that the council only takes cases to court if they believe they have a strong defence and are confident in their witnesses. He acknowledged that on-the-day factors can influence outcomes, but that lessons learned are used to improve processes.

Councillor Wynn also raised concerns about the increasing number of highways claims and asked if this was related to the end of the HIP programme or other factors. It was noted that while HIP is likely a factor, other elements are also at play. The high repudiation rate for highways claims was reiterated. Councillor Wynn also inquired about the insurance for tall blocks, noting that one had required alternative cover. It was explained that insurers are satisfied with the remaining tower blocks, but that certain insurers may have less appetite for specific risks, such as high-rise residential blocks due to their construction type.

Stockport Council's Civil Resilience and Business Continuity 2025 Progress Report

John Pearsall and Sam, from Civil Contingencies and Business Continuity, presented the progress report. This was the first inaugural report on civil contingencies and business continuity. They assured the committee that the council has the necessary skills and expertise to discharge its duties under the Civil Contingencies Act 2004. The report detailed work with multi-agency colleagues, including fire, police, and NHS, as well as the Greater Manchester Resilience Unit.

Councillor Alex Wynn asked about the inclusion of Office 365 applications in business continuity planning, specifically referencing issues with Microsoft and third-party applications. It was confirmed that Microsoft was brought in for this purpose, and that hard copies of business continuity plans are also maintained.

Councillor Jeremy Meal raised a wider question about support for smaller businesses in managing risk, referencing the Jaguar Land Rover incident. It was explained that while the council supports organisations it works with, such as schools and charities, it does not directly assist individual businesses. However, the new procurement act has specific requirements around contracts and contract management, which will provide assurance on the robustness of IT systems from future suppliers.

Councillor Wynn also inquired about work being done at the Greater Manchester level regarding cyber resilience. It was explained that there are numerous GM plans that feed into local plans, and that exercises have been run with the business continuity team and IT team to test resilience. Catherine, Senior Information Risk Officer, added that cyber security is a monthly agenda item for her board and that exercises, such as a simulated cyber attack, have been valuable in testing resilience.

Annual Complaints Report 2024-2025

Andrea Lingley presented the Annual Complaints Report. She highlighted that while there has been an increase in complaints, the rate of increase has slowed, and there has been a decrease in the number of complaints moving to further stages. Key areas of increased complaints were Children's SEND and Place services, while Adult Social Care complaints fell by 22%.

Councillor Rachel Bresnahan asked what changes in the process had led to a decrease in EHCP plan complaints. It was explained that there has been a focus on improvements within the process, with additional resources allocated to mitigate challenges. The report noted that in 2023, 445 EHCP plans were issued, and in 2024, 661 were issued, with 453 issued year-to-date.

Councillor Paul Wright asked if the allocation of £1 million from reserves to address Ofsted findings would have a positive impact on complaints. It was suggested that a better overall experience of services, particularly for vulnerable residents, would be expected to lead to a reduction in complaints over time.

Stockport Council Modern Slavery Statement 2025/26: Annual Review

Alan Lawson presented the Modern Slavery Statement. He highlighted that while local authorities are not currently required to produce these statements, it is expected to become a requirement in the future. He expressed pride in the council's proactive approach and the development of the statement over the years. Councillor Alex Wynn, who works in this area as part of his day job, praised the statement as fantastic and noted that it was impressive enough to have no notes for improvement. His only suggestion was to make the statement more prevalent on the council's website. Councillor Paul Wright echoed these sentiments, stating that the report opened his eyes to the severity of modern slavery worldwide. Councillor Julian noted that the report demonstrates that modern slavery is not solely an issue involving foreign nationals, but also includes issues like county lines.

Proposed Amendments to the Constitution - Financial Procedure Rules and Monitoring Officer Protocol

Vicki Bates, Assistant Director for Governance and Monitoring Officer, presented proposed amendments to the Financial Procedure Rules and the Monitoring Officer Protocol. The amendments to the Financial Procedure Rules are to complement changes to the Contract Procedure Rules, following new procurement legislation. The Monitoring Officer Protocol amendments are to reflect Local Government Association guidance on member model code of conduct complaints handling. Councillor Julian commented that the proposals for the Monitoring Officer Protocol were worthwhile and useful, and that amendments to the financial procedures had been previously discussed.

Loan to Stockport Homes for Development Scheme

Jonathan Davies, Director of Finance, presented a report on a request for approval of two loans to Stockport Homes Ltd (SHL) for the Hempshaw Lane development. He explained that the loans are required to cover an increase in costs due to construction inflation and additional works, partly offset by increased sales receipts and grant funding. The loan facility of £91.9m to SHL has now closed, and these are the final loans required for new developments through Stockport Homes Ltd. Councillor Wright expressed his satisfaction with the report, noting that the development on Hempshaw Lane had taken a long time and that this was tying up loose ends.

Scrutiny Work Programme

Jacqueline Kramer presented the Scrutiny Work Programme. Councillor Alex Wynn requested that the English Devolution and Community Empowerment Bill be added to the work programme, noting its potential impact on corporate governance structures and the council's relationship with Greater Manchester. Councillor Jeremy Meal suggested that the bus franchising discretionary review be held over until the 3 March meeting, to allow for a year of bus franchising data in Stockport to be analysed, and proposed renaming the item to Bus Franchising Annual TFGM Review. Councillor Wright noted that Stockport Homes, EHCPs, and sickness absences were all captured on the work programme. The next meeting was scheduled for 25 November, which was anticipated to be a meaty meeting due to the MTFP.