The Corporate, Resource Management & Governance Scrutiny Committee meeting on 25 November 2025 reviewed the mid-year performance and financial reports for the Finance & Resources portfolio and the wider council. Discussions also covered the medium-term financial plan, treasury management, and annual reviews of business rates and council tax discounts. The committee considered proposals for the retention of existing discretionary reliefs for business rates and council tax, with amendments to ensure discretionary support does not offset national policy changes, and the approval of the Council Tax Empty Homes Policy.

2025/26 Mid-Year Portfolio Performance and Resources Report: Finance & Resources

Councillor Jimmy Julian, Cabinet Member for Finance and Resources, presented the mid-year report for the Finance & Resources portfolio. He highlighted positive performance in areas such as the rollout of the Dignity at Work and Zero Tolerance policy, council tax and business rate collection rates, and improvements in processing housing benefit claims and dealing with complaints. He also expressed particular satisfaction with the support provided through the Household Support Fund, especially the family support vouchers.

Councillor Alex Wynne, Chair of the CRMG Scrutiny Committee, acknowledged the positive aspects of the report but questioned the red indicators, specifically regarding my conversation completion rates. Councillor Julian explained that the current measure relies on the All Colleagues Survey, which may not accurately reflect completion rates due to the rebranding from PDRs. He assured that the team is working on shifting the data source and expects to report on richer data within the next couple of months, aiming for a more positive result by March.

Regarding average sickness days, Councillor Julian stated that while live data wasn't available, sickness and absence were moving in the right direction, with significant support from the people team. Councillor Rachel Bresnahan raised a point about the sickness pay policy, questioning if changing it for new staff could impact absence rates. Councillor Julian responded that the focus is on supporting employees back to work and balancing financial impacts with workforce support.

Councillor Paul Wright inquired about Freedom of Information (FOI) requests and the GM Good Employer Charter. It was clarified that FOI figures are within the report, and while it's a challenging target, improvements are being seen. The complexity of corralling FOI requests was noted as a resource challenge. Regarding the GM Good Employer Charter, it was acknowledged that the target was forecast to be missed, and a strategy to support businesses was being developed, particularly in the hospitality sector.

Councillor Christine Carrigan questioned the meaning of re-phasing in relation to projects. Jonathan Davies, Director of Finance and Section 151 Officer, explained that re-phasing refers to adjusting the scheduling of capital programme activities due to various reasons like procurement processes or feasibility, always accompanied by a risk assessment. Councillor Carrigan sought more justification for re-phased projects, particularly in education capital, and whether schools were consulted. It was confirmed that conversations with headteachers occur and that the Asset Management Programme for finance and resources would come to scrutiny, while the Education Asset Management Programme would go to Children's Scrutiny.

Councillor Julian also addressed the climate and carbon targets, noting that reallocating or delaying capital investment in energy efficiency projects was being considered.

Councillor Dena Ryness asked about the strategy to improve Council Employee Performance Reviews, referencing issues that sometimes arise from them. Councillor Julian reiterated the move to my conversation and the ability to get data directly from the system, expecting a more accurate picture in a couple of months.

Councillor Jeremy Meal commended the staff for their hard work in maintaining performance indicators, noting the generally positive RAG ratings.

Councillor Alex Wynne sought clarification on the council tax and business rate collection percentages, which were confirmed as forecasts for the end of the financial year.

Councillor Wynne also declared an interest in working for the Information Commissioner's Office when discussing FOI requests. He questioned when Stockport might reach the 80% FOI response target, and it was explained that this is challenging due to fluctuating volumes and the need to streamline processes. The Chair, Councillor Wynne, suggested revisiting this issue for agenda planning.

Councillor Julian also touched upon the loan facility for Totally Local Company (TLC), noting that £2 million had been used and that further details on TLC's plans would likely be in their annual update next summer.

Mid-Year 2025/26 Corporate Performance and Resources Report

Councillor Mark Roberts, Leader of the Council, presented the mid-year corporate performance and resources report, highlighting the challenging financial landscape and the importance of the council's robust Medium-Term Financial Plan (MTFP). He noted that details of government funding reforms were still awaited but that the council was working to shape its budgets in an uncertain environment. He also praised the work of the Resident Advice and Support (RAS) Alliance and celebrated Stockport Council's recent Municipal Journal 'Council of the Year' award.

Councillor Wynne raised concerns about the Dedicated Schools Plan and the lack of clarity from the government regarding future funding. Jonathan Davies confirmed there was no clarity beyond the two-year statutory override extension and that this was a concern for many authorities. Councillor Wynne asked about the cost of maintaining the current situation, which was estimated at circa £2 million per year.

Councillor Carrigan praised the increase in social value delivery (from 30% to 37%) but expressed concern about the children's services overspend, particularly the cost of two children at £20,000 per week. She inquired about the progress on opening the council's own children's services to bring costs down. It was explained that this was ongoing work, involving identifying suitable properties and aligning planets, and was a long-term piece of work.

Councillor Wright revisited his question about the GM Good Employment Charter, noting the target was forecast to be missed. Councillor Julian acknowledged the difficulty businesses faced, particularly in hospitality, due to economic pressures and the National Insurance Contributions hike.

Councillor Carole McCann asked about the drop in reserve funds by £7 million, which was explained as the redistribution of school balances back to schools.

Councillor Dena Ryness raised concerns about the escalating cost of SEN transport, noting the increase in pupils and costs. It was agreed that a split or index showing inflationary pressures could be presented in the future.

Councillor Wynne also inquired about the impact of Stockroom on library use and its success. It was reported that Stockroom had passed the half-million visitor mark and that the town centre footfall was increasing due to various cultural activities. Councillor Wynne suggested exploring whether Stockroom was attracting people to the library service that Central Library hadn't previously.

Councillor Wynne also raised concerns about bin collection failures still increasing despite falling complaints. It was acknowledged that this detail would need to be reported back on. He also inquired about the offset of costs from the recycling rate fall due to reduced garden waste sent for composting, and the amount collected from the green bin permit.

Responding to our Medium Term Financial Plan

Councillor Julian presented the report on responding to the MTFP, highlighting the challenging financial landscape and the significant savings gap. He thanked officers for their swift analysis of the government's policy statement, indicating it was not favourable for Stockport. He stressed the administration's commitment to mitigating the impact of savings requirements on staff, residents, and services, while ensuring the council's financial sustainability.

Councillor Carrigan, as Leader of the Labour Group, echoed the sentiment that the government was not providing enough funding for Stockport Council and pledged to lobby government. However, she also acknowledged the need to do more with existing resources and asked for more detail on proposals such as maximising digital technology and automation. Councillor Julian explained that the level of detail was high-level due to the funnel process but assured that more detail would emerge.

Councillor McCann suggested exploring income generation in other areas, such as taxi licensing and planning application fees, and also proposed emailing council tax bills instead of posting them. Councillor Julian confirmed that these areas were being looked at and that digital preferences were being encouraged.

Councillor Wynne raised concerns about the timing of the Treasury Management Report, suggesting it be moved to January for clearer figures. He also noted the negative economic indicators in the report and asked what would need to change to improve the position. Councillor Julian explained the report's timing was linked to SIPFA requirements for a mid-year review. He also thanked Richard Basin from MUFG for training on treasury management. Jonathan Davies elaborated on the impact of market reactions to the Chancellor's announcements, particularly regarding borrowing costs.

Councillor Neill questioned the concept of floors and ceilings in fairer funding formulae to prevent councils from being worse off. Councillor Julian explained that the recovery grant included a catch-up mechanism for some authorities, but Stockport and Trafford were not in this bracket and therefore lacked this protection.

Councillor Wynne also raised the issue of the tourism tax announced that evening, urging for Stockport to receive its fair share, especially given the adverse impact of not receiving a recovery grant.

Councillor Neill inquired about the annual increase needed to maintain services as they stand, which was estimated to be between £15-£20 million per year, not accounting for increased demand.

Treasury Management Strategy and Annual Investment Strategy Mid-Year Review 2025/26 and Consultation Report on 2026/27 Treasury Strategy

Councillor Julian presented the mid-year review of the Treasury Management Strategy and Annual Investment Strategy. He noted that the current strategy remained relevant and effective, with revisions to interest rate forecasts due to the economic situation. The report detailed economic updates, interest rate forecasts, and the council's capital expenditure prudential indicators. It was noted that the PWLB rates had remained volatile, and the council was exploring options to manage borrowing costs, including potentially longer-term borrowing from the PWLB due to shortages in the local-to-local market. The report also discussed the challenges of implementing an ESG investment policy due to conflicts with primary treasury management principles, legal complexities, and market immaturity. The strategy for 2026/27 would largely continue the approach for 2025/26, focusing on a balanced borrowing strategy and prioritising money market funds for liquidity.

Business Rates and Council Tax Discounts Annual Review

Andrea Griffiths presented the annual review of business rates and council tax reliefs and discounts. Proposals were made to retain discretionary reliefs for business rates for 2026-27, with Large Investors now being considered under Exceptional Circumstances. An amendment to the policy was proposed to ensure discretionary support does not offset national policy changes. The council's existing empty property discount and premium scheme for 2026-27 was proposed to be continued, with exceptions limited to statutory requirements. The Council Tax Empty Homes Policy was proposed for approval, and the Council Tax Support scheme for working-age residents would be maintained. The Council Tax discretionary fund for 2026-27 was proposed to be set at £0.1m, capped at £0.15m, with delegation to the Director of Finance to review and adjust. Delegation was also proposed to the Director of Finance to consider subsequent government announcements impacting business rates and council tax reductions for 2026-27.

Key proposals included:

• Retaining discretionary reliefs for business rates for 2026-27, with Large Investors now considered under Exceptional Circumstances.
• Amending the Business Rates Discretionary Relief Policy to ensure discretionary support does not offset national policy changes.
• Continuing the existing empty property discount and premium scheme for 2026-27.
• Limiting exceptions to long-term empty property and second home premiums to statutory requirements.
• Approving the Council Tax Empty Homes Policy.
• Continuing the Council Tax liability reduction to zero for care leavers up to age 25 for 2026-27.
• Maintaining Stockport's Council Tax Support scheme for 2026-27.
• Setting the Council Tax discretionary fund at £0.1m for 2026-27, capped at £0.15m, with delegation to the Director of Finance to review and adjust.
• Delegating authority to the Director of Finance to consider government announcements impacting business rates and council tax reductions for 2026-27 and make necessary changes.

Scrutiny Work Programme

Jacqueline Kramer presented the scrutiny work programme. Several items were noted for future meetings, including the Bus Franchising: Annual Transport for Greater Manchester (TfGM) Review for March 2026, and a report on the Community Empowerment and Inclusion Bill. Other items to be programmed included EHCP resourcing, staff wellbeing, a strategic review of Stockport Homes, and a report on the Employment and Trade Union Rights (Dismissal and Reengagement) Bill.

The committee agreed to move on from the reports, with the next meeting scheduled for 27 January 2026.