The Chair welcomed everyone to the meeting as well as those watching the webcast.

There were no apologies for absence.

Members are asked to consider whether they have any disclosable pecuniary interests and/or any other relevant interest in connection with any item(s) on this agenda and, if so, to declare them and state the nature of the interest.

The following Members declared a registerable interest as Members of Trade Unions.

To approve the accuracy of the minutes of the meeting held on 15 January 2025

Resolved – That the minutes of the meeting held on 15 January be approved as a correct record.

Notice of question to be given in writing or by email by Friday 14 February 2025 to the Council’s Monitoring Officer (via the online form here: Public Question Form) and to be dealt with in accordance with Standing Order 10.

Please telephone the Committee Services Officer if you have not received an acknowledgement of your question by the deadline for submission.

For more information on how your personal information will be used, please see this link: Document Data Protection Protocol

The Chair advised three public questions had been submitted in advance of the meeting. 1 question, relating to housing and regeneration had been referred to the Economy, Regeneration and Housing Committee on the grounds it related to matters within that committee’s Terms of Reference. The Chair reiterated the Council’s commitment to its Brownfield only policy which was unchanged by the Council’s financial situation.

The Chair then invited Vicky Forfar on behalf of Together All Are Able to ask her question.

Ms Forfar noted that at Policy and Resources Committee on 15th February 2023 the then chairperson said future budget processes would be coproduced with Together All Are Able and queried why that had not happened so far.

The Chair responded to state that the budget processes referred to in 2023 were specifically based around resident budget consultations, those being consultations where a budget proposal may result in a service change that could impact on residents. Whilst there was no such consultation for the previous budget savings in 2024/25, for any budget savings for 2025/26 which may require this type of consultation to take place, the Council is committed to ensuring that all accessibility needs are addressed.

Ms Forfar was informed that the Committee was to consider a new consultation policy in March 2025, which included details of reasonable adjustments and when planningand developing consultations that may result in a service change, Directors will consider what level of accessibility is legally required and appropriate. 

The Chair then invited Andrew Hobson to ask his question.

Mr Hobson noted budget overspends for 23/24 and 24/25 and queried if the 25/26 budget was overspent it was likely that the council would need to borrow more money to add to the outstanding loans to be paid for by council taxpayers.

Mr Hobson asked if anything had changed in the way officers were to forecast their spending to reduce the risk of overspend in the 25/26 budget.

The Chair responded to state that the overall Council budget was balanced in both 22/23 and 23/24, and the Adults budget was underspent in 22/23.

There were many factors affecting the Council’s budget over the course of a year, many of which are uncontrollable and cannot be predicted.  It is for this reason that the Council needed to hold sufficient reserves to manage these risks and issues.

Forecasting of pressures in both Adults and Children’s services was undertaken using the best available data at the time.  This included national data sets around adult population and needs forecasts.  The growth in demand for adult services had changed significantly post Covid, changing the long-term trends, at least temporarily. Forecasting this growth and meeting the costs of the increased demand was presenting a significant challenge for Council’s across the Country. 

A spike in activity for both Children’s and Adults occurred in the final quarter of the 2023/24 budget and had a significant impact in the current year.  The significant inflationary growth in the cost of Children’s care placements had also impacted.  ...  view the full minutes text for item 88.

Notice of representations to be given in writing by 12 noon, Friday 14 February 2025 to the Council’s Monitoring Officer.

To register your intention to give a statement please do so via this link: Public Statement Notification, and this will be dealt with in accordance with Standing Order 11.1.

Petitions may be presented to the Committee if provided to Democratic and Member Services no later than 3 working days before the meeting, at the discretion of the Chair. The person presenting the petition will be allowed to address the meeting briefly (not exceeding three minutes) to outline the aims of the petition. The Chair will refer the matter to another appropriate body of the Council within whose terms of reference it falls without discussion, unless a relevant item appears elsewhere on the Agenda. If a petition contains more than 5,000 signatures, it will be debated at a subsequent meeting of Council for up to 15 minutes, at the discretion of the Mayor. Please give notice of petitions to committeeservices@wirral.gov.uk in advance of the meeting.

The Chair invited Paul Harris to make a statement in relation to agenda item 10.

Mr Harris presented a statement regarding the Council’s financial position and government borrowing.

Questions by Members to dealt with in accordance with Standing Orders 12.3 to 12.8.

The Chair then advised Members that one Member question has been submitted under standing order 12 from Councillor Phil Gilchrist.

Councillor Gilchrist asked a question about the budget and proposed car parking charges in Bromborough and Eastham, stating concerns about the potentially damaging impact on shops and business due to the competition from the retail park. Councillor Gilchrist asked if the Chair was content that that the expected income of under £20,000 from both sites could be justified and was it really necessary.

The Chair responded to state that the purpose of the Parking Strategy, which was agreed by all parties in December 2023, is to help to manage the expeditious, convenient and safe movement of vehicular and other traffic (including pedestrians). Isolating one area of the Borough and looking at the potential income it may generate is disingenuous, as it would undermine the agreed strategy.  An argument could be made for each individual area, street, or car park, that the income generated is not sufficient to justify inclusion.  However, members are expected to consider the implications for the Borough as a whole, taking account of the overall financial position of the Council and the policies and strategies that have been democratically agreed. 

A report of the Director of Finance set out the budget for the forthcoming financial year 2025/26.

The report was based on the usual work and analysis undertaken by the Section 151 Officer and finance team.

The draft budget was proposed for approval by the Policy and Resources Committee and onward recommendation to Council on 3 March 2025.

All Members of the Council need to agree a budget to fulfil their legal obligation to set a balanced and sustainable budget for 2025/26. The draft budget was offered for consideration accordingly. The report presented the following financial aspects:

• details of the annual budget for 2025/26

• the key elements contributing towards the preparation of the Budget.

• recommendations on the budget and council tax

• the Medium-Term Financial Strategy (MTFS), which incorporates the Medium-Term Financial Plan (MTFP) covering the period from 2025/26 to 2029/30.

The report contained several appendices, some that were required to be published as part of the statutory annual budget process and others that provided the Committee with relevant information relating to short and medium-term budget planning, inclusive of consultation aspects and financial assumptions. These assumptions would change and would be reported through the Council’s governance process for budget monitoring within the Committee system.

The 2025/26 budget had been compiled using the figures in the Final Local Government Finance Settlement for 2025/26, which was laid before the House of Commons and approved on 5 February 2025.

The budget proposals, which had been produced with the engagement of Finance Working Group and the Policy and Service Committees during the last year, and the associated recommendations laid out in the report were a key step in achieving the Council’s commitment to produce a stable, prudent and sustainable financial basis to operate from. The proposals also recognised the finite resources available and prioritising them for the best outcomes for Wirral, with the ongoing aim of delivering better services.

The report was necessarily extensive, covering complex information on a number of areas including:

• The Section 151 officer’s report on the robustness of estimates for budget calculations

• The national context and local government funding The approach to formulating the Budget.

• The Budget Proposals

• The Medium-Term Financial Strategy (MTFS) with Medium-Term Financial Plan (MTFP)

• Council Tax

• Business Rates

• Schools’ Budgets

• Levies

• The Council’s Financial Reserves

Members were informed that the Government was undertaking a review of funding for local authorities and had promised a three -year settlement later this year, which will provide a clearer picture of the future funding.

This current forecast and the budget for 2025 -26 illustrated that the Council continued to face a challenging position in relation to the demand pressures set against the available funding.

The terms of the financial settlement for this year were received in December 2024 and had been approximately £11 million better than had been assumed within the budget projections pre-settlement.

The proposed budget took account of all the current known demographic and service pressures  ...  view the full minutes text for item 91.

The Director of Finance provided Members with the proposed Capital Programme 2025-32 for consideration and referral to Council for approval. The report included information regarding the revenue implications of this Programme and an update on the latest forecast for capital receipts. The 2025-32 Capital Programme represented a combination of schemes originally approved as part of the 2024-29 Programme, updated through the Capital Monitoring reports in 2024-25 and new bids for inclusion as detailed in this report. Members discussed the re-development of Mosslands School and proposals for the site, as well as capital schemes for Community Asset Transfer, disposals, asset rationalisation and Library Works. Also considered was the proposed car parking capital equipment expenditure of £1m for 2025/26. After a debate, Councillor Simon Mountney proposed the following amendment to recommendation 2, seconded by Councillor Jeff Green.

‘’The Capital Programme 2025-32 as detailed in Appendix 3 to this report, deleting reference to the car parking equipment proposing capital expenditure of £1m in 2025/26 as set out on page 172 of this report’’.

The amendment was then put to the vote and was lost (05:10)

The original motion was therefore put to the vote, and it was – Resolved (15:00)- That Council be recommended to approve,

1 The new bids as detailed in Appendix 2 to this report requiring £18.8m of funding for inclusion in the Capital Programme; and

2 The Capital Programme 2025-32 as detailed in Appendix 3 to this report.

The Head of Finance for Corporate Services presented the report of the Director of Finance which outlined the Council’s treasury management activity is underpinned by the Chartered Institute of Public Finance and Accountancy (CIPFA) 2021 Code of Practice on Treasury Management (“the Code”), in which there is the requirement for Council to approve an annual Capital Strategy. The report fulfilled the Council’s legal obligation under the Local Government Act 2003 to have regard to the CIPFA Code.

Members discussed monitoring of capital receipts and requested more detailed reporting on the repayment of debt.

Resolved - that Council be recommended to approve,

1. the Capital Strategy for 2025/26;

2. the associated Prudential Indicators to be adopted, contained within this report; and the Council’s Minimum Revenue Provision policy as set out in Appendix 1 of this report;

3. the Council’s Minimum Revenue Provision policy as set out in Appendix 1 of this report.

The Head of Finance for Corporate Services introduced the report of the Director of Finance which informed Members of the progress of the Capital Programme 2024/25 at the end of December 2024 (Quarter 3).

The report requested that committee recommended to Council the revised 2024/25 Capital Programme of £93.953m which took account of re-profiling, virements, additional funding requirements and grant variations identified since the Capital Programme was formally agreed on 26th February 2024.

Members queried the amendment to the Minimum Revenue Provision (MRP) asking why it required change and what the practical effect of that change would be and also sought assurances that it would not lead to an increase in monies paid. Officers were able to provide Members with this assurance.

Resolved - that Council be recommended to approve

1.  The revised Capital Programme of £93.953m for 2024/25, including the virements of budget referred to in Appendix 3 of this report;

2.  Additional funding for the scheme referred to in section 3.7 in this report; and

3.  The amendment to the Council’s Minimum Revenue Provision policy as set out in 3.9.2 of the report.

A report of the Director of Finance set out the financial monitoring information for the Council as at Quarter 3 (31 December) of 2024/25. The report provided Members with an overview of budget performance, including progress on the delivery of the 2024/25 saving programme and a summary of reserves and balances, to enable the Committee to take ownership of the budgets and provide robust challenge and scrutiny to Officers and where appropriate, Committees on the performance of those budgets.

At the end of Quarter 3, the financial outlook had deteriorated further since quarter 2. Current estimates forecasted an adverse outturn position of £22.590m on Directorate spend. This position was based on activity to date, projected trends in income and expenditure and changes to Council funding.

The Council had faced a severe financial challenge throughout the year to achieve a balanced budget. All possible measures to curtail spending and generate substantial cost savings had been applied. However, the current forecast showed that the Council would not be in a position to provide a balanced budget by financial year-end. Consequently, the Section 151 officer had submitted an application for Exceptional Financial Support (EFS) to the Ministry of Housing, Communities & Local Government (MHCLG).

This was not a key decision and affected all wards.

The report contributed to the Wirral Plan 2023-2027 in supporting the organisation in meeting all Council priorities.

Resolved – That the Policy and Resources Committee:

1.  Notes the Directorate forecast adverse position of £22.590m presented at Quarter 3 and the urgent need to examine all available options to address the position.

2.  Notes that the Director of Finance has made an application to the Ministry of Housing, Communities & Local Government (MHCLG) for Exceptional Financial Support and that the outcome of the application is still awaited.

3.  Notes the progress on delivery of the 2024/25 savings programme at Quarter 3.

4.  Notes the forecast level of reserves and balances at Quarter 3.

5.  Approves the budget virements, as detailed in paragraph 3.62 of the report.

Policy & Resources Committee is requested to consider the following recommendation of the Audit and Risk Management Committee held on 28 January 2025:

That the Policy & Resources Committee is requested to recommend to Council the approval of:

1.  the Treasury Management Strategy for 2025/2026, as set out in Appendix A to this report;

2.  the Treasury Management Policy Statement, as set out in Appendix B to this report;

3.  the Treasury Management Prudential Indicators for 2025/2026, as set out in Appendix C to this report.

Minute Extract and Report are attached.

The Senior Finance Manager introduced the report of the Director of Finance which presented the Treasury Management Strategy for 2025/2026.The strategy outlined the process for the management of the Council’s cash flows, borrowing and investments, and risks associated with those activities.

Members were informed that regarding investment, the Council’s main consideration was security and liquidity of its investments.

Resolved – that Council be recommended to approve,

(1) the Treasury Management Strategy for 2025/2026, as set out in Appendix A to this report;

(2) the Treasury Management Policy Statement, as set out in Appendix B to this report;

(3) the Treasury Management Prudential Indicators for 2025/2026, as set out in Appendix C to this report.

Policy & Resources Committee is requested to consider the following recommendation of the Audit and Risk Management Committee held on 28 January 2025:

That the Policy & Resources Committee is requested to endorse and recommend to Council the approval of the Investment strategy 2025/26 which includes the scope of potential investment in the following activity areas:

(a)  Commercial Property;

(b)  Service Investments: Loans;

(c)  Service Investments: Shares.

Minute Extract and Report are attached.

The Head of Finance for Corporate Services presented the report of the Director of Finance. The report brought forward a recommendation of the Audit and Risk Management Committee, held on 28 January 2025.

The report fulfilled the requirement of the Ministry for Housing, Communities and Local Government (MHCLG) for local authorities to produce a separate investment strategy that covered non-treasury activities. It was reported that the particular investments outlined in this strategy were made by departments with a wider service objective or focus rather than for cash flow maintenance.

Resolved – that Council be recommended to approve the Investment Strategy for 2025/26 which includes the scope of potential investment in the following activity areas:

(a)  Commercial Property;

(b)  Service Investments: Loans;

(c)  Service Investments: Shares.

Policy & Resources Committee is requested to consider the following recommendation of the Audit and Risk Management Committee held on 28 January 2025:

That the Policy & Resources Committee is requested to recommend to Council the approval of the External Audit Annual Report 2023/24 and publication on the Council website.

Update

Since consideration of the report at Audit and Risk Management Committee on 28 January 2025, new information received by the Council has meant that an additional recommendation is required as set out below:

In advance of the Council’s consideration of the Council’s accounts, the Council must receive confirmation from the external auditors that the accounts are unqualified. In the absence of such confirmation, the external auditors annual report will be referred back to Audit and Risk Management Committee.

Minute Extract and Report are attached.

The Director of Finance brought forward a recommendation of the Audit and Risk Management Committee, held on 28 January 2025.

That the Policy & Resources Committee is requested to recommend to Council the approval of the External Audit Annual Report 2023/24 and publication on the Council website.

Since consideration of the report at Audit and Risk Management Committee on 28 January 2025, new information received by the Council had meant an additional recommendation was required, as set out below:

In advance of the Council’s consideration of the Council’s accounts, the Council must receive confirmation from the external auditors that the accounts are unqualified. In the absence of such confirmation, the external auditors annual report will be referred back to Audit and Risk Management Committee.

Members queried how oversight of savings and transformation would be achieved and were informed that a report would be brought to a future meeting in relation to budget recovery.

Resolved – that Council be recommended to approve.

1  the External Audit Annual Report 2023/24 and publication on the Council website.

2  Note that in advance of the Council’s consideration of the Council’s accounts, the Council must receive confirmation from the external auditors that the accounts are unqualified. In the absence of such confirmation, the external auditors annual report will be referred back to Audit and Risk Management Committee.

The Director of Law and Corporate Services presented the report on the assurance process in formulating the draft Council Budget and to recommend to Council a process for adoption at the Budget decision making meeting

Resolved – that it be recommended to Council that for the duration of the Extraordinary meeting of 3rd March 2025 (Budget Council):

(a) the procedure attached as Appendix A be followed in respect of the meeting; and

(b) Council Standing Order 15.4 (timing of speeches) be suspended together with such other standing orders as may conflict with the Budget Council procedure or the Mayor’s administration of the meeting, in such a manner as the Mayor in his or her absolute discretion dictates, to ensure the objective of Council setting a lawful budget and council tax requirement prevails