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The Cabinet considered a report of the Director of Finance which informed members that in April 2023 the Authority had adopted the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice (the CIPFA Code), which required the Council to approve, as a minimum, treasury management semi-annual and annual outturn reports.

The submitted report therefore advised the Cabinet ofthe performanceof theTreasury Managementfunction of the Council for the first half of 2024/25 and provided a comparison of performanceagainst the 2024/25 Treasury Management Strategy and the Treasury Management PrudentialIndicators.

The report setout thekey TreasuryManagement issuesfor Members’information andreview and outlined: an economic update for the first half of 2024/25 (External Context); Net Borrowing and Investments (Local Context); A review and updates of the Council’s current treasury management position; Council Borrowing; Treasury Investment Activity; Treasury Performance for the first half of the year; Compliance; and Treasury Management Prudential Indicators.

Options/alternatives considered:

In order that the Council complied with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management, the Cabinet had no option other than to consider and approve the current Treasury Management position. Therefore, no options/alternatives could be presented in respect of the factual information contained in this report.  However, in respect of the potential changes in policy outlined in this report, the options available to the Cabinet were:

Option 1 – to accept the recommendations of the Council’s Treasury Advisers and change the MRP policy as outlined in section 2.7 & Appendix 4.

Option 2 - to approve the use of up to £2.000m of capital receipts to fund the costs of voluntary redundancy payments.

Option 3 - to approve both the change in MRP policy and the use of flexible capital receipts to fund the costs of voluntary redundancy payments.

Option 4 – to approve neither the change in MRP policy nor the use of capital receipts.

The preferred option was Option 3.

Resolved:

That the Cabinet:

1.    Endorses the Treasury Management Half Year Review report.

2.    Accepts the proposed revisions to the Maturity Structure of Borrowing outlined in section 2.10.5 of the submitted report.

3.    Accepts the proposed revision to the Flexible Use of Capital Receipts outlined in section 2.7 and Appendix 2, of the submitted report.

4.    Accepts the proposed revision to the Minimum Revenue Provision Policy outlined in section 2.8 and Appendix 4, of the submitted report.

5.    Commends the report to Council.

The Cabinet considered a report of the Director of Public Health which provided members with an update on the Public Health Investment Review and present the resulting proposals for consideration.

The report supplied an update on the Public Health Investment Review and associated proposals for in-year and future changes to investment in council services from the Public Health budget.  This included those services where public health investment was used by other council areas to commission external providers.

Options/Alternatives Considered:

The options were detailed in the confidential report.

Resolved:

That the Cabinet will consider the confidential recommendations in the report at agenda item 17.

The Cabinet considered a report of the Director of Economy which informed the Cabinet of the current financial and operating position of Oldham Education Catering Service (OECS) who provided catering for 46 schools in Oldham.  There were several issues of concern for the delivery of the service including increasing costs of quality local food supplies, increasing costs for staff and a continued decline in the number of schools contracting with the Council.  With the continued roll out of academisation, it was anticipated that the number of schools contracting with the Council will continue to reduce over the coming years.

In response to the challenges faced by OECS, the Association for Public Service Excellence, (APSE), were commissioned to undertake an evidence based independent review. The report highlighted several options which the Cabinet were requested to consider. 

OECS was the in-house school catering function that provides school meals:  this is not a statutory function of the Council and schools have been opting to use various alternative services for several years now.   

OECS provides approximately 7,700 meals per day and employs 199 catering staff. There are 87 Primary School in the Oldham Borough, however OECS only provides catering services for 46 of those: the remaining schools which are not supported by OECS use established providers within the school meals market or operate a successful in-house catering service.  It is anticipated that the number of schools contracting with the Council will reduce in the coming years due to private companies offering schools a competitively priced service, and because of new business decisions as schools were ‘academised’.

The independent APSE review had identified a number of service areas which required substantial investment whilst recognising this could take a considerable period of time to complete.  However, even with this investment, the report cautioned that whilst this provides an opportunity for the service to balance costs versus budget, this would not be guaranteed.  The report therefore concluded that the current delivery model was not sustainable and that transitioning the service back to schools would provide a number of benefits including local decision making for schools, (for example menu choices), and increased integration of the catering function with other school services, whilst protecting local jobs and allowing a continuity of service within schools.

Options/Alternatives Considered:

The options were detailed in the confidential report.

Resolved:

That the Cabinet will consider the confidential recommendations in the report at agenda item 16.

The Cabinet considered a joint report of the Director of Public Health and the Director of Education, Skills and Early Years which advised members that approval had been granted, by the Cabinet, in June 2024, to enter into a period of formal workforce engagement and consultation regarding the Right Start and School Nursing Service, which is currently delivered under a Section 75 Partnership Agreement between Oldham Council and Northern Care Alliance (NCA). The submitted report to this meeting sought approval to commence implementation of the service redesign of the Right Start and School Nursing service to create a new Integrated Children and Families Service.  

Staff consultation on these proposals had taken place between 7^th August 2024 and 21^st September 2024.  Several changes to the proposal were made as a result. The report therefore provided further details of the engagement and consultation which had taken place.

This report explains how the council will introduce a new operating model for the Integrated Children and Families Service. The new model replaces the current Right Start and School Nursing Service.

Options/Alternatives Considered:

The options were detailed in the confidential report.

Resolved:

That the Cabinet will consider the confidential recommendations in the report at agenda item 15.

The Cabinet considered a report of the deputy Chief Executive (Place) which sought approval to include Oldham Mumps, Princes Gate into the Town Centre Development Partnership with MUSE to deliver new homes.

The submitted report set out the rationale for the Council to include the Princes Gate site into the Master Development Agreement, that has been completed with the Private Sector Partner - MUSE. The inclusion of the Princes Gate site will deliver around 295 new homes to push forward with the delivery of the town centre regeneration masterplan supported by Brownfield Housing Land Grant secured on the site to help delivery.

Options/Alternatives Considered:

The options were detailed in the confidential report.

Resolved:

That the Cabinet will consider the confidential recommendations in the report at agenda item 14.

The Cabinet considered a report of the Deputy Chief Executive (Place) which asked Members to consider endorsing the amended Oldham Town Centre Development Framework, following a public engagement exercise.

The Cabinet was informed that as part of the Council’s Creating a Better Place programme to transform Oldham Town Centre, including the delivery of 2,000 new homes, Cabinet had approved the appointment of Muse Place Ltd as our long-term Strategic Delivery Partner in June 2023, following an extensive OJEU compliant competitive procurement exercise.

Since that time, a Master Development Agreement (MDA) between the Council and Muse was entered into in September 2023 and a Detailed Business Plan for the partnership was approved by the Council in March 2024.

A key element of the Detailed Business Plan covered how the core Town Centre housing sites, including the Civic Centre, Former Leisure Centre and Former Magistrates Court will be taken forward. The first stage of this was the production of a draft Town Centre Development Framework, which would help to guide future planning and development proposals in the Town Centre.

A draft Town Centre Development Framework was consulted upon from 24^th July until 11^th September 2024 (seven weeks in total). The draft Development Framework itself and the full range of consultation material was available to be viewed on the Council’s website at: https://oldhamtownliving.co.uk.

The Town Centre Development Framework document had been refined, taking onboard the feedback received through the consultation, and this report was seeking the endorsement of that final Development Framework by the Cabinet.

Options/Alternatives considered:

a.    Option 1 – to endorse the finalised Oldham Town Centre Development Framework.

b.    Option 2 – to not endorse the finalised Oldham Town Centre Development Framework

The Development Framework provided a clear overview of what the council and partners have been doing, and continue to do, in and around the town centre, and how the proposed developments in the Oldham Town Living partnership with Muse will fit in this context and enhance the town centre. Having gone through a public consultation, in which there was significant engagement, and taken onboard the feedback from this engagement, the finalised Development Framework is now suitable for endorsement and use by the council and partners going forward.  Therefore, option 1 is recommended, and there are no disadvantages to this option.

Not endorsing the Development Framework would bring no advantages, as it leaves the Development Framework with no true status and proposals for the Town Centre with no overarching framework to work to (or for the council to hold partners to).  As such, option 2 is not recommended.

Option 1 is therefore the preferred option.

Resolved:

That the Cabinet endorses the Oldham Town Centre Development Framework.

The Cabinet considered a report of the Director of Finance that provided Members with an update, as of 30^th September 2024 (Month 6), of the Council’s 2024/25 forecast revenue budget position (detailed at Annex 1) and the financial position of the capital programme together with the revised capital programme 2024/25 to 2028/29 (detailed at Annex 2).

The Cabinet were advised that the forecast overspend position based on the Month 6 profiled budget was £9.956m, which if not addressed, would result in a year-end overspend of £19.912m (£21.065m at Month 4).

This financial monitoring report follows on from the position reported at Month 4 and should continue to be used as a warning of the potential year- end position if no further action is taken to reduce net expenditure. The management actions already implemented for 2024/25 have been factored into the Month 6 forecasts and this has resulted in a reduction in the position previously reported.

Work was ongoing across the organisation to address this position and it was anticipated that by the year end, the current outturn deficit position should reduce even further. An update on the Month 6 2024/25 position was detailed within Annex 1.

In terms of the Capital Position, the report outlined the most up to date capital spending position for 2024/25 to 2028/29 for approved schemes. The revised capital programme budget for 2024/25 is £99.505m at the close of Quarter 2 (£103.935m at Month 4), a net reduction of £4.430m. the actual expenditure to 30^th September 2024 was £31.222m (31.38% of the forecast outturn).

Resolved that the Cabinet:

1.    Notes the report.

2.    Approves the forecast profiled budget, being an adverse position of £9.956m at Quarter 2 and the forecast potential adverse position by year end of £19.912m, with mitigations in place to reduce expenditure.

3.    Approves the revised reserves policy for 2024/25, as detailed at Appendix 2 of Annex 1.

4.    Approves the revised capital programme for 2024/25 including the proposed virements and the forecast for the financial years to 2028/29 as at Quarter 2, as outlined in Annex 2.