The Manchester City Council executive approved the consultation on the draft Manchester Local Plan, noted a projected £9.1m overspend, and agreed to withdraw from the Greater Manchester Combined Authority (GMCA) Clean Air Charging Authorities Committee.

Here's a breakdown of the key discussion points:

• Our Manchester Strategy Update
• Revenue Budget Monitoring
• Capital Programme Monitoring
• Revenue Budget Process 2026/27
• GMCA Clean Air Charging Authorities Committee
• Manchester Local Plan - Draft for Consultation

Our Manchester Strategy Update

The executive reviewed progress against the Our Manchester Strategy 2025-35, highlighting several key developments:

• Supporting grassroots music venues: The council has earmarked almost £250,000 to support grassroots music venues in the city. Councillor Bev Craig, Leader of the Council, noted that Manchester attracted 1.3 million music tourists over the summer, boosting the local economy. The Music Venue Trust will administer the scheme.
• New social housing: Councillor Gavin White, Executive Member for Housing and Development, announced that the first of 130 new homes for social rent in Collyhurst are being readied for residents. These homes are part of the wider Victoria North development. Construction has also begun on 505 homes on the former Boddington's Brewery site, with 60% designated as affordable. Additionally, the first This City scheme, Number One Ancoats Green, is nearing completion, providing 129 low-carbon homes.
• Empty Homes Team success: Councillor Joanna Midgley, Deputy Leader (Statutory), reported that the Empty Homes Team brought 295 long-term empty properties back into use between July 2024 and August 2025.
• Town Hall and Albert Square: Councillor Midgley also noted that the Our Town Hall project has reached two milestones: the removal of the temporary roof and the confirmation that Albert Square will be part of the city's Christmas programme for the first time since 2019.
• Parktastic scheme: Councillor Lee-Ann Igbon, Executive Member for Vibrant Neighbourhoods, reported that approximately 18,500 children and young people participated in free activities during the summer holidays through the council's Parktastic scheme.
• Other initiatives: The report also included updates on the Cyan Lines Initiative, a project to link Manchester's parks and outdoor spaces, and Manchester's role as the Guest City in Barcelona's La Mercè festival.

Councillor John Leech, Leader of the Lib Dem Group, welcomed the reopening of Albert Square and the initiative to bring empty homes back into use. He sought clarification on the council's plans for the Dedicated Schools Grant¹ and external placements for children, as well as the use of the Business Rates surplus.

The executive noted the report.

Revenue Budget Monitoring

The executive considered the City Treasurer's report on the council's projected revenue budget for 2025/26. Councillor Rabnawaz Akbar, Executive Member for Finance and Resources, stated that the forecast position was an overspend of £9.1m, which reflected national pressures in social care and the costs of servicing the Dedicated Schools Grant deficit.

Key points from the report:

• Corporate Budgets: Forecasting a £2.3m overspend due to lower interest receivable related to funding the Dedicated Schools Grant (DSG) deficit, which is expected to reach almost £60m.
• Children's Services: Projecting a £7.2m overspend, mainly due to external residential placements for Looked After Children (LAC).
• Adult Social Care: Forecasting an underspend of £0.5m due to increased client contributions and reduced agency costs.
• Neighbourhoods: Projecting an overspend of £1.1m due to shortfalls in advertising income and market site occupancy.
• Savings: The council's approved budget included £28.8m of savings, with £5.9m achieved, £17.6m on track, £2.9m at medium risk, and £2.4m deemed high risk.
• Housing Revenue Account (HRA): The HRA is forecasting an additional £6.3m call on reserves, mainly due to overspending on property repairs and fire risk assessments.
• Business Rates Surplus: The council's share of the 2024/25 surplus was £24.9m, with £9.4m to be held in the Business Rates Reserve to mitigate risks associated with the business rates system reset.
• Council Tax Surplus: The council's share of the 2024/25 surplus totalled £182k.

Councillor Leech sought confirmation on the Dedicated Schools Grant recovery plan, progress in reducing external placements for children, and the inclusion of 'high risk' savings in the projected overspend. He also queried the HRA overspend, the decision to place the Business Rates surplus in a reserve, and the proposed use of £0.5m for a city centre parking review.

The executive then approved the following budget virements²:

• £5.975m from corporate budgets to fund the 2025/26 Employee National Insurance Contribution increase across all directorates.
• £9.330m from corporate budgets for the 2025/26 pay award (3.2%) across all directorates, increasing to £9.910m from 2026/27.
• £3.120m cost of living budgets from Revenues and Benefits to priority initiatives across the council.
• £303k permanent budget uplift in Public Health Grant allocation for supervised toothbrushing.
• £340k from corporate budgets to the Our Manchester Voluntary and Community Sector (OMVCS) Fund.
• £0.609m centralisation of the school leavers programme to HROD&T³.

The executive also approved the use of additional revenue grant funding and reserve funding for various initiatives, including:

• £0.562m Early Years Expansion Grant.
• £0.658m Early Years National Insurance Contributions and teachers' pay grant.

• £120k Capability Fund from TfGM⁴ for the School Streets programme.

• £166k Active Travel revenue funding from TfGM for cycle hangers and public cycle parking.

• Funding from GMCA⁵ for consultancy support for the North Manchester General Hospital Healthy Neighbourhood Delivery Plan, development of the Strangeways and Cambridge Development Strategy, and surveys for the proposed mobility hub within Wythenshawe Civic Centre.

• £173k from GMCA to fund Place Partners Commercial consultancy to help produce a Design Toolkit for new homes in Holt Town.

• £90k from GMCA to fund the production of a movement strategy for the area surrounding the Former Central Retail Park.

• £250k from Homes England to unlock and accelerate residential growth proposals in Holt Town.

• £3.078m Local Growth & Place Flexible Grant from GMCA to create workspace for new businesses and entrepreneurs.

• £460k from the Making Manchester Fairer (MMF) Reserve to support people experiencing multiple disadvantages.

• £78k from the Neighbourhood Investment Fund to fund citywide events/activities.

• £0.5m from the Parking Reserve for a review of the city centre parking zones (CPZ).

• £77k from Graves and Memorials Reserves to undertake essential memorial safety testing.

• £123k in 2025/26, £207k in 2026/27 and £189k in 2027/28 from Housing Revenue Account General Reserve to enable the recruitment of additional posts to the Operational Housing structure.

• £55k in 2025/26, £111k in 2026/27 and £55k in 2027/28 from the Investment / Transition Reserves to enhance capacity of the Digital Strategy Team.

• £0.550m from the Making Manchester Fairer Reserve Early Help to support the Adults Kickstarter Program.

• £72k from Collection Fund Initiatives Reserve for the Council Tax to enable automation of Single Person discount review.

• £30k in 2025/26 and £59k in 2026/27 from Transformation Fund Reserve to fund a Senior Data Officer post to lead on adult social care data.

• £81k in 2025/26 and £161k in 2026/27 from Transformation Fund Reserve to ensure there was sufficient capacity to manage the increased workload from clients with social care needs.

• £242k from the Business Rates Reserve to support eight key cultural organisations in the city.

• £245k one off funding from the Investment Zone Reserve to support grass roots music venues across the city.

The executive approved the report and its recommendations.

Capital Programme Monitoring

The executive reviewed the City Treasurer's report on the progress of the 2025/26 capital programme. Councillor Akbar noted that the latest forecast of expenditure for the 2025/26 financial year was £378.0m, compared to the current approved budget of £441.7m. Spend as of 31 July 2025, was £56.0m.

The main variances related to the Our Town Hall refurbishment, Hammerstone Road depot, Manchester Art Gallery Phase 2, and the Housing Affordability Fund, mostly due to timing differences requiring budgets to be re-profiled between financial years.

The report also detailed schemes which had come forward for approval:

• Public Sector Housing (HRA) – West Gorton Youth Hub: A capital budget increase of £1.818m in 2025/26 and £1.162m in 2026/27 was requested, funded by borrowing on an invest to save basis to deliver a scheme to redevelop the property into new temporary accommodation sites for homeless adults as an alternative to placing into B&B accommodation.
• Growth and Development Housing Infrastructure Fund Additional Funding: A capital budget increase of £6.93m in 2025/26 was requested, funded by External Contribution to deliver public realm and infrastructure improvements in the Redbank and New Town areas of Victoria North using Brownfield Land Funding as part of the ongoing Housing Infrastructure Fund programme.
• Neighbourhoods Youth Investment Fund: A capital budget increase of £5.298m in 2025/26 was requested, funded by Government Grant to provide youth facilities at six sites in Manchester, levelling up the out-of-school youth sector in order to drive positive outcomes for young people.
• Neighbourhoods Wythenshawe Active Travel (MATSIP): A capital budget increase of £1.048m in 2025/26 and £5.942m in 2026/27 was requested, funded by External Contribution to implement a programme of work identified as quick wins in terms of delivering the Active Travel Network in Wythenshawe aligned with the aspirations around Active Travel in the Manchester Active Travel Strategy and Infrastructure Plan (MATSIP).
• Neighbourhoods Wilmslow Road CYCLOPS Junction: A capital budget increase of £0.202m in 2025/26, £0.941m in 2026/27, £0.665m in 2027/28 and £0.347m in 2028/29 was requested, funded by External Contribution to deliver interventions at the crossing of Wilmslow Road at its junction with Ladybarn Road.
• Private Sector Housing Disabled Facilities Grant: A capital budget increase of £1.676m in 2025/26 was requested, funded by External Contribution and Government Grant for the provision of home adaptations to help eligible older and disabled people to live as independently and safely as possible in their homes.

Councillor Leech sought clarification on the generation of additional capital receipts, the planning permission status for the West Gorton Youth Hub, and the cost of the CYCLOPS junction on Wilmslow Road.

The executive made the following decisions:

• Recommended that the council approve the budget change to the council's capital programme for the Public Sector Housing (HRA) West Gorton Youth Hub.
• Approved the budget changes to the council's capital programme for the Growth and Development Housing Infrastructure Fund Additional Funding, Neighbourhoods Youth Investment Fund, Neighbourhoods Wythenshawe Active Travel (MATSIP), Neighbourhoods Wilmslow Road Cyclops Junction, and Private Sector Housing Disabled Facilities Grant.

Revenue Budget Process 2026/27

The executive considered the City Treasurer's report on the revenue budget process for 2026/27. Councillor Akbar advised that the council needed to continue taking action to ensure financial stability, given the scale of funding pressures and future resource constraints.

Key points from the report:

• The 2025/26 settlement was set for a single year, with the government committing to a full formula review starting from 2026/27.

• The council's February 2025 MTFP⁶ identified considerable uncertainty around government funding for 2026/27, while costs were expected to continue rising.

• Officers estimated the remaining funding gap by 2027/28 to be £47m, increasing to £68m by 2028/29.

• The Fair Funding Review should result in additional resources, but this is offset by increased pressures within Children's Social Care.

The executive agreed on the proposed approach to updating the Medium Term Financial Plan.

GMCA Clean Air Charging Authorities Committee

The executive considered a report on the council's proposed withdrawal from the GMCA Clean Air Charging Authorities Committee. Councillor Craig explained that the committee was no longer needed following the agreement with the government on a non-charging investment-led plan.

The executive agreed to withdraw from the committee, including the revocation of executive delegations and termination of membership.

Manchester Local Plan - Draft for Consultation

The executive considered a report on the draft Manchester Local Plan. Councillor White explained that the Local Plan is a strategy to guide land use and physical change, setting out a vision and framework for future growth and development.

Key aspects of the draft Local Plan:

• Spatial Principles and Development Principles: Overarching policies covering spatial and development principles.
• Strategic Growth Locations: Policies covering key sites and locations, including Manchester City Centre, Victoria North, Holt Town, Sportcity, Central Park, Strangeways, North Manchester General Hospital, Wythenshawe Centre, Medipark and Wythenshawe Hospital, and Manchester Airport.
• Thematic Sections: Policies covering housing, economy, zero carbon, environmental matters, transport, design and heritage, development management, and developer contributions.

The executive approved the consultation on the draft Manchester Local Plan and delegated authority to the Director of Planning, Licensing and Building Control to make minor amendments prior to the consultation.