Economy & Regeneration

Date June 2018 Version 1.0 Approved by KB

ECONOMY & REGENERATION PORTFOLIO HOLDER’S INTRODUCTION This is my third annual Portfolio Agreement, which summarises the Economy & Regeneration Portfolio’s work programme and its intended outcomes for the next 12 months. The 2017/18 Annual Report was published last month and this Agreement sets out how we will build on the work described in that report to make our Borough an even better place to live, visit, work and do business.

We are working hard to ensure that the Borough’s economy continues to grow, but we are now placing particular emphasis on ensuring this growth is inclusive growth – growth that benefits all sections of our community. Work and skills issues are a key part of this work and earlier this year we held a Work & Skills Commission involving a series of workshops with employers, workers & jobseekers (including young people) and educators & trainers. These aimed to identify the priorities that we need to focus on to ensure our residents have access to good jobs and our workforce has the skills our employers need. Findings from the Commission will inform a work programme for a new Work & Skills Board and I will report on the Board's work in my regular performance reports. Its work will link with and complement work underway in the Reform & Governance portfolio that is investigating factors that seem to trap some of our residents in poverty.

Finding and sustaining a good job can be the key to escaping poverty, but ill health can be a barrier to employment. I was delighted then that the Greater Manchester Working Well programme was launched in Stockport earlier this year. Over the next 3½ years, we expect the programme to help around 1,500 Stockport people back into employment.

In my regular performance reports, I have highlighted success achieved with high-profile new developments, such as Redrock, Aurora and Stockport Exchange. So far, all are exceeding our expectations. During 2018/19, we expect the units at Redrock and Aurora to be fully, or approaching fully, let. Planning permission for the Phase 3 office building at Stockport Exchange has been granted. We expect work to begin this autumn and units to be available for let by 2020. Demolition of the cinema is almost complete and a temporary car park will be located on that site.

Work to unlock the huge potential of the Underbanks and Marketplace areas of Stockport Town Centre will continue. Our plans to widen the food, drink and entertainment offer in the Marketplace will come to fruition during the year, with the reopening of the Produce Hall (with new operators), continued investment in the Covered Market and a regular programme of entertainment and events, which we are confident will attract Borough residents, as well as people from further afield.

Exploratory work is underway with Stockport-based arts organisations to see how we can work better together to develop the Borough’s cultural offer in a more cohesive way to encourage inclusive and wide-ranging participation and collaboration that contributes positively to our emerging visitor economy.

We continue to work with Transport for Greater Manchester (TfGM) and other partners to improve local transport links. The A6 to Manchester Airport Relief Road is due to open in late summer 2018. Work continues on the Town Centre Access Plan and all phases of work have now been approved. This will improve accessibility in and around Stockport Town Centre and has a particular focus on easing congestion for buses and general road traffic as well as on encouraging walking and cycling.

Cllr Kate Butler, Portfolio Holder for Economy and Regeneration

THE COUNCIL’S PRIORITIES FOR STOCKPORT

The Council Plan and Medium Term Financial Plan have set out some significant pressures and challenges and this Portfolio Agreement reflects these.

The 2018/19 Council Plan, adopted by the Council in February 2018, aligns with the longer- term vision and shared outcomes set out in the 2015-20 Borough Plan. It incorporates the key principles identified by Cabinet, underpinned by an inclusive vision for growth and reform. Key achievements for 2017/18 and priorities for 2018/19 are highlighted and these are then aligned with the five shared outcomes from the Borough Plan:

 People are able to make informed choices and look after themselves.  People who need support get it.  Stockport benefits from a thriving economy.  Stockport is a place people want to live.  Communities in Stockport are safe and resilient.

The Council Plan sets out our commitment to transforming Stockport’s local economy, protecting vital local services and ensuring that every resident has the opportunities they deserve. We will continue to listen and respond to local residents, elected members and other stakeholders when developing our plans. This will be with a clear focus on investing in a sustainable future for Stockport and its people.

Whilst the Plan sets out some significant pressures and challenges, we will continue to use our influence to make the most of the major opportunities presented by the devolution of powers and responsibilities to Greater Manchester, and the integration of health and social care services. This is why we have incorporated priorities set out within the Greater Manchester Strategy ‘Our People, Our Place’ into the Plan. We will continue to work closely with the Greater Manchester Mayor to bring improvements to public transport and develop long-term plans to build the homes we need in Stockport.

The last 12 months have seen exciting developments taking place in and around Stockport Town Centre. Ensuring that all residents can benefit from Stockport’s economic growth, and providing job opportunities and better access to employment for local people is central to our vision and plans to tackle poverty and inequality. For these reasons, we are placing Inclusive Growth at the heart of the Council Plan and our shared plans with local businesses and partners.

We have continued to maintain, reform and improve services in the face of a decade of austerity, making our funding stretch as far as it can. We must be under no illusions - this represents the biggest challenge in the history of Stockport Council. This is why work is continuing to prepare the Council to be financially self-reliant – we are taking hard decisions now to create the conditions that sustain high-quality public services and strong civic leadership in future years.

1. ECONOMY AND REGENERATION PORTFOLIO OVERVIEW

This Portfolio Agreement sets out the key responsibilities in relation to services and budgets. It also details the range of activities, projects and programmes that will support delivery of the priority outcomes, risks to delivery and the measures that will reflect progress over the year.

The Economy and Regeneration Portfolio helps to ensure that Stockport residents benefit from inclusive economic growth and regeneration opportunities in the Borough by:

 Maximising employment opportunities for residents.  Leading and encouraging the delivery of regeneration schemes.  Encouraging business investment in Stockport.  Providing an effective and efficient planning service in line with local policy and national legislation.  Ensuring that Stockport has a local transport network that is responsive to local needs and opportunities.  Working closely with the Leader of the Council and the Portfolio Holder for Reform & Governance to bring forward and finance sustainable development.  Maximising the cultural opportunities available to Stockport’s residents and communities and using Stockport’s unique and distinct cultural offer to attract visitors into the area.

Contextual data

Population

 Stockport’s population has been growing at a rate of about 1,000 people a year.  Stockport has a higher proportion of children and older people relative to regional and national averages.  The working age population in 2016 (16-64) was 63%, lower than the regional and national averages. This is expected to reduce further in future years, to about 61% in the mid-2020s, mainly driven by an increase in the over 65 population. Deprivation

 Stockport is a polarised Borough.  The Index of Multiple Deprivation (IMD) 2015 ranks all small areas in England from the most to least deprived. There are 32,844 such small areas in England and the average population per area is around 1,500.  The most deprived area in Stockport is in Brinnington. It is the 47th most deprived area in England.  The least deprived area in Stockport is in Bramhall. It is the 111th least deprived area in England.  All priority neighbourhoods in Stockport include areas of high deprivation.

Stockport’s economy

 £6.2 billion economy, 3rd largest workforce within Greater Manchester (GM), with 124,000 people employed in 13,000 businesses.  62.4% of the population are of working age (16-64).  81.5% of Stockport’s working age population are economically active, above the North West and UK averages.  One of the lowest unemployment rates in GM, significantly lower than the regional and national rates.  Latest data show that Stockport had nearly 13,000 businesses in 2016, an increase of 345 on the previous year.  Stockport has consistently outperformed GM, regional and national business start-up rates per 10,000 residents over the last decade.  41.1% of Stockport’s residents were qualified to NVQ level 4 or above in 2016, a 5% increase from 2015. Only 6.3% of the Borough’s population have no qualifications, compared with 9.8% across GM.  Stockport supports a diverse economy. Over the next 10 years, administrative & support services, information & communication, professional services, accommodation & food services, and wholesale/retail trade are expected to be Stockport’s main growth sectors.  Stockport residents (aged 16-74) are currently more likely to have managerial or intermediate occupations compared to both GM and national averages.

Planning The Planning service deals with around 3,500 planning and related applications per year.

Highways and transport The transport network in Stockport is an asset worth over £1billion, comprising of:  924km of road and associated footways.  600 bridges and structures.  33,000 streetlights. Museums and cultural attractions  6 museums (Air Raid Shelters, Bramall Hall, Chadkirk Chapel, Stockport Museum/ Staircase House, Hatworks, Stockport War Memorial Art Gallery).  Museum collections.  Stockport Market (run via a contract with a commercial operator).

National and Regional Policy drivers impacting on the Portfolio

Generic

 Greater Manchester Strategy (GMS): The GMS and its associated Implementation Plan were launched in October 2017. GMCA considered the first six-monthly Performance Dashboard in April 2018, reporting on performance between 1st October 2017 and 31st March 2018. Stockport Council has been actively involved in the production of the GMS and the Implementation Plan and these exercises have been informed by, and have informed, local planning on an ongoing basis (for example Stockport Council Plan for 2018/19 and Portfolio Agreements for 2018/19).

 Brexit: To date, the decision to leave the EU has had limited impact on the UK economy, which continues to grow (albeit more slowly than the current EU average). Until the terms of the exit deal and post-Brexit arrangements are established however, longer-term implications are difficult to gauge. The Council will therefore need to remain up-to-speed with latest Brexit-related developments and analysis, and GMCA’s monthly “Brexit Monitor” document will help with that process.

The Economy

 National economic performance: The recently published UK Powerhouse Study, produced by the Centre for Economics & Business Research, suggested Stockport currently has the fastest growing economy in the North West. Local economic performance however will inevitably be subject to national and international influences, with Brexit perhaps being a particularly significant factor over the next few years. Wider trends relating to issues such as wage inflation, business & consumer confidence, willingness of businesses to invest and shorter horizons for financial commitments & leases all have the potential to affect Stockport’s economy. The Council therefore needs ensure it is in a position to capitalise on opportunities presented by changing economic circumstances and to mitigate the impact of any threats.

 Town Centre Challenge: Andy Burnham, the Greater Manchester Mayor, launched this initiative in December 2017. It relates to finding ways to address long-term challenges faced by GM’s town centres in light of the changing nature of retail. Each GM district nominated a town centre for the Challenge and Stockport’s nomination is Stockport Town Centre. The GM Mayor visited each centre for workshops and meetings during Quarter 4. Stockport’s event took place on March 21st and it focussed on the emerging cross-party Town Centre Living agenda. It brought together a broad range of stakeholders, including residential developers and investors, and resulted in a commitment from the GM Mayor to work with Stockport Council to explore the feasibility of creating a Mayoral Development Corporation to help unlock residential development in Stockport.

 Universal Credit (UC): DWP is currently rolling out UC across the UK and this is due to complete in December 2018, with Stockport’s Job Centre Plus area going live in November 2018. After the rollout process has completed, DWP will then begin moving all remaining existing benefit claimants to the UC full service starting in 2019. Based on experiences in areas where UC has been introduced so far, Government has argued that UC has been successful and that UC claimants are 3% more likely find work than Jobseeker’s Allowance claimants are. There have been criticisms however regarding the

time new claimants have to wait for their first UC payment and suggestions that this led some claimants into poverty and unable to pay for their accommodation. Government argues however that measures it has put in place, including the option for claimants to receive an advance payment, are sufficient to mitigate the impact of this waiting period. The impact UC will have in Stockport therefore remains difficult to predict.

Employment and skills

 Devolution of the Adult Education Budget (AEB): Originally scheduled for 2018/19, the devolution of AEB from DfE to GMCA has now been deferred to academic year 2019/20 (2018/19 will be a “transitional” year). Formal consent from GMCA and its constituent councils for the devolution of the budget is required by early July. Stockport Council has been significantly involved in developing this work and the emerging Stockport Work & Skills Commission report on priority issues and actions for Work & Skills in Stockport will provide a key starting point locally for ensuring that needs in Stockport influence the offer of local providers that is commissioned in the future by GMCA. Addressing employers’ skills needs will be particularly important.

 GM Working Well (Work & Health Programme): This will help the long-term unemployed and people with disabilities to find quality, sustained work. InWorkGM secured the contract to provide this service, which was launched on 24th January at an event hosted by Stockport Homes (and attended by Andy Burnham). The programme is due to run until October 2022 and 22,600 programme starts across GM (1,500 in Stockport) are expected. Work & Skills Lead Officers in the Council are currently working with InWorkGM to develop a Local Integration Plan, to ensure local delivery addresses the barriers to employment that local people face.

 GM Institute of Technology (IoT): IoTs will focus on improving provision of technical professional education in Science, Technology, Engineering & Maths (STEM) subjects at higher levels. Discussions have taken place regarding establishment of a GM IoT. Its delivery however is largely dependent on the outcome of a bid for funding to the Department for Education. Outcomes of bids are not likely to be announced until summer 2018. If successful, the first elements of the GM IoT should open sometime in 2019. Stockport Council will engage with this work, for example, to inform development of the Creative, Digital and Media sector, a growth area in Stockport, as well as the Work and Skills element of the Council’s Inclusive Growth work.

 Proposed merger of Stockport and Trafford Colleges: In February 2018, GMCA conditionally approved a £16m funding application for Stockport Campus Skills Capital Project. This relates to redevelopment of the Stockport College site, as part of the planned merger of Stockport College and Trafford College. Stockport Council fully supports the bid and Council officers were involved in putting the bid together alongside colleagues from Trafford Council and GMCA.

 Apprenticeship Levy: This is a levy on UK employers (0.5% of their pay bill) with an annual wage bill of over £3m to fund new apprenticeships, introduced in April 2017. The Government aims to establish an additional 3 million apprenticeship starts in England by 2020. The levy is intended to help to deliver new apprenticeships and support quality training by putting employers at the centre of the system. In January 2018, the Chartered Institute of Personnel and Development (CIPD) reported findings from a survey of 1000 employers on the Levy. Whilst it was still too early to assess its full impact, it did suggest that early indications were that the levy was not having the intended impact (new

apprenticeship starts were less than in the same period the previous year). The report also suggested that employers would prefer that the levy could be used for all staff training, and not be restricted to training for apprentices.

Planning

 National Planning Policy Framework (NPPF): The existing NPPF (from 2012) remains in place, along with a considerable amount of supporting guidance in the form of National Planning Practice Guidance (NPPG) documents across a range of topics. The NPPF is under review however, and consultation on a revised version ended in May 2018. Stockport Council and GMCA responded to that consultation. Publication of the updated NPPF is due in the summer of 2018.

 Neighbourhood Plans: In addition to the national framework, legislation exists to support development of Neighbourhood Plans. Once adopted, these form part of the statutory development plan for the Borough. Stockport Council currently has three designated forums (Woodford, Marple and High Lane) which are at various stages of developing a Neighbourhood Plan for their area. At least one more is likely to start soon.

 Greater Manchester Spatial Framework (GMSF): Due to significant extra work needed to take account of the implications of the recent local election results and to maximise the opportunities for town centre and brownfield development, the second draft of the GMSF, originally set to be published in June 2018, will now be published later in the summer. A 12-week public consultation will follow publication of the plan. It will set out strategic figures, allocations and policies for housing and employment development, alongside other related policies. As well as forming part of the development plan for Stockport, it will also influence the Stockport Local Plan.

Highways and Transport

 Transport for the North (TfN) Strategic Plan: TfN is currently developing a Strategic Plan for transport across the north of England that will set integrated priorities for major pan-Northern transport infrastructure investment over the next 30 years.

 Greater Manchester Spatial Framework and GM Transport Plan 2040: The long-term transport priorities and strategic ambitions for GM are set in the GM Transport Plan 2040. Through the GMSF, transport priorities for the first 5 years of development and delivery are also being agreed.

 New Highways Code of Practice – “Well Managed Highways”: In 2016, a new code of practice was launched by the DfT to improve the way local authorities manage highways assets. Local authorities have two years from the publication of the code of practice to review their existing policies, implement the new code, and adopt a risk-based asset management approach. The Council is required to complete this by October 2018.

 GM Cycling and Walking Commissioner: The GM Mayor appointed former professional cyclist Chris Boardman as Cycling and Walking Commissioner for GM. His role is to promote and improve the delivery of cycling and walking infrastructure across GM. This includes the deployment of the new £160m Mayoral Challenge Fund.

 GM Congestion Deal: In March 2018, GMCA approved the GM Congestion Deal, a coordinated plan for tackling congestion across GM. It consists of a series of short and medium term measures that stakeholders will deliver collaboratively. It includes managing the existing network more effectively, giving people more choice about how they make their journeys and providing new highway & public transport capacity.

 GM Clean Air Plan: Following publication of the Government’s national plan for tackling roadside NO2 emissions (July 2017), the Council is required to produce a plan to tackle emissions in the shortest time possible along the A34 in Cheadle/Gatley. This is being progressed in partnership with TfGM and other GM Boroughs via the production of a GM Clean Air Plan. This is due for submission to Government by December 2018 and includes a requirement to test the potential for a charging Clean Air Zone.

Culture

 Great Place Scheme: Heritage Lottery Fund, Arts Council England and Historic England launched this scheme to help culture and heritage organisations change how they work together so that arts, culture and heritage contribute more to meeting local social and economic objectives. GMCA secured £1.5m to deliver “Stronger together: A Culturally Diverse and Democratic City Region”. This project involves all GM districts working to shift the way GM approaches culture, ensuring parity of provision across GM, improving engagement and access, developing and diversifying our cultural workforce, encouraging more movement between the Boroughs and improving health outcomes for residents.

Headline GMS Priorities relating to the Portfolio, and relevant objectives

The work of the Economy & Regeneration Portfolio will contribute to the following priorities set out in the Greater Manchester Strategy, launched in October 2017.

Priority 3: Good jobs, with opportunities for people to progress and develop. Priority 4: A thriving and productive economy in all parts of Greater Manchester. Priority 5: World-class connectivity that keeps Greater Manchester moving. Priority 6: Safe, decent and affordable housing Priority 7: A green city-region and a high quality culture and leisure offer for all.

Financial Resources

Portfolio resources are split between Revenue (cash limits), Income received into the portfolio, Earmarked Reserves and Capital Funding.

In total, the resources available to the Portfolio for 2018/19 are £81.389m

This section sets out the budgets and spending plans for the Portfolio across these three areas.

Economy & Regeneration - Spending Power

Reserves 2%

Net Cash Limit Budget 3%

Gross Income 3%

Capital Budget 92%

The following table provides a summary of the total resources. Section three of this report provides further breakdown of each category of spend that make up the total resources available.

Cash Limits: Net Approved Revenue Gross Gross Capital Use of Total Budget Income Expenditure Budget Reserves Resources £000 £000 £000 £000 £000 £000 2018/19 2,562 2,690 5,252 75,076 1,062 81,389 Resources

It is worth noting that “gross income” is based on estimated income from sources external to the portfolio and may vary during the year. It is income above the cash limit budget from

sources such as grants, fees & charges, sales, rents, recharges to the capital programme, and contributions from other organisations.

The following graph provides an illustration of how the net cash limit budget has changed for this portfolio over a period of three years. The 2016/17 and 2017/18 position illustrates the recurrent net cash limit budget at outturn. The 2018/19 budget is the opening cash limit resource.

Economy & Regeneration Net Cash Limit Budget (£000s) over the last three years. £2,580 £2,577

£2,575 £2,572

£2,570

£2,565

£2,562 £2,560

£2,555

£2,550 2016/17 2017/18 2018/19

The key council services, functions and teams in the Economy and Regeneration Portfolio are set out below.

Service Function Purpose Growth Growth  Ensure an inclusive approach to growth.  Support and enable business growth.  Work with public and private sector partners to deliver key regeneration opportunities.  Ensure and promote a supply of sites and premises for businesses and development.  Encourage the development of skills to meet business growth needs.  Promote Stockport as a location.  Foster a vibrant town centre. Learning & Employment  Local implementation of sub-regional skills and Employment Support employment initiatives.  Targeted support for residents furthest from the labour market.  Development and delivery of local schemes to increase labour market participation.  Alignment of the devolved Adult Education Funding Budget to a Stockport based skills need ask for commissioning. Planning Providing an  Determining planning applications in line with adopted efficient and planning policy, statutory guidelines, local democratic effective accountability and residents’ needs. planning  Working with applicants to ensure that development is system sustainable.  Ensuring positive planning in Place Shaping with a strong emphasis on high quality design.  Development and adoption of relevant allocations and planning policies through the Local Plan.  Monitoring policies in the development plan for effectiveness with a view to a statutory 5-year review.  Supporting neighbourhood forums in the development and adoption of neighbourhood plans.  Liaising with different services across the authority. Highways & Transport  Strategy and major schemes. Transport Strategy  Identifying future transport priorities for the Borough.  Integrating Council’s priorities with local planning policy and policymaking at the GM level.  Project and programme management.  Bidding and funding for transport development and capital projects.  Walking and cycling.  Liaison with public transport operators.

Service Function Purpose Highways & Design and  Highways design for improvement schemes. Transport Improvement  Structures (inspection, assessment, feasibility, design and construction).  Flood management (Lead Local Flood Authority). Culture Museums  Providing an engaging museum offer that attracts visitors to Stockport and encourages residents to explore their town’s heritage.  Safeguarding collections that tell the story of the town and ensuring they are accessible to the public.  Providing lifelong learning opportunities relevant the museums portfolio.  Continually improving the financial sustainability of the museums portfolio by reducing costs and maximising income generation opportunities. Markets  To provide affordable space for independent and niche retail in the heart of Stockport.  To animate public spaces by commissioning event markets.

Reporting Progress The information in this Portfolio Agreement will be updated throughout the year and reported to the Economy & Regeneration Scrutiny Committee as follows:

Report Economy & Regeneration Scrutiny First Update 2nd August 2018 Mid-Year 1st November 2018 Final Update 24th January 2019 Annual Report 30th May 2019 (to be confirmed)

2. ECONOMY & REGENERATION PORTFOLIO: DELIVERING OUR PRIORITIES IN 2018/19

2.1 Priorities and Delivery Plans

Portfolio priorities are set out in the Council Plan, and those relating to the Economy & Regeneration Portfolio are included below along with a short description of each delivery project/programme. These include key objectives and milestones for 2018/19. In addition, they are cross-referenced with GMS Priorities and delivery plans.

2.2 Measuring Performance and Reporting Progress

The performance indicators that support delivery of these priorities include statutory and locally defined measures and help monitor performance against the Portfolio’s key priorities.

The measures were chosen to reflect the impact or outcome of activity that is relevant to achieving the Council’s objectives. They will also reflect inputs, outputs or processes that deliver results that contribute to the wider outcome. Where the measure supports a GMS target, this is highlighted, with the GM-wide target referenced.

These measures will be reviewed in light of the new delivery models being developed to ensure that they continue to reflect progress in achieving better outcomes for Stockport.

The measures included below are those considered most appropriate to include in this document and to be reported on a quarterly, six-monthly or annual basis. As has been the case in previous years, should scrutiny members wish to examine a particular service/ function’s performance in more detail, then specific reports would be produced which include a wide range of measures and other means of assessing performance.

The “Good Performance” column indicates whether a high or a low score for that indicator is “good”. When considering number of unemployed people, for example, low scores are good; high scores are good however, when considering indicators like square feet of office, retail and industrial space let or sold to new occupiers.

2.3 Portfolio Risks

Risks to delivering each Portfolio priority are also set out, including those relating to specific delivery projects and programmes. Operational risks to service delivery are identified, monitored and managed at a service level.

A full update on all risks will be included in the Mid-Year and Annual reports, with the First and Final Update reports containing updates by exception. New and emerging risks identified in-year will be added to the register with the approval of the Portfolio Holder and Corporate Director.

Priority 1: Inclusive growth We will focus on support and regeneration of the local economy, including a significant programme of investment in Stockport Town Centre. This will be reflected within our Local Plan alongside the future development of the GM Spatial Framework. There will be a strengthened focus on securing the economic and social benefits of growth for local people, creating good jobs for people to increase individual and community independence and taking steps to address the rising cost of living.

Delivered by  Work and Skills Commission: This will lead a public debate focused on work, skills and the local economy in Stockport. It involves businesses, the present and future workforce, young people and those providing education and skills training.  Targeted programme of business sector development and business area support.  Business engagement programme.  Providing workspace for, and supporting, start-up businesses through the management of business incubation and managed workspace at SBIC and Merchants House, support for MMU Marketplace Studios and promotion of start-up business support.  Ensuring employment, training and apprenticeship opportunities from developments, through targeted work clubs and jobs fairs.  Identifying, enabling and promoting sites and premises for business growth and investment, including securing funding for the delivery of key brownfield sites.  Active partnership working to deliver key initiatives and promote Stockport, including Stockport Economic Alliance, Chamber of Commerce, Marketing Stockport, GMCA and Gander (which brings business and education together to build mutually beneficial relationships for the future).  Harnessing employer interest in Corporate Social Responsibility and Skills.  Development and delivery of programmes of digital infrastructure, coverage and promotion of take-up.  Development of a new Business Growth & Skills Plan.  Greater Manchester Spatial Framework (GMSF): This will set the high-level targets for the Borough and will allocate strategic sites to help deliver jobs.  Stockport Local Plan: This will ensure that the relevant allocations and policies are in place to ensure that jobs are delivered as part of the wider place-making agenda.  Neighbourhood Plans: These allow a local interpretation of wider planning policies and help local communities influence the planning of the area in which they live and work. They can be used to develop a shared vision for local areas and influence where new homes, shops, offices & other development should be built, identify and protect important local green spaces and influence what new buildings should look like. Neighbourhood Plans however, are not designed to stop or reduce development and cannot seek to deliver a lower level of development than is allowed for in the GMSF and Local Plan.

GMS priorities, context and challenges

Priority 3: Good jobs, with opportunities for people to progress and develop. Priority 4: A thriving and productive economy in all parts of Greater Manchester.

 Lower than national average employment rates for people from ethnic minority groups and people with disabilities.

 GM’s Gross Value Added (GVA - a measure of the productivity) per head of the resident population has consistently been below 90% of the UK average over the last decade.

 There is a need to reduce the number of people earning below the real living wage, as well as increasing the overall number above it.

 Positive recent progress on business start-ups, with the challenge of maintaining that and supporting increasingly high value start-ups.

Council Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance Number of breaches of 39% 40% planning control E&R1.1 Quarterly Low 40% discovered as a % of 468 C 603 C complaints received. 180 B 239 B The measure will enable the Planning Service to monitor the amount of complaints received (C) versus the numbers of breaches found (B) and ensure that resources, including providing self- help on the website, are applied appropriately. Number of breaches 91% 90% E&R1.2 resolved by negotiation, Quarterly High 80% (164) (217) and % of total breaches. Priority for Enforcement is to resolve, where possible, breaches of planning control through negotiation. The aim is to increase the number resolved without the need for formal action. Number of breaches where formal action was taken (including notices except for a Planning Not Not E&R1.3 Contravention Notice and Quarterly Low 20% Available Available prosecutions that have not resulted from a notice – i.e. trees, listed buildings etc.) Where negotiation has not resolved the breach, the Planning Service will take proportionate formal action. Formal action will be measured due to the complex and time-consuming nature of action.

Partnership Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance % occupied managed workspace and incubator E&R1.4 floor space actively Quarterly High 81.0% 83.0% 91.0% managed for start-up/ micro-businesses This indicator relates to the % of the available floor space set aside at Stockport Business & Innovation Centre (SBIC) and Merchants House for start-up and micro-businesses that is occupied. This target is based on the business plan forecast for SBIC and Merchants House.

% occupied managed workspace and incubator floorspace actively managed for start-up/micro businesses 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Employment-related developments approved Not E&R1.5 Annually High 17,460 TBC on previously developed available land (square metres). This indicator shows the number of square metres of new employment developments that have been approved on brownfield sites. This is reported annually in arrears each autumn. The 2017/18 figure will not be available until autumn 2018 and a target for 2018/19 will be considered then. % of occupied retail, commercial and business E&R1.6 Annually High 93.5% 90.9% 92.0% premises within the Borough's district centres. This indicator shows the % of occupied retail, commercial and business premises in the eight main town centres in the Borough outside of Stockport Town Centre1. The survey was last undertaken in August 2017 when 90.9% of premises were in use. The next survey will be in August 2018. The target is based on previous occupancy rates with slight improvement on 17/18.

1 Bramhall, Cheadle, Cheadle Hulme, Edgeley, Hazel Grove, Marple, Reddish, Romiley.

Partnership Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance

Proportion of occupied retail, commercial and business premises within the Borough's district centres 94.0% 93.0% 92.0% 91.0% 90.0% 89.0% 88.0% 87.0% 86.0% 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Square feet of office, retail and industrial space E&R1.7 Quarterly High 796,436 1,034,994 800,000 let or sold to new occupiers. This measure shows the square footage of office, retail and industrial space that has been sold or let to new occupiers each quarter/year. 2017/18 benefitted from Redrock, Stockport Exchange and Aurora amongst other developments. This inflated the figures for 2017/18 so the 2018/19 forecast needs to return to a more realistic level. This measure is partly dependent on a supply of floor space that is available, appropriate and affordable to occupiers.

Sqft of office, retail and industrial space let or sold to new occupiers 1100000

1000000

900000

800000

700000

600000

500000

400000

300000 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Number of FTE jobs E&R1.8 Quarterly High 2009 2060 1500 created in relation to floor

Partnership Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance space let or sold to new occupiers. This measure shows the number of new full-time equivalent jobs created that relate to floor space sold or let for office, retail or industrial uses. Again, 17/18 benefitted from Redrock, Stockport Exchange and Aurora amongst other developments, so a more realistic target has been set.

Number of FTE jobs created in relation to floorspace sold or let to new occupiers 2500

2000

1500

1000

500

0 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Contextual Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance Net number of business Not Aim to E&R1.9 start-ups – i.e. business Annual High 310 available maximise “births” minus “deaths”. This shows the net number of business start-ups during the year. This is calculated by subtracting the number of businesses that ceased trading during the year from the number that opened for business during the same period. This is based on the number of new businesses registering for VAT or PAYE and the number businesses de-registering. It is reported in an ONS survey published each autumn that shows the net figure relating to the previous calendar year. The figure in the table was reported in November 2017 and relates to 2016. The figure for 2017 will be available in autumn 2018. As the extent to which the Council can influence this measure is limited, a “direction of travel” target is suggested.

Contextual Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance Net number of new business start-ups 450 400 350 300 250 200 150 100 50 0 -50 2011 2012 2013 2014 2015 2016 -100

Business start-up survival Not Aim to E&R1.10 Annual High 61.4% rates after 3 years (%). available maximise This indicator shows the % of businesses that started in a given year that are still trading three years later. As with the previous indicator, the reported figure is produced each autumn and relates to the previous calendar year – the 61.4% survival rate above was reported in November 2017 and relates to the number of businesses started in 2013 that were still operating in 2016. As the extent to which the Council can influence this measure is limited, a “direction of travel” target is suggested.

Business start-up survival rates after 3 years

70.0%

65.0%

60.0%

55.0%

50.0% 2012 2013 2014 2015 2016

Responsible Risk Description (and potential Existing Controls officer impact on outcome) (HoS)  Horizon scanning of policy re ESF and any successor funding. Loss or reduction in funding via EU  Work with employers to explore Richard (e.g. European Social Fund (ESF) potential for resources through their Mortimer due to impending Brexit. corporate social responsibility.  Explore other funding options.  Investment in remodelling of unlettable large unit at SBIC into smaller units.  Working with management agencies to Managed workspaces and ensure agreed business plans are Nicola business incubator facilities are implemented effectively. Turner financially unsustainable.  Regular, clear and consistent budget and business management and reporting. “Brownfield First” work is considering Insufficient brownfield land business cases and interventions by the identified for development, unviable Council to help deliver schemes. This for development or not attractive to involves considering a more flexible Emma Curle the market. approach to the application of policy requirements to assist in bringing sites forward. Development Tracker to be created to ensure that up to date ‘live’ information is available, to track delivery rates and flag/ resolve blockages quickly. Developer Planned developments not Engagement & Monitoring post to address Emma Curle delivered on time. and align processes more clearly to ensure the Council assists by working to remove barriers to progress and reduce delays.  Ensure consistent application of checklists.  Provision of increased pre-application

capacity will increase quality of Delays occur in the planning submissions and reduce delay in the Emma Curle process. process. Close liaison with members

in respect of called up items.  Ensure reports are sound to avoid the likelihood of deferrals.

Priority 2: Tackling youth unemployment We remain committed to the development of a youth jobs guarantee, alongside employment, skills and apprenticeship programmes, laying the foundations that will help eradicate youth unemployment.

GMS priorities, context and challenges Priority 3: Good jobs, with opportunities for people to progress and develop. Priority 4: A thriving and productive economy in all parts of Greater Manchester.

 There are skills gaps and shortages across our key sectors, particularly at higher technical and technician levels.

 The publicly funded post-16 skills system is characterised by a high volume of lower level skills and a low volume of higher-level skills.

 Provision of information, advice and guidance (IAG) is fragmented, and vocational pathways for 16-19 year olds/young adults need improvement.

 Unemployment remains a challenge. The “Working Well” initiative has been successful and is being developed further through the new Working Well Early Help and Work & Health programmes.

 The emerging GM Industrial Strategy will set out GM’s plans and future devolution opportunities.

Council Measures

Good 2016/17 2017/18 2018/19 PI Code PI Name Reported Perform- Actual Actual Target ance Numbers of new clients E&R2.1 supported by Council-run Quarterly High 78 70 70 Work Clubs. This indicator measures the number of new clients supported in the year by the Council run Work Clubs in Bridgehall, Lancashire Hill and Offerton. This demonstrates the direct influence of Council funded provision to support jobseekers. Jobs Fair: (a) Number of employers (a) 32 (a) 40 (a) 40 E&R2.2 Annually High attending. (b) 448 (b) 720 (b) 600 (b) Number of attendees. Stockport Jobs Fair is organised annually by the Council and Jobcentre Plus. These measures relate to the number of employers attending and how many people attend. We expect the 2018/19 attendance to be down on last year, as the 2017/18 Jobs Fair was just before Redrock opened, which boosted attendance.

Council Measures

Good 2016/17 2017/18 2018/19 PI Code PI Name Reported Perform- Actual Actual Target ance Working Well (Work & Health Programme) – E&R2.3 % of forecasted work Annually High N/A N/A 100% related outcomes in Stockport to date achieved The Work & Health Programme is delivered in Greater Manchester by the InWorkGM consortium, to support those individuals either workless due to a health condition or long-term workless. The first referrals to the programme were in February 2018. This indicator measures if the programme is on track to deliver the expected sustained work outcomes. If the programme is on track with the expected forecasted performance for job outcomes at any point in time the performance will be 100%. Greater levels of job outcomes achieved than forecasted will lead to a performance in excess of 100%, and lower than expected job outcomes will lead to a performance below 100%. The Council can influence this programme by ensuring local integration of services and performance management process.

Partnership Measures Good 2016/17 2017/18 2018/19 PI Code PI Name Reported Perform- Actual Actual Target ance Number of GP Practices E&R2.4 engaged in Working Well Annually High N/A N/A 4 Early Help The GM Working Well Early Help Programme is likely to begin in February 2019. The Council influences the programme through local integration of services and through supporting the procurement and performance management process. This will support individuals who are in employment and off work with health conditions, or who have recently become unemployed with health conditions. Referrals via GP practices is a key referral route being piloted. One GP Cluster per GM district is included and the pilot area in Stockport has 7 practices. The target is to have at least 4 of them actively engaging with the programme by the end of 2018/19. Number of customers supported by Troubled E&R2.5 Families Employment Annually High 28 14 15 Advisers starting employment This measures the impact of the Troubled Families Employment Advisers, who are employed by Jobcentre Plus, but working with Stockport Family frontline staff to support vulnerable families for whom worklessness is an issue.

Contextual Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance % of unemployed 18-24 Aim to E&R2.6 Quarterly Low 3.4% 3.3% year olds in the Borough. minimise

Contextual Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance This is the % of all people aged 16-24 who live in the Borough that are registered unemployed. As the extent to which the Council can influence this measure is limited, a “direction of travel” target is suggested.

Percentage of unemployed 18-24 year olds 8

0 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

% unemployed overall Aim to E&R2.7 Quarterly Low 4.2% 3.9% (18-64). minimise This is similar to the above indicator, but is relates to the % of all people aged 16-64 who live in the Borough who are registered as unemployed. As the Council has limited influence on this measure, a “direction of travel” target is suggested.

Percentage of unemployed 18-64 year olds 7

0 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Number of Stockport Not E&R2.8 residents starting Annually High 2380 TBC Available Apprenticeships

Contextual Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance This indicator shows the number of Stockport residents commencing Apprenticeships. Due to a time lag, the 2017/18 data is not available until November 2018, and the levels of starts are expected to fall nationwide. A 2018/19 target will be set when the 17/18 total is available.

Risk Description (and potential Responsible Existing Controls impact on outcome) officer (HoS)  Continued neighbourhood management approach to Government and GM employment employment and skills services. programmes do not effectively  Working closely with Work reach those in most need of support Richard Mortimer Programme and ESF contractors (e.g. people in priority to promote service alignment neighbourhoods). and use of venues within priority areas.

Priority 3: Cultural Improvement Plan We will continue to maintain and enhance Stockport’s cultural and heritage assets, and deliver a plan to optimise Stockport’s wealth of cultural activity for the benefit of all.

Delivered by:  Cultural Improvement Plan: Project to improve Stockport’s cultural offer by developing a local network of cultural stakeholders and maximising external funding opportunities for staging events and festivals and for site improvements.  Cultural Services Delivery Reform: Project to examine alternative delivery models for each of Stockport’s museums/cultural attractions to minimise the need for Council subsidy.

GMS priorities, context and challenges Priority 7: A green city-region and a high quality culture and leisure offer for all.

 A new approach to assessing the value of engagement with culture is being developed through the Great Place initiative. There is significant variance in levels of engagement across GM and developing a better understanding of this and targeting resources to achieve greater parity and a more inclusive GM will be a future focus.

Council Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance Number of visits to E&R3.1 Quarterly High 122,799 131,379 130,000 Stockport museums. This is the number of people who visit Stockport’s museums, galleries etc.2. The target for 2018/19 is lower that achieved in 2017/18, mainly due to the high visitor numbers at the Strawberry Studios exhibition held during the year.

Number of visitors to Stockport’s museums 140,000

120,000

100,000

80,000

60,000

40,000

20,000

0 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Risk Description (and Existing Controls Responsible potential impact on officer (HoS) outcome)  Regular budget monitoring. Income generated  Promotion of services and facilities to through charges falls encourage uptake. short of levels required  Researching opportunities for external funding Peter Ashworth to maintain current sources. service.  Timely recovery of charges.  Investment programme. Provision of services  Clear and robust service specifications. from third parties does Peter Ashworth  Regular contract management/monitoring. not fulfil expectations.

2 Air Raid Shelters, War Memorial Art Gallery, Bramall Hall, Chadkirk Chapel, Staircase House/Stockport Museum and Hat Works.

Priority 4: Stockport Town Centre regeneration We are committed to developing the physical and business infrastructure in and around Stockport Town Centre, working with our partners to attract more people and businesses with a great mix of retail, commercial, leisure and residential opportunities.

Delivered by  Securing the long-term future of Merseyway shopping centre through the delivery of viable redevelopment proposals.  Further developing Stockport Exchange as a flagship commercial district through successful construction of the Phase 3 office building.  Continuing the transformation of the Market and Underbanks area through targeted investment and redevelopment (including the renovation of The White Lion).  Cultural Improvement Plan: Project to improve Stockport’s cultural offer by developing a local network of cultural stakeholders and maximising external funding opportunities for staging events and festivals and for site improvements.  Market Transformation: Project to improve Stockport Market’s offer by working with third party operators to secure a regular market offer and event markets that attract visitors to the Market Place.  Animation of the town centre including the co-ordination and promotion of a programme of events and animation, including the Christmas programme.  Securing funding for, and delivering, the Townscape Heritage ‘Rediscovering the Underbanks’ project; Housing Infrastructure Fund projects and other funding opportunities.  Delivery of Stockport Town Centre Place Marketing and Communications programme to promote the Town Centre and other inward investment activity to secure lettings.  Town Centre partnership working including Town Centre Business & Retail Forum; support for the Business Improvement District (BID) Totally Stockport; working groups shaping and co-ordinating events, safety & security, Christmas, marketing; Town Centre Ambassador programme.  Development of commercial opportunities including sites and screens.

GMS priorities, context and challenges Priority 3: Good jobs, with opportunities for people to progress and develop Priority 4: A thriving and productive economy in all parts of Greater Manchester. Priority 6: Safe, decent and affordable housing. Priority 7: A green city-region and a high quality culture and leisure offer for all.

 The Town Centre Challenge is part of our response and driving growth across GM will be central to our local industrial strategy.

Council Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance % of occupied retail, commercial and E&R4.1 business premises Quarterly High 87.5% 91.0% 91.0% within the Merseyway Shopping Centre. This shows the % of the units in the Merseyway Shopping Centre that are occupied. The combination of rising import costs, fragile consumer spending, and the ongoing rise of online shopping has resulted in pressure on the retail sector nationally and a target of maintaining the 2017/18 level of occupancy is appropriate. This indicator was included in performance reports for the first time in 2017/18, so longer-term trends are not available. However, the trend over the past year is shown in the graph below.

Occupancy rates in Merseyway Shopping Centre 100.0% 98.0% 96.0% 94.0% 92.0% 90.0% 88.0% 86.0% 84.0% 82.0% 80.0% 2016/17 Q4 2017/18 Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4

Partnership Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance Footfall in Market Area: Change from Previous Year in Footfall High (quarterly figure will E&R4.2 Quarterly (and -6.3% -3.0% 5.0% reflect change positive) compared to the equivalent Quarter in 2017/18). This indicator shows the % change between years (and the % change since the same quarter the previous year) in the number of people visiting the market area.

% of occupied retail, E&R4.3 Quarterly High 79.9% 77.0% 80.0% commercial and

Partnership Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance business premises in Stockport Town Centre. This shows the % of the units in Stockport Town that are occupied.

Proportion of occupied retail, commercial and business premises within Stockport Town Centre 90.0% 88.0% 86.0% 84.0% 82.0% 80.0% 78.0% 76.0% 74.0% 72.0% 70.0% 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Number of independent E&R4.4 businesses in Stockport Quarterly High 326 325 330 Town Centre. This shows number of independent businesses in Stockport Town Centre.

No. independent businesses in the Town Centre 340

330

320

310

300

290

280 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Square feet of office, E&R4.5 retail and industrial Quarterly High 188,843 182,776 100,000 space let or sold to new

Partnership Measures PI Code PI Name Reported Good 2016/17 2017/18 2018/19 Perform- Actual Actual Target ance occupiers in Stockport Town Centre. This shows square footage of office, retail and industrial space let or sold to new occupiers in Stockport Town Centre. Reduction of space in the town centre for office occupiers (due to residential conversions), most of Redrock now being let and difficulties in the retail sector have led to a reduced target for 2018/19 being set.

Priority 5: Transport priorities to 2040 We will play our part in delivering world-class transport connections that support long-term sustainable economic growth and access to opportunities for all. We are committed to prioritising improvements to public transport through the Town Centre Access Plan and Stockport Interchange and continuing to lobby to bring Metrolink to Stockport.

Delivered by  SEMMMs Refresh – Following adoption of the original South East Manchester Multi-Modal (SEMMM) Strategy in 2001, work is ongoing to refresh the strategy to account for what has been achieved since 2001, ongoing transport challenges and the likely impacts of future growth. The draft strategy identifies long-term transport priorities (including Metrolink) for the SEMMMS area up to 2040 and is due for public consultation in May/June 2018.  Stockport Interchange – regeneration of the existing bus station in Stockport to deliver an integrated transport interchange, including improved passenger waiting facilities.  Town Centre Access Plan – delivery of a major programme of transport improvements in the town centre to improve access for all modes, reduce the impact of congestion and improve the reliability of the highway network.  Delivery of the Cycling and Walking Strategy – An integrated strategy for Cycling and Walking in Stockport has been developed in order to set out the Council’s key priorities and approach to cycling and walking as part of the wider transport strategic priorities. This aligns with ongoing work to develop a Local Cycling and Walking Infrastructure Plan (LCWIP) for Greater Manchester. A draft strategy is due for public consultation in June 2018.

GMS priorities, context and challenges Priority 5: World-class connectivity that keeps Greater Manchester moving.

 GMCA and local authority investment in transport services and infrastructure, including cycling and walking, has supported modest performance gains.

 Further investment and bus service reform should deliver a more integrated network, further improving connectivity.

 Tackling poor air quality is a key GM priority, requiring significant national as well as local intervention.

Partnership Measures PI Code PI Name Reported Good 2014 2015 2018/19 Perform- Actual Actual Target ance CO2 emissions (metric tonnes per capita) within Aim to E&R5.1 Annually Low 4.2 4.1 the scope of influence of minimise local authorities. These figures are obtained from annual reports commissioned by DEFRA that include estimates of CO2 emissions across the UK. Data is reported two years retrospectively. The most recent data (relating to 2015) was released in Autumn 2017. Stockport’s figure of 4.1 in 2015 compares with 5.0 in England. Data for 2016 will be released in autumn 2018.

CO2 Emissions per capita within the scope of influence of Local Authorities

6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Risk Description (and potential Existing Controls Responsible impact on outcome) officer (HoS) Financial and reputational damage to the Council resulting from delays Appropriate project and programme Sue Stevenson in the delivery of major management processes in place. infrastructure projects. Failure to integrate Stockport’s transport priorities (as identified Clear priorities identified via through SEMMMS Refresh) into SEMMMS Refresh and presented policymaking at the Greater through GM forums, including Sue Stevenson Manchester level, resulting in a Transport Strategy Group, Highway failure to secure funding and Managers Group and Planning necessary commitment to deliver Officers Group. the priorities.

3. ECONOMY & REGENERATION PORTFOLIO FINANCIAL RESOURCES AND MONITORING 2018/19

3.1 Total Resources

In total, the resources available to the Portfolio for 2018/19 are £81.389m. This is made up of the Gross Revenue Budget, Approved Use of Reserves and Capital Schemes. These funding sources are described in further detail in Sections 3.2 to 3.4 of this report.

3.2 Revenue Budget

2018/19 Budget

Cash Limits are approved before the financial year commences and each Portfolio is responsible for ensuring that their net expenditure does not exceed their cash limit for that year. The Portfolio’s net cash limit is made up of the gross expenditure budget less budgeted income.

The Portfolio’s cash limit for 2018/19 is £2.562m, representing a 2% reduction on the final cash limits of the portfolios constituent services in 2018/19.

Calculation of 2018/19 Cash Limits 2018/19 ECONOMY & REGENERATION PORTFOLIO £000 2017/18 Budget 2,615 Reversal Corporate Redundancy budgetary support 2017/18 only. (43) Building Control Fees & Charges Savings (10) 2018/19 Cash Limit Budget 2,562

The cash-limit budgets, for the functions within the Portfolio for 2018/19, are as follows:

Portfolio Expenditure Income Non- Net Cash Economy & Employee Gross Gross Employee Limit Regeneration Expenditure Expenditure Income Expenditure Budget £000 £000 £000 £000 £000 Building Control 408 69 477 -433 44 Directorate 187 154 341 -483 -142 Economy Work & 1,017 405 1,422 -88 1,334 Skills (Growth)*

Portfolio Expenditure Income Non- Net Cash Economy & Employee Gross Gross Employee Limit Regeneration Expenditure Expenditure Income Expenditure Budget Markets 130 137 267 -177 90 Museums and Arts 928 124 1,052 -413 639 Planning 1,122 121 1,243 -978 265 Transport Strategy 189 261 450 -118 332 Grand Total 3,980 1,272 5,252 -2,690 2,562 * Further structural changes will take place during the first half of 2018/19.

Savings Proposals

Additional income from increased Building Control fees and charges are forecast to contribute to the savings target by £0.010m.

3.3 Earmarked Reserves

The majority of Earmarked Reserves are kept at a corporate level and services bid for the use of them. This strategic approach is designed to provide financial resilience for the Council. The exceptions to this are the Directorate Reserves and ring-fenced reserves. The Earmarked Reserves for the Economy and Regeneration Portfolio at the beginning of 2018/19 consists of the following:

Approved Reserve Category Reserve Narration To be used for Use £000 Directorate Reserves Directorate Flexibility F&B Sector Directorate Reserve 23 Reserve - Place Development Support Town Centre Living Directorate Flexibility Directorate Reserve Development 69 Reserve - Place Framework Corporate Reserves Development of a Legislative and Statutory new Local Plan Corporate Reserves 228 Requirements Reserve approved by the Executive Capital Programme Corporate Reserves Flood Investment 11 Investment Reserve Reserve Linked to Transformation - Invest to Markets Consultation 53 Budget Save Reserve Reserve Linked to Transformation - Invest to Regeneration 26 Budget Save Reserve Projects

Reserve Linked to Transformation - Invest to HLF Bramall Hall 163 Budget Save Reserve Strategic Priority Capital Programme Interchange and 299 Reserve Investment Reserve College Feasibility Strategic Priority Capital Programme Walking & Cycling 18 Reserve Investment Reserve Projects Stockport Place Strategic Priority Capital Programme Marketing and 75 Reserve Investment Reserve Communications Strategic Priority Capital Programme Stockport Exchange 97 Reserve Investment Reserve Phase 3 TOTAL 1,062

3.4 Capital Programme

Capital Funding comprises non-recurring resources from a range of sources. The proposed portfolio capital programme for 2018/19 and beyond is detailed below:

2018/19 2019/20 2020/21 Economy & Regeneration Programme Programme Programme Capital Programme £000 £000 £000 Highways Street Lighting 582 560 0 LTP and SEMMMS Integrated 4,880 708 0 Transport Highways Structures 808 688 0 Town Centre Structures A6 Viaduct 890 0 0 Town Centre Structures Merseyway 1,600 3,433 0 SEMMMS Relief Road 17,329 16,394 11,706 Section 278 schemes 2,252 2,000 0 Flood Risk Management 292 300 0 Studies and Transport Minor Schemes 54 30 0 Air Quality Grant 101 0 0 PROW 119 100 0 Flood Damage Infrastructure 46 0 0 Programme Pot Hole Programme 398 0 0 District Centres 430 300 0 Road Safety Near Schools 372 100 0 Road Safety 50 50 0 Interchange Bridge 2,191 555 0 Roscoe Roundabout 878 2,943 0 Town Centre Access Plan 14,119 11,687 1,946 Highways Investment Programme 12,034 12,705 12,800 Highways sub-total 59,425 52,553 26,452

Non-highways Stockport Exchange (Phase 3) 4,000 13,919 0 Redrock Development Scheme 3,934 0 0 Aurora Stockport 619 0 0 Markets and Underbanks 2,596 2,500 0 Brownfield Site Schemes 1,002 0 0 Merseyway Redevelopment 3,500 3,500 0 Non-highways sub-total 15,651 19,919 0 TOTAL 75,076 72,472 26,452

Details of the programme:

Scheme Description The structural replacement of columns that are reaching Street Lighting the end of their life. LTP and SEMMMS Integrated Various transport schemes including cycling, town centre, Transport and sustainable transport. Various schemes including: bridge deck waterproofing, bridge deck repairs, bridge bearing repairs, bridge Highways Structures parapet repairs, retaining wall repairs, steps refurbishment, slope investigations, routine and reactive maintenance schemes. Town Centre Structures Merseyway and A6 Viaduct waterproofing schemes. The A6 to Manchester Airport Relief Road Scheme is planned to provide 10 kilometres of new 2-lane dual carriageway on an east-west route from the A6 near SEMMMS Relief Road Hazel Grove (south east Stockport), via the 4 kilometres of existing A555 to Manchester Airport and the link road to the M56. The figures represent Stockport’s element of the scheme. Section 278 schemes Various developer funded schemes. A package of works resulting from the June 2016 flooding Flood Risk Management report. Stockport is leading on the project to build a new bridge Interchange Bridge connected to the Interchange. Funding has been awarded from the DfT’s National Productivity Investment Fund (NPIF) for improvements to the M60 Junction 2 (Roscoe’s) roundabout, Manchester Roscoe Roundabout Road/High Street junction (Cheadle), and paths in Abney Park. Works are due to commence in Quarter 3 of 2018/19 with completion due in March 2020. A package of measures that aims to transform the accessibility and connectivity to and around Stockport Town Centre. The plan considers access by all methods of travel and specifically aims to ease congestion for Town Centre Access Plan buses and general road traffic and encourage walking and cycling, as part of an ambitious vision and development framework for investment in the town centre.

Scheme Description There is a commitment to invest £100m to improve roads and footpaths across the Borough over a nine-year delivery period. This funding will be used to carry out a range of repairs from patching to resurfacing in targeted Highways Investment Programme areas, which will provide a long-term solution to the deterioration on the highway network. One of the key themes of the initiative is investing in economic growth and regeneration to create more opportunities for local residents. Street Lighting Investment Programme Investment in Street Lighting to reduce energy and (Communities & Housing maintenance costs. Portfolio) Various schemes including district centres (highways), Other Schemes studies (highways) and air quality. Cabinet approved Phase 3 of the Stockport Exchange scheme (incorporating Cineworld demolition, office building and neighbouring public realm) on August 15th 2017 (E&R13), with a maximum expected cost of Stockport Exchange (Phase 3) £18.226m, which will be funded by Prudential Borrowing.

It is anticipated that Phase 3 will now commence on site in early autumn 2018, with an anticipated completion of spring 2019. The Council’s Executive approved the Redrock leisure led development scheme (incorporating Multi-screen Cinema, Multi-Storey Car Park, and Retail and Food and Beverage Redrock Development Scheme units) on December 17th 2013 (ED1447). The scheme is now complete, with the remaining allocation in 2018/19 relating to outstanding construction payments and retention monies. The redevelopment of Aurora (formerly Gorsey Bank) into B1 light industrial space was completed in December Aurora Stockport 2017. The remaining allocation of £0.652m available in 2018/19 will cover outstanding payments and retention. The scheme reflects the regeneration strategy for the wider Market Place and Underbanks area approved by the Executive on 30 September 2014 (ED1636): to create a vibrant retail, leisure and residential destination, focussed on the development of creative industries and specialist independent retail, with new residential Markets and Underbanks development. The scheme includes proposals to invest in a rolling programme of measures in the area, including selected acquisition, redevelopment, refurbishment, letting and resale, coupled with public realm improvements, in order to drive delivery of the regeneration strategy.

Scheme Description Feasibility and pre-development work on a range of Brownfield sites is being progressed to deliver on the Brownfield Site Schemes Council’s regeneration and housing ambitions. Viable schemes the Council wants to invest in will be brought forward for Scrutiny and Cabinet approval as appropriate. On 19th December 2017 the Cabinet approved in principal (and subject to further feasibility works) a first package of works to redevelop the Merseyway Shopping Centre, comprising (decision E&R21):

Merseyway Redevelopment  The creation of a Food Court at Arden Walk;  The creation of semi-permanent retail and leisure ‘pods’ at suitable points along Merseyway;  Design works aimed at ensuring the former Next unit is let at the earliest opportunity.

Funding the Capital Programme

2018/19 2019/20 2020/21 Resources £000 £000 £000 Capital Grants 44,904 30,409 14,485 Directly Funded Borrowing 14,618 20,944 0 Unsupported Borrowing 12,223 15,193 11,967 Capital Receipts 1,033 150 0 Commuted Sums 2,252 2,000 0 Revenue Contributions (RCCO) 46 3,776 0 TOTAL 75,076 72,472 26,452