Date 25 Oct 2017 Version 1.1 Approved by KB 1 ECONOMY and REGENERATION PORTFOLIO OVERVIEW

Date 25 Oct 2017 Version 1.1 Approved by KB 1 ECONOMY AND REGENERATION PORTFOLIO OVERVIEW

Portfolio Summary During this Quarter the Council initiated two significant pieces of research which will take place over the next six to nine months that will inform the development of our approach to Inclusive Growth. A Work and Skills Commission will engage local businesses, employers, trade unions, employees and potential employees. It will assess the skills that local employers need, skills gaps in the local work force, and will investigate the barriers that sometimes prevent people moving into employment. The other piece of work (“Poverty Insight”) will investigate the impact poverty has on the lives of too many of our residents. I will provide updates on this work in future Portfolio reports.

The Council completed the Mills Strategy Review and the report was considered by Scrutiny Committee in August. The report’s recommendations are now being implemented as part of our “Brownfield First” Strategy. Scrutiny also received an update on the Brownfield Strategy in September which included potential bids for external funding to contribute towards work to develop a number of brownfield sites.

Together with a range of partners, we have established the Safer Stockport Town Centre Group. The aim of the Group will be to improve security and safety in the town centre and work to prevent and address antisocial behaviour in and around the Centre. This will include preparing for the opening of Redrock, where construction works are nearing completion. Remaining work includes drainage, signage, work to the rear of properties on Princes Street and fitting out of the units. It is scheduled to open to the public on 24th November.

Numbers of visitors to our museums have continued to increase, helped largely by the wide range of events, activities and exhibitions that have taken place, such as the Stockport Open Exhibition at Stockport War Memorial Art Gallery and Heritage Open Days at Staircase House.

Stockport Council is the lead authority “Get Digital Faster” programme. This aims to provide superfast broadband speeds to the areas of Greater Manchester that currently have poor broadband coverage. By the time the programme is completed, in March 2018, 99.3% of premises in Stockport will be able to access superfast broadband speeds.

Last, but not least, the first stage of consultation regarding Stockport’s Local Plan took place between 28th July and 8th October. A wide range of individuals and organisations took the opportunity to respond. Their responses are now being analysed and results will be reported in March 2018. That analysis will be used inform the next stage of the process, which is the preparation of a Draft Local Plan.

Cllr Kate Butler, Portfolio Holder for Economy and Regeneration

Revenue Budget (Forecast) Capital Programme

2 £000 Cash Limit 2,495 Outturn 2,495 £000 (Surplus)/Deficit 0 2017/18 Capital Budget 87,629 2018/19 Capital Budget 50,303 ‘Approved Use of Reserves’ Total 1,924 2019/20 Capital Budget 65,704 Utilisation of ‘Approved Use of Reserves’ 1,185 in the above forecast. ‘Approved Use of Reserves’ Balance 739

1. ECONOMY AND REGENERATION PRIORITIES, PERFORMANCE, RISKS AND OPPORTUNITIES

3 1.1. Priorities and Delivery Update

1.1.1. Inclusive growth

In order to inform the development of an approach an Inclusive Growth Framework for Stockport, two significant pieces of research work have been initiated and will take place over the next six to nine months. These are summarised below.

Work and Skills Commission The Stockport Work and Skills Commission will be a public debate focused on work, skills and local economy issues in Stockport. The Commission will involve Stockport businesses, employment providers, job seekers, those in low hours/low pay roles as well as education and skills providers in looking at data and evidence of what the main work and skills issues are and what the top priorities for action should be for Stockport. During November, officers will recruit an independent Chair for the Commission, after which a communication from the Chair and the Council will go out to the relevant business contacts and other stake holders to invite them to take part in the first Commission workshop planned to run in January. This workshop will mainly focus on the issues and needs of business in relation to work and skills, and how they can contribute to and support Inclusive Growth in Stockport. A second Commission workshop will integrate the work from the Poverty Insight Community Researchers to access the voice of those experiencing barriers to getting in to work or to increasing their hours and pay. A final Commission session with stakeholders from both workshops will inform the production of a list of priorities and an action plan that will be owned by a new Stockport Work and Skills Board created after the Commission’s work is completed. This Board will coordinate task and finish groups that will work on the issues identified in the action plan to try and achieve positive change in the issues and their impact. It is anticipated that the Commission will complete its work and will publish a report and action plan by May 2017

Poverty Insight This research aims to develop insight into the causes of poverty, understand the impact of poverty on life experiences, choices & chances, pull together an evidence base to inform the development of an Inclusive Growth strategy that responds to local need and to identify community and service solutions to financial exclusion.

It is proposed to use a community reporting approach that will support people in telling their stories, and then bring those stories to the people and services who need to hear them. The outcomes will be dependent on the resulting collective response.

This work will be managed by the Neighbourhood Inclusion team who will work with a third party to train a group of “Community Researchers” who will gather the data that informs the research. It is intended that the community research will begin during Quarter 3.

1.1.2. Business growth

Business Events The Stockport Business Summit “Your Stockport, Your Business, Your Future” was held in July with 97 attendees representing the local business community. The

4 event updated attendees on existing and future developments in Stockport. 95% of attendees felt the event presented them with new information.

The Team also supported two events led by the Business Growth Hub and organised a meeting for businesses on the Heaton Mersey Industrial Estate. The Green Growth Quick Wins workshop encouraged businesses to take advantage of support and advice regarding improving their energy efficiency. The Business Growth Hub lunch provided attendees with an overview of the range of support offered by the Growth Hub and an opportunity to network with likeminded businesses.

Business engagement The team engaged on a one to one basis with 29 businesses and an additional 160 through networking events and workshops organised by the team, despite reduced capacity. A contract to provide specialist support to food and drink businesses in the town centre was tendered, with work to start in Q3.

Digital engagement The Stockport Business Bulletin is currently emailed to over 5,700 local contacts with issues circulated in July and September.

Work began on redesigning and rewriting the business pages of the Council’s web site with a view to completion by the end of October. The new pages will present and promote Stockport’s offer to businesses in a much improved form.

Managed Workspace/SBIC Occupancy and demand has remained high for flexible office space although occupancy dropped slightly at Houldsworth Mill Business and Arts Centre. As the lease expired at Houldsworth Mill, the Growth team has been working over a period of several months to achieve a smooth handover of the facility to the landlord. This took place on 28th September. All tenants remain in situ as do all staff at the centre. Council support for new start businesses continues to be provided through Stockport Business and Innovation Centre (SBIC) and Merchants House.

Mill Strategy The Mills Strategy Review was completed and submitted to Scrutiny Committee in August 2017. The recommendations from this report are being taken forward as part of the wider Brownfield First strategy.

Brownfield First Development Programme An update report on progress on this programme was presented to Scrutiny on 21 September. This included the submission of expressions of interest and external funding bids to deliver the development of priority brownfield sites, commission of a Town Centre Living Development Framework and ongoing work to identify and progress suitable brownfield development sites.

Business investments Two local businesses undertook notable investments during the period following support provided by the team and associated colleagues (including Business Rates). Rowlinsons Knitwear purchased a 70,000 square feet unit at Crossley Park, Heaton Chapel, safeguarding 45 jobs and creating a further 20. Wheatley Plastics also acquired larger

5 premises, 20,000 square feet on Newby Road, Hazel Grove. The move safeguards 20 jobs and will create a further 10 positions. Although reported in last month's figures, Music Magpie relocated successfully into their new premises at Stockport Exchange during the quarter. Stagecoach will undertake their move during Q3.

Stockport Town Centre Management The final Portas Pilot funded project is nearing completion in the shape of a new “Old Town” website commissioned by the Portas Pilot Delivery Group which is due to go live in November.

The Council continues to support and work with the newly established BID (Business Improvement District) Totally Stockport. The Council’s collection rate on the BID levy has been exceptional which means that the BID is in a good financial position.

The Council leads on the organisation, co-ordination and promotion of a co-ordinated programme of town centre events including Foodie Friday, Vintage Village, Roughley’s Bike Show, the Classic Vehicle show, Heritage Open Day, the BIG Stockport Run and the Totally BIG Day Out. New “consent streets” have now been established following an extensive process of consultation. This means that events can now be staged across much wider areas of the town centre, albeit still carefully controlled and managed.

Plans are well advanced for Christmas with a programme of events across Merseyway, Princes Street, the Market Place and Redrock (including opening events), lighting projections at key points around the town centre, with festive trees and lighting switch on events, parking offer and communications campaign, across the borough as well the town centre.

A Safer Stockport Town Centre Group has been established, bringing together the Council, GMP, other support agencies and key town centre business representatives to improve security and safety in the town centre. An ASB audit has been carried out and an action plan co-ordinating measures is in preparation. A delivery plan has been prepared covering the arrangements for the opening of Redrock.

Stockport Place Marketing and Communications Creative Concern have been commissioned to develop and deliver a programme of place marketing and communications to reposition the image of Stockport town centre and convey the transformation taking place. An extensive programme of stakeholder engagement has been carried out, including the production of a short video, and further promotional material and proposals are in progress. An all member briefing on this work is currently being arranged.

Get Digital Faster Stockport Council is the lead authority in the £15m Get Digital Faster programme which is providing superfast speeds (over 24mbps) to those areas in GM that are currently slow and not covered commercially. Stockport has 72 fibre structures so far, providing superfast connectivity to 4,784 premises to date, with take-up currently around 32% which is above projection. The programme is set to be completed by March 2018, by which time Stockport will have 99.3% connectivity. This programme is helping to support business growth and productivity and runs in parallel with digital skills support.

1.1.3. Stockport Town Centre Regeneration

Marketplace/Underbanks

6 Work continues to bring forward a number of properties and sites for refurbishment and/or redevelopment. In August, Cabinet resolved to acquire Mansion House Chambers and 1- 3 Lower Hillgate (through use of Compulsory Purchase Powers if necessary) to support redevelopment for primarily residential purposes. Legal documentation between the Council and Lorus regarding the conversion of White Lion is now in place. Work to bring in new operators for Produce Hall and Blackshaws is in progress and will be reported to Members in due course.

Work is proceeding on the Stage 2 application for Townscape Heritage funding for “Rediscovering the Underbanks”, with the Townscape Heritage Manager now in post and a Heritage Open Day held on 9th September.

Merseyway CBRE, the Council’s asset managers for Merseyway, continue to balance retaining existing tenant, securing new tenants, and maximising rental income with the work to explore future redevelopment options. Exploratory discussions with potential new retailers are ongoing and inform the redevelopment options currently being worked up.

Aurora The first letting has now been secured and a further 3 lettings are close to legal completion. It is anticipated that 70% of the scheme will be let by practical completion of the construction.

Updates on Stockport Exchange and Redrock are in paragraphs 1.2.2 and 1.2.3 below.

1.1.4. Improving transport connectivity

Stockport Town Centre Access Plan (TCAP) Work on the TCAP phases 1 and 2a continues on site. The Phase 2b business case has now been approved as has the new bridge over the Mersey by the interchange. Consultation on the issues and options for the draft SEMMMS Refresh is also continuing as part of the local plan consultation.

A6 Closure Between 24th July and 15th October, a stretch of the A6 in Stockport Town Centre was closed to allow the safe completion of essential work to waterproof and re-joint the bridge deck, reconstruct the road & pavement and improve street lighting. A number of measures were introduced to minimise disruption. This included a robust communications plan/programme for all stakeholders before and during the works, gateway signage giving advance notice of road closures, devising and monitoring diversions and working with TfGM to encourage alternatives methods of travel to access the town centre during the closure. The road was reopened on 16th October – on schedule, within budget and without any formal complaints being lodged with the Council regarding the impact of these works.

1.1.5. Tackling youth unemployment As stated in 1.1.1 above, the Council is developing a Work and Skills Commission for Stockport to run through Q3 & Q4. This work will include a focus on youth unemployment as an issue and seek to explore with employers and skills providers what can be done to address this issue.

7 Stockport Jobs Fair took place on 23rd September and received the highest level of attendance by both employers and job seekers for several years. At least 730 job seekers attended, and over 40 employers participated, between them offering over 400 jobs. New employers at Redrock were a particular draw and succeeded in identifying a significant number of new potential employees. Feedback is being gathered from employers regarding numbers of jobs offered through the jobs fair.

1.2. Growth and Reform Programme Update

1.2.1 Museums and cultural attractions Stockport Museums have continued to attract higher numbers of visitors through a varied programme of events, activities and exhibitions. The total number of visitors for all sites in Q2 is 35,211. This has generated an income of £71,134. Q2 has seen steady visitor figures over the summer months for all sites with the exception of Hat Works where the number of overall visitors dipped as a direct result of the A6 road closure from late July. The Stockport Open Exhibition at Stockport War Memorial Art Gallery and Heritage Open Days at Staircase House led to an increase in visitor numbers at the sites. Visitor figures for individual sites for Q2 are: Air Raid Shelters (5693), War Memorial Art Gallery (4520), Bramhall Hall (4846), Chadkirk Chapel (1767), Staircase House/Stockport Museum (14587) and Hat Works (3798).

1.2.2 Stockport Exchange Phase 2: Construction and handover of Phase 2 office and hotel is complete and the scheme is both operational and fully let. Music Magpie has moved into the first floor of the office building, Cafelito opened on the ground floor in July, and Stagecoach are finalising their fit out of floors 2 to 4. The operating performance of the hotel has exceeded expectations.

Phase 3: Cabinet granted approval in August for the development of Phase 3 of Stockport Exchange (adjacent to the Phase 2 office building) and further work to develop proposals for Phase 6 (fronting the A6). Detailed designs are currently being worked up for Phase 3 with a view to submission of a planning application in November 2017.

1.2.3 Redrock Practical completion on the construction was awarded in mid-August. Completion of the remaining site works (including. drainage, signage, work to the rear of properties on Princes Street, and fit out of the units) is being carefully coordinated with TCAP highways improvements work and public realm works in order to ensure that opening can take place as scheduled on 24th November. Work to secure further lettings prior to opening continues and a number of potential deals have reached the stage where terms are being discussed.

1.2.4 Stockport Market A programme of enforcement has been launched to secure improved compliance with opening times in the Covered Market Hall. This has improved performance slightly, although there are a small number of traders who are non-compliant and appropriate action will need to be pursued. During Q2, the Market Place has hosted a number of one-off events which have helped boost footfall - Stockport Pride on Sunday 30th July and the Stockport Classic Car Show

1.2.5 Stockport Local Plan

8 Representations received to the online Local Plan Issues Paper consultation were 661 comments from 146 unique respondents. A total of 258 people attended consultation workshops organised in the 7 Area Committee areas with an average attendance of 30-40 per event. In total, 927 comments were received at the workshops. Detailed analysis of the consultation will be the subject of a future report in March 2018 and the result of the consultation will inform the next stage of plan making, i.e. the preparation of a Draft Plan.

The public consultation involved a number of strands of work in order to try to maximise the number, range and quality of consultation responses:

 Online consultation - The online consultations at www.stockport.gov.uk/localplan were designed to be more open and wider in their scope than previous versions of similar documents. This was intended to allow respondents to make their views known without being constrained by the questions.

 Reference copies in libraries – Physical reference copies were made available in local libraries for those who required or preferred to read paper documents.

 Accessible documents - The documents were prepared to engage the public by making them more accessible, minimising the use of technical jargon. The result should be to improve the quality of the final plans by ensuring that comments are captured that take relevant concerns and community aspirations into account at an early stage, well before firm proposals are in place.

 Extended consultation period - The difficulty of beginning to consult on the Local Plan through the summer holiday was recognised and so a longer period of consultation than the usual 6 weeks was agreed with the LDF Working Party, with formal consultation commencing on Friday 28th July and closing on 8th October 2017 (i.e. 10 weeks).

 Integrated consultation - The Local Plan Issues paper identified that the SEMMMS Refresh will be a key consideration in emerging Local Plan policies relating to transport and the Issues and Options paper focuses exclusively on Stockport at this stage with overlapping timescales between the two consultations.

 Communications plan – A communications plan to support the consultation was being delivered with a focus on digital and social media.

 Face-to-face public engagement – More than 20 face-to-face activities were delivered between August and October, including consultation workshops, awareness raising and public meetings.

1.3. Measuring Performance and Reporting Progress

PI Status

9 2017/18 actual / forecast is significantly below target

2017/18 actual / forecast is below target but within acceptable tolerance range

2017/18 actual / forecast is on or above target or within target range

Measures in bold are included within the Corporate Report.

An additional three indicators (set out in Appendix 1) are proposed for development during 2017/18. These will be included within future performance reports as and when they are fully developed.

Good 2016/17 2017/18 PI Code PI Name perform Quarter 2 Status Actual Forecast Target -ance Actual % Occupied managed workspace and incubator floor space actively E&R 01 High 81.0% 78.0% 82.0% 82.0% managed for start-up/micro- businesses Occupancy remained high over the summer months in all three centres, with Merchants House and Stockport Business & Innovation Centre achieving occupancy rates of 82% and 83% respectively in September. Work progressed during Quarter 2 to transfer Houldsworth Mill Business and Arts Centre to the landlord, Heaton and Houldsworth Ltd, which successfully took place on 28th September 2017. All tenants and staff at the centre remain in situ and the centre will continue to operate as a managed workspace facility. Please note: As the Council is no longer responsible for managing this facility, future reporting will not include occupancy figures for Houldsworth Mill. Footfall in Market Area: Change from Previous Year in Footfall (quarterly E&R 02 Positive -6.3% +1.0% figure will reflect change compared to -0.4% +1.0% the equivalent quarter in 2016/17) Overall like-for-like footfall to the Market Place is slightly down on the same period last year. Foodie Friday continues to perform strongly, but footfall to the regular market fluctuates and regular Friday footfall is still a major problem. This potentially provides an opportunity to trial a completely new Friday offer. Nevertheless as with Quarter 1, decline in footfall is not as sharply defined as in previous years. Proportion of occupied retail, E&R 09 commercial and business premises High 87.5% 91.7% 91.7% 87.0% (New) within the Merseyway Shopping Centre There has been a slight dip in occupancy from Quarter 2 with 10 units now vacant as opposed to 8 in Quarter 1. Negotiations are underway on 4 of those vacant units and the occupancy level should rise to around 95% in Quarter 3. Given that some of these lettings will be temporary over the Christmas period the full year forecast is revised to 91.7% in line with the Quarter 2 occupancy level. % of occupied retail, commercial and E&R 10 business premises within the High 93.5% - - 93.5% - borough's district centres This is measured annually and the 2017/18 figure will be available in Quarter 3. % of occupied retail, commercial Not E&R 11 and business premises in High 79.9% 80% 80.0% Available Stockport town centre Due to staffing capacity, it was not possible to undertake the September 2017 Stockport Town Centre survey. Data on the % of independent businesses are therefore not yet available for Quarter 2.

10 Good 2016/17 2017/18 PI Code PI Name perform Quarter 2 Status Actual Forecast Target -ance Actual E&R 12 Number of independent businesses in High 3161 Not 320 320 Stockport Town Centre. Available Due to staffing capacity, it was not possible to undertake the September 2017 Stockport Town Centre survey. Data on the number independent businesses are therefore not yet available for Quarter 2. Square feet of office, retail and E&R 13 industrial space let or sold to new High 796,436 304,500 800,000 800,000 occupiers The figure shown is cumulative for the year to date and includes new occupiers of space in office, industrial and retail units across the borough. Lettings during Quarter 2 include Advanced Laser Technology moving into 13,900 square feet, Rowlinsons expansion into 67,100 square feet at Crossley Park, Wheatley Plastics relocating to 27,000 square feet in Hazel Grove and discount store Wilko taking 8,200 square feet of retail space at the Peel Centre. Anticipated lettings in Quarters 3 and 4 (e.g. at Redrock, Aurora, Orbital 1) indicate that this indicator will be back on target later in the year. Square feet of office, retail and E&R 13a industrial space let or sold to new High 188,843 67,783 250,000 250,000 occupiers in Stockport Town Centre The figure shown is cumulative. Town centre lettings recorded in Quarter 2 were all retail, the largest of which was Wilko in the Peel Centre (40 jobs in 8,200 square feet. Anticipated lettings in Quarters 3 and 4 (e.g. at Redrock) indicate that this indicator will be back on target later in the year. Net number of business start-ups - E&R 14 High 420 - - 450 - i.e. business ‘births’ minus ‘deaths’ This information is produced annually (in November) within an ONS report and relates to the previous calendar year. It is likely therefore that information relating to 2016 will be reported in Quarter 3. 2016 was a relatively strong year for businesses and the target reflects this. Business start-up survival rates E&R 15 High 61.1% - - 63% after 3 years (%) This information is produced annually (in November) within an ONS report and relates to the previous calendar year. It is likely therefore that information relating to 2016 will be reported in Quarter 3. Number of FTE jobs created in E&R 16 relation to floor space let or sold to High 2009 623 2000 2000 new occupiers. This is an estimate of jobs created to date (in Quarters 1 and 2) as a result of investment, based on knowledge of new occupiers and size of investment. Jobs created in Quarter 2 included 17 at Advanced Laser Technology, 40 at Wilko, 20 at Rowlinsons and 10 at Wheatley Plastics. It is anticipated that this indicator will be closer to target when Redrock opens during Quarter 3. % of unemployed 16-24 year olds in E&R 17 Low 3.4% 3.5% 3.4% 3.1% the borough The rate for this age group has been slowly increasing and the reasons for this are not currently clear. The September Jobs Fair had significant employment opportunities for this age group and there was a large attendance by the public. The Redrock employers were present at the Jobs Fair and we should see some improvement in this figure in the next quarter as younger people get into the new job roles on offer as well as the seasonal increase in retail and hospitality jobs.

1 The figure in the 2017/18 Economy and Regeneration Portfolio Agreement was 326. This figure has now been corrected to 316 and the target has been adjusted from 330 to 320. 11 Good 2016/17 2017/18 PI Code PI Name perform Quarter 2 Status Actual Forecast Target -ance Actual

E&R 18 % unemployment overall (16-64) Low 4.2% 4.5% 4.4% 4.0% (New) This indicator is showing a slow increase in the number unemployed. The reason for this is not currently clear. Economic conditions continue to be stable and the new job opportunities at Redrock and across some additional retailers such as Wilko will provide additional jobs to reduce this figure in the next quarter. The September Jobs Fair had significant employment opportunities available and there was a large attendance by the public. The Redrock employers were present at the Jobs Fair and we should see some improvement in this figure in the next quarter as people get into the new job roles on offer as well as the effect of the seasonal increase in retail and hospitality jobs. Number of visits to Stockport’s E&R 19 High 122,799 35,211 125,000 125,000 museums

Stockport Museums have continued to attract higher numbers of visitors through a varied programme of events, activities and exhibitions. The total number of visitors for all sites is 35,211.

12 1.2 National and Regional Policy Drivers

Brexit

New Economy works on behalf of Greater Manchester Combined Authority and the GM Local Enterprise Partnership to promote economic growth and prosperity. Each month it produces the “Brexit Monitor”, an update on the key economic and policy developments in relation to Brexit. The key economic trends reported in the latest Brexit Monitor are summarised below:

 UK economy is continuing to grow, but there are impending challenges to inflation, productivity growth and continued uncertainty.  There is evidence of manufacturing growth in new orders and employment, but manufacturers are continuing to report significant rises in input prices (due to a weaker pound) and reports of increased supply-chain pressures.  UK’s services sector activity picked up during September, however growth in new orders for the year ahead were at their slowest pace since August 2016. Evidence suggests it is large firms experiencing this growth rather than Small and Medium-size Enterprises (SMEs) and micro-size firms.  UK productivity growth remains an underlying challenge – it is currently falling and continues to lag behind major economies such as US, France and Germany.  Unemployment in GM is now slightly higher than that seen prior to the referendum.

Implications of the UK’s decision to leave the EU remain unclear. MPs began considering general principles of the EU (Withdrawal) Bill at the Second Reading on September 7. This will convert all existing EU laws into domestic ones. The fifth round of negotiations between the UK Government and the EU has begun, focusing on technical issues. This will be the final set of talks before EU leaders meet on 19th October to decide if enough progress has been made to begin talking about post- Brexit relations with the UK (on 4th October the MEPs voted to urge the EU not to open the next phase of Brexit talks unless there is a "major breakthrough").

The UK government however appears to be seeking a transitional arrangement for the period immediately following the UK exit from the EU. Decisions have yet to be made on the UK’s financial settlement but some progress has been made on the status of frontier workers who travel cross-border regularly for work, the immunities and privileges of EU & UK public officials after Brexit and confidentiality rules around shared documents.

In early October the “Brexit Secretary”, David Davis, met the Northern Combined Authority Mayors (including Andy Burnham) to discuss the region’s priorities for EU exit. It was agreed that there would be ongoing Ministerial engagement with the Mayors, and that joint working groups would be established to assess the implications of Brexit options for sector and businesses in the North, and examining the powers returning to the UK which could be devolved beyond Westminster.

The Government paper “Collaboration on science and innovation: a future partnership”, published in September 2017, acknowledges the significance of science, research and innovation to the wider economy, and a desire that the UK look to design a set of relationships post-Brexit that are as open as they can be to support international collaborations.

13 Greater Manchester Strategy (GMS) The refreshed GMS was approved by GMCA in July 2017. It sets out ten priorities, four of which relate directly to the Economy and Regeneration portfolio. They are:

 Good jobs, with opportunities for people to progress and develop.  A thriving and productive economy in all parts of Greater Manchester.  World class connectivity that keeps Greater Manchester moving.  A green city region and a high quality culture and leisure offer for all.

An implementation plan (and associated performance dashboard) are currently being developed and it is intended that they will be approved by GMCA at its meeting on 27th October meeting and that the GMS itself will be launched publicly immediately after that meeting. Locally, Stockport Council has anticipated the GMS and the development of local plans, strategies and policies has informed, and been informed by, development of the GMS on an on-going basis.

Greater Manchester Spatial Framework (GMSF) More than 27,000 responses were received as part of the initial consultation into the first draft of the GMSF. The consultation responses have now been published. Work is now being done to produce a second version of the plan which will take into account the concerns raised, through a process that will remain open and transparent. The redrafted spatial framework will aim to make the most of Greater Manchester’s brownfield sites and reduce the impact on greenbelt. The second draft of the plan will be developed in 2018, with a view to publication in June 2018. Following publication of the draft plan, there will be a 12-week public consultation.

GM Employer Engagement Framework An Employer Engagement Framework was approved by GMCA in July 2017. Work plans that address five key priorities have now been drafted and policy leads for each of the priorities have been appointed. The plans will be presented to GMCA at its meeting on 27th October for Leaders to note and review. Thereafter, policy leads will monitor and feedback on progress against their actions. The five priorities are:

 Priority 1: Businesses engage with schools and colleges inspiring young people and adults to raise aspirations, explore careers and gain meaningful experience of the world of work.  Priority 2: Employers are able to invest in developing their workforce (including via Apprenticeships) and work with GM to ensure the skills offer meets their needs.  Priority 3: Businesses are supported to connect unemployed GM residents (particularly those with long-term health conditions) to the job opportunities they create and support them to stay in work.  Priority 4: Businesses are able to create and maintain healthy GM workplaces which support workers to thrive, reduce sickness absence and improve productivity.  Priority 5: Businesses will use their procurement power and supply chains to deliver social value

Locally, the Council and its partners will need to ensure that is appropriately linked to the work of the Inclusive Growth Work and Skills Commission which will begin during Quarter 3 (see 1.1.1 above).

14 GMCA Cultural Fund Programme and Governance Consultation has been undertaken across GM relating to the proposed closure of the AGMA Section 48 grants fund and the introduction of a new GMCA Culture and Social Impact Programme. Stockport Council responded to the consultation, which found broad support for the proposal to close the Section 48 programme as long as it is replaced - and the proposed programme was considered a suitable alternative. Criteria relating to the new programme were supported, but more clarity was sought on how delivery will be assessed, monitored and evaluated.

A call for projects to be funded from this source begins in October 2017 and the new programme will go live from April 2018. Over the next few months relevant officers from GMCA will work with the lead culture officers in the 10 GM districts to plan for the delivery of the new scheme. No organisations from the Stockport area have been funded under the previous grant schemes – the Council will therefore be seeking to ensure that there is a diversity of smaller, socially-orientated organisations in the portfolio, as well as the major clients.

A report to GMCA in September proposed a governance structure for the GMCA Culture, Arts & Leisure portfolio to ensure delivery of portfolio responsibilities. Briefly this will be through the creation of a GM Culture, Arts and Leisure Steering Group which will report to GMCA. Local authority cultural portfolio executive members will be on this Group.

1.3 Portfolio Risks This section provides a comprehensive update against risks identified within the Portfolio Agreement during the first half of the year. Details of the some of the projects and activities which are helping to mitigate the Portfolio risks are also included in the Priorities and Delivery update in Section 1.1 of the report.

Risk Description Update on controls and mitigating actions E&R 01 – Loss or reduction The potential impact of Brexit and the relevant timings for loss in funding via EU (e.g. of EU funding or any successor funding remain unclear. The European Social Fund Council will continue to monitor the situation and look for (ESF) due to impending alternative funding sources. Brexit. Initial discussions with employer groups about their involvement in the Council's Inclusive Growth work, particularly the Work & Skills Commission have been positive and well received. E&R 02 – Government and The Council continues to contribute to the development and GM employment procurement of the new GM Work & Health programme to be programmes do not implemented in Stockport. effectively reach those in most need of support, e.g. The Centre for Better Ageing research on barriers to people in priority employment for the over 50s that took place in Brinnington is neighbourhoods. being developed into follow up actions. E&R 03 – Managed Regular monthly meetings held with managing agents, workspaces and business monitoring monthly budgets and occupancy rates. Also dealing incubator facilities become with property and tenant issues. Working towards handing over financially unsustainable. Houldsworth Mill as an ongoing entity to the landlord. Proposals to subdivide unlet large unit being progressed to ensure financial sustainability of SBIC

15 Risk Description Update on controls and mitigating actions E&R 04 – Income Performance against income targets is closely monitored with generated through charges services promoted to maximise take-up along with timely falls short of levels recovery of charges. Opportunities for external funding required to maintain continue to be researched. current service.

E&R 05 – Flawed decision- Data is collected on an ongoing basis to inform the leisure and making relating to cultural offer, along with close performance monitoring of Life museums and other Leisure. Customer and complaints data is also reviewed cultural facilities based on regularly, with surveys conducted to supplement this. management information that is inaccurate and/or lacks reliability or validity.

E&R 06 – Insufficient Brownfield First development programme ongoing. This work brownfield land identified aims to identify and bring forward maximum brownfield sites for for development as it is development. The Mills Review has now been completed and unviable for development an action plan prepared and being progressed through the or unattractive to the Brownfield First work. market. E&R 07 - Planned Developer Engagement and Monitoring post currently on hold developments are not as Central Government has delayed implementation of uplift in delivered on time. fees.

Development Tracker has been progressed and will be implemented shortly. E&R 08 – Delays occur in Ongoing work to ensure processes and procedures are the planning process. reviewed.

Additional checking of reports to ensure that they are consistent and sound.

Provision of additional pre-application capacity currently on hold due to the delayed implementation of the uplift in planning fees. Management of the pre-application process is being reviewed in the meantime. E&R 09 – Provision of Performance frameworks have been developed with key services from third parties partners (such Marketplace Management and Life Leisure) does not fulfil which are monitored on a monthly basis. expectations. E&R 10 - Financial and The change of completion date for A6MARR has been reputational damage to the announced and additional specialist resource has been Council resulting from procured to monitor the ongoing contractors programme. This delays in the delivery of support includes additional resources to work with the utilities major infrastructure to ensure programmes are coordinated. projects.

16 2. ECONOMY AND REGENERATION FINANCIAL RESOURCES AND MONITORING

2.1 Revenue – Cash limit

Previously Increase Reported (Reduction) Revised (PPRR) £000’s £000’s £000’s Cash Limit 2,576 (81) 2,495

2.1.1 The Portfolio cash limit has decreased by £0.081m. This is due to the transfer of staffing to Strategic Housing and the centralisation of telephony budgets.

It is forecast that the Economy & Regeneration Portfolio will outturn with a balanced budget. There are pressures in the portfolio in the Planning and Markets areas both in relation to income generation, but forecast surpluses in other areas of the portfolio mean that the portfolio is expected to balance.

2.2 Earmarked Reserves The majority of earmarked reserves are now kept at corporate level. The table below sets out the commitments of this portfolio which have been approved for 2017/18.

Planned use of Balance of Reserve / Reserves / Reserve / Reserve Approved Use “Approved Reserve Narration To be used for “Approved Category Balance at Q1 Use” Use” £000 2017/18 £000 £000 Directorate Reserves Directorate Directorate Flexibility Markets 21 21 0 Reserve Reserve - Place Management Directorate Directorate Flexibility Town Centre 100 100 0 Reserve Reserve - Place Living F&B Sector Directorate Directorate Flexibility Development 40 40 0 Reserve Reserve - Place Support Corporate Reserves Legislative and Development of a Corporate Statutory new Local Plan 439 233 206 Reserves Requirements approved by the Reserve Executive Reserve Transformation - Markets Linked to Invest to Save 75 75 Consultation Budget Reserve

17 Reserve Transformation - Aurora additional Linked to Invest to Save 15 15 planning support Budget Reserve Reserve Transformation - Regeneration Linked to Invest to Save 71 21 50 Projects Budget Reserve Reserve Transformation - Linked to Invest to Save HLF Bramall Hall 242 144 98 Budget Reserve Strategic Capital Programme Redrock Scheme Priority 109 109 Investment Reserve Legal Fees & Costs Reserve Strategic Capital Programme Walking & Cycling Priority 36 36 Investment Reserve Projects Reserve Strategic Stockport Place Capital Programme Priority Marketing and 150 150 Investment Reserve Reserve Communications Strategic Capital Programme Priority Flood Investment 626 626 0 Investment Reserve Reserve Strategic Capital Programme Interchange and Priority 500 100 400 Investment Reserve College Feasibility Reserve Strategic Capital Programme Stockport Priority 97 97 Investment Reserve Exchange Phase 3 Reserve TOTAL 2,521 1,285 1,236

2.3 Portfolio Savings Programme The Council’s savings programme was agreed by the Council Meeting as part of the 2017/18 Budget on 23 February 2017. The Portfolio contributed £0.059m to the Council’s savings for 2017/18.

The portfolio savings within the Council’s overall approved programme are detailed in the table below with a risk assessment on progress to date and a progress commentary.

2017/18 Project Progress at Q1 £m Risk Rating Staff Travel (including The forecast suggests this will be 0.019 Green Essential User) achieved. Saving The forecast suggests this will be Staff Overtime 0.005 Green achieved. 2017/18 0.035 Green Achieved. Superannuation TOTAL 0.059

18 Risk rating  Green – good confidence (90% plus) the saving is/will be delivered or minor variances (<£0.050m) that will be contained within the portfolio.  Amber – progressing at a reasonable pace, action plan being pursued may be some slippage across years and/or the final position may also be a little unclear.  Red – Significant issues arising or further detailed consultation required which may be complex/ contentious

2.4 Capital Programme

2.4.1 The Capital Programme for 2017/18 is £87.629m. It includes the following schemes, progress against which is reported in section 2.4.4. A breakdown of the resourcing of the Capital Programme is shown in section 2.4.2.

The table below highlights the key schemes in the programme:

*Expenditure 2017/18 2018/19 2019/20 as at Scheme Programme Programme Programme 30 Sep 2017 £000 £000 £000 £000 Highways 290 Street Lighting 560 560 331 LTP and SEMMMS Integrated 305 1,960 1,000 0 Transport 49 Highways Structures 443 443 704 Stockport Town Centre Structures 1,530 3,238 0 0 A6 Viaduct Stockport Town Centre Structures 17 400 2,213 1,337 Merseyway 15,729 SEMMMS Relief Road 29,807 10,661 34,087 307 Section 278 schemes 2,000 2,000 2,000 200 Drainage 300 300 300 Studies and Transport Minor 21 30 30 30 Schemes 0 Air Quality Grant 101 0 0 1 PROW 60 60 60 Flood Damage Infrastructure 265 788 0 0 Programme 100 Pot Hole Programme 213 0 0 11 District Centres 200 200 200 0 Road Safety Near Schools 200 100 100 43 Interchange Bridge 1,081 2,673 0 Stockport Town Centre Access 6,785 14,208 14,226 11,387 Plan 5,600 Highways Investment Programme 11,582 12,506 12,668 31,253 Highways sub-total 67,171 46,972 63,204

Non-highways 3 Stockport Exchange (Phase 2) 422 0 0 Portas Pilot Bid match-funding (PIF 4 8 0 0 2012/13)

19 8,336 Redrock Development Scheme 15,186 0 0 Aurora Stockport (formerly Gorsey 3,620 3,642 0 0 Bank) 163 Markets and Underbanks 1,200 1,938 2,500 0 Brownfield Site Schemes 0 1,393 0 12,126 Non-highways sub-total 20,458 3,331 2,500

43,379 TOTAL 87,629 50,303 65,704 * This relates to expenditure on SAP and accruals for goods received or work performed up to the period end.

2.4.2 Capital Finance Update and Outlook

2017/18 2018/19 2019/20 Resources £000 £000 £000 Capital Grants 53,378 33,176 42,986 Directly Funded Borrowing 18,697 1,938 3,525 Unsupported Borrowing 12,876 11,736 15,093 Capital Receipts 31 1,003 0 Commuted Sums 2,000 2,000 2,000 Revenue Contributions (RCCO) 647 450 2,100 TOTAL 87,629 50,303 65,704

2.4.3 Capital Programme Amendments

2017/18 2018/19 2019/20 Funding Scheme Reason £000 £000 £000 Source Change to show Highways Structures (300) (300) 0 Grant match funding Stockport Town Centre 2,738 (2,500) 0 Grant/USB Virement for match Structures A6 Viaduct Grant Stockport Town Centre 400 2,213 1,337 Grant/RCCO Awarded/Virement Structures Merseyway for match Correction to Road Safety Near Schools 0 0 90 Grant programme Correction to Interchange Bridge 0 358 0 Grant programme Rephasing to reflect Interchange Bridge (1,915) 1,915 0 Grant detailed programme Rephasing - overall Stockport Town Centre Grant / (3,031) 198 463 programme has not Access Plan Borrowing changed Highways Investment Change to show (300) (63) (137) USB Programme match funding Rephased to Brownfield Site Schemes (390) 390 0 Grant 2018/19 Capital Rephased to Brownfield Site Schemes (1,003) 1,003 0 Receipt 2018/19 TOTAL (3,801) 3,214 1,753

20 2.4.4 Progress with Individual Schemes

Street Lighting Planned Programme This programme includes the structural replacement or repair of columns that are reaching the end of their life. Columns are identified for replacement or repair following routine structural assessment and testing. All lighting columns on the network have been structurally assessed and a programme of illuminated sign pole testing is underway. The information is being used to develop whole-life modelling of street lighting assets across the network. Approximately 50% of the programmed work has been completed.

LTP and SEMMMS Integrated Transport Programme The funding for this programme comes from the Greater Manchester Local Transport Plan 3 (GMLTP3), developer funded schemes and successful individual scheme bids and aims to improve transport networks and facilities in accordance with the Greater Manchester Local Transport Plan and South East Manchester Multi Modal Strategy (SEMMMS).

Funding has also been secured as part of Transport for Greater Manchester bids for Growth Fund 3. A number of local safety schemes have been designed and are programmed for completion in Quarters 3 and 4.

Integrated Transport Corridors The A6 Viaduct is being strengthened and waterproofed in 2017/18 to mitigate disruption to the development of the proposed Interchange and other Town Centre developments.

Cycling, Walking and Safety Schemes  The majority of the £2.2m CCAG 2 schemes have progressed into detailed design and work will start on site in the Ladybrook Valley between Demmings Road and Ladybridge Road in Quarter 3;  Design for the GMCRP safety related works on Crookilley Way have commenced;  Improvements to walking and cycling facilities in the Goyt Valley are being implemented with construction work to Dark Lane and Half Moon Lane almost completed. Construction works are due to start on Otterspool Road.

SEMMMS A6 to Manchester Airport Relief Road Work is ongoing by Stockport Council Highways on the development of a package of mitigation and complementary measures for the A6MARR; with the package of mitigation measures to be implemented by Stockport Council in 2017/18 Quarters 2-4 prior to road opening. Priority has been given to a significant package of mitigation measures for High Lane which have all been consulted over including:  A new pedestrian crossing of the A6 near the Church which has been completed;  Traffic calming on Andrew Lane which has been completed;  Weight and speed limit changes which have become operational;  Traffic Calming on Windlehurst Road which is being constructed;  Quiet Lane measures on Threaphurst Lane and Torkington Lane / Road which will be constructed in Quarter 3;  Property is being acquired for the improvement to the A6/Windlehurst Rd junction with works to start on site in Quarter 4;  Cycle lanes along part of the A6 are in development;

Mitigation measures for Gilbent Road, Cheadle are in detailed design.

21 Complementary measures for Bramhall and Heald Green have been consulted over and will be reported to Committee in Quarter 3.

Complementary measures for Hazel Grove are being developed and will be subject to consultation in Quarter 3.

A bid has been prepared and submitted to the DfT’s National Productivity Investment Fund (NPIF) for improvements to the M60 Junction 2 (Roscoe’s) roundabout.

Highways Structures The funding for the Highway Structures programme comes from the GMLTP3 maintenance allocation and its aim is to inspect, maintain and replace highways structures including bridges, retaining walls and steps as necessary.

360 General Bridge Inspections & 60 Principal Bridge Inspections have been programmed for completion in 2017/18.

In 2017/18 six capital projects are programmed for completion including:  CLC Railway Bridge - Parapet Repairs;  Cheadle Lane Culvert – Watercourse Diversion;  Broadway Culvert - Confined Space Entry Repairs have been programmed;  Councillor Lane Culvert - Confined Space Entry Repairs have been programmed;  Manchester Road Culvert - Confined Space Entry Repairs have been programmed;  Hillcrest Road Culvert - Confined Space Entry Repairs have been programmed.

Stockport Town Centre Structures There are two main structures in this programme. They are shown below with their current status:  Wellington Road (A6) Viaduct – Waterproofing which was completed by mid October 2017, with ancillary works to the footways and arches to be completed over the next few months without a full road closure required;  Merseyway – Waterproofing Business Case being progressed in parallel with detailed design.

SEMMMS A6 to Manchester Airport Relief Road The Carillion/Morgan Sindall joint venture is now approximately 30 months into the construction programme for the delivery of the A6 to Manchester Airport Relief Road. Work commenced on site in spring 2015. Work is progressing on highways and minor and major structures at locations along the length of the scheme, and scheme opening is scheduled for spring 2018. The next Councillor briefing session in December 2017 will follow the public exhibitions scheduled across November 2017; updates on progress and responses to address relative queries and concerns will be provided at these communications events.

Work is ongoing by Stockport Council Highways on the development of a package of mitigation and complementary measures for the A6MARR – see “LTP and SEMMMS Integrated Transport Programme” scheme above.

22 Section 278 Schemes  Funding is obtained from developers as part of a planning consent either as a commuted sum under Section 106 of the Planning Act or for defined off site highway works under Section 278 of the Highways Act;  S106 Public Rights of Ways for Redrow at Woodford and Bellway on the former Mirlees site are being developed;  Design has been completed for highway alterations to facilitate development of residential units off Hibbert Lane, Marple;  Construction has commenced for highway alterations to facilitate a new Lidl store off Hempshaw Lane, Offerton;  Design has been completed for highway alterations to facilitate a residential development by Stockport Homes off Stockport Road East, Bredbury;  Detailed design has commenced for highway alterations to facilitate a development off Brighton Road, Heaton Mersey;  Highway mitigation works are being carried out for a number of school expansions;  Works have been designed to mitigate traffic impact from the Stockport Sports Village at Hyde Road / Mill Lane and will start on site in Quarter 3 of 2017/18;  Construction works for the Barnes Hospital redevelopment have been delayed whilst a decision by the Developer about diversion of a gas main is made;  Detailed design for the access to Stanley Green Retail Park has been completed with the construction works to be completed by the A6MARR Contractor, CMS;  Feasibility design for alterations to the highway network to facilitate the development of Cheadle & Marple College is progressing;  Feasibility design for alterations to the highway network to mitigate the impact of development on local roads in association with redevelopment of the former BAE site, Woodford by Redrow Homes is progressing.

Drainage – Flood Risk Management In 2017/18:  The LLFA statutory role for major planning applications is ongoing and standardised advice has been provided to assist this process;  The drainage asset management system is continuing to be developed and a GIS Officer post is currently being advertised to support this;  The Communications Strategy is continuing to be developed and the Council has been working with the Environment Agencies partner, Newground, in Cheadle to promote the flood alert warning system;  Drainage investigation and repair works are continuing to be completed as part of the Highway Investment Programme in advance of planned road reconstruction works;  Highway drainage investigation and repair works are continuing to be completed on behalf of Public Realm on a routine and reactive basis across the Borough;  Watercourses/Trash Screens continue to be inspected/cleared on a priority basis;  Cheadle Hotspot - Phase 4 is being undertaken by the Environment Agency;  Feasibility designs have commenced for the June, September and November 2016 Flood events.

23 Studies and Transport Minor Schemes The town centre car parking study has been completed and a report has been prepared for Scrutiny Committee.

Air Quality Grant

Stockport is participating in the development of a Greater Manchester approach to resolving the air quality issues identified in the latest government strategy.

Public Rights of Way

The Public Rights of Way Capital allocation for 2017/18 was initially aimed at undertaking improvements on PROW bridges. However, part of the fund has been reallocated to undertake extensive surface and drainage works on Footpath 36 (Marple) to address concerns raised by the local Rambler Association and Peak & Northern Footpath Society.

Further work to replace a footbridge on FP52 Bredbury and Romiley is planned.

Flood Damage Infrastructure Programme The feasibility studies for the June 2016 flood repairs have been completed. Detailed design for Highways; Highway Structures; Greenspace; and PROW have all commenced.

Construction works have been completed within Torkington Park.

Construction works are nearing completion for Happy Valley and Marple PROW 41.

Construction works have been programmed for Green Lane.

Construction works have been programmed for PROW’s 158,159 & 161.

Pot Hole Programme Highway safety inspections have identified roads with higher numbers of actionable defects that are in need of programmed repair. This programme was developed to attend to these sites by resurfacing stretches of highway. All approved schemes are on course to be delivered ahead of schedule.

24 Centre Improvements

Works were started in Quarter 4 on Heaton Moor Road/Shaw Road and are being finalised at the close of Quarter 2 2017/18.

A study has been commissioned to determine what improvements to the operation of the highways and public realm may be appropriate in Marple Centre. This work has now started, with surveys and modelling being undertaken to assess the current situation.

Road Safety Near Schools All 20 priority schools sites have been visited and audited and a package of works is being drawn up for implementation. The audits have included checking signage and lining, footways, paths, crossing points, parking issues, disabled access, lighting, cycle routes and parking. Recommendations have been made about, but not limited to, new crossing facilities, access points and widening footways. As each school site is different, a solution at one location may not be appropriate for another and consequently a bespoke approach will be taken.

Publicity materials promoting safe journeys to school have been distributed and additional enforcement action has been taken in the vicinity of school entrances to coincide with the start of the new school year.

Interchange Bridge The Stockport Interchange Bridge crossing provides a new bridge across the River Mersey, joining Swaine Street to the south with Astley Street to the north. The purpose of the bridge is to provide a two-way link for buses, taxis, cyclists and pedestrians with access to and from the A6 to the Interchange via Heaton Lane. In a southbound direction, the bridge will be accessible to general traffic. The bridge will effectively enable the pedestrianisation of Mersey Square and the associated rerouting of bus services across Stockport town centre, once the full Interchange is completed.

The construction contract was awarded to Geoffrey Osborne Ltd. on the 4th October 2017 and the site works are scheduled to commence in February 2018 for 6 months.

Stockport Town Centre Access Plan This programme of works is part of the Investing in Stockport Programme and is to address the difficulties of navigating to and around the town centre. It was awarded funding as part of Greater Manchester Growth Plan. The scheme is comprised of two phases of delivery 2015-2017 and 2017-2020. Full Business Cases for all phases of works have been approved by TfGM and Greater Manchester Combined Authority, albeit the Delivery Agreements relating to Phase 2A and Phase 2B still require to be signed off by all parties. The approvals of the Full Business Cases have confirmed release of the full £73.2m of funds to Stockport Council for delivery of the full programme of STCAP works.

Work continues to be progressed on a number of key schemes, including: - Princes Street / Bridgefield Street Public Realm works for Redrock; - Highway works on St Mary’s Way to re-commence when A6 re-opens i.e. from mid- October 2017. 25 John Graham Construction has been confirmed as the main contractor for the scheme 801:Travis Brow scheme, and the main works are scheduled to commence early 2018 with an Early Works Package having commenced in September 2017.

A number of key Phase 2 schemes are scheduled to commence over the next quarter being: - Scheme 303: King Street / Gradwell Street gyratory - Scheme 402: Knightsbridge - Scheme 502: M60 Junction 1 / Hollywood Way - Scheme 507: Didsbury Road / Brighton Road junction access These key Phase 2 schemes referenced above will be delivered with the Council’s Alliance Framework contractors.

Highways Investment Programme This is Year 4 of the £100m Highway Investment Programme (total 9 year delivery programme). All sites have been scoped in the targeted ward areas and schemes are progressing well. The preventative footway and carriageway work started early in the year and is ahead of schedule. The 2017/18 HIP programme is approximately 50% complete.

A video survey identifies treated areas of highway (HIP delivered work) and provides an indication of the level of deterioration on the remaining part of the network. The condition data is used to compare the delivery outcome against the agreed target. Recent performance figures show that the footway and carriageway network is improving in line with the investment.

The funding for this programme comes from the Greater Manchester Local Transport Plan 3 (GMLTP3) and prudential borrowing. The aim is to maintain and improve transport networks and facilities in accordance with the Greater Manchester Local Transport Plan and SEMMM Strategies.

Stockport Exchange Phase 2 Phase 2 of the Stockport Exchange scheme (incorporating Office building and Hotel) was granted Executive Approval on October 1st 2013 (ED1548).

The offices completed in October 2016 and final possession of the public realm and hotel took place in December 2016. The hotel opened on the 19th December 2016 trading as a Holiday Inn by Express and is trading very successfully.

The office building is now fully let. Sainsbury’s commenced trading last year, Cafelito opened on 4th July 2017 and Music Magpie completed their fit out in August 2017. Stagecoach who have the top three floors will complete their fit out in November 2017.

The remaining allocation of £0.422m will be utilised in the early part of 2017/18 for incidental costs and retention/snagging costs.

26 Portas Pilot Bid match-funding (PIF 2012/13 Scheme) As a Portas Pilot, Stockport secured £0.100m funding, plus £0.100m Council capital match funding and £0.100m High Street Innovation funding, with £0.088m of the capital allocation having been spent by 2015/16 leaving £0.012m available.

At the end of 2016/17 a balance of £0.008m remained and was carried forward into 2017/18. At the beginning of the year discussions were concluded with representatives from the Portas Pilot Project Delivery Group on how they wanted to use these remaining funds. The Council initially expected that all remaining expenditure would occur by the end of Quarter 2 of 2017/18, however, whilst there has been some progress on the Group’s project, they have been unable to meet a number of agreed terms & conditions and this has delayed releasing some of the capital. The Group has been notified by the Council of these concerns and, subject to the Group complying with the agreed terms & conditions, it is anticipated that all remaining expenditure should occur by the end of Quarter 3 of 2017/18.

Redrock Stockport Development Scheme The Redrock leisure led development scheme (incorporating Multi-screen Cinema, Multi- Storey Car Park, and Retail and Food and Beverage units) was granted Executive approval on December 17th 2013 (ED1447).

The anticipated total cost of the Development is £48.508m. However, elements of the overall scheme (including Public Realm and A6 right turn) will be funded by the separate Town Centre Access Package (TCAP) scheme, thereby reducing the scheme sub-total to £39.348m, of which £1.700m relating to the Spiral Ramp will be funded corporately. The planning applications were approved in January 2015, with initial enabling works commencing in April 2015. These will continue under the TCAP programme.

Practical completion was delayed by 4 weeks but the overall programme remains robust with openings in late November 2017 following fit out and TCAP works completion.

Lettings have become much more difficult over the past 6 months and negotiations are slow.

An agreement for lease was signed with Light Cinemas in August 2014, with Zizzi’s and Pizza Express in January 2016 and with GBK in late September 2016. A coffee shop (Mangobean) signed in February 2017 for Unit 5 but the franchisee withdrew. A revised offer for a Mangobean franchise is currently being considered, and there is potential that an offer from a wine bar operator might be forthcoming.

Units A and B are under offer to a gym operator following the withdrawal of Jump, whilst Unit C is under offer to Loungers and there is also interest in Unit 4. However, GBK are trying to avoid opening Unit 6 given the capital restraints they now find themselves.

The cinema is due to open in November/December 2017 although this is dependent upon the TCAP works allowing possession and fit out.

With the scheme due for completion in 2017/18 it is envisaged that the allocation of £15.186m will be spent by the end of the current financial year, albeit there will be a retention.

27 Aurora Stockport (formerly Gorsey Bank) The full business case was approved in August 2015. A revised planning application was submitted in October 2015 for 154,000 sq. ft. (approx.) of predominantly B2/B8 and employment space. This was approved in January 2016.

A tender from Seddons was accepted in February 2016 and the contract was executed in May 2016. Completion is expected in October 2017 on the majority of the scheme with unit A being completed in November 2017.

Early market interest in the development remains positive and terms have been issued on all but 30,000 sq. ft. It is likely that the construction budget will be exceeded which may impact on the overall value (NPV) of the scheme, however this will not be confirmed until the lettings are completed, as a more successful letting process than that originally envisaged may offset the capital overspend.

With the scheme due for completion in 2017/18 it is envisaged that the allocation of £3.642m will be spent by the end of the current financial year.

Markets and Underbanks 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 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.

The phasing of the expenditure is at this time the best estimate and will be regularly updated to reflect the rolling programme of investment opportunities.

Working in partnership with a wide number of partners, developers, landlords, agents and businesses a comprehensive action plan is in place to co-ordinate the programme and support a range of projects and initiatives.

The programme is now well underway with progress on a range of sites including:

 Former White Lion: o Listed Building and Planning consent secured for conversion of the White Lion to apartments and ground floor A3 use; o Legal Agreements nearing completion; o Start on site December 2017; o Completion of apartments late 2018/early 2019; o Completion of restaurant Mid 2019;  29-35 Little Underbank: Acquisitions secured through negotiations;  Winters: Acquisition currently being negotiated;  Russell Morley House/6 Lower Hillgate: Interest received from a third party seeking to redevelop the site;  Planning applications submitted for 1-3 Lower Hillgate and later withdrawn. Working with the owner and a third party to redevelop the site;  Planning application submitted for Dumvilles Bow site but refused at Area Committee; 28  17 Little Underbanks refurbishment complete;  Property deal being sought on Produce Hall and Blackshaws with interest received currently under evaluation;  Bank chambers upper floors are being converted to apartments;  41-43 Great Underbanks has been sold and currently being converted to an opticians, with potential conversion of upper floors to residential use;  15 Bridge Street ground floor converted into a café with upper floor granted permission for residential use;  Townscape Manager appointed to lead on the Heritage Lottery Fund project to develop the HLF stage 2 application; the project will involve investing in the built heritage of the area (sensitive repair, reinstatement) alongside public engagement;  A number of other sites progressing including 2–16 Millgate and 14 Market Place.

Brownfield Site Schemes A range of Brownfield sites are being developed.

The CPO of Swann Lane has been confirmed and possession took place in April 2017.

With anticipated expenditure on each scheme not being anticipated during the current financial year, the allocation has been rephased to 2018/19.

In Quarter 2 of 2015/16 £0.400m of grant monies was provided to the Economy & Regeneration Portfolio from the Adults portfolio to support the Arc at Castle Yard project. Although £0.010m was spent on this project at the early stages, the project never came to fruition and as such it is proposed that the remaining £0.390m be returned to the Adults portfolio during Quarter 3.

29 Appendix 1: Performance measures to be developed during 2017/18

The measures below have been proposed for inclusion during 2017/18. Definitions are not yet fully developed but as and when they are, and baselines are identified, they will be added to future quarterly performance reports.

Good 2016/17 2017/18 Provisional PI Name perform Q2 Status PI Code Actual Forecast Target -ance Actual Number of planning enforcement E&R 03 cases which result in successful High To be developed during Quarter 3 prosecution.

Employment-related developments E&R 04 approved on previously developed High 1413 17,460 17,460 TBC land (square metres). This is reported annually in arrears each autumn. The Q2 and forecast figures therefore relate to the 2016/17 total (and the figure in the 2016/17 column actually relates to 2015/16). The 2017/18 figure will not be available until autumn 2018 and a target for that year will be agreed during the next two quarters. CO2 emissions (metric tons per E&R 05 capita) within the scope of Low 4.2 4.1 4.1 4.1 influence of Local Authorities These figures are obtained from annual reports commissioned by DEFRA which include estimates of CO2 emissions across the UK. Data is reported two years retrospectively. The latest data was released in Autumn 2017 and relates to 2015 (data in the 2016/17 column relates to 2014). Stockport’s figure of 4.1 in 2015 compares with 5.0 in England.