Cheshire East Council says predicted overspend has been reduced for financial year

By Belinda Ryan - Local Democracy Reporter

1st Nov 2024 | Local News

Westfields, the soon-to-close home of Cheshire East Council. (Image - Macclesfield Nub News)
Westfields, the soon-to-close home of Cheshire East Council. (Image - Macclesfield Nub News)

Cheshire East Council says its predicted overspend for this financial year has reduced by £6.5m but warned 'further urgent action is needed' to bring spending back in line with budget.

At the end of the first quarter of the financial year, the council had predicted an overspend of nearly £27m by the end of March 2025.

A report to next week's meeting of the finance sub-committee says that forecast gap has now been reduced by £6.5m.

But the report warns: "While an improvement on the first financial review of £6.5m, the forecast overspend of £20.1m remains a significant financial challenge for the council."

It says the council's forecast level of reserves are £10m and 'is therefore insufficient to cover the current forecast revenue outturn for the year without further action'.

The council applied to the government in February for exceptional financial support of £17.6m.

One of the key requirements for that was it had to produce an improvement and transformation plan and submit it to the government – which it has done.

If the council doesn't rein in its spending it will have to use the conditional exceptional financial support to avoid the issuing of a S114 notice – which means effective bankruptcy.

Cheshire East has set up a strategic finance management board to look at its expenditure and determine whether it is absolutely necessary.

It is also looking at income and grants and examining council contracts.

The report says: "In addition, any directorate that is identified as being off target by more than five per cent is now subject to a detailed finance and performance review on a weekly basis through a financial recovery review process.

"This includes a detailed action plan, identifying what can be done to sustainably reduce the pressure and gaining assurance over the management of those actions to deliver improved financial outturns.

"This process has been put in place for adults' services and children and families and is being chaired by the S151 officer."

The meeting of the finance sub-committee takes place on Thursday, November 7 at 10am at the council's Westfields offices in Sandbach.

     

New alsager Jobs Section Launched!!
Vacancies updated hourly!!
Click here: alsager jobs

Share:

Related Articles

The darker months can be a difficult time for those with dementia. Right at Home South Cheshire's Christmas tree outside its Nantwich office. (Photo: Zoe Cooper)
Local News

Alsager: Supporting loved ones with dementia during darker months

Lots happening in Alsager this weekend. (Photo: Mere Inn)
Local News

What's on in Alsager this weekend: Lights switch on, live music and drama

Sign-Up for our FREE Newsletter

We want to provide alsager with more and more clickbait-free local news.
To do that, we need a loyal newsletter following.
Help us survive and sign up to our FREE weekly newsletter.

Already subscribed? Thank you. Just press X or click here.
We won't pass your details on to anyone else.
By clicking the Subscribe button you agree to our Privacy Policy.