Cheshire East Council still needs to make savings to remain financially sustainable despite a government ‘bailout’

By Belinda Ryan - Local Democracy Reporter 24th Feb 2025

Adele Taylor (pictured), interim executive director of resources, issued the warning at today’s (Monday) meeting of the audit and governance committee. (Photo: Cheshire East)
Adele Taylor (pictured), interim executive director of resources, issued the warning at today’s (Monday) meeting of the audit and governance committee. (Photo: Cheshire East)

Cheshire East Council still needs to make savings to remain financially sustainable despite the £25.3 million government 'bailout', the finance boss has said.

Adele Taylor, interim executive director of resources, issued the warning at today's (Monday) meeting of the audit and governance committee, in response to a question from Conservative councillor Patrick Redstone.

Cllr Redstone (Odd Rode) had asked whether the risk of a S114 notice being issued – effective bankruptcy – had been eliminated now the government had confirmed the council will receive exceptional financial support of £25.3 million.

Ms Taylor told the meeting: "I draw all councillors views to my section 25 report, which is part of the budget report, which is that this council is still in a position where, yes, that [exceptional financial support] would allow us to set a legal budget for 2025/26, but it will be about delivering against that budget.

"We're still in a position where our financial sustainability is dependent on us delivering against that budget.

"We also still have gaps in future financial years, that we will need to continue to look to close.

"So, I can't sit here and say that there is no risk, because that wouldn't be right, but the risk has lessened at this stage, 2025/26, with the exceptional financial support."

The cash-strapped council was informed last week it had been granted the extra financial support which means it can, through a process known as 'capitalisation', borrow money or sell assets to meet day-to day revenue costs.

It is one of 30 local authorities given the additional support to protect services and ensure sustainability.

Cheshire East is due to set its budget at full council on Wednesday (February 26).

That meeting takes place at 11am at Tatton Park.

     

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