Decision details

The committee considered the report which set out the allocation of approved budgets for 2025-26, from Nicola Wood-Hill, Lead Finance Business Partner.

The Committee were updated that the report detailed the budget for both revenue and capital, as well as earmarked reserves, and that the Council’s Medium Term Financial Strategy (MTFS) relied on the delivery of the approved budget changes, which were approved by Council. The balancing of the MTFS for 2025 / 2026 relied on the forecast use of Exceptional Financial Support (EFS) of £25.3 million. Any further action that could be taken to reduce the need to use EFS in 2025 / 2026 would also benefit the revenue position through the reduced costs of borrowing.

Members were updated that the cost of digital transformation within the Service had been built into the MTFS, and Artificial Intelligence (AI) linked savings in the MTFS had not yet been allocated out to the services, but there was an anticipation that this would be factored into the Adult Social Care Transformation Plan, building on work currently being trialled in the department. However, the primary aim would be to improve performance and productivity.

Officers committed to provide a written response on how AI could impact the committee.

Members were briefed that Cheshire East Council had set aside a contingency budget due to the potential cost increases associated with raises to the National Living Wage, National Insurance, and other inflationary factors, as most commissioned service costs were driven by pay rates.

Officers committed to providing a written response on the breakdown of the contingency budget.

It was noted that the Adult Social Care Transformation Plan was focussed on how best to change the way people were supported to have an overall downward pressure on the Adult Social Care budget. It was noted that the Adult Social Care Front Door had been successful in managing demand and the number of individuals going on to get an assessment was staying static.

Members were updated that the two remaining PFI sites are Willowmere and Oakmere Extra Care Facilities; these facilities were funded from the PFI grant from Central Government and there was no expectation that these costs would lead to a pressure on Cheshire East’s MTFS in the short term. However, there may be pressures related to the rebuilding of the Beechmere Extra Care Facility as negotiations continue. It was noted that the Public Health Reserve was ringfenced.

RESOLVED: (Unanimously)

That the Adults and Health Committee:

1.    Note the decision of the Finance Sub-Committee to allocate the approved revenue and capital budgets, related budget changes items and earmarked reserves to the Adults and Health Committee, as set out in Annex A.

2.      Note the financial reporting timetable for 2025/26 set out in Annex B as approved at Finance Sub-Committee on 10 March 2025.