Issue - meetings

To consider the recommendations from the Corporate Policy Committee.

The Corporate Policy Committee, at its meeting on 6 February 2025, had considered a report on the Medium-Term Financial Strategy for Cheshire East Council for 2025-2029.

The Corporate Policy Committee had recommended to Council the recommendations set out on page 23 and 24 of the agenda pack.

It was reported that the table in paragraph 2.4 on page 91 of the agenda pack and the revenue budget summary table on page 136 of the agenda pack had been revised and circulated to Members.

Following debate, the recommendations were put to the vote, and in accordance with legislation, a recorded vote was carried out with the following results:

FOR

Councillors L Anderson, S Bennett-Wake, J Bird, L Braithwaite, J Bratherton, M Brooks, C Browne, L Buchanan, C Bulman, A Burton, C Chapman, D Clark, A Coiley, N Cook, S Corcoran, L Crane, B Drake, D Edwardes, K Edwards, M Edwards, H Faddes, E Gilman, M Goldsmith, M Gorman, C Hilliard, M Houston, D Jefferay, N Mannion, G Marshall, A Moran, R Moreton, J Place, J Priest, B Puddicombe, J Rhodes, H Seddon, G Smith, J Snowball, R Vernon, M Warren, F Wilson and B Wye.

AGAINST

Councillors S Adams, R Bailey, M Beanland, D Brown, R Chadwick, J Clowes, T Dean, S Edgar, R Fletcher, A Gage, S Gardiner, K Hague, E Hall, A Harrison,G Hayes,A Heler, S Holland, T Jackson, R Kain, A Kolker, R Morris, H Moss, M Muldoon,C O’Leary, J Pearson, B Posnett, J Pratt, P Redstone, J Saunders, M Sewart, L Smetham, John Smith, Julie Smith, L Smith, L Wardlaw, H Whitaker and J Wray.

The motion was declared carried with 42 votes for, 37 against and 0 not voting.

RESOLVED: That Council:

1.             note the report of the Council’s Chief Finance Officer (Section 151 Officer), contained within the Medium-Term Financial Strategy report, regarding the robustness of estimates and level of reserves held by the Council based on these budget proposals (as set out in Appendix A to the report, Section 2, Section 25 Statement).

2.             approve the Revenue estimates for the 2025/26 budget (as set out in Appendix A to the report, Section 2, Overview) and the medium-term Capital Programme estimates 2025-2029, as detailed in the Medium-Term Financial Strategy report 2025-2029 (as set out in Appendix A to the report, Section 2, Capital budget).

3.             approve the setting of Band D Council Tax of £1,882.04 representing an increase of 4.99%. This is below the referendum limit (including 2% ringfenced for Adult Social Care) and arises from the provisional finance settlement (as set out in Appendix A to the report, Section 1, Key Funding Assumptions).

4.             approve the utilisation of up to £25.3m conditional Exceptional Financial Support (Capitalisation Direction) via borrowing to balance the 2025/26 budget shortfall (as reflected in Appendix A to the report, Section 2, Balancing the Budget) and to delegate to the Chief Finance Officer (Section 151 Officer) to review the basis of funding through the 2025/26 year and report to the appropriate committee  ...  view the full minutes text for item 78

To consider the report on the Medium-Term Financial Strategy (MTFS) for Cheshire East Council for the four years 2025/26 to 2028/29.

The committee considered the report which presented the Medium-Term Financial Strategy (MTFS) for the four years 2025-26 to 2028-29.  It was highlighted that the officer report had been prepared prior to the receipt of the Final Local Government Finance Settlement, which was received on Monday 3 February 2025. The Local Government Finance Settlement (LGFS) provided clarity on a number of grant contributions which were as finance officers had anticipated. Therefore, there were no material changes arising from the LGFS that needed to be reflected in the MTFS. The request for the Council to consider increasing Council Tax above the referendum limit was declined by central government and recommendation f4 would not need to be considered by the committee.

The committee noted the S151 Officer’s Section 25 report which advised members on the robustness of the estimates set out in the budget and the adequacy of the proposed reserves. The low level of reserves was highlighted within the report as a significant risk that needed to be addressed urgently. The reserves strategy sets out how the level of reserves could be built up over the life of the MTFS. Robust management of the budget was critical.

The committee noted the financial implications of the transformation programme. It was suggested that a separate line in the budget for the costs associated with the transformation programme would be more helpful for members. It was highlighted that the gross transformation savings were estimated to be in the region of £72m over the period of the MTFS and that the £10.8m for digital programmes would help support and deliver on some transformation savings. Officers commented that it was important to account for costs and savings from transformation in respective service areas, but that it was intended that there would be other supporting information reported, that would show the totality of transformation savings and the costs of achieving the changes.

The MTFS set out assumptions relating to likely capital receipts over the life of the MTFS from the sale of any assets via the Disposal Programme. The committee requested detail around the assets that might be sold. The committee noted that no capital schemes had been stopped but there had been a review of the capital programme to ensure that profiling of projects was right. The committee requested detail on all projects so that they could fully understand the impact. Officers committed to providing the committee with further information on capital projects and the assets being considered through the Disposal Programme as soon as possible.

The committee debated the impact that any increase in council tax would have on residents across the borough. Members agreed that work needed to continue to ensure that the impact on vulnerable individuals was fully understood.

The committee considered the recommendations in blocks, as set out below.

RESOLVED:

That the Corporate Policy Committee notes

1. The summary results of the Budget Engagement exercise undertaken by the Council, as set out in Appendix B and the implications for the MTFS.

2. The draft report  ...  view the full minutes text for item 65