Issue - meetings

To receive an overview of the Cheshire East Council final outturn for the financial year 2024/25.

The Committee considered the report which provided members with an overview of the Cheshire East Council final outturn for the financial year 2024/25. Members were asked to consider the financial performance of the Council. The report also proposed treatment of year end balances that reflected risks identified in the Medium Term Financial Strategy which was approved by Council on 26 February 2025.

The supplementary agenda provided a revised version of the report which was considered.

The Committee raised concerns of the overspend of other service areas and asked what actions were being taken to address this. It was also asked what the plans were to recover the debts owed to the Council in relation to the Environment and Communities Committee.

The Committee were updated that the necessary actions were being taken to reduce the amount of overspend and explained that there is still a national issue and awaiting further updates. Officers stated that the Council has a successful approach to debt recovery and would endeavour to ensure that all monies owed to the council were paid. Officers committed to providing further details of what is included for Environment and Communities.

The Committee raised concerns over capital expenditure in relation to a variance of 59%, and queried the general reserves being used, and asked what the difference between the interest that would be paid on the exceptional financial support, and the interest that could be gained on having it in the reserve account. Officers committed to providing a written response.

Members commended Cheshire East finance staff for their work and dedication.

RESOLVED (by majority):

The Environment and Communities Committee is recommended to:

1. Consider the overall financial performance of the Council in the 2024/25 financial

year, as contained within the report, as follows:

a) A Net Revenue Overspend of £17.6m against a revised budget of £365.8m

(4.8% variance) funded by conditional Exceptional Financial Support

(Capitalisation Direction) via borrowing.

b) General Reserves closing balance of £6.3m.

c) Capital Spending of £88.4m against an approved programme of £215.8m (59%

variance).

2. Consider the contents of Annex 1.

3. Approve the Supplementary Capital Estimates (SCE) and Capital Virements

between £500,000 and £1,000,000 in accordance with Financial Procedure Rules for the following Committee’s as detailed in Annex 1, Section 5, Table 4

4. Approve the new Reserves in the Reserves Section (Annex 1, Section 5, Table 1) which includes proposed movements to reserves.