Agenda item

To consider the report on the Third Financial Review of 2025-26.

The committee received an update report on the Third Financial Review of 2025-26 and a verbal update on the Forth Financial Review on 2025-26.

It was noted that at FR4, the overall position for Adults and Health for 2025-26 was unchanged and showed a position of a roughly £3,000 overspend. It was noted that there had been a recent increase in both short term and long term bed costs, this links to changes experienced from additional beds purchased by Health to support Discharge to Assess over the winter period, resulting in the Council experiencing additional costs in both short and long term beds. The increased pressure for 2025/26 was being mitigated through grants and internal efficiencies, however this results in a risk of starting 2026/27 with a material opening budget pressure which could be in the region of £4.8 million if bed numbers remained at this level. If there was an opening pressure in 2026/27 it would need to be mitigated in year, which along side the delivery of increased stretch targets in 2026/27 was likely to present a significant financial challenge for the service.

Members were updated that the difference between the best and worst case financial scenario forecasts was narrowing towards the end of the year as more of the projected spend was understood.

It was noted that Cheshire East Council could not fully control the parameters of the BCF, asthe BCF was a pooled budget with partners agreeing how funding was to be used, so the council could make suggestions to the BCF Governance Group on how it thought the spend should be used. It was noted that there may be a change in focus of the BCF towards discharge.

Members were updated that the budget for Public Health was currently showing an underspend in year, however as the Grant was ringfenced the underspend is  ringfenced as part of the Public Health ringfenced reserve. It was noted that the pay award for NHS staff which impacted on PH contracts and services contained with the Public Health remit had been higher than projected, but work was underway with partners to address this. It was noted that the council had been awarded a three-year funding map, instead of the usual one year, which would make it easier to model going forwards.

It was noted that over 60 individuals had died whilst in hospital awaiting an NHS CHC assessment which was very concerning and had been raised with colleagues in health services. It was noted that some of the council’s greatest pressures were from external factors and not within and it was important that partners were aware of this.

Members requested further details of the circumstances surrounding the deaths of individuals who had died whilst awaiting an NHS assessment. Officers committed to provide a written response.

RESOLVED:

That the Adults and Health Committee:

1. Note the overall Council’s Financial position as described within the Executive Summary – Council Financial Position.

2. Scrutinise the latest revenue forecast for Adults and Health Directorate, review progress on the delivery of the MTFS approved budget policy change items (Table 3), the RAG ratings and to understand the actions to be taken to address any adverse variances from the approved budget.

3. Note the overall in-year forecast capital spending for Adults and Health Directorate of £0.132m against a revised MTFS budget of £0.468m in Tables 4 and 5.

4. Note the available reserves position as per Table 6.