Issue - meetings

To consider a report on the third review of the Cheshire East Council forecast outturn for the financial year 2023/24.

The Committee received a report which provided the third review of the Cheshire East Council forecast outturn for the financial year 2023/24.

Members were asked to consider the serious financial challenges being experienced by the Council (and other councils) and to recognise the important activities outlined which aimed at minimising the impact on services.

Overall the Council was forecasting and over spend of £13m and this was an improvement of £5.7m since the second finance review. The Environment and Health Committee had pressures of £3.1m and this was a reduction of £0.4m since the second financial review.

There were some income pressures in planning and building control of £1.3m, increased waste disposal, contract inflation and recycling shortfall pressures of £1.8m and pay inflation pressures of £0.8m. There were some one off charges linked to the delay in some of the savings that had been previously discussed at Committee and they had been offset by in year improvements linked to capitalisation and also the use of earmarked reserves, as well as holding vacancies and some of the mitigation factors taken by the directorate.

An amendment to recommendations 1 – 4 was moved and seconded which sought to add the words ‘and note’ after the first word ‘Consider’. This was carried unanimously.

In relation to recommendation 6 officers agreed to review a request made that in future it would be appropriate if members were being advised that officer delegations were to be used, that they would like to know what the specific delegations are related to, in the context of the Council’s constitution.

RESOLVED: (By Majority)

That he Environment and Communities Committee:

1. Consider and note the report of the Finance Sub Committee: Finance Sub Committee, 11th January, 2024

2. Consider and note the factors leading to a forecast adverse Net Revenue financial pressure of £3.1m against a revised budget of £48.7m (6.4%), for Environment and Communities Committee services.

3. Consider and note the forecast and further mitigations needing to be identified, aimed at bringing spending back in line with budget.

4. Consider and note the in-year forecast Capital Spending of £6.9m against an approved MTFS budget of £12.0m, due to slippage that has been re-profiled into future years, in respect of Environment and Communities Committee projects.

5. Approve fully funded supplementary revenue estimates over £500,000 up to £1,000,000 in accordance with Financial Procedure Rules as detailed in Appendix 5 Environment and Communities Committee, Section 2 Corporate Grants Register, Table 2.

6. Scrutinise the contents of Annex 1 and Appendix 5 and note that any financial mitigation decisions requiring approval will be made in line with relevant delegations.