Agenda item

To consider a report which provides an overview of the Cheshire East Council provisional outturn for the financial year 2022/23.

The Committee considered a report which provided an overview of the Cheshire East Council provisional outturn for the financial year 2022/23. The report also provided an early update on performance in 2023/24, in respect of the approved budget policy changes made in the MTFS 2023/24-27.

There was some discussion as to whether the current level of reserves was sufficient to meet the challenge of increased cost pressures in some areas such as children’s and adult social care, particularly as Covid legacy grant funding would not be available to offset such costs in future. It was noted that reserves currently stood at £14.1M and had increased by £1.5M over the last year. An additional £6M had been allocated to children’s social care in the MTFS; further strategic responses were being developed by the finance team which would be reported to the Children and Families Committee.

RESOLVED (by majority)

That the Committee

1.   notes the overall financial performance of the Council in the 2022/23 financial year, as contained within the report, as follows:

(a)  A Net Revenue Overspend of £6.0m against a revised budget of £318.7m (1.9% variance) funded by the drawdown of £5.2m from the MTFS Earmarked Reserve and a reduction in the planned contribution to General Reserves by £0.8m;

(b)  General Reserves closing balance of £14.1m; and

(c)  Capital Spending of £116.4m against an approved programme of £125.2m (7.0% variance);

2.  notes the contents of each of the following annexes:

(a)   Annex 1 – Narrative from the Draft Group Accounts – Provides context of the area and its people, commentary on performance and introduces the financial statements of the Council and the wider Group of Companies for the period 1 April 2022 to 31 March 2023;

(b)   Annex 2 – Financial Stability section provides information on the overall financial stability and resilience of the Council. Further details are contained in the appendices.

­    Appendix 1 Adults and Health Committee

­    Appendix 2 Children and Families Committee

­    Appendix 3 Corporate Policy Committee

­    Appendix 4 Economy and Growth Committee

­    Appendix 5 Environment and Communities Committee

­    Appendix 6 Finance Sub-Committee

­    Appendix 7 Highways and Transport Committee.

­    Appendix 8 Update to the Treasury Management Strategy

­    Appendix 9 Update to the Investment Strategy

(c)   Annex 3 – Update on tracked MTFS 2023-27 approved budget policy change items;

3.   approves supplementary capital estimates (SCE) up to and including £1,000,000 and Capital Virements up to and including £5,000,000 in accordance with Financial Procedure Rules as detailed in Annex 2: Appendix 6, Section 4, Table 5;

4.   notes that Council will be asked to approve:

(a)   fully-funded supplementary revenue estimates over £1,000,000 in accordance with Financial Procedure Rules as detailed in Annex 2: Appendix 6, Section 2, Table 3; and

(b)   capital supplementary estimates over £1,000,000 in Annex 2: Appendix 6, Section 4, Table 6; and

5.   recommends to service committees to:

(a)  consider the financial performance of the Council in the 2022/23 financial year relevant to their terms of reference;

(b)  consider the delegated decisions relating to supplementary revenue estimates for specific grants coded directly to services in accordance with Financial Procedure Rules as detailed in Section 2 of each Committee Appendix (Annex 2);

(c)  approve supplementary revenue estimates (SRE) over £500,000 up to and including £1,000,000:

i)    Children and Families Committee Annex 2: Appendix 2, Section 2, Table 2; and

(d)  consider the update on performance with regard to the MTFS 2023-27 approved budget policy change items, in respect of Services within the remit of the Committee.