Agenda item

To note and comment on the First Financial Review and Performance Position of 2025/2026.

Councillor John Place arrived at the commencement of this item.

The committee considered a report on the First Financial Review and Performance Position of 2025/2026.

It was noted that the Adults and Health Committee were reporting forecast of £0.3 million underspent. However, there was uncertainty in fluctuating care costs which could influence this; it was noted that there was an “optimistic” forecast for the Adults and Health Committee of £0.7 million underspent and a “pessimistic” forecast of £4.6 million overspent – the difference between best and worst cast for FR1 was £5.3 million.

Members were updated that 52% of placements in 2025 / 2026 were at the guide price, but there were several scenarios as to how the finances could play out for the rest of the year and a significant level of risk in the forecasts. It was noted that at FR2 the most likely case was balanced position, and not £700,000 underspend; due to unplanned activity in hospitals in July 2025 but this was starting to level out. It was noted that activity was closely related to challenges faced by NHS partners, and conversations were taking place regarding S117 aftercare and agreement of continuing healthcare packages.

It was noted that Cheshire East Council was also seeing an increased number of resident self-funders who were running out of funds at a higher-than-normal rate and earlier in the year. It was noted that the transformation plan savings were profiled to be realised later in the financial year and that active monitoring was taking place. It was noted that we were likely to see emergent winter pressures.

Members were updated that reserves that the council holds will continue to be monitored against the position and level of risks in the service committee and council as a whole.

It was noted that Cheshire East Council was working closely with partners on commissioning, but the conversations with the NHS and Integrated Care Board was increasingly complex.

Members were updated that the public health ringfenced reserves could only be spent on specific costs, and over time the amount may reduce. It was noted that the national guidance was to hold 5% of reserves to cover any emergency local health issues, and that the reserves may be used to increase the levels of vaccination and immunisation uptake and awareness.

Members were updated that it was expected that the 4-year MTFS set in Feb 2025 anticipated that the Adults and Health Committee budgets would flatline, but this may change dependant on unforeseen demand.

RESOLVED (Unanimously):

That the Adults and Health Committee:

1.    Review the factors leading to a forecast adverse Net Revenue financial pressure of £3.1m against a revised budget of £440.5m (0.7%). To scrutinise the contents of Annex 1, Section 2 and review progress on the delivery of the MTFS approved budget policy change items, the RAG ratings and latest forecasts, and to understand the actions to be taken to address any adverse variances from the approved budget.

2.    Review the in-year forecast capital spending of £205.5m against an increased capital budget of £208.5m. This was adjusted at outturn following an approved MTFS budget of £173m.

3.    Approve the Supplementary Revenue Estimate Request for Allocation of Additional Grant Funding over £500,000 and up to £1,000,000 as per Annex 1, Section 3, Table 2.

4.    Note the available reserves position as per Annex 1, Section 5.