The Committee received the report which provided an overview of the Cheshire East Council final outturn for the financial year 2024/25 and the financial performance of the Council relevant to the committee remit.
It was reported that the Growth and Enterprise Department and Place Directorate were reporting an underspend of £5.3m against a budget of £28.2m. This was a £1.5m improvement from Quarter 3. The main reasons for the underspend were savings against gas and electricity compared to higher budgeted costs, an underspend on business rates, reduction in maintenance spend and vacancy management.
The Committee acknowledged the efforts of staff in achieving the savings despite the high vacancy levels.
During discussion concerns were raised on the sustainability of relying on vacancies to achieve savings and the impact of adjusting capital projects expenditure on future costs.
The Committee asked if information could be provided on benchmarking against other councils using reliance indicators and if additional training could be provided for councillors on financial matters.
RESOLVED (by majority): That the Committee
1 note 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 note the contents of Annex 1
3 approve the new Reserves in the Reserves Section, as set out in Annex 1 to the report at Section 5, Table 1, which includes proposed movements to the reserves.
4 note that Council will be recommended to approve the Supplementary Revenue Estimate Request for Allocation of Additional Grant Funding over £1,000,000, as per Annex 1 to the report at Section 3, Table 1.
5 approve the Supplementary Capital Estimates and Capital Virements between £500,000 and £1,000,000 in accordance with the Financial Procedure Rules, as detailed in Annex 1 to the report at Section 4, Table 4.
6 note the Council will be recommended to approve the Supplementary Capital Estimates over £1,000,000 in accordance with Budget and Policy Framework Rules, as detailed in Annex 1 to the report at Section 4, Table 5.