Decision details

The Committee considered a report which provided an early overview of the Cheshire East Council forecast outturn for the financial year 2022/23.

The report highlighted the negative impact of increasing inflationary pressures on the Council’s budget since it was set in February 2022, and the ongoing costs of COVID-19 scarring. Members noted the consequential financial challenges being experienced by the Council and the ongoing activity to minimise the impact on services.

The Annex to the report provided information on the overall financial stability and resilience of the Council and demonstrated how spending in 2022/23 was being funded, including the positions on overall service budgets, centrally-held budgets, council tax and business rates. Further details were contained in the appendices.

In response to a number of questions by members, officers advised that:

• Section 106 Agreements did not include provisions for reviewing the level of developer contributions at a later date.
• Whilst there were financial pressures affecting all service committees, the report indicated that each committee would if necessary be required to make a contribution to the Council’s overall financial position.
• The financial position would be further reviewed following the November budget when allocations to individual local authorities were known.

Officers were thanked for highlighting the emerging financial issues with the Committee at an early stage.

RESOLVED (unanimously)

That the Committee

1.    notes the forecast adverse Net Revenue financial pressure of £11.6m against a revised budget of £328.4m (3.5%);

2.    notes the forecast Capital Spending of £187.9m against an approved MTFS budget £185.2m due to slippage carried forward from the previous year;

3.    endorses the approach of Senior Officers to mitigate the adverse forecasts through the activities outlined in each ‘Action Plan’ contained in Annex 1 (Appendices 1 to 7), which include:

§  Managed restriction of in-year spending, whilst retaining essential services, in consultation with the relevant Committee.

§  Reviewing the level of spending on key contracts and reviewing the need for contract renewals during 2022/23.

§  Pricing and grant reviews to ensure income is being fully recovered on related activity.

§  Enhanced vacancy forecasting and management.

§  Re-alignment of, and appropriate use of balances, such as earmarked reserves, General Reserves and capital receipts.

§  Review and reprofile the Capital Programme to prevent any impact of related inflation on the revenue budget.

4.    notes the contents of Annex 1 and each of the appendices, and notes that any financial mitigation decisions requiring member approval will be presented to the appropriate Committee; 

5.    approves supplementary revenue estimates for specific grants coded directly to services up to and including £1,000,000 in accordance with Financial Procedure Rules as detailed in Appendix 2 Adults and Health Committee, Section 3 Corporate Grants Register, Table 2;

6.    approves supplementary capital estimates up to and including £1,000,000 in accordance with Financial Procedure Rules as detailed in Appendix 6, Section 5 Capital Strategy, Table 5;

7.    approves capital virements up to and including £5,000,000 in accordance with Financial Procedure Rules as detailed in Appendix 6, Section 5 Capital Strategy, Table 5;

8.    notes that Council will be asked to approve:

(a)  fully funded supplementary revenue estimates for specific grants coded directly to services over £1,000,000 in accordance with Financial Procedure Rules as detailed in Appendix 1, Section 3 Corporate Grants Register, Table 3,  Appendix 2, Section 3 Corporate Grants Register, Table 2 and Appendix 3, Section 3 Corporate Grants Register, Table 2; and

(b)  capital virements over £5,000,000 in accordance with Financial Procedure Rules as detailed in Appendix 6, Section 5 Capital Strategy, Table 6.