Decisions

The Sub Committee considered the report which provided a summary of the consultation process and approval of the Funding Strategy Statement for the latest triennial valuation of the Cheshire Pension Fund.  

During consideration of the report, it was asked if the employer pension contribution rate could be reduced earlier than the three-year valuation cycle.  In response it was confirmed that early reductions were not currently possible as pension valuations and contribution changes were formally reviewed every three years.  Any reductions depended on continuing strong fund performance and unchanged actuarial assumptions.  Greater and earlier engagement would take place ahead of the next triennial valuation, which was due to conclude in early 2029.

It was noted that the Cheshire Pension Fund had moved from being underfunded in the past to being 129% funded and that this strong position made it highly likely that the Fund could meet all future pension liabilities, allowing for reduced employer contributions.  

It was reported that the Council had engaged an external actuarial advisor to support the Council in their consultation response and to challenge the proposed levels of employer contribution. This had resulted in the Council receiving a reduction in the levels of employer contributions by 2% in 2026/27 and 2027/28 and 1% in 2028/29, which would generate savings for the Council.

RESOLVED:   That the Sub Committee

1               note the briefing paper summarising the key points in the items presented to the Cheshire Pension Fund Committee on 20 March 2026.

2        note the latest position with regards to the Funding Strategy Statement process and the approach taken with regards to the latest Cheshire East Council Pool triennial valuation.

The Committee considered the report on the Fourth Financial Review for 2025/26. 

During consideration of the report the Sub Committee raised concerns on the significant and growing SEND overspend, including an unexpected additional £7m pressure.  It was explained that this had been driven by higher than forecast demand for EHCP assessments influenced by the anticipated national SEND reforms due in 2029 and by the reliance on independent and non-maintained special schools due to insufficient local provision.  Forecasting issues were partly attributed to system upgrades which had improved visibility of pressures rather than creating them. 

It was noted that a £0.26m overspend was being reported in SEND transport and it was asked why these costs were not more predictable.  It was confirmed that SEND transport pressures were now feeding into future budget planning and that additional transport costs had arisen from statutory school transport duties with transport provision based on distance, age, safety of route and SEND status.

Concerns were raised over continued underspends in the capital programme and the re-profiling of schemes across years.   Officers confirmed that movements between financial reports (FR3 to FR4) captured grant timing changes.  Work was underway to ensure that no Government grant funding was lost.   The Sub Committee emphasised the need for greater member scrutiny and clarity over the capital programmes’ relationship with the revenue budget.

Reference was made to the Transformation Programme, and concerns were raised on the rising costs and uncertainty of delivery of the promised savings.  Officers acknowledged the delays to the Target Operating Model and attributed this to slippage rather than abandonment.  The Programme was currently focusing on management span and layers, reduction of use of agency staff, sickness absence and productivity improvements.  The savings had been reprofiled into future years with the current year risks flagged as ‘red’.

The Sub Committee was being asked to recommend to Council the approval of a Supplementary Capital Estimate of £2.280m for the feasibility and enabling works for a new structure over the wildlife corridor to allow development of the Capricorn local plan site, with the funding from S106 contributions.  It was confirmed that the proposals met the legal requirements for the use of S106 monies.  Members noted historic delays to the site and the 10-year deadline to spend the funds.

RESOLVED:  That the Sub Committee

1               note the factors leading to a forecast balanced position and note the contents of Annex 1, Section 2 which details progress on the delivery of the MTFS approved budget policy change items, the RAG ratings and the latest forecasts and note the actions to be taken to address any adverse variances from the approved budget.

2               note the in-year forecast capital spending of £137.915m against an original capital budget (at outturn) of £208.491m.

3               note the approved Supplementary Capital Estimates and Capital Virements up to £500,000 as per Annex 1, Section 3, Table 3.

4               note the Capital Virements above £500,000 up to and including £5,000,000 to be approved in accordance with the Council’s Constitution as per Annex 1, Section 3, Table 4.

5               Recommend to Council to approve the Supplementary Capital Estimate Request over £1,000,000 as per Annex 1, Section 3, Table 5.

6               note the Capital Budget Reductions as per Annex 1, Section 3, Table 6.

7               note the available reserves position as per Annex 1, Section 4.

Being satisfied that traffic should be prohibited to facilitate works, to give public notice of and make a temporary road closure order under s14 of the Road Traffic Regulation Act 1984, as amended, and all other enabling powers to prohibit traffic on the below mentioned roads within Cheshire East for a period of 18 months or until the works have been completed, whichever is the sooner. The following roads will be affected:

?Brereton Lane, Brereton  

?For the full extent  

Being satisfied that traffic should be prohibited to facilitate works, to give public notice of and make a temporary road closure order under s14 of the Road Traffic Regulation Act 1984, as amended, and all other enabling powers to prohibit traffic on Whirley  Road, Macclesfield from the junction with Birtles Road to the junction with Belmont Avenue for a period of 18 months or until the works have been completed, whichever is the sooner?

1)    To contract with Changing Lives Together (CLT) for the supply of food hampers to a value of with £85,000.00 to support free school meal young people in Cheshire East, as funded by the Department for Education’s Holiday Activity Fund (HAF)

2)    To contract with Everybody Health and Leisure for the supply of gym and swimming activities to a value of £85,000 on behalf of the local authority over the Christmas period, as funded by the Department for Educations Holiday Activity Fund (HAF).

The business justification for making these purchases is to provide food support and an activity pass during the Christmas School Holidays to some of our most vulnerable children, as identified by through Cheshire East Early Help and Social care teams as free school meal recipients, or highly vulnerable.

By making these purchases we will be supporting sustainability within our local community over the Christmas period, increasing their likelihood of well-fed, happy, secure households and making Cheshire East a good place to live for all.

Cheshire East having received a grant allocation of £4.4m in respect id 2023/24; to incur expenditure by the issue of crisis and prevention support to the Cheshire East Community in line with the HSF4/5 grant conditions.

Cheshire East having received a grant allocation of £4.4m in respect id 2023/24; to incur expenditure by the issue of crisis and prevention support to the Cheshire East Community in line with the HSF4/5 grant conditions.

Accept the examiner’s recommendations to make modifications to the submitted Nether Alderley Neighbourhood Plan as set out in Nether Alderley Neighbourhood Plan examiner’s report; and confirm that it is the Council’s intent to hold a referendum on the Nether Alderley Neighbourhood Plan (as amended), within the Nether Alderley neighbourhood area, at the earliest possible opportunity.

To revoke the existing Alsager neighbourhood area designation that was made on 11 January 2018 and make the Alsager neighbourhood area modification, for the purpose of preparing the Alsager Neighbourhood Plan.

Accept the examiner’s recommendations to make modifications to the Ollerton with Marthall Neighbourhood Plan as set out in Ollerton with Marthall Neighbourhood Plan examiner’s report; and confirm that it is the Council’s intent to hold a referendum on the Ollerton with Marthall Neighbourhood Plan (as amended), within the Ollerton with Marthall neighbourhood area, at the earliest possible opportunity.

To revoke the existing Sandbach neighbourhood area (appendix 1) designation that was made on 21/10/14 and make the Sandbach neighbourhood area modification (appendix 2), for the purpose of preparing the Sandbach Neighbourhood Plan (modification).