The Cabinet has decided to approve recommendations regarding the Council's financial performance for the 2024-25 financial year.

URL: https://cmttpublic.cheshirewestandchester.gov.uk/ieDecisionDetails.aspx?ID=1974

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: To inform Members of the financial performance of the Council for the 2024-25 financial year. Members are asked to approve any proposed changes to the capital programme and revenue budget.

Content: To inform Members of the financial performance of the Council for the 2024-25 financial year. Members are asked to approve any proposed changes to the capital programme and revenue budget. Cabinet considered the report of the Director of Finance which set out the financial performance of the Council for the 2024-25 financial year. This covered the 12-month period from 1 April 2024 to 31 March 2025 and summarised the key headlines for financial performance, covering revenue and capital budgets.    Councillor Carol Gahan, Cabinet Member for Finance and Legal, led the discussion on the item as proposer and the item was seconded by Councillor Nathan Pardoe, Cabinet Member for Inclusive Economy, Regeneration and Digital Transformation.   Councillor Gahan highlighted key headlines within the report on the Council’s financial position.  She reported that for the 2024-25 financial year, the Council had an overspend of £3.5m against its approved budget.  Whilst spend had not been contained within the approved budget, the level of overspend had reduced during the year, from the forecast £9.5m pressure (after planned mitigations) reported to Cabinet in January 2025 (third review).  She reported that whilst it was positive that the level of overspend had reduced during the year, there were continued significant cost pressures in Adults Social Care relating to the sustained increase in demand and cost of care. This caused a final outturn pressure of £13.6m across the service.  Children’s Social Care overspend for the financial year was £0.9m.  It was noted that other areas with financial pressures were home to school transport, Park & Ride, market income, commercial property income and parking and enforcement income.    Councillor Gahan further reported that, as a result of these pressures, the Council had to identify significant mitigating actions in year from across all directorates and council-wide budgets to offset the pressure.  In addition, the £3.5m overspend would result in General Reserves reducing to £22.7m which falls below the Council’s risk assessed range, however the 2025-26 budget included a planned contribution of £2.5m to the general reserve and further planned contributions of £7.5m from 2026-28 and these plans will replenish the reserve to within the Council’s risk assessed range.    Cabinet Members welcomed the comprehensive report detailing the Council’s financial position, noting that it had been considered at Cheshire West and Chester Overview & Scrutiny Committee on 2nd June.  Cabinet also acknowledged the continuing significant pressures, in particular in Adults and Children’s Social Care, which was being seen across many local authorities.  However they highlighted that due to positive and proactive actions, a significant proportion of the financial pressures had been mitigated.  They paid tribute to the Finance team for its continued robust financial management which meant the council was in a better position compared to that of other local authorities.   Visiting Members:  Councillors Lynn Gibbon and Charles Hardy spoke in relation to the item.   DECIDED:    That   Revenue Performance:   1)    the overall financial position of a £3.5m overspend and the call on the General Reserve be noted; 2)    the carry forward of revenue budgets within directorates (£0.2m) and central budgets (£1.6m) to support budget pressures in 2025-26 (paragraph 4.12) be noted; 3)    that the Council remains within all Prudential Indicators set for itself for the year (see paragraphs 4.84 to 4.85 and Appendix K) be noted;   Capital Programme:   4)    the capital programme delivery and key outputs for 2024-25 (see paragraphs 4.16 to 4.23 and detailed in appendices) be noted; 5)    an increase of £0.8m for the Sutton Way Housing Revenue Account (HRA) scheme. (see paragraph 4.20).   RECOMMENDATIONS TO COUNCIL:   1)            To approve a revised general capital receipts target of £7.1m for 2025-26, reflecting a carry forward from 2024-25 of £0.6m from unachieved general capital receipts (see paragraph 4.23); and 2)            To approve a call on the General Reserve of £3.5m to fund the 2024-25 position.   Reason for Decision   To ensure the Council remains a well-managed authority, recognising and responding to emerging cost pressures and complying with current accounting requirements.   Alternative Options   The report sets out various recommendations. Members could choose not to approve the recommendations. However, this is not recommended as this would adversely impact the Council’s financial position.

Date of Decision: June 11, 2025