URL: https://cmttpublic.cheshirewestandchester.gov.uk/ieDecisionDetails.aspx?ID=2073

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: To inform Members of the financial performance of the Council as at the end of July.  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 as at the end of July.  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 at the first review of the 2026-27 financial year, covering the period from 1 April 2026 to 31 July 2026. It summarised the key headlines for financial performance, covering revenue and capital budgets.   Members noted Cheshire West and Chester, along with Councils nationally, continued to face significant financial pressure with the forecasted overspend of £11.6 million reduced to £9.4 million at the end of July 2026. This was following identified mitigating actions of £2.2 million. Significant financial challenges continued across most service areas but particularly within Adults and Children’s Services, where demand-led pressures, high-cost placements, home-to-school transport costs and delays in delivering planned savings contributed to the overspend. The Dedicated Schools Grant also faced a substantial forecast deficit due to rising SEND demand and an increase in Education, Health and Care Plans (EHCP’s). However, with recent national SEND Reform plans, local authorities were eligible to apply for a ‘High Needs Stability Grant’ from the Department of Education to support the deficit. This is dependent on approval of the Council’s SEND reform plan. There is also currently a statutory override until 31 March 2028 so the deficit does not impact on general reserve.   Members were advised that all service areas had been directed to take immediate action to ensure further mitigations to reduce forecast pressure. Failure to implement these mitigations would impact the Councils’ financial resilience and would result in general reserves below the Council’s assessed safe range if not addressed. Members were informed that the capital programme remained largely on track alongside proposed investment in community facilities and infrastructure projects. Members were reassured that Council management had a clear understanding of where the financial pressures lay and had already initiated a range of actions to reduce expenditure, accelerate savings delivery and strengthen the Council’s financial resilience.   Councillor Carol Gahan, Cabinet Member for Finance and Legal, led the discussion on the item as proposer and the item was seconded by Councillor Louise Gittins, Leader of the Council.   Visiting Members: Councillor Charles Hardy spoke in relation to the item.   Cabinet welcomed the comprehensive report and recognised the ongoing challenges and financial pressures in key areas. Members noted that whilst overspend was significant, with the increase in high cost social care placements and EHCP’s having seen even more additional demand than previous years, efforts to reduce the pressure remained robust whilst welfare services remained stable and protected. Members also acknowledged that capital projects remained a focus for the council which they felt further highlighted the achievements of teams across the Council. Councill staff were thanked for their hard work.   DECIDED:     That   Financial Performance:   1)            the forecast revenue and capital outturn of the Council as set out in this report be noted; 2)            that the Council remains within all Prudential Indicators set for itself for the year (see paragraphs 4.87 to 4.88 and Appendix L) be noted; 3)            the significant financial challenges facing the Council and the need to identify further in year mitigations to reduce the forecast overspend be noted; 4)            the transfer of S106 funding to the NHS for improvements at Willaston Surgery (see paragraph 4.16) be approved; and 5)            an increase of £0.5m in the Capital Programme for a scheme at Lache Community Centre (see paragraph 4.17) be approved.   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: September 16, 2026