Macclesfield
Nub News Logo
Nub News

Cheshire East Council forecasting £3.1m overspend this year

By Belinda Ryan - Local Democracy Reporter 3rd Sep 2025

Cash-strapped Cheshire East is forecasting a £3.1 million overspend this year, in addition to the planned use of £25.3 million exceptional financial support (Ryan Parker).
Cash-strapped Cheshire East is forecasting a £3.1 million overspend this year, in addition to the planned use of £25.3 million exceptional financial support (Ryan Parker).

Cash-strapped Cheshire East is forecasting a £3.1 million overspend this year, in addition to the planned use of £25.3 million exceptional financial support.

The figures are revealed in the first financial review of 2025/26 (FR1) and are based on the council's income, expenditure and known commitments as at the end of June 2025.

And a report to next week's meeting of the finance sub-committee says, while the situation could improve, it could get substantially worse.

"The value of additional mitigation plans not yet reflected as delivered at FR1 are estimated at £2.8 million, giving a potential improved overall forecast of £0.3 million overspend," it says.

"However, should the current mitigations included in the FR1 forecast not materialise, alongside further risks identified, then the forecast overspend position could increase to £18.7 million adverse."

The figures are revealed in the first financial review of 2025/26 (FR1) and are based on Cheshire East Council's income, expenditure and known commitments as at the end of June 2025 (Ryan Parker).

It continues: "The forecast overspend of £3.1 million remains a significant financial challenge for the council when considered in addition to the planned use of EFS of £25.3 million.

"Reserves levels are insufficient to cover this level of overspending."

Councillors will be told the key areas causing these financial pressures at FR1 include a projected overspend of £9 million within children and families, which is largely due to increased costs of placements and staffing.

The report says a shortfall of £9.7 million is forecast against in-year cross-directorate transformation savings.

But it says some of these pressures have been offset by savings of £4.7 million within the place directorate due to vacancy management and various one-off income items expected in-year.

It adds: "The contingency budget is contributing a further £7.2 million to the overspend position – including the use of £1.6 million to cover the pay inflation pressure – whilst interest and minimum revenue provision (MRP) are forecast to be £3.3 million under budget due to lower than expected borrowing, increased levels of investment and slippage in the capital programme."

The report says mitigations are planned to manage pressures.

These include:

  • Line-by-line reviews of all budgets to further identify immediately any underspends and/or additional funding;
  • Actively managing vacancies, particularly agency usage and reduce any overspends on staffing as soon as possible;
  • Review the borrowing elements of the capital programme to minimise the minimum revenue provision and interest payable;
  • Review of capital receipts available and potential surplus assets that can be sold;
  • For children and families – reviewing costs of placements, establishment reviews, reunification of children

The finance sub-committee meeting takes place at Macclesfield Town Hall at 10.30am on Wednesday 10 September.

     

CHECK OUT OUR Jobs Section HERE!
macclesfield vacancies updated hourly!
Click here to see more: macclesfield jobs

     

Can we count on you? Local news is the heartbeat of Macclesfield
— it needs your support.

For less than the price of a cup of coffee each month,
you can help us keep telling the stories that matter to Macclesfield.
Support local journalism. Protect your community.

Thank you to those of you that have already contributed.
Monthly supporters will enjoy:
Ad-free experience

Share:


Sign-up for our FREE newsletter...

We want to provide macclesfield with more and more clickbait-free news.

     

...or become a Supporter.
Macclesfield. Your Town. Your News.

Local news is essential for our community — but it needs your support.
Your donation makes a real difference.
For monthly donators:
Ad-free experience