Cheshire East Council Faces £25m Funding Gap Next Year
Cheshire East Council is grappling with a £25m funding gap for the upcoming year despite recent improvements in financial forecasts
Cheshire East, Funding Gap, Council, Social Care, Budget, UK
Cheshire East: The council is currently looking at a funding shortfall of £18.3 million for this year and an even bigger £25.3 million for 2025-26. While the latest forecast is a bit better than before, it still means they might need some extra help from the government.
Next week, the finance sub-committee will discuss the third financial review report, which shows a £1.8 million improvement in this year’s funding gap. The forecast for 2025-26 has also dropped from £31.4 million to £25.3 million.
Council leader Nick Mannion mentioned that back in February 2024, they were expecting a £41.9 million gap for next year. So, the latest news is a step in the right direction, thanks to the hard work of everyone involved.
However, he stressed that they still need to tackle the remaining issues to close the gaps for both this year and next. The provisional financial settlement from the government has brought in an extra £4.5 million for 2025-26, which is good news, but it’s still less than what other councils in England are getting.
Nick pointed out that while many councils are facing similar pressures, their situation is unique, especially regarding social care services for adults and children, including those with special needs. The costs for these services keep rising, and the funding just isn’t keeping up.
Deputy leader Michael Gorman added that they’re committed to creating a budget that protects essential services for those who need help the most. They’re also pushing for better national funding for social care and special educational needs.
They have a transformation plan in place that aims to save money in the long run, but there are still significant financial hurdles to overcome. Accessing exceptional financial support could help them manage immediate pressures and work towards long-term stability.
While this might ease short-term issues, it could lead to extra costs down the line, which they’re preparing for. They also need to rebuild their financial reserves to be more resilient in the future.
Michael acknowledged that residents have high expectations of the council and the services they provide. However, they need to make tough local decisions to address the national funding shortfall.
Cheshire East is inviting residents to share their thoughts on budget planning through a survey, which will be open until January 19. This feedback will help shape the new budget and guide the councillors in their decision-making.