Cheshire East Council is calling on residents to share their views on setting a budget for 2025/26.
Every council must, by law, set a balanced budget each year.
Currently, the council anticipates a potential shortfall of around £31.4m for next year. This forecast is based on current projections of income, growing costs and increasingly complex and costly services to help those most in need.
However, full details from the government about funding for 2025/26 are still to be seen. Other government decisions, such as changes to the National Living Wage, could also impact the council's costs, making accurate financial predictions challenging.
While this uncertainty continues, the council is applying to government for additional exceptional financial support (EFS). The option to access EFS could help the council get past this 'pinch point' to establish longer-term financial sustainability through investment in transformation and improvement.
This would reduce the immediate, unfunded pressures in the short-term. However, it would bring additional costs to following years.
When the current budget was agreed in February 2024, the council forecast funding gaps of £41.9m in 2025/26, rising to £81.5m in 2027/28. The latest forecasts show a reduction in the funding gap over the next four years, due, in part, to savings to be delivered through the council's transformation plan. However, there remains a significant gap of £31.4m for 2025/26.
In previous years, the council has asked residents for their views on a wide range of specific proposals for savings, growth and changes to services to balance the budget and deliver priorities. However, while these current uncertainties remain, the council is asking residents about what they think the council should prioritise when making its financial decisions before proposals for a full balanced budget are put forward.
This year, the council says its approach is built around:
● Resizing and reshaping the budget to protect services and support for Cheshire East residents who are most in need;
● Investing in children's services – for example recruiting to additional posts to deliver the children's services improvement plan;
● Investing in adult social care to ensure our budgets reflect the anticipated growth in demand and increasing complexity of need for those who require the most help – including ensuring that direct staffing costs are fully funded in the budget;
● Delivering transformation projects, including better management of grants, fees and charges for services, and focusing on helping people with additional needs to live more independently for longer – helping to put the council on a more sustainable financial footing for the long-term;
● Addressing unfunded pressures, such as National Living Wage increases; and
● Looking for other ways to change services to reduce costs, avoid costs, or increase income.
Councillor Dawn Clark, chair of the council's finance sub-committee, said: "By changing how we deliver services, we can better support those most in need. Work already under way through our transformation programme is reducing the forecasted budget gap in the long-term.
"However, we still have a significant financial problem forecast for the next year, due to increased costs, reduced national government funding, and higher demand for our services.
"This is a complex situation that we are managing by planning ahead and exploring every option. We will ensure that we can continue to provide essential services and support to our residents in a financially sustainable way."
Councillor Michael Gorman, deputy leader of the council, said: "We have robust plans to transform and improve services, save money and operate more efficiently for the long-term. These plans will also better serve residents and aim to balance the budget over the next four years.
"For these plans to be successful, we need to understand what people need, want and expect from their council - and we need them to understand what is achievable. We cannot continue to try to deliver everything for everybody all the time.
"This budget survey is part of a bigger conversation with our communities. We are planning community panels and other conversations involving residents from various communities, including young people, to find solutions to these challenges together. What we are doing already is having an impact but we need people to come with us on this journey.
"We want to hear from you – so please do share your thoughts."
Any specific proposals for changes to services that require consultation will be discussed separately with those affected and reviewed in committee meetings in January 2025.
The survey can be found at: https://surveys.cheshireeast.gov.uk/s/Budget_Engagement_2025_To_2029/
