Council forecasts £26m overspend despite cuts

Cheshire East Council has made a number of cost-saving measures in recent years, including plans to close its Sandbach headquarters

Increasingly complex care cases, high inflation and rising staff costs have all been cited as reasons why a council is likely to record an overspend of more than £26m this financial year.

In a report prepared for councillors, Cheshire East Council (CEC) said it was facing worsening financial pressures.

With a £20.7m forecast overspend, adult social care and health services are responsible for three quarters of the expected shortfall.

The local authority's budget for 2024-2025, agreed earlier this year, included the use of reserves and making £30m of savings.

Adult social care spending is set to be more than £20m higher than expected

CEC said price increase, staff costs, an increase in more complex cases and an “unusual increase” in the number of people who had previously funded their own care asking for local authority support were the main reasons for the overspend.

The report, which will be discussed by councillors later, said it was clear "further actions need to be identified to bring the council back to a position where we are living within our means".

An accompanying document assesses progress made against savings targets in different areas.

A number of cost-cutting measures signed off in this year's budget - including the closure of three household waste recycling centres - have not saved as much money as had been expected.

The tips - in Bollington, Middlewich and Poynton - were temporarily closed ahead of a decision last week to permanently keep them shut.

The full anticipated cost savings will not be achieved this year because of the introduction of a mobile system and the trial of a booking system.