Cheshire West forecasts a £10.9m overspend this year and has put a hold on most recruitment. Reserves could fall to £16.2m. Cabinet meets on 11 November.
Cheshire West and Chester Council expects to overspend by £10.9m this financial year. That is up from £9.4m at its last review in July.
The figures are in the mid-year finance report going to Cabinet on Wednesday 11 November. The report says recruitment is on hold, apart from essential statutory posts and those critical to bringing in income or delivering savings.
It also warns that the overspend “will seriously impact the Council’s financial resilience” if nothing is done.
Where the money is going
The underlying pressure is £13.3m. Mitigating actions of £2.4m bring that down to £10.9m.
| Service | Forecast against budget |
|---|---|
| Children and Families | £6.9m over |
| Adults | £2.7m over |
| Corporate Services | £1.5m over |
| Public Health | £0.7m over |
| Place and Growth | £0.2m under |
| Capital financing | £0.7m under |
| Total | £10.9m over |
Children’s services account for most of it, and that forecast has worsened by £2.4m since July. The number of children in care has barely moved: 540 at the end of September. The cost has. The average placement is now forecast at £83,000 a year, against £69,000 in the budget.
Savings are also falling short:
- £4.8m of savings due this year has slipped into future years
- £2.6m is now considered undeliverable
- £1.3m more is rated high risk, and losing it would push the overspend to £12.2m
Reserves would fall well below the safe level
The council started the year with £24.1m in its general reserve and planned to add £3m. If the overspend is not reduced, the reserve would end the year at £16.2m instead of £27.1m.
That is well below the £24.9m to £27.9m range the council has assessed as appropriate for this year’s risks. Its plan to add a further £6m over the medium term would still not be enough to get back into that range.
“It is critical that the overspend is reduced,” the report says, or a plan with “compensating savings” will be needed.
What the council is doing about it
Each directorate is writing a report on what it can do. The actions already under way are:
- a hold on recruitment, with the exceptions above
- a review of discretionary spending
- considering the impact of stopping any non-essential spending
- looking for other funding streams
- checking whether future savings can be brought forward to this year
The report also says capital schemes that have not started may be delayed. It does not name any services for cuts.
The council wants to use a £0.7m underspend on borrowing costs to help this year, instead of putting it in its long-term liability reserve. Full Council has to agree that.
The SEND deficit sits on top
A separate budget, the Dedicated Schools Grant, is forecast to overspend by £41.7m. Almost all of that is support for pupils with special educational needs. The running deficit would reach £81.7m by March.
The report estimates 1,188 more children with Education, Health and Care Plans than last year, a rise of 24.8%.
The Department for Education approved the council’s SEND reform plan last month. That makes it eligible for a grant of up to £36.01m. The deficit is kept off the main budget by a national accounting rule, but that rule ends on 31 March 2028.
What Cabinet is also being asked to approve
- £0.8m for four outdoor padel courts at Ellesmere Port Sport Village, run by Brio Leisure and paid back from future income
- £0.5m for three one-bedroom ground floor flats as temporary housing, paid for by a homelessness grant, to cut hotel use
- £1.6m for demolition at Winsford Cross, which Full Council must also agree
Some projects are also moving back. The refurbishment of the Moss Farm rugby changing facility in Northwich will now start in spring 2027.
What it means for you
The report names no service for a cut. But the council’s search for savings this year now runs alongside a much bigger one. It has already said it needs about £82m over four years.
Its “Let’s Talk Budget” consultation is open until Wednesday 2 December. The details are in our budget gap story.
The scheme that cuts council tax for low-income households would stay the same for 2027-28, apart from one change. About 60 households on contribution-based Employment and Support Allowance would get specific protection, at a cost of around £25,000.
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