Cheshire East Council is facing a predicted overspend of £27 million by the end of the financial year because its children’s and adults’ services are failing to operate within budget, writes Belinda Ryan.
A report to the finance sub-committee revealed the adults and health committee is forecast to be overspent by £20m at the end of March next year.
Children and families is likely to be £7 million over budget if action is not taken.
Both services have been under pressure because of a rise in demand.
The finance sub-committee has recommended the corporate policy committee now scrutinises these overspends and asks the chairs of both committees to explain what is being done to tackle the problem.
Conservative group leader Janet Clowes said: “We have a duty to refer to corporate policy [committee] those items that we see as being special.
“I would rather try, if we can, to be nipping things in the bud, or at least understanding what mitigations adults and children are putting in, to meet these additional pressures sooner rather than later.
“And with that in mind, could we add a recommendation that this committee recommends to corporate [policy] that they examine children and adults as special budget areas for consideration as their performance lies outside the parameters of the MTFS (medium term financial strategy)?”
Cllr Stewart Gardiner (Knutsford, Con) agreed, saying: “These are significant overspends.
“The corporate policy committee needs to be aware of them and to be basically bringing those committees to account and seeing how they intend to resolve the problem.”
Former council leader Sam Corcoran (Sandbach, Lab), who was present as a visiting councillor, had asked at the beginning of the meeting what was being done about this £27m predicted overspend.
“I can understand overspends when inflation had suddenly leapt up to 10% and we had budgeted for less than 5%, but inflation has not increased since the budget was agreed in February,” he said.
“Are the forecasts worst case scenario, best case or most likely? That actually has a big impact on what action should be taken.”
He suggested a review of financial controls to look at extra scrutiny of payments outside budget, how variances are reported to managers and what action is taken if they are not on budget.
Interim head of finance Adele Taylor said the council as a whole ‘has to learn to live within our means’.
A strategic finance management board has been set up to look at expenditure and whether what was being spent was absolutely necessary, to look at income and grants and to examine council contracts.
Ms Taylor gave details of some measures, including how spends of over £5,000 were being questioned to ensure they were necessary, adding the council was doing everything, as would be case if an effective bankruptcy notice (S114) had been issued – which it hasn’t.
“These are things that are very similar, that if you were in a 114, we’ve kind of put in place the steps that you would do,” she said.
The finance boss added: “Any directorate that is overspending by more than five per cent, I meet with them on a weekly basis.
“So, at the moment, I’m meeting with both children’s and adults on a weekly basis, and the reason for that is to understand what actions they are taking in their services.”
Good point Barry. Why does their PR not give the reasons for the deficits eg case numbers in say 2020, 2022 and 2024. No personal information needs to be given only work loads. They always dwell on the amount.
It is evident that the present group of officers and members are having difficulties getting a grasp on the situation. There are people in our community with a Business experience, an LA background etc who would give free advice/support. This would save on expensive Consultants, who come take their fees and then go.
Perhaps those councillors could give back their expenses which totalled 1.38 million, at least it would reduce the overspend. Guess not….but single people where getting a living wage of 20K plus. Shameful. Let’s not forget the 100m shortfall over next four years. Our rates will be UP UP UP, for LESS, LESS, LESS, LESS
We need to see the details, what exactly does child and adult service cover,and which of these areas is overspending, it is only then you have a chance of sorting this mess out.
It did not help that the director of these services upt and left due to her lack of ability to do the job,with a big fat pension no doubt.