‘Realistic’ savings to tackle £5.3m shortfall

CHESHIRE East Council could be forced to introduce a number of ‘realistic’ saving measures to address a budget shortfall of £5.3 million.

The mid-year review of performance - which was discussed by the cabinet during a meeting on Tuesday, October 9 - outlines how the authority is providing ‘value for money’ services.

However, the council is forecasting an overspend of around £5.3million in 201819.

It comes against a net revenue budget of £269.5 million and after the meeting the council released a statement saying it was on track to produce a balanced budget, despite financial pressures.

The overspend is mainly due to pressures in the people directorate, as well as delays associated with achieving some of the efficiency savings.

At the meeting Councillor Paul Bates, who is responsible for finance and communication, highlighted inflationary pressures and soaring social care costs facing the authority.

He said: “Costs will be controlled through a new, number of initiatives, vacancies will be managed and we will review processes linked to the debt recovery, as well as looking at trends linked to welfare payments.”

Coun Jos Saunders, who is responsible for children and families, discussed the prospect of introducing saving measures.

She said: “Children and families is working in a very challenging environment and, like every other area, we will be looking at savings which are realistic and achievable.

“But what I would like also to pay tribute to the staff, who are working in children and families, because in this challenging environment they have achieved a lot.”

A number of service areas are reporting vacancies, therefore, extending vacancy periods will be considered where this does not have a ‘serious impact’ on staff, or on service levels to vulnerable people.

After the meting Alex Thompson, head of finance and performance said: “Increasing demand, rising costs and reduced government grant is creating significant pressures on resources.

“The council’s response focuses on increasing efficiency and productivity.”

“Demand for services is high. This is particularly linked to an increase in population but also changes in demographics, with increasing people who are living with more complex needs.”

And Coun Bates said: “Robust action is being taken to mitigate this position and return the budget to a balanced position – while still protecting general financial reserves.”