The Corporate Policy Committee of Cheshire East Council is scheduled to meet to discuss the first financial review of 2025/26, an update to the medium term financial strategy, and a new health and safety policy addressing violence and aggression towards council staff. The committee will also receive minutes from the Finance Sub Committee and General Appeals Sub Committee, and will review its work programme. It is important to remember that this is a summary of what is scheduled to be discussed, and we do not know for certain whether these topics will be discussed, or whether any decisions will actually be made.

First Financial Review 2025/26

The committee is scheduled to consider the first financial review of the 2025/26 financial year. The report pack states that the review forecasts a £3.1m adverse variance, even after using £25.3m of Exceptional Financial Support¹.

The First Financial Review (FR1) forecast revenue outturn is an adverse variance of £3.1m (after the application of planned use of conditional Exceptional Financial Support £25.3m as set out in the approved budget in February 2025). First Financial Review 25/26 Decision Report Template delete as appropriate The report pack includes optimistic and pessimistic alternative scenarios, with potential overspends ranging from £0.3m to £18.7m.

The report pack states that the key areas causing an overspend are a projected £9.0m overspend in Children and Families, and a £9.7m shortfall against in-year cross-directorate transformation savings. The report pack also states that these pressures are offset by a £4.7m favourable variance within the Place Directorate, and a £7.2m contribution from the contingency budget.

The report pack states that the committee will scrutinise the contents of Annex 1: Detailed First Financial Review 2025/26, and review progress on the delivery of the Medium Term Financial Strategy approved budget policy change items.

The report pack states that the committee will review the in-year forecast capital spending of £205.5m against an increased capital budget of £208.5m, and will be asked to approve Supplementary Capital Estimate Requests for Allocation of Additional Grant Funding over £500,000 and up to £1,000,000 as per Table 4 in Annex 1, Section 4. The committee will also be asked to recommend to Council to approve the Supplementary Capital Estimate Request for Allocation of Additional Grant Funding over £1,000,000 as per Table 5 in Annex 1, Section 4.

The report pack states that the committee will note the available reserves position as per Annex 1, Section 5.

Medium Term Financial Planning Assumptions Update 2025/26 - 2028/29

The committee is scheduled to receive an update on the Medium Term Financial Strategy (MTFS) development. The report pack states that the budget could only be balanced for the 2025/26 financial year by use of Exceptional Financial Support, and that the gaps forecast in later years must be addressed urgently. The report pack states that the budget gap, without mitigations, is currently £33.3m on the General Fund Revenue budget for 2026/27.

The report pack states that the committee will note the updated budget assumptions for the period 2026/27 to 2029/30 including sensitivity analysis, and the Finance Sub-Committee's recommendation that it work with officers and members to bring forward further budget change proposals to assist with presenting a balanced budget for 2026/27 to the Corporate Policy Committee for consultation in November 2025.

The report pack states that the committee will delegate to the S151 Officer² the permission to continue dialogue with MHCLG³ on the continued use of Exceptional Financial Support over the life of this MTFS (2029/30), and will approve the approach to consultation and engagement.

The report pack states that the committee will note that the estimated increase in the net funding envelope is £16.9m but this is tempered by a reduction in ringfenced grants for Adult Social Care of c.£6.3m resulting in a net betterment of £10.6m for 2026/27 compared to 2025/26 funding envelope levels (excluding council tax increases).

Violence and Aggression - Health and Safety Policy

The committee is scheduled to consider the draft Violence and Aggression - Health and Safety Policy. The report pack states that the policy complements other existing Health and Safety and HR policies and provides a framework for the recognition of, response to and management of aggression and violence so that employees have better knowledge of how to deal with potential scenarios, or to respond to situations when they arise. The report pack states that the council takes a zero-tolerance approach towards violent or aggressive behaviour directed towards staff. The report pack includes data on the number of incidents towards staff from members of the public, recorded from 2022/23 onwards.

The report pack states that the committee will approve the adoption of the Violence and Aggression Health and Safety Policy.

Minutes of Sub-Committees

The committee will receive the minutes of the Finance Sub Committee (2 June 2025) and General Appeals Sub Committee (16 September 2025).

Work Programme

The committee will consider the Work Programme and determine any required amendments.