Council granted extra support for second year

Cheshire East Council has been granted exceptional financial support from the government for the second year in a row.

The authority has been given permission for support of £25.3m for the next financial year.

It was also given permission for £17.6m of exceptional financial support for the current financial year, but it said in recent months it had not yet drawn down on it.

The Labour leader of the council, Nick Mannion, said the extra support would "help the council on its journey to financial stability."

Cheshire East Council is one of 30 councils to be offered exceptional financial support, up from 19 last year.

This can allow councils financial flexibility through a system known as capitalisation, which can allow them to borrow money or treat some of their day-to-day spending, known as revenue costs, as longer term capital costs.

In previous years, councils have been allowed to sell off community and heritage assets as part of exceptional financial support but authorities have been told not to do this this time around.

In December, the authority signed off plans to ask the government for £31.4m for 2025-26 and £23.7m for the year after.

At the time, some of the opposition leaders raised concerns.

Conservative group leader Janet Clowes said she thought of the support as "a mortgage, because they will be hanging over the head of this council for many decades to come".

In its most recent financial forecasts in January, the authority said it had a financial gap of £18.3m this year and it may need to use the exceptional financial support.

Mannion said there was "no doubt" the council remained in a "very difficult financial situation".

"The council has already begun its three-year transformation plan which will result in future cost savings – but these savings can take time to materialise.

"The extra financial support will stabilise the council's finances whilst it continues to embed different delivery models and initiates 'invest to save' projects.

"We know that the council must change the way it delivers services, and difficult decisions will continue in order to balance the book."

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