Cheshire East Council Exceptional Financial Support confirmed

The Ministry of Housing, Communities and Local Government has contacted Cheshire East Council to confirm in principle Exceptional Financial Support up to £25.3m, to balance the budget shortfall for 2025/26.

This announcement comes ahead of the council’s budget setting meeting on 26th February 2025. The draft budget, as published, includes the impact of the requested EFS. 

The MHCLG announcement also confirms, in principle, that the council can use all of the previously approved EFS for years 2023/24 and 2024/25 – a total value of £17.6m – to cover the forecast funding shortfall in the 2024/25 financial year. 

The ability to access EFS will help the council deal with immediate pressures and establish longer-term financial sustainability through investment in transformation and improvement. While this reduces the immediate pressures in the short term, the support is not in the form of cash, it does bring additional costs to following years, as set out in the council’s draft medium-term financial strategy 2025 to 2029.  

This is only a short-term solution, and it will be important to continue to find additional funding, income and efficiency savings to reduce the need to use this support over the coming financial year. 

Councillors will vote on the 2025/26 budget and the four-year financial strategy at the Full Council meeting on 26th February.