William Eichler 18 July 2024

Council leader resigns after bankruptcy warning

Council leader resigns after bankruptcy warning image
Image: Cheshire East Council.

The leader of Cheshire East Council resigned yesterday ahead of a vote of no confidence after a report raised serious concerns over the council’s finances.

A Local Government Association corporate peer challenge report warned that it is ‘very likely' that the council will have to issue a Section 114 notice if it fails to bring about ‘significant change at pace’.

Council leader Sam Corcoran told the council yesterday ‘I have to take responsibility’ and added that an inadequate Ofsted report into the council’s children’s services was ‘a particular blow’.

Cllr Nick Mannion has been elected as the new leader.

In 2023-24, the council has used £11m of its reserves to set a balanced budget and has a savings requirement of £20m for 2024-2025, according to the LGA report. If the savings are delivered, the council will only have £2.1m in reserve by the end of this financial year.

The council has been successful in applying for exceptional financial support for 2024-2025, subject to the development of a transformation plan. However, the peer report notes that ‘there is further work required to understand the implications of this capitalisation.’

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